UPDATE 4/7/17: Legislators have decided to make AB 1506 into a two-year bill, and will be tabled for the rest of 2017. Click here for more information.
A California Assembly Bill was introduced two weeks ago that would repeal the Costa-Hawkins Act. The bill, AB 1506 (BLOOM), would devastate the rental industry by allowing local governments to control your rental rates. Although this bill is in the early stages, we encourage you to call your local Assemblymember and voice your opposition when it is presented on the assembly floor.
Introduced by Assemblymembers Richard Bloom (D-Santa Monica), David Chiu (D-San Francisco), and Rob Bonta (D-Alameda) and co-authored by State Senator Ben Allen (D-Santa Monica), AB 1506 aims to repeal the Costa-Hawkins act which currently prevents cities and counties from adopting extremely restrictive rent control policies, such as:
- Regulating initial rental rates and rates established after a change in tenancy
- Rent controls on newly constructed housing built after 1995
- Rent controls on single-family homes
The Costa-Hawkins Act was adopted in 1995 to curb extreme rent control, enabling property owners to raise rents on vacant units during a time where strict rent control laws were in place across California. AB 1506 would heavily affect the rental housing industry as it encourages local government to control rental rates and evictions.
“We have consistently supported increasing rental supply and affordable housing. We want to provide more rental housing, not stand in the way of new or rehabilitated housing stock” according to the Apartment Association of Orange County who is opposing this bill.
Alongside others within the rental industry, we urge you to contact your local Assemblymember and ask them to vote NO on AB 1506 when it is taken up on the assembly floor. Click here to find your California Representative.
Let us know what you think about the bill in the comment section or by tweeting us @ApplyConnect and share with your California colleagues on social media.
11 Replies to “URGENT: California Municipalities Might Enact Rent Controls with AB 1506”
Don’t believe tenant advocates who say rent control works. It doesn’t. Long Beach is still without it and is by far the most affordable beach city in the Southland.
This new attack on housing providers (AB1506) is potentially disastrous. It could mean that all rental decisions are taken out of the hands of housing providers. Where would be the incentive to provide housing if you can’t make decisions about your own property?
Tenant advocates appear to think that providing housing is easy. They don’t understand that the vast majority of landlords do not want to evict tenants. They only do so in extreme circumstances. A landlord can lose 3 months or more of rent in an eviction and suffer damage to the property from the rage of the bad tenant. Yes, the landlord has recourse but that costs further financial output, and collecting unpaid rent is extremely difficult. When providers have good tenants, they like to keep them. You don’t keep good tenants with unreasonable rent raises. Most providers like to keep their properties in good repair because then they can charge more rent when a new tenant signs a lease. If a property falls into disrepair, good tenants do not want to lease or stay. But if the provider is not getting sufficient rent to keep the property in good repair and cannot charge more for a rehabilitated property, where is the incentive to keep the property in good repair? Instead, everything will be done to minimum standards.
We all know that there are bad landlords. There are bad players in every walk of human life. Most landlords are decent, honest, good providers. Do not take away the incentive from housing providers by taking away their right to run properties the way they think best. You will be left with run down properties and providers who will do the least they can for the tenants.
Thank you for your insight. I agree that rental controls are not the solution to the affordable housing shortage, and this bill will significantly reduce the incentives property owners have to become landlords. If you know any other California landlords, please spread the word!
I own a triplex in Los Angeles. I am not rich. I am a school teacher who works hard to maintain my 1930’s triplex. I am a decent, hardworking person trying my best to be an excellent landlord, but it’s difficult to keep up an old building when prices on everything are raised every year. A handyman costs more per hour than I make in two hours as a teacher! I have wonderful, happy tenants who have lived in my building for many, many years paying way below market rent. My only hope is that one day if one of them moves out, I can get market rents and not have to worry about how I will keep up. I am strongly opposed to AB1506 and am devastated that you would even think of proposing this. This will be devastating to me. I’ve worked my whole life as a teacher, been involved in my community, volunteered in the neighborhood my triplex is in, and I am relying on a little extra income to help me in my retirement. This is unAmerican! Please reconsider! Should AB 1506 pass I’ll be forced to sell my triplex and the new buyers moving into Echo Park are all corporate with little interest in my beloved neighborhood! They couldn’t care a less about the tenants like I do!
Wow! Your handyman costs are outrageous!
While assemblymembers like Richard Bloom (Santa Monica) and David Chiu (San Francisco) have already established that they are in favor of AB 1506, other assemblymembers are not set in stone. In order to strike this bill down, ask your assemblymember to vote NO on AB 1506.
The County of Los Angeles has tons of assembly representatives and I’m sure your experience can sway them.
Here’s how to find your representative: http://findyourrep.legislature.ca.gov/
The bill will most likely get approved in Housing and Community Development Committee as there are total seven sitting members. Five of them are Democrats included Bloom and Chiu, the bill authors. My source told me that the bill will eventually get voted on the floor. Although this is not a partisan bill, most Democrats will support it. The worst case will be all Democrats voting yes, a 2/3 supermajority vote, then Governor Brown can’t even veto the bill. Another hearing will be scheduled in Sacramento on 3/23. Some of my SF friends will go protesting. By the way, I attended the town hall in LA on this Friday. There were more tenants demanding affordable housing than quiet landlords. Every landlord and clear-minded tenant need to contact their district representatives and urge them to vote no.
Thank you for the update!