SACRAMENTO -- City leaders in Sacramento are unveiling a new act designed to protect tenants from rent gouging.
For rent control advocates Alanna and Ava Nadal there was good news coming out of Sacramento City Hall Thursday.
“I am lucky that I have a room and a place. I have two coworkers right now that live in their cars,” Alanna Nadal said.
“My first reaction is there has to be a cap,” Ava Nadal said.
The city has announced what it’s calling the Tenant Protection and Relief Act.
Supported by the mayor and some fellow city council members, the act proposes that owners of apartments and duplexes built before February of 1995 may only increase rent each year up to 6% plus inflation.
The proposed act comes after a year of negotiating involving the city, labor unions and nonprofit advocacy groups.
Jim Lofgren is the senior vice president of the California Apartment Association. He has spoken out against proposed rent control in the city before and said he will do the same when the council votes on the act next week.
For Lofgren and opponents of rent control, any type of mandate imposing a cap is a journey down a slippery slope that may scare away investors and developers.
“It’s an ordinance,” he told FOX40. “Next year there could be an effort to come in here and change it. So, I think the key here is if I am an investor thinking about investing in California, which direction is California headed?”