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| 1 | + | Amended IN Assembly March 24, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2710Introduced by Assembly Member KalraFebruary 18, 2022An act to amend Section 17000 of the Health and Safety Code, relating to housing. An act to add Article 1.6 (commencing with Section 1102.50) to Chapter 2 of Title 4 of Part 4 of Division 2 of, and to add Section 2923.56 to, the Civil Code, relating to real property.LEGISLATIVE COUNSEL'S DIGESTAB 2710, as amended, Kalra. Employee Housing Act. Residential real property: sale of rental properties: right of first offer.Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property.This bill would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential property except as specified, to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. The bill would exempt certain transfers of a residential real property from its provisions, including, among others, a transfer between spouses, domestic partners, parent and child, siblings, grandparent and grandchild, a transfer pursuant to a court order, and a transfer by eminent domain.This bill would require the owner of the residential real property to notify each tenant and each qualified entity, as defined, of the owners intent to sell the residential real property. The bill would provide each qualified entity with 10 days to notify the property owner of their interest in purchasing the property and further provide a qualified entity with either 60 days or 40 days, depending on the number of units of the property, to submit an offer to purchase the residential real property.This bill would allow a property owner to sell the property to any party if the property owner does not receive any interest to purchase the property from a qualified entity or receive an offer from a qualified entity within these timeframes. The bill would allow a property owner to reject any offer received from a qualified entity and sell to a party that is not a qualified entity, but would provide a qualified entity that submits a rejected offer with 10 days to invoke a right of first refusal to accept a subsequent offer accepted by the property owner, as specified.This bill would require a qualified entity that purchases a residential real property pursuant to these provisions and all successive owners to retain all existing tenancies and to restrict the units of the property to rents affordable to persons and families of low and moderate income, with the maximum average income of the tenants not to exceed 80% of the area median income, as specified. The bill would provide that these affordability requirements shall be recorded, as specified, and that the affordability requirements are enforceable, as specified. The bill would require the qualified entity to commit to providing the tenants of a single-family residential real property or a current or future resident organization in a multifamily residential real property with 18 months to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, after the qualified entity takes title of the property.This bill would require the Department of Housing and Community Development to develop a process for qualified entities, including, among others, a local public entity, eligible nonprofit corporation, limited equity housing cooperative, and resident organizations formed for the purpose of acquiring a multifamily residential real property, to notify the department of their interest in purchasing residential real property. The bill would require the department to maintain a list of those organizations that have submitted this notice on its internet website.This bill would require each owner that sells a residential real property to record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, as specified, and would make failure to file the certificate an infraction punishable as specified. By expanding existing crimes, the bill would impose a state-mandated local program.The bill would also grant a private cause of action to specified entities to enforce the provisions of the bill, and would allow for civil remedies, as specified.Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law, with respect to residential real property containing up to 4 dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale.This bill would additionally require a mortgagee, trustee, beneficiary, or authorized agent to, upon filing a notice of default, provide to the mortgagor or trustor a list of qualified entities located within the county of the residential real property, as defined. The bill would also require the mortgagee, trustee, beneficiary, or authorized agent to notify the tenant of the residential real property of the filing of a notice of default.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Existing law, the Employee Housing Act, among other things, requires that buildings used for human habitation, and buildings accessory thereto, comply with the building standards in the California Building Standards Code relating to employee housing, as defined.This bill would make a nonsubstantive change to the provision naming that act.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Article 1.6 (commencing with Section 1102.50) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read: Article 1.6. Stable Homes Act1102.50. For purposes of this part:(a) Department means the Department of Housing and Community Development.(b) (1) Residential real property means any of the following:(A) A single-family residential property that is occupied by a tenant.(B) A multifamily residential property, whether vacant or occupied by tenants.(2) Residential real property does not include any of the following:(A) A property that is currently subject to a regulatory agreement with a governmental agency that restricts rents to occupancy by low-income households and is being transferred to a nonprofit entity, or a limited partnership or limited liability company controlled by a nonprofit, that agrees to a condition of the sale or transfer to record a new regulatory agreement with a governmental agency that restricts occupancy to eligible low-income households for at least 30 years.(B) A property owned by a local, state, or federal government.(C) A property owned by and operated as a hospital, convent, monastery, extended care facility, or convalescent home.(D) A dormitory owned and operated by an educational institution.(E) A single-family property that an owner occupies as their principal residence.(F) A single-family property with an accessory dwelling unit or other secondary dwelling unit where an owner occupies either the single-family property or the secondary unit as their principal residence.(G) A property owned by a corporation that is owned, occupied, and controlled by a majority of residents.(c) Qualified entity means either of the following:(1) A tenant of a single-family residential property.(2) An organization registered pursuant to Section 1102.56.1102.52. (a) An owner of residential property shall comply with the requirements of this section before taking any of the following actions:(1) Offering the residential real property for sale to any purchaser other than a qualified entity.(2) Soliciting any offer to purchase the residential real property from any purchaser other than a qualified entity.(3) Accepting any unsolicited offer to purchase the residential real property from any party other than a qualified entity.(4) Entering into a contract for sale of the residential real property with any party other than a qualified entity, whether through listing or off-market sale, whether individual properties or a bundled portfolio of properties.(b) (1) An owner of residential real property shall send notice of the owners intent to sell the property to each tenant, and to each organization that has registered with the department pursuant to Section 1102.56.(2) The notice required by this subdivision shall include the location and a description of the residential real property.(c) (1) A qualified entity may, within 10 days of receipt of the notice, send notice to the property owner expressing interest in purchasing the property.(2) If the property owner does not receive notice expressing interest in purchasing the property from any qualified entity, the property owner may proceed in selling the property without regard to this section.(d) If the property owner receives a written notice expressing interest in purchasing the property from any qualified entity, the property owner shall provide the interested party with a disclosure package that provides, at a minimum, all of the following information:(1) The unit number or other designation of each rental unit of the residential real property.(2) The number of bedrooms and bathrooms in each rental unit.(3) The move-in date of each tenant of the residential real property.(4) Base rent for each rental unit of the residential real property.(5) The residential real propertys costs that are passed through to each tenant, if any.(6) Whether each tenant has a written lease or rental agreement.(7) The annual expenses for the residential real property, including, but not limited to, management, insurance, utilities, and maintenance costs.(e) (1) After receiving the disclosure package, if the qualified entity remains interested in purchasing the residential real property, the qualified entity shall, within 20 days, give notice of its interest to purchase the property to each tenant.(2) Within 20 days of receiving the disclosure package, the qualified entity may request to meet and confer with the property owner to confirm interest in purchasing the residential real property. The property owner shall meet and confer with the qualified entity upon request.(f) (1) A qualified entity desiring to purchase a residential real property consisting of five or more units shall submit an offer to purchase the property within 60 days of receiving the disclosure package required pursuant to subdivision (d). If the property consists of four or fewer units, the qualified entity desiring to purchase a residential real property shall submit an offer to purchase the property within 40 days of receiving the disclosure package.(2) If the property owner does not receive an offer to purchase the property within the applicable timeframes in paragraph (1), the property owner may proceed in selling the property without regard to this section.(3) If a property owner receives a substantially equivalent offer from both a tenant of a single-family residential real property or a resident organization in a multifamily residential real property, and some other qualified entity, the property owner shall give priority to the tenants or the resident organizations offer.(g) (1) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a single-family residential real property, the property owner shall afford the qualified entity 30 days after the date of entering into the contract with the qualified entity to secure financing.(B) If, within 30 days after the date of contracting for the single-family residential real property, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 45 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(2) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity 90 days after the date of the entering into contract with the qualified entity to secure financing(B) If, within 90 days after the date of contracting for the multifamily residential real property containing two to four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(3) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing more than four units, the property owner shall afford the qualified entity 120 days after the date of the entering into contract with the tenant or qualified entity to secure financing(B) If, within 120 days after the date of contracting for the multifamily residential real property containing more than four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 160 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(4) If the tenant or qualified entity does not secure financing within the applicable timeframe of this subdivision, the property owner may proceed in selling the property without regard to this section.(h) (1) A property owner may reject any offer submitted to purchase a residential real property pursuant to this section.(2) If the property owner receives an offer pursuant to subdivision (f) and rejects that offer, the property owner may sell the property to any other buyer subject to paragraph (3).(3) If the property owner rejects an offer received pursuant to subdivision (f) and then intends to accept an offer from a party that is not a qualified entity, the property owner shall do both of the following:(A) Notify the qualified entity that the property owner intends to accept an offer from a party that is not a qualified entity.(B) Provide the qualified entity of a rejected offer with 10 days to invoke a right of first refusal to accept the offer submitted by a party that is not a qualified entity on the same terms.(4) A qualified entity that does not receive notice from a property owner as required by subdivision (b) shall be given 80 days to invoke a right of first refusal to an offer submitted by a party that is not a qualified entity that is accepted by the property owner.(i) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available.(j) This section shall not apply to the following transfers of residential real property:(1) An inter vivos transfer, whether or not for consideration, between spouses, domestic partners, parent and child, siblings, or grandparent and grandchild.(2) A transfer for consideration by a decedents estate to members of the decedents family if the consideration arising from the transfer will pass from the decedents estate to, or solely for the benefit of, a charity. For purposes of this paragraph, members of the decedents family includes all of the following:(A) A spouse, domestic partner, parent, child, grandparent, or grandchild.(B) A trust for the primary benefit of a spouse, domestic partner, parent, child, grandparent, or grandchild.(3) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust.(4) A transfer to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust.(5) A transfer pursuant to court order or court-approved settlement.(6) A transfer by eminent domain or under threat of eminent domain.(k) An owner of residential real property shall not retaliate against or harass a tenant seeking to exercise their rights under this article or engage in conduct intended to prevent a tenant from exercising those rights.1102.54. (a) A qualified entity that acquires a residential real property pursuant to Section 1102.52, as well as all successive owners, shall be subject to all of the following:(1) (A) All existing tenancies of the residential real property shall be retained on the same terms that were in effect before the acquisition, except as permitted by state and local law. An existing tenancy shall not be terminated for failure to meet income restrictions imposed by this section.