California extends emergency rent-gouging limits to all rental housing and narrows landlord exemptions
Governor Gavin Newsom signed SB 1365 on September 30, 2026, amending Penal Code section 396. From January 1, 2027, the emergency price-gouging ban covers rental housing regardless of initial lease length, and existing exemptions become affirmative defenses. Rent increases above 10% are defensible for repair costs only if incurred within a year before the emergency, while the unit was rented or offered for rent or intended for rent within six months.
Enrolled text (California Legislative Information) → · Office of Governor Gavin Newsom