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Statewide Rent Cap and Just Cause for Eviction Proposed

Rent control and just cause for eviction laws have been proposed on both a statewide and local level over the past year. One bill is inching towards implementing state-wide rent control and just cause for eviction – AB 1482. However, unlike past bills, this one has numerous provisions in place to temper the negative impacts that rent control and just cause for eviction often have on property-owners. For example, the changes made by the bill will terminate after 3 years, and portions of the bill are not applicable to a broad range of properties. You can read more about the bill and these provisions below.

What the Bill Says

According to the AB 1482 Factsheet, provided by the author’s office, this bill will reduce the rent-burden tenants by:

  • Restricting residential real property owners from increasing the rental rate for property more than once annually. The annual increase shall not exceed 7 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest rental amount charged for that property at any time during the 12 months prior to the effective date of the increase.
  • Requiring that a landlord list a cause in their written notice to terminate a tenancy.

Who is Excluded?

As the bill is written today, the just cause portion of this bill would not apply to:

  • Dormitories owned and operated by an institution of primary, secondary, or higher education.
  • Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
  • Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
  • Housing that has been issued a certificate of occupancy within the previous 10 years.
  • Housing that is a detached single-family residential dwelling unit that meets both of the following requirements:
    • The owner is a natural person who owns and leases no more than 10 units and does not have an ownership interest in any other rental residential real property through any other entity.
    • There is a written lease for the dwelling that includes a provision certifying that the owner meets the provisions of subparagraph (A) and notifying the tenant that the dwelling is not subject to this section.

The rent cap portion of the bill would not apply to:

  • Dormitories owned and operated by an institution of primary, secondary, or higher education.
  • Housing subject to any form of rent or price control through a public entity’s valid exercise of its police power that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
  • Housing that has been issued a certificate of occupancy within the previous 10 years.
  • Housing that is a detached single-family residential dwelling unit that meets both of the following requirements:
    • The owner is a natural person who owns and leases no more than 10 units and does not lease any other residential property through any other entity.
    •  The dwelling has a written lease that includes a provision certifying that the owner meets the provisions of subparagraph (A) and notifying the tenant that the dwelling is not subject to this section.

Just Cause for Eviction Requirements and Details

The following is a summary of acceptable reasons to terminate a lease under the proposed bill. You can find the complete text here, under SECTION 1.

Leases can be terminated under reasons that fall under “at-fault” and “no-fault” causes.

At-fault Causes:

  • Default in the payment of rent.
  • A breach of a material term of the lease.
  • Maintaining, committing, or permitting the maintenance or commission of a nuisance.
  • Committing waste.
  • The tenant had a written lease that terminated on or after January 1, 2020, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms are lawful.
  • Criminal activity by the tenant on the premises, including any common areas, or any criminal threat directed at any owner or agent of the owner of the premises.
  • Using the premises for an unlawful purpose.
  • Assigning or subletting the premises in violation of the tenant’s lease.
  • The tenant’s refusal to allow the owner to enter the dwelling when the owner gives proper notice.

No-fault causes:

  • Intent to occupy the residential real property by the owner or their spouse, children, grandchildren, parents, or grandparents. Note that for leases entered into on or after January 1, 2020, this provision shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or their spouse, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential property.
  • withdrawal of the residential property from the rental market.
  • Unsafe habitation, as determined by a government agency that has issued an order to vacate, order to comply, or other order that necessitates vacating the residential property.
  •  Intent to demolish or to substantially remodel.

If the reason for eviction falls under a “no-fault” cause and if the tenant has resided in the property for 12 months or more, the owner will be required to provide relocation assistance, regardless of the tenant’s income. The amount of relocation assistance required will be equal to one month of the tenant’s rent at the time the owner issued the notice to terminate the tenancy and shall be provided within five calendar days of service of the notice. The owner and tenant may also agree, in lieu of direct payment, to waive the payment of rent for the month after the notice is given.

If theowner’s fails to comply with these rules, they shall render the notice of termination void.

These Changes Will Go Away After 3 Years

This bill would sunset after three years, meaning the changes it made would no longer be in effect three years from now. The intention behind this is provision to protect tenants while new units are built to help relieve the overall pressure on rents until longer-term solutions are found.

Current Status

The Bill has already passed the Assembly and is likely headed to the Senate sometime in August for a vote. If approved, it will get sent to the governor’s desk. If you have an opinion about the bill, there is still plenty of time to contact your representative.

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