Legislative Lowdown

June 28, 2025

We are not always the bearer of bad news. The carefully choreographed steps of the eviction process will remain the same.

The term "3-Day Notice to Pay Rent or Quit" is seared into our heads. Yet a disastrous bill (SB 436) would have extended the 3-day period to 14 days, excluding weekends and judicial holidays. We can report that this measure has died on the vine, failing to get enough votes to progress out of the Assembly Judiciary Committee.

The ill-conceived legislation was authored by Senator Aisha Wahab, who, along with Assemblymember Matt Haney, has become the most prolific author of anti-housing, pro-tenant bills coming out of Sacramento. One thing we've learned about tenants' advocates is that they are resilient and won't take no for an answer. After failing to garner enough votes, Wahab has asked for reconsideration. Although the measure has been derailed for now, this may not be the last we have heard of it.


In the media: Daniel says there is no incentive to pay rent on time, the lease will be rendered meaningless.


Keep in mind that we have had to deal with a new law that went into effect January 1, 2025, which gives tenants more time to respond to eviction actions. The last thing housing providers need is another delay in their ability to remove problematic tenants.

 

Not to be discouraged, Senator Wahab's agenda marches on with SB 681, a bill that takes aim at various fees that tenants can be charged. The bill now heads to the Assembly Housing and Community Development Committee and the Judiciary Committee.

Our concern is that folding a myriad of fees into rent would reduce transparency for renters and, ultimately, raise overall housing costs. Moreover, lawmakers should recognize that background checks are a critical tool for maintaining a safe rental community and should not leave landlords blinded to rental risks by restricting tenant screening practices.

While other industries are riding the wave of AI technology, housing providers will be left out.

San Francisco has been a pioneer in banning the use of artificial intelligence and pricing algorithms like those offered by RealPage that share rental pricing data and occupancy rates to raise rents. This technology is widely used by other industries to put a finger on demand, competitor prices, time of year, the level of consumer interest in something, and much more.

Yet there is a growing distaste for housing providers to embrace this technology to set rents. Although we consider these tools to be valuable market intelligence, many lawmakers have likened this sharing of private data to price collusion.

Local jurisdictions have taken steps to restrict algorithmic pricing of rental units, and after this has percolated to the state level, we can expect a rousing debate about the use of AI and a wider, more uniform regulatory regime across California.

In a victory for Larkspur housing providers and common sense, the city has scrapped its attempt to implement a rent registry.

Property owners were blanketed by letters from the city demanding compliance with a rent registry, falsely claiming that the city's rent control ordinance required them to submit detailed data like rent levels, occupancy dates, and rental histories.

On further review, the city's rent ordinance contains no provision authorizing, much less mandating one. It was argued that the threats of enforcement exceeded the city manager's authority. In its June 4 meeting, the City Council took on the topic and directed staff to completely remove the rent registry effort.

Who is responsible for paying for the rising costs of picking up garbage in Oakland?

This upcoming week, the Oakland City Council will be voting on a legal settlement requirement that the city considers allowing landlords to pass through garbage rate increases. Rates have been raised by 48% over the past six years, while RAP has only allowed a 13% increase during this time. This serves as another example of how the CPI does not adequately reflect the costs of operating a rental housing business.

Take a look at how garbage rate increases have far outpaced allowable rent increases. A special thanks to our friends at the East Bay Rental Housing Association for bringing this to our attention.

Committed to keeping housing providers and the real estate providers in the know.

For over three decades, Bornstein Law has been committed to educating the rental housing community on an ever-expanding, fluid regulatory regime.

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