Proposition 98 sought protections for businesses and farms and a phasing out of rent control in the state.
California voters did approve Proposition 99, which calls for comparatively weaker limitations on eminent domain.
With 100 percent of the precincts reporting, 62 percent voted for Prop 99 and 38 percent against.
Prop 99 limits when the government can force Californians to sell their homes for private development projects like shopping malls, hotels and housing. Unlike Prop 98, Prop 99 did not address rent control.