AB 1157: removal of the sunset clause

Earlier this year, AB 1157—the so-called Affordable Rent Act—sparked intense debate across California’s real estate landscape. While it’s now shelved as a two-year bill, one overlooked detail deserves attention: it proposed eliminating the sunset clause on AB 1482, making statewide rent control permanent.

Under current law (AB 1482), California’s rent cap and just cause eviction rules are set to expire in 2030. AB 1157 would’ve removed that expiration date altogether.

Why does that matter?

Because once a policy becomes permanent, it’s exponentially harder to unwind. Even in markets that need flexibility to attract new development, this type of permanence creates ripple effects—discouraging investment, stalling new construction, and increasing long-term housing scarcity.

The bill will be back in 2026. And the push for permanent rent control is not going away.

Landlords, investors, and CRE professionals: stay sharp. The most dangerous laws are the ones we stop watching once headlines fade.

Disclaimer: This post is for informational purposes only and does not constitute legal advice. Please consult a qualified professional regarding your specific situation.