AB 1157 Didn’t Pass. Here’s the Update.


Steve Welty

Issue# 84

January 2026

Happy Saturday, Housing Heroes,

Quick follow-up to a recent note on AB 1157.

There’s an important update.

AB 1157 Has Been Halted... For Now

The rent control bill authored by Assemblymember Ash Kalra did not move forward after a hearing in the Assembly Judiciary Committee.

The bill needed seven votes to advance and fell short. As a result, AB 1157 is effectively done for this legislative session and will not become law this year.

That’s welcome news for housing providers.

A Quick Reminder of What the Bill Proposed
If passed, AB 1157 would have made major changes to California’s existing rent cap law by:

  • Lowering the statewide rent cap
    From 5% plus inflation (capped at 10%)
    To 2% plus inflation, capped at 5%
  • Expanding rent caps and just-cause rules to housing types that are currently exempt, including:
    • Single-family homes
    • Condos
    • ADUs
    • Individually owned townhomes
  • Removing the January 1, 2030 sunset date, making rent caps permanent

These weren’t minor tweaks. Together, they would have significantly changed how rental housing is regulated across the state.

Why This Still Matters
Although the bill has stalled, this isn’t the first time it’s come up.

AB 1157 failed to move forward last year as well, but it was brought back again. That pattern is worth paying attention to. Even when bills don’t pass, the ideas behind them often return in new forms.

For housing providers, that uncertainty affects real decisions, whether to build, reinvest, hold onto a property, or step away altogether.

One Question for You

We’d love your perspective.

Why do you think measures like this continue to be proposed, even after voters and lawmakers repeatedly push back?

Is it political pressure? A lack of understanding of housing economics? Something else entirely?

Hit reply and share your thoughts. Your insight helps shape future conversations and future notes.

Thanks, as always, for being part of the Housing Heroes community.

Steve


P.S. We recently expanded our newsletter into a private Facebook group where we share housing market insights, landlord tips, and behind-the-scenes data from what we’re seeing across California and where you can also connect and interact with other housing providers. We’d love for you to be a part of it.


Have questions about managing your property?

Our team proudly serves San Diego, Orange, and Riverside Counties. Schedule a call with us today, and let’s chat about how we can guide you through every step of your property management journey.


Steve Welty

CEO @ Good Life Property Management

DRE #01744610

5252 Balboa Ave #704, San Diego, California 92117
Unsubscribe · Preferences

The Housing Hero Newsletter By Steve Welty

Passionate about bringing positivity and fresh perspectives to the rental property industry CEO @ Good Life Property Management San Diego and Orange County. Managing over 1,300 units in San Diego and Orange County.

Read more from The Housing Hero Newsletter By Steve Welty

Steve Welty Issue# 91 March 2026 Happy Saturday Housing Heroes, If you’ve leased out a property recently, you’ve probably had this thought at least once: “Is this application actually real?” And you’re not being paranoid. Rental fraud has quietly become one of the biggest challenges in leasing today. Over 70% of housing providers say fraud has increased in the last year, and more than 80% are seeing fake or manipulated income documents. So if things feel a little different lately… they are....

Steve Welty Issue# 90 March 2026 Happy Monday Housing Heroes, If you’ve owned a rental property for 10, 20, or even 30+ years, you’ve probably asked yourself the same question at some point: “What happens if I sell this property?” For many investors, the immediate fear is the tax bill. Capital gains. Depreciation recapture. State taxes. It can feel like the government takes a huge bite out of decades of hard work. But this week’s webinar reminded us of something important: A 1031 exchange...

Steve Welty Issue# 89 February 2026 Happy Saturday, Housing Heroes! The headlines say it all: California’s “junk fee” crackdown has been delayed. If you were bracing for AB 1248 to dramatically change how you structure resident fees in 2026, you can exhale, for now. Let’s break down what happened, what would have changed, and what this means for you moving forward. What Was AB 1248? AB 1248 was California’s proposed “junk fee” bill aimed directly at rental housing. The goal? Prevent landlords...