Addressing Our Legislative Priorities

Addressing Our Legislative Priorities

By Kate Bell, Founder, Kate Bell Strategies

Legislative Update

The Legislature reconvened from their Spring Recess on April 10^th, and they are now busy with policy committee hearings.  We are coming up on policy committee deadlines at the end of April and early May, which means that if any bills are not heard by May 5^th, these bills are considered either “two-year” or “dead” bills for the year. “Two-year” bills may be amended (or not) and brought back during the next year’s legislative session, but not always, and “dead” bills are just that, although they often return the next year or year after that is some shape or form.

The legislative calendar for the rest of this year’s legislative session is as follows:

• April 28 - Last day for policy committees to hear fiscal bills.
• May 5 - Last day for policy committees to hear non-fiscal bills.
• May 19 - Last day for fiscal committee to hear and pass bills and send to the Floor of the respective houses of origin (e.g., Senate Floor or Assembly Floor).
• June 2 - Last day for bills to pass the Floor in their house of origin.
• June 15 - Deadline for Legislature to pass budget bill.
• July 14 - Last day for policy committees to meet and Summer recess begins.
• August 14 - Legislature reconvenes from Summer recess.
• September 1 - Last day for fiscal committee to pass bills and send to the Floor.
• September 8 - Last day to amend bills on the Floor.
• September 14 - Last day for bills to pass the Floor in the second house.
• October 14 - Last day for Governor to sign or veto bills.

Top Threats: Legislation Apartment Association of Greater Los Angeles is Opposing

The Following are the most dangerous proposed bills and the top priorities of the Apartment Association of Greater Los Angeles:

• Senate Bill 466 (Wahab, D-Fremont) - Costa-Hawkins Rental Housing Act – Senate Bill 466 would repeal major protections afforded to the state’s rental housing providers under the Costa-Hawkins Rental Act of 1995, as well as expand local rent regulations, making it extremely difficult for rental property owners to continue to provide housing. Furthermore, the bill would limit those units that currently have a right of vacancy decontrol.  This is an absolute priority bill for the Association to stop this year.   Senate Bill 466 has been scheduled for a hearing in the Senate Judiciary Committee on April 18th.

• Senate Bill 567 (Durazo, D-Los Angeles) - Tenancy – Senate Bill 567 would undo a heavily negotiated agreement on “just cause” eviction rules and rent limits under state rent control and tenant protections per Assembly Bill 1482. Senate Bill 567 bill eliminates the provision under State law (Assembly Bill 1482) related to termination of tenancy without just cause and requires that just cause to be stated in the written notice to terminate tenancy only after a tenant has continuously and lawfully occupied a residential real property for 12 months. Senate Bill 567 eliminates the 12-month waiting period before just cause rules are imposed.

Additionally, for Ellis Act evictions, Senate Bill 567 requires that all of the rental units at the rental property be withdrawn from the rental market for at least 10 years.

Senate Bill 567 would further eliminate the exemption under state rent control regulations of any residential real property that is alienable and separate from the title to any other dwelling unit, including mobile homes, condominiums and single family properties.

Finally, Senate Bill 567 would limit annual rent increases to just the percentage change in the cost of living, or 5%, whichever is lower rather than the change in the Consumer Price Index (CPI) plus 5%, or 10%, whichever is lower. Under this scenario, property owners will never be able to keep up with ever increasing costs, particularly following years of imposed moratoriums on rent increases enacted by many local jurisdictions throughout the state. This bill would be a significant setback to efforts for increasing housing availability. Senate Bill 567 is scheduled for a hearing in the Senate Judiciary Committee on April 25th.

The following are additional proposed bills that the Apartment Association of Greater Los Angeles has prioritized and is opposing

• Assembly Bill 12 (Haney, D-San Francisco) - Tenancy: Security Deposits – This bill would prohibit a landlord from receiving a security deposit for a rental agreement in an amount in excess of one month’s rent, regardless of whether the residential property is unfurnished or furnished. Assembly Bill 12 has passed the Assembly Judiciary Committee on a party-line vote and is now up for consideration on the Assembly Floor.

