California Announces Compromise on Statewide Cap of Rent Increases

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.