26 Sep AB 1482 – What Does It Mean for California?
It‘s been a few weeks now since it was announced that AB 1482 has officially passed the State Senate, becoming law in California, but the big question is now that it’s passed what does this bill really mean for California?
In this article, we will provide you with more information about AB 1482 and insight into how this rent control bill will affect the rental market in the Golden State.
About AB 1482
After months of contentious negotiations between landlord and tenant groups, our elected officials in California finally reached an agreement on the specific language of AB 1482. This anti rent gouging bill will include the following:
- Caps rent increases at 5 percent plus the consumer price index
- Does not prevent deregulation of vacant units.
- Cities cannot implement rent hike caps lower than 5 percent
- The 10-year sunset clause creates certainty for multifamily investors and lenders.
- Limits rent hikes on units that are at least 15 years old
- Owners who share a home with their tenants or owner-occupied duplexes would be exempt from the caps.
- Keeps Costa Hawkins in place, at least for now…
- Expires automatically in 2030
Controversial
Although AB 1482 was supported at the last minute by the California Apartment Association (CAA), this bill was opposed by the California Association of Realtors (CAR).
Will AB 1482 be bad for California? That depends on whom you ask.
The reality with the housing crisis in California is that this rent control bill doesn’t do anything to encourage the construction of more housing in the state and until that problem is solved California’s housing crisis will always be a supply vs. demand problem.
Sadly, in spite of California now having “de facto” rent control in the state, many tenants rights groups statewide feel that the bill doesn’t do enough to protect tenants and they are supporting tougher rent control measures statewide like Proposition 10, which was voted down by voters last year.
Contact MW Real Estate Group
To learn more about rent control in California, or to speak with us about our property management services, contact us today by calling (213) 927-2117 or click here to connect with us online.