Debra Carlton
Assembly member Josh Hoover

Complex regulations and rising costs continue to push small rental housing providers out of the market, reducing supply and adding pressure on rents. That was a key takeaway from a recent episode of the Point of Order podcast featuring Debra Carlton, the California Apartment Association’s executive vice president of state public affairs. 

Hosted by Assembly member Josh Hoover, R-Folsom, the episode explored how complicated rules and mounting costs are prompting small owners to consider selling or leaving the business — shrinking the number of homes available to rent. 

Carlton noted that the association tracked more than 200 bills this year, flagging over 30 proposals that would have made it harder to provide rental housing.  

“This was the largest list we ever had of bills that were just no good for the rental housing industry,” she said. “And I would say no good for tenants either, because you make it too hard to stay in business — especially for your mom-and-pops — and they’re getting out.” 

Small owners, big share of homes 

Carlton emphasized that CAA represents not only apartment owners but also small-scale landlords who rent out single-family homes. These “mom-and-pop” providers account for roughly 55%–60% of California’s rental homes (owners with fewer than 10 units). They often work directly with residents and can be more flexible but are also the most likely to leave when costs and rules pile up. Pandemic-era nonpayment in some jurisdictions led to foreclosures for owners with mortgages, shrinking the supply of rentals. 

Policy hurdles that raise costs 

The conversation highlighted several factors that slow construction and add costs that ultimately show up in rents: 

  • Frequent litigation under the California Environmental Quality Act that delays housing. 
  • New vehicle-miles-traveled requirements that can add substantial fees to homes built farther from job centers. 
  • High per-square-foot construction costs in some cities and lengthy local processes that push projects out by years. 

Carlton and Hoover discussed solutions with bipartisan momentum: more infill and higher-density housing, clearer and faster approvals (including third-party plan review when cities are backlogged), and fee reforms. Accessory dwelling units have grown after the state limited certain local charges, but ADUs alone won’t close the gap. 

This year’s bills CAA helped stop or improve 

From the podcast discussion, here are examples of proposals CAA opposed or worked to fix: 

  • Mid-month rent payments: SB 436 (Sen. Aisha Wahab) would have extended California’s notice period for nonpayment of rent from three days to 14 days, excluding weekends and judicial holidays. It also would have required landlords to include language in pay-or-quit notices informing tenants they could stop the eviction process by paying all rent owed before a lockout occurs. CAA testified against the proposal, warning it would have delayed rent payments and forced housing providers to operate as creditors, especially burdening small owners. Despite amendments, the 14day notice requirement remained. CAA opposed the measure throughout, and it ultimately failed passage. 
  • AB 863 (Assembly member Ash Kalra) originally would have forced landlords to translate eviction notices and complaints into multiple languages. Following sustained advocacy from CAA, the bill was amended to shift responsibility to the Judicial Council of California, which must produce a standardized summons form in six languages by Jan. 1, 2027. With these improvements, CAA and its partners lifted their opposition, and the bill is now on the governor’s desk. 
  • AB 1157 (Assembly member Kalra) sought sweeping changes to California’s rent cap law known as AB 1482. The bill would have reduced allowable rent increases to 2% plus inflation, capped at 5%, removed exemptions for singlefamily homes and condominiums, and eliminated the law’s 2030 sunset date. CAA testified against the bill and mobilized thousands of members in opposition. The proposal was pulled from consideration after advancing briefly in the spring. 

What lawmakers can do next 

The discussion returned repeatedly to the basics: add supply and reduce red tape. Carlton supported ideas such as third-party plan review when cities are backlogged, enforceable permit timelines, fee transparency, and zoning that allows more homes near jobs and transit. She also pointed to downtown infill as a way to revive urban cores while easing pressure on rents. 

“High density is, quite frankly, good for the environment,” she said. “Using less land is a good way to go.” 

Why it matters to renters 

When policy drives small owners out, renters lose choices. Fewer homes mean more competition and higher prices. Keeping local owners in the market — while removing barriers to building — are among the most direct ways to improve affordability without policies that shrink supply. 

You can watch the full conversation on YouTube here or on the media player below.

For compliance resources, forms, and updates for rental housing providers, visit the California Apartment Association at caanet.org.