In a recent government meeting, Assembly Bill 846 was introduced to address the issue of rent increases for low-income renters living in properties funded by the Low-Income Housing Tax Credit (LIHTC) program. The bill aims to protect these tenants from significant rent spikes that can occur due to the current federal regulations, which allow property owners to raise rents based solely on increases in the Area Median Income (AMI) without considering tenants' income levels.

Assemblymember advocating for the bill highlighted that while tenants initially qualify for affordable rents, they often face unpredictable and unaffordable rent increases over time. This situation has left many tenants vulnerable, despite living in what is supposed to be affordable housing. The proposed legislation seeks to provide clarity by directing the Tax Credit Allocation Committee (TCAC) to impose a cap on rent increases for existing LIHTC properties, similar to the regulations recently adopted for new tax credit allocations.

Anya Lawler from the California Rural Legal Assistance Foundation supported the bill, noting that tenants have been experiencing exorbitant rent hikes, including a recent case where low-income seniors faced a 20% increase. The bill aims to establish a rent cap of 5% plus the Consumer Price Index (CPI), or no more than 10%, which has been effective in market-rate properties since 2019.

While the bill received support from various advocacy groups, concerns were raised about its potential impact on the delivery of new affordable housing units. Some members expressed apprehension that imposing stricter rent controls might hinder developers' ability to finance and build new projects. However, proponents of the bill reassured that the proposed regulations would not impede financial viability, as they include provisions for waivers in cases of financial distress.

The meeting concluded with a call for public support, as advocates emphasized the urgent need for protections against rent gouging in LIHTC properties, aiming to ensure that affordable housing remains accessible to those who need it most.