News Alert: Bills Attacking Rights of Rental Housing Providers (4.3.23)

State Bills Attacking Rights of Rental Housing Providers: Take Action Today!

Proposed State Bills Will Lower State Rent Limits and Target Single Family Homes

Proposed Senate Bill 567

Proposed Senate Bill 567 by María Elena Durazo (D-Los Angeles) would impose Assembly Bill 1482’s “just cause” for eviction protections rules immediately upon inception of tenancy rather than 12-months after inception of tenancy. These proposed changes come just three years after the effective date of Assembly Bill 1482, which was signed by Governor Newsom and described by him as the strongest statewide renter protection law in the U.S.

Assembly Bill 1482 places limits on annual rent increases at 5% plus the change in the consumer price index (CPI) or 10%, whichever is lower. Proposed Senate Bill 567, however, would reduce these limitations to just the change in CPI or 5%, whichever is lower. In periods of high inflation like those being experienced today, there would be severe financial impacts felt by the state’s rental housing providers. But wait, there’s more…Senate Bill 567 would extend the rent “caps” under Assembly Bill 1482 to all single-family homes and condominiums that are at least 15 years old, whereas today, single-family homes and condominiums are exempt from state rent control unless held by certain types of corporate owners.

Senate Bill proposes many other harmful amendments to Assembly Bill 1482, including regulations covering owner move-ins, notification requirements for terminating tenancies, imposition of relocation assistance, and penalties for noncompliance.

Proposed Senate Bill 466

A new hearing date has been set for Senate Bill 466 which would impose strict rent control on single-family homes, condominiums, and newly constructed apartments in California. Senate Bill 466, authored by Sen. Wahab (D-Hayward), is scheduled to be heard by the Senate Judiciary Committee on April 11, 2023. The proposed bill would significantly alter the Costa-Hawkins Rental Housing Act, which today provides exemptions that prohibit local jurisdictions from imposing rent control ordinances on any type of housing built after 1995 or even earlier in cities that imposed rent control before 1995. Costa-Hawkins also exempts local rent control on single-family homes and condominiums of any age. Senate Bill 466 would eliminate these exemptions.

The Costa-Hawkins Rental Housing Act is a state law that places limitations on local rent control laws. These limitations include exempting from local rent control any residential rental properties that are single family homes, condominiums, or residential properties built after the earlier of: (i) 1995 or (ii)  after the passage of a local rent stabilization ordinance. In addition, Costa-Hawkins makes “vacancy de-control” the law in California, which is your right to establish the initial rental rate following a vacancy. Costa-Hawkins is again under attack by our state’s legislature through Senate Bill 466.

If this proposed change to Costa-Hawkins is passed by the Legislature and signed by Governor Newsom, more than likely there will be further attempts to revise or eliminate Costa-Hawkins entirely. Without Costa-Hawkins, local jurisdictions could pass ordinances that eliminate “vacancy de-control” which is your right to set rent at the market when there is a vacancy.

We cannot allow this proposed “chipping away” of the Costa-Hawkins Rental Housing Act. TELL OUR LEGISLATORS TO VOTE NO, OPPOSE THE PASSAGE OF SENATE BILL 466. Act NOW, act TODAY, and call and email the elected officials listed below. Senate Bill 466 will be voted on in the Senate Judiciary Committee on March 28, 2023 at 1:30 p.m. Let these Legislators know that:

• Local restrictions on rent increases for newer construction will force housing providers out of the rental housing business and only exacerbate the State’s housing shortages and lead to higher rental rates.
• Oppressive rent control measures under local regulations will discourage construction of badly needed housing developments. The State of California will never catch-up on developing new housing units and meeting demand.
• Urge a NO VOTE on Senate Bill 466. After the three years rental housing providers have been through, with challenging rent collections and moratoriums on increases, Senate Bill 466 is not the right approach to solve our State’s housing problems. Senate Bill 466 will only exasperate our housing crisis in California.

Contact These Legislators Today! Urge a NO VOTE on Senate Bill 466!

Call Into the Committee Meeting on April 11^th

If you wish to speak during the Senate Judiciary Committee Hearing on April 11^th while Senate Bill 466 is being discussed, please check the Committee's homepage the day prior to the hearing for teleconference information. The Committee’s homepage is at: CLICK HERE