Newsom and top California lawmakers strike a deal to cap rent increases

Millions of Californians would receive new protections against large rent increases under an agreement announced late Friday by Gov. Gavin Newsom and legislative leaders.

The deal, which needs the approval of the Legislature in the next two weeks, would cap rent increases statewide at 5% plus inflation per year for the next decade, according to Newsom’s office. The legislation, Assembly Bill 1482, would also include a provision to prevent some evictions without landlords first providing a reason.

“We are pleased to announce we have come to an agreement on a series of amendments to AB 1482 that would create strong renter protections,” said a statement from Newsom, Senate leader Toni Atkins (D-San Diego), Assembly Speaker Anthony Rendon (D-Lakewood) and bill author Assemblyman David Chiu (D-San Francisco). “The bill will protect millions of renters from rent-gouging and evictions and build on the Legislature’s work this year to address our broader housing crisis.”

The agreement represents a dramatic shift in the debate over whether tenants would see any new limits on rent increases this year, and represents a political risk for Newsom as he backs a highly visible bill not assured of passage.