News: Rent ControlFilter
Now that California has adopted the nation’s most sweeping statewide tenant protections, it’s time to fix the root cause of our housing crisis – a chronic lack of supply, said Tom Bannon, chief executive officer of the California Apartment Association. Gov. Gavin Newsom today signed Assembly Bill 1482, making California the second state in the union to impose a statewide cap on annual rent increases. The legislation was framed as an anti-gouging measure targeting the most egregious rent hikes, such as increases of 50% to 75% on existing tenants. The California Apartment Association, which opposes rent control, took a neutral position after… Read More
The city of Sacramento announced the initial rent cap under the Tenant Protection and Relief Act, a new ordinance that limits rent increases and provides “just cause” tenancy protections. Effective Sept. 12, 2019, the maximum annual rent adjustment for an existing tenancy cannot exceed 8.5% within a 12-month period. The new ordinance limits rent increases to 6% plus the annual Consumer Price Index. According to city staff, the CPI used to calculate the rent cap was 2.5%. The allowed annual increase is calculated based upon the base rent, which is the monthly rent in effect on July 1, 2019, for tenancies commencing on or before Sept.12. For tenancies beginning after that date, the initial base rent is the monthly… Read More
This year’s statewide rent-cap bill, including a series of amendments secured by CAA, has cleared both houses of the California Legislature and now awaits Gov. Gavin Newsom’s signature. The Assembly, which needed to review amendments to the bill, approved the legislation last month on a 48-26 vote with five abstentions. The bill passed off the Senate floor on a 25-10 vote with five abstentions. AB 1482 by Assemblyman David Chiu, D-San Francisco, will cap annual rent increases at 5% plus the rate of inflation — which comes to about 8% at present — for much of the state’s multifamily housing… Read More
Over the objections of CAA, Los Angeles County supervisors Tuesday voted unanimously to draft a permanent rent control ordinance for the county’s unincorporated areas. The ordinance is expected to limit annual rent increases based on the rate of inflation, which is now about 3%. Supervisors instructed staff to return with the ordinance by Nov. 12.
A bill that would cap annual rent increases for much of California’s multifamily housing stock now includes significant amendments secured by the California Apartment Association. The amendments to AB 1482, among other things, would prevent local governments from making the bill’s rent cap any more restrictive. Moreover, the revisions would improve the legislation’s vacancy decontrol and “just cause” for eviction provisions, while shielding new buildings from the cap for five additional years. The changes follow weeks of around-the-clock negotiations with the office of Gov. Gavin Newsom and Senate Pro Tem Toni Atkins and were announced last week after the bill advanced from the Senate Appropriations Committee. The bill, AB 1482 by Assemblyman David Chiu, D-San Francisco,… Read More
The city of Sacramento is rushing to get the procedures, information and staffing in place before its newly approved rent control ordinance takes effect Sept. 12. The new ordinance, officially the Tenant Protections and Relief Act, passed as an urgency measure on Aug. 13, giving city staff only 30 days to put together the program. Because the ordinance was unveiled and passed with short notice, rental owners and property managers have many unanswered questions with less than two weeks before they must comply with the new restrictions on rent increases and evictions.
An overflow crowd gathered outside City Hall during last week’s Westminster City Council meeting. After hearing from the California Apartment Association, the Westminster City Council decided last week to steer clear of rent control policies. The topic of capping rents came up during the city’s Aug. 14 meeting, which included eight hours of testimony from over 100 speakers. The council also received this staff report on rent control, which highlights the legal and administrative risks of the policy for the city of 91,564.
Lawmakers will decide next week whether a statewide rent control and “just cause” eviction bill will move forward this year. The Senate Appropriations Committee on Friday, Aug. 30, will elect to either move Assembly Bill 1482 to the Senate Floor or leave it on suspense file for the remainder of 2019.
Tagged: Rent Control