The good folks at the California Association of REALTORS (C.A.R.) have sounded the alarm bell. They are urging all California REALTORS to call their state representatives and tell them to VOTE NO ON AB 1482. They have also asked that we REALTORS ask our clients to do the same. I recorded a quick episode of Seb Frey TV so you can all see just how easy it is to call your Senate and Assembly representatives.
Contact Info for some Local Politicians
State Senator Bill Monning: (916) 651-4017
State Senator Anna Caballero: (916) 651-4012
State Senator Bob Wieckowski: (916) 651-4010
State Senator Jim Beall: (916) 651-4015
State Senator Jerry Hill: (916) 651-4013
Assemblyman Mark Stone: (916) 319-2029
Under current law, unless a local government has enacted rent control, there is no statewide cap on rent. Additionally, current law allows landlords to end a tenancy without cause when a lease expires. That is to say, when a tenant’s lease is up, the landlord can ask them to move out, for the only reason that it’s because the contract has ended.
As introduced, AB 1481 and AB 1482 – previously combined into one bill, AB 1482 – would have established a rent cap of 5% plus regional CPI, as well as “just cause” evictions after 6 months of tenancy, through 2030 on all rental properties; required relocation assistance up to 3 months when a tenant is evicted under specified conditions (that is, the landlord pays the tenant to move out); and included insufficient vacancy decontrol language.
C.A.R. had negotiated with our government to soften 1482 into a bill that the REALTORS could accept. C.A.R. reached a deal with the author and the sponsors that AB 1482 would have established a rent cap of 7% plus regional CPI, as well as “just cause” evictions after 12 months of tenancy, through 2023; limited relocation assistance to 1 month when a tenant is evicted under specified conditions; exempted single-family homes owned by a natural person, an LLC, or in a trust; and contained sufficient vacancy decontrol language. As proposed to be amended contrary to our agreement, the bill would revert back to its original rent cap of 5% plus regional CPI and last for a decade until 2030.
Boost Your Home's Value by up to $50/sf - or more!
Want to know what you need to do to boost your home's value by up to $50/sf - or more? Request a professional, free room by room review and get a report showing what you'll need to do in each room to dramatically increase your home's sale price. OK Sign me Up!
Why C.A.R. is OPPOSING AB 1482
- AB 1482 negatively impacts small property owners. For example, the bill does not allow for “pass throughs” for repairs, such as a broken HVAC system or leaky roof. A small property owner has no way to offset these repair costs and is unable to absorb such costs under such restrictive rent caps. As a result, small property owners may decide to their pull units off rental the market rather than be forced to limit rents to such a degree. Small property owners will also be discouraged from entering the rental market, leaving a greater concentration of ownership in the hands of large corporate entities.
- AB 1482 discourages the creation of rental housing. Establishing restrictive rent caps and “just cause” eviction standards creates a disincentive for developers to build rental housing.
- AB 1482 doesn’t address the core cause of the housing affordability crisis, which is the lack of supply. As other legislation designed to increase the housing supply languishes in the Legislature, AB 1482 not only doesn’t increase the supply, it discourages the provision of rental housing.
- AB 1482 does NOT prevent local jurisdictions from enacting rent control, contrary to what others are saying.
- Talking AB1482 on the Radio October 30, 2019
- Stop the Madness! Just say NO on AB 1482 September 9, 2019
- 2019 Mid-Year Real Estate Update for Santa Clara, Santa Cruz, and Monterey July 11, 2019
- Silicon Valley Real Estate Prices Drop Sharply in Q1 2019 April 17, 2019
- Senator Scott Wiener Talks SB50 April 10, 2019
Top Posts & Pages
- Selling a Home in 2019 vs. 2020
- Property Tax Rates for Santa Cruz Real Estate
- 2019 Mid-Year Real Estate Update for Santa Clara, Santa Cruz, and Monterey
- Just Cause Evictions in Santa Cruz
- California 2019 Real Estate Forecast
- The Anchoring Effect and Asking Price in Real Estate
- Santa Cruz Median Home Price hit $920K in March
- Release of Contingencies