Emergency Rent Freeze Proposed in Sacramento

Industry News,

Emergency Rent Freeze Proposed in Sacramento

 


Proposal to Freeze Rent Impacts Los Angeles County Housing Providers Only

Assembly Bill 246, which is being introduced by Assembly Member Issac G. Bryan, whose district encompasses Baldwin Hills, Crenshaw District, Culver City, Ladera Heights, Mar Vista, Del Rey, Palms, Pico-Robertson, Beverly Grove, Mid-Wilshire, and large parts of South Los Angeles, would put a “freeze” on all increases retroactive to the rent being charged on January 7th and would remain in place for one year after emergency declaration for Los Angeles County. Right now, the proposed bill “may be heard by committee” on February 15, 2025, according to a state bill tracking website, LegiScan.

In effect, proposed Assembly Bill 246 proposes to mandate a temporary and more harmful, albeit temporary version of the recently defeated Proposition 33 that is being targeted specifically for Los Angeles County. If passed, Assembly Bill 246 would impose a rent freeze and suspend vacancy “de-control” for a period of twelve months, and require housing providers to roll-back any rent increases effective on or after January 8, 2025 whether the increase was imposed on a tenant housed as of January 7, 2025, or to a new tenant occupying a unit that became available and vacant after January 7, 2025.

Vacancy de-control is a right housing providers have under the Costa-Hawkins Rental Housing Act to charge, under most conditions, the going market rate of rent when there is a vacancy. Under Assembly Bill 246, if passed, “vacancy de-control” will be suspended for one year and no rent increases will be permitted within Los Angles County. Owners who have had long-term renters in place subject to a local rent stabilization ordinance, who have unit turnover after January 8th, and who may have been receiving rent that is far below market will suffer the worse consequences by the passage of this legislation and perhaps will never be able to catch-up to market unless they experience another vacancy.

The bill also authorizes the district attorney to enforce compliance, with potential civil penalties of up to $10,000 for violations. If passed, the proposed bill would take effect immediately as an urgency statute.

 


Important Notice

 This proposed bill is not yet law, and is subject to a future legislative process, including committee hearings and floor votes by both legislative bodies, and signature by the Governor. This bill, as proposed, is subject to amendment and may undergo changes before being finalized. The Apartment Association of Greater Los Angeles will keep members apprised of the status of this proposed bill. We will soon notify you of any action you can take to help us to defeat this proposed bill.


 California Legislators

Those who wish to voice your opposition to this proposed bill should do so by contacting the state legislature for the district where you live and/or own investment property. Look up your California legislators here: https://findyourrep.legislature.ca.gov/.


 Defeat This Legislation

DO YOUR PART, AND HELP AAGLA DEFEAT HARMFUL LEGISLATION. PLEASE GIVE TO OUR POLITICAL ACTION COMMITTEE SO WE HAVE THE RESOURCES TO “WIN” ON YOUR BEHALF.

Give at: www.aagla.org/candidatespac.