california Eviction laws

California Eviction laws

California Tenant Protection Act of 2019

 

 

The California Tenant Protection Act of 2019, also known as A.B. 1482, took effect on January 1, 2020, and is set to expire in 10 years, in 2030.  The purpose of the bill is to address the housing shortage in California by regulating landlords’ ability to increase rent and require landlords to state a reason to terminate a tenancy.  This Bill only applies to property that is not under local rent control laws and is property not otherwise exempt from AB 1482.

 

Highlights

 

• Evictions – (Just Cause Requirement for Termination of Tenancy)

  • Owners must have just cause to evict a tenant. Just cause falls into two categories 1) “at-fault” just case, and 2) ”no-fault” just cause.
  • When the termination of a tenancy is based on a “no-fault” just cause, the renter is entitled to relocation assistance or a rent waiver equal to one month’s rent.
  • The law applies to all renters that have resided in the unit lawfully for at least 12 consecutive months, or at least one tenant has resided in the unit lawfully for at least 24 consecutive months.

 

 

• Rent Control – (Limits on annual rent increases)

  • Annual rent increases statewide are capped at 5% plus local inflation, tied to the Consumer Price Index (CPI), with a maximum at 10%.
  • Landlords can increase rent no more than twice a year, and the total increase cannot be more than the allowable annual limit of 10%.
  • This law applies to all property that is not currently under local jurisdiction is property not otherwise exempt from AB 1482.

 

 

 

Landlord and Tenant Attorney

California Eviction laws

California Tenant Protection Act of 2019

 

 

What are the allowable “At-Fault” Just Cause for Evictions?

 

1. Default in the payment of rent;
2. Breach of a material term of the lease;
3. Maintaining, committing, or permitting the maintenance or commission of a nuisance;
4. Committing waste, as defined by the law;
5. Written lease terminated on or after January 1, 2020 and after a written request from the owner, the renter has refused to execute on a written extension or renewal of the lease based on similar lease terms;
6. Criminal activity by the renter on the property, including any common areas, or any criminal activity or criminal threat on or off the property that is directed at any owner or agent of the owner;
7. Assigning or subletting in the premises in violation of the lease;
8. Refusing the owner access to the unit as authorized under the law;
9. Using the premises for unlawful purposes, as defined by the law;
10. An employee, agent, or licensee’s (e.g. resident manager’s) failure to vacate after their termination;
11. Failure to deliver possession of the unit following written notice to the owner of the renter’s intention to terminate the lease, which the owner has accepted in writing.

 

What are the allowable “No-Fault” Just Cause for Evictions?

 

1. Intent to occupy the unit by the owner, owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents only. For leases entered into on or after July 1 2020, the owner would only be permitted to occupy the unit, if the renter agrees in writing to the lease termination or the lease includes a provision providing for lease termination based on owner or owner-relative occupancy;
2. Withdrawal of the rental property from the rental market;
3. Owner is complying with a local ordinance, court order, or other government entity resulting in the need to vacate the property;
4. Intent to demolish or substantially remodel the unit.

 

Which property owners are exempt for the Just Cause requirement?

 

1. Owner-Occupied housing accommodations in which the tenant shares a bathroom or kitchen facilities with the owner who maintains principal residence with the residential real property;
2. Owner-occupied duplex in which one of the units is the owner’s primary residence at the beginning of the tenancy and the owner continues in occupancy;
3. New Construction –housing that was issued a certificate of occupancy within the previous 15 years. This means some of the housing previously exempt under Costa-Hawkins will now be subject to the State’s rent control provisions.
4. Single-family homes and condominiums if the owner is not a real estate investment trust, a corporation, or a limited liability company in which at least one member is a corporation.

 

Which property owners are exempt from the State’s rent control?

 

1. Housing restricted by a deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined by the law;
2. Housing subject to more restrictive rent control ordinances;
3. New Construction – housing that was issued a certificate of occupancy with the previous 15 years. This means some of the housing previously exempt under Costa-Hawkins will now be subject to the State’s rent control provisions.
4. Owner-Occupied housing accommodations in which the tenant shares a bathroom or kitchen facilities with the owner who maintains principal residence with the residential real property;
5. Owner-occupied duplex in which one of the units is the owner’s primary residence at the beginning of the tenancy and the owner continues in occupancy;
6. Single-family homes and condominiums if the owner is not a real estate investment trust, a corporation, or a limited liability company in which at least one member is a corporation.

 

 

Landlord and Tenant Attorney

California Eviction laws

California Tenant Protection Act of 2019

 

 

What are the notice requirements?

 

• An owner of residential property subject to the law is required to provide the following notice, in no less than 12-point type:

“California Law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.”

• For tenancies that started or were renewed on or after July 1, 2020, the above notice should be included as an addendum to the lease or as a written notice signed by the renter, with a copy of the signed written notice provided to the renter.
• Properties that are exempt from the law must provide renters with written notice stating:

“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just-cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d) (5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

• This notice must be included in rental agreements that begin on or after July 1, 2020. For tenancies that started prior to July 1, 2020, the rent agreement may but does not have to include the notice provision.
• When a no-fault notice of termination is served on the renter, the renter must also be informed of their right to relocation assistance or a rent waiver.
• In a rent waiver, the written notice should provide the amount of the rent waiver and that no rent is due for the last month of tenancy.
• Relocation assistance shall be provided within 15 calendar days of service of the notice to quit.