New Housing Bill gives more protections for renters.
Oct 05, 2019
Housing in California is about to go through a big overhaul. AB-1482, the Tenant Protection Act of 2019, is one of several housing-related measures being considered by the California state legislature, recently passed through the California Senate with an approved vote of 25-10. The bill, currently awaiting Gov. Gavin Newsom’s approval, is aimed to introduce statewide rent control that would cap annual rent increases at five percent plus the percentage change in the cost of living. This comes as good news for renters who do not want to see their rents increased to gigantic proportions year after year. For some landlords, this could be a not-so-good issue. Opponents of the bill claim that many landlords will have to struggle to maintain the expenses that come with renting property.
The bill also includes a “just cause” provision involving evictions. Currently, in California, tenants living on a month-to-month basis can be given a notice to end the tenancy without cause. If the tenant is living on a month-to-month basis for less than a year, they must be given a 30-day notice. For those living on a month-to-month basis for over a year, they must be given a 60-day notice (Cal. Code of Civ. Proc. §1946 and §1946.1). AB-1482 aims to do away with that stating that if a tenant has “continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause…” “Just cause”, as the bill states, applies to any tenant should the tenant: (a) default on payment of rent, (b) breach a material term of the lease, (c) act as a nuisance, (d) engage in criminal/illegal activity, and (e) assign or sublet the premises in violation of the lease terms.
However, according to AB-1482, there is still a “no-fault just-cause” stipulation that would still allow landlords to evict tenants with no cause should: (a) the landlord intend to occupy the unit with a family member, or (b) make renovations to the unit. This “no-fault just-cause” stipulation would need to be spelled out in the lease. A landlord would also be required to pay a relocation fee to the tenant. AB-1482’s “just cause” provision adds protection for those tenants living on a month-to-month basis. AB-1482 will officially go into effect January 1st, 2020 and expire January 1st, 2030.