The following is an update on various housing-related legislative bills, their status and C.A.R.'s position.

Bill That Limits Mortgage Interest Deduction Dies
C.A.R. has been OPPOSING AB 1905 (Chiu), a bill that would have dramatically limited mortgage interest deductibility on primary residences and would have abolished the mortgage interest deduction for second homes. AB 1905 was scheduled for a vote on May 20th in the Assembly Housing Committee. At the last minute, the bill’s author chose not to pursue the bill further and pulled the bill from the committee agenda. This was the only opportunity for the bill to be voted on, so it’s effectively “dead” for this year.

C.A.R. was the only statewide organization opposing the bill. Thank you to everyone who called and texted their legislators to oppose the bill.

California still finds itself with an unprecedented budget deficit. As the state’s budget continues to evolve, C.A.R. will be monitoring it to ensure that housing isn’t unfairly targeted for taxes to balance the budget.

C.A.R.-Opposed Bill that Could Increase Cost of Mortgages Moves Forward
C.A.R. continues to oppose AB 2501 (Limon), a bill that, among other things, could affect the availability and cost of all mortgages in California. C.A.R. is working with a coalition of other organizations to either defeat the measure or negotiate amendments that don’t so dramatically impact mortgage lending. The bill was recently approved by the Assembly Banking Committee.

C.A.R. Opposes Measure to Unfairly Penalize Rental Property Owners
C.A.R. OPPOSES AB 828 (Ting), a bill that, as originally amended, would have effectively forced a 25 percent reduction in rents. The bill was recently amended, after a C.A.R. red alert, and opposition from C.A.R. allies, to remove the 25% reduction requirement. However, C.A.R. still opposes the bill because it offer extensive financial and eviction protections for tenants yet provides no financial protection for property owners, who still must pay their mortgages and have a legal obligation to repair and maintain their properties. Specifically, in an unlawful detainer lawsuit for nonpayment of rent, AB 828 requires courts to assume there is no financial hardship for a property owner who owns 10 or more units. AB 828 has still not been scheduled for a vote.

C.A.R. Opposes Bill that Prevents Commercial Evictions
C.A.R. opposes SB 939 (Weiner), a bill that, in response to the coronavirus (COVID-19) pandemic, seeks to prohibit commercial evictions of small businesses and nonprofits. C.A.R. opposes this measure as an excessive response that will create serious problems for commercial property owners and hence their tenants. SB 939 passed the Senate Judiciary Committee last week. C.A.R. continues to work with coalition partners to oppose this measure.

C.A.R. Supports Bill to Limit the Debt that Would Force the Sale of a Principal Residence
C.A.R. supports AB 2463 (Wicks) that would prohibit lenders from forcing the sale of a principal residence to recover for unsecured debts like medical bills. In unprecedented times like these, this update to the law is welcome to offer security to homeowners who face debt . AB 2463 passed out of the Assembly Judiciary Committee this week.