Help Stop SB 493 and SB 1365
Expands Anti Price Gouging Rules & Temporary Rent Control
Background: Under current law, the President, Governor, or local authorities may declare a state of emergency for reasons like earthquake, flood, fire, riot, storm, drought, disease outbreak, or other disasters. California's price gouging statute caps rent increases at 10% during a declared state of emergency.
SB 493, authored by Senators Josh Becker and Ben Allen, would expand the state’s existing anti-price gouging laws to include war or armed conflict as a valid trigger for a declared state of emergency.
SB 1365, authored by Senator Ben Allen and Assemblymember Ash Kalra, would revise existing exemptions to the prohibition against rental housing price gouging following a declared state of emergency by revising the definition of housing, narrowing scope of the repairs-and-improvements exemption in existing law, and capping the price of housing that is newly converted to a daily rate.
Use the customizable letter to the right to Take Action today and ask your Assemblymember to oppose SB 493 and SB 1365.
Additional Talking Points:
- Unworkable timing requirements: Housing providers cannot predict when a disaster will strike, document intent to rent six months out, or control when a tenant chooses to vacate. Yet, SB 1365 conditions cost recovery on this kind of foresight and penalizes owners for circumstances outside their control.
- Fewer units available when they're needed most: Both SB 493 and SB 1365 undermine the Costa Hawkins Rental Housing Act by narrowing cost recovery and imposing vacancy control. This could discourage owners from making necessary upgrades or listing units during an emergency. This worsens the housing shortage for displaced residents at a time when they need housing most.
- More legal exposure, more litigation risk: Expanding the anti-price gouging statute's definition of housing and layering new compliance requirements onto already complex requirements increases the risk of inadvertent violations and costly litigation for housing providers struggling to navigate an emergency.