2026 C.A.R. Red Alerts – Year-to-Date Summary
For your reference, below is a summary of the four C.A.R. Red Alerts issued in 2026, including the dates and key details about each bill.
1. AB 1157 (Kalra) | OPPOSE
January 9, 2026
Would have made California’s statewide rent-control law permanent by eliminating its 2030 sunset date.
Would have lowered the annual rent-increase cap to 2% plus CPI or 5%, whichever is lower.
Would have removed existing exemptions for certain single-family homes, condominiums and ADUs.
C.A.R. opposed the bill because of concerns that it would discourage housing investment, reduce rental-housing supply and harm small property owners.
2. AB 1406 (Ward) | OPPOSE
January 21, 2026
Applied to purchases of newly constructed, owner-occupied condominiums from developers.
Would have doubled the statutory liquidated-damages cap from 3% to 6% of the purchase price.
Could have placed a substantially larger portion of a buyer’s deposit and savings at risk if a transaction did not close.
C.A.R. opposed the bill because it would weaken longstanding consumer protections for California homebuyers.
3. AB 736 (Gonzalez) | OPPOSE
June 24, 2026
Would have allowed real estate transfer taxes of up to 3% of a property’s sale price.
By comparison, the existing transfer-tax limit cited for general-law cities was 0.11%.
C.A.R. opposed the bill because it could lead to substantially higher transfer taxes, increasing the cost of buying and selling real estate.
Certain high-value single-family homes would not have received the same cap protections provided to multifamily and commercial properties.
4. AB 2005 (Ahrens) | OPPOSE
August 31, 2026
Would have significantly expanded the SB 9 urban lot-split process beyond its original homeowner-focused purpose.
Would have allowed investors and developers to use the streamlined lot-split process without personally occupying one of the resulting homes.
Could have allowed one single-family parcel to be divided into as many as four separately saleable homes.
C.A.R. opposed the bill because its owner-occupancy protections were not meaningfully enforceable and it could facilitate investor-driven development with reduced local review.
