AB 1482: California's New Tenant Protection Act

Categories: Property Management Real Estate

Published 10/09/2019

Governor Gavin Newsome signed AB 1482 on Tuesday, October 8th, 2019. This new bill implements Just Cause for Eviction and Rent Cap across the State of California. The State of Oregon approved legislation similar to this February 28th, 2019. The new bill is intended to end rent gouging and senseless evictions. However, it does not prohibit cities and counties from creating new legislation or other ordinances that are uncompromising regarding rent caps. The law sunsets on January 1, 2030, so until then here are the highlights from the latest California New Tenant Protection Act:

Statewide rent cap: AB 1482 by Assemblyman David Chiu, D-San Francisco, will place an annual 5% plus CPI cap on rent increases and create new standards for evictions across California. The signing of AB 1482, officially the Tenant Protection Act of 2019, marks the most significant policy change for California’s rental housing owners and tenants in a quarter-century.

Here are more details about the new law:
• Applies to units older than 15 years
• 5% plus Consumer Price Index (CPI), up to 10% maximum annually
• Single-family homes and condos are exempt as long as they are NOT owned by a corporation.
• Vacancy Decontrol, as outlined in the Costa-Hawkins Act still applies, meaning that any vacated unit can be raised to market rates.
• Rents on January 1, 2020 cannot be more than they were on March 15, 2019, plus the maximum allowable increase (5% plus appx 2.8% CPI, or 7.8%).
• If rents have been increased more than 7.8% since March 15th, no refund is required, but rents must be reduced on January 1, 2020.

“Just cause” eviction ordinance: For tenants who have lived in their rental for at least a year, meaning a landlord cannot order renters who are following terms of their lease to move out unless the owner plans to move in, demolish, renovate the unit, or cease renting the unit completely.

Under the Tenant Protection Act, owners would still be able to evict tenants for the following causes:
• At Fault (e.g. non-payment of rent)
• No Fault (e.g. owner move in)
• No Fault evictions require Tenant relocation payment of one month’s rent

The following properties are exempt under this new law:
• Owner-occupied shared homes
• Duplexes with an owner occupying one unit
• Units newer than 15 years old
• Single Family Dwellings and condos not owned by a corporation
• Units covered by local Just Cause Ordinances enacted before September 2019
• Units covered by local Just Cause Ordinances enacted after September 2019, that are more “protective”

These laws do not apply to situations where:
• The tenant(s) has (have) lived in the unit for less than one year
• The tenancy changes and at least one tenant has occupied the unit for 2 years

The Rental Housing Association (RHA) and California Apartment Association (CAA) fought hard in opposition to this law, and when Governor Newsom was adamantly in favor, the RHA and CAA fought harder to ensure protections were included.

We are anticipating questions about both the Tenant Protection Ordinance, and about its effects on local ordinances. Please call (510) 500-7531) or email (dglass@adventpropertiesinc.com), and we will help answer your questions and concerns.