The city of Los Angeles is considering an “anti-displacement” proposal that would cap rent increases near new luxury and market-rate apartment developments when those projects lack affordable housing. The proposal, introduced last month by City Councilman Herb J. Wesson Jr., would cap rents through “anti-displacement zones.” These areas would exist for three years and cover a two-mile radius around luxury and market-rate developments with zero affordable units.
In response to the wildfires raging in Southern California, Gov. Gavin Newsom on Friday declared states of emergency for Los Angeles and Riverside counties, a move that prohibits rent increases over 10%. The limit on rent increases is part of the state’s anti-price gouging law. When activated, Penal Code Section 396 makes it illegal to increase the price of many consumer goods and services, including that of rental housing, by more than 10% above pre-emergency levels. The rent-gouging protections apply to all housing types in the affected areas. Local rent control laws in several jurisdictions in L.A. County also remain… Read More
Gov. Gavin Newsom this week signed a statewide cap on rent increases, a mandatory Section 8 bill, and several other pieces of legislation that will change the way California’s rental housing industry does business in 2020. Here are summaries of five game-changing bills signed by Newsom this week: Statewide rent cap:AB 1482 by Assemblyman David Chiu, D-San Francisco, will place an annual 5% plus CPI cap on rent increases and create new standards for evictions across California. The signing of AB 1482, officially the Tenant Protection Act of 2019, marks the most significant policy change for California’s rental housing owners… Read More
Gov. Gavin Newsom on Tuesday signed a bill that will make it illegal to reject a prospective tenant solely based on the applicant’s use of a Section 8 federal housing voucher. Beginning Jan. 1, 2020, SB 329 by Sen. Holly Mitchell, D-Los Angeles, will ban blanket policies against taking Section 8 applicants and require landlords to treat voucher-holders like any other applicant. The law also will prohibit “No Section 8” advertisements. Sen. Holly Mitchell Throughout the legislative process, Mitchell repeatedly stated that owners will retain the ability to reject voucher-holders after giving them a fair vetting. The senator, however, refused… Read More
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
This week, the San Jose City Council held a study session to better understand the issue of tenant displacement from a residential and business perspective. The Housing Department scheduled the study session to educate the council on who is getting displaced, why they are being displaced and what can be done to prevent that displacement. Much of the discussion focused on what the city could do to further support tenants from being evicted. While there is no disagreement that displacement is occurring because of rising rents, there was disagreement on what can be done to lessen it.
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
When Sacramento renters get caught illegally cultivating marijuana, it’s their landlords who get the bill — and it can reach hundreds of thousands of dollars. Over the past two years, the city has assessed $94 million in administrative penalties against property owners accused of violating the local cannabis ordinance, CapRadio has reported. The ordinance, which took effect in August 2017, limits the number of plants that may be cultivated at a property to six and charges $500 per plant in excess of that number. And now, other California cities may be looking at Sacramento’s enforcement tactics as a possible model for their own marijuana-cultivation measures. Sacramento City Hall Enforcement of… Read More
The California Apartment Association has issued an “Industry Insight” paper to help rental housing owners comply with a Section 8-related ordinance that’s taken effect in San Jose. Effective Thursday, Sept. 26, the city’s “Housing Payment Equality Ordinance” requires that landlords consider for tenancy all applicants with the ability to pay for a given unit, including those who would pay their rent using Section 8. The enforcement provisions of the ordinance do not take effect for six months, but the director of the San Jose Department of Housing may issue written warnings for violations of the ordinance in the meantime. CAA… Read More
Landlords with properties subject to Sacramento’s new rent control law will help fund the program through a $20-per-unit annual fee. The fee won approval Tuesday as the City Council ratified the budget for its new rent control and “just cause” eviction ordinance. More than 42,000 rental units are subject to the ordinance and the annual fee. The city will begin collecting it in spring 2020.