AB 1157 - Rent Cap Legislation Fails Passage in Committee

You Did It!

The California rental housing industry has successfully defeated legislation that sought to lower and make permanent the statewide rent cap that has been in effect since 2020.

AB 1157 (Kalra) failed passage today in the Assembly Judiciary Committee as the bill only secured four votes when a minimum of seven votes were needed to move it out of committee. The bill would have limited annual rent increases to two (2) percent plus the change in the Consumer Price Index (CPI) or a maximum of five (5) percent, whichever is less; and eliminated key exemptions contained in existing state law.

Despite the committee hearing room being packed with tenants’ rights advocates, the bill failed passage thanks to the outpouring of opposition from rental housing providers across the state over the past week led by the California Rental Housing Association (CalRHA), the Apartment Association of Orange County (AAOC) and its fellow local apartment associations, and other housing industry organizations.

“Today was a demonstration of what rental housing providers are capable of achieving when they engage their state legislators and help them better understand the real impact of the bills they are deliberating,” said AAOC First Vice President and CalRHA State Legislative Committee Chair Amy Fylling (Advanced Management Company). “I want to thank the CalRHA and local affiliate lobbyists in Sacramento for their outstanding efforts, and especially the efforts of the rental property owners and operators who made phone calls and sent emails to the committee members and made their voices heard. They truly made a difference in stopping this harmful bill.”