(B) A tenant, including existing tenancies and new tenancies created after the acquisition of the residential real property pursuant to Section 1102.52, shall not be evicted except for just cause as permitted by state and local law.(2) (A) The qualified entity shall restrict the rental rate of vacant units of the residential real property to be affordable to persons and families of low and moderate income and lower income households, with the maximum average rent of the units to be affordable to persons and families with 80 percent of the area median income.(B) (i) If, upon acquiring the residential real property the average rental rate of the units exceeds the maximum average rental rate required pursuant to subparagraph (A), the owner of the residential real property shall rent vacant units at a rate affordable to persons and families whose incomes do not exceed 60 percent of the area median income until the average rental rate complies with subparagraph (A).(ii) If the average rental rate of the residential real property complies with subparagraph (A), the owner of the residential real property may rent vacant units at a rental rate affordable to persons and families of low and moderate income, provided that the average rental rate remains in compliance with subparagraph (A).(C) For purposes of this paragraph, whether a rental rate is affordable shall be determined in the manner described in Section 50053 of the Health and Safety Code.(3) (A) The qualified entity shall commit to provide the tenant of a single-family residential real property or current or future resident organization in a multifamily residential real property with fewer than 20 units the opportunity to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, within 18 months of taking title to the residential real property.(B) For a multifamily residential real property with between 2 and 20 units, the qualified entity may offer this opportunity to purchase only to a current or future resident organization that would take title as a limited-equity housing cooperative, as defined in Section 817.(C) The tenant or resident organization may assign their right to purchase the residential real property to any qualified entity at any time during the process specified in Section 1102.52.(4) The residential real property shall not be sold for more than an affordable resale price.(b) For purposes of this section:(1) Affordable resale price means the purchase price paid by the qualified entity to acquire the residential real property pursuant to this article adjusted for both of the following:(A) Inflation as measured by the regional Consumer Price Index.(B) Capital improvements made by the qualified entity, but no more than 25 percent of the appreciated value as determined by the difference between the appraised value at the time of purchase by the qualified entity and the appraised value at the time of resale.(2) Area median income means the same as defined in Section 50093 of the Health and Safety Code.(3) Lower income households means the same as defined in Section 50079.5 of the Health and Safety Code.(4) Persons and families of low and moderate income means the same as defined in Section 50093 of the Health and Safety Code.1102.56. (a) (1) The Department of Housing and Community Development shall develop a process by which any of the organizations described in subdivision (b) may notify the department of their interest in purchasing residential real property pursuant to the part.(b) The following types of organizations may submit a notification to the department pursuant to subdivision (a):(1) A local public entity, as defined in Section 50079 of the Health and Safety Code.(2) An eligible nonprofit corporation based in California whose primary activity is the development and preservation of affordable rental housing.(3) A limited partnership in which the managing general partner is an eligible nonprofit corporation.(4) A limited liability company in which the managing member is an eligible nonprofit corporation.(5) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(6) A corporation controlled by a majority of residents.(7) A limited-equity housing cooperative as defined in Section 817.(8) A resident organization formed for the purpose of acquiring a multifamily residential real property in which the residents reside, or a single-family residential real property, to convert the property to resident ownership.(c) The department shall maintain on its internet website an up-to-date listing of all qualified entities that have submitted a notification to the department pursuant to subdivision (a) on its internet website.1102.58. (a) Each owner that sells a residential real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies:(1) The owner has substantially complied with the requirements of this article, with a copy of the notice to tenants attached(2) The owner or transaction is exempt from the requirements of this article pursuant to Section 1102.52.(b) (1) Each certification of compliance shall include the address of the relevant residential real property.(2) Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine schedule established pursuant to subdivision (b) of Section 36900 of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) for each unit of the residential real property and for each day of noncompliance.(c) The affordability requirements in Section 1102.54 shall be contained in a covenant or restriction recorded against the residential real property at the time of sale, which shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:(1) A resident of a unit subject to this section.(2) A residents association with members who reside in units subject to this section.(3) A former resident of a unit subject to this section who last resided in that unit.(4) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:(A) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.(B) Is able and willing to occupy that particular unit.(C) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.(D) Is on an affordable housing waiting list, is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and is able and willing to occupy a unit subject to this section.(5) The state or the city, county, or city and county in which the residential real property is located.(6) An organization registered pursuant to Section 1102.56.(d) (1) Any party listed in subdivision (c) may seek enforcement of any right or provision under this article in the superior court and, upon prevailing, shall be entitled to the following remedies:(A) Damages in an amount sufficient to remedy the harm to the qualified entity. There shall be a rebuttable presumption that the amount of damages is equal to the difference between the price of the residential real property at the time of sale in violation of this article and the price for which the qualified entity could purchase the residential real property at the time that damages are awarded.(B) If the owner willfully or knowingly sells the residential real property without complying with this article, the court shall impose a civil penalty in an amount proportional to the culpability of the owner and the value of the residential real property. There shall be a rebuttable presumption that the amount is equal to 10 percent of the sale price for a first violation, 20 percent for a second violation, and 30 percent for each subsequent violation.(C) Reasonable attorneys fees.(2) In addition to any other remedy available under this article or any other law, the superior court may enjoin a sale or other action taken by the owner of the residential real property in violation of this article.1102.60. (a) Except as provided in subdivision (b), this part shall not preempt or invalidate a local ordinance, regulation, or other policy that provides a qualified entity with a right of first offer, right of first refusal, or other opportunity to purchase a residential real property.(b) If a local ordinance, regulation, or other policy conflicts with this article, the provision that provides the qualified entity with a stronger right to purchase the residential real property shall prevail.SEC. 2. Section 2923.56 is added to the Civil Code, to read:2923.56. (a) With respect to residential real property, as defined in subdivision (b) of Section 1102.50, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following upon recording a notice of default:(1) Provide the mortgagor or trustor with a list of the qualified entities located within the county of the residential real property that have provided notice to the Department of Housing and Community Development pursuant to Section 1102.56.(2) Provide notice to each tenant of the residential real property of the notice of default being filed.(b) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SECTION 1.Section 17000 of the Health and Safety Code is amended to read:17000.This part shall be known, and may be cited, as the Employee Housing Act. | |
| 2 | 2 | ||
| 3 | - | Amended IN Assembly | |
| 3 | + | Amended IN Assembly March 24, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2710Introduced by Assembly Member KalraFebruary 18, 2022An act to amend Section 17000 of the Health and Safety Code, relating to housing. An act to add Article 1.6 (commencing with Section 1102.50) to Chapter 2 of Title 4 of Part 4 of Division 2 of, and to add Section 2923.56 to, the Civil Code, relating to real property.LEGISLATIVE COUNSEL'S DIGESTAB 2710, as amended, Kalra. Employee Housing Act. Residential real property: sale of rental properties: right of first offer.Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property.This bill would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential property except as specified, to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. The bill would exempt certain transfers of a residential real property from its provisions, including, among others, a transfer between spouses, domestic partners, parent and child, siblings, grandparent and grandchild, a transfer pursuant to a court order, and a transfer by eminent domain.This bill would require the owner of the residential real property to notify each tenant and each qualified entity, as defined, of the owners intent to sell the residential real property. The bill would provide each qualified entity with 10 days to notify the property owner of their interest in purchasing the property and further provide a qualified entity with either 60 days or 40 days, depending on the number of units of the property, to submit an offer to purchase the residential real property.This bill would allow a property owner to sell the property to any party if the property owner does not receive any interest to purchase the property from a qualified entity or receive an offer from a qualified entity within these timeframes. The bill would allow a property owner to reject any offer received from a qualified entity and sell to a party that is not a qualified entity, but would provide a qualified entity that submits a rejected offer with 10 days to invoke a right of first refusal to accept a subsequent offer accepted by the property owner, as specified.This bill would require a qualified entity that purchases a residential real property pursuant to these provisions and all successive owners to retain all existing tenancies and to restrict the units of the property to rents affordable to persons and families of low and moderate income, with the maximum average income of the tenants not to exceed 80% of the area median income, as specified. The bill would provide that these affordability requirements shall be recorded, as specified, and that the affordability requirements are enforceable, as specified. The bill would require the qualified entity to commit to providing the tenants of a single-family residential real property or a current or future resident organization in a multifamily residential real property with 18 months to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, after the qualified entity takes title of the property.This bill would require the Department of Housing and Community Development to develop a process for qualified entities, including, among others, a local public entity, eligible nonprofit corporation, limited equity housing cooperative, and resident organizations formed for the purpose of acquiring a multifamily residential real property, to notify the department of their interest in purchasing residential real property. The bill would require the department to maintain a list of those organizations that have submitted this notice on its internet website.This bill would require each owner that sells a residential real property to record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, as specified, and would make failure to file the certificate an infraction punishable as specified. By expanding existing crimes, the bill would impose a state-mandated local program.The bill would also grant a private cause of action to specified entities to enforce the provisions of the bill, and would allow for civil remedies, as specified.Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law, with respect to residential real property containing up to 4 dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale.This bill would additionally require a mortgagee, trustee, beneficiary, or authorized agent to, upon filing a notice of default, provide to the mortgagor or trustor a list of qualified entities located within the county of the residential real property, as defined. The bill would also require the mortgagee, trustee, beneficiary, or authorized agent to notify the tenant of the residential real property of the filing of a notice of default.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Existing law, the Employee Housing Act, among other things, requires that buildings used for human habitation, and buildings accessory thereto, comply with the building standards in the California Building Standards Code relating to employee housing, as defined.This bill would make a nonsubstantive change to the provision naming that act.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly March 24, 2022 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly April 18, 2022 | |
| 8 | 7 | Amended IN Assembly March 24, 2022 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill | |
| 13 | 12 | ||
| 14 | 13 | No. 2710 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Assembly Member KalraFebruary 18, 2022 | |
| 17 | 16 | ||
| 18 | 17 | Introduced by Assembly Member Kalra | |
| 19 | 18 | February 18, 2022 | |
| 20 | 19 | ||
| 21 | - | An act to add Article 1.6 (commencing with Section 1102.50) to Chapter 2 of Title 4 of Part 4 of Division 2 of, and to add Section 2923.56 to, the Civil Code, relating to real property. | |
