This legislative update was written by Capital Rivers Commercial’s Matt Depa, CCIM. He serves as President of the Board of Directors for the North Valley Property Owners Association (NVPOA) and as Vice President of the California Rental Housing Association (CALRHA). Matt remains actively involved in multifamily legislation and advocacy across the state. He provides ongoing insight into California rental housing legislation and the issues that affect property owners, investors, and housing providers.
Legislative Activity Before Summer Recess
The California Legislature is now on summer recess until August 3. Prior to recess, several notable bills stalled in policy committees, including SB 880 (Wahab) – Corporate Ownership, which CalRHA actively opposed.
SB 880 would have affected the commercial ownership and sale of rental properties by requiring owners to first offer qualifying properties for sale to tenants. The bill failed in the Assembly Judiciary Committee.
Another bill opposed by CalRHA, AB 2062 (Patterson) – Security Surveillance, also failed in the Senate Privacy Committee. The bill would have prohibited the use of a consumer’s security surveillance system unless the company first obtained the consumer’s express consent and the consent of all adult residents of a residential rental property, or unless otherwise required by a court or arbitrator.
Finally, AB 2350 (McKinnor) – Consumer Loans failed in the Senate Banking Committee. CalRHA opposed the bill because it would have prohibited consumer loans for residential rental agreements, including rent-splitting loans.
Several other bills affecting California rental housing legislation continue to advance through the legislative process.
AB 649 (Lowenthal) – Construction-Related Relief
AB 649, a two-year bill, passed the Senate Judiciary Committee in June and is scheduled for a hearing in the Senate Appropriations Committee on August 3. The bill establishes a process that allows businesses to avoid liability for certain construction-related accessibility claims and modifies the circumstances under which defendant businesses may recover attorney’s fees in these cases.
AB 748 (Harabedian) – Streamlined Housing Plans
CalRHA supports AB 748, which would require local agencies to establish preapproval programs for residential housing plans. The bill is scheduled for a hearing in the Senate Appropriations Committee on August 3.
SB 439 (Becker) – Price Gouging During War
SB 439 was substantially amended in June to expand California’s emergency price-gouging law to include certain wartime conditions. Under the proposal, price-gouging protections could apply to essential consumer goods and services when the Attorney General determines there is a sufficient connection between a war and resulting price increases. CalRHA is actively opposing the bill, which is currently pending in the Assembly Appropriations Committee.
SB 1117 (Cervantes) – Lowering ADU Costs
Current law prohibits impact fees on accessory dwelling units (ADUs) of 750 square feet or less. For larger ADUs, fees must be proportional to the size of the primary residence. SB 1117 would instead apply impact fees only to the portion of an ADU exceeding 750 square feet. CalRHA supports the bill, which is pending in the Assembly Appropriations Committee.
SB 1160 (Durazo) – Eviction Data Reporting
SB 1160 was amended in June to require the Judicial Council to assess each county court’s readiness to report unlawful detainer case data. Beginning in 2028 and 2029, counties will be required to submit quarterly eviction data through JBSIS by ZIP Code.
By July 1, 2027, the Judicial Council must determine when each county is capable of reporting the required data. Counties identified as ready must begin reporting by January 1, 2028, while all remaining counties must begin by January 1, 2029. The Judicial Council will then publish the data annually in an electronic spreadsheet on its website.
The bill is currently pending in the Assembly Appropriations Committee.
SB 1296 (Durazo) – Pet Policy Disclosures
CalRHA worked with the author’s office on amendments to SB 1296. The bill would require landlords who allow pets to maintain a written pet policy, disclose that policy in specified online listings and application materials, and refund application fees in certain circumstances if the policy was not properly disclosed. If enacted, these provisions would take effect on April 1, 2027.
The bill is currently pending on the Assembly Floor.
SB 1371 (Durazo) – Solid Waste Handling During Labor Disputes
CalRHA, along with a broad coalition of organizations, opposes SB 1371 because it would make trash service disruptions during labor disputes more difficult to prevent and manage. The bill is currently pending in the Assembly Appropriations Committee.
What’s Next for California Rental Housing Legislation?
The Legislature will reconvene from summer recess on August 3 and begin considering bills in the fiscal and Appropriations Committees. Bills must clear those committees before August 14, then pass both legislative floors before being sent to the Governor by August 31.
The Governor will have until September 30 to sign or veto the remaining legislation, determining which of these California rental housing legislation proposals ultimately become law.
For owners, operators, and investors, staying informed on legislative activity can help inform operational decisions and long-term planning. To learn more about California multifamily trends and market opportunities, contact Capital Rivers Commercial or explore available listings.
