California Governor, Legislative Leaders Reach Deal to Limit Rent Increases

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Credits: Wikipedia

California Governor Gavin Newsom and the state’s legislative leaders reached an agreement on legislation to limit rent increases.

On Friday, Gov. Newsom, Senate President pro Tempore Toni Atkins, Assembly Speaker Anthony Rendon and Assembly member David Chiu agreed on a series of amendments to AB 1482 to provide strong protections for renters.

State leaders agree on a 5 percent cap on rent increases

The Governor and the legislative leaders agreed to limit rent increases at 5 percent plus inflation annually for ten years across the state. They also agreed to include a provision in the legislation requiring landlords to provide a reason before evicting a tenant.

Originally, Assembly member Chiu proposed in the legislation to cap rent increases at 7 percent plus inflation or 10 percent whichever is lower.

In a statement, Gov. Newsom and the legislative leaders said, “The high cost of housing and rising rents are preventing California families from getting ahead. These steep housing costs drive inequality and threaten to erode California’s economic growth.”