California governor announces deal to cap rising rent prices

KEY POINTS
  • The proposal still needs to clear the state Legislature, which adjourns for the year in two weeks.
  • The California Apartment Association said it will not oppose the bill.

California Gov. Gavin Newsom reached a deal with apartment owners and developers Friday on legislation that would cap how rapidly rents can rise as the state grapples with a housing crisis.

The deal would cap annual rent increases at 5% plus inflation, with a 10% maximum increase. That’s lower than the 7% threshold lawmakers had previously negotiated amid strong resistance from the real estate and development industries. Staff members Newsom’s office shared details of the deal, which is not yet in print.

It marks a victory for renters who say they are being priced out as rents rise, though many renters and social justice groups likely want an even stricter proposal. Democratic Assemblyman David Chiu of San Francisco, the bill’s author, had made numerous concessions to the real estate and development industries to even get the bill to the state Senate.

Read the rest of the story on CNBC


 

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