Happy Saturday Housing Heroes,
Whether you're a tenant, landlord, investor, agent, or simply interested in real estate, what happens in housing policy affects you. This week, three significant stories dropped, and I want to make sure you have the full picture. Below is this week's news: the policies, the context, and what it means for the people living and working in our communities.
Half Moon Bay Moves to Repeal Local Rent Control
After three months of public hearings, the Half Moon Bay City Council voted 3-2 in March to begin drafting a repeal of the city's local rent control and rental registry programs. The second reading was scheduled for May 5, and if approved, the change takes effect June 5, 2026.
Quick definitions:
- Rental registry program: A city-run database where landlords are required to register every rental unit they own, usually paying an annual per-unit fee (Half Moon Bay's was $75/unit). Cities use registries to track local rental stock, monitor compliance with rent control rules, and collect data on the rental market.
- CPI (Consumer Price Index): A federal measure of how much prices for everyday goods and services change over time — basically, the official inflation number. Many rent control ordinances tie allowable rent increases to CPI so that rent can rise with the cost of living, but not faster.
What this means: Multi-unit properties built before February 1, 1995, would no longer be subject to the local 3% (or 80% of CPI) annual rent cap. State protections under AB 1482 still apply.
Why council members supported the repeal: Mayor Debbie Ruddock and supporters argued the program was scaled wrong for a city of roughly 12,000 residents and was burdening small "mom-and-pop" owners. The city plans to refocus efforts on tenant education, legal aid, and rental assistance instead.
Why this matters even if you don't own in Half Moon Bay: Local rent control policies often start in one city and spread. When Berkeley and Santa Monica passed rent control decades ago, similar measures eventually appeared in dozens of California cities. The reverse can also be true — when a city like Half Moon Bay reverses course and provides data showing the program hurt small owners, other city councils take notice. Repeals are rare. This one could become a reference point in future debates from Sacramento to San Diego, especially as more cities weigh whether rent control programs are actually working as intended. Watching how Half Moon Bay's tenant-support alternatives perform over the next year is also worth tracking — if education and direct rental assistance prove effective, that model could spread, too.
Pet Rent Cap Bill (AB 2609) Halted in Sacramento
A proposal that would have capped pet rent at 1% of monthly rent and additional pet deposits at 15% of one month's rent has been halted for this legislative session.
What happened: The author of AB 2609 canceled the Assembly Judiciary Committee hearing on April 27, 2026, effectively stopping the bill from moving forward this year.
What this means for you: Existing law on pet fees remains in place. Most California housing providers continue to charge typical pet rent in the $25–$75 per pet range. (Reminder: under AB 12, the total security deposit — including any pet deposit — is still capped at one month's rent for most properties).
The California Apartment Association led opposition, arguing that the proposed caps wouldn't cover the actual cost of pet-related cleaning and repair.
AB 1611 (Corporate 1031 Exchange Bill) Dies in Committee
A bill that would have eliminated 1031 exchange tax deferrals for owners of 50 or more single-family rental homes in California failed to advance. The Assembly Revenue and Taxation Committee held the bill, essentially killing it for this session.
Important context for our readers: AB 1611 was specifically aimed at large institutional and corporate investors — not small or mid-sized housing providers. If you own fewer than 50 single-family rental homes, this bill would not have affected your 1031 exchange eligibility.
Why it still matters: Bills like this often signal where future policy is headed. The conversation about corporate ownership of single-family homes is gaining momentum on both sides of the aisle — Governor Newsom and President Trump have both publicly supported reining in corporate home-buying. Stay tuned.
The Bigger Picture
Three different stories, one common thread: policy outcomes are shaped by housing providers, tenants, and advocacy groups all showing up and being heard. Whatever side of an issue you're on, staying informed and engaged is what makes the difference.
Got questions on how any of this affects your properties?
Hit reply — I'm here.
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.
|
|
|
Join the Housing Heroes Community
We’ve got a private Facebook group of California housing providers where these conversations continue during the week. It’s a place to ask questions, share what you’re seeing, and hear how others are handling the same challenges.
|
|
|
Steve Welty
CEO @ Good Life Property Management
DRE #01744610
|
