SB1157 Withdrawn: California Rent Cap Bill Paused Until 2026

SB1157 Withdrawn: California Rent Cap Bill Paused Until 2026

What Landlords Need to Know Right Now

California rental housing providers can breathe a temporary sigh of relief—Senate Bill 1157, which sought to dramatically lower statewide rent caps, has been withdrawn from the 2025 legislative calendar and reclassified as a “two-year bill.” While this pause doesn’t mean the bill is gone forever, it does give landlords more time to prepare and organize.

🔍 What Was SB1157 Aiming to Do?

SB1157 (previously known as AB1157, also called the Affordable Rent Act) proposed to cut rent cap limits in half for properties under the Tenant Protection Act (AB 1482).

Here’s a breakdown of the proposed changes:

Current Law (AB 1482)

Rent cap = 5% + CPI (max 10%)

SB1157 Proposal

Rent cap = 2% + CPI (max 5%)

This would’ve drastically changed the way landlords operate across California, especially in high-CPI areas where increases have already been tight.

Why Was SB1157 Pulled?

The bill faced strong opposition from landlord groups and industry associations, including:

• The California Apartment Association (CAA)
• The Apartment Association of Greater Los Angeles (AAGLA)
• 
  

These groups argued that lowering rent caps even further would:

• Discourage investment in new and existing rental housing
• Exacerbate the housing shortage
• Push mom-and-pop landlords out of the market entirely
• 
  

Lawmakers responded to the pushback by shelving the bill—for now.

⏳ What Happens Next?

• SB1157 is now considered a “two-year bill”, meaning it may be reintroduced in 2026
• It is currently inactive for 2025
• Landlords should remain informed and stay politically engaged, especially with elections approaching
• 
  

🎥 Want a Simple Breakdown?

Tune into our YouTube Channel where Mary from our office breaks it all down—what SB1157 would’ve done, why it was pulled, and what you should keep in mind going forward.

👉 Watch now: Click here to watch on YouTube

What Should You Do as a Landlord?

• Stay compliant with the existing AB 1482 rent cap structure
• Evaluate whether your property falls under AB 1482 (many exemptions still apply)
• Stay tuned to further legislative developments as the 2026 session approaches
• 
  

📩 Need help understanding how this affects your property? Call us at 626-657-8150 or email us at ss@remaxcir.com directly and we would be happy to help!

Your trusted apartment specialist,

Shant Sherbetdjian
Team Southern California Apartment Group

We’re here to walk you through it. Contact Southern California Apartment Group for a free consultation on your property’s rent control status and how to stay compliant while protecting your investment.