Industry advocacy efforts help to block a bill restricting owner rights.
Thanks to industry advocacy efforts, including those from NAA local affiliates, AB 854, a bill aimed at taking away the rights of owners in the rental housing industry, has been defeated in California. Assemblyman Alex Lee declined to bring the bill for a vote, which led to the bill dying on the third reading. The bill had initially passed a committee vote in January.
The bill targeted owners by creating a five-year holding period prior to the use of the Ellis Act. “We are pleased that our advocacy efforts stopped AB 854 from continuing on the dangerous path of becoming law and erasing much-needed protections provided by the Ellis Act,” says Alan Pentico, CAE, Executive Director, Southern California Rental Housing Association and NAA Association Executive Council President. “Only in California is a law needed to go out of business when facing financial hardship. This isn’t the first time we’ve seen legislation of this kind, and it likely won’t be the last. As rent control efforts gain steam, it will be more important than ever to preserve the Ellis Act and the ability for owners to get out of the rental business.”