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Santa Barbara Rental Property Association plans lawsuit over rent freeze

Property owners say city’s temporary moratorium is illegal and threatens housing market
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The Santa Barbara Rental Property Association plans to sue the City Council, calling the city’s temporary rent freeze ordinance illegal and unconstitutional.

On Jan. 13, the council voted to enact a Temporary Rent Increase Moratorium Ordinance aimed at addressing housing affordability. The measure temporarily prevents most rent increases and is set to remain in effect through Dec. 31.

But the decision is facing pushback.

Barry Cappello, an attorney with Cappello & Noël LLP, said the ordinance oversteps the council’s authority.

“This is illegal, what they did. This freeze is not an emergency measure, and it’s never been done anywhere before,” he said.

On Tuesday night, on the steps of Santa Barbara City Hall, Cappello and property managers announced plans to take legal action. They argue the rent freeze violates property owners’ constitutional rights and could make it harder to meet the community’s housing needs.

Nick Gonzales, a property manager, said many small landlords provide housing for residents who might not qualify for larger complexes.

“Primarily, there are undocumented residents within the community, and many small landlords are often the only resource for people who need housing,” he said.

Some in the community support the council’s decision.

Juan Vega, a local business owner, said rising costs make it difficult for workers to live in Santa Barbara.

“There are a lot of people who commute here like myself. I’ll talk to people who say, ‘I wish I could live here, but it’s too expensive.’ In a way, I feel like it could be good. Prices just keep going up, and it makes it harder and harder to live here,” Vega said.

The lawsuit has not yet been filed, but attorneys say they plan to move forward in the coming weeks. City officials did not comment because no official lawsuit has been filed.