Newsom, Lawmakers Make Deal on California Rent Caps

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SACRAMENTO—California is among the growing number of states and cites that are taking legal steps to limit apartment rent increases. On Friday afternoon, Gov. Gavin Newsom, Senate President pro Tempore Toni Atkins, Assembly Speaker Anthony Rendon and Assemblymember David Chiu announced that they had come to an agreement on a series of amendments to Assembly Bill 1482 that would create strong renter protections. “The bill will protect millions of renters from rent-gouging and evictions and build on the Legislature’s work this year to address our broader housing crisis,” they said in a prepared statement.

Few other details were included in the announcement but local media did dig up additional information. The Mercury News reported that the deal caps annual rent increases at 5%, plus inflation, with a maximum of 10% per year.

The bill also exempts new apartments built within the past 15 years from the rent cap on a rolling basis, includes a sunset period of 10 years and will determine inflation costs on a regional basis, the Mercury News reported. The Los Angeles Times said that the bill has a provision to prevent some evictions without landlords first providing a reason.

The bill must still be approved by both houses of the legislature, which adjourns in two weeks.

It is unclear whether the bill will pass and the California Association of Realtors has come out against the measure. The California Apartment Association, however, will not oppose Friday’s measure, according to the LA Times.