Cap on rent hikes passes in Assembly

SACRAMENTO — A bill to protect Californians from spiking rents narrowly passed the Assembly on Wednesday, after a last-minute deal to scale back the proposal.

Assemblyman David Chiu, D-San Francisco, agreed to make amendments in the Senate, where AB1482 heads next, to reflect changes requested by the California Association of Realtors.

Under the deal, the measure would limit annual rent increases to 7 percentage points above the regional change in the cost of living, rather than the 5 percentage points plus inflation that Chiu originally proposed. He said would have preferred a lower rate, but “this is the political process.”

Assemblywoman Buffy Wicks, D-Oakland, called it “a very moderate measure that will guard against some of the more egregious practices that we’re seeing.” The bill passed 43-28, two more votes than it needed to clear the 80-member house.

The deal with the Realtors includes a second measure, AB1481, by Democratic Assemblymen Tim Grayson of Concord and Rob Bonta of Alameda, which did not come up for a vote Wednesday.

It would require landlords to provide a just cause when evicting a renter. Examples include a tenant failing to pay rent, breaching a rental agreement, creating a nuisance or engaging in criminal activity.

But with the proposed changes, it would not kick in until a tenant has been in a rental for a year. Renters evicted through no fault of their own, such as when a property is taken off the market, would receive relocation assistance equivalent to one month of rent.

Both the rent-cap and eviction bills would exempt housing built within the past 10 years and those controlled by landlords who own 10 or fewer single-family homes. They would also expire in 2023, although lawmakers could renew them.

The authors had already amended their bills last week in an effort to blunt opposition from landlords and the business community, but they struggled to secure enough support for the measures on the Assembly floor.

Business groups argued that limiting how much landlords can charge for rent discourages housing construction. They also asked for “stability” provisions that would prevent the Legislature from quickly revising the renter protections.

Debra Carlton, senior vice president of public affairs for the California Apartment Association, which represents owners and developers of rental properties, said last week that without legislation to make it easier to build more housing, her organization was unlikely to support a deal on a rent cap and just cause for evictions. She pointed to SB50 by state Sen. Scott Wiener, D-San Francisco, which was shelved in committee earlier this month, as an example of something the Legislature should pass but won’t.

“That’s what’s challenging for us — they’re not moving on any bills to speed up housing production,” Carlton said.

Her argument held sway with opponents of AB1482 such as Assemblywoman Melissa Melendez, R-Lake Elsinore (Riverside County), who said the bill would “harm the very people that need the help the most.”

“You can say it’s not rent control all day long, but it is. And you know it is,” she said.