Governor of California Gavin Newsom signed a law that will regulate rent increases for housing. This writes Yahho!News.
The new law limits annual rent increases to 5% plus the rate of inflation, and also adds protections for tenants, to prevent landlords to evict them without reason.
The law does not apply to housing, received a certificate of occupancy within the previous 15 years, the dormitories of the University or College as well as living quarters for one family, owner occupied.
“Millions of renters in California I see only one rent increase or eviction, said Assemblyman David Chiu, who wrote the bill. Something that someone renting a property does not make it less worthy.”
According to the analysis of rent control conducted by the Institute for fair and inclusive society the Haas at the University of California at Berkeley, in California, there are over 17.5 million tenants, and slightly more than half of them spend 30% or more of their income on rent.
Newsome said that the law provides for some of the most rigorous rent control in the United States. He also added that “a vital tool” to combat the crisis of homelessness “is to protect tenants from price increases and evictions.”
California is experiencing a crisis. The state ranks second in terms of poverty in the United States. Meanwhile, according to Forbes, cities in California account for six of the 10 most expensive in the country.
In San Francisco homelessness has increased by 17% in the period from 2017 to January 2019 the city is home to more than 8,000 homeless. In the County of Los Angeles number of people without a certain residence has increased by 12% from 2018 to 2019. In January 2019, the County of Los Angeles was about 59 000 homeless.
During the signing ceremony of the bill Newsom said that one law is not sufficient to resolve the housing crisis in California.
“We need to solve this problem, summed up by the news. — We need to build more affordable housing.”
As previously wrote ForumDaily:
Despite the fact that the state is investing billions of dollars, the crisis amplified the homeless in Los Angeles, San Diego, Sacramento and San Francisco. Over the past year the number of homeless in the County of Los Angeles grew by 12 percent, and this area is home to the largest number of homeless people in the country.