AB 1157 Pulled: What It Means for California Rental Property Owners

Some good news for California rental property owners!

Assembly Bill 1157 (AB 1157), which aimed to severely tighten rent control laws across the state, has officially been pulled back and will not move forward this legislative session. At Authority Property Management, we closely monitor legislation that impacts rental housing providers in Redding, CA, and beyond. This update is a clear reminder that when the rental community stands together, we can shape the future of property rights.

What Was AB 1157?

Introduced by Assemblymember Ash Kalra, AB 1157 proposed several big changes to California's existing rent control law (AB 1482), including:

• Capping rent increases at 2% plus CPI or 5%, whichever is less (compared to today’s 5% plus CPI or 10% cap).
• Eliminating exemptions for single-family homes, ADUs, and condos — meaning almost every rental could have fallen under statewide rent control.
• Making rent caps permanent, removing the original sunset clause designed to reevaluate policies over time.

While this was framed as a tenant protection measure, it would have seriously restricted property owners' ability to adjust rents in response to rising costs like insurance, utilities, taxes, and basic maintenance.

How It Was Defeated

Thanks to a massive push from organizations like the California Rental Housing Association (CalRHA) — and countless landlords, property managers, and advocates like you — the bill was withdrawn before it could gain traction. AB 1157 is now considered a two-year bill, meaning it could resurface in the future, but for 2025, property owners can breathe a little easier.

This is a big win not just for big investors, but also for the everyday landlords and mom-and-pop rental owners who play such a huge role in keeping California's housing market alive.

What This Means for Redding Property Owners

For now, no changes are being made to the current statewide rent cap rules under AB 1482:

• Rent increases are still allowed at 5% plus CPI (inflation) up to a maximum of 10% annually.
• Exemptions for single-family homes, ADUs, and condos still apply (as long as proper disclosures are provided to tenants).
• The original sunset clause remains in place, meaning future lawmakers will need to revisit statewide rent control again rather than locking it in forever.

Bottom line: property owners still have flexibility to navigate rising costs without being squeezed by even stricter regulations.

Stay Vigilant

Even though AB 1157 is off the table for now, housing laws in California are always evolving. At Authority Property Management, we remain committed to keeping you informed and advocating for fair policies that support healthy rental markets in Redding, CA and across the state.

Need Help Managing Your Property or Staying Compliant?

📞 Call us at (530) 410-6085 to discuss how we can help you manage your rental property with confidence.

Wrap Up

Today’s news is a powerful reminder that property owners’ voices matter.
Thanks to strong advocacy, reasonable property rights were preserved — but the effort to maintain a fair and functional rental market is ongoing.

👉 Stay tuned, stay informed, and lean on your trusted team at Authority Property Management to keep your investments strong.