Legislation recently introduced at the California State Capitol aims to implement a one-year freeze on rent increases across Los Angeles County. The proposed measure, Assembly Bill 246 (AB 246), was introduced by Assemblyman Isaac G. Bryan and seeks to stabilize rents at levels charged as of January 7, 2025, with no increases allowed during the freeze. The initiative would take effect following the end of the region’s state of emergency related to the Palisades Fire and windstorm conditions.
This proposal comes in response to widespread reports of significant rent increases across LA County. Under AB 246, violations of the freeze could result in civil penalties of up to $10,000 per infraction, enforceable by district attorneys.
While the bill has sparked support from tenant advocates, the California Apartment Association (CAA) has expressed concerns. The organization, while opposing rent gouging, argues that freezing rents for an extended period could unintentionally worsen the housing shortage. In a letter to Assemblyman Bryan, the CAA warned that the freeze may deter property owners from renting out additional spaces such as rooms, accessory dwelling units, or secondary homes, citing increased risks and financial limitations as key issues.
“By freezing rents for 12 months, AB 246 will inadvertently reduce the availability of housing,” the letter stated. The CAA emphasized that the potential pullback by property owners could exacerbate LA County’s existing housing crisis.
As the legislative process unfolds, the proposal is expected to spark continued debate among policymakers, housing advocates, and property owners alike.
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Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax (www.griffintax.com) and REVVED Up Accounting (www.revvedupaccounting.com). In addition, Steve founded Madison Avenue Technology (www.madisonave.tech). With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.
