CalRHA Legislative Update For April 17, 2023

HERE IS OUR MOST RECENT LEGISLATIVE UPDATE AND HAPPENINGS IN THE CALIFORNIA STATE LEGISLATURE.
 

The Legislature reconvened from Spring Recess on April 10th and is busy with policy committee hearings. We are coming up on policy committee deadlines at the end of April and early May. If any bills are not heard by May 5th, they are considered two-year/dead bills for the year.

The legislative calendar for the year is as follows:

• April 28 – Last day for policy committees to hear fiscal bills
  
• May 5 – Last day for policy committee to hear non-fiscal bills
  
• May 19 – Last day for fiscal committee to hear and pass bills to the Floor
  
• June 2 – Last day for bills to pass the Floor in their house of origin
  
• June 15 – Deadline for Legislature to pass budget bill
  
• July 14 – Last day for policy committees to meet and summer recess begins
  
• August 14 – Legislature reconvenes from summer recess
  
• September 1 – Last day for fiscal committee to pass bills to the Floor
  
• September 8 – Last day to amend bills on the Floor
  
• September 14 – Last day for bills to pass the Floor in the second

Legislation CalRHA is Opposing – Top Threats

• SB 466 (Wahab, D-Fremont) – Costa-Hawkins Rental Housing Act – SB 466 would repeal major protections afforded to the state’s rental housing providers under the Costa-Hawkins Rental Act of 1995, as well as expand local rent regulations, making it extremely difficult for rental property owners to continue to provide housing. Furthermore, the bill would limit those units that currently have a right of vacancy decontrol. This is an absolute priority bill for CalRHA to stop this year. SB 466 is scheduled for a hearing in the Senate Judiciary Committee on April 18th.
  
• SB 567 (Durazo, D-Los Angeles) – Tenancy – SB 567 would undo a heavily negotiated agreement on just cause eviction rules and rent caps under AB 1482. SB 567 bill eliminates the provision under State law (Assembly Bill 1482) related to termination of tenancy without just cause and requires that just cause to be stated in the written notice to terminate tenancy only after a tenant has continuously and lawfully occupied a residential real property for 12 months. Additionally, for Ellis Act evictions, this bill requires that all of the rental units at the rental property be withdrawn from the rental market for at least 10 years. This bill would further eliminate the exemption under state rent control regulations of any residential real property that is alienable separately from the title to any other dwelling unit, including mobile homes. Finally, SB 567 would also limit annual rent increases to just the percentage change in the cost of living, or 5%, whichever is lower. Under this scenario, property owners will never be able to keep up with ever increasing costs, particularly following years of imposed moratoriums on rent increases enacted by many local jurisdictions throughout the state. This bill would be a significant setback
  to efforts for increasing housing availability. SB 567 is scheduled for a hearing in the Senate Judiciary Committee on April 25th.

Additional Legislation CalRHA is Opposing:

• AB 12 (Haney, D-San Francisco) – Tenancy: Security Deposits – Would prohibit a landlord from receiving a security deposit for a rental agreement in an amount in excess of one month’s rent, regardless of whether the residential property is unfurnished or furnished. AB 12 has passed the Assembly Judiciary Committee on a party-line vote and is now on the Assembly Floor.
  
• AB 309 (Lee, D-Milpitas) – Social Housing – This bill would define “social housing” for purposes of the Zenovich-Moscone-Chacon Housing and Home Finance Act, and make findings and declarations relating to social housing and would state the intent of the Legislature is to further the Social Housing Act to address the shortage of affordable homes by developing housing for people of all income levels, prioritizing low-income households. CalRHA is opposing AB 309 along with the Realtors. It is scheduled for a hearing on April 26th in the Assembly Housing and Community Development Committee.
  
• AB 919 (Kalra, D – San Jose) Sale of Rental Properties: First Right of Offer – Would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential property to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. We have been lobbying this bill before the Assembly Judiciary and it may become a two-year/dead bill for the year.
  
• AB 1035 (Muratsuchi, D-Torrance) – Mobile Home Parks Rent Caps – Would prohibit the management of a mobilehome park from increasing the gross rental rate for a tenancy for a mobile home space more than 3% plus the percentage change in the cost of living, as defined, over the course of any 12-month period, as specified. CalRHA is opposing AB 1035 along with the Western Manufactured Housing Communities Association (WMA). It is scheduled for a hearing on April 19th in the Assembly Housing and Community Development Committee.
  
• AB 1317 (Carillo, D-LA) – Unbundled Parking – Would require the owner of residential real property that provides parking with a residential unit to unbundle parking from the price of rent (“unbundled parking” is the selling or leasing of parking spaces separate from the lease of the residential use). AB 1317 has not yet been scheduled for a hearing and may become a two-year/dead bill for this year.
  
• SB 267 (Eggman, D-Stockton) – Credit History of Persons Receiving Government Rent Subsidies – Would prohibit the use of a person’s credit history as part of the application process for a rental housing accommodation without offering the applicant the option of providing alternative evidence of financial responsibility and ability to pay in instances in which there is a government rent subsidy and would require that the housing provider consider that alternative evidence in lieu of the person’s credit history. SB 267 was heard in policy and fiscal committees and is now on the Suspense File in
  Senate Appropriations, awaiting action by May 19th.
  
• SB 395 (Wahab, D-Fremont) – Statewide eviction database – Would state the intent of the Legislature to enact subsequent legislation that would require landlords to report all evictions to a new statewide eviction reporting database. SB 395 is scheduled for a hearing in the Senate Judiciary Committee on April 18th.
  
• SB 460 (Wahab, D-Fremont) – Hiring of real property: Criminal History – This is now a two-year bill, which means it is not moving this year and, therefore, a win for the industry.

As always, CalRHA will keep you informed as these bills make their way through the Legislature. We will be sure to send out Calls to Action when we are at a pivotal juncture and your involvement could help determine the outcome.