California’s legislature has advanced several measures with direct implications for multi-family owners and developers. While one of the most aggressive rent control proposals has been sidelined for now, two other tenant-friendly bills are on track for the Governor’s desk.
Rent Control Expansion Paused
Senate Bill 522, authored by Sen. Aisha Wahab, sought to impose rent caps and just-cause eviction rules on new units built to replace housing damaged or destroyed by natural disasters. The proposal raised concerns about further discouraging post-disaster rebuilding and new construction. Thanks in part to industry pushback, the bill stalled in the Assembly. It is now designated a “two-year bill,” which means it could resurface in 2026—either in its current form or with amendments. For now, it’s effectively off the table.
Two Tenant-Oriented Bills Advance
While SB 522 has been halted, two other measures opposed by property groups are moving forward:
Assembly Bill 246 (Bryan) – The “Social Security Tenant Protection Act of 2025” would allow renters to use a disruption in Social Security benefits as a legal defense against eviction. If signed into law, this could complicate the unlawful detainer process and extend timelines for recovering possession.
Assembly Bill 628 (McKinnor) – This measure mandates that all leases signed, renewed, or amended after January 1, 2026, include a landlord-provided stove and refrigerator in good working order. It also requires landlords to repair or replace recalled appliances within 30 days of notice. While tenants may opt to supply their own refrigerator, they retain the right to later request one from the landlord with 30 days’ notice.
Investor Takeaway
For multi-family owners and operators, these developments highlight the ongoing trend of legislative efforts to expand tenant protections in California. Although SB 522 is sidelined, its return remains a possibility. Meanwhile, AB 246 and AB 628, if signed, would add new compliance obligations and potentially increase operating costs. Investors should prepare for added regulatory friction while continuing to monitor next year’s session for renewed rent control proposals.
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