As we get ready for the July 4th holiday the State of California is getting ready to have the first hearing in the Senate for AB 1482, the controversial bill that would bring rent control to the entire state.
AB 1482 has faced an uphill battle from the start but it’s creator, Assemblyman David Chiu, D-San Francisco, has been unrelenting in his support of it and now this bill is getting ready for the Senate floor and possibly Governor Newsom’s desk where he’s promised to sign rent control legislation this year.
About AB 1482
The bill had originally set a cap on annual rent increases at 5 percent plus inflation, but was changed to 7 percent plus inflation, and now exempts landlords with 10 or fewer single family homes. The legislation also has an expiration of 2023 with a renewal option, and would not apply to new housing. However, an accompanying bill, AB 1481, which would have required just causes (such as the failure to pay rent) for evictions, was voted down by the Assembly.
“We have to look at putting caps on what rents landlords can charge — the year-over-year increases are not sustainable,” said Kevin Zwick, CEO of Housing Trust Silicon Valley (HTSV). “I’m happy to see this legislation move forward. Compromises were made to get this passed through the Assembly. I would expect that it does get through the Senate and is signed by the Governor. Newsom has said that he supports this bill.”
Opposed By The CAA
Although AB-1482 has widespread support of lawmakers and housing advocates in the state, it’s currently opposed by the California Apartment Association (CAA) and a wide variety of other organizations in the state.
This bill won’t solve the housing shortage in California, it’s only going to make the problem worse sense many investors who are current’y building in California won’t want to proceed with building future housing developments in the state due to rent control.
The concept of rent control has a long history dating back over the last 100 years. The only thing that will solve the housing crisis is building more housing in a state that continues to be one of the top relocation destinations for people from all over the world.
Contact 36 North Property Management
To learn more AB 1482, or to speak with us about our property management services, contact us today by calling (831) 484-4604 or click here to connect with us online.