Legislative Update - House of Origin Deadline
The deadline for bills to pass their house of origin (legislative house in which they were introduced), was Friday, June 6th. Fortunately, the industry made a successful push to oppose AB 1248 (Haney) on the Assembly Floor and the bill was sent to the inactive file, which means that it is dead for the year.It is now a 2-year bill, eligible to move in 2026. 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. Although the author and sponsors amended the bill on June 2nd, the amendments did not address all industry concerns. For example, there was seemingly no provision for pass-through of government allowable costs such as RSO fees, capital improvement costs (e.g., seismic retrofitting), or taxes associated with public bonds. Furthermore, due to the “up-front” disclosure requirement, there is no provision for charging for services added in the future. Fortunately, holding AB 1248 on the Floor was a win for the industry the bill will be dealt with next year.
Here are other Floor outcomes of key legislation still moving this year:
Assembly Bill 246 (Bryan) - Social Security Tenant Protection Act - Prohibits a court from issuing a summons on a complaint for unlawful detainer (UD) that is based, in whole or in part, on nonpayment of rent or other charges, if the defendant experiences a loss of income during the pendency of a declared Social Security payment interruption. AB 246 passed to the Senate on a vote of 49-13.
Assembly Bill 306 (Schultz/Rivas) - Building Codes - This bill would impose a six-year moratorium on the proposal or adoption of new state building standards and modifications to building standards affecting residential units (new and existing) from June 1, 2025 until June 1, 2031, with limited exceptions. CalRHA has taken a support position on AB 306, which passed to the Senate 71-0.
Assembly Bill 863 (Kalra) - Residential Rental Properties: Language Requirements - Requires a landlord seeking to terminate a lease to provide the tenant with a notice in Spanish, Chinese, Tagalog, Vietnamese, or Korean, as well as in English, if the lease was originally negotiated in one of those languages, or if the landlord has been notified by the tenant that one of those languages is the tenant's primary language. CalRHA has taken an oppose position on AB 863, which passed the Assembly 50-17.
Assembly Bill 1240 (Lee) - Corporate Ownership - AB 1240 prohibits business entities that own more than 1,000 single-family residential properties from purchasing any additional single-family properties and leasing them out. CalRHA has taken an oppose position on AB 1240, which passed the Assembly 42-18.
Senate Bill 52 (Perez) - Rental Rate Algorithms - SB 52 restricts the use of rental pricing algorithms. Specifically, it bans offering such algorithms to competitors in the same or related market, prohibits knowingly using these algorithms, and forbids incorporating nonpublic competitor data into any rental pricing algorithm. CalRHA has taken an oppose position on SB 52, which passed the Senate 28-9.
Senate Bill 384 (Wahab) - Preventing Algorithmic Price Fixing Act: prohibition on price-fixing algorithm use - This legislation would ban the creation and employment of pricing algorithms that use the confidential, competitive data of rival companies. CalRHA has taken an oppose position on SB 384, which passed the Senate 28-10.
Senate Bill 436 (Wahab) - Right to Redeem Tenancy - SB 436 was amended on May 1, 2025 from a right to redeem tenancy bill to instead amend the 3-day pay or quit statute to a 14-day pay or quit. CalRHA opposes SB 436, which passed the Senate 26-10.
Senate Bill 522 (Wahab) - Housing: Tenant Protections - This bill excludes, from the exemption to California’s just-cause eviction protections for housing issued a certificate of occupancy within the last 15 years, housing that is built to replace a housing unit substantially damaged or destroyed by a disaster, as specified. Unfortunately, SB 522 will have the unintended consequence of discouraging the reconstruction of housing destroyed by disasters. CalRHA opposes SB 522, which passed the Senate Floor 27-10.
Senate Bill 681 (Wahab) - Housing - SB 681 is the Senate’s housing reform proposal, but does incorporate provisions that limit fees that rental property owners may charge tenants. For that reason, CalRHA has taken an oppose position on SB 681, which passed the Senate 28-10.
Select Committee on Housing Finance and Affordability
Speaker Robert Rivas announced the Select Committee assignments. Of note, the following members were appointed to the Select Committee on Finance and Affordability:
Assemblymember Anamarie Ávila Farías, Co-Chair
Assemblymember John Harabedian, Co-Chair
Assemblymember Patrick Ahrens
Assemblymember Juan Carrillo
Assemblymember Heather Hadwick
Assemblymember Alex Lee
Assemblymember Joe Patterson
Assemblymember Sharon Quirk-Silva
Assemblymember LaShae Sharp-Collins
Assemblymember José Solache
Assemblymember Greg Wallis
Assemblymember Lori Wilson
Remaining Legislative Calendar for 2025
June 15th - Deadline to Pass Budget Bill
July 18th - Policy Committee Deadline in Second House
July 18th - August 15th -Summer Recess
August 29th - Appropriations Committee Deadline in Second House
September 12th - Recess Begins
October 12th - Last Day for the Governor to Sign or Veto Legislation
