The Tenant Protection Act of 2019 Extends Rent Caps and Just Eviction Causes to Renters State-Wide!

California is the third state to pass a state-wide rent control and just cause eviction law after Oregon and New York. I applaud California and Assemblyman David Chui for initiating the new legislation, AB 1482, which was signed into law by Governor Newsom and became effective on January 1, 2020. The law will be in effect for 10 years at which time the new law "sunsets."

Until this law became effective, tenants in non-rent-controlled cities had little protection under state law. Month-to-month tenants in these areas could be served with a notice to increase their rent by any percent, requiring 60-days’ notice if the rent increase was greater than 10% or 30-days’ notice for rent increases less than 10%.

Questions to Ask to Determine Coverage under AB 1482:

1. What type of residence do I lease (e.g. single-family home, condo, duplex, multi-unit home, etc.)?

2. What year was my residence built?

3. How is my residence owned?

4. Is my residence partially or fully covered by a City rent control program? 

Some buildings may be covered by just eviction protection under a municipal code but be exempt from rent increase regulations. In this example, there would be partial coverage in that the landlord would be required to have a just cause to terminate tenancy under municipal law but the rental increases would be regulated by AB 1482.

Discussion Concerning AB 1482:

Rent Caps:

Under the new Tenant Protection Act of 2019 (or AB 1482), the following rent caps are extended to renters who lease apartments in buildings issued a certificate of occupancy before January 1, 2005 with certain exemptions and for those who live in rent controlled units built before 1995 (or earlier) under Costa Hawkins (other exemptions may apply):

An owner shall not increase rent more than twice every 12-months but the maximum rent increase for any 12-month period cannot exceed a) either 5% plus the Consumer Price Index (CPI) or b) 10% whichever is lower.

The rent in effect on March 15, 2019 will be the rent used as the base rent if a rent increase is imposed.

Unlike many rent-controlled jurisdictions, capital improvements[1] cannot be passed along to the tenants; the cost of these improvements would need to be covered by the rent-cap.

This new law does not apply to privately owned single-family homes or condominiums [2], a duplex where an owner occupies one of the units, mobile homes, certain dormitories, and affordable housing units for low income households that are regulated by a deed or by a regulatory agency or housing built within the last 15 years, including accessory dwelling units (ADUs). For a complete list of exemptions, see: https://a17.asmdc.org/issue/ab-1482-frequently-asked-questions

The CPI increase under the TPA of 2019 uses a percent change in the Consumer Price Index dating from April 2018 to April 2019 for the state of California but breaks out different state localities such as the San Francisco Bay area, Los Angeles, etc. 

See: https://www.dir.ca.gov/OPRL/CPI/PresentCCPI.PDF

To calculate the percent increase, use this formula:

((CPI for April 2019 minus the CPI for April 2018) divided by the CPI for April 2018) multiplied by 100.

Just Eviction Cause:

Also under the Tenant Protection Act of 2019, just cause eviction protections have now been extended to renters with certain exceptions. Just cause eviction protections only cover tenants who have been residing in their rental unit continuously for 12-months under either a fixed-term or month-to-month lease agreement. The termination of a fixed-term lease is not a just cause to evict but the Owner may ask the tenant to enter into a new fixed-term lease agreement that is materially the same as the existing lease.

Just causes to evict a tenant are divided into “no fault” and “fault evictions” which are discussed below.

No Fault Evictions:

• An owner-move-in eviction;
• An Ellis Act eviction;[3] or
• If the Owner intends to demolish the building or make substantial repairs that will take at least 30-days, and which relate to habitability issues.

As it relates to no-fault evictions, the Owner is required to provide the tenant with relocation assistance which equates to one-month’s rent.

At Fault Evictions:

• Non-payment of rent;
• Breach of a material clause of the lease agreement:
• Committing a nuisance on the property;
• Illegally subletting the property;
• Refusing to let the Owner or property manager enter the unit as required by law (see Cal. Civ. Code section 1954);
• Committing a criminal act on the property; or
• An employee of the Owner who lives in the building and who refuses to vacate after their employment has been terminated.

Exemptions from the TPA of 2019 just cause eviction law follows: 

• Tourist or transient hotel accommodations;
• Housing accommodations in non-profit agencies such as residential housing for the elderly;
• Single-family, owner-occupied homes where the owner rents up to two bedrooms or units, including ADUs and junior accessory dwelling units (JADUs);
• Privately owned condominiums or single family homes;
• Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner, if the owner lives at the property as their principal residence; and
• Buildings issued a certificate of occupancy within the past 15-years.

Required Notices:

All tenants covered by either or both the rent cap and just cause protections must receive a notice stating that they are covered and not exempt. Notice requirements are covered here.

Rent-controlled Cities and AB 1482:

In cities such as San Francisco, Oakland, Berkeley, Richmond, and others in the Bay area that have rent-control, if the tenant’s leased unit is not covered by rent-control it now may be afforded new protections under AB 1482.

Remedies:

What remedies does the Tenant have if the Owner has raised rent over the 10% limit under AB 1482 and the tenant is not in a rent-controlled property?

• The tenant should consult an attorney; or
• The tenant can call a hotline number 1-888-428-7615.

What remedies does the Tenant have if the Owner has terminated their tenancy without just cause and the tenant is not in a rent-controller property? 

• The tenant should immediately consult an attorney; or
• The tenant can call a hotline number 1-888-428-7615.

The only actual remedy is a civil court action. Tenants can affirmatively sue a landlord as well as defend themselves in eviction proceedings.

The hotline number is run by ACCE, the Alliance of Californians for Community Empowerment (ACCE), a statewide advocacy organization that was also instrumental in the development of AB 1482.

To the right of this blog article is a list of tenant resources and non-profit organizations that can be consulted in the event of either an unlawful rent increase or a termination of tenancy without just cause. 

Tenants' Together, another leading state-wide tenancy rights advocacy group, has developed an AB 1482 "Toolkit" which provides exceedingly helpful information to navigate this new law.

 AB 1482 is an act to add and repeal Cal. Civ. Code Sections 

Just Cause Protections CCC 1946.2

Rent Regulations CCC 1947.12

Rental Rates for Affordable Housing CCC 1947.13

[1] In some rent-controlled jurisdictions, if a landlord “improves” the building by painting it or installing new plumbing or by making other improvements, the cost plus the interest on the loan value that may be required to invest in these improvements can be passed along to the tenants as a shared cost over a period of years.

[2] If the single-family home or condominium is privately owned, the Owner must timely and properly notify the tenant about the exemption from the TPA of 2019.

[3] The Owner intends to remove the building from the rental market.