California governor signs law capping rent hikes

California is now the second U.S. state to cap rent increases statewide.

Gov. Gavin Newsom signed a law that will cap rent increases at 5% each year plus inflation. The bill also bans landlords from evicting tenants without just cause.

Earlier this year Oregon enacted rent caps of 7% plus inflation.

Alliance of Californians for Community Empowerment Board President Sasha Graham says the law would have helped her three years ago when her rent increased 150%. She was later evicted for no reason and was homeless for three years.

But California Rental Housing Association Executive Director Russell Lowery says the law will force landlords to increase rents to account for potential costly evictions.