| 20 | + | An act to amend Section 17000 of the Health and Safety Code, relating to housing. An act to add Article 1.6 (commencing with Section 1102.50) to Chapter 2 of Title 4 of Part 4 of Division 2 of, and to add Section 2923.56 to, the Civil Code, relating to real property. | |
| 22 | 21 | ||
| 23 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 26 | 25 | ||
| 27 | - | AB 2710, as amended, Kalra. Residential real property: sale of rental properties: right of first offer. | |
| 26 | + | AB 2710, as amended, Kalra. Employee Housing Act. Residential real property: sale of rental properties: right of first offer. | |
| 28 | 27 | ||
| 29 | - | Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property.This bill would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential property except as specified, to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. The bill would exempt certain transfers of a residential real property from its provisions, including, among others, a transfer between spouses, domestic partners, parent and child, siblings, grandparent and grandchild, a transfer pursuant to a court order, and a transfer by eminent domain.This bill would require the owner of the residential real property to notify each tenant and each qualified entity, as defined, of the owners intent to sell the residential real property. The bill would provide each qualified entity with 10 days to notify the property owner of their interest in purchasing the property and further provide a qualified entity with either 60 days or 40 days, depending on the number of units of the property, to submit an offer to purchase the residential real property.This bill would allow a property owner to sell the property to any party if the property owner does not receive any interest to purchase the property from a qualified entity or receive an offer from a qualified entity within these timeframes. The bill would allow a property owner to reject any offer received from a qualified entity and sell to a party that is not a qualified entity, but would provide a qualified entity that submits a rejected offer with 10 days to invoke a right of first refusal to accept | |
| 28 | + | Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property.This bill would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential property except as specified, to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. The bill would exempt certain transfers of a residential real property from its provisions, including, among others, a transfer between spouses, domestic partners, parent and child, siblings, grandparent and grandchild, a transfer pursuant to a court order, and a transfer by eminent domain.This bill would require the owner of the residential real property to notify each tenant and each qualified entity, as defined, of the owners intent to sell the residential real property. The bill would provide each qualified entity with 10 days to notify the property owner of their interest in purchasing the property and further provide a qualified entity with either 60 days or 40 days, depending on the number of units of the property, to submit an offer to purchase the residential real property.This bill would allow a property owner to sell the property to any party if the property owner does not receive any interest to purchase the property from a qualified entity or receive an offer from a qualified entity within these timeframes. The bill would allow a property owner to reject any offer received from a qualified entity and sell to a party that is not a qualified entity, but would provide a qualified entity that submits a rejected offer with 10 days to invoke a right of first refusal to accept a subsequent offer accepted by the property owner, as specified.This bill would require a qualified entity that purchases a residential real property pursuant to these provisions and all successive owners to retain all existing tenancies and to restrict the units of the property to rents affordable to persons and families of low and moderate income, with the maximum average income of the tenants not to exceed 80% of the area median income, as specified. The bill would provide that these affordability requirements shall be recorded, as specified, and that the affordability requirements are enforceable, as specified. The bill would require the qualified entity to commit to providing the tenants of a single-family residential real property or a current or future resident organization in a multifamily residential real property with 18 months to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, after the qualified entity takes title of the property.This bill would require the Department of Housing and Community Development to develop a process for qualified entities, including, among others, a local public entity, eligible nonprofit corporation, limited equity housing cooperative, and resident organizations formed for the purpose of acquiring a multifamily residential real property, to notify the department of their interest in purchasing residential real property. The bill would require the department to maintain a list of those organizations that have submitted this notice on its internet website.This bill would require each owner that sells a residential real property to record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, as specified, and would make failure to file the certificate an infraction punishable as specified. By expanding existing crimes, the bill would impose a state-mandated local program.The bill would also grant a private cause of action to specified entities to enforce the provisions of the bill, and would allow for civil remedies, as specified.Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law, with respect to residential real property containing up to 4 dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale.This bill would additionally require a mortgagee, trustee, beneficiary, or authorized agent to, upon filing a notice of default, provide to the mortgagor or trustor a list of qualified entities located within the county of the residential real property, as defined. The bill would also require the mortgagee, trustee, beneficiary, or authorized agent to notify the tenant of the residential real property of the filing of a notice of default.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Existing law, the Employee Housing Act, among other things, requires that buildings used for human habitation, and buildings accessory thereto, comply with the building standards in the California Building Standards Code relating to employee housing, as defined.This bill would make a nonsubstantive change to the provision naming that act. | |
| 30 | 29 | ||
| 31 | 30 | Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property. | |
| 32 | 31 | ||
| 33 | 32 | This bill would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential property except as specified, to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property. The bill would exempt certain transfers of a residential real property from its provisions, including, among others, a transfer between spouses, domestic partners, parent and child, siblings, grandparent and grandchild, a transfer pursuant to a court order, and a transfer by eminent domain. | |
| 34 | 33 | ||
| 35 | 34 | This bill would require the owner of the residential real property to notify each tenant and each qualified entity, as defined, of the owners intent to sell the residential real property. The bill would provide each qualified entity with 10 days to notify the property owner of their interest in purchasing the property and further provide a qualified entity with either 60 days or 40 days, depending on the number of units of the property, to submit an offer to purchase the residential real property. | |
| 36 | 35 | ||
| 37 | - | This bill would allow a property owner to sell the property to any party if the property owner does not receive any interest to purchase the property from a qualified entity or receive an offer from a qualified entity within these timeframes. The bill would allow a property owner to reject any offer received from a qualified entity and sell to a party that is not a qualified entity, but would provide a qualified entity that submits a rejected offer with 10 days to invoke a right of first refusal to accept | |
| 36 | + | This bill would allow a property owner to sell the property to any party if the property owner does not receive any interest to purchase the property from a qualified entity or receive an offer from a qualified entity within these timeframes. The bill would allow a property owner to reject any offer received from a qualified entity and sell to a party that is not a qualified entity, but would provide a qualified entity that submits a rejected offer with 10 days to invoke a right of first refusal to accept a subsequent offer accepted by the property owner, as specified. | |
| 38 | 37 | ||
| 39 | - | This bill would require a qualified entity that purchases a residential real property pursuant to these provisions and all successive owners to retain all existing tenancies and to restrict the units of the property to rents affordable to persons and families of low and moderate income, with the maximum average income of the tenants not to exceed 80% of the area median income, as specified. The bill would provide that these affordability requirements shall be recorded, as specified, and that the affordability requirements are enforceable, as specified. The bill would require the qualified entity to commit to providing | |
| 38 | + | This bill would require a qualified entity that purchases a residential real property pursuant to these provisions and all successive owners to retain all existing tenancies and to restrict the units of the property to rents affordable to persons and families of low and moderate income, with the maximum average income of the tenants not to exceed 80% of the area median income, as specified. The bill would provide that these affordability requirements shall be recorded, as specified, and that the affordability requirements are enforceable, as specified. The bill would require the qualified entity to commit to providing the tenants of a single-family residential real property or a current or future resident organization in a multifamily residential real property with 18 months to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, after the qualified entity takes title of the property. | |
| 40 | 39 | ||
| 41 | 40 | This bill would require the Department of Housing and Community Development to develop a process for qualified entities, including, among others, a local public entity, eligible nonprofit corporation, limited equity housing cooperative, and resident organizations formed for the purpose of acquiring a multifamily residential real property, to notify the department of their interest in purchasing residential real property. The bill would require the department to maintain a list of those organizations that have submitted this notice on its internet website. | |
| 42 | 41 | ||
| 43 | 42 | This bill would require each owner that sells a residential real property to record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, as specified, and would make failure to file the certificate an infraction punishable as specified. By expanding existing crimes, the bill would impose a state-mandated local program. | |
| 44 | 43 | ||
| 45 | 44 | The bill would also grant a private cause of action to specified entities to enforce the provisions of the bill, and would allow for civil remedies, as specified. | |
| 46 | 45 | ||
| 47 | 46 | Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law, with respect to residential real property containing up to 4 dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale. | |
| 48 | 47 | ||
| 49 | 48 | This bill would additionally require a mortgagee, trustee, beneficiary, or authorized agent to, upon filing a notice of default, provide to the mortgagor or trustor a list of qualified entities located within the county of the residential real property, as defined. The bill would also require the mortgagee, trustee, beneficiary, or authorized agent to notify the tenant of the residential real property of the filing of a notice of default. | |
| 50 | 49 | ||
| 51 | 50 | The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. | |
| 52 | 51 | ||
| 53 | 52 | This bill would provide that no reimbursement is required by this act for a specified reason. | |
| 54 | 53 | ||
| 54 | + | Existing law, the Employee Housing Act, among other things, requires that buildings used for human habitation, and buildings accessory thereto, comply with the building standards in the California Building Standards Code relating to employee housing, as defined. | |
| 55 | + | ||
| 56 | + | ||
| 57 | + | ||
| 58 | + | This bill would make a nonsubstantive change to the provision naming that act. | |
| 59 | + | ||
| 60 | + | ||
| 61 | + | ||
| 55 | 62 | ## Digest Key | |
| 56 | 63 | ||
| 57 | 64 | ## Bill Text | |
| 58 | 65 | ||
| 59 | - | The people of the State of California do enact as follows:SECTION 1. Article 1.6 (commencing with Section 1102.50) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read: Article 1.6. Stable Homes Act1102.50. For purposes of this part: | |
