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The way it is now:

•    State and local governments can take private property for public uses, such as roads, schools or parks, as long as the owner is paid a fair price. This is called “eminent domain.” •    Some California cities and counties have “rent control” laws that limit increases in rent for apartments or mobile home spaces. •    When a property owner takes government to court to stop their land from being taken, the court is supposed to give a lot of weight to the government’s point of view.

What Prop 98 would do if it passes:

•    Governments could no longer take private property such as homes, farms or businesses and turn that property over to a private person or organization for any purpose. Governments could only force the sale of private property if it will be owned and used by government to benefit the public or to protect public safety. •    Rent control laws could no longer be passed.  Renters who live in places with rent control now would get to keep it until they move.  •    If a property owner takes government to court to stop their property from being taken, the court would not have to give special weight to the government’s point of view.

Fiscal effect on government:

Many local governments would have some higher costs under Prop 98, but the net fiscal effect statewide probably would not be major.

People for 98 say: •    Prop 98 will stop private property from being taken so that developers can make money and government can get more in taxes from that property.    •    Government should not be able to tell property owners how much they can charge for rent. www.YesProp98.com

People against 98 say: •    We have a housing crisis in California and Prop 98 takes away rent control laws that can help. •    Prop 98 is not really about reforming eminent domain as much as it is about letting landlords charge more for rent in apartments and mobile home spaces.   www.NoProp98.org

Links to more information on Prop. 98:

Official explanation from Legislative Analyst's Office