AB 754 Goes to Governor

Governor Newsom signed previous Floating Home rent control legislation | post by Larry Clinton

The FHA’s bill amending previous rent control legislation (AB 754) has now passed the Senate and Assembly without a single ‘no’ vote. According to Marin Country administrative analyst Talia Smith, “This is a rare feat, and shows just how much on-the-ground work and engagement has been put in to ensure the Legislature’s strong confidence in moving forward this proposal.”

The final step is getting the Governor’s signature — and then this bill will become law on January 1, 2026.

As the bill reaches Governor Newsom, so will a letter of support from the Marin County Board of Supervisors. And Talia Smith encourages residents to send their own support letters to the Governor, requesting his signature.

If you previously sent Talia a support letter to be posted in the Position Letter Portal, you can simply change the date, re-address it to the governor at:

The Honorable Gavin Newsom
Governor of California
1021 O Street, Suite 9000
Sacramento, CA 95814

Then add the subject line:
Support letter for AB 754 (Connolly) – Floating home marinas: rent caps: County of Marin – REQUEST FOR SIGNATURE.

And finally, print and sign the letter, save it as a PDF, and forward it to Talia.Smith@marincounty.gov.

If you intend to send a new letter, here’s the text of the County letter for inspiration:

September 10, 2025
The Honorable Gavin Newsom
Governor of California
1021 O Street, Suite 9000

Sacramento, CA 95814

RE: Sponsor letter for AB 754 (Connolly) – Floating home marinas: rent caps: County of Marin – REQUEST FOR SIGNATURE

Dear Governor Newsom,

On behalf of the Marin County Board of Supervisors, I am pleased to express our strong support as the Sponsor of Assembly Bill 754, which refines the Floating Home Residency Law solely for the County of Marin, and respectfully request your signature. We are proud that this bill was passed by the Assembly and Senate without a single “No” vote.

This legislation is the result of more than two years of sustained collaboration among the Floating Homes Association (FHA), floating home marina owners, County officials, and of course, your office. AB 754 offers a thoughtful, consensus-driven solution that maintains robust protections for Marin’s floating home residents while supporting the long-term financial sustainability and infrastructure needs of Marin’s floating home marinas.

AB 252 (Bonta, 2022) was enacted in response to significant berth rental rate hikes in Alameda County, but its one-size-fits-all provisions created unique challenges in Marin, where the vast majority of the Bay Area’s floating homes are located. Marin County has 425 floating homes, compared with 42 in Alameda County and 11 in Contra Costa County.

In Marin, long-standing CPI-only lease structures and periodic rent realignments (pre-AB 252) tied to home sales had historically been in place to balance long-time homeowner rent stability with the infrastructure needs faced by marina operators amidst sea level rise and flooding events. AB 252 unintentionally changed the landscape in Marin. The 2022 law’s uniform rent cap of CPI plus 3%—up to 5%—often exceeded the lower CPI-based increases many Marin residents had experienced under existing long-term leases. At the same time, the prohibition on berth rent adjustments when homes changed hands (vacancy control) undermined marina owners’ ability to fund essential capital improvements such as raising parking lots, and dock and utility upgrades. In response to AB 252, some marinas shifted from 10- or 20-year leases to 1-year terms and introduced new fees to recoup lost revenue.

In response to changes after AB 252, the FHA formed a Legislative Action Committee (LAC) composed of homeowners from all of Marin’s floating home marinas. The LAC met regularly—often weekly—to explore Marin-tailored refinements to the existing state law.

At the same time, Marin’s marina owners — all of whom were not aware of AB 252 before its passage—also reached out to County and state officials to share their perspectives. They expressed their concern being left out of the AB 252 process and emphasized the challenges the new restrictions posed to long-term planning and needed capital improvements. County officials have been engaging deeply with both groups over this time to understand AB 252’s impacts in Marin and help facilitate a constructive path forward.

Recognizing their shared interest in the long-term viability of Marin’s floating home communities, the LAC and Marin’s marina owners came together in late 2024 for a series of direct, good-faith negotiations. Those efforts produced the balanced compromise now reflected in AB 754, which changes state law only for floating homes in the County of Marin.

The bill:

  • Restores Balance in Annual Rent Caps: Replaces AB 252’s fixed 5% cap with a CPI-based formula (3% floor, 7.5% ceiling). Any CPI increase above 5% is halved to reduce volatility.
  • Allows Limited Vacancy Decontrol: Permits marina owners to adjust rent at the time of sale if the outgoing tenant had—or was offered—a 10+ year lease, and the new tenant is offered one as well. Increases on an “in-place transfer” are capped at the lower of 25% above the prior rent or 0.15% of the home’s sale price. A lower 15% cap applies to homes resold within five years.
  • Defines Allowed Fees: Requires that fees for utilities and services reflect actual costs and prohibits administrative enforcement charges.
  • Extends Sunset Date: Replaces the 2030 sunset in AB 252 with a new expiration of January 1, 2038, providing significantly longer-term stability.
  • Ensures a Smooth Transition: Applies to rent increases and lease turnovers occurring on or after July 1, 2025. Homes sold before January 1, 2026, may remain under AB 252 terms, but marina owners are authorized to offer revised 10+ year leases starting in 2026 under AB 754’s new rental rate limits.

Following the agreement reached between the LAC and marina owners, the LAC led a comprehensive outreach effort. The aim was to inform all Marin floating residents on the proposed changes, and allow the residents to vote on the proposal in a way to inform whether community-wide consensus among residents had been reached. The LAC held 12 in-person dock meetings across all six marinas and distributed an informational memo explaining the proposal, following with a formal opinion survey of all floating home residents.

The results were overwhelmingly supportive: more than 400 floating home residents participated (a 67% response rate) and 93% voted in favor of the proposal. On the marina owner side, all of Marin’s floating home marinas supported the provisions in the final agreement.

AB 754 stands as a model of collaborative policymaking and local problem-solving. We are deeply grateful to Assemblymember Connolly for leadership, deep listening, and strong partnership in responding to the needs of this unique community in Marin. We are proud to sponsor and support this legislation and urge your signature.

Sincerely,

Mary Sackett, President
Marin County Board of Supervisors
CC: Marin County Board of Supervisors
State Senator Mike McGuire
Assemblymember Damon Connolly