URGENT: California Municipalities Might Enact Rent Controls with AB 1506

UPDATE 4/7/17: Legislators have decided to make AB 1506 into a two-year bill, and will be tabled for the rest of 2017. Click here for more information.

A California Assembly Bill was introduced two weeks ago that would repeal the Costa-Hawkins Act. The bill, AB 1506 (BLOOM), would devastate the rental industry by allowing local governments to control your rental rates. Although this bill is in the early stages, we encourage you to call your local Assemblymember and voice your opposition when it is presented on the assembly floor.

Introduced by Assemblymembers Richard Bloom (D-Santa Monica), David Chiu (D-San Francisco), and Rob Bonta (D-Alameda) and co-authored by State Senator Ben Allen (D-Santa Monica), AB 1506 aims to repeal the Costa Hawkins act which currently prevents cities and counties from adopting extremely restrictive rent control policies, such as:

  1. Regulating initial rental rates and rates established after a change in tenancy
  2. Rent controls on newly constructed housing built after 1995
  3. Rent controls on single-family homes

The Costa-Hawkins Act was adopted in 1995 to curb extreme rent control, enabling property owners to raise rents on vacant units during a time where strict rent control laws were in place across California.  AB 1506 would heavily affect the rental housing industry as it encourages local government to control rental rates and evictions.

“We have consistently supported increasing rental supply and affordable housing.  We want to provide more rental housing, not stand in the way of new or rehabilitated housing stock” according to the Apartment Association of Orange County who is opposing this bill.

Alongside others within the multifamily industry, we urge you to contact your local Assemblymember and ask them to vote NO on AB 1506 when it is taken up on the assembly floor. Click here to find your California Representative.

Let us know what you think about the bill in the comment section or by tweeting us @CICReports and share with your California colleagues on social media.


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Becky Bower is the Content Strategist here at the CIC Blog. She holds a degree in English, with a focus in creative writing, from CSU Channel Islands. Her biggest weakness is cake and favorite superhero is Batman.

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