CaliforniaEmergency rent limits would cover homes with longer initial leases
Landlords renting California homes under initial leases longer than one year would face the 10% emergency rent increase rule when an emergency is declared, for 30 days afterward, and during extensions.
What it does
Landlords renting homes on initial leases longer than one year would face the 10% rent increase rule when an emergency is declared, for 30 days afterward, and during extensions. Proven defenses and stricter local rent limits still apply.
Landlords could defend higher emergency rents if they prove repairs or additions beyond routine upkeep directly caused the increase and cost money in the year before the declaration. The home must have been rented, advertised, or offered for rent when costs arose, or they must prove a plan to offer it within six months of the work already existed in that year.
For homes priced by the day after an emergency declaration, but not in the prior year, the temporary 10% rent increase rule would start from one-thirtieth of 160% of a federal fair market rent figure. Fully furnished homes may use a figure 5% higher.
Sellers of covered goods and services, disaster repair and cleanup contractors, and hotel or motel operators would have to prove a listed reason to defend emergency price gouging charges. The price limits run for 30 days for sellers and hotels or 180 days for contractors after a declaration, unless extended.
Argument forRenters with initial leases over one year could avoid some rent hikes above 10% during the 30-day emergency period or extensions, unless a landlord proves a defense.
Argument againstLandlords who paid for repairs beyond routine upkeep more than a year before an emergency declaration might lose that reason to defend a higher rent.
More detail
Landlords would face the 10% emergency rent increase limit on rental homes regardless of initial lease length. The rule covers California rental homes offered to current or future tenants, including homes with initial leases longer than one year. Landlords may defend increases tenants agreed to in a contract before the declaration or increases directly caused by certain repair or addition costs. Stricter local rent limits still apply. The rule starts when a state or local emergency is declared and applies for 30 days afterward and during any extension of the declaration.
A landlord may defend an emergency rent gouging charge by proving that repair or addition costs directly caused the increase. This defense applies to landlords charged with raising emergency rent above the allowed amount. The costs must go beyond routine upkeep. The home must have been rented, advertised for rent, or offered for rent when costs arose. Otherwise, the landlord must prove that a plan to offer it for rent within six months of the work already existed within the year before the declaration. The repair or addition costs must arise within one year before the emergency declaration.
Landlords would use a new starting rent figure to measure emergency rent increases for certain homes priced by the day. It covers rental homes advertised, offered, or charged by the day after the declaration if they had no daily price in the prior year. A fully furnished home may use a starting figure 5% higher. The calculation applies during the 30-day emergency rent period and any extension; the preceding year determines whether the home previously had a daily price.
Covered sellers, disaster repair and cleanup contractors, and hotel or motel operators would have to prove a listed reason to defend a price gouging charge. This applies to sellers of covered goods and services, disaster repair and cleanup contractors, and hotel or motel operators. Sellers and contractors can prove added supplier costs or qualifying labor and material costs. For labor or material costs, the price can be no more than 10% above costs plus the usual markup. Hotel or motel operators can prove added business costs, regular seasonal rates, or earlier contracts. The sellers' and hotel limits run for 30 days after a declaration; the contractor limit runs for 180 days. Officials may extend the limits, with each local extension lasting no more than 30 days.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State. Chapter 1028, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Sep 10Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 31Assembly amendments concurred in. (Ayes 27. Noes 10.) Ordered to engrossing and enrolling.Major
- Vote recorded SB 1365 Allen Senate Third Reading By Kalra. Result: pass.Lower
- Vote recorded Unfinished Business SB1365 Allen et al. Concurrence. Result: pass.Upper
- Aug 31In Senate. Concurrence in Assembly amendments pending.
- Aug 31Read third time. Passed. (Ayes 48. Noes 19. Page 7007.) Ordered to the Senate.Passed Assembly
- Aug 20Ordered to third reading.Minor
- Aug 20Read third time and amended.Major
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read second time and amended. Ordered to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Lower
- Aug 13From committee: Do pass as amended. (Ayes 11. Noes 3.) (August 13).Major
- Aug 13Assembly Rule 63 suspended.
- Aug 5August 5 set for first hearing. Placed on suspense file.
- Jul 1From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (June 30). Re-referred to Com. on APPR.Minor
- Jun 30
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 16From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 8. Noes 3.) (June 16). Re-referred to Com. on PUB. S.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Public Safety]. Result: pass.Lower
- Jun 16Coauthors revised.
- Jun 4Referred to Coms. on JUD. and PUB. S.Minor
- May 27In Assembly. Read first time. Held at Desk.Minor
- Vote recorded 3rd Reading. Result: pass.Upper
- May 27Read third time. Passed. (Ayes 29. Noes 9. Page 4502.) Ordered to the Assembly.Passed Senate
- May 19Read second time. Ordered to third reading.Minor
- May 18Read second time and amended. Ordered to second reading.Major
- May 18From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4274.) (May 14).Major
- May 14
- Vote recorded Do pass as amended. Result: pass.Upper
- May 8Set for hearing May 14.
- May 4May 4 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 24Set for hearing May 4.
- Apr 22From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1. Page 3984.) (April 21). Re-referred to Com. on APPR.Minor
- Apr 21
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Apr 10Set for hearing April 21.
- Apr 8From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 10. Noes 2. Page 3757.) (April 7). Re-referred to Com. on PUB. S.Minor
- Apr 7
- Vote recorded Do pass, but first be re-referred to the Committee on [Public Safety]. Result: pass.Upper
- Mar 26From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.Major
- Mar 19Set for hearing April 7.
- Mar 4Referred to Coms. on JUD. and PUB. S.Minor
- Feb 23Read first time.Minor
- Feb 23From printer. May be acted upon on or after March 23.
- Feb 20Introduced. To Com. on RLS. for assignment. To print.Introduced
HousingConsumer ProtectionEmergency Management