As rental laws in California evolve, staying informed on changes to housing policy remains important for owners, investors, and multifamily stakeholders. This legislative update was written by Capital Rivers Commercial’s Matt Depa, CCIM, President of the Board of Directors for the North Valley Property Owners Association (NVPOA) and Vice President of the California Rental Housing Association (CALRHA). Matt remains actively involved in multifamily legislation and advocacy efforts across the state.
As California approaches the summer months and legislative summer recess, Matt provided an update on several bills previously discussed. Policy committee deadlines have now passed and the current status of several measures is becoming clearer.
Policy committees held two additional bills that CALRHA opposed: AB 1611 (Haney): Taxation of Rental Properties and loss of 1031 Exchange Benefits for Owners of 50 or More Units and AB 2609 (Caloza): Tenancy: Additional Rents and Securities: Common Household Pets.
This development means those measures cannot move forward during the current legislative cycle. However, they may potentially return in a future session.
Legislative Committee Updates Affecting Rental Laws in California
The Appropriations Committees took up their Suspense files on Thursday, May 14. Several CALRHA-opposed bills also stopped moving forward after committee review:
- SB 1155 (Smallwood Cuevas) – Eviction Protection for Nonpayment of Rent due to Federal Government Shutdown.
- SB 1246 (Durazo) – Eviction Protections for Immigrants.
- AB 2064 (Sharp-Collins) – Criminal History Protection. This bill would have added “criminal history” to the list of protected characteristics in both the Unruh Act and FEHA.
In addition, the Appropriations Committee did not advance AB 1771 (Alvarez), a bill CALRHA supported that would eliminate resident manager requirements for properties with 16 units or more.
Finally, lawmakers amended SB 1365 (Allen) regarding price gouging and set the city population cap at 900 after removing it from Suspense.
Bills Moving Forward
Below is an update on legislation expected to continue through the legislative floor process at the end of May.
AB 2350 (McKinnor): Consumer Loans and Rent Obligations
This bill would bar finance lenders, brokers, and program administrators from making consumer loans if a purpose of the loan is to pay any obligation under a residential rental agreement, including rent-split loans.
CALRHA opposes this bill and is working in coordination with a larger coalition.
SB 1117 (Cervantes): Lowering ADU Costs
Currently, impact fees cannot be charged on ADUs with 750 square feet or less of livable space. For ADUs larger than 750 square feet, fees must be proportional to the size of the primary dwelling.
The bill proposes that fees for ADUs apply only to the area beyond 750 square feet. This measure would alter how local agencies calculate these fees and establish a state-mandated local program. It also states that these changes are matters of statewide concern affecting all cities, including charter cities.
CALRHA supports SB 1117.
SB 1160 (Durazo): Eviction Data Reporting
The bill proposes that the Judicial Council collect and publicly share eviction data and report findings to the Legislature.
Additionally, courts would provide monthly unlawful detainer information aggregated by ZIP Code and made available through public records requests.
CALRHA opposes SB 1160.
SB 1296 (Durazo): Pet Policies in Rental Advertising and Applications
Existing law prohibits landlords from requiring tenants to declaw or devocalize pets as a condition of renting.
The proposed bill would require landlords to clearly include pet policies within advertisements and rental applications. Policies would need to specify breed and weight restrictions, and prospective tenants would need to acknowledge receipt.
The bill would also require landlords to refund application fees if pet policies were not disclosed before the fee was collected.
CALRHA opposes SB 1296.
Upcoming Legislative Deadlines
- May 29 – Floor Deadline
- June 15 – Budget Bill Passage
- June 25 – Last day for a legislative measure to qualify for the November General Election ballot
- July 2 – Policy Committee Deadline in Second House and start of Summer Recess
- August 3 – Legislature reconvenes from Summer Recess
- August 14 – Fiscal Committee Deadline in Second House
- August 31 – Floor Committee Deadline in Second House and end of session
- September 30 – Last day for Governor to sign or veto legislation
Summary
California housing legislation continues to impact property owners and multifamily operators throughout the state. This update covered several proposed measures tied to rental laws in California, including eviction protections, ADU fee structures, rent-related lending restrictions, pet policy requirements, and reporting standards.
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.
