Jan 072020

This bill limits landlords in California by placing an upper limit on annual rent increases: 5% plus inflation. This bill also requires that a landlord have and state a just cause, as specified, in order to evict tenants who have occupied the premises for a year. Both the rent cap and the just cause provisions are subject to exemptions including, among others: housing built in the past 15 years, single family residences unless owned by a real estate trust or a corporation. This bill sunsets after ten years and does not preempt any local rent control or just cause ordinances.

The Senate Amendments:

1) Incorporate provisions requiring property
owners to have a just cause to evict a tenant,
as follows:

a) Specify that these provisions are effective
after 12 months of tenancy, or up to 24
months in a circumstance where there is
a change in the adult tenant;

b) Specify the specific kind of causes
that are grounds for eviction, including
“no-fault” and “at-fault” evictions;

c) Require one month’s rent relocation
payment or rent waiver in the case of a
no-fault just cause eviction, such as owner
move-in or capital improvements;

d) Specify that these provisions do not
supersede any local just cause ordinance
enacted before September 1, 2019; and,

e) Specify that these provisions expire
after 10 years.

2) Specify the units which are exempted from
the rent cap and just cause provisions of this
bill, including:

a) All single family homes not owned by a
corporation or real estate investment trust;

b) All duplexes in which the owner occupies
one of the units; and,

c) All units for 15 years after receiving their
first certificate of occupancy.

The reader should consult with legal counsel
familiar with the full text of the new law
before taking action to respond to, or
comply with, its many requirements.

To read the entire requirements, please visit: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB1482

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