AB 1482 would apply rent control regulations through state. Photo by REVOLT on Unsplash.

AB 1482 would apply rent control regulations through state. Photo by REVOLT on Unsplash.

Democratic Assemblyman David Chiu’s new rent-capping bill, AB 1482, passed the California State Assembly on May 29, and it could have big implications for real estate owners. 

The bill, which passed 43-31, would limit annual rent increases on properties throughout California that are currently not covered by local rent control regulations. It is modeled after a similar law that was passed in Oregon this year.

The bill would also apply to single-family homes and condos in cities with rent control, except for newer construction under 10 years of age. Property owners with no more than 10 single family homes would be exempt.

If passed, Assembly Bill 1482 will prohibit real estate owners from raising the rent by more than 7 percent plus the rate of inflation (approximately 9.7% in Los Angeles). Current rent-controlled properties would not be affected. 

The California Apartment Association and the California Assn. of Realtors have been vocal opponents of the bill, saying that it would lower the incentive for developers to build housing in the state. Even if passed, the bill will expire in 2023.

Photo by REVOLT on Unsplash


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