House panel votes up bill to protect affordable housing tenants from mid-lease rent increases

House panel votes up bill to protect affordable housing tenants from mid-lease rent increases

A ‘loophole’ in the law today allows rent hikes in the middle of leases for affordable units.

AB 846: Maximum Allowable Rental Increases in Affordable Housing Properties

Passed in the state legislature last year, AB 846 caps allowable rent increases in most affordable housing. This helps insulate low-income renters in deed-restricted affordable housing from large increases in rent driven by Santa Clara County’s sharply rising area median income. A necessary regulation to prevent sudden, unsustainable rent increases for low income tenants, AB 846 may also present challenges for affordable housing developers who r…