AB 1482 will curb extreme rent hikes in legislation that is stronger than what Oregon passed (credit: NAR).
SACRAMENTO—Oregon made national headlines when it became the first state to pass a statewide measure capping rent increases. The Oregon law limited yearly rent increases to 7% plus inflation.
California's Assembly Bill 1482 would curb extreme rent hikes and it is stronger than what Oregon passed. But it's not conventional rent control due to its other provisions.
Two groups gave in on the legislation when compromises were reached. The California Building Industry Association—the lobbying group for California developers—announced it would not oppose the bill after it exempted new construction from the rent cap for 15 years. And, the California Apartment Association said the same, also viewing it as a compromise.
However, one group, the California Association of Realtors, issued the following statement from association president Jared Martin opposing the passage of Assembly Bill 1482:
"The California Association of Realtors is disappointed by the passage of Assembly Bill 1482, which moves California toward statewide rent control. Throughout the debate, Realtors advocated for a balanced solution that protected renters and respected the rights of property owners. While several of our recommendations were included in AB 1482, including the exemption of single-family homes and condominiums, the final bill did not do enough to increase the supply of affordable rental housing. Even legislators who voted yes did so acknowledging its shortcomings.
It was disappointing that the California Apartment Association and the California Business Roundtable did not stand with us. In fact, the Apartment Association opposed an earlier version of the bill with a higher rent cap and a shorter sunset date, and then withdrew their opposition when the bill was amended to lower the rent cap and extend the sunset date, contrary to the interest of their members. Only CAR advocated for small mom and pop investors by successfully obtaining an exemption for single-family homes and condominiums.
In the final days, Realtors stood firm and made our case against AB 1482 based solely on its policy. Although we did not prevail, we remain steadfast in our commitment to overcome California's historic housing supply and affordability crisis. Much more work remains ahead of us, and as we have said from the beginning, Realtors appreciate the commitment of governor Gavin Newsom, Democrats and Republicans to continue working to incentivize the production of new housing for rental and sale. We look forward to working with the Newsom administration and California legislature to fight for homeownership because providing housing is critical to Californians."
Newsom is expected to sign the legislation into law shortly.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
