Senate Bill 522 (Sen. Aisha Wahab) will impose strict rent control on newly constructed replacement housing following any natural disaster. This bill is currently on the Senate Floor and up for a vote of the full state Senate –

WE CAN STOP THIS BILL IF YOU HELP US!

Senate Bill 522 Imposes Strict Rent Control on New Construction

Under California’s Costa-Hawkins Rental Housing Act and 2019’s Assembly Bill 1482, the “Tenant Protection Act of 2019,” residential rental units constructed within the past 15-years are not subject to either state or local rent caps. Senate Bill 522 will eliminate this exemption for newly constructed, residential rental properties that are constructed to replace properties destroyed by natural disaster.

In other words, Senate Bill 522 removes an important exemption from rent control for newly constructed or substantially rebuilt rental properties after a natural disaster. This means:

• Rental units rebuilt to replace rent-controlled properties after any natural disaster would be immediately subject to rent control.
• Property owners would not be able to charge market-rate rents to recover construction costs.
• Financing for rebuilding could become much harder to secure due to restrictions placed on rental income resulting in far lower projections of revenue and net operating income (NOI).

Call to Action: Take Action Today and Call Your Senators!

Please call your representative in the California State Senate today and urge them to VOTE NO on Senate Bill 522! Tell them the following:

• Senate Bill 522 Impedes Disaster Recovery: By eliminating this important exemption from rent control, Senate Bill 522 makes it nearly impossible for developers and housing providers to rebuild badly needed housing that is destroyed by natural disasters like wildfires, especially older homes that require costly, code-compliant reconstruction.
• Financing of Replacement Properties Becomes Extremely Difficult: Without the ability to recover rebuilding costs through market-rate rents, property owners will struggle to secure financing, delaying or preventing reconstruction altogether because rental income and NOI will be limited.
• Reduces Housing Supply: Senate Bill 522 risks a permanent loss of housing in communities that desperately need it, as providers may be forced to invest in other regions. We are already experiencing a housing shortage in California – Senate Bill 522 makes our housing crisis far worse.

Who You Gonna Call? Legislator’s Contact Information:

1. Click here to enter your address and find your California State Senate representative: Find Your Senator.
2. Once you find your State Senate representative, click here to find his/her name and Capitol Office phone number.
3. Please call the Capitol Office phone number and urge your representative to vote NO on SB 522.

 Every call counts. Please contact legislators today and share this message!

Source: AAGLA