California Statewide Rent Control Bill Passed

The governor is set to sign and enact Assembly Bill 1482 within a few weeks which means landlords will be limited to raising rent to no more than 5% plus local inflation, which in California is 2.5% on average. The bill is now sitting on Gov. Gavin Newsom’s desk and he has said he will sign it. The bill would take effect January 1st, 2020 and expire in 2030 unless it is extended.

California Statewide Rent Control Bill Passed

What you need to know

The bill will affect cities that don’t already have rent control ordinances and expand it to those that do.

If your apartment building is at least 15 years old and in a city where rent control does not yet exist, you will most likely be affected.

This statewide rent control will be applied mostly to apartments and multi-family homes. Condos and single-family homes would be exempt except if owned by real estate investors or corporations. Owner occupied duplexes would also be exempt.

Landlords and owners cannot exceed a 5% plus local inflation rent increase within 1 year. The increase cannot exceed a total of 10%.

The rate of inflation would be tied to the Consumer Price Index in each metro area. For example, in LA County, it averaged 2.5% from 2001-2018.

The cities and areas that are already under some sort of rent control ordinance include the cities of Santa Monica, West Hollywood, Beverly Hills, Culver City, Inglewood and LA. The unincorporated neighborhoods of Los Angeles County are also under rent control ordinances.

If the property you own is already under rent control, AB1482 would not override local rent control but would expand on units that are not covered. An example would be the city of Los Angeles which only applies to multi-family buildings constructed before 1978. This state-wide rent control bill would cover additional buildings built between 1978 through 2005.

There is also an important provision in this bill that would end the ability to evict tenants without giving an explicit reason, otherwise known as having to have a “just cause” to evict a tenant. Just cause reasons would include failure to pay rent, violating the terms of the lease or committing a crime on the property.

For complete information on the bill, please read AB 1482