SB 522: How Post-Disaster Rent Control Could Stall Housing Recovery and Harm Rental Providers
Senate Bill 522, introduced by Senator Aisha Wahab, proposes significant changes to California’s rent control and eviction laws in the context of disaster recovery. The bill eliminates existing exemptions under the Tenant Protection Act of 2019 and the Costa-Hawkins Rental Housing Act for newly constructed units that replace housing lost in natural disasters. Under SB 522, even newly built units—which are currently exempt from rent control for 15 years—would be subject to just-cause eviction rules and local rent control ordinances if they replace previously protected units on the same parcel. Additionally, the bill prohibits local governments from approving new housing developments in disaster-affected areas unless they include at least as many protected units as were destroyed.
While the bill aims to protect tenants and maintain affordability after climate-related events like wildfires, it poses significant challenges for rental housing providers. By removing key exemptions and applying rent control and eviction restrictions to rebuilt units, SB 522 undermines the economic feasibility of reconstruction. Housing providers would face reduced flexibility, greater regulatory burdens, and diminished returns on costly investments, making them less likely to rebuild in disaster-prone areas. Critics argue that this could lead to slower recovery efforts, fewer housing starts, and a deeper housing shortage across the state.
A “No” vote on SB 522 would preserve the current legal framework that encourages redevelopment by exempting new construction from immediate rent control and eviction restrictions. This would protect the financial viability of rebuilding rental housing, support faster recovery in disaster-stricken communities, and maintain critical incentives for property owners to reinvest in the housing supply. By voting “No,” lawmakers can help ensure that disaster recovery efforts do not unintentionally worsen California’s housing crisis by discouraging the reconstruction of rental units.
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California’s rental housing providers are constantly under attack. Each year, dozens of harmful housing regulations are proposed in Sacramento, and locally, we face constant attempts to lower annual rent “caps,” the expansion of tenant protections, new fees and taxes, and with all that, increased risk.
Rent control battles are already brewing in local jurisdictions throughout Southern California. Potential new rent control battlegrounds include cities like Ventura, Burbank and Glendale, but unfortunately, it will not stop there. We can win these battles with your support, both by helping us with your advocacy (emails, phone calls and letters, etc.) and through the contributions you make to the AAGLA Issues PAC.
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The Issues PAC of the Apartment Association of Greater Los Angeles (“AAGLA Issues PAC”) was established to advocate for and on behalf of the rights of all rental housing providers by opposing harmful policies and ballot measures targeting the multifamily rental housing industry and advocating for and supporting policies and ballot measures favorable to multifamily rental housing providers.
Contributions to AAGLA Issues PAC are not tax-deductible.