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Calif. rent control law could have enforcement issues

Posted by Mehran Aram on Thu, Sep 19, 2019 @ 10:09 AM

Last week, California became one of only three states in the Union to impose statewide rent control. Oregon enacted rent controls in March and New York began limiting annual increases on a statewide basis in June.

While the measure won the favor of leases across the state and even the California Apartment Association which previously opposed the bill, outspoken critics remain. Experts familiar with the rent control measures that have been in place in New York City for decades, say California currently lacks the oversight to enforce such sweeping limits on rent hikes. NYC has the Homes and Community Renewal agency which enforces violations of rent control laws. California lacks a dedicated agency or department.

It remains to be seen if the State will fill in this gap. In the interim, the Aramco Report appreciates readers like Nancy C. of Oceanside for chiming in on the subject of rent control. What burning real estate questions do you have? Readers who wish to share their thoughts with us are welcome to reach out to us on social media at #AramcoReport.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Rent, Renters, Rent Control, California Rent Control, Rent Prices, California Apartment Association

Bold, new rent control law passes in Calif.

Posted by Mehran Aram on Sat, Sep 14, 2019 @ 08:09 AM

Lawmakers in California last week approved a statewide limit on annual rent increases for most tenants. This sweeping mandate is the latest step to curb rapidly rising rent prices in the State. Specifically, the new law, which would become retroactively effective as of March this year, caps annual rent price hikes to 5 percent after inflation.

The bill, as of this writing, will head to Governor Gavin Newsom’s desk where he is expected to sign it into law. He has made the housing affordability crisis in California a top priority of his administration.

California voters rejected a similar ballot initiative last year that would have allowed cities to impose more strict local rent caps.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: inflation, Mortgage rates, Housing Affordability, Rent Control, Gavin Newsom, Governor Gavin Newsom, California Rent Prices, Golden State, Rent Hikes, California Rent Control, Rent Prices, Rent Cap, california voters