News Alert: Proposed Senate Bill 466 Advances to Senate Floor

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Proposed Senate Bill 466 Advances to Senate Floor

Senate Bill 466 is an Attack on Property Rights

Despite valiant efforts made by rental housing providers throughout California, including tens of thousands of emails and phone calls, the Senate Judiciary Committee approved this past Tuesday various amendments to Senate Bill 466, which now advances to the Senate floor and possibly onto the Assembly for further review.

Senate Bill 466 would eliminate many of the protections property owners now have have under the Costa-Hawkins Rental Housing Act of 1995 (Costa Hawkins). Costa Hawkins exempts properties constructed after 1995 (or following an earlier date if local rent control went into effect prior to 1995) from local rent control. Costa-Hawkins also exempts from local rent control any single-family home or condominium of any age. Senate Bill 466 would eliminate these exemptions.

Following Tuesday’s Senate Committee meeting, the following amendments were adopted:

  • Exemptions from local rent control of single-family homes and condominiums remain.
  • After 28 years, previously exempt from rent control rental properties with 5 or more units will become subject to local rental control laws. For example, starting in 2024, properties that were constructed and issued a certificate of occupancy in 1996 will fall under local rent control laws (and 1997 properties in 2025) only if local jurisdictions choose to include those properties.
  • Exemptions from local rent control for properties with up to 4 units and for accessory dwelling units (ADUs) from the so-called “rolling 28-year period” described above are being given. In other words, a 4-unit rental property built in 1996 would not fall under a local jurisdiction’s rent control law.

Despite this temporary setback, do not give up. Look out for further updates as this horrendous bill progresses and BE READY to take action. As we standby and wait for the next hearing on Senate Bill 466, please call your representative in the State Senate and ask that he or she VOTE NO on S.B. 466.

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