California Rent Control Bill AB-1482 - What Does it Mean for You?
The California Senate approved Assembly Bill 1482 (“AB-1482”) on September 10, 2019. The bill was signed by Governor Gavin Newsom and the measure will take effect January 1 and expire in 2030 (unless lawmakers vote to extend it).
Following are key points summarizing AB-1482.
IS MY PROPERTY IMPACTED BY AB-1482?
The state law would exempt buildings constructed in the last 15 years. That’s a rolling date, meaning units built in 2006 would be covered in 2021, units built in 2007 would be covered in 2022, and so on.
What types of buildings would be impacted?
Rent control would be applied mostly to apartments and other multi-families buildings—with some exceptions—along with some single-family homes. Condos and single-family homes would be exempt, unless owned by a corporation or real estate investment trust. Duplexes where the owner lives in one of the units would also be exempt.
WHAT IS THE MAXIMUM ANNUAL RENT INCREASE UNDER THE BILL?
If your property is in a city that does not already have a local rent control law, rent increases would be limited to 5 percent, plus local inflation, but could never exceed a total of 10 percent.
Also, AB 1482 would not override local rent control laws. However, itwould cover units that are not already covered by local rent control laws.
WILL IT IMPACT MY AFFORDABLE HOUSING PROPERTY WHILE RENT IS RESTRICTED?
The bill would authorize an owner of an affordable housing unit to establish the initial rental rate for the unit upon the expiration of the restriction, but would require the owner to comply with the above cap on rent increases for subsequent rent increases for the unit.
WHAT IF I ALREADY INCREASED RENT MORE THAN THE MAXIMUM ALLOWED AMOUNT?
The bill would provide that in the event that an owner increased the rent by more than the amount specified above between March 15, 2019, and January 1, 2020, the applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase, and the owner shall not be liable to the tenant for any corresponding rent overpayment. Owners are restricted to two rent increases in a 12 month period.
WHAT IF I INCREASE RENT BY LESS THAN THE MAXIMUM ALLOWABLE AMOUNT THIS YEAR?
The bill would authorize an owner who increased the rent by less than the amount specified above between March 15, 2019, and January 1, 2020, to increase the rent twice within 12 months of March 15, 2019, but not by more than the amount specified above.
HOW WILL JUST CAUSE TERMINATIONS FUNCTION UNDER AB-1482?
The bill would require, for certain just cause terminations that are curable, that the owner give a notice of violation and an opportunity to cure the violation prior to issuing the notice of termination.
WHAT IMPACT DOES THE BILL HAVE ON NO-FAULT JUST CAUSE TERMINATIONS?
For no-fault just cause terminations, the bill would require the owner to either assist certain tenants to relocate, regardless of the tenant’s income, by providing a direct payment of one month’s rent to the tenant, as specified, or waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.
DO I HAVE TO PROVIDE RELOCATION ASSISTANCE?
AB-1482 states that if the owner does not provide relocation assistance, the notice of termination is void.
WHAT ARE THE DISCLOSURE REQUIREMENTS OF AB-1482?
The law will require the owner to provide prescribed notice to a tenant of the tenant's rights under these provisions
Stay tuned for more information as it becomes available. And as always, feel free to contact me with any questions or concerns.