September 9, 2019 Comments Off on Most Threatening Impacts of California Rent Cap Bill Diminished Views: 1537 California News, Top California

Most Threatening Impacts of California Rent Cap Bill Diminished

A bill that would cap annual rent increases for much of California’s multifamily housing stock now includes significant amendments the California Apartment Association (CAA) helped secure. Before becoming law, AB 1482 still must clear the floor of the Senate, its amendments must pass an Assembly review, and then win the governor’s approval.

CAA says the amendments to Assemblyman David Chiu’s (D-San Francisco) AB 1482 would prevent local governments from making the bill’s rent cap any more restrictive. The revisions would improve the legislation’s vacancy decontrol and “just cause” for eviction provisions, while shielding new buildings from the cap for five additional years. AB 1482 does not apply to housing regulated by local rent control ordinances and the Costa-Hawkins Rental Housing Act.

Generally, the bill’s cap on rent increases would apply to properties that are 15 years or older, contain two units or more, and are not already subject to local rent control ordinances. The legislation would exempt single-family homes, townhouses and condos, except when owned by corporations or Real Estate Investment Trusts. It also exempts duplexes and accessory units when the owner lives on site.

An amendment CAA fought for was to exempt housing from the bill’s rent cap and “just cause” eviction provisions until they are 15 years old. The longer exemption is expected to mitigate the bill’s impact on future development of rental housing.

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