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AB 1482 Signed into Law

Post Date:10/09/2019 1:36 PM

Burbank City Talk header 10.19-04ASSEMBLY BILL (AB) 1482 (CHIU) – TENANT PROTECTION ACT OF 2019

The Second Edition of City Talk is focused on Assembly Bill (AB) 1482 - known as the Tenant Protection Act of 2019 that put in place statewide rent caps along with just cause eviction standards for specific multifamily and rental properties.  This Bill summary is aimed at providing an overview of the Bill signed by Governor Gavin Newsom on October 8, 2019.  This new law has an effectiveness date beginning January 1, 2020, and will run through January 1, 2030.  If you think the law might apply to you, please read the entire Bill text.  Link here:

https://leginfo.legislature.ca.gov/faces/BillTextClient.xhtml?Bill_id=201920200AB1482.

SUMMARY

On January 1, 2020, this new law will apply to units with a Certificate of Occupancy (CofO) issued through December 31, 2004.  Units built in the last 15 years are exempt; this is a rolling period.  For example, on January 1, 2020, the law will only apply to units that were issued a CofO through December 31, 2004.  In 2021, the period would then include those units with a CofO through December 31, 2005 and so on.  In addition, the law applies to all multi-family housing, and single homes/condos that are owned by a:

  • Real Estate Investment Trust (REIT);
  • Corporation; and
  • Limited Liability Company where one member is a corporation.

Finally, the Just Cause and Rent Cap provisions of the law do not apply to units with an affordability covenant.  If you are a Section 8 tenant or landlord with questions, please call the housing office at (818) 238-5180.

APPLICABILITY TOOL

To assist tenants and landlords in determining “does this law apply to me?” staff has developed a resource tool that will guide the public through several questions and answers in order to determine its applicability on a case-by-case basis.  Please view the tool here.

EXCLUSIONS

Both Just Cause and Rent Cap provisions exclude dormitories, and housing restricted by deed, regulatory restriction contained in an agreement with a government agency or other recorded document designating the units as affordable housing for persons and families of very-low, low or moderate-income or subject to an agreement that provides housing subsidies for these lower income families.  The law is not clear on its applicability to Section 8 Tenants.  As additional information is obtained, information will be updated.

Additional exclusions for the Just Cause Eviction provisions only include:  Accessory Dwelling Units (ADUs); owner occupied duplexes; and other less common rentals such as a room rental in a single family home. 

JUST CAUSE EVICTION - PROVISIONS

AB 1432 limits evictions.  Landlords would need “just cause” for evicting a tenant with continuous or lawful tenancy of at least 12 months or 24 months in certain instances.  Detailed “at-fault” or “no-fault” descriptions are included in the Bill.  Furthermore, the Bill requires the tenant to receive notice of any violation, if a violation is the basis for the eviction, and be given an opportunity to make corrections.  For no-fault terminations such as condominium conversion or the owner wanting to move into the unit, the Bill requires a one-month relocation allowance (or waiving of last month’s rent); regardless of the tenant’s income.  If relocation assistance is not provided as required, the termination notice is void.

RENT CAPS - PROVISIONS

AB 1482 states that in any 12-month period, a property owner can only increase rent by 5% plus the cost of living, which in Los Angeles and most metro areas has historically been 2-3% a year.  However, rents cannot be raised more than 10%.  In addition, rent increases would need to be based on the lowest gross rental rate charged for the immediately preceding 12 months, and only two rent increases in a 12-month period would be allowed; if together they are not above the allowable rent cap. 

The law establishes March 15, 2019, as the base date for rents.  Tenants must pay rent increases effective after March 15, 2019, until January 1, 2020.  However, on January 1, 2020, rents roll back to the rent as of March 15, 2019; plus the allowable 5% plus cost of living up to a 10% increase.  Property owners are not liable to return any overpayment in rent between March 15, 2019, and January 1, 2020.  Finally, when a tenant moves out, owners can raise rents any amount, but the new rents are then subject to the cap.

Both Just Cause and Rent Cap provisions require specified notice from owners to tenants on applicability of the law.  For any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.  For a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.  See Bill for specific text. 

NO FUNDS FOR ENFORCEMENT

According to authors, no reimbursement to a local jurisdiction is required by this act; stating:

“The only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction; eliminates a crime or infraction; or changes the penalty for a crime or infraction.”

This forces the tenant to enforce the law by defending an unlawful detainer lawsuit brought by their property owner or affirmatively bring their own law suit against their property owner.

RESOURCES

Landlord Tenant Commission

This City Council appointed Commission meets the first Monday of the month (unless otherwise posted), and provides information, education and mediation. 

Time:           6:15 p.m.

Location:     Community Services Building, Room 101/104 150 N. Third St. Burbank, CA.

For more information on the Commission, please visit https://www.burbankca.gov/departments/community-development/housing-economic-development/housing/the-burbank-landlord-tenant-commission. Additional resources include:

Housing Rights Center                   (800) 477-5977        www.housingrightscenter.org

Department of Consumer Affairs   (800) 952-5210        www.dca.ca.gov

Neighborhood Legal Services        (800) 433-6251        www.nlsla.org/

Legal Aid Foundation                     (800) 399-4529        www.lafla.org/

BASTA, Tenant Rights Org             (213) 736-5050        www.basta.org/

Los Angeles Superior Court-

Small Claims                                  

http://www.lacourt.org/division/smallclaims/smallclaims.aspx

FOR MORE INFORMATION

As updates and clarifications are available on this new law to take effect January 1, 2020, they will be posted to the Housing Webpage so please visit the site regularly for the latest information. 

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