| 66 | + | The people of the State of California do enact as follows:SECTION 1. Article 1.6 (commencing with Section 1102.50) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read: Article 1.6. Stable Homes Act1102.50. For purposes of this part:(a) Department means the Department of Housing and Community Development.(b) (1) Residential real property means any of the following:(A) A single-family residential property that is occupied by a tenant.(B) A multifamily residential property, whether vacant or occupied by tenants.(2) Residential real property does not include any of the following:(A) A property that is currently subject to a regulatory agreement with a governmental agency that restricts rents to occupancy by low-income households and is being transferred to a nonprofit entity, or a limited partnership or limited liability company controlled by a nonprofit, that agrees to a condition of the sale or transfer to record a new regulatory agreement with a governmental agency that restricts occupancy to eligible low-income households for at least 30 years.(B) A property owned by a local, state, or federal government.(C) A property owned by and operated as a hospital, convent, monastery, extended care facility, or convalescent home.(D) A dormitory owned and operated by an educational institution.(E) A single-family property that an owner occupies as their principal residence.(F) A single-family property with an accessory dwelling unit or other secondary dwelling unit where an owner occupies either the single-family property or the secondary unit as their principal residence.(G) A property owned by a corporation that is owned, occupied, and controlled by a majority of residents.(c) Qualified entity means either of the following:(1) A tenant of a single-family residential property.(2) An organization registered pursuant to Section 1102.56.1102.52. (a) An owner of residential property shall comply with the requirements of this section before taking any of the following actions:(1) Offering the residential real property for sale to any purchaser other than a qualified entity.(2) Soliciting any offer to purchase the residential real property from any purchaser other than a qualified entity.(3) Accepting any unsolicited offer to purchase the residential real property from any party other than a qualified entity.(4) Entering into a contract for sale of the residential real property with any party other than a qualified entity, whether through listing or off-market sale, whether individual properties or a bundled portfolio of properties.(b) (1) An owner of residential real property shall send notice of the owners intent to sell the property to each tenant, and to each organization that has registered with the department pursuant to Section 1102.56.(2) The notice required by this subdivision shall include the location and a description of the residential real property.(c) (1) A qualified entity may, within 10 days of receipt of the notice, send notice to the property owner expressing interest in purchasing the property.(2) If the property owner does not receive notice expressing interest in purchasing the property from any qualified entity, the property owner may proceed in selling the property without regard to this section.(d) If the property owner receives a written notice expressing interest in purchasing the property from any qualified entity, the property owner shall provide the interested party with a disclosure package that provides, at a minimum, all of the following information:(1) The unit number or other designation of each rental unit of the residential real property.(2) The number of bedrooms and bathrooms in each rental unit.(3) The move-in date of each tenant of the residential real property.(4) Base rent for each rental unit of the residential real property.(5) The residential real propertys costs that are passed through to each tenant, if any.(6) Whether each tenant has a written lease or rental agreement.(7) The annual expenses for the residential real property, including, but not limited to, management, insurance, utilities, and maintenance costs.(e) (1) After receiving the disclosure package, if the qualified entity remains interested in purchasing the residential real property, the qualified entity shall, within 20 days, give notice of its interest to purchase the property to each tenant.(2) Within 20 days of receiving the disclosure package, the qualified entity may request to meet and confer with the property owner to confirm interest in purchasing the residential real property. The property owner shall meet and confer with the qualified entity upon request.(f) (1) A qualified entity desiring to purchase a residential real property consisting of five or more units shall submit an offer to purchase the property within 60 days of receiving the disclosure package required pursuant to subdivision (d). If the property consists of four or fewer units, the qualified entity desiring to purchase a residential real property shall submit an offer to purchase the property within 40 days of receiving the disclosure package.(2) If the property owner does not receive an offer to purchase the property within the applicable timeframes in paragraph (1), the property owner may proceed in selling the property without regard to this section.(3) If a property owner receives a substantially equivalent offer from both a tenant of a single-family residential real property or a resident organization in a multifamily residential real property, and some other qualified entity, the property owner shall give priority to the tenants or the resident organizations offer.(g) (1) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a single-family residential real property, the property owner shall afford the qualified entity 30 days after the date of entering into the contract with the qualified entity to secure financing.(B) If, within 30 days after the date of contracting for the single-family residential real property, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 45 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(2) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity 90 days after the date of the entering into contract with the qualified entity to secure financing(B) If, within 90 days after the date of contracting for the multifamily residential real property containing two to four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(3) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing more than four units, the property owner shall afford the qualified entity 120 days after the date of the entering into contract with the tenant or qualified entity to secure financing(B) If, within 120 days after the date of contracting for the multifamily residential real property containing more than four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 160 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(4) If the tenant or qualified entity does not secure financing within the applicable timeframe of this subdivision, the property owner may proceed in selling the property without regard to this section.(h) (1) A property owner may reject any offer submitted to purchase a residential real property pursuant to this section.(2) If the property owner receives an offer pursuant to subdivision (f) and rejects that offer, the property owner may sell the property to any other buyer subject to paragraph (3).(3) If the property owner rejects an offer received pursuant to subdivision (f) and then intends to accept an offer from a party that is not a qualified entity, the property owner shall do both of the following:(A) Notify the qualified entity that the property owner intends to accept an offer from a party that is not a qualified entity.(B) Provide the qualified entity of a rejected offer with 10 days to invoke a right of first refusal to accept the offer submitted by a party that is not a qualified entity on the same terms.(4) A qualified entity that does not receive notice from a property owner as required by subdivision (b) shall be given 80 days to invoke a right of first refusal to an offer submitted by a party that is not a qualified entity that is accepted by the property owner.(i) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available.(j) This section shall not apply to the following transfers of residential real property:(1) An inter vivos transfer, whether or not for consideration, between spouses, domestic partners, parent and child, siblings, or grandparent and grandchild.(2) A transfer for consideration by a decedents estate to members of the decedents family if the consideration arising from the transfer will pass from the decedents estate to, or solely for the benefit of, a charity. For purposes of this paragraph, members of the decedents family includes all of the following:(A) A spouse, domestic partner, parent, child, grandparent, or grandchild.(B) A trust for the primary benefit of a spouse, domestic partner, parent, child, grandparent, or grandchild.(3) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust.(4) A transfer to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust.(5) A transfer pursuant to court order or court-approved settlement.(6) A transfer by eminent domain or under threat of eminent domain.(k) An owner of residential real property shall not retaliate against or harass a tenant seeking to exercise their rights under this article or engage in conduct intended to prevent a tenant from exercising those rights.1102.54. (a) A qualified entity that acquires a residential real property pursuant to Section 1102.52, as well as all successive owners, shall be subject to all of the following:(1) (A) All existing tenancies of the residential real property shall be retained on the same terms that were in effect before the acquisition, except as permitted by state and local law. An existing tenancy shall not be terminated for failure to meet income restrictions imposed by this section.(B) A tenant, including existing tenancies and new tenancies created after the acquisition of the residential real property pursuant to Section 1102.52, shall not be evicted except for just cause as permitted by state and local law.(2) (A) The qualified entity shall restrict the rental rate of vacant units of the residential real property to be affordable to persons and families of low and moderate income and lower income households, with the maximum average rent of the units to be affordable to persons and families with 80 percent of the area median income.(B) (i) If, upon acquiring the residential real property the average rental rate of the units exceeds the maximum average rental rate required pursuant to subparagraph (A), the owner of the residential real property shall rent vacant units at a rate affordable to persons and families whose incomes do not exceed 60 percent of the area median income until the average rental rate complies with subparagraph (A).(ii) If the average rental rate of the residential real property complies with subparagraph (A), the owner of the residential real property may rent vacant units at a rental rate affordable to persons and families of low and moderate income, provided that the average rental rate remains in compliance with subparagraph (A).(C) For purposes of this paragraph, whether a rental rate is affordable shall be determined in the manner described in Section 50053 of the Health and Safety Code.(3) (A) The qualified entity shall commit to provide the tenant of a single-family residential real property or current or future resident organization in a multifamily residential real property with fewer than 20 units the opportunity to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, within 18 months of taking title to the residential real property.(B) For a multifamily residential real property with between 2 and 20 units, the qualified entity may offer this opportunity to purchase only to a current or future resident organization that would take title as a limited-equity housing cooperative, as defined in Section 817.(C) The tenant or resident organization may assign their right to purchase the residential real property to any qualified entity at any time during the process specified in Section 1102.52.(4) The residential real property shall not be sold for more than an affordable resale price.(b) For purposes of this section:(1) Affordable resale price means the purchase price paid by the qualified entity to acquire the residential real property pursuant to this article adjusted for both of the following:(A) Inflation as measured by the regional Consumer Price Index.(B) Capital improvements made by the qualified entity, but no more than 25 percent of the appreciated value as determined by the difference between the appraised value at the time of purchase by the qualified entity and the appraised value at the time of resale.(2) Area median income means the same as defined in Section 50093 of the Health and Safety Code.(3) Lower income households means the same as defined in Section 50079.5 of the Health and Safety Code.(4) Persons and families of low and moderate income means the same as defined in Section 50093 of the Health and Safety Code.1102.56. (a) (1) The Department of Housing and Community Development shall develop a process by which any of the organizations described in subdivision (b) may notify the department of their interest in purchasing residential real property pursuant to the part.(b) The following types of organizations may submit a notification to the department pursuant to subdivision (a):(1) A local public entity, as defined in Section 50079 of the Health and Safety Code.(2) An eligible nonprofit corporation based in California whose primary activity is the development and preservation of affordable rental housing.(3) A limited partnership in which the managing general partner is an eligible nonprofit corporation.(4) A limited liability company in which the managing member is an eligible nonprofit corporation.(5) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(6) A corporation controlled by a majority of residents.(7) A limited-equity housing cooperative as defined in Section 817.(8) A resident organization formed for the purpose of acquiring a multifamily residential real property in which the residents reside, or a single-family residential real property, to convert the property to resident ownership.(c) The department shall maintain on its internet website an up-to-date listing of all qualified entities that have submitted a notification to the department pursuant to subdivision (a) on its internet website.1102.58. (a) Each owner that sells a residential real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies:(1) The owner has substantially complied with the requirements of this article, with a copy of the notice to tenants attached(2) The owner or transaction is exempt from the requirements of this article pursuant to Section 1102.52.(b) (1) Each certification of compliance shall include the address of the relevant residential real property.(2) Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine schedule established pursuant to subdivision (b) of Section 36900 of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) for each unit of the residential real property and for each day of noncompliance.(c) The affordability requirements in Section 1102.54 shall be contained in a covenant or restriction recorded against the residential real property at the time of sale, which shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:(1) A resident of a unit subject to this section.(2) A residents association with members who reside in units subject to this section.(3) A former resident of a unit subject to this section who last resided in that unit.(4) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:(A) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.(B) Is able and willing to occupy that particular unit.(C) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.(D) Is on an affordable housing waiting list, is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and is able and willing to occupy a unit subject to this section.(5) The state or the city, county, or city and county in which the residential real property is located.(6) An organization registered pursuant to Section 1102.56.