California Assembly votes to cap rent increases

The California Assembly voted to cap rent increases for many tenants as America's most populous state faces a housing crunch.

A bill, which now goes to the state Senate, would ban landlords from raising rent more than 7% plus inflation over the course of a year. The bill wouldn’t apply to newer housing or to landlords with fewer than 10 single-family homes and it would expire in 2023.

The bill's author, Democratic Assemblyman David Chiu, says the measure will protect tenants from what he called rent gouging.

But the bill faced persistent opposition, including from Realtors, prompting some last-minute concessions narrowing the bill to win over critics.

Democratic Gov. Gavin Newsom called on lawmakers in his State of the State Address this year to pass legislation protecting tenants.