Legislation introduced this month at the state Capitol would freeze rent increases across Los Angeles County for a year following the end of the region’s state of emergency related to the Palisades Fire and windstorm conditions.
AB 246 by Assemblyman Isaac G. Bryan, D-Los Angeles, proposes locking rents at levels charged as of Jan. 7, 2025, and banning any increases during the freeze. By prohibiting all rent increases, the bill goes further than California’s anti-price-gouging statute, Penal Code Section 396, which caps rent hikes at 10% during states of emergency. Bryan introduced the measure following reports of significant rent increases, including spikes of up to 60% in Venice and more than 100% in Santa Monica. Violations under AB 246 would be subject to prosecution by district attorneys, with civil penalties of up to $10,000 per violation.
Although the California Apartment Association condemns rent gouging, it contends that AB 246 goes too far by eliminating rent increases altogether during the proposed freeze. Current laws, including California’s anti-price-gouging statute, already address these issues by capping rent increases at 10% during declared emergencies, ensuring tenants are protected without imposing a blanket freeze that disregards the financial realities of operating housing. AB 246 overreaches by penalizing all property owners for the actions of a few bad actors.
In an opposition letter addressed to Assemblyman Bryan, the California Apartment Association outlined several concerns regarding AB 246.
“By freezing rents for 12 months, AB 246 will inadvertently reduce the availability of housing.” the letter says. “Property owners who might otherwise consider renting out a room, accessory dwelling unit, or a second home may decide against doing so due to the increased risks and financial constraints imposed by this legislation.” This unintended consequence could further exacerbate the housing shortage at a time when many fire victims are in desperate need of shelter.
If enacted, AB 246 would override existing rent caps under the California Tenant Protection Act, local rent control ordinances in jurisdictions like Los Angeles and unincorporated Los Angeles County, and exemptions under the Costa-Hawkins Rental Housing Act. These exemptions currently shield single-family homes, condominiums, and newly constructed apartments from such restrictions. The freeze would remain in place for 12 months after the emergency declaration expires. With the current state of emergency extended through March 2025, the freeze could last until at least March 2026, at which point the bill’s provisions would no longer apply.
In highlighting unintended consequences, the opposition letter also points to lessons learned from COVID-19.
“For nearly five years, rents were capped while costs continued to climb for property owners,” the letter reads. “Many landlords lost their properties as they struggled to cover taxes, insurance, and maintenance costs with limited rental income.” Drawing on these lessons, the letter argues that AB 246 threatens to repeat this pattern of financial strain, particularly for small property owners who rely on rental income to stay afloat.
This proposal arrives just months after the expiration of Los Angeles’ nearly four-year rent freeze, implemented during the COVID-19 pandemic and lifted in February 2024. For many rental property owners, AB 246 represents a potential return to restrictive policies that significantly limit operational flexibility.
“Raising rents beyond legal limits during a declared state of emergency is illegal and unconscionable,” said Tom Bannon, CEO of the California Apartment Association. “The actions of a few bad actors tarnish our entire industry and exploit vulnerable families struggling to rebuild.”
“Protecting tenants and ensuring housing availability requires a balanced approach that considers the needs of all stakeholders, not just one side,” the opposition letter concludes. To that end, CAA urges lawmakers to avoid overly restrictive policies that discourage investment in housing while addressing the needs of those affected by emergencies.
Instead of imposing a blanket freeze on rent increases, CAA supports education and enforcement to ensure compliance with California’s existing anti-price-gouging laws. To aid housing providers, CAA has released a free resource, Key Laws for Landlords to Know About: 2025 Los Angeles Fires. This guide outlines legal requirements, including the 10% rent cap under the state’s anti-price-gouging statute, and eviction protections for tenants displaced by disasters.
CAA also launched a public education campaign, including a full-page ad in the Los Angeles Times, encouraging compliance and highlighting the importance of supporting tenants while maintaining legal standards.
As an urgency measure, AB 246 requires approval by two-thirds of the Legislature. If it reaches the governor and is signed into law, it would take effect immediately. CAA will continue to advocate for policies that protect tenants while supporting housing providers, ensuring long-term stability for California’s rental housing industry.
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