Legislators reject stricter cap on rent increases

5% annual limit, down from current 10%, fails to pass a state Assembly committee.

- By Katiz KING

A contentious housing bill that would have capped rent increases to 5% a year died in the Assembly on Tuesday, a decision greeted with boos and cries of disapproval from spectators packed inside the committee chamber.

Assembly Bill 1157 would have lowered California’s limit on rent increases from 10% to 5% annually and removed a clause that allows the cap to expire in 2030. It also would have extended tenant protections to single-family homes — though the bill’s author, Assemblyman Ash Kalra (D-San José), offered to nix that provision.

“Millions of Californians are still struggling with the high cost of rent,” Kalra said. “We must do something to address the fact that the current law is not enough for many renters.”

Assemblymember Diane Dixon (R-Newport Beach) said she was concerned the Legislature was enacting too many mandates and restrictions on property owners. She pointed to a recent law requiring landlords to equip rentals with a refrigerator.

“That sounds nice and humanly caring and all that and warm and fuzzy, but someone has to pay,” she said. “There is a cost to humanity and how far do we squeeze the property owners?”