IMPORTANT NOTE: Some declared emergencies trigger anti-price gouging rules which cap rent increases and newly set rents at no more than 10% over the last amount charged. The 10% limitation applies to properties exempt from statewide rent caps and to properties that are vacant and being advertised for rent. Currently, there are no statewide or County specific emergencies that impact our regions served. However, these declarations are often implemented and/or extended with little to no public notice, so members should consult the Governor's Office of Emergency Services website to see a list of County and Statewide emergencies: Click here. The specific portions of Penal Code 396 applicable to rental housing are subsections b, e and f. To learn more about Penal Code 396, click here.
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Effective January 1, 2020, AB 1482 limits how much a property owner or manager can increase their rent in a 12-month period.
Rent increases in any 12-month period are limited to 5% (percent) plus the change in inflation from April 1 of the prior year to April of the current year, as measured by the Consumer Price Index (CPI-U) for the area which the property is located. Some regions do not have a United States Bureau of Labor Statistics report, in which case the California CPI is used (i.e. Imperial County).
For rent increases that take effect before August 1 of any calendar year, the following shall apply:
For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:
The Bureau of Labor Statistics has released reports for CPI-U changes from March 2020 to March 2021. For rent increases that take effect August 1 or later, use the following figures:
REMINDER: Even properties exempt from AB 1482 may be subject to rent increase limitations as a result of Anti-Price Gouging rules that accompany emergency declarations for things such as fires. When these rules are in effect, rent increases are limited to no more than 10% of the previously charged or advertised price. This is particularly important to AB 1482-exempt properties and newly created tenancies.
These are the highlights of the law. To read the law in its entirety, click here.