SACRAMENTO – Governor Gavin Newsom, Senate President pro Tempore Toni Atkins, Assembly Speaker Anthony Rendon and Assemblymember David Chiu Friday announced a deal had been made on a bill that would place rent caps on rental housing.
“The high cost of housing and rising rents are preventing California families from getting ahead. These steep housing costs drive inequality and threaten to erode California’s economic growth. That’s why we are pleased to announce we have come to an agreement on a series of amendments to AB 1482 that would create strong renter protections. The bill will protect millions of renters from rent-gouging and evictions and build on the Legislature’s work this year to address our broader housing crisis.”
Although Assembly Bill 1482 still needs State Legislator approval, it would place a 5% statewide rent increase cap (including inflation) per year for the next 10-years while also provides eviction protection.
The deal, which needs the approval of the Legislature in the next two weeks, would cap rent increases statewide at 5% plus inflation per year for the next decade, according to Newsom’s office. The legislation, Assembly Bill 1482, would also include a provision to prevent some evictions without landlords first providing a reason.
Under Friday’s deal:
- Rent increases are capped at 5% plus inflation
- Apartments build in previous 15-years are exempted
- Just cause protections after 12-months of tenancy
The California Association of REALTORS on Friday issues the following statement:
“The CALIFORNIA ASSOCIATION OF REALTORS supports policies that increases the housing supply for rent and ownership. The proposed version of AB 1482 headed to the Senate floor that will not incentivize production of rental housing or help more people find an affordable place to live. It discourages new rental housing, which is why C.A.R., representing more than 200,000 real estate agents and brokers across California, strongly opposes it.
C.A.R. has been working with the bills proponents for several months with a common purpose—to achieve a balance promoting tenant protections and private property ownership. California tenants and property owners deserve nothing less. Because our consensus language was not included, we will be opposing AB 1482.
In 2018, voters in 56 of California’s 58 counties rejected a statewide ballot measure that would have dramatically expanded rent control without respecting property rights. The voters message was clear: they want a balanced solution, and REALTORS agree.
C.A.R. respectfully urges lawmakers to vote “no” on AB 1482 because it will not help address California’s unprecedented housing supply and affordability crisis.”
13 comments
Once again the government “f”ing with market forces… sure to have unintended consequences.
My parents once said, “if you can’t afford it, you can’t have it.”
But what did anyone know 35 years ago, I mean we are so much better off these days….
If you cannot afford to reside somewhere, MOVE ALONG!!!
Sad Sad State! I was reading how some people work three jobs to try to cover their living expenses here and just barely do so. They have no time for anything else and this s totally crazy! This indicates that they are way over their heads and even with increases in minimum wage, everything else rises in price and they are back to square one! The increases do not make it a “living” wage at all … it just puts many retired people, who are on fixed incomes, suffer. Our idiot lawmakers didn’t think of that. So, there is no winner here. No “living” wage and a burden to those on fixed incomes.
The housing problems started when the tech industry started to operate here instead of having it spread out among other states so that workers could stay in their own states and not have to move out here. Them being here and their high earnings screwed up the housing market royally.
Today, many Californians (native or otherwise) are leaving the state for a number of reasons: (1) change in climate, (2) changing demographics, (3) insane traffic, (4) high crime, (5) high cost of living (food, etc.) and (6) housing.
Many of my friends left for states with more rainfall because of their fear of wild fires and high temperatures here.
Your observations on the impact of tech industry employment are valid, but I’d argue that rent controls are not the answer. In the long term, they’ll make a bad situation worse.
If this means that more people will be leaving California . . especially those who really cannot afford living here ……. then I’m for it. We have way too many people in this state. The concentration is what’s making it bad. This causes horrendous traffic problems and crime. Houses should be priced so that people can afford to buy them. I see realtors talk the potential sellers into commanding prices way over the asking price and that’s insane! I watched a few of them going on TV and bragging how “we can get my more for your house!” Also, foreigners are coming here from countries like CHINA …with cash .. and buying up properties. I don’t think foreigners should be allowed to do that. They screw up the system for the natives.
Between AMAZON ruining the retail industry and unscrupulous real estate agents intentionally pumping up housing prices (they want an even higher commission) … no wonder we have such a serious HOMELESS problem. I never hire a real estate agent to sell my houses or engage them in buying new ones. I dictate the price and I pick the buyer…. and it’s not someone throwing big money in my face.
I agree with you 100%.
Your comments are totally unrelated to the subject of this article – which is proposed rent controls.
Wrong, Robert Brown! The entire housing situation here rests on not just rent control. You need to look at the whole picture! There should be no such thing. People who cannot afford to live here should be looking for parts of the country where they can do so without any “controls.” Part of the reason for “rent control” is because many people are FORCED into it due the price of purchasing A HOUSE (not a “HOME” as you real estate people say while you massacre the English language) is now beyond their means. And what caused that? (1) Too many people moving into this area and cause all sorts of havoc from mayor traffic problems to high crime, (2) real estate agents pushing sellers to demand higher and higher prices .. .. resulting in some nice, fat commissions for your group. The bottom line is just chaotic with people having to live on streets. . . . thanks to pure, unadulterated GREED!
“The road to hell is paved with good intentions” – as the saying goes. When government intervenes in marketplaces, bad things happen. This “sugar high” sounds very good to the political base of “progressive” California politicians, but the long term consequences will be to encourage rental property owners to withdraw their properties from the rental market and will also discourage construction of new rental housing.
Robert Brown – Houses should be priced in such a way that one doesn’t have to rent but can buy their own structure. The “down payment” system is an antiquated one. What law dictates that one has to come up with a “down” payment if one is eligible for a loan if one is needed? There are people who purchase their houses for cash.
I work in the tech industry and one of the problem impacting California’s so-called housing “crisis” is that the industry has not been dispersed throughout the states. The employees can communicate via the technology they have created so the industry doesn’t have to be concentrated in one area. This industry has THE worst affect on the price of housing. Many of my fellow employees miss their family members and relatives and would rather their individual states had set up tech facilities there. Also, they are blamed for causing the housing problems here and there have been many close-encounters of the unpleasant kind between them and native Californians. The foreign workers imported here are also resented and squabbles have arisen.
Rents are going up and up because it’s a “supply and demand” situation. If there was not that much “demand,” then we wouldn’t have these problems. We cannot just keep building indiscriminately and causing even higher densities of population coexisting. We’re already squeezed to-the-max.
It’s crazy that everything is blamed on cost of rent. What about the constant tax increases they keep piling on us? Perhaps if the state learned to live within their budget and quit taxing us for absolutely everything, it may be a bit more affordable to people to live here.
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