Gavin Newsom, top Democrats strike deal to cap rent hikes in California
California Gov. Gavin Newsom and top Democrats announced Friday evening that they have reached an agreement to place limits on how much landlords can increase a tenant’s rent each year.
The compromise offers a stronger path forward for Assembly Bill 1482, which cleared a key budget committee earlier on Friday.
According to Newsom’s office, the proposed deal would cap annual rent increases at 5 percent plus inflation. It would be in effect through 2030, though it wouldn’t apply to housing built in the last 15 years. That 15-year threshold is a rolling deadline, according to Newsom’s office. The existing bill from Assemblyman David Chiu, D-San Francisco, called for a 7 percent cap plus inflation for just three years.