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California Rent-Cap Overhaul Fails in Assembly Committee

The outcome underscores a divide between tenant advocates seeking stability versus industry groups warning of harm to housing supply.

Overview

  • AB 1157 failed to advance in the Assembly Judiciary Committee on Tuesday, and with no further hearings scheduled it is unlikely to return this session.
  • Authored by Assemblyman Ash Kalra, the bill aimed to impose a flat 5% annual cap on rent increases and remove the 2030 sunset on statewide limits.
  • Kalra offered to drop a provision extending protections to single-family homes, individually owned condos and duplexes in an effort to win support.
  • Landlord, realtor and building trade groups opposed the measure, warning it would discourage construction and burden smaller property owners.
  • Tenant advocates denounced the vote as a betrayal and pointed to widespread cost pressures, with 40.6% of California households spending over 30% of income on housing.