AB 1482 (Chiu) creates a very restrictive statewide rent cap and burdensome “just cause” eviction standards. The California Association of REALTORS® opposes AB 1482 unless amended.
AB 1482 negatively impacts small property owners
The bill does not allow for “pass throughs” for substantial 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.
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.
Policies That Increase The Housing Supply
SB 50 (Sen. Wiener): Housing Development Around Transit
Encourages the development of mid-rise, multi-family unit, housing construction around major transit hubs and employment centers. Provides developers with a “height density bonus” in exchange for a percentage of deed restricted affordable units. Exempts historic districts and most of the coastal zone.
SB 330 (Sen. Skinner): Housing Accountability
Creates certainty for developers constructing new housing units, if the development is consistent with local planning, zoning and design requirements. Streamlines the local permitting process for 5 years in cities with more than 5,000 residents and where rents exceed 130% of the national average.
SB 592 (Sen. Wiener): Housing Accountability
Holds local governments financially accountable for approving the construction of a second unit (i.e. granny flat, accessory dwelling unit, etc.) if it is consistent with local planning and design requirements.