(d) (1) Any party listed in subdivision (c) may seek enforcement of any right or provision under this article in the superior court and, upon prevailing, shall be entitled to the following remedies:(A) Damages in an amount sufficient to remedy the harm to the qualified entity. There shall be a rebuttable presumption that the amount of damages is equal to the difference between the price of the residential real property at the time of sale in violation of this article and the price for which the qualified entity could purchase the residential real property at the time that damages are awarded.(B) If the owner willfully or knowingly sells the residential real property without complying with this article, the court shall impose a civil penalty in an amount proportional to the culpability of the owner and the value of the residential real property. There shall be a rebuttable presumption that the amount is equal to 10 percent of the sale price for a first violation, 20 percent for a second violation, and 30 percent for each subsequent violation.(C) Reasonable attorneys fees.(2) In addition to any other remedy available under this article or any other law, the superior court may enjoin a sale or other action taken by the owner of the residential real property in violation of this article.1102.60. (a) Except as provided in subdivision (b), this part shall not preempt or invalidate a local ordinance, regulation, or other policy that provides a qualified entity with a right of first offer, right of first refusal, or other opportunity to purchase a residential real property.(b) If a local ordinance, regulation, or other policy conflicts with this article, the provision that provides the qualified entity with a stronger right to purchase the residential real property shall prevail.SEC. 2. Section 2923.56 is added to the Civil Code, to read:2923.56. (a) With respect to residential real property, as defined in subdivision (b) of Section 1102.50, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following upon recording a notice of default:(1) Provide the mortgagor or trustor with a list of the qualified entities located within the county of the residential real property that have provided notice to the Department of Housing and Community Development pursuant to Section 1102.56.(2) Provide notice to each tenant of the residential real property of the notice of default being filed.(b) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SECTION 1.Section 17000 of the Health and Safety Code is amended to read:17000.This part shall be known, and may be cited, as the Employee Housing Act. | |
| 60 | 67 | ||
| 61 | 68 | The people of the State of California do enact as follows: | |
| 62 | 69 | ||
| 63 | 70 | ## The people of the State of California do enact as follows: | |
| 64 | 71 | ||
| 65 | - | SECTION 1. Article 1.6 (commencing with Section 1102.50) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read: Article 1.6. Stable Homes Act1102.50. For purposes of this part | |
| 72 | + | SECTION 1. Article 1.6 (commencing with Section 1102.50) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read: Article 1.6. Stable Homes Act1102.50. For purposes of this part:(a) Department means the Department of Housing and Community Development.(b) (1) Residential real property means any of the following:(A) A single-family residential property that is occupied by a tenant.(B) A multifamily residential property, whether vacant or occupied by tenants.(2) Residential real property does not include any of the following:(A) A property that is currently subject to a regulatory agreement with a governmental agency that restricts rents to occupancy by low-income households and is being transferred to a nonprofit entity, or a limited partnership or limited liability company controlled by a nonprofit, that agrees to a condition of the sale or transfer to record a new regulatory agreement with a governmental agency that restricts occupancy to eligible low-income households for at least 30 years.(B) A property owned by a local, state, or federal government.(C) A property owned by and operated as a hospital, convent, monastery, extended care facility, or convalescent home.(D) A dormitory owned and operated by an educational institution.(E) A single-family property that an owner occupies as their principal residence.(F) A single-family property with an accessory dwelling unit or other secondary dwelling unit where an owner occupies either the single-family property or the secondary unit as their principal residence.(G) A property owned by a corporation that is owned, occupied, and controlled by a majority of residents.(c) Qualified entity means either of the following:(1) A tenant of a single-family residential property.(2) An organization registered pursuant to Section 1102.56.1102.52. (a) An owner of residential property shall comply with the requirements of this section before taking any of the following actions:(1) Offering the residential real property for sale to any purchaser other than a qualified entity.(2) Soliciting any offer to purchase the residential real property from any purchaser other than a qualified entity.(3) Accepting any unsolicited offer to purchase the residential real property from any party other than a qualified entity.(4) Entering into a contract for sale of the residential real property with any party other than a qualified entity, whether through listing or off-market sale, whether individual properties or a bundled portfolio of properties.(b) (1) An owner of residential real property shall send notice of the owners intent to sell the property to each tenant, and to each organization that has registered with the department pursuant to Section 1102.56.(2) The notice required by this subdivision shall include the location and a description of the residential real property.(c) (1) A qualified entity may, within 10 days of receipt of the notice, send notice to the property owner expressing interest in purchasing the property.(2) If the property owner does not receive notice expressing interest in purchasing the property from any qualified entity, the property owner may proceed in selling the property without regard to this section.(d) If the property owner receives a written notice expressing interest in purchasing the property from any qualified entity, the property owner shall provide the interested party with a disclosure package that provides, at a minimum, all of the following information:(1) The unit number or other designation of each rental unit of the residential real property.(2) The number of bedrooms and bathrooms in each rental unit.(3) The move-in date of each tenant of the residential real property.(4) Base rent for each rental unit of the residential real property.(5) The residential real propertys costs that are passed through to each tenant, if any.(6) Whether each tenant has a written lease or rental agreement.(7) The annual expenses for the residential real property, including, but not limited to, management, insurance, utilities, and maintenance costs.(e) (1) After receiving the disclosure package, if the qualified entity remains interested in purchasing the residential real property, the qualified entity shall, within 20 days, give notice of its interest to purchase the property to each tenant.(2) Within 20 days of receiving the disclosure package, the qualified entity may request to meet and confer with the property owner to confirm interest in purchasing the residential real property. The property owner shall meet and confer with the qualified entity upon request.(f) (1) A qualified entity desiring to purchase a residential real property consisting of five or more units shall submit an offer to purchase the property within 60 days of receiving the disclosure package required pursuant to subdivision (d). If the property consists of four or fewer units, the qualified entity desiring to purchase a residential real property shall submit an offer to purchase the property within 40 days of receiving the disclosure package.(2) If the property owner does not receive an offer to purchase the property within the applicable timeframes in paragraph (1), the property owner may proceed in selling the property without regard to this section.(3) If a property owner receives a substantially equivalent offer from both a tenant of a single-family residential real property or a resident organization in a multifamily residential real property, and some other qualified entity, the property owner shall give priority to the tenants or the resident organizations offer.(g) (1) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a single-family residential real property, the property owner shall afford the qualified entity 30 days after the date of entering into the contract with the qualified entity to secure financing.(B) If, within 30 days after the date of contracting for the single-family residential real property, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 45 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(2) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity 90 days after the date of the entering into contract with the qualified entity to secure financing(B) If, within 90 days after the date of contracting for the multifamily residential real property containing two to four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(3) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing more than four units, the property owner shall afford the qualified entity 120 days after the date of the entering into contract with the tenant or qualified entity to secure financing(B) If, within 120 days after the date of contracting for the multifamily residential real property containing more than four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 160 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(4) If the tenant or qualified entity does not secure financing within the applicable timeframe of this subdivision, the property owner may proceed in selling the property without regard to this section.(h) (1) A property owner may reject any offer submitted to purchase a residential real property pursuant to this section.(2) If the property owner receives an offer pursuant to subdivision (f) and rejects that offer, the property owner may sell the property to any other buyer subject to paragraph (3).(3) If the property owner rejects an offer received pursuant to subdivision (f) and then intends to accept an offer from a party that is not a qualified entity, the property owner shall do both of the following:(A) Notify the qualified entity that the property owner intends to accept an offer from a party that is not a qualified entity.(B) Provide the qualified entity of a rejected offer with 10 days to invoke a right of first refusal to accept the offer submitted by a party that is not a qualified entity on the same terms.(4) A qualified entity that does not receive notice from a property owner as required by subdivision (b) shall be given 80 days to invoke a right of first refusal to an offer submitted by a party that is not a qualified entity that is accepted by the property owner.(i) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available.(j) This section shall not apply to the following transfers of residential real property:(1) An inter vivos transfer, whether or not for consideration, between spouses, domestic partners, parent and child, siblings, or grandparent and grandchild.(2) A transfer for consideration by a decedents estate to members of the decedents family if the consideration arising from the transfer will pass from the decedents estate to, or solely for the benefit of, a charity. For purposes of this paragraph, members of the decedents family includes all of the following:(A) A spouse, domestic partner, parent, child, grandparent, or grandchild.(B) A trust for the primary benefit of a spouse, domestic partner, parent, child, grandparent, or grandchild.(3) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust.(4) A transfer to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust.(5) A transfer pursuant to court order or court-approved settlement.(6) A transfer by eminent domain or under threat of eminent domain.(k) An owner of residential real property shall not retaliate against or harass a tenant seeking to exercise their rights under this article or engage in conduct intended to prevent a tenant from exercising those rights.1102.54. (a) A qualified entity that acquires a residential real property pursuant to Section 1102.52, as well as all successive owners, shall be subject to all of the following:(1) (A) All existing tenancies of the residential real property shall be retained on the same terms that were in effect before the acquisition, except as permitted by state and local law. An existing tenancy shall not be terminated for failure to meet income restrictions imposed by this section.(B) A tenant, including existing tenancies and new tenancies created after the acquisition of the residential real property pursuant to Section 1102.52, shall not be evicted except for just cause as permitted by state and local law.(2) (A) The qualified entity shall restrict the rental rate of vacant units of the residential real property to be affordable to persons and families of low and moderate income and lower income households, with the maximum average rent of the units to be affordable to persons and families with 80 percent of the area median income.(B) (i) If, upon acquiring the residential real property the average rental rate of the units exceeds the maximum average rental rate required pursuant to subparagraph (A), the owner of the residential real property shall rent vacant units at a rate affordable to persons and families whose incomes do not exceed 60 percent of the area median income until the average rental rate complies with subparagraph (A).(ii) If the average rental rate of the residential real property complies with subparagraph (A), the owner of the residential real property may rent vacant units at a rental rate affordable to persons and families of low and moderate income, provided that the average rental rate remains in compliance with subparagraph (A).(C) For purposes of this paragraph, whether a rental rate is affordable shall be determined in the manner described in Section 50053 of the Health and Safety Code.(3) (A) The qualified entity shall commit to provide the tenant of a single-family residential real property or current or future resident organization in a multifamily residential real property with fewer than 20 units the opportunity to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, within 18 months of taking title to the residential real property.(B) For a multifamily residential real property with between 2 and 20 units, the qualified entity may offer this opportunity to purchase only to a current or future resident organization that would take title as a limited-equity housing cooperative, as defined in Section 817.