AB 1157: A New Threat to California’s Rental Housing Industry

On April 24, the California State Assembly’s Housing and Community Development Committee advanced one of the most alarming proposals to date for rental housing providers: Assembly Bill 1157 by Assemblymember Ash Kalra (D–San Jose). While the outcome was expected given the committee’s composition, the 7-5 vote to move the bill forward sent a troubling signal to property owners statewide.

However, the bill, which proposed statewide rent control, was ultimately defeated when the Assembly Housing and Community Development Committee re-referred it to the Assembly Judiciary Committee. The Assembly Judiciary Committee failed to meet the deadline, effectively killing the bill for the 2025 session. That’s a temporary victory—but not the end. AB 1157 is a two-year bill and could return in 2026.

If enacted in 2026, this bill would dramatically amend California’s existing rent cap law, AB 1482, in several dangerous ways:

• Reduce the rent cap from 5% plus inflation to just 2% plus inflation

• Eliminate exemptions for single-family homes and condominiums

• Make rent caps and eviction restrictions permanent, overriding the original sunset provision set for 2030

These changes aren’t just minor tweaks. AB 1157 represents a complete overhaul of the careful compromise made in 2019 with AB 1482, a compromise that was intended to last for a decade to allow time for new housing construction. Legislators promised stability. This bill breaks that promise.

A Proven Failure: Stricter Rent Control Deters Housing Production

The data is undeniable: California is already seeing a sharp decline in housing development. Multifamily housing permits have plummeted—from 60,000 in 2023 to just 30,000 in 2024. This drop coincided with the qualification of Proposition 33, another extreme rent control measure rejected by voters. AB 1157 would only worsen this trend, making it even harder for developers and owners to justify building or maintaining rental housing.

This point was made clear during the hearing, warning that AB 1157 will stifle investment, shrink the housing supply, and worsen the very affordability crisis it claims to address. As Assemblymember Lori Wilson (D–Suisun City) aptly stated, “The best way to suppress prices is to increase supply.” Wilson was one of the few who voted against the bill.

Breaking Trust, Breaking Promises

When AB 1482 passed in 2019, it was framed as a balanced approach—modest rent caps in exchange for a stable policy environment through 2030. AB 1157 completely disregards that agreement. Assemblymember Buffy Wicks (D–Oakland), a co-author of the original bill, even expressed concern during the hearing, warning that this new proposal could negatively impact housing production. While she ultimately voted to move the bill forward, she called for significant stakeholder engagement before any further action.

Assemblymember Joe Patterson (R–Rocklin) pointed out the repeated failures of rent control measures at the ballot box. California voters have said “no” to expanded rent control three times. Yet here we are again, facing another legislative attempt to override the will of the people.

What’s Next?

Rental housing providers must remain vigilant. EBRHA and its members will continue to organize, educate, and engage with lawmakers to stop this dangerous policy from becoming law—not this year, not ever.

How You Can Help

• Contact your state legislators and urge them to oppose AB 1157

Find Your State Representative

• Join EBRHA or your local rental housing association to stay informed and involved.

• Educate your fellow property owners, renters, and neighbors about what’s at stake.

California cannot solve a supply crisis by punishing the very people providing housing. AB 1157 would move our state backward—and rental housing providers across the state are saying: Enough.