California’s New Real Estate Law – AB 1492
Two words that investors in residential real estate do not want to see in the same sentence are “rent” and “control”. Therefore, it was with more than considerable interest that the CA real estate community monitored the drafting and subsequent formal adoption of Assembly Bill 1482 or the “Tenant Protection Act of 2019”. The law, for all practical purposes, became known in common parlance as California’s new “rent control act.” It took effect January 1, 2020.
A main impetus for enacting AB 1482 is that more than 50% of California’s renter population of 17 million renters are deemed “cost‐burdened” – which means their shelter costs exceed 30% of household income. Within that population, more than one‐half of the total (or 29% of the total renter population) are deemed “severely cost‐burdened” – which means their shelter costs exceed 50% of household income. As you might expect, the “severely cost‐burdened” population is comprised disproportionately of low‐income households and persons of color.