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Law and regulation · June 2, 2025

Governor vetoes AB 280, which would have capped rent increases at 5 percent for seniors and required fee appendices

On June 2, 2025, Governor Lombardo returned AB 280 unsigned. It would have capped rent increases for residents age 62 or older or on Social Security and added lease appendices on fees and rights.

Assembly Bill 280 would have put a temporary limit on rent increases for some residents and added new lease paperwork. The governor vetoed it, so none of that is law.

What the bill would have done

According to the enrolled text, AB 280 would have:

  • Barred a landlord, from July 1, 2025 through December 31, 2026, from renewing or entering a new rental agreement that raises rent by more than 5 percent over the rent in effect on June 30, 2025. This applied to a resident who was 62 or older, or who relied on Social Security payments, including retirement, survivors', supplemental security income and disability benefits.
  • Required each rental agreement to include a separate appendix explaining every fee that may be charged and its purpose, and made it unlawful to charge a fee not listed there.
  • Required a second appendix explaining the resident's rights under federal and state law and local ordinances.
  • Required refunds of application fees in some cases and barred screening fees for minors in the household.

The veto

Governor Lombardo's letter is dated June 2, 2025. He wrote that the bill's requirements would burden owners and complicate renting, that the paperwork could overwhelm both sides, and that the 5 percent limit could encourage rent hikes before the cap took effect and discourage investment in rental housing.

Who this affects

Nothing changes for owners. There is no cap on increases for older residents or residents on Social Security. The fee refund and minor screening rules did become law through AB 121, covered in our earlier posts.

Effective date

None. The bill was vetoed.

What owners should do

  • Keep following AB 121's fee and payment rules, which took effect October 1, 2025.
  • Keep your rental agreement's fee disclosures current, since existing law already requires them.
  • Record the date and reason for each rent increase, along with the notice you gave.
  • Watch the 2027 session for rent limit proposals.

This is a summary, not legal advice. Your attorney can advise on your own rent increases.

Questions about how this affects your property?

Talk to our team. We handle compliance changes for every property we manage.