Political Update - Pro Tem Elect, Monique Limon, to Take Helm November 17th
It was anticipated that Pro Tem Elect, Monique Limon (D-Santa Barbara) would be replacing Pro Tem Mike McGuire in January. However, that timeline moved up to November 17th during the final days of the legislative session.
Legislative Recap
Throughout the year, we were able to stop many problematic bills, some of which were held in policy and fiscal committees, while others we were able to stop on the Floor.
Final Floor Fight Wins
During the final days of session, we prevented 522 (Wahab) - Just Cause for Rebuilds after Disasters, from being taken up on the Assembly Floor. This was a high priority tenant protection bill that our affiliates effectively engaged in over the summer recess. Another bill that we were able to successfully stop on the Floor was AB 1018 (Bauer Kahan) - Automated Decision Systems which was sent to Inactive on the Senate Floor. AB 1018 would have regulated the development and deployment of automated decision systems, many of which are used in the rental housing space.
Bills on the Governor’s Desk
One priority oppose bill made it to the Governor’s desk, AB 628 (McKinnor) - Habitability: Stoves and Refrigerators. This bill makes a dwelling that substantially lacks a stove or refrigerator that is maintained in good working order and capable of safely generating heat for cooking or safely storing food untenantable. We have submitted a veto request and will know by October 13th whether the bill is signed or vetoed by Governor Newsom.
Another bill of interest pending on the Governor’s desk is AB 246 (Bryan), the Social Security Tenant Protection Act of 2025. The Act authorizes a tenant of residential real property to assert Social Security hardship as an affirmative defense in an unlawful detainer proceeding based on the nonpayment of rent. Finally, AB 1414 (Ransom), allowing for an opt-out of landlord-tenant internet service, is pending at the Governor’s desk, with both the National Apartment Association and the California Rental Housing Association opposed.
With regard to bills CalRHA opposed and stopped in the first house or in policy committee this year, those include:
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Assembly Bill 1157 (Kalra/D, San Jose) - Just Cause and Rent Caps, which would have significantly altered the existing just cause and rent cap provisions established under AB 1482, the Tenant Protection Act of 2019.
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AB Bill 1240 (Lee) - Corporate Ownership has become a two-year bill, parked in the Senate Judiciary Committee.
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AB 1248 (Haney) - Rental Fees failed in the Assembly on the Floor, where it was sent to inactive. AB 1248 would have limited the fees that a rental property owner could charge in addition to rent and have required those fees to be included in the rent and not charged as a separate fee.
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SB 436 (Wahab) - Right to Redeem Tenancy, which would have changed the 3-day pay or quit statute to a 14-day pay or quit, died in the Assembly Judiciary Committee. Although granted reconsideration, the bill was not set for a second hearing.
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SB 681 (Wahab) - Housing, the Senate’s housing reform proposal, which included provisions that limit fees that rental property owners may charge tenants which failed to get a hearing in the Assembly Housing Committee and now is a two-year bill.
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SB 789 (Menjivar) - Vacancy Tax - SB 789 would have required a person that owns commercial real property to register with the California Department of Tax and Fee Administration (CDTFA) and annually file an information return to report specified vacancy information, and (2) subject late and unfiled returns to a penalty of $100 per commercial property.
We had many price related and other bills that we opposed that failed in or were fixed in the Appropriations Committees, including:
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AB 380 (Gonzalez) - Price Gouging - DEAD
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AB 878 (Kalra) - Reasonable Accommodations for Victims of Domestic Violence - DEAD
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SB 36 (Umberg) - Price Gouging: State of Emergency - NARROWED TO REMOVE GEOGRAPHIC EXPANSION
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SB 52 (Perez) - Rental Rate Algorithms - DEAD
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SB 384 (Wahab) - Preventing Algorithmic Price Fixing Act - DEAD
Several bills we were able to negotiate amendments on in order to go neutral, including:
AB 414 (Pellerin) - Security Deposits - Amendments were agreed upon, to allow for mutual written agreements for alternative methods of refunding security deposits, clarify that the itemized statement can be provided by email or first-class mail upon mutual agreement, and account for managing security deposit returns when multiple adult tenants reside in a unit.
AB 863 (Kalra) - Residential Rental Properties: Language Requirements - Instead of requiring a landlord to provide the tenant with a notice in Spanish, Chinese, Tagalog, Vietnamese, or Korean, as well as in English. Amendments were taken to instead have the Judicial Council create a summons containing the languages and make it available on their website.
SB 262 (Wahab) - Prohousing Local Policies - This bill adds additional local policies related to housing stability, and homelessness as pro-housing policies that the Department of Housing and Community Development (HCD) can consider in developing a pro-housing designation. We were able to have rent stabilization ordinance, funding for legal services for eviction defense and eviction prevention, as well as tenant protections amended out of the bill.
All three bills are pending on the Governor’s desk.
All in all, it was a successful year for CalRHA as we continue to advocate in the State Capitol, build key relationships with Legislators and the Administration, and represent the rental housing community in Sacramento and at the local level. The engagement by our members with their own representatives helped drive the success of the organization this year on the legislative front.
