Voters rejected a measure Tuesday to replace the Costa-Hawkins Rental Housing Act, 59.3% to 40.7%.
Prior to the enactment of Costa-Hawkins in 1995, local governments were permitted to enact rent control, as long landlords were able to receive fair returns on their rental properties.
Proposition 21 would have allowed local governments to adopt rent control on housing units, except those that were first occupied within the last 15 years and those that are owned by persons who own no more than two housing units with separate titles.
These units include single-family homes, condos and some duplexes. They also include subdivided interests, such as stock cooperatives and community apartment projects.