(C) The tenant or resident organization may assign their right to purchase the residential real property to any qualified entity at any time during the process specified in Section 1102.52.(4) The residential real property shall not be sold for more than an affordable resale price.(b) For purposes of this section:(1) Affordable resale price means the purchase price paid by the qualified entity to acquire the residential real property pursuant to this article adjusted for both of the following:(A) Inflation as measured by the regional Consumer Price Index.(B) Capital improvements made by the qualified entity, but no more than 25 percent of the appreciated value as determined by the difference between the appraised value at the time of purchase by the qualified entity and the appraised value at the time of resale.(2) Area median income means the same as defined in Section 50093 of the Health and Safety Code.(3) Lower income households means the same as defined in Section 50079.5 of the Health and Safety Code.(4) Persons and families of low and moderate income means the same as defined in Section 50093 of the Health and Safety Code.1102.56. (a) (1) The Department of Housing and Community Development shall develop a process by which any of the organizations described in subdivision (b) may notify the department of their interest in purchasing residential real property pursuant to the part.(b) The following types of organizations may submit a notification to the department pursuant to subdivision (a):(1) A local public entity, as defined in Section 50079 of the Health and Safety Code.(2) An eligible nonprofit corporation based in California whose primary activity is the development and preservation of affordable rental housing.(3) A limited partnership in which the managing general partner is an eligible nonprofit corporation.(4) A limited liability company in which the managing member is an eligible nonprofit corporation.(5) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(6) A corporation controlled by a majority of residents.(7) A limited-equity housing cooperative as defined in Section 817.(8) A resident organization formed for the purpose of acquiring a multifamily residential real property in which the residents reside, or a single-family residential real property, to convert the property to resident ownership.(c) The department shall maintain on its internet website an up-to-date listing of all qualified entities that have submitted a notification to the department pursuant to subdivision (a) on its internet website.1102.58. (a) Each owner that sells a residential real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies:(1) The owner has substantially complied with the requirements of this article, with a copy of the notice to tenants attached(2) The owner or transaction is exempt from the requirements of this article pursuant to Section 1102.52.(b) (1) Each certification of compliance shall include the address of the relevant residential real property.(2) Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine schedule established pursuant to subdivision (b) of Section 36900 of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) for each unit of the residential real property and for each day of noncompliance.(c) The affordability requirements in Section 1102.54 shall be contained in a covenant or restriction recorded against the residential real property at the time of sale, which shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:(1) A resident of a unit subject to this section.(2) A residents association with members who reside in units subject to this section.(3) A former resident of a unit subject to this section who last resided in that unit.(4) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:(A) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.(B) Is able and willing to occupy that particular unit.(C) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.(D) Is on an affordable housing waiting list, is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and is able and willing to occupy a unit subject to this section.(5) The state or the city, county, or city and county in which the residential real property is located.(6) An organization registered pursuant to Section 1102.56.(d) (1) Any party listed in subdivision (c) may seek enforcement of any right or provision under this article in the superior court and, upon prevailing, shall be entitled to the following remedies:(A) Damages in an amount sufficient to remedy the harm to the qualified entity. There shall be a rebuttable presumption that the amount of damages is equal to the difference between the price of the residential real property at the time of sale in violation of this article and the price for which the qualified entity could purchase the residential real property at the time that damages are awarded.(B) If the owner willfully or knowingly sells the residential real property without complying with this article, the court shall impose a civil penalty in an amount proportional to the culpability of the owner and the value of the residential real property. There shall be a rebuttable presumption that the amount is equal to 10 percent of the sale price for a first violation, 20 percent for a second violation, and 30 percent for each subsequent violation.(C) Reasonable attorneys fees.(2) In addition to any other remedy available under this article or any other law, the superior court may enjoin a sale or other action taken by the owner of the residential real property in violation of this article.1102.60. (a) Except as provided in subdivision (b), this part shall not preempt or invalidate a local ordinance, regulation, or other policy that provides a qualified entity with a right of first offer, right of first refusal, or other opportunity to purchase a residential real property.(b) If a local ordinance, regulation, or other policy conflicts with this article, the provision that provides the qualified entity with a stronger right to purchase the residential real property shall prevail. | |
| 66 | 73 | ||
| 67 | 74 | SECTION 1. Article 1.6 (commencing with Section 1102.50) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read: | |
| 68 | 75 | ||
| 69 | 76 | ### SECTION 1. | |
| 70 | 77 | ||
| 71 | - | Article 1.6. Stable Homes Act1102.50. For purposes of this part | |
| 78 | + | Article 1.6. Stable Homes Act1102.50. For purposes of this part:(a) Department means the Department of Housing and Community Development.(b) (1) Residential real property means any of the following:(A) A single-family residential property that is occupied by a tenant.(B) A multifamily residential property, whether vacant or occupied by tenants.(2) Residential real property does not include any of the following:(A) A property that is currently subject to a regulatory agreement with a governmental agency that restricts rents to occupancy by low-income households and is being transferred to a nonprofit entity, or a limited partnership or limited liability company controlled by a nonprofit, that agrees to a condition of the sale or transfer to record a new regulatory agreement with a governmental agency that restricts occupancy to eligible low-income households for at least 30 years.(B) A property owned by a local, state, or federal government.(C) A property owned by and operated as a hospital, convent, monastery, extended care facility, or convalescent home.(D) A dormitory owned and operated by an educational institution.(E) A single-family property that an owner occupies as their principal residence.(F) A single-family property with an accessory dwelling unit or other secondary dwelling unit where an owner occupies either the single-family property or the secondary unit as their principal residence.(G) A property owned by a corporation that is owned, occupied, and controlled by a majority of residents.(c) Qualified entity means either of the following:(1) A tenant of a single-family residential property.(2) An organization registered pursuant to Section 1102.56.1102.52. (a) An owner of residential property shall comply with the requirements of this section before taking any of the following actions:(1) Offering the residential real property for sale to any purchaser other than a qualified entity.(2) Soliciting any offer to purchase the residential real property from any purchaser other than a qualified entity.(3) Accepting any unsolicited offer to purchase the residential real property from any party other than a qualified entity.(4) Entering into a contract for sale of the residential real property with any party other than a qualified entity, whether through listing or off-market sale, whether individual properties or a bundled portfolio of properties.(b) (1) An owner of residential real property shall send notice of the owners intent to sell the property to each tenant, and to each organization that has registered with the department pursuant to Section 1102.56.(2) The notice required by this subdivision shall include the location and a description of the residential real property.(c) (1) A qualified entity may, within 10 days of receipt of the notice, send notice to the property owner expressing interest in purchasing the property.(2) If the property owner does not receive notice expressing interest in purchasing the property from any qualified entity, the property owner may proceed in selling the property without regard to this section.(d) If the property owner receives a written notice expressing interest in purchasing the property from any qualified entity, the property owner shall provide the interested party with a disclosure package that provides, at a minimum, all of the following information:(1) The unit number or other designation of each rental unit of the residential real property.(2) The number of bedrooms and bathrooms in each rental unit.(3) The move-in date of each tenant of the residential real property.(4) Base rent for each rental unit of the residential real property.(5) The residential real propertys costs that are passed through to each tenant, if any.(6) Whether each tenant has a written lease or rental agreement.(7) The annual expenses for the residential real property, including, but not limited to, management, insurance, utilities, and maintenance costs.(e) (1) After receiving the disclosure package, if the qualified entity remains interested in purchasing the residential real property, the qualified entity shall, within 20 days, give notice of its interest to purchase the property to each tenant.(2) Within 20 days of receiving the disclosure package, the qualified entity may request to meet and confer with the property owner to confirm interest in purchasing the residential real property. The property owner shall meet and confer with the qualified entity upon request.(f) (1) A qualified entity desiring to purchase a residential real property consisting of five or more units shall submit an offer to purchase the property within 60 days of receiving the disclosure package required pursuant to subdivision (d). If the property consists of four or fewer units, the qualified entity desiring to purchase a residential real property shall submit an offer to purchase the property within 40 days of receiving the disclosure package.(2) If the property owner does not receive an offer to purchase the property within the applicable timeframes in paragraph (1), the property owner may proceed in selling the property without regard to this section.(3) If a property owner receives a substantially equivalent offer from both a tenant of a single-family residential real property or a resident organization in a multifamily residential real property, and some other qualified entity, the property owner shall give priority to the tenants or the resident organizations offer.(g) (1) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a single-family residential real property, the property owner shall afford the qualified entity 30 days after the date of entering into the contract with the qualified entity to secure financing.(B) If, within 30 days after the date of contracting for the single-family residential real property, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 45 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(2) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity 90 days after the date of the entering into contract with the qualified entity to secure financing(B) If, within 90 days after the date of contracting for the multifamily residential real property containing two to four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(3) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing more than four units, the property owner shall afford the qualified entity 120 days after the date of the entering into contract with the tenant or qualified entity to secure financing(B) If, within 120 days after the date of contracting for the multifamily residential real property containing more than four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 160 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(4) If the tenant or qualified entity does not secure financing within the applicable timeframe of this subdivision, the property owner may proceed in selling the property without regard to this section.(h) (1) A property owner may reject any offer submitted to purchase a residential real property pursuant to this section.(2) If the property owner receives an offer pursuant to subdivision (f) and rejects that offer, the property owner may sell the property to any other buyer subject to paragraph (3).(3) If the property owner rejects an offer received pursuant to subdivision (f) and then intends to accept an offer from a party that is not a qualified entity, the property owner shall do both of the following:(A) Notify the qualified entity that the property owner intends to accept an offer from a party that is not a qualified entity.(B) Provide the qualified entity of a rejected offer with 10 days to invoke a right of first refusal to accept the offer submitted by a party that is not a qualified entity on the same terms.(4) A qualified entity that does not receive notice from a property owner as required by subdivision (b) shall be given 80 days to invoke a right of first refusal to an offer submitted by a party that is not a qualified entity that is accepted by the property owner.(i) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available.(j) This section shall not apply to the following transfers of residential real property:(1) An inter vivos transfer, whether or not for consideration, between spouses, domestic partners, parent and child, siblings, or grandparent and grandchild.