California governor announces deal to cap rising rent prices




  • In US
  • 2019-08-31 03:18:33Z
  • By KATHLEEN RONAYNE

SACRAMENTO, Calif. (AP) - California Gov. Gavin Newsom reached a deal with apartment owners and developers Friday on legislation that would cap how rapidly rents can rise as the state grapples with a housing crisis.

The deal would cap annual rent increases at 5% plus inflation, with a 10% maximum increase. That's lower than the 7% threshold lawmakers had previously negotiated amid strong resistance from the real estate and development industries. Staff members Newsom's office shared details of the deal, which is not yet in print.

It marks a victory for renters who say they are being priced out as rents rise, though many renters and social justice groups likely want an even stricter proposal. Democratic Assemblyman David Chiu of San Francisco, the bill's author, had made numerous concessions to the real estate and development industries to even get the bill to the state Senate.

While the new deal is in renters' favor by lowering the allowable rent increase from 7% to 5%, it changes the exemption for newer properties from those built within the last 10 years to within the last 15. The rent caps would sunset in 2030. The cost of inflation would be determined on a regional basis, meaning it could be a different percentage in San Francisco than in the Central Valley.

The proposal still needs to clear the state Legislature, which adjourns for the year in two weeks.

The California Apartment Association said it will not oppose the bill.

"Now we must get serious about moving forward on production, which is the only way we address our housing crisis," Debra Carlton, senior vice president for public affairs, said in an email.

The California Building Industry Association is also neutral on the bill, Newsom's office said.

"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," Newsom, Chiu, and legislative leaders say in a statement.

A rent cap is different than rent control, which California law bans on apartments built after 1995 and single family homes. An effort to lift those restrictions failed at the ballot last November. Backers of that ballot measure have threatened to mount another initiative if lawmakers don't act. It wasn't immediately clear if were satisfied with Newsom's proposal, which would not change that state law.

California needs to build about 180,000 new homes each year to meet demand for its nearly 40 million people. But the state has averaged 80,000 new homes in each of the past 10 years, according to a report from the California Department of Housing and Community Development.

This year, lawmakers proposed a number of bills that would have addressed the crisis. But many of them failed to pass. One high-profile measure by Democratic Sen. Scott Wiener would have overridden local zoning rules to allow for more housing in some areas, including near transit. It failed to get out of the state Senate.

__

Associated Press writer Adam Beam contributed.

COMMENTS

More Related News

Power returns to Northern California; firefighters gain on wildfires in SoCal
Power returns to Northern California; firefighters gain on wildfires in SoCal

The lights were back on for more than 2 million Northern Californians after strong winds fueling wildfire concerns prompted a preemptive outage.

California governor signs bill limiting oil, gas development
California governor signs bill limiting oil, gas development

California Gov. Gavin Newsom on Saturday signed a law intended to counter Trump administration plans to increase oil and gas production on protected public land. The measure bars any California leasing authority from allowing pipelines or other oil and gas infrastructure to be built on state property. The law sends a "clear message to (President Donald) Trump that we will fight to protect these beautiful lands for current and future generations," said Democratic Assemblyman Al Muratsuchi, who introduced it.

California governor signs fur sale, circus animal bans
California governor signs fur sale, circus animal bans

California will be the first state to ban the sale and manufacture of new fur products and the third to bar most animals from circus performances under a pair of bills signed Saturday by Gov. Gavin Newsom. Animal rights groups cheered the measure as a stand against inhumane practices. The proposal was vigorously opposed by the billion-dollar U.S. fur industry, and the Fur Information Council of America has already threatened to sue.

California bans sale, manufacture of fur products from 2023
California bans sale, manufacture of fur products from 2023
  • US
  • 2019-10-12 18:58:49Z

It is first state-wide fur ban in the nation, and had been sought by animal rights advocates. Newsom called the ban "one of the strongest animal rights laws in U.S. history" in a statement. Second-hand fur products are exempt from the ban, as are fur products used by Native American tribes for spiritual or cultural purposes.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: US

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.