Rent control

A bill to cap annual rent increases statewide at 7% plus inflation cleared the California Assembly this week after author Assemblyman David Chiu (D-San Francisco) agreed to limit the policy to three years, down from an original 10-year proposal with a lower 5% cap. A companion bill, AB 1481, which would have required landlords to state a cause before evicting tenants, failed to get a vote before the Assembly deadline, though its authors say they may try to fold similar protections into Chiu's bill in the Senate.

The rent cap exempts newer construction and small landlords owning 10 or fewer single-family homes, and does not alter existing rent-controlled units or the Costa-Hawkins Act. Landlord groups and the California Association of Realtors, which helped defeat a 2018 rent-control ballot initiative, oppose the measures, arguing they discourage housing development. Backers, including Gov. Gavin Newsom, say the changes are needed to protect millions of cost-burdened renters. Advocates warn a weakened bill could revive a 2020 ballot initiative push by the AIDS Healthcare Foundation.

State Rep. David Morales, 27, a democratic socialist endorsed by Bernie Sanders and Ro Khanna, defeated incumbent Mayor Brett Smiley, 47, in Providence's Democratic primary by a 53%-48% margin, marking the first time a sitting Providence mayor has lost a primary. Morales is heavily favored over Republican Dave Talan in November and would become the city's youngest-ever mayor if elected. Smiley had touted falling crime and the city's regained control over its schools, while Morales built his campaign around affordable housing, rent stabilization, and other progressive policies like social housing and housing cooperatives.

The race became entangled with Israel-related politics: Smiley, who converted to Judaism in 2024, drew criticism from Morales over his role in a pro-Israel advocacy summit, while Smiley opposed a binding November ballot measure — which Providence voters will decide as the largest U.S. city to do so — that could restrict city investment in companies linked to Israel. Smiley also faced backlash over vetoing a rent-control ordinance Morales supported. Providence's police union has voiced unease about Morales, citing his past calls to defund police and warning of possible officer departures, though Morales says he wants to work with law enforcement. Rhode Island Gov. Daniel McKee also lost his primary the same night.