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Committee advances tenant-transition bill AB 2,689 amid split over whether it 'penalizes' upward mobility

California State Assembly Housing and Community Development Committee · April 29, 2026
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Summary

AB 2,689 would create a 'good cause' renewal process for households exceeding 140% of area median income for two consecutive years, add tenant notice requirements, and limit nonrenewal where tenants can afford fair market rent. The committee advanced the bill 11–1 after debate.

Assemblymember Alex Lee presented AB 2,689, which would establish a process allowing nonrenewal of deed-restricted state-subsidized units when a household exceeds 140% of area median income for at least two consecutive years, subject to notice requirements and protections to avoid displacement.

Opponents argued the bill risks "punishing" households that increase their earnings. "I won't be…

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