Statewide rent control is expected to soon take effect in California after a bill that would place a cap on apartment rental rates passed the state Legislature this week.
AB 1482, authored by Assemblyman David Chiu (D-San Francisco), would prohibit property owners from raising rent more than 5 percent plus inflation over a 12-month period. The bill would also prohibit property owners from raising rent more than twice over a 12-month period once the tenant has occupied the home for more than a year.
The rent control rules exempt most single-family homes, as well as homes built within the last 15 years.
For affected properties, the rent control regulations are retroactive to March 15, 2019. If property owners violate the provisions over the duration of this year, the tenant’s rent at the beginning of 2020 would revert back to the rate it was on March 15.
In addition to enacting rent control, the bill makes it more difficult for property owners to evict long-term tenants. AB 1482 forbids property owners from terminating a lease without just cause after a tenant has occupied the home for 12 months, with limited exceptions.
California Gov. Gavin Newsom has already indicated he will sign the legislation.
“CA just passed the strongest rent control package in America,” Newsom stated in a tweet on Wednesday. “The rent is too damn high — so we’re damn sure doing something about it.”
AB 1482 passed the state Senate on a 25-10 vote on Tuesday and the Assembly on a 48-26 vote on Wednesday.