Capitol Alert

Tired of rent increases? They would be capped under this plan still alive in Legislature


Gov. Gavin Newsom’s office announced on Friday he and top Democratic lawmakers have struck a deal to limit annual rent hikes to 5 percent plus inflation for 10 years. The bill in its current form calls for a 7 percent limit for three years. Gov. Gavin Newsom announced earlier this month he’d like to see stricter caps.

Gavin Newsom, top Democrats strike deal to cap rent hikes in California

Original story:

California took a major step Friday toward capping rent increases for the next three years.

Assembly Bill 1482 cleared a key budget committee without amendments. Negotiations continue behind the scenes about how much to limit annual rent hikes.

Assemblyman David Chiu, D-San Francisco, initially called for rent increases to not exceed 5 percent plus inflation over the next 10 years. He has since amended his plan, and its current form sets a limit on annual rent increases of 7 percent plus inflation for three years. The bill also requires landlords to show “just cause” in order to evict a tenant.

Gov. Gavin Newsom said at a Los Angeles event earlier this month that he’d like to see a cap lower than 7 percent. The bill now heads to another committee, where changes are likely to take place.

“As this process moves forward, I will do everything in my power to get this bill over the line and ensure as many Californians as possible have protections from egregious rent increases and predatory evictions,” Chiu said in a statement. “While the bill was sent to the Senate Rules Committee, we have been assured that AB 1482 will continue to progress this year. This is simply a procedural move to allow more time for the Governor’s Office and other stakeholders to weigh in on changes.”

Assemblyman Rob Bonta, D-Oakland, co-authored the bill and said before the hearing he expects the final version of the plan will set limits somewhere between 5 percent and 7 percent plus adjustments for cost of living increases.

The proposal must clear the Legislature by Sept. 13 to arrive at Newsom’s desk. It has received local support from Los Angeles Mayor Eric Garcetti, and is opposed by several business and housing groups, including the Bay Area Council and California Apartment Association.

Last year, voters rejected Proposition 10, which sought to give local governments more leeway to regulate rents. It would have overturned California’s Costa Hawkins Rental Housing Act, which bars local governments from imposing rent control on apartments built since 1995.

Following its defeat, lawmakers vowed to step in to address concerns over high housing costs.

Bryan Anderson is a political reporter for The Bee. He covers the California Legislature and reports on wildfires and transportation. He also hosts The Bee’s “California Nation” podcast.