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AB-2350 • 2026

Consumer loans: residential real property rental obligations.

Consumer loans: residential real property rental obligations.

Crime Education Housing
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
McKinnor
Last action
2026-04-06
Official status
In committee: Hearing postponed by committee.
Effective date
Not listed

Plain English Breakdown

Official source material does not provide specific details on penalties for violations or the impact on existing agreements.

Rules on Loans for Rent Agreements

AB-2350 prohibits loans intended to cover rental payments or rent split agreements.

What This Bill Does

  • Prohibits property owners and loan companies from issuing consumer loans if the purpose is to pay for residential real property rental obligations, including rent split arrangements.

Who It Names or Affects

  • Owners of residential real property
  • Finance lenders, brokers, and program administrators
  • Individuals seeking consumer loans for rental payments

Terms To Know

California Financing Law (CFL)
A law that regulates the practices of finance lenders, brokers, and program administrators in California.
Rent split loan agreement
An arrangement where two or more people share the cost of renting a property.

Limits and Unknowns

  • The bill does not specify penalties for violations.
  • It is unclear how this will affect existing rent agreements and loans.

Bill History

  1. 2026-04-06 California Legislative Information

    In committee: Hearing postponed by committee.

  2. 2026-04-06 California Legislative Information

    Re-referred to Com. on B. & F.

  3. 2026-03-26 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  4. 2026-03-17 California Legislative Information

    Re-referred to Com. on B. & F.

  5. 2026-03-16 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  6. 2026-03-16 California Legislative Information

    Referred to Coms. on B. & F. and JUD.

  7. 2026-02-20 California Legislative Information

    From printer. May be heard in committee March 22.

  8. 2026-02-19 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2350, as amended, McKinnor.
Consumer loans: residential real property rental obligations.
Existing law generally regulates the hiring of dwelling units and the relationship between landlords and tenants.
The California Financing Law (CFL) generally regulates consumer loan lending practices by finance lenders, brokers, and program administrators. The CFL makes a willful violation of its provisions a crime.
This bill would prohibit
owners of residential real property,
finance lenders, brokers, and program administrators from making a
consumer
loan if a purpose of the loan is to pay for any obligation under an agreement to rent residential real property,
including, but not limited to, a rent split loan agreement, as specified. By expanding the scope of a crime under the CFL, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Read the full stored bill text 
Download Bill PDF