As housing shortages push low-income renters onto the streets and make it harder for middle-income residents to find affordable options, California lawmakers will ease high cost of living this year to prevent evictions introduced new measures for
Here are two bills to help landlords clear major hurdles, and one proposal that failed this week after Congress took action before a critical deadline on Friday.
Passed: Deposit Limitation
Congress briefly approved a bill banning landlords from charging more than one month’s rent as a security deposit.
San Francisco Democratic Rep. Matt Haney wrote: Congress Bill No. 12Soaring rents have made it increasingly difficult for landlords to pay security deposits, which can amount to up to three months’ rent and can be upwards of $10,000 in some cities. said.
“This means that in many parts of the country the security deposit could be the same amount as the down payment on a home,” Haney said before Congress approved the measure. “This has forced many families, including those on the minimum wage, to either forgo necessities such as food and utilities in order to obtain housing permits, or to borrow even more.”
Groups representing landlords opposed the measure, saying the lack of affordable housing units, not security deposits, is the real problem facing California renters, and AB 12 will hurt homeowners. claimed.
“Requiring a security deposit allows rental realtors to balance the risks associated with renting real estate,” says the California Rental Housing Association. wrote in the bill analysis. “Without the ability to collect sufficient security deposits to cover potential damages, rental estate agents may decide to remove their homes from the rental market, further exacerbating the housing supply crisis. .”
The bill will now be considered in the Senate, with a vote by September 14.
Passed: Eviction Suppression
In 2019, Congress scrambled to reach an agreement with landlords and realtors on a bill that would enact new rules against evictions and cap annual rent increases at 5% plus inflation.
But State Senator Maria Elena Durazo (D-Los Angeles) said those protections weren’t enough.Introduction of Durazo Senate Bill 567 This year, it will lower rent caps on inflation to no more than 5% per annum, as well as tighten scrutiny of allowable evictions to ensure landlords don’t exploit what they described as loopholes in the law.
Faced with pressure from business groups, apartment associations and moderate Democrats, Mr. Durazo later removed the rent cap clause from the bill. But his supporters urged maintaining accountability measures to ensure landlords don’t use evictions to evict low-wage tenants to later raise rents.
“We are all feeling the effects of the homeless crisis in our districts,” Duraso said at Wednesday’s bill debate. “One of the things we have to do is stop the trend of families and people becoming homeless.”
Duraso’s changes to the bill did little to appease opponents. Republicans and a few Democrats opposed the move, saying it was unfair and costly for homeowners.
“This bill will have the greatest impact on small rental property owners,” said Senate Majority Leader Brian Jones of Santee. “This bill goes a little too far.”
The bill narrowly passed the Senate and is now on its way to Congress.
Failure: Expanding Rent Management
Lawmakers this week rejected a proposal to give tenants more protection through expanded rent controls.
State Senator Aisha Wahab (D-Hayward) introduced Senate Bill 466 to update 1995 Law Restricting Rent Administration in California And allow some new buildings to be subject to price caps.
Holding up a sleeping bag, Wahab told the Senate plenary session on Wednesday, “Although it allows landlords to raise rents with impunity, it also allows jurisdictions to enact common-sense rent control policies.” Taxpayers will bear the cost of the problem, which could be mitigated if it were done.” As a prop for making a point about the worsening homeless crisis.
California voters twice rejected expanding rent restrictions in recent elections. Landlord groups, including the California Association of Apartments, argue that rent regulations hinder construction and prevent homeowners from bringing new units to the market.
The debate prevailed in the Senate Wednesday, where SB466 was defeated by a large margin as several Democrats withheld their votes or joined Republicans in opposing the bill.
It is unusual for the Democrats, who control Congress, to vote on a bill knowing that it will be rejected in order to highlight rifts within the ruling party. Wahab expects his bill to fall short, but he said it matters who goes on his record as his supporters.
“I think it’s important for supporters and activists to understand who’s working on the tough issues and who’s really interested in affordable housing,” Wahab said. “I thought it was really important.”