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Committee advances tenant-transition bill AB 2,689 amid split over whether it 'penalizes' upward mobility
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 supporting the bill today because I think this is fundamentally a problem...where we should be setting people for success rather than punishing them for their success," one member said (identified in the transcript as Shaleen). Supporters said the measure creates necessary turnover in limited deed-restricted units so newly available units can serve very low-income households.
Committee members raised related operational concerns, including the wide variation in waiting-list practices across counties, transparency in who is on lists, and the possible interaction with incoming HUD voucher distributions. One member urged that the bill be part of a broader effort to build housing at all levels and to ensure smooth transitions so families can stay in their communities if they choose.
The committee moved the bill as amended and recorded a rollcall; the clerk announced the result as 11 to 1 in favor of advancing AB 2,689. The author and members agreed to continue work on implementation details and supports to reduce displacement risk.
Next steps: AB 2,689 was advanced by committee (11–1); the author signaled continued collaborative work on operational details, notices and protections for tenants.
