The Office of the Governor of California recently announced that Gov. Gavin Newsom and California legislative leaders approved a cap of 5 percent plus inflation per year on rent increases statewide for the next 10 years. The new bill does not apply a cap to vacant units, and owners can continue to reset rents to market rate at vacancy. The deal, which needs approval of the full California State Legislature, also includes a provision that prevents landlords from evicting certain tenants without landlords first providing a reason for the eviction and requires relocation assistance. The final deadline for the California legislature to send new laws to Gov. Newsom’s desk is Sept. 13, 2019.

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