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C.A.R. Red Alert – Restrictive Rent Caps

UPDATE: Assembly Passes AB 1482

The measure, described below in the Red Alert, now goes to the California State Senate.

AB 1482, which caps annual rent increases at seven percent plus inflation, passed just before a key deadline earlier this year. Its companion bill, AB 1481, which would have barred baseless evictions, faltered and disappeared without a vote.

Now Assemblymember David Chiu, author of AB 1482, is essentially combining the two with newly amended bill text:

This bill would, with certain exceptions, prohibit an owner of residential property from terminating the lease of a tenant that has occupied the property for at least 12 months without just cause, as defined.

The bill would require, for certain just cause terminations that are curable, that the owner give a notice of violation and an opportunity to cure the violation prior to issuing the notice of termination. The bill would require, for no-fault just cause terminations, as specified, that the owner assist certain tenants to relocate, regardless of the tenant’s income, by providing a direct payment of one month’s rent to the tenant, as specified. […] The bill would repeal these provisions as of January 1, 2023.

In this case, a “just cause” means failure to pay rent, “substantial breach of a material term of the rental agreement, […] refusal, by the tenant to sign a new lease that is identical to the previous lease, after the previous lease expired,” illegal conduct, damage to the unit, and similar complaints, according to Curbed.

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Urge Your Representative to Vote NO

on AB 1482 and AB 1481 that Establish Restrictive Rent Caps and “Just Cause” Evictions

C.A.R. OPPOSES UNLESS AMENDED

C.A.R. has been negotiating in good faith with the bills’ authors in an attempt to make reasonable amendments to both bills, thus removing C.A.R.’s opposition. As of now, those negotiations have stalled. As a result, C.A.R. OPPOSES both AB 1482 (Chiu), which creates a very restrictive statewide rent cap, and AB 1481 (Grayson and Bonta), which establishes statewide “just cause” evictions.

Action Item

Contact Your Assembly Member

Call 1-800-798-6593; Enter Your PIN Number <NRDS ID> followed by the # sign to be connected to your Assembly Member’s Office.

When connected, please urge your Assembly Member to Vote NO on AB 1482 and AB 1481 because they discourage rental housing in California.

Also, if you use Twitter™, please Tweet the following:

Rent caps as restrictive as those required by #AB1482 will only discourage rental housing and make our #housingcrisis worse. Please vote NO, <insert legislator Twitter handle>. #CALeg

Assembly Member PIN Number Twitter™ Handle
James Ramos 3040 @AsmJamesRamos
Chris Holden 3041 @ChrisHoldenNews
Blanca Rubio 3048 @Blanca_E_Rubio
Freddie Rodriguez 3052 @AsmRodriguez52
Ian Calderon 3057 @IanColderon

Issue Background

Under current law, unless a local government has enacted rent control, there is no cap on rent. Additionally, current law allows rental property owners to end a tenancy without cause. AB 1482 establishes a rent cap of 5% plus regional CPI on all residential rental properties, except rent-controlled and deed-restricted units. AB 1481 prohibits a rental property owner from terminating a lease without “just cause,” and requires a property owner to provide relocation assistance to tenants for “no-fault” evictions.

Why C.A.R. is OPPOSING AB 1482 and AB 1481
Both bills discourage the production of rental housing. Establishing rent caps that are this restrictive and forcing landlords to demonstrate cause to evict a tenant creates a disincentive for developers to build and property owners to offer rental housing in California.

Neither bill addresses the core cause of the housing affordability crisis, which is the lack of supply. As other measures designed to increase the housing supply languish in the Legislature, AB 1482 and AB 1481 not only don’t increase the supply, they discourage those who develop and provide rental housing from doing so.

Both bills greatly harm small property owners. A property owner who owns even one unit could be severely affected by these bills. As a result, small property owners may decide to pull their units off the market rather than be forced to drastically limit rents.

For More Information Please contact deannk@car.org.

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Urge Your Senator to Oppose Legislation that Forces Landlords to Participate in Section 8!

5/21/19

C.A.R. OPPOSES SB 329 (Mitchell) because it effectively forces ALL residential rental property owners to participate in the voluntary Section 8 housing program by entering into a legally binding contract with a government agency – the provisions of which may be extremely difficult to fulfill. SB 329 will be considered as soon as TODAY on the Senate Floor.

Action Item

Call your Senator TODAY!
Urge a NO Vote on SB 329!

Call 1-855-215-0152

Enter your NRDS ID or PIN number 
followed by the # sign to be connected to your legislator’s office.

When staff answers the phone, you can use the following script:  
“Hi, this is (insert your name). I’m a REALTOR® from your district. Please ask the Senator to Vote No on SB 329. Don’t force rental property providers into contractual obligations that they may not be able to meet.”

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Support the Real Estate Industry

 

GetInvolved

Click here!

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The REALTOR® Action Fund (RAF) and REALTOR® Political Action Committee (RPAC) are lobbying against laws that hurt the real estate industry and make home ownership less affordable for clients.

CVAR is urging members to do their part to fight upcoming legislation that could devastate the California real estate industry.

The work that RAF and RPAC do includes raising and spending money to educate and elect candidates who understand and support issues that are important to our industry. We know that REALTORS® can make a difference. Each year CVAR sends REALTOR® members who support RAF to Sacramento to Legislative Day, sponsored by C.A.R., to meet and educate our legislators about issues impacting real estate.

“California REALTORS® cannot afford to ignore what occurs in the halls of government because Real Estate is one of the most regulated industries at the local, state and federal level,” according to C.A.R.

Support the fight for legislation that helps YOU do business–and your clients get into homes!

CVAR Members Are Making a Difference in Sacramento

 

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