• Assembly Bill 309 (Lee, D-Milpitas) - Social Housing - This bill would define “social housing” for purposes of the Zenovich-Moscone-Chacon Housing and Home Finance Act, and make findings and declarations relating to social housing and would state the intent of the Legislature is to further the Social Housing Act to address the shortage of affordable homes by developing housing for people of all income levels, prioritizing low-income households. The Apartment Association of Greater Los Angeles is opposing Assembly Bill 309 along with statewide realtor associations.  It is scheduled for a hearing on April 26^th in the Assembly Housing and Community Development Committee.

• Assembly Bill 919 (Kalra, D - San Jose) - Sale of Rental Properties: First Right of Offer - Would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential rental property to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. In effect, this bill requires sellers of rental residential properties to give a right of first refusal to their renters or a non-profit organization before offering the property for sale to other parties. We have been lobbying this bill before the Assembly Judiciary and it may become a two-year/dead bill for the year.

• Assembly Bill 1035 (Muratsuchi, D - Torrance) - Mobile Home Parks Rent Caps - This bill would prohibit the management of a mobile home park from increasing the gross rental rate for a tenancy for a mobile home space more than 3% plus the percentage change in the cost of living, as defined, over the course of any 12-month period, as specified. The Apartment Association of Greater Los Angeles is opposing Assembly Bill 1035 along with the Western Manufactured Housing Communities Association (WMA).  This bill is scheduled for a hearing on April 19^th in the Assembly Housing and Community Development Committee.

• Assembly Bill 1317 (Carrillo, D - LA) - Unbundled Parking - This bill would require the owner of residential real property that provides parking with a residential unit to unbundle parking from the price of rent (“unbundled parking” selling or leasing parking spaces separate from the lease of the residential use).  Assembly Bill 1317 has not yet been scheduled for a hearing and may become a two-year/dead bill for this year.

• Senate Bill 267 (Eggman, D-Stockton) - Credit History of Persons Receiving Government Rent Subsidies – This bill would prohibit the use of a person’s credit history as part of the application process for a rental housing accommodation without offering the applicant the option of providing alternative evidence of financial responsibility and ability to pay in instances in which there is a government rent subsidy and would require that the housing provider consider that alternative evidence in lieu of the person’s credit history. Senate Bill 267 was heard in policy and fiscal committees and is now on the “Suspense File” in Senate Appropriations, awaiting action by May 19^th. (Note: The Suspense File process has been a part of the legislature’s Committee Rules since the mid-1980s as a way to consider the fiscal impacts to the state of legislation as a whole. The committee analysis indicates whether a bill's fiscal impacts meet the criteria for referral to the Suspense File.)

• Senate Bill 395 (Wahab, D-Fremont) - Statewide Eviction Database – This bill would state the intent of the Legislature to enact subsequent legislation that would require landlords to report all evictions to a new statewide eviction reporting database. Senate Bill 395 is scheduled for a hearing in the Senate Judiciary Committee on April 18^th.

• Senate Bill 460 (Wahab, D-Fremont) - Hiring of Real Property: Criminal History – This bill would prohibit a rental housing provider from inquiring about an applicant’s criminal history, requiring an applicant to disclose their criminal history, or requiring an applicant to authorize the release of their criminal history, or basing any adverse action on information contained in an applicant’s criminal history, unless they are complying with federal law. This is now a two-year bill, which means it is not moving this year and, therefore, a win for the industry.

As always, the Apartment Association of Greater Los Angeles will keep you informed as these bills progress and make their way through the Legislature.  We will be sure to send out Calls to Action when we are at a pivotal juncture and your involvement could help determine the outcome.

Kate Bell, the Founder and Chief Executive Officer of Kate Bell Strategies is a former Partner of Capitol Advocacy, which is ranked among California’s top lobbying firms. Ms. Bell’s firm specializes in lobbying, strategic planning, coalition building, budget advocacy, procurement, and political involvement.  Kate Bell Strategies and Capitol Advocacy represent the interests of the Apartment Association of Greater Los Angeles through its affiliation with the California Rental Housing Association.  Both firms are based in Sacramento.