Steve Welty

Issue# 41

March 2025

Happy Saturday, Housing Heroes!

Heads up, big news on the legislative front that could impact landlords across California. Assembly Bill 246, introduced by Assemblyman Isaac G. Bryan, is stirring up debate by proposing a statewide rent freeze for a full year.

If enacted, this law would lock in rental rates at the levels charged as of January 7, 2025 and impact housing providers throughout LA County and potentially set a precedent affecting housing providers across the state.

What’s the Deal with AB 246?

AB 246 is designed to halt rent increases for an entire year. Its proponents argue it’s a necessary move to protect tenants during times of crisis, but for many housing providers, it raises serious concerns. The measure is backed by Housing Is a Human Right, the advocacy arm of the AIDS Healthcare Foundation, which has a track record of supporting rent control initiatives even though previous statewide proposals like Propositions 10, 21, and 33 did not pass.

Why Should You Be Concerned?

Locking rental rates for a full year might sound like a tenant-friendly move, but here are some key points landlords need to consider:

Setting a Dangerous Precedent: If passed, AB 246 could open the door to future state-imposed rent freezes, potentially triggered by events such as wildfires, floods, or other natural disasters.
Overriding Local Decisions: Both the Los Angeles City Council and the L.A. County Board of Supervisors have rejected similar policies. AB 246 would override these local decisions, forcing a one-size-fits-all mandate statewide.
Existing Protections in Place: California’s Penal Code §396 already caps rent increases at 10% during declared emergencies. This measure may render AB 246 redundant, adding another layer of regulation on top of what exists.
Lessons from the Past: During the COVID pandemic, many landlords experienced nearly five years of rent freezes. This period saw significant financial strain on housing providers, with some losing their properties due to rising costs. AB 246 risks repeating this hardship.
Risk of Steep Penalties: The bill also includes punitive measures—district and city attorneys would have the authority to impose civil fines of up to $10,000 per violation against rental housing providers, escalating the stakes for non-compliance.

My Take:

As someone deeply invested in the housing industry, I understand the challenges you face. While tenant protections are important, it’s crucial to balance them with the need for sustainable property management and investment.

If you’ve already taken action, thank you for making your voice heard. If you haven’t please contact your Assembly member a message urging a no vote on AB 246. You can use CAA's VoterVoice page to reach out to them.

Stay proactive, Housing Heroes, and remember that your informed advocacy is key to shaping fair and balanced housing policy. For further details on the proposed law, you can read more here.

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