CalRHA Public Policy Update - July 2024

Legislative Update

The Legislature is now on summer recess until August 5th when they will reconvene to finish their final month of session.  Before adjourning  for summer recess, we had several favorable outcomes.  First, the author of our top priority bill, AB 2216 (Haney, D-San Francisco), mandating pets in rental units, decided to no longer move his bill this year.  This is a huge win for the industry.  Additionally, two bills that we were opposing, AB 2584 (Lee, D-Milpitas) - Corporate Owned Single-Family Homes and SB 1201 (Durazo) - Beneficial Owners were pulled from their policy committee hearings by the authors because they did not have the votes to pass.  Both bills are dead for the year.  Finally, we had been negotiating with the author’s office on SB 611 (Menjivar, D-San Fernando) - Rental Advertising Fees, which was significantly amended to remove the onerous section of the bill so CalRHA was able to go neutral.

Other updates on key legislation are as follows:

• AB 2278 (Carillo, D-Los Angeles) - Publishing Rental Rates - Would have the Attorney General publish the maximum allowable annual rent by July 1st of each year.   AB 2278 is on the Senate Appropriations Suspense file and will be acted upon in August. - SPONSOR

• AB 2347 (Kalra) - Evictions - Would make various procedural changes to landlord-tenant law, including specified extensions of time for tenants to respond to notices and eviction papers.  AB 2347 extends the time for the defendant's response to be filed from five court days to 10 court days after the unlawful detainer complaint and summons is served on the defendant.  AB 2347 passed the Senate Judiciary Committee and heads now to the Senate Floor. - OPPOSE

• AB 2498 (Zbur) - Rent Relief - Establishes the California Housing Security Program (the Program) to provide counties with funding to administer a housing subsidy to eligible persons to reduce housing insecurity and help Californians meet their basic housing needs, subject to an appropriation. The bill would create a 2-year pilot in eight counties, including Los Angeles, Orange, and San Diego.  The bill is pending a hearing in the Senate Appropriations  Committee. - SUPPORT

• AB 2747 (Haney) - Credit Reporting - Requires specified landlords to offer each tenant obligated on a lease the option of having the tenant's positive rental payment information reported to at least one nationwide consumer reporting agency. AB 2747 is on the Senate Floor. - OPPOSE

• AB 2801 (Friedman) - Security Deposits - As introduced, the bill would have prevented using security deposits for professional carpet cleaning. However, the bill has been significantly amended and is less onerous.  AB 2801 has been amended to carve out small owners and is pending on the Senate Floor.

The legislative calendar for 2024 is as follows:

• July 4 - August 4 - Summer Recess
• August 16 - Last day for fiscal committees to meet and pass bills
• August 23 - Last day to amend bills on the Floor
• August 31 - Last day for each house to pass bills
• September 30 - Last day for the Governor to sign or veto bills

Initiative Update

November 5, 2024 Ballot Measure numbers have been formally assigned by the Secretary of State for the ten measures, including:

• Prop. 2 – AB 247 (Muratsuchi) – $10 billion bond to fund construction and modernization of public education facilities.

• Prop. 3 – ACA 5 (Low) – Repeal Proposition 8 and establish the right to marry.

• Prop. 4 – SB 867 (Allen) – $10 billion bond to fund state and local parks, environmental protection projects, water infrastructure projects, energy projects, and flood protection.

• Prop. 5 – ACA 1 (Aguiar-Curry) – Local government financing, affordable housing and public infrastructure voter approval lowered to 55% from the current ⅔ requirement.

• Prop. 6 – ACA 8 (Wilson) – Prohibits involuntary servitude as punishment for a crime.

• Prop. 32 – Raises minimum wage to $18.

• Prop. 33 – RENT CONTROL - Costa Hawkins repeal.  Expands local governments’ authority to enact rent control on residential property.

• Prop. 34 – Restricts spending by health care providers meeting specified criteria (ex. AIDS Healthcare Foundation).

• Prop. 35 – Provides permanent funding for Medi-Cal health care services via MCO tax.

• Prop. 36 – Changes Prop 47.  Allows felony charges and increases sentences for certain drug and theft crimes.