California Governor Gavin Newsom announced a compromise on proposed legislation to cap rent increases statewide and ultimately address the housing crisis. The following is a summary of key takeaways:
- The proposed bill (AB 1482) still needs to clear the legislation by September 13, however, if passed it would cap annual rent increases at five percent plus inflation, with a ten percent maximum increase.
- The bill includes a ten-year sunset so if passed it will not be up for discussion again until 2030.
- The exemption for new construction has changed from those built within the last ten years to those built within the last 15.
- Cities are still free to enact new, stricter forms of rent control under the Costa-Hawkins guidelines.
- The 2020 rent control ballot measure will still move forward, regardless of the passage of AB 1482.