Legislative Update - September 19, 2024

Imperial Beach Council Draws Public Comment Against Rent Control
Thank you to all those who attended yesterday evening’s Imperial Beach City Council meeting and to all those who submitted written comment. Seven property owners spoke out against rent control and more regulation. Another half dozen submitted written comment in opposition. Only one speaker supported some form of rent stabilization and tenant protections but also sympathized with housing providers. SCRHA has heard that Mayor Aguirre and Councilmember Leyba-Gonzalez support rent stabilization and additional tenant protections and would like to see something come forward sooner than later. It is no coincidence that this is coinciding with Proposition 33 on the ballot. A local rent control ordinance in Imperial Beach could apply to single family homes/condos and new construction if Prop. 33 were to pass. SCRHA is gathering more information, scheduling meetings, and more and will report back to members as more information becomes available. Make sure you are signed up for SCRHA Action Alerts so you get notification when this issue is scheduled for a vote. 

Despite Significant Industry Opposition, Governor Newsom Signs Onerous Bills
SCRHA worked diligently this year to stop numerous bills that would impact the way you do business. While overall our lobbying year was successful, stopping bills like the one that would have mandated accepting pets, a few bills made it to the Governor’s desk. Today he signed a package of bills relating to housing. Here are the bills that remained a priority for SCRHA that were signed despite our veto request. 

• AB 2801 by Assemblymember Laura Friedman — Tenancy: security deposits: It specifies that claims by the housing provider against a tenant or the deposit for materials or supplies, and for work performed by a contractor, must be limited to a reasonable amount necessary to restore the premises back to the condition it was in before the tenancy, except for ordinary wear and tear. It will also require that, beginning April 1, 2025, an owner or manager must take photographs of the unit before a tenancy and within a reasonable time after the possession of the unit is returned, but before any repairs or cleanings that might be deducted from the deposit are completed, and that the housing provider take photographs of the unit within a reasonable time after the repairs or cleanings are completed. SCRHA is concerned not only with the significant administrative burden, but also with the likelihood of tenants challenging security deposit refunds over the required photos as it is impossible for a housing provider to anticipate which areas of a rental unit will be damaged.
• AB 2747 by Assemblymember Matt Haney — Tenancy: credit reporting: This bill requires housing providers of buildings of 15 units or more to offer each tenant the option of having their positive rental payment information reported to at least one nationwide consumer reporting agency. While SCRHA opposed to the bill until the end, our advocacy triggered amendments to allow housing providers to pass any associated costs along to the tenant and limit the ability to opt in and out repeatedly.
• SB 611 By Senator Caroline Menjivar — Residential rental properties: fees and security: This bill prohibits charging a tenant a fee for serving, posting, or otherwise delivering any notice. It also prohibits charging a tenant any fee for payment by check for rent or security deposit. On or after April 1, 2025, if a housing provider charges a service member a higher than standard or advertised security, they must provide the tenant with a written statement, on or before the date the lease is signed, of the amount of the higher security and an explanation why the higher security amount is being charged. The bill would require the additional amount of security to be returned to the tenant after no more than 6 months of residency if the tenant is not in arrears for any rent due during that period.

SCRHA is still hoping the Governor will sign AB 2579 (Quirk-Silva) which proposes an extension of the deadline to inspect balconies and other exterior elevated elements. If signed, the deadline will be January 1, 2026. SCRHA will be providing more guidance on new laws in the near future and amending any forms, as necessary. Thank you to all the members who called or wrote to their elected officials this year. Your voice made a difference!

Proposition 33 Rent Control Town Hall Recap
If you missed the September 13^th SCRHA Town Hall on Proposition 33, you can read a detailed recap here. Thank you to all members who joined us and shared the information with their network.

Want to keep up with the latest? Tune in to AM 600 KOGO on Saturday mornings at 8am for The Financial Advisors with Aubrey Morrow and hear from SCRHA member Doug Taber as he discusses the rental market. He is often joined by SCRHA Past President Christine LaMarca and other SCRHA volunteers who share the latest on rental-related legislative efforts locally and throughout California.

Reminder: Emergency Declaration in place for Riverside County. Learn more.

ICYMI:

• Endorsement: No on Prop. 33. Rent control makes problem worse  
• AIDS Healthcare Foundation settles with tenants over conditions in Skid Row apartment building
• San Diego renters facing rate hikes demand rent control
• San Diego a ‘concession-driven market’ as landlords offer new renters deals amid slowdown
• Resource centers set up to help residents affected by Southern California wildfires
• More affordable housing coming to National City
• Del Mar City Council passes regulations to cap short-term rentals at 129 units