Rent control has come to California

Los Angeles /
Sep.September 12, 2019 11:00 AM
Gavin Newsom and Assemblyman David Chiu
Gov. Gavin Newsom and Assemblyman David Chiu

Nearly a year after voters rejected a statewide referendum that would have opened the door to expanded rent control, California lawmakers have kicked down that door.

The Assembly approved a landmark bill on Wednesday that will cap yearly rent increases and expand protections for millions of tenants, a major step aimed at addressing the state’s deepening affordable housing crisis. Gov. Gavin Newsom is expected to sign the legislation, known as Assembly Bill 1482.

Under the bill, landlords will be limited to annual rent increases of up to 5 percent plus inflation, an amount that some property owners say will make it difficult to turn a profit and discourage future investment. Owners will also be barred from evicting tenants unless they can prove “just cause,” such as failing to pay rent, according to the Los Angeles Times.

More than 2 million more apartments in the state would be subject to rent control as a result of AB 1482, although it exempts buildings constructed within the last 15 years, along with single-family homes.

The measure passed 46-22 in the Assembly, after already having passed in the Senate. Newsom called AB 1482 “the strongest package in America” aimed at protecting tenants. California is now the third state to pass statewide rent control laws, following Oregon and New York, which passed its own historic rent law in June.

The California bill comes less than a year after voters soundly defeated Proposition 10, which would have allowed cities and counties to expand rent control laws as they wanted. They are now bound by a legislation that limits rent control to buildings built in 1995 or before.

Critics of AB 1482 — and Prop 10 — have argued that expanding rent control and tenant protection measures will thwart development, which California desperately needs. Proponents say it is a necessary step at curbing the region’s rising homeless population, especially in cities like San Francisco and Los Angeles County, which now a reported 59,000 people living on the streets. [LAT]Natalie Hoberman


Related Articles

arrow_forward_ios
(iStock)

And the winner is … real estate: Cali’s industry cleaned up on Election Day

And the winner is … real estate: Cali’s industry cleaned up on Election Day
Michael Schall of Essex Property Trust and Michael Weinstein of AIDS Healthcare Foundation

“Don’t let the zombies eat your brain.” Prop 21 opponents spend nearly $100M to campaign against rent measure

“Don’t let the zombies eat your brain.” Prop 21 opponents spend nearly $100M to campaign against rent measure
At left, AIDS Healthcare Foundation’s Michael Weinstein, who pushed to get Proposition 21 on the Nov. 3 ballot; and Daniel Yukelson of the Apartment Association of Greater Los Angeles, which opposes the measure. (Getty; Unsplash)

Everything you need to know about Prop 21 Rent Affordability Act

Everything you need to know about Prop 21 Rent Affordability Act
Stephen Schwarzman, Gavin Newsom, and Michael Weinstein (Credit: Roy Rochlin/Getty Images, Justin Sullivan/Getty Images, and Tommaso Boddi/Getty Images)

The fine print: Three California ballot measures that would rock real estate

The fine print: Three California ballot measures that would rock real estate
Michael Weinstein (Credit: Charley Gallay/Getty Images)

How 3 ballot measures in November could forever change California real estate

How 3 ballot measures in November could forever change California real estate
Gov. Newsom and Michael Weinstein (Credit: Justin Sullivan/Getty Images, Charley Gallay/Getty Images)

“We anticipate a tsunami of evictions”: Tenant advocates call on Newsom to tighten rent laws

“We anticipate a tsunami of evictions”: Tenant advocates call on Newsom to tighten rent laws
Garcetti bans residential rent increases on rent-controlled units in LA
(Credit:iStockphoto)

Garcetti bans rent hikes for rent-stabilized units

Garcetti bans rent hikes for rent-stabilized units
LA city council members want to close “loophole” in rent control law

LA measure would make it tougher for landlords to force out tenants for renovations

LA measure would make it tougher for landlords to force out tenants for renovations
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...