State Assembly Caps Rent Hikes, but Relief Weakened

2019 Editions July More News Real Estate

By Matthew Reagan

The state Assembly continues to struggle to come up with strong tenant protections.

Assembly Bill (AB) 1481, which sought to protect tenants from being evicted without “just cause” was recently allowed to die without being put to a vote.

AB 1482, a bill to protect tenants against steep rent hikes, cleared the Assembly on May 29, but not before several last-minute alterations were made that weakened its provisions.

For example, the original AB 1482 limited rent hikes to 5% a year plus inflation for the next 10 years. The final version of the bill that passed the Assembly allows rent hikes of 7% a year plus inflation and ends after three years. The final Assembly version also exempts landlords from the rent hike limits if they own 10 or fewer single-family homes; it also exempts developments built in the past 10 years. The changes were made in response to opposition to the bill by the California Association of Realtors.

Assemblymember Wendy Carrillo, (D), who represents Northeast Los Angeles co-authored AB 1482 and voted for the watered-down version. The bill is “a step in the right direction” to give renters “the needed protections they deserve,” Carrillo told the Boulevard Sentinel.

The action on AB 1482 now shifts to the state Senate. State Senator Maria Elena Durazo, who represents NELA, told the Sentinel she supports renters’ protections but did not indicate how she would vote if AB 1482 makes it to the Senate floor.

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