Residential Housing Unfair Practices Act of 2023.
By amending critical sections of the Business and Professions Code, AB 2230 will expand the definition of 'trust' to include activities of all affiliated persons, thereby making violations of this act punishable as a crime. The bill also introduces stipulations that prevent competing residential developments from colluding to restrict supply or inflate prices. Furthermore, it defines key terms such as 'residential housing' and 'undue concentration,' establishing a legal framework that governs the practices related to the leasing, renting, and purchasing of residential properties.
Assembly Bill 2230, also known as the Residential Housing Unfair Practices Act of 2023, aims to address the ongoing affordable housing crisis in California by expanding the scope of the Cartwright Act. The bill seeks to make unlawful the practices that manipulate housing prices and supply, especially during a declared statewide housing emergency, which is currently effective until January 1, 2030. It aims to protect residential housing markets from being dominated by institutional investors and speculators, who are driving prices beyond the reach of average residents.
The passage of AB 2230 is expected to provoke discussions surrounding the balance of business regulation and free market principles. Supporters argue that the bill is a necessary step to protect consumers from exploitative practices in real estate and to ensure fair access to housing. Critics may oppose the imposed limitations on business conduct, claiming that such regulations could disincentivize investment in housing, potentially leading to a decrease in overall housing development and supply in California.