Santa Barbara City Council to Discuss Rent Stabilization Policy

Landlords file lawsuit challenging temporary rent freeze as city weighs options

Apr. 8, 2026 at 2:03am

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A serene, cinematic painting of a deserted Santa Barbara street at dusk, with warm sunlight casting long shadows across the pavement and buildings. The scene conveys a sense of quiet contemplation, reflecting the complex issues at the heart of the city's rent stabilization discussions.The debate over rent stabilization in Santa Barbara reflects the city's struggle to address housing affordability while navigating legal challenges from property owners.Santa Barbara Today

The Santa Barbara City Council held a public meeting to discuss the potential development of a rent stabilization program, one day after local landlords filed a lawsuit challenging a temporary rent freeze. City staff presented over a dozen policy options, and the council is considering putting a plan on a future ballot.

Why it matters

Rent affordability is a major issue in Santa Barbara, with concerns from both landlords and tenants. The city is exploring rent stabilization policies to address rising housing costs, but faces legal challenges from property owners who argue the measures are unconstitutional.

The details

During the public meeting, attorney Barry Cappello, representing the landlords, suggested the city listen to its attorney and hire another to avoid more lawsuits. He said the temporary rent freeze is unconstitutional without an exception mechanism. Other speakers pleaded with the city to address affordability, while a 'mom and pop' landlord warned that blanket ordinances can have unintended consequences. The city is considering options like a rental registry that would create incentives for landlords to keep rents stable.

  • The city council meeting took place on Tuesday, April 7, 2026.
  • The landlords filed the lawsuit challenging the temporary rent freeze one day prior to the council meeting.

The players

Barry Cappello

An attorney representing Santa Barbara property owners who filed a lawsuit challenging the city's temporary rent freeze.

Nick Gonzales

A 'mom and pop' landlord who warned that blanket rent stabilization policies can have unintended consequences.

Rick Morse

A tenant who believes the city and landlords can find a middle ground, such as a rental registry that creates incentives for landlords to keep rents stable.

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What they’re saying

“Lets focus where we need to focus and that is in the lower and moderate income households and not give a policy that may give people with very high incomes a subsidy from someone with a very low income because that is the reality with a lot of the mom and pops.”

— Nick Gonzales, Mom & Pop Landlord

“I would like to see the city of Santa Barbara establish a registry that would create incentives for landlords to create long term tenancies, so they won't raise the rent or raise it at a nominal rate and be compensated in some way.”

— Rick Morse, Tenant

What’s next

The Santa Barbara City Council will decide whether to put a rent stabilization plan on a future ballot for voters to consider.

The takeaway

The debate over rent stabilization in Santa Barbara highlights the complex challenges of addressing housing affordability, with concerns from both landlords and tenants. The city is exploring policy options that could strike a balance, but faces legal hurdles from property owners who argue the measures are unconstitutional.