A controversial rent control bill to impose a draconian cap on rents and expand rent control to single-family homes has been pulled from consideration for the remainder of 2025, following strong opposition from rental housing providers across the state.
Assembly Bill 1157, introduced by Assembly Member Ash Kalra (D-San Jose), aimed to reduce the current rent cap under the existing law, AB 1482, from 5% plus inflation (capped at 10%) to 2% plus inflation (capped at 5%). The bill also sought to extend these caps to single-family homes and condominiums and certain mobile homes, which are largely exempt under current law.
The measure stalled in the Assembly Judiciary Committee and was withdrawn by Kalra – who is the chairman of the committee. Kalra issued a statement claiming he would continue fighting for more severe rent controls, saying lawmakers must “stand up to the landlord lobby” to advance housing as a so-called “human right.”
The 12-member Judiciary Committee is heavily stacked with Democrats; only three of its members are Republicans.
Rent control is a species of price control, which has a long track record of failure as public policy.
The decision follows an aggressive campaign from rental-housing industry groups, including the Apartment Association of Orange County (AAOC) and the California Rental Housing Association (CalRHA), who argued the bill would undermine housing supply and penalize property owners still recovering from the pandemic.
“Rental housing providers continue to recover from the financial hit they experienced during the COVID-19 pandemic due to lost rent and the impact of rising inflation and other costs,” said Amy Fylling, AAOC Vice President and Chair of CalRHA’s Legislative Committee. “Further reducing the rent cap would only worsen the financial strain on rental property owners and operators, while doing nothing to increase housing supply and availability.”
Opponents of AB 1157 also pointed to repeated rejections of rent control initiatives by California voters. Ballot measures seeking to expand local rent control—Propositions 10, 21, and 33—were defeated in 2018, 2020, and 2024, respectively.
“California voters have three times rejected the expansion of rent control policies,” said AAOC President John Tomlinson. “It is our hope that this will factor into any further policy discussion that occurs on this bill and that the author will consider alternatives for addressing our state’s housing affordability challenges that do not cause further financial harm to rental housing providers.”
Assemblywoman Sharon Quirk-Silva (D-Fullerton) voted for the bill last week in a different committee. During her legislative career, Quirk-Silva cultivated an image as a moderate, pro-business Democrat, an image often burnished by business groups.. She is now term-limited out of office and no longer needs business community support.
Although the bill is effectively shelved for the year, AAOC said it would continue to monitor any developments and remain engaged on legislation impacting rental housing operations across the state.
