In a move aimed at stemming the tide of skyrocketing rents that have helped spur a statewide housing crisis, California Gov. Gavin Newsom signed a sweeping rent cap bill into law Tuesday.

Beginning in January, landlords in California will face limits on how high they can raise rents.

“No one thought this could be done,” said Newsom at the AB 1482 bill signing Tuesday at a senior center in West Oakland surrounded by lawmakers and tenant advocates.

Under the new law, property owners across the state won’t be allowed to increase rent by more than 5 percent plus local rate of inflation and they will be required to give “just cause” for evictions of tenants who have lived in a unit for at least a year.

“This is historic legislation,” said Assemblyman David Chiu (D-San Francisco), the lead author of the legislation. “But let me tell you, folks, our work is not done.”

Landlords won’t be allowed to boot renters following the rules of their lease unless the owner is tearing down the residence, renovating it, taking it off the rental market or moving in. In some cases, such as when they convert a building into condos or make substantial renovations, owners will have to pay tenants relocation fees.

Proponents have hailed the new law, which will be retroactive to March 2019 in an attempt to aid tenants whose landlords recently boosted rents ahead of the bill signing, as an important step toward addressing the state’s housing crisis, which is particularly acute in the Bay Area.

“I know from personal experience how important today is,” said Sasha Graham of the group Alliance of Californians for Community Empowerment.

Graham became homeless for several years after her landlord raised the rent on her Richmond apartment more than 100 percent and later evicted her and her son from their home with no cause.

“It was traumatizing,” Graham said, adding that the new law “will literally save laws.”

But critics have said the new law, which exempts units built in the last 15 years and would sunset in 2030 unless lawmakers extend it, could dissuade some landlords from renting property at all.

Regardless, Newsom’s signature makes California one of the first states in the country to take such a step. Oregon passed similar legislation earlier this year and New York has moved to enact widespread caps on rent. It’s also a political win for the governor, who helped negotiate the controversial bill to passage.

Lupe Arreola, executive director of Tenants Together in San Francisco, said the law will offer useful protections for renters. The organization did not take a position on the measure.

Renters need additional help as more become “rent burdened,” paying more than 30 percent of their income on housing, Arreola said. “People in Stockton are having these crazy rent increases,” she said. “People in Fresno are having these crazy rent increases.”

But the reach of the protections might be limited. A study by Zillow found just 7 percent of California renters would have benefited from the rent cap. In places like Oakland and San Francisco, which already have rent restrictions, tenants may not see many changes. Those local rules will still apply.

“We can do better and we know that we have a lot of work to do,” said state Senate President pro tempore Toni Atkins (D-San Diego). “I can’t think of anything better than to make sure people have a roof over their head.”

Nearly a third of renters in Vallejo and Sacramento — popular retreats for former Bay Area residents — would have benefited from the cap.

The law will apply mostly to multi-family dwellings. Only condos and single-family homes owned by big corporations or major investors, not an individual, will be covered.

Still, small landlords say the measure will stifle new development and encourage property owners to regularly hike rent to make up for lost revenues.

“There is a reason that the cities with the strictest rent control and just cause eviction policies have some of the worst housing affordability rates and the most severe housing crisis,” said Sid Lakireddy, president of the California Rental Housing Association, a union of smaller property owners. “As the housing crisis worsens, we will continue to advocate for real solutions that provide real relief to Californians.”

Newsom said the rent cap law helps address the “protection” of tenants. But, he said, the state needs to do more to preserve existing affordable housing and produce more new housing.

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Still, he said, the signing of AB 1482 could prompt other states to consider similar measures.

“Once a mind is stretched, it never goes back to its original form,” Newsom said. “You’re going to see this happening in states all across the country.”

Staff writer Louis Hansen contributed to this report.