A proposal that would have dramatically lowered California’s statewide cap on rent increases — and disincentized continued investment in rental housing, including new development — met its demise Tuesday in the Senate Judiciary Committee.

As originally drafted, SB 567 by Sen. María Elena Durazo, D-Los Angeles, sought to rewrite California’s Tenant Protection Act of 2019, passed as AB 1482.

Sen. Maria Elena Durazo

Durazo’s legislation initially aimed to reduce the statewide cap on rent increases to the change in the Consumer Price Index (CPI) or 5%, whichever is lower, similar to rent caps in California’s strict rent control cities. Currently, the cap is set at a more moderate 5% plus the change in CPI, with a maximum cap of 10%.

This resource contains member-only content

CAA members have access to compliance forms, educational tools, and extended news resources related to this topic.