California Proposes Cooling Standards for Rental Housing: What Property Owners Need to Know

As extreme heat events become more frequent and intense, California lawmakers are revisiting the idea of mandatory cooling standards in rental housing. The California Department of Housing and Community Development (HCD) has released a 60-page report urging state legislators to establish a maximum safe indoor air temperature of 82°F for residential units. If implemented, this measure could reshape landlord responsibilities and tenant rights across the state.

While this proposal aims to protect public health, it also raises concerns about the financial burden on property owners, particularly those managing older rental units that may require costly upgrades.

Why Cooling Standards Are Being Proposed

Extreme heat is now one of the deadliest climate-related threats. The Centers for Disease Control and Prevention (CDC) reports that approximately 1,220 people die from heat-related illnesses every year in the U.S. In California, where heat waves are becoming longer and more severe, projections suggest that heat-related deaths could rise to 11,300 per year by 2050 if no action is taken.

Unlike heating, which is legally required in rental units, California does not currently mandate air conditioning or any other cooling system. This regulatory gap has left many tenants—especially those in older buildings—vulnerable to dangerous indoor temperatures during heat waves.

Key Provisions of the Proposed Cooling Standards

The HCD’s recommendations focus on both existing rental properties and new construction.

For Existing Rental Units

• Landlords would need to implement cooling solutions such as:
  • Central air conditioning
  • Window AC units
  • Evaporative coolers
  • Fans and improved ventilation
  • Window shading and other heat-mitigation measures

For New Construction

• Future residential developments would need to incorporate:
  • Cool roofs and cool walls to reflect sunlight
  • Landscaping elements designed to provide natural shade
  • Energy-efficient building materials to regulate indoor temperatures

These measures would make California’s cooling standards among the most comprehensive in the nation, aligning with efforts already in place in cities like Phoenix, Dallas, and New Orleans.

Concerns from Property Owners and Housing Providers

While the public response has been largely supportive, property owners and real estate groups have raised concerns about the financial impact of these regulations.

Cost of Compliance

Many California rental units—especially in cities like Los Angeles, San Francisco, and Sacramento—are housed in older buildings that lack central AC and require major electrical upgrades to support new cooling systems. Retrofitting these properties could be prohibitively expensive, with costs ranging from several thousand to tens of thousands of dollars per unit.

Risk to Small-Scale Landlords

Daniel Yukelson, CEO of the Apartment Association of Greater Los Angeles, has warned that without financial incentives, many small rental property owners could struggle to afford these upgrades, potentially leading to:

• Higher rents as landlords pass costs onto tenants
• Reduced rental inventory as struggling owners sell off properties
• Increased consolidation of rental housing by large corporate investors

To address these concerns, the HCD’s report recommends lawmakers create financial assistance programs—such as tax incentives or grants—to help landlords upgrade their properties without forcing rent increases on tenants.

Will the Proposal Become Law?

The future of these cooling standards remains uncertain. Previous efforts to pass similar legislation have stalled, largely due to cost concerns and pushback from property owners. However, the issue is gaining momentum:

• A 2023 poll by UC Berkeley’s Institute of Governmental Studies found that 67% of California voters support statewide cooling regulations.
• The Los Angeles County Department of Public Health recently highlighted that heat-related deaths rise by 10% on hot nights, underscoring the urgency of action.
• Cities like Los Angeles and Sacramento are already exploring their own local cooling mandates for rental properties.

If passed, these regulations would represent a major shift in California’s rental housing market, forcing landlords to adapt to new building and maintenance requirements.

What’s Next for Property Owners?

As legislators debate the cooling proposal, property owners should:

• Stay informed on the latest updates from the California Department of Housing and Community Development.
• Assess their properties to determine potential compliance costs.
• Engage with lawmakers and local rental housing associations to voice their concerns and seek solutions.

At Real Property Management Select, we help landlords navigate evolving rental regulations while ensuring compliance and profitability. For ongoing updates on California’s housing policies and expert property management services, contact us now.

Do you think cooling standards should be required in California rentals? Let us know your thoughts.