California

Historic Rent Control Bill Heads to California Governor

A bill passed by the California Assembly Wednesday will cap annual rent increases to 5% plus inflation.

Assembly Bill 1482, which was authored by four Bay Area assembly members and now heads to Gov. Gavin Newsom's desk, is a first for Californians who live in older apartment complexes.

The cap does not apply to apartments built within the last 15 years, only applies to single-family home rentals owned by corporations and does not affect tenants under rent control in cities such as San Francisco.

The bill also gives tenants extra protections against being evicted without cause.

Landlords will soon have to show documented lease violations for tenants who have been at a residence for more than one year. They also must provide the equivalent of one month's rent for tenants being forced out for renovations or condo conversions.

No Republicans in Sacramento voted for the bill. A number of Democrats abstained.

Opponents argue the bill could make it less attractive to build new apartments, therefore further constricting the already tight housing supply. Critics also point out that Californians have already voted down a ballot measure that would have imposed stricter rent controls.

If Newsom signs off on the bill, it would take effect on Jan. 1, 2020.

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