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California governor announces deal to cap rising rent prices

The deal announced Friday would cap annual rent increase at 5% plus inflation, with a 10% maximum.

Posted: Aug 30, 2019 9:23 PM

SACRAMENTO, Calif. (AP) - California Gov. Gavin Newsom's office says he's reached a deal with apartment owners and developers on legislation that would cap how much they can raise rents each year.

The deal announced Friday would cap annual rent increase at 5% plus inflation, with a 10% maximum.

Newsom's office shared details of the deal, which is not yet in print.

It makes changes to a bill by Democratic Assemblyman David Chiu, who had settled on a 7% plus inflation increase as he faced resistance from the real estate and development industries. It would not apply to apartments built within the last 15 years, and the caps would sunset in 2030.

Newsom's office says the California Apartment Association and the California Building Industry Association will not oppose the bill.

California Coronavirus Cases

Data is updated nightly.

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The weather over northern California has finally calmed substantially. Although it would be fantastic to have valley rain and mountain snow, we have some exceptional weather ahead for the end of October and beginning of November.
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