(2) A transfer for consideration by a decedents estate to members of the decedents family if the consideration arising from the transfer will pass from the decedents estate to, or solely for the benefit of, a charity. For purposes of this paragraph, members of the decedents family includes all of the following:(A) A spouse, domestic partner, parent, child, grandparent, or grandchild.(B) A trust for the primary benefit of a spouse, domestic partner, parent, child, grandparent, or grandchild.(3) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust.(4) A transfer to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust.(5) A transfer pursuant to court order or court-approved settlement.(6) A transfer by eminent domain or under threat of eminent domain.(k) An owner of residential real property shall not retaliate against or harass a tenant seeking to exercise their rights under this article or engage in conduct intended to prevent a tenant from exercising those rights.1102.54. (a) A qualified entity that acquires a residential real property pursuant to Section 1102.52, as well as all successive owners, shall be subject to all of the following:(1) (A) All existing tenancies of the residential real property shall be retained on the same terms that were in effect before the acquisition, except as permitted by state and local law. An existing tenancy shall not be terminated for failure to meet income restrictions imposed by this section.(B) A tenant, including existing tenancies and new tenancies created after the acquisition of the residential real property pursuant to Section 1102.52, shall not be evicted except for just cause as permitted by state and local law.(2) (A) The qualified entity shall restrict the rental rate of vacant units of the residential real property to be affordable to persons and families of low and moderate income and lower income households, with the maximum average rent of the units to be affordable to persons and families with 80 percent of the area median income.(B) (i) If, upon acquiring the residential real property the average rental rate of the units exceeds the maximum average rental rate required pursuant to subparagraph (A), the owner of the residential real property shall rent vacant units at a rate affordable to persons and families whose incomes do not exceed 60 percent of the area median income until the average rental rate complies with subparagraph (A).(ii) If the average rental rate of the residential real property complies with subparagraph (A), the owner of the residential real property may rent vacant units at a rental rate affordable to persons and families of low and moderate income, provided that the average rental rate remains in compliance with subparagraph (A).(C) For purposes of this paragraph, whether a rental rate is affordable shall be determined in the manner described in Section 50053 of the Health and Safety Code.(3) (A) The qualified entity shall commit to provide the tenant of a single-family residential real property or current or future resident organization in a multifamily residential real property with fewer than 20 units the opportunity to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, within 18 months of taking title to the residential real property.(B) For a multifamily residential real property with between 2 and 20 units, the qualified entity may offer this opportunity to purchase only to a current or future resident organization that would take title as a limited-equity housing cooperative, as defined in Section 817.(C) The tenant or resident organization may assign their right to purchase the residential real property to any qualified entity at any time during the process specified in Section 1102.52.(4) The residential real property shall not be sold for more than an affordable resale price.(b) For purposes of this section:(1) Affordable resale price means the purchase price paid by the qualified entity to acquire the residential real property pursuant to this article adjusted for both of the following:(A) Inflation as measured by the regional Consumer Price Index.(B) Capital improvements made by the qualified entity, but no more than 25 percent of the appreciated value as determined by the difference between the appraised value at the time of purchase by the qualified entity and the appraised value at the time of resale.(2) Area median income means the same as defined in Section 50093 of the Health and Safety Code.(3) Lower income households means the same as defined in Section 50079.5 of the Health and Safety Code.(4) Persons and families of low and moderate income means the same as defined in Section 50093 of the Health and Safety Code.1102.56. (a) (1) The Department of Housing and Community Development shall develop a process by which any of the organizations described in subdivision (b) may notify the department of their interest in purchasing residential real property pursuant to the part.(b) The following types of organizations may submit a notification to the department pursuant to subdivision (a):(1) A local public entity, as defined in Section 50079 of the Health and Safety Code.(2) An eligible nonprofit corporation based in California whose primary activity is the development and preservation of affordable rental housing.(3) A limited partnership in which the managing general partner is an eligible nonprofit corporation.(4) A limited liability company in which the managing member is an eligible nonprofit corporation.(5) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(6) A corporation controlled by a majority of residents.(7) A limited-equity housing cooperative as defined in Section 817.(8) A resident organization formed for the purpose of acquiring a multifamily residential real property in which the residents reside, or a single-family residential real property, to convert the property to resident ownership.(c) The department shall maintain on its internet website an up-to-date listing of all qualified entities that have submitted a notification to the department pursuant to subdivision (a) on its internet website.1102.58. (a) Each owner that sells a residential real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies:(1) The owner has substantially complied with the requirements of this article, with a copy of the notice to tenants attached(2) The owner or transaction is exempt from the requirements of this article pursuant to Section 1102.52.(b) (1) Each certification of compliance shall include the address of the relevant residential real property.(2) Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine schedule established pursuant to subdivision (b) of Section 36900 of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) for each unit of the residential real property and for each day of noncompliance.(c) The affordability requirements in Section 1102.54 shall be contained in a covenant or restriction recorded against the residential real property at the time of sale, which shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:(1) A resident of a unit subject to this section.(2) A residents association with members who reside in units subject to this section.(3) A former resident of a unit subject to this section who last resided in that unit.(4) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:(A) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.(B) Is able and willing to occupy that particular unit.(C) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.(D) Is on an affordable housing waiting list, is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and is able and willing to occupy a unit subject to this section.(5) The state or the city, county, or city and county in which the residential real property is located.(6) An organization registered pursuant to Section 1102.56.(d) (1) Any party listed in subdivision (c) may seek enforcement of any right or provision under this article in the superior court and, upon prevailing, shall be entitled to the following remedies:(A) Damages in an amount sufficient to remedy the harm to the qualified entity. There shall be a rebuttable presumption that the amount of damages is equal to the difference between the price of the residential real property at the time of sale in violation of this article and the price for which the qualified entity could purchase the residential real property at the time that damages are awarded.(B) If the owner willfully or knowingly sells the residential real property without complying with this article, the court shall impose a civil penalty in an amount proportional to the culpability of the owner and the value of the residential real property. There shall be a rebuttable presumption that the amount is equal to 10 percent of the sale price for a first violation, 20 percent for a second violation, and 30 percent for each subsequent violation.(C) Reasonable attorneys fees.(2) In addition to any other remedy available under this article or any other law, the superior court may enjoin a sale or other action taken by the owner of the residential real property in violation of this article.1102.60. (a) Except as provided in subdivision (b), this part shall not preempt or invalidate a local ordinance, regulation, or other policy that provides a qualified entity with a right of first offer, right of first refusal, or other opportunity to purchase a residential real property.(b) If a local ordinance, regulation, or other policy conflicts with this article, the provision that provides the qualified entity with a stronger right to purchase the residential real property shall prevail. | |
| 72 | 79 | ||
| 73 | - | Article 1.6. Stable Homes Act1102.50. For purposes of this part | |
| 80 | + | Article 1.6. Stable Homes Act1102.50. For purposes of this part:(a) Department means the Department of Housing and Community Development.(b) (1) Residential real property means any of the following:(A) A single-family residential property that is occupied by a tenant.(B) A multifamily residential property, whether vacant or occupied by tenants.(2) Residential real property does not include any of the following:(A) A property that is currently subject to a regulatory agreement with a governmental agency that restricts rents to occupancy by low-income households and is being transferred to a nonprofit entity, or a limited partnership or limited liability company controlled by a nonprofit, that agrees to a condition of the sale or transfer to record a new regulatory agreement with a governmental agency that restricts occupancy to eligible low-income households for at least 30 years.(B) A property owned by a local, state, or federal government.(C) A property owned by and operated as a hospital, convent, monastery, extended care facility, or convalescent home.(D) A dormitory owned and operated by an educational institution.(E) A single-family property that an owner occupies as their principal residence.(F) A single-family property with an accessory dwelling unit or other secondary dwelling unit where an owner occupies either the single-family property or the secondary unit as their principal residence.(G) A property owned by a corporation that is owned, occupied, and controlled by a majority of residents.(c) Qualified entity means either of the following:(1) A tenant of a single-family residential property.(2) An organization registered pursuant to Section 1102.56.1102.52. (a) An owner of residential property shall comply with the requirements of this section before taking any of the following actions:(1) Offering the residential real property for sale to any purchaser other than a qualified entity.(2) Soliciting any offer to purchase the residential real property from any purchaser other than a qualified entity.(3) Accepting any unsolicited offer to purchase the residential real property from any party other than a qualified entity.(4) Entering into a contract for sale of the residential real property with any party other than a qualified entity, whether through listing or off-market sale, whether individual properties or a bundled portfolio of properties.(b) (1) An owner of residential real property shall send notice of the owners intent to sell the property to each tenant, and to each organization that has registered with the department pursuant to Section 1102.56.(2) The notice required by this subdivision shall include the location and a description of the residential real property.(c) (1) A qualified entity may, within 10 days of receipt of the notice, send notice to the property owner expressing interest in purchasing the property.(2) If the property owner does not receive notice expressing interest in purchasing the property from any qualified entity, the property owner may proceed in selling the property without regard to this section.(d) If the property owner receives a written notice expressing interest in purchasing the property from any qualified entity, the property owner shall provide the interested party with a disclosure package that provides, at a minimum, all of the following information:(1) The unit number or other designation of each rental unit of the residential real property.(2) The number of bedrooms and bathrooms in each rental unit.(3) The move-in date of each tenant of the residential real property.(4) Base rent for each rental unit of the residential real property.(5) The residential real propertys costs that are passed through to each tenant, if any.(6) Whether each tenant has a written lease or rental agreement.(7) The annual expenses for the residential real property, including, but not limited to, management, insurance, utilities, and maintenance costs.(e) (1) After receiving the disclosure package, if the qualified entity remains interested in purchasing the residential real property, the qualified entity shall, within 20 days, give notice of its interest to purchase the property to each tenant.(2) Within 20 days of receiving the disclosure package, the qualified entity may request to meet and confer with the property owner to confirm interest in purchasing the residential real property. The property owner shall meet and confer with the qualified entity upon request.(f) (1) A qualified entity desiring to purchase a residential real property consisting of five or more units shall submit an offer to purchase the property within 60 days of receiving the disclosure package required pursuant to subdivision (d). If the property consists of four or fewer units, the qualified entity desiring to purchase a residential real property shall submit an offer to purchase the property within 40 days of receiving the disclosure package.(2) If the property owner does not receive an offer to purchase the property within the applicable timeframes in paragraph (1), the property owner may proceed in selling the property without regard to this section.(3) If a property owner receives a substantially equivalent offer from both a tenant of a single-family residential real property or a resident organization in a multifamily residential real property, and some other qualified entity, the property owner shall give priority to the tenants or the resident organizations offer.