This measure would reduce the annual allowed rent hike to 2% plus inflation, reducing it by up to 5%. The owner said it would discourage the new home.
California’s latest law to lower statewide rent control caps and increase tenant protections was drawn by the author on April 29th.
The California Apartments Association, representing more than 13,000 members, welcomed the news.
Thousands of rental housing providers wrote letters to lawmakers, and over 150 people came to the Capitol to directly oppose the bill, according to the association.
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“Their voice, combined with the strategic advocacy of the government affairs team, played a key role in stopping this damaging law,” Bannon said.
Kara’s rent control bill was passed last week by the Congressional Housing and Community Development Committee. Under this law, state annual rent hiking caps increase by up to 5% inflation from 5% inflation that cannot exceed 10% per year, up to 5% annually.
Kara, a Democrat in San Jose, also included provisions that would make the state’s tenant protection law permanent. When the original rent management law was enacted six years ago, there was a 10-year limit.
State law allows cities and counties to impose lower caps.
According to lawmakers, 35 cities and counties have passed different rules to stabilize rents. Kara said she created the “hodgepodge” of the law.
The state’s rental share is outweighed by the New York rental market, which houses 46% of the population, according to the Californian nonpartisan think tank Public Policy Institute.
Kara’s proposed law would remove the state’s existing exemptions for single-family homes and make them subject to rent caps.
San Diego renter Tammy Alvarado told committee members that she and her family would rent a detached house that is not covered by the state rent control laws.
“That seems so unfair,” Alvarado said.
The house will be rented in Los Angeles on March 15th, 2022. Mario Tama/Getty Images
California’s Apartments Association (a statewide trade group for apartment owners, investors and developers) is opposed to the measure.
Citing from the legislative analysis of the bill, Debra Carlton, executive vice president of the association, said:
She added that if a lower limit is currently passed, detached homeowners who currently rent property to their families cannot do so.
Available homes in Los Angeles on February 1, 2017. Justin Sullivan/Getty Images
This proposition aims to abolish state laws prohibiting rent control for single-family homes and apartments completed after February 1, 1999.
