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.”