CAL.Regulation
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
Key points
- SB 1365 amends Penal Code section 396, the misdemeanor price-gouging law, effective January 1, 2027.California Legislative Information
- Housing covered by the emergency limit now includes all rental housing, not only units with initial lease terms of one year or less.California Legislative Information
- Exemptions from the price-gouging ban are recast as affirmative defenses.California Legislative Information
- Repair-cost increases above 10% are a defense only for costs incurred within a year before the emergency, with the unit rented or intended for rent.California Legislative Information
- Daily-rate rentals not offered daily in the prior year are capped at 1/30 of the periodic-lease benchmark of 160% of HUD fair market rent.California Legislative Information
- Newsom signed SB 1365, by Senator Benjamin Allen, on September 30, 2026.Office of Governor Gavin Newsom
Sources2 articles across 2 outlets
California Legislative Information
Office of Governor Gavin Newsom
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RegulationCal.California SB 1365 price gougingConsumer protectionCriminalHousingReal estateFor practitionersFor governance