RESIDENTIAL RENT CONTROL BILL VETOED

We are pleased to let you know that Governor Brown has vetoed AB 1229, which we have been opposing along with a large coalition of partners led by CBIA, Association of Realtors, and several regional apartment associations.

While intended as a legislative response to a California Appellate court decision (Palmer/Sixth Street Properties, L.P. v. City of Los Angeles) upholding the vacancy decontrol provisions of the Costa-Hawkins Rental Housing Act, AB 1229 was a “remedy” that goes far beyond the holding in Palmer and condones the imposition of costly price-controls on new, market-rate residential construction. These provisions would have also provided an artificial bottleneck for approval of commercial projects.

We applaud Governor Brown for his VETO of this measure, in which he stated, in part, “As Mayor of Oakland, I saw how difficult it can be to attract development to low and middle income communities.  Requireing developers to include below-market units in their projects can exacerbate these challenges, even whiule not meaningfully increasing the amount of affordable housing in a given community.”

Click here to read the full AB 1229 VETO message.

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