California Attorney General Rob Bonta just issued a press release. You can read that or google and read the entire text yourself. I have also included a 2023 press release from Assemblymember's Haney's office that is pertitent to local issues being debated about affordable housing about five bills sent to California Governor Gavin Newsom from the California Legislative Renter's Caucus.
CA AG Press Release:
California Attorney General Rob Bonta, Assemblymember Matt Haney (D-San Francisco), and a prominent coalition of organizations today unveiled Assembly Bill 1248 (AB 1248), legislation that seeks to protect tenants from unpredictable and costly housing fees.
In recent years, some landlords have adopted the practice of charging separate piecemeal fees in addition to the rent, which can cost tenants hundreds of dollars more each month on top of the base rent. This practice hinders tenants’ financial stability and ability to budget for housing and other needs — and hurts landlords who do not charge these fees by putting them at a competitive disadvantage and creating an unfair marketplace. The practice of charging separate piecemeal fees has become even more rampant since the enactment of California’s Tenant Protection Act (TPA), which provides statewide rent-increase protections. AB 1248 aims to prevent landlords from unbundling housing services — many of which have traditionally been covered by rent — and then charging additional, often mandatory, fees for those services. AB 1248 makes clear that landlords cannot play games with state rent caps by charging fees that amount to shadow rent increases or advertise a deceptively low rent. By prohibiting added fees, AB 1248 will help ensure that tenants’ housing payments remain stable and predictable, and that people can compare true costs when searching for housing within their budget.
“When landlords tack on fees on top of rent it makes it almost impossible for families to compare housing costs or plan for monthly expenses. As it stands, the scarcity and high cost of housing means California's 17 million renters spend a significant portion of their paychecks on rent, with an estimated 150,000 people at risk of eviction any given month,” said Attorney General Rob Bonta. “The price of housing should be clear to California tenants in the same way that the cost of a concert ticket or a hotel is clear to California consumers. I thank Assemblymember Haney for introducing legislation to ensure California tenants receive the full protection afforded to them by the Tenant Protection Act. AB 1248 will help Californians’ housing payments remain straightforward, stable, and predictable.”
“Housing costs in California are already high, and added fees only make it harder for renters to budget and stay financially stable. These unfair and unpredictable costs are nothing more than a scam that drives up housing expenses and leaves tenants paying far more than they expected,” said Assemblymember Matt Haney (D-San Francisco). “AB 1248 ensures fairness by making sure the rent tenants agree to is the rent they actually pay. This bill will help protect Californians from misleading pricing practices and create a more honest and predictable rental market."
"Unfair fees in the rental housing market have exploded in recent years — far too many consumers feel the crushing burden of all these unpredictable fees on a monthly basis," said Robert Herrell, Executive Director of the Consumer Federation of California. "This bill by Assemblymember Haney will dramatically improve consumer protections so renters don't get taken advantage of. We are proud to co-sponsor this bill with Attorney General Bonta and other leading consumer housing advocates."
“Low-income renters need certainty in their monthly rent payments. Most of these tenants are already severely rent-burdened and struggling to retain their housing. The exploitive practice of adding on fees after a lease has already been signed or charging for services that had previously been included in rent makes it even harder for people to stay housed,” said Brian Augusta, Legislative Advocate, California Rural Legal Assistance Foundation. “We are proud to co-sponsor this measure with the Attorney General and the Consumer Federation and thank Assemblymember Haney for authoring it.”
Co-authored by Attorney General Bonta during his time as a state assemblymember, the Tenant Protection Act (TPA) was signed into law by Governor Gavin Newsom in 2019. It created significant statewide protections for most tenants, including by limiting rent increases and prohibiting landlords from evicting tenants without just cause. Under the TPA, landlords cannot raise the gross rental rate more than 10% total or 5% plus the percentage change in the cost of living – whichever is lower – over a 12-month period.
Particularly since enactment of the TPA, an increasing number of landlords, including large corporate landlords, are charging tenants a proliferation of separate fees, including for services that should be and have historically been covered by the rent. For example, some landlords charge monthly fees for pest control, “trash concierge” services, and Ratio Utility Billing System (RUBS) fees where tenants are charged for a portion of the building’s utilities, like water and sewer, based on a complex formula with little transparency and that landlords can often change at any time, resulting in charges that can vary widely from month to month. These fees can add up to hundreds of dollars each month on top of rent.
