California will cap rent increases under a new law Gov. Gavin Newsom said he would sign Tuesday, the most significant piece of housing-related legislation in a year that also saw the shelving of a measure to relax zoning and spur more construction.
Mr. Newsom, a Democrat, said he would sign the bill into law at a ceremony in Oakland, Calif. The governor has said the rent caps and tenant protections are necessary to help people being squeezed out of their homes. The law limits annual rent increases at 5%, plus the rate of inflation, and adds some barriers for landlords seeking to evict people.
“They will provide California with important new tools to combat our state’s broader housing and affordability crisis,” Mr. Newsom said when the rent measure passed the legislature Sept. 11.
The Housing Gnomes’ three-step plan works like this:
1. Make construction more costly, and also cap prices.
3. Housing for everyone!
Fortunately, I have a huge supply Unexpectedlys for use as the steps play out.