Important Updates on Assembly Bills 854 (Ellis Act) and 1188 (Rental Registry)

Industry News,

A.B. 854

Because of our strong lobbying efforts, the immediate threat of attack against the Ellis Act has been postponed for at least now. Assembly Bill 854, proposed by Democratic, Northern California Assembly Member, Alex Lee, could strip rental property owners of their rights to exit the rental housing business, even when YOU may be losing money! Assembly Bill 854 is another re-treaded attack on California’s Ellis Act, and if passed, becomes State Law compelling YOU to continue offering housing for rent or lease. The bill was turned into what is termed a “Two-Year Bill” and will carry over to the next legislative session when we will again address and attempt to stop its passage.

Many thanks go out to our Sacramento lobbyists who did an incredible job by quelling this major threat against our rental housing industry for now. Thank you, Steve Carlson, Jonathan Arambel and Matt Moretti, for a job well done!

Assembly Bill 1188

Once again, due to our lobbying efforts, the discussion that was to occur today in the Assembly’s Committee on Housing & Community Development on Assembly Bill 1188 has been postponed to, as we understand it, “gut and neuter” the proposed bill. We will see what soon comes out of the “sausage making machine” over there in Sacramento regarding this bill, but for now, we are in a “wait and see” position.

Assembly Bill 1188, proposed by Democratic, East Bay Area Assembly Member, Buffy Wicks, as originally proposed, would require (by January 1, 2024) rental property owners that own 5 or more rental units to disclose financial and other information concerning their rental housing business through a rental registry online portal administered by local governments. Additionally, information provided by rental housing providers would be under penalty of perjury and would prohibit landlords from issuing various notices to increase the rent or terminate a tenancy unless the information is supplied through the rental registry online portal.

Assembly Bill 1188 is at least the third such attempt to create a statewide rental registry online portal within the past 4-years. It has been our belief that any rental registry is unconstitutional in that it represents a de facto registry of residents and rents without due process. In effect, the rental registry will function as an ongoing ‘fishing expedition” without any sort of reasonable suspicion or probable cause standards, both of which will be abandoned under this law, so that the state can gather what amounts to confidential data about renters and the business of our rental properties.

As always, we will keep you apprised on these and other proposed bills as things develop. Please consider a contribution to our Political Action Committee to help support our advocacy efforts. Unfortunately, it takes money to win. Please make your generous contribution today at: https://aagla.org/candidatespac/.