Update 9:54 pm: The CEO of the California Apartment Association, Tom Bannon, released a statement about the defeat of Prop 10:

“The stunning margin of victory shows California voters clearly understood the negative impacts Prop. 10 would have on the availability of affordable and middle-class housing in our state. Our broad coalition of veterans, labor, affordable housing leaders, seniors, property owners and state and local officials also know that we need real solutions to address our state’s housing crisis, which is why Californians for Responsible Housing took a lead role in helping pass Prop. 1, the Veterans and Affordable Housing Act. Anti-housing activist and Prop. 10’s financier, Michael Weinstein and the AIDS Healthcare Foundation, now have spent more than $80 million across the nation on losing ballot initiatives. Not one dime of this political spending was used to help solve the housing crisis. We look forward to working with Governor–elect Gavin Newsom to address California’s housing affordability crisis by focusing on incentivizing housing production.”

SACRAMENTO (CBS13/AP) – Proposition 10, the ballot measure that would let cities and counties across California expand or enact rent control by overturning the Costa-Hawkins Rental Housing Act, has failed, the AP is projecting. As of 9:45 pm, Proposition 10 was losing by a 30-point margin with more than 3.6 million votes counted.

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See The Latest Results In The Prop. 10 Race

Californians who rent apartments built after 1995, single-family homes or condominiums have limited protections from rising prices under a state law passed that year that significantly restricts rent control.

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The measure was one of the highest-profile and most expensive issues on the ballot as California faces a massive housing shortage.

More than a dozen California cities already have some rent control on older properties, including Los Angeles and San Francisco. Proposition 10 gives local governments more flexibility to implement or expand rent control rules while guaranteeing landlords the right to a fair rate of return on their investment. Rent control policies range from curbing how much landlords can raise rents each year to limiting what they can charge new renters.

Opponents argue Proposition 10 would have decreased housing supply by reducing developers’ incentive to build. Supporters say allowing more rent control would protect people from being priced out of their homes.

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The AIDS Healthcare Foundation funded the pro-Proposition 10 effort. The real estate industry funded the opposition campaign.