(g) (1) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a single-family residential real property, the property owner shall afford the qualified entity 30 days after the date of entering into the contract with the qualified entity to secure financing.(B) If, within 30 days after the date of contracting for the single-family residential real property, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 45 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(2) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity 90 days after the date of the entering into contract with the qualified entity to secure financing(B) If, within 90 days after the date of contracting for the multifamily residential real property containing two to four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(3) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing more than four units, the property owner shall afford the qualified entity 120 days after the date of the entering into contract with the tenant or qualified entity to secure financing(B) If, within 120 days after the date of contracting for the multifamily residential real property containing more than four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 160 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(4) If the tenant or qualified entity does not secure financing within the applicable timeframe of this subdivision, the property owner may proceed in selling the property without regard to this section.(h) (1) A property owner may reject any offer submitted to purchase a residential real property pursuant to this section.(2) If the property owner receives an offer pursuant to subdivision (f) and rejects that offer, the property owner may sell the property to any other buyer subject to paragraph (3).(3) If the property owner rejects an offer received pursuant to subdivision (f) and then intends to accept an offer from a party that is not a qualified entity, the property owner shall do both of the following:(A) Notify the qualified entity that the property owner intends to accept an offer from a party that is not a qualified entity.(B) Provide the qualified entity of a rejected offer with 10 days to invoke a right of first refusal to accept the offer submitted by a party that is not a qualified entity on the same terms.(4) A qualified entity that does not receive notice from a property owner as required by subdivision (b) shall be given 80 days to invoke a right of first refusal to an offer submitted by a party that is not a qualified entity that is accepted by the property owner.(i) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available.(j) This section shall not apply to the following transfers of residential real property:(1) An inter vivos transfer, whether or not for consideration, between spouses, domestic partners, parent and child, siblings, or grandparent and grandchild.(2) A transfer for consideration by a decedents estate to members of the decedents family if the consideration arising from the transfer will pass from the decedents estate to, or solely for the benefit of, a charity. For purposes of this paragraph, members of the decedents family includes all of the following:(A) A spouse, domestic partner, parent, child, grandparent, or grandchild.(B) A trust for the primary benefit of a spouse, domestic partner, parent, child, grandparent, or grandchild.(3) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust.(4) A transfer to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust.(5) A transfer pursuant to court order or court-approved settlement.(6) A transfer by eminent domain or under threat of eminent domain.(k) An owner of residential real property shall not retaliate against or harass a tenant seeking to exercise their rights under this article or engage in conduct intended to prevent a tenant from exercising those rights.1102.54. (a) A qualified entity that acquires a residential real property pursuant to Section 1102.52, as well as all successive owners, shall be subject to all of the following:(1) (A) All existing tenancies of the residential real property shall be retained on the same terms that were in effect before the acquisition, except as permitted by state and local law. An existing tenancy shall not be terminated for failure to meet income restrictions imposed by this section.(B) A tenant, including existing tenancies and new tenancies created after the acquisition of the residential real property pursuant to Section 1102.52, shall not be evicted except for just cause as permitted by state and local law.(2) (A) The qualified entity shall restrict the rental rate of vacant units of the residential real property to be affordable to persons and families of low and moderate income and lower income households, with the maximum average rent of the units to be affordable to persons and families with 80 percent of the area median income.(B) (i) If, upon acquiring the residential real property the average rental rate of the units exceeds the maximum average rental rate required pursuant to subparagraph (A), the owner of the residential real property shall rent vacant units at a rate affordable to persons and families whose incomes do not exceed 60 percent of the area median income until the average rental rate complies with subparagraph (A).(ii) If the average rental rate of the residential real property complies with subparagraph (A), the owner of the residential real property may rent vacant units at a rental rate affordable to persons and families of low and moderate income, provided that the average rental rate remains in compliance with subparagraph (A).(C) For purposes of this paragraph, whether a rental rate is affordable shall be determined in the manner described in Section 50053 of the Health and Safety Code.(3) (A) The qualified entity shall commit to provide the tenant of a single-family residential real property or current or future resident organization in a multifamily residential real property with fewer than 20 units the opportunity to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, within 18 months of taking title to the residential real property.(B) For a multifamily residential real property with between 2 and 20 units, the qualified entity may offer this opportunity to purchase only to a current or future resident organization that would take title as a limited-equity housing cooperative, as defined in Section 817.(C) The tenant or resident organization may assign their right to purchase the residential real property to any qualified entity at any time during the process specified in Section 1102.52.(4) The residential real property shall not be sold for more than an affordable resale price.(b) For purposes of this section:(1) Affordable resale price means the purchase price paid by the qualified entity to acquire the residential real property pursuant to this article adjusted for both of the following:(A) Inflation as measured by the regional Consumer Price Index.(B) Capital improvements made by the qualified entity, but no more than 25 percent of the appreciated value as determined by the difference between the appraised value at the time of purchase by the qualified entity and the appraised value at the time of resale.(2) Area median income means the same as defined in Section 50093 of the Health and Safety Code.(3) Lower income households means the same as defined in Section 50079.5 of the Health and Safety Code.(4) Persons and families of low and moderate income means the same as defined in Section 50093 of the Health and Safety Code.1102.56. (a) (1) The Department of Housing and Community Development shall develop a process by which any of the organizations described in subdivision (b) may notify the department of their interest in purchasing residential real property pursuant to the part.(b) The following types of organizations may submit a notification to the department pursuant to subdivision (a):(1) A local public entity, as defined in Section 50079 of the Health and Safety Code.(2) An eligible nonprofit corporation based in California whose primary activity is the development and preservation of affordable rental housing.(3) A limited partnership in which the managing general partner is an eligible nonprofit corporation.(4) A limited liability company in which the managing member is an eligible nonprofit corporation.(5) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(6) A corporation controlled by a majority of residents.(7) A limited-equity housing cooperative as defined in Section 817.(8) A resident organization formed for the purpose of acquiring a multifamily residential real property in which the residents reside, or a single-family residential real property, to convert the property to resident ownership.(c) The department shall maintain on its internet website an up-to-date listing of all qualified entities that have submitted a notification to the department pursuant to subdivision (a) on its internet website.1102.58. (a) Each owner that sells a residential real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies:(1) The owner has substantially complied with the requirements of this article, with a copy of the notice to tenants attached(2) The owner or transaction is exempt from the requirements of this article pursuant to Section 1102.52.(b) (1) Each certification of compliance shall include the address of the relevant residential real property.(2) Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine schedule established pursuant to subdivision (b) of Section 36900 of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) for each unit of the residential real property and for each day of noncompliance.(c) The affordability requirements in Section 1102.54 shall be contained in a covenant or restriction recorded against the residential real property at the time of sale, which shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:(1) A resident of a unit subject to this section.(2) A residents association with members who reside in units subject to this section.(3) A former resident of a unit subject to this section who last resided in that unit.(4) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:(A) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.(B) Is able and willing to occupy that particular unit.(C) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.(D) Is on an affordable housing waiting list, is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and is able and willing to occupy a unit subject to this section.(5) The state or the city, county, or city and county in which the residential real property is located.(6) An organization registered pursuant to Section 1102.56.(d) (1) Any party listed in subdivision (c) may seek enforcement of any right or provision under this article in the superior court and, upon prevailing, shall be entitled to the following remedies:(A) Damages in an amount sufficient to remedy the harm to the qualified entity. There shall be a rebuttable presumption that the amount of damages is equal to the difference between the price of the residential real property at the time of sale in violation of this article and the price for which the qualified entity could purchase the residential real property at the time that damages are awarded.(B) If the owner willfully or knowingly sells the residential real property without complying with this article, the court shall impose a civil penalty in an amount proportional to the culpability of the owner and the value of the residential real property. There shall be a rebuttable presumption that the amount is equal to 10 percent of the sale price for a first violation, 20 percent for a second violation, and 30 percent for each subsequent violation.(C) Reasonable attorneys fees.(2) In addition to any other remedy available under this article or any other law, the superior court may enjoin a sale or other action taken by the owner of the residential real property in violation of this article.1102.60. (a) Except as provided in subdivision (b), this part shall not preempt or invalidate a local ordinance, regulation, or other policy that provides a qualified entity with a right of first offer, right of first refusal, or other opportunity to purchase a residential real property.(b) If a local ordinance, regulation, or other policy conflicts with this article, the provision that provides the qualified entity with a stronger right to purchase the residential real property shall prevail. | |
| 74 | 81 | ||
| 75 | 82 | Article 1.6. Stable Homes Act | |
| 76 | 83 | ||
| 77 | 84 | Article 1.6. Stable Homes Act | |
| 78 | 85 | ||
| 79 | - | 1102.50. For purposes of this part | |
| 86 | + | 1102.50. For purposes of this part:(a) Department means the Department of Housing and Community Development.(b) (1) Residential real property means any of the following:(A) A single-family residential property that is occupied by a tenant.(B) A multifamily residential property, whether vacant or occupied by tenants.(2) Residential real property does not include any of the following:(A) A property that is currently subject to a regulatory agreement with a governmental agency that restricts rents to occupancy by low-income households and is being transferred to a nonprofit entity, or a limited partnership or limited liability company controlled by a nonprofit, that agrees to a condition of the sale or transfer to record a new regulatory agreement with a governmental agency that restricts occupancy to eligible low-income households for at least 30 years.(B) A property owned by a local, state, or federal government.(C) A property owned by and operated as a hospital, convent, monastery, extended care facility, or convalescent home.(D) A dormitory owned and operated by an educational institution.(E) A single-family property that an owner occupies as their principal residence.(F) A single-family property with an accessory dwelling unit or other secondary dwelling unit where an owner occupies either the single-family property or the secondary unit as their principal residence.(G) A property owned by a corporation that is owned, occupied, and controlled by a majority of residents.(c) Qualified entity means either of the following:(1) A tenant of a single-family residential property.(2) An organization registered pursuant to Section 1102.56. | |
| 80 | 87 | ||
| 81 | 88 | ||
| 82 | 89 | ||
| 83 | - | 1102.50. For purposes of this part: | |
| 90 | + | 1102.50. For purposes of this part: | |
| 84 | 91 | ||
| 85 | 92 | (a) Department means the Department of Housing and Community Development. | |
| 86 | 93 | ||
| 87 | 94 | (b) (1) Residential real property means any of the following: | |
| 88 | 95 | ||
| 89 | 96 | (A) A single-family residential property that is occupied by a tenant. | |
| 90 