California Legislators Introduce Package with Statewide Rent Control

California legislators introduced a package of rental housing legislation that seeks to cap rent increases statewide, and allow local governments to apply rent control to single-family homes and 10-year-old construction.

One such proposal from Assembly Democrat David Chiu, Assembly Bill 1482, would limit annual rent increases. Though the exact amount that landlords could raise rents each year is undetermined at this time, it is expected to be higher than what cities with caps currently have on the books. Annual caps on rent increases would be based on the rate of inflation plus a yet-to-be-determined figure, though would not supersede existing local rent control laws. Roughly a dozen California cities already have rent control laws, and Chiu’s proposal would apply to cities that do not.

Increases for most apartments built in the city of Los Angeles before 1978 are regulated by the Rent Stabilization Ordinance, which is based off the Consumer Price Index. That rate has been capped at 3% for the past decade, but starting in July, landlords will be allowed to increase rents up to 4%. The city has allowed hikes of more than 3% only three times since 1993.

Another bill from Assemblymember Richard Bloom (pictured above) seeks to let cities with rent control establish rent control in newer rental units, including buildings that are more than 10 years old, as well as single-family homes used as rental properties. Currently, the law in California prevents cities from applying rent control to units built after February 1995, or in some cases in Los Angeles, after 1978.

The California Apartment Association (CAA) commended lawmakers’ intentions to help struggling tenants in today’s tight housing market, but noted the legislative proposals described during a news conference on Thursday could have counterproductive results, especially if they are too extreme, like last year’s Proposition 10, said CAA’s CEO, Tom Bannon.

“California continues to suffer from an unprecedented housing shortage, and the proposals outlined today distract from the solutions,” Bannon said. “Applying rent control statewide and allowing rent caps on single-family homes and newer construction would only worsen our housing shortfall. We need to encourage new housing, not create policies that stifle its creation.”

For comments, questions or concerns, please contact Dennis Kaiser