Rent Cap Measure Passes Through California Assembly
A measure that will cap rent increases throughout the state at 7% plus inflation has passed through the California State Assembly.
Assemblyman David Chiu, a democrat of San Francisco, authored the bill. Chiu and tenant advocates agreed Wednesday to limit the policy to three years, a concession that generated enough support to push the bill through the Assembly. The bill now has a September deadline to pass both houses of the legislature.
The bill is the latest in a contentious statewide debate over housing costs. Landlord groups and the California Association of Realtors fiercely oppose the measure, claiming it will deter new construction and limit housing supply, while advocates say the measure is necessary to protect the 9.5 million renters throughout the state that are rent-burdened and fear losing their homes. The debate has manifested as several ballot measures and assembly bills. In November, Californians voted down a measure that would have repealed Costa-Hawkins. Additionally, the State Assembly has until Friday to vote on a companion measure, Assembly Bill 1481, which will make evictions more difficult throughout the state.
California is not the only state address rising rents. Oregon recently passed a similar measure to cap rental increases.