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California Rent-Cap Bill Softened
A proposed bill that seeks to ban steep rent hikes in California has been changed in an effort to win support prior to a deadline. Assembly Bill 1482, authored by David Chiu, D-San Francisco, would sunset after 10 years and properties built within the past decade would be exempt.
Chiu said in a statement about the changes, “Just as the bill gives renters stability, we are providing landlords stability as well by including a sunset date in the bill. “We also want to be sure that this legislation does not deter housing production, so we will be exempting new housing units up to 10 years old.”
The rolling exemption would go away once a property reached the 10-year mark. The Assembly must approve the bill by month’s end to give it a chance at passing this year.
The amendments wouldn’t affect the cap proposed, which would allow annual increases of up to 5% plus the rate of inflation. The cap would apply to nearly all California rentals not already under rent control, except for new construction properties.
The California Apartment Association’s Debra Carlton is concerned that the cap could easily be lowered. She told the San Jose Mercury News, “AB 1482 does nothing to prevent this rent cap from being lowered next year. It’s just so hard to build in California today, and this is just one more added layer that’s going to make it more difficult.”
For comments, questions or concerns, please contact Dennis Kaiser
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