Under AB 1482, starting in January, landlords and owners of multifamily buildings not built within the last 15 years, as well as big corporations and institutional investors that own condominiums and single-family homes, won’t be allowed to increase rent by more than 5% plus inflation a year.
Landlords will also need to provide “just cause” to evict tenants. The rent cap law will expire in 10 years.
“About a third of California renters pay more than half of their income to rent and are one emergency away from losing their housing,” Newsom said Tuesday at an event in Oakland.
“One essential tool to combating this crisis is protecting renters from price-gouging and evictions.”
The other renter protection bills Newsom signed include prohibiting landlords from discriminating against tenants and military veterans who use Section 8, Veterans Affairs Supportive Housing or other housing assistance vouchers, and landlords have to give 90 days’ notice to a tenant before imposing rent increases of more than 10%.
"The bills signed into law today are among the strongest in the nation to protect tenants and support working families," Newsom said.
The signing comes a year after residents voted against Prop. 10, which would have repealed the Costa-Hawkins Rental Housing Act that limits rent control, and during a time when the state is experiencing a severe housing crisis, alleviated the high cost of living and rising rents.
California joins Oregon and New York in passing some sort of rent control measure to limit the amount landlords can hike rent. This is part of a much larger tenants rights' movement happening worldwide.
Rent control advocates say a combination of low wages and lack of affordable housing in big cities across California is forcing many people to be evicted and is leading to the state’s homeless crisis.