Santa Barbara City Council Advances Rent Stabilization Ordinance

The Santa Barbara City Council is advancing a rent stabilization ordinance designed to limit annual rent increases to 3% or 60% of the Consumer Price Index, whichever is lower. Following a series of meetings and a public hearing involving over 650 community comments, the council directed staff to narrow exemptions and expand protections for tenants displaced by major renovations. The measure also establishes a citywide rental registry to identify properties and owners for the implementation of tenant protections.

While government-owned housing remains exempt, the council postponed decisions on exemptions for Section 8 voucher units and privately owned deed-restricted affordable housing pending further analysis. The proposed ordinance allows landlords to reset rents to market rates after a tenant moves out, but new construction is exempt from the caps. City staff aim to have the policy in place by January 1, 2027.

The proposal has created significant tension. Tenant advocates and some council members argue the measure is essential to prevent price gouging and displacement in a high-cost market. Conversely, property owners contend that the caps are too low to cover rising insurance, utilities, and maintenance costs, with some landlords filing a lawsuit against the city. Mayor Randy Rowse defended city staff against public criticism during the proceedings despite his own opposition to the ordinance. A final vote on the revised draft is expected in August.