Steve Welty

Issue# 43

April 2025

Happy Saturday, Housing Heroes!

Checking in with some positive updates following our earlier newsletter on AB 246. I’m pleased to share that, after significant opposition from housing providers all around California, this bill has taken a turn that bodes well for us.

What’s New with AB 246?

Assembly Bill 246, initially introduced by Assemblyman Isaac G. Bryan, originally aimed to impose a one-year rent freeze in Los Angeles County after wildfire emergencies, a proposal that many feared would put tremendous pressure on rental income and property sustainability. Thanks to the collective voice of housing providers statewide, the bill has been completely rewritten.

From Rent Freeze to Targeted Support:

The bill started off as a measure that many of us dubbed a “Rental Housing Killer.” It was first updated to include a modest 3% rent cap through March 1, 2026. Then, on April 10, all rent control provisions were removed. Instead, the focus has shifted entirely to "improving" eviction protections during periods when federal Social Security benefits are disrupted.

Key Protections Under the Revised Bill:

Activation Trigger: The new rules kick in when Social Security benefits are delayed by three or more calendar days. In such cases, the Department of Finance will alert lawmakers and the courts.
Eviction Safeguards: During a “declared interruption,” courts will hold off on issuing eviction summonses for nonpayment if tenants can submit a signed declaration of financial distress.
Extended Response Period: Notices to pay or quit now offer tenants an extended response period, from the standard 3 days to 15 court days accompanied by a state-issued hardship declaration form.
Broader Application: These provisions cover both rental housing and mobile homes and will be in effect until January 20, 2029.

Why This is Great News for Us:

This revision marks a much-needed shift from broad, one-size-fits-all measures to a more focused approach that protects our tenants in specific, critical circumstances without forcing blanket rent freezes upon us. It means our rental income remain more secure, allowing us to continue providing excellent service and support to our tenants.

I truly believe this change reflects the power of a united industry voice. By coming together and sharing our concerns, we’ve steered policy in a direction that supports both property sustainability and tenant stability. Your advocacy and commitment are making a real difference

For a deeper dive into the latest details on AB 246, please take a look at the full bill details here.,

Please note that while this bill only aimed to take effect in LA County, however its implications could ripple all over the state.

🎥 California Rent Control: Everything You Need To Know In 7 Minutes

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