SerpApi.Org
A federal judge has dismissed a lawsuit challenging Santa Barbara's temporary rent freeze, giving the city an early win in a closely watched housing dispute.
However, the legal fight may not be over yet, as the landlord group behind the case is still considering its next step.
What happened?
Property owners who sued over Santa Barbara's temporary rent freeze lost their case this week when U.S. District Judge Sherilyn Peace Garnett dismissed the complaint, which had argued the policy was unconstitutional and violated due process.
As Noozhawk reported, Garnett also removed the Santa Barbara City Council from the list of defendants, leaving the City of Santa Barbara as the only remaining defendant in the case.
Filed in April, the suit from the Santa Barbara Rental Property Association (and four property owners) targeted the city's rent stabilization ordinance. The measure began at the end of February and keeps base rent unchanged for covered units while blocking increases through the end of the year.
Several categories of housing are excluded from the rule, including units built after 1995, single-family residences, most condominium units, transient occupancies, institutional or government housing, and homes already subject to affordability covenants or the Section 8 Housing Choice Voucher Program, per Noozhawk.
According to the outlet, the Santa Barbara Rental Property Association, represented by former city attorney Barry Cappello, is now considering filing an amended complaint in early August with additional detail to support its claims.
Why does it matter?
The case reflects a broader affordability debate playing out in expensive housing markets across California.
The original complaint alleged that some landlords said they had to delay repairs because they could not raise rents.
But as rents climb and tenant displacement remains a concern, more cities are looking for ways to keep residents housed, while property owners continue to challenge how far those protections can go and attempt to keep their rentals lucrative.
City officials continue to defend the ordinance as part of Santa Barbara's response to housing affordability pressures and tenant displacement, and the rent freeze remains in effect for now.
This week's ruling did not fully settle the broader constitutional dispute. The outcome of cases like this could shape how other cities approach rent protections.
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