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Possible state law changes may affect new construction

From the snow-capped mountains in Shasta County to the golden beaches stretching south of Los Angeles, California has an undeniable allure that no other state can claim. Although the state is one of the largest in the country, many sections of it are suffering a housing crisis that is acute enough to make lawmakers in Sacramento and citizens everywhere reconsider housing laws.

A current debate is over whether to end the Costa Hawkins Rental Housing Act, which prevents cities from allowing rent controls on housing built after the law became valid in 1995. Berkeley is slated as the first to react to possible changes, allowing rent controls on housing after 20 years past its first residence certificate.

The election will affect most municipalities’ approaches to housing, as older developments may hold less value for developers and landlords. This may lead to a further fueling of California’s red-hot construction industry, as owners and managers of new housing will be able to proceed with unrestricted rental fees more in comparison to older units.

The Great Recession beginning in 2008 took a toll on experts’ ability to predict housing market changes. Other changes to state laws that affect the construction sector may require reactions from the industry.

Construction companies, contractors and supervisors may find that legal representation adds security and takes unnecessary risk out of construction operations. An attorney will be up to date on relevant California state and municipal laws that affect construction projects and be empowered to work with local governments and any challenges to a successful project.