Rent control: local ordinances: residential units.
If enacted, AB 1791 could significantly impact the landscape of residential rental housing in California. The bill proposes a $500 annual fee per residential unit owned by affected businesses, with the revenue intended for the development of affordable housing. Additionally, the legislation mandates that the Franchise Tax Board collect and administer these fees, while county assessors will be required to report on the number of residential units these businesses own. This could lead to higher accountability and transparency regarding the housing inventory managed by large corporations, thereby promoting the retention and development of affordable housing options.
Assembly Bill 1791, introduced by Assembly Member Nazarian, aims to amend California's existing residential rental housing laws by imposing new regulations on large businesses that own multiple residential properties. The bill specifically targets business entities that own 10 or more single-family residential units and have annual gross receipts exceeding $1 billion. By allowing local governments to apply rent control measures to these properties, the bill reverses restrictions imposed by the Costa-Hawkins Rental Housing Act that previously exempted these businesses from local rent control ordinances. The intent behind this change is to address the growing concerns over housing affordability in California.
The sentiment surrounding AB 1791 appears to be mixed among stakeholders. Advocates for housing affordability view the bill positively, as it seeks to increase local control over rent regulations and potentially ease the burdens faced by renters in the face of rising housing costs. Conversely, opponents, including some real estate industry representatives, argue that the legislation could burden large landlords with additional taxes and regulations, ultimately leading to decreased investment in rental housing stock and exacerbating the housing crisis. The polarized views highlight the broader debate about how best to address housing issues in California.
While supporters champion the legislative goal of advancing affordable housing, critics raise concerns regarding potential negative repercussions for the rental market. The bill's proponents contend that allowing local control over rent increases will empower communities to make decisions that reflect their specific housing needs. However, critics are worried that the introduction of additional fees and regulations could deter investment from large real estate companies, which may seek to offload properties or reduce their participation in California's rental market. This tension indicates a significant contention point in debates over AB 1791.