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Legislative Spotlight: What Landlords Need to Know About AB 246
January 22, 2025 0 Comment Category: Estate LawThe California Legislature is considering a pivotal new bill with potential wide-reaching implications for Los Angeles County landlords. Assembly Bill 246, introduced by Governor Gavin Newsom, is set for a vote in the Assembly on February 15, 2025. This proposed legislation introduces a temporary, more restrictive version of Proposition 33 aimed exclusively at Los Angeles County.
What Does AB 246 Propose?
If passed, AB 246 would impose a 12-month vacancy control on rental properties rented or offered for rent within the last year. Key provisions include:
- Rent Freeze: Rents would be locked at rates charged on January 7, 2025.
- Vacancy Rate Lock: Rent for recently vacated units would match the rate paid by the previous tenant.
- Prevention of Price Gouging: Increases on vacant units would be tied to long-term rent-controlled levels.
Additionally, the bill authorizes district attorneys to enforce compliance with penalties of up to $10,000 for violations.
Key Features of AB 246
- Applicability: Overrides existing rent control laws for Los Angeles County landlords.
- Enforcement Power: District attorneys will have authority to prosecute improper rent increases.
- Duration: Restrictions apply for 12 months following the end of the declared state of emergency.
- Immediate Implementation: The bill would take effect immediately as an urgency statute, if passed.
What Landlords Should Do Now
It’s important to note that AB 246 is not yet law, and the final bill may change before a vote. However, landlords with rent increases scheduled to take effect on or after February 1, 2025, should take proactive steps to evaluate potential risks and compliance strategies.
How We Can Help
Navigating the complexities of proposed legislation can be daunting. At Davidovich Stein Law Group, we’re here to provide practical, informed guidance to landlords and property managers. Our services include:
- Reviewing rental agreements to ensure compliance.
- Advising on strategies for pending or planned rent increases.
- Explaining how AB 246 may affect your rights and obligations.
Stay Ahead of Legislative Changes
We are closely monitoring AB 246 and will provide updates as new information becomes available. To discuss how this legislation might impact your rental properties, contact us to schedule a consultation.
Your bottom line is our top priority.
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