Friday August 30th Deadline for California Rent Control Bill

By Hoge Fenton | 08.28.2019 | Firm Post

California voters made their views on rent control clear last November when Proposition 10 (rent control) was rejected by nearly 20 percentage points.

Even though Californians are faced with an unprecedented housing crisis, many believe that rent control just doesn’t work because it discourages real estate development that is crucial to reducing the costs of housing prices.

However, Governor Gavin Newsom and Assemblyman David Chiu do not seem to agree.

Early this month, Governor Newsom voiced his support for San Francisco-based Assemblyman David Chiu’s pending AB 1482, a measure that would extend rent control protections in California and cap annual increases at 7%, plus the rate of inflation, up to a maximum of 10% a year.

The measure would apply in jurisdictions where voters and local elected leaders have rejected rent control policies but would not supersede locally passed rent control laws.

In addition to capping rents, AB 1482 would apply “just cause” eviction policies statewide.

Governor Newsom has been promoting a new state fund to help California renters fight eviction. When asked about David Chiu’s rent bill, the LA times quoted Newsom as saying that the measure is “long overdue in the state of California” and he hopes to see it on his desk soon.

Chiu pushed AB 1482 through the Assembly last May and now needs to move the plan through the State Senate. The bill cleared a big hurdle just last month, passing its first Senate committee on a 6-1 vote, but ended up being pushed to an upcoming Appropriations Committee hearing.

Lawmakers must decide by September 12 whether to send the bill to Governor Newsom this year. If the measure isn’t endorsed by the Appropriations Committee by Friday August 30, it will not be passed in 2019 and would become a two-year bill.

This information is provided as an educational service by Hoge Fenton for clients and friends of the firm. This communique is an overview only, and should not be construed as legal advice or advice to take any specific action. Please be sure to consult a knowledgeable professional with assistance with your particular legal issue. Photo by Quintin Gellar from Pexels .

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