Residential tenancies: rent control.
The bill is noteworthy for its potential to alter the landscape of rent control within California. By extending the rule allowing property owners to bypass local rent control measures for newer units, it could lead to increased rents in areas with high demand. Proponents argue that the bill is essential for encouraging new housing development and providing flexibility to landlords. However, this could simultaneously exacerbate housing affordability issues for tenants, particularly in urban locales where rent control is designed to protect low-income renters from steep rent increases.
AB36, introduced by Assembly Member Bloom, seeks to amend Section 1954.52 of the California Civil Code to modify current rent control laws applicable to residential tenancies. Specifically, it allows property owners of residential real estate to set initial and subsequent rental rates for dwellings that have been issued their first certificate of occupancy within 10 to 20 years prior to the owner's intention to establish rent. This is a significant change from existing law, which generally restricts local rent control measures based on the Costa-Hawkins Rental Housing Act, imposing limits on how much local jurisdictions can regulate rental prices on certain properties.
Public sentiment surrounding AB36 is mixed and largely follows partisan lines. Supporters, typically from the business and real estate sectors, believe that lifting restrictions on rent setting will promote more housing construction and investment in rental properties. On the other hand, critics—including tenant advocacy groups—argue that the bill undermines tenant protections. They express concern that loosening rent control measures will make housing less accessible, especially for marginalized communities already struggling in high-cost housing markets.
One of the contentious points of AB36 lies in its impact on existing tenants and the principle of local control over housing laws. Many detractors contend that the bill could lead to significant rent hikes, causing displacement in already vulnerable low-income neighborhoods. Additionally, the proposed modification of the Costa-Hawkins act is feared to create disuniformity in housing regulations across California, possibly leading to legal disputes and confusion over rent control policies. As a result, AB36 has emerged as a focal point for a broader conversation about housing policies and the balance of power between state and local governments in addressing housing crises.