In February of this year, State Sen. María Elena Durazo, (D-Los Angeles), announced a measure that strengthens the 2019 Tenant Protection Act bill capping rent hikes at 10 percent and prevents landlords from evicting tenants with no legal reason.
On April 25, 2023, the committee passed the bill pending some amendments, after which it will be re-referred to the committees.
What Will This Bill Do?
- Extends tenant protections the owner of residential real property shall not terminate a tenancy without just cause, which shall be stated in the written notice to terminate tenancy.
- Specifies that, in regard to the eviction of a tenant on the basis of a move-in by the owner or a relative of the owner pursuant to the Tenant Protection Act, the following additional rules apply:
- the tenant must not be over 60, disabled, or terminally ill, as defined; unless the person moving in is disabled and no other units are available at the property;
- the owner must have at least a 51 percent recorded ownership interest in the property;
- the person moving-in must not already live in another rental unit at the property and there must not be another comparable unit already available at the property, unless the person moving in needs the tenant’s unit as an accommodation for a disability;
- the owner or owner’s relative must occupy the unit within 90 days of when the displaced tenant vacates;
- the owner or owner’s relative must use the unit as their primary residence for at least 36 continuous months;
- if owner or owner’s relative does not move in within 90 days or does not continuously occupy the unit for at least 36 months, then the landlord must offer the former tenant the opportunity to return to the unit on the same terms as before and also reimburse the former tenant for reasonable moving expenses incurred in excess of any relocation assistance already received; and
- the notice of termination of tenancy must contain the name, address of primary residence and relationship to the owner of the intended occupant.
- Specifies that, in order to evict a tenant on the basis of a demolition or substantial remodel pursuant to the Tenant Protection Act:
- the work must necessitate the tenant’s absence for at least 60 days;
- the work must be necessary for compliance with codes that impact the tenant’s health and safety;
- the landlord must have obtained all required government permits;
- the landlord must have provided the tenant with written notice informing the tenant of the tenant’s option to select temporary relocation assistance with a right to return on the same terms or permanent relocation assistance.
- temporary location assistance is comparable alternate housing in the same city as the rental unit or payment of all actual expenses associated with temporary relocation for the duration of the relocation. Permanent relocation assistance is a payment equal to six times the monthly fair market rent, as defined, for the area for a unit of comparable size.
- Specifies that, in order to evict a tenant on the basis that the owner is withdrawing the property from the rental market pursuant to the Tenant Protection Act, the owner must:
- withdraw the property for at least 10 years;
- record a notice with the county recorder indicating the limitations on renting the property and
- provide any elderly or disabled tenants who have lived at the property for one year or more, up to a year of additional notice to vacate if requested.
6) Specifies that if a landlord who has evicted tenants pursuant to 5, above, or the successor in interest to such a landlord, returns the property to the rental market within five years of withdrawing it, then:
- the property owner is liable to the displaced tenants for damages;
- the property owner must offer the displaced tenant a right of first refusal to return to the property under the same terms as before and
- the property owner is prohibited from re-renting the units at a rate higher than the rate in force when the property was withdrawn from the rental market, plus any permissible intervening rent increases.
- Empowers aggrieved tenants and public agencies to bring civil actions to enforce compliance with the Tenant Protection Act as modified by this bill and provides for awards of attorney fees, costs, damages and enhanced damages, as specified.
Who Will This Affect?
Section 1947.12(d) of the Civil Code is amended to read: This section shall not apply to the following residential real properties:
- Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
- Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
- Housing subject to rent or price control through a public entity’s valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50), that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
- Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobile home.
- A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
- Residential real property that is alienable separate from the title to any other dwelling unit, including a mobile home, provided that both of the following apply:
(A) The owner is not any of the following:
- A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
- A corporation.
- A limited liability company in which at least one member is a corporation.
- Management of a mobile home park, as defined in Section 798.2. and
(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”
(ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobile home, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobile home, the notice required under clause (i) must be provided in the rental agreement.
(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease, constitutes at a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.
Please note that the above was taken from the amended version of the bill dated 5/1/2023. For further information on other amendments or the bill’s status, visit https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB567