While the outcome came as no surprise given the makeup of the Assembly Housing Committee, a bill proposing stricter statewide rent caps and broader eviction restrictions cleared its first legislative hurdle, despite strong opposition from property owners and the California Apartment Association.
On Thursday, April 24, the committee voted 7-5 to advance AB 1157 by Assemblyman Ash Kalra, D-San Jose. The bill would rework AB 1482 by reducing California’s rent cap from 5% plus inflation to 2% plus inflation, remove exemptions for single-family homes and condominiums, and make the state’s rent and eviction controls permanent.
The California Apartment Association testified against the measure, warning it would stifle housing development and discourage investment in rental housing.
Debra Carlton, CAA’s executive vice president of state public affairs, opened her testimony by quoting the Legislative Analyst’s Office: “Rent control discourages new housing. It does not resolve supply [issues] and it exacerbates unaffordability.”
Carlton highlighted a sharp decline in multifamily housing permits — from 60,000 in 2023 to just 30,000 in 2024 — following the qualification of Proposition 33, a failed 2024 ballot measure intended to repeal the Costa-Hawkins Rental Housing Act and authorize extreme rent control measures. “Unfortunately, AB 1157 will fuel this fall,” Carlton predicted, arguing the legislation would worsen the housing permit decline.
She also criticized AB 1157 for breaking a legislative promise made in 2019 when the Legislature approved the rent cap law: AB 1482, or the California Tenant Protection Act.
“The promise when 1482 was passed was that it would remain in effect for 10 years,” Carlton said. “The intent was to give the Legislature time to promote housing construction. Obviously, this breaks that promise.”
CAA’s chief lobbyist reminded committee members that California voters have rejected stricter rent control measures three times at the ballot box. Referring to the single-family homeowners attending the hearing—many from the Bay Area who would lose exemptions under the bill—she warned that stricter rent caps would be unsustainable, especially since many received no rental income during the COVID-19 pandemic.
Bill breaks earlier sunset promise, threatens housing production
During the committee debate, assembly members acknowledged the severe housing affordability crisis but remained divided on whether AB 1157 provided an appropriate solution. The discussion centered on balancing immediate tenant stability against concerns that stricter rent caps could hinder housing production.
Assemblywoman Lori D. Wilson, D-Suisun City, emphasized adding to the housing stock should be the priority
“The best way to suppress prices is to increase supply,” Wilson said. She voted “no” on the bill.
Assemblywoman Buffy Wicks, D-Oakland, who co-authored the original 2019 law, warned that AB 1157 could negatively impact housing production. While Wicks voted to advance the bill to its next committee, she called for extensive stakeholder engagement before enacting such a significant policy change
“If I think that this impacts housing production, I’m going to have a lot of concerns moving forward,” Wicks said.
The debate revisited the 2019 compromise that established the current rent cap law, AB 1482. Opponents questioned amending the law before its 2030 sunset without comprehensive data demonstrating its effectiveness. Assemblyman Joe Patterson, R-Rocklin, echoed the concerns, repeatedly noting voters’ consistent rejection of tighter rent controls. Discussions also highlighted divergent views on the impact to small “mom-and-pop” landlords. Opponents stressed threats to their financial stability, while supporters claimed the bill would ensure reasonable returns for landlords and clarity for tenants.
Property owners pack Capitol hearing to voice concerns
Earlier that morning, about 150 opponents of AB 1157, organized by the San Francisco Apartment Association, filled Capitol halls wearing bright red shirts emblazoned with “Don’t Kill Housing! Stop AB 1157.” Many attendees had traveled from San Francisco, lining up early to enter the hearing.
Opponents of AB 1157, many from San Francisco’s Chinese community, line the halls of the state Capitol in red shirts reading “Don’t Kill Housing! Stop AB 1157” ahead of a legislative hearing on the bill. The California Apartment Association and the San Francisco Apartment Association helped organize the turnout.
Among them was Tina Wong, co-founder of BetterHousingPolicies.org, who explained her organization’s role in educating small Chinese property owners, who often face language barriers and lack awareness of state housing laws. Wong noted many property owners become upset upon learning of AB 1157’s provisions.
Wong expressed particular concern about applying rent control to single-family homes and condominiums and eliminating the 2030 sunset clause. She noted these expansions were precisely what opponents feared during debates over AB 1482 in 2019. She also worried the measure would increase litigation, benefiting lawyers at the expense of taxpayers and housing providers.
Steed Ahn, president of the Chinese Real Estate Association of America, emphasized how rising costs affect small landlords, particularly first-generation immigrants striving to build generational wealth.
“Everything is rising—inflation, cost of living, gas prices, taxes — especially in California,” he said. Ahn warned restricting rent increases would deter investment, reduce housing supply, and ultimately drive rents higher, calling it “just supply and demand, basic economics.”
Kimberly Wong, a Realtor who attended the hearing to represent family members who own rentals, voiced concern that most people are unaware of AB 1157’s implications. “It’s restricting property rights,” she said, suggesting people would be shocked if they fully understood its potential impact. Moreover, she expressed frustration that the bill represents another step in an escalating pattern of regulation and costs burdening property owners, especially in the Bay Area.
This was the first hearing on AB 1157. It still has a long way to go. AB 1157 now heads to the Assembly Judiciary Committee, where a hearing is set for Tuesday morning. CAA and a broad coalition of housing groups have vowed to continue opposing the legislation.
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