Rent Cap Bill Withdrawn! AB 1157 Now "Two Year Bill."

The Apartment Association of Orange County (AAOC) and its rental-housing industry allies have successfully stopped efforts to further expand statewide rent caps and eviction controls - at least for the duration of 2025.

Assembly Member Ash Kalra (D-San Jose) has withdrawn his bill, AB 1157, from further legislative consideration after it stalled in the Assembly Judiciary Committee. The bill sought to lower the current statewide rent cap under AB 1482 from 5% + CPI (for a maximum of 10%) to 2% +CPI (for a maximum of 5%). It would have also expanded the statewide rent cap to ALL single family homes and condominiums.

Following discussions with members of the Assembly Judiciary Committee, Assembly Member Kalra indicated that additional work needed to be done to "stand up to the landlord lobby” and continue the efforts to make housing an human right.

This turn of events comes following an avalanche of statewide rental-housing industry opposition to the bill, including that of AAOC, the California Rental Housing Association (CalRHA), and others. Opposition focused on the impact the bill would have had on rental housing operations and on housing supply and affordability, as well as the fact that it runs contrary to voter sentiment.

“Rental housing providers continue to recover from the financial hit they experienced during the COVID-19 pandemic due to lost rent and the impact of rising inflation and other costs,” said AAOC Vice President and CalRHA Legislative Committee Chair Amy Fylling. “Further reducing the rent cap would only worsen the financial strain on rental property owners and operators, while doing nothing to increase housing supply and availability. Ultimately, AB 1157 harms those owners and operators who typically provide the most affordable rental housing on the market.”

Additionally, AB 1157 runs in direct opposition to voter sentiment on expanded rent control as a means to address housing affordability. “California voters have three times rejected the expansion of rent control policies with resounding defeats of Proposition 10 in 2018, Proposition 21 in 2020, and Proposition 33 in 2024,” said AAOC President John Tomlinson. “It is our hope that this will factor into any further policy discussion that occurs on this bill and that the author will consider alternatives for addressing our state’s housing affordability challenges that do not cause further financial harm to rental housing providers.”

While AB 1157 is believed to be done for the remainder of 2025, AAOC will monitor any “behind the scenes” activity and discussions regarding this bill while it continues to engage on other  priority legislation directly impacting its members and the greater rental-housing industry.

To read CalRHA's statement on the withdrawal of AB 1157 from further legislative consideration, CLICK HERE.