State bill aims to further cap rent hikes to prevent homelessness

A Sacramento lawmaker and former Los Angeles union boss seeks to further limit rent increases to help prevent tenants from becoming homeless.

State Sen. María Elena Durazo, D-Los Angeles, announced a measure that would strengthen a 2019 bill capping rent hikes at 10 percent and preventing landlords from evicting tenants with no legal reason, the Sacramento Bee reported.

Durazo, former head of the Los Angeles County Federation of Labor, kicked off a campaign for Senate Bill 567, known as the Homelessness Prevention Act, which aims to further protect tenants from unjust evictions and excessive rent hikes.

She said during a Los Angeles news conference that her bill would “limit the rent increases and make them reasonable and humane” and would “close the loopholes for landlords to evict people” in addition to adding enforcement mechanisms.

The bill, which hasn’t been formally introduced, would also extend protections to tenants who are renting mobile homes or single-family homes.

“We need to prevent homelessness, prevent people from being kicked out on the streets,” Durazo said. “That’s our goal with SB 567. This is an urgent humanitarian crisis in our communities.” 

Her measure would add to Assembly Bill 1482, which former Assemblyman David Chiu, D-San Francisco, authored four years ago. Chiu’s measure capped rent increases at 5 percent plus an inflation rate set by the Consumer Price Index, with a maximum of 10 percent.

It also laid out an eviction framework that calls for landlords to provide reasons for evicting tenants. Renters can be evicted for “at fault” reasons, such as lease violations, or “no fault” causes, according to the Bee.

Legally allowable “no fault” evictions include those caused by significant renovations, removing units from the rental market or landlords moving themselves or family members into their housing. 

Gov. Gavin Newsom backed Chiu’s bill, which tenant advocates championed but real estate interests opposed. 

Durazo’s measure would change existing law by capping rent increases at the amount set by the CPI, according to a bill summary. It would also lower the maximum threshold from 10 percent to 5 percent.

Her bill would require landlords to allow tenants to return after significant renovations and would prompt them to disclose the type of repairs being made. Tenants could not be evicted unless the renovations would take at least 60 days and would be necessary for health and safety reasons.

A landlord evicting a tenant to occupy the unit or to rent the housing to a relative must facilitate the move-in within three months. The landlord or relative also must live in the unit for at least three years to prevent the unit from being put back on the market at a higher price. 

Durazo’s bill would also expand existing protections to include tenants in single-family homes and condos, as well as mobile home owners, all of whom are currently excluded.

Supporters of SB 567 cite a 2020 study by the U.S. Government Accountability Office which found that a median rent increase of $100 resulted in a 9 percent increase in homelessness nationwide, according to the Los Angeles Daily News. California has more than 160,000 homeless residents.

Proponents of Durazo’s bill say SB 567 would close loopholes to prevent no-fault evictions, expand the pool of renters with tenant protections, limit annual rent increases, and allow for accountability and enforcement.

Joseph Tomás McKellar, executive director of PICO California, a sponsor of the bill, said one family is evicted every minute in California. In L.A. County, one person is evicted every nine minutes, he said, adding that most of them are people of color and immigrants.

— Dana Bartholomew