California Gov. Gavin Newsom and top Democrats announced Friday evening that they have reached an agreement to place limits on how much landlords can increase a tenant’s rent each year.
The compromise offers a stronger path forward for Assembly Bill 1482, which cleared a key budget committee earlier on Friday.
According to Newsom’s office, the proposed deal would cap annual rent increases at 5 percent plus inflation. It would be in effect through 2030, though it wouldn’t apply to housing built in the last 15 years. That 15-year threshold is a rolling deadline, according to Newsom’s office. The existing bill from Assemblyman David Chiu, D-San Francisco, called for a 7 percent cap plus inflation for just three years.