California: Homeowners' Right to Raise Rent Restricted: What You Need to Know - ForumDaily
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California Restricts Homeowners' Right to Raise Rent: What You Need to Know

California Governor Gavin Newsome has signed a law that will regulate rent increases for housing. Writes about this Yahho! News.

Фото: Depositphotos

The new law limits annual rent increases to 5% plus inflation, and adds protection measures for tenants to prevent homeowners from evicting them for no reason.

The law does not apply to housing that has received a certificate of settlement in the previous 15 years, dormitories of a university or college, as well as single-family housing occupied by the owners.

“Millions of tenants in California see only one increase in rents or evictions,” said Assembly Member David Chiu, who wrote the bill. “The fact that someone is renting housing does not make him less worthy.”

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According to a rent control analysis by the Haas Fair and Open Society Institute at the University of California, Berkeley, there are more than 17,5 million tenants in California, and just over half spend 30% or more of their rental income.

Newsom said the law provides some of the most stringent rental controls in the United States. He also added that “one of the most important tools” to combat the crisis of homelessness “is to protect tenants from rising prices and evictions.”

California is in crisis. The state ranks second in poverty in the United States. Meanwhile, according to Forbes, California's cities make up six of the 10 most expensive in the country.

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In San Francisco, homelessness increased by 17% between 2017 and January 2019, with more than 8 000 homeless people living in the city. In Los Angeles County, the number of people with no fixed abode increased by 12% from 2018 to 2019 years. In January 2019, there were about 59 000 homeless people in Los Angeles County.

Newsom said during the ceremony of signing the bill that law alone is not enough to resolve the California housing crisis.

“We must solve this problem,” summed up Newsom. “We need to build more affordable housing.”

As ForumDaily wrote earlier:

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