President's Message: Looking Ahead (July 2026)

By Adam Pearce, President, California Rental Housing Association

With two months remaining in the 2026 legislative year and the California Legislature heading into its summer recess, I wanted to take a moment to update our members on where things stand in Sacramento, the courts, and the ongoing work CalRHA is doing every day to protect California's rental housing providers.

Fighting Bad Bills in Sacramento

Since January, CalRHA has secured significant victories for our members and for the rental housing industry across California. Working alongside coalition partners—and, at times, serving as the lone voice defending smaller property owners—we have helped defeat or delay more than a dozen high-priority bills that would have imposed costly mandates, increased operational burdens, and expanded legal liabilities for housing providers.

Among the most significant victories for independent and small housing providers were:

- AB 1157 (Kalra)

AB 1157 proposed tightening California's statewide rent caps and expanding rent control to additional housing types by reducing the allowable annual rent increase to as little as 2% plus CPI, or 5%, whichever was lower.

Backed by organized tenant advocacy groups, the bill sought sweeping changes that would have weakened long-standing protections under the Costa-Hawkins Rental Housing Act and AB 1482.

CalRHA responded by launching a statewide public education campaign, mobilizing legislative constituents, and coordinating opposition with coalition partners. The effort was successful, and the bill failed to advance out of the Assembly Judiciary Committee.

- SB 1155 (Smallwood-Cuevas, Wahab) & SB 1243 (Durazo)

These bills would have restricted evictions and suspended late fees during federal government shutdowns and immigration enforcement actions, effectively shifting broader public policy costs onto private rental housing providers.

During CalRHA's 2026 Lobby Day, members participated in more than 100 meetings with legislators to advocate against these measures. Both bills ultimately died in committee.

- AB 2616 (McKinnor)

This legislation would have required rental housing providers to install air conditioning capable of maintaining indoor temperatures of 82 degrees Fahrenheit.

CalRHA highlighted the significant financial costs, implementation challenges, and legal liabilities associated with the proposal. Following these concerns, the author withdrew the bill from committee, preventing it from moving forward.

- AB 2609 (Caloza)

AB 2609 proposed limiting pet rent deposits to just 15% of one month's rent.

CalRHA argued that such a cap would fail to cover the actual costs of pet-related damage and apartment turnover. The bill failed to advance after its Assembly Judiciary Committee hearing was canceled.

- AB 1963 (McKinnor)

This proposal would have required housing providers to accept reusable tenant screening reports while imposing additional disclosure requirements.

CalRHA opposed the legislation because it increased opportunities for fraudulent rental applications and exposed smaller housing providers to unnecessary compliance risks and legal liability. The bill's hearing was canceled at the author's request.

- AB 2350 (McKinnor)

AB 2350 sought to eliminate flexible rent payment solutions that many California renters voluntarily use.

Working as part of a broad coalition, CalRHA argued that removing these options would leave renters with fewer affordable payment alternatives, potentially damaging credit scores and increasing the risk of housing instability. The author later announced the bill would not move forward.

- AB 1611 (Haney)

This bill proposed eliminating California tax deferral benefits for certain 1031 exchanges involving rental housing investments.

CalRHA maintained that the proposal would discourage reinvestment in rental housing and reduce future housing supply. The bill ultimately died in committee.

Advocacy That Delivers Results

These victories are the direct result of persistent advocacy, strategic coalition building, and members who consistently respond to calls to action and engage with legislators.

While the Legislature is in recess during July, our work is far from over. When lawmakers return in August, we will once again need our members' support to oppose harmful legislation during the final weeks of the legislative session.

Defending Property Rights in the Courts

Our advocacy extends well beyond the Capitol.

CalRHA continues to support property owners through strategic litigation, including filing and supporting amicus briefs that challenge government actions imposing unconstitutional burdens on rental housing providers.

Most recently, our affiliate, the Apartment Association of Greater Los Angeles (AAGLA), secured an important victory when the California Court of Appeal struck down a Los Angeles ordinance requiring rental housing providers to pay substantial relocation fees whenever lawful rent increases prompted tenants to voluntarily vacate rent-stabilization-exempt units.

The court ruled that the ordinance was preempted by the Costa-Hawkins Rental Housing Act.

At the same time, the court upheld a separate Los Angeles ordinance preventing housing providers from initiating eviction proceedings for nonpayment until a tenant owes more than one month's fair market rent. AAGLA has appealed that portion of the decision to the California Supreme Court, and CalRHA is leading efforts to support that litigation and other property owner cases through ongoing amicus participation.

Thank You for Your Support

None of this work would be possible without your membership, engagement, and continued investment in our association.

The rights of California property owners are worth defending, and this Independence Day serves as an important reminder of the freedoms and responsibilities we all share.

Thank you for staying engaged, responding to our calls to action, and supporting the important work we do on behalf of California's rental housing community. We also encourage members to consider supporting our Political Action Committee as we continue protecting the future of rental housing throughout the state.

Happy Independence Day, and thank you for standing with us.