Two weeks after enlisting industry support in opposition to AB 1157, the Affordable Rent Act introduced by Assemblymember Ash Kalra (D-San José), the California Apartment Association claimed victory. The bill was pulled from consideration and removed from the Assembly Judiciary Committee agenda after advancing out of the Assembly Housing Committee, likely stalling its progress until at least 2026.

AB 1157 would have made “sweeping changes to California’s existing rent cap law, AB 1482,” CAA said. It would reduce allowable rent increases to 2% plus inflation, remove exemptions for single-family homes and condominiums and eliminate the law’s 2030 sunset date.

During the April 24 Housing Committee hearing, Debra Carlton, CAA’s EVP of state public affairs, cited the Legislative Analyst’s Office in explaining “how rent control policies restrict supply and exacerbate unaffordability,” according to CAA.

Pro-housing groups, including California YIMBY and YIMBY Action, warned that AB 1157 could unintentionally worsen the state’s housing shortage, CAA said. It would have extended price controls to accessory dwelling units, “one of the few housing types to see consistent growth in recent years.”