A coalition of housing industry organizations, led by the California Apartment Association, is opposing new legislation that would impose permanent statewide rent control and expand eviction restrictions to nearly all types of rental housing in California.
The proposal, AB 1157, introduced March 28 by Assemblyman Ash Kalra, D-San Jose, seeks to amend the state’s Tenant Protection Act, originally enacted as AB 1482. The bill would reduce the state’s rent cap from 5% plus inflation, or 10%, whichever is lower, to 2% plus inflation, or 5%, whichever is lower.
It would also eliminate a critical exemption for single-family homes and condominiums from statewide rent caps and just-cause eviction requirements. Under current law, these properties, if “alienable separate” from other units, are exempt from statewide rent control and just-cause eviction protections. AB 1157 would remove that exemption, making nearly all residential properties subject to strict rent control and eviction regulations.
The bill further proposes making the statewide rent and eviction controls permanent. These provisions, adopted in 2019, are currently scheduled to sunset on Jan. 1, 2030.
While tenant groups have pushed for tighter restrictions, CAA and other organizations argue that the measure would discourage investment in rental housing and make the state’s housing crisis worse.
In an opposition letter dated April 1, the coalition warned that AB 1157 could significantly harm California’s rental housing market. They pointed out that nearly 40% of the state’s rental housing stock consists of single-family homes, individually owned condominiums, and duplexes. Imposing rent control on these properties, the letter says, could push many owners to sell or withdraw their units from the rental market, further reducing the supply of available housing.
The letter also argues that AB 1157 disregards the will of California voters, who have rejected rent control measures at the ballot box—including Propositions 10, 21, and 33—by wide margins.
Additionally, the group noted that the bill lacks any income targeting, potentially providing rent breaks to high-income tenants, and fails to address the underlying issue of housing scarcity. The letter cites research from Stanford University and the California Legislative Analyst’s Office showing that rent control reduces housing availability, discourages new construction, and worsens affordability over time.
“Policies like AB 1157 that penalize property owners while ignoring the core issue of housing scarcity will only worsen our problems. This fact has been demonstrated by decades of research and supported by the voters over and over again,” the coalition stated in its opposition letter.
AB 1157 also authorizes tenants to seek damages if landlords violate rent caps and empowers the state attorney general, city attorneys, and county counsels to enforce compliance, increasing legal risks for housing providers.
CAA continues to advocate against legislation like AB 1157 that would undermine the rental housing industry and exacerbate California’s housing shortage.
