Assemblymember Damon Connolly has redrafted the proposed amendments to the floating homes rent control legislation, reflecting agreements reached between the Legislative Action Committee (LAC) and the marina operators. The full legislative text can be found online.
LAC member Anna Shimko has provided the following explanation of the somewhat complicated transition between now and next year regarding allowable rent increases upon sales:
If all goes as expected, the California Legislature should approve the new changes in the rent control law agreed between the marinas and the community by the fall of 2025. The bill would be signed into law by mid-October and go into effect January 1, 2026. The marinas and the community agreed, however, that the amendment to the Floating Home Residency Law would apply starting in July, 2025. Assuming the law passes as expected, how will the transition to the new rules work, given its retroactive application to July 1, 2025? Below are explanations for different scenarios.
If your berth lease term ends or your annual rent increase occurs between July 1 and December 31, 2025: The marina may charge rent consistent with the current law (an increase of CPI plus 3% with a 5% cap). However, as of January 1, 2026, your rent would be capped at your prior rent — the rent you are paying right now — plus CPI only (maximum of 7.5% with any CPI increase above 5% split in half). This means that your rent would likely go down from its late 2025 level starting January, 2026.
If you sell your home between July 1 and December 31, 2025: The berth rent on the home would stay at the current rent until January 1, 2026, when the rent could be increased in accordance with the limits of the new law. This will be true whether or not your home is currently on a 10-year lease.
If you sell your home between January 1 and July 31, 2026: The berth rent for the buyer of the home would be determined based upon the limits of the new law whether or not the home is on a 10-year lease at the time of sale. The reason for this is that the new law will provide that the berth rent can be increased upon sale if the homeowner had a 10-year lease at the time of sale or had been offered a 10-year lease between six months and two years before the sale occurred. During the first six months when the law is in effect, the marinas are not expected to have been able to fulfill this precondition because, in order to do so, they would have had to offer longer leases before the amendment became law.
If you sell your home after July 1, 2026: If the home is on a 10-year lease at the time of sale or had been offered a 10-year lease between six months and two years before the sale occurred, the berth rent for the buyer of the home would be determined based upon the limits of the new law. The transition period would be over and marinas could have provided new 10-year leases as of January 1, 2026 when the law went into effect, likely preparing for that once the amendment is signed into law by mid-October.
If approved, this bill would remain in effect until 2038. Further updates will be provided as the bill proceeds through the legislative process.