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SACRAMENTO, Calif. — A bill to cap rent increases for most tenants in the country's most populous state has cleared a key legislative hurdle.
The California Senate voted 25-10 on Tuesday to approve a bill that would cap annual rent increases at 5% plus inflation. The cap would not apply to housing built within the last 15 years, single-family homes not owned by corporations or trusts, and duplexes where the owner lives in one of the units. The cap expires in 2030.
Supporters say the bill will help tenants stay in their homes while the state rushes to build new housing to meet the state's outsized demand. Critics say it will discourage construction of new housing and hurt smaller landlords.
The bill needs final approval in the Assembly.