By engaging in this practice, these landlords place significant burdens on tenants, including uncertainty about monthly housing costs due to variable or increasing fees, and create an unfair and confusing marketplace for prospective tenants and honest landlords — particularly small “mom and pop” landlords — who don’t engage in this deceptive pricing practice. If the combination of rent increases and new fees exceed the TPA’s rent cap, these landlords are also violating California law.
With the number of various fee and fee increases, it may be difficult for tenants to keep track of their monthly payments. When a landlord applies a tenant’s payment to late fees or other obligations before applying it to the rent and then charges a late fee because they consider the rent to not be fully paid, it can create a spiral of rent debt for the tenant, which increases the risk of eviction for nonpayment of rent.
AB 1248 would:
Require landlords to include all costs in the rent rather than charging separate fees.
Create more predictable housing costs for existing tenants by preventing landlords from adding new fees during a tenancy.
Require landlords to apply a tenant’s rent payment to their rent first, which will help prevent landlords from creating a debt spiral for tenants.
Press Release from Assembleymember's Haney's office (issued September 26, 2023):
The California Legislative Renters’ Caucus, chaired by Assemblymember Haney (D- San Francisco), sent all five of its priority bills to the Governor’s desk in its first year. With only five members, the caucus is one of the smallest in the state legislature and was created to advocate for legislation that protects renters’ rights. Every year the Renters’ Caucus picks a slate of bills that will help the 17 million renters in California, and then uses the full force of the caucus’ influence to get those bills passed.
The Legislative Renters’ Caucus was created in 2022 in response to the need for more renter representation in the California State Legislature. While it only had three members after it was first established, it quickly added additional members after the election.
“Our ability to get all five priority bills to the Governor’s desk shows how important creating the renters’ caucus has been,” said Haney. “Most of these bills would’ve died in their first committee if they were introduced five years ago. The Renters’ Caucus, which is growing after each election, is showing how electing renters can directly translate to more tenant-friendly policies,” said Haney.
The five caucus priority bills touch on issues ranging from tenant rights to redistricting.
Assemblymember Haney’s AB 12 will stop the practice of landlords charging two times and in some cases three times the monthly rent as a security deposit. If signed into law, landlords could only charge one month’s rent for a security deposit starting on July 1, 2024.
Majority Leader Bryan’s (D-Los Angeles) AB 1248 would require a county or city with more than 300,000 residents to establish an independent redistricting commission to adopt district boundaries after each census. This bill would end the predatory practice of local officials intentionally undercutting the power of renters by artificially drawing redistricting lines that remove their power.
Assemblymember Boerner’s (D-Encinitas) AB 548 provides authorization for code enforcement officers to inspect additional units if they encounter severely substandard conditions such as widespread mold during an inspection.
Assemblymember Lee’s (D-San Jose) AB 309 creates the Social Housing Program that would be authorized to develop up to three social housing projects on state-owned excess land that’s deemed suitable for housing. The Social Housing Program would aim to ensure that rent is no more than 30% of residents’ income.
Senator Wahab’s (D-Hayward) SB 555 requires the Department of Housing and Community Development to study the pathways to meet the State’s stable affordable housing needs. This study will review opportunities and resources available for acquiring and preserving existing housing and producing new affordable housing.
“This year our Legislature championed legislation to hold local jurisdictions accountable for approving and producing more affordable housing units, to protect renters from unreasonable security deposits and unjust evictions, and to identify existing unused land to repurpose for housing
I am especially honored to have authored AB 1248, a Renters’ Caucus priority bill that ensures renters are no longer gerrymandered to dilute their growing political representation by promoting an open and independent redistricting process across the State. Together, this comprehensive bill package targets the root causes of the housing and homelessness crisis in our state and provides immediate relief to all Californians.” said Majority Leader Bryan, Vice Chair of the Renters’ Caucus.
The Caucus will meet again in the beginning of the new legislative session to vote on legislative priorities for this year’s legislative session.
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