CAA, allies derail AB 1506, the bill to repeal Costa-Hawkins

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The California Apartment Association and its allies today derailed AB 1506, a bill to repeal the Costa-Hawkins Rental Housing Act and bring radical rent control back to California.

This morning, following lead testimony from the California Apartment Association, FPI Management and the California Association of REALTORS, AB 1506 failed passage in the Assembly Housing and Community Development Committee, all but closing the door on the bill for the balance of the legislative session.

Over 400 rental property owners came to the microphone and indicated their opposition to the measure, outnumbering the tenant advocates, who totaled nearly 300.

Following hours of testimony, AB 1506 lacked the needed votes to be passed out of the committee. The failure of the committee to vote the bill out today likely stops the bill from advancing to the Senate by the Jan. 30 legislative deadline.

Stopping AB 1506 — and protecting Costa-Hawkins — was a top priority for CAA. For more than 20 years, the Costa-Hawkins Act has prohibited local governments from applying rent control to units built after 1995, as well as single-family homes, individually owned condominiums and townhouses. Costa-Hawkins also requires all rent control ordinances to allow a rental property owner to set the rent at market rate once a tenant moves out and a new tenant moves in, a policy known as vacancy decontrol.

CAA has argued that repealing Costa-Hawkins would discourage investment in the existing rental housing stock and create a significant disincentive for the construction of new rental housing, worsening the state’s ongoing housing crisis.

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  • Congratulations on the hard work and attendance of the landlords.
    Rent control fails both landlords and tenants.

  • I am so happy to see this! I informed every owner of rental real estate that I know and encouraged them to contact their representatives. Thank you California Apartment Assn for keeping us apprised of all the bills that would affect our ability to provide a viable home product for the renters of California!

  • […] Thankfully AB1506 died last week in Committee, thanks to the caution employed by many of our more moderate legislators, and supporters from the California Apartment Association, who showed up en mass to protest the bill. Supporters have now indicated that they will instead try to put a ballot initiative to repeal Costa-Hawkins before voters in November, a move that will be much more expensive to fight. […]