Assembly Bill No. 1482
The California State Assembly passed AB 1482 and the bill has been signed into law by Governor Gavin Newsom. San Mateo County Association of Realtors and the Coalition for Housing Equality, with the support of the California Association of REALTORS® (C.A.R.), is providing information to REALTORS® and property owners about the implications of this new state law and how to comply.
Rent Cap
Rent increases are capped at 5 percent plus inflation, or up to a hard cap of 10 percent, whichever is
lower. All rent increases since March 15, 2019 will count toward the rent cap, and if above the permissible
rent cap, will have to be rolled back effective January 1, 2020.
Just Cause
Landlords may only evict for “just cause.” There is a list of 15 reasons. The just cause reasons are divided into two categories:
- “At fault” termination of tenancy is generally based upon a tenant’s breach of the lease,
- among other reasons, and does not require the payment of relocation assistance.
- “At fault” reasons include non-payment of rent, nuisance, criminal activity, refusal to allow
- entry, and breach of a material term of the lease.
- “No fault” termination of tenancy is allowed when the tenant has not breached the lease
- and will require the landlord to pay one month’s rent in relocation assistance.
- “No fault” reasons include owner occupancy, withdrawal from the rental market, substantial
- remodeling and compliance with government order to vacate the property,
Just cause eviction only applies to tenants who have been continuously and lawfully occupying the property for 12 months.
Exemptions
Exempts single family properties and condos if:
- Notice of the exemption is provided to the tenants and;
- The owner is not a REIT, a corporation, or an LLC where an owner is a corporation
- Other exemptions include:
- Housing that has been issued a certificate of occupancy within previous last 15 years
- Owner occupied duplexes
- Owner occupied single-family properties renting no more than two bedrooms including
Accessory Dwelling Units (“ADU”s). (This exemption applies only to just cause but not the rent cap).
Consumer Price Index, San Francisco Area — December 2019
Area prices were down 0.5 percent over the past two months, up 2.5 percent from a year ago
Prices in the San Francisco area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), decreased 0.5 percent for the two months ending in December 2019, the U.S. Bureau of Labor Statistics reported today. (See table A.) Assistant Commissioner for Regional Operations Richard Holden noted that the December decrease was influenced by lower prices for gasoline. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect seasonal influences.)
An act to add and repeal Sections 1946.2, 1947.12, and 1947.13 of the Civil Code, relating to tenancy.
[ Approved by Governor October 08, 2019. Filed with Secretary of State October 08, 2019. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 1482, Chiu. Tenant Protection Act of 2019: tenancy: rent caps.
Existing law specifies that a hiring of residential real property, for a term not specified by the parties, is deemed to be renewed at the end of the term implied by law unless one of the parties gives written notice to the other of that party’s intention to terminate. Existing law requires an owner of a residential dwelling to give notice at least 60 days prior to the proposed date of termination, or at least 30 days prior to the proposed date of termination if any tenant or resident has resided in the dwelling for less than one year, as specified. Existing law requires any notice given by an owner to be given in a prescribed manner, to contain certain information, and to be formatted, as specified.
