CALIFORNIA – The Assembly Housing Committee voted 7-5, April 24, to advance Assembly Bill 1157, a new California measure that includes a permanent cap on rent increases to no more than 5% annually.
The current allowable increase is 10%. The bill also would extend the rent cap protection to single-family homes.
It moved to the Judiciary Committee which evaluates legal, civil, and judicial legislation.
Apartment association strongly opposes the bill
During the committee meeting, the California Apartment Association (CAA) testified against AB 1157, warning it would stifle housing development and discourage investment in rental housing.
“Rent control discourages new housing. It does not resolve supply [issues] and it exacerbates unaffordability,” testified CAA’s executive vice president of state public affairs Debra Carlton.
CAA said Carlton highlighted a decline in multifamily housing permits — from 60,000 in 2023 to just 30,000 in 2024 — following the qualification of Proposition 33. The 2024 prop is a failed ballot measure that would have authorized rent control.
‘Rates throughout rental market continue to rise rapidly’
AB 1157 proposes lowering the maximum allowable rent increase to either 2% plus the change in the cost of living or 5%, whichever is lower.
The bill would also permanently extend rent control protections to single-family homes.
Assemblymember Ash Kalra (D-San José) who authored the bill said although the passage of the original Tenant Protection Act was a major victory for tenant protection, rates throughout the rental market continue to rise rapidly and wages have not come close to keeping up.
“With existing law, rent can still increase by hundreds of dollars, renters in single-family homes are excluded from tenant protections, and it is set to sunset in a few short years,” said Kalra in a statement.
Assemblywoman Buffy Wicks warns bill could negatively impact housing production
During the meeting Assemblywoman Buffy Wicks, D-Oakland warned that AB 1157 could negatively impact housing production, according to the CAA.
Despite this, Wicks voted to advance the bill to its next committee, and called for extensive stakeholder engagement before enacting such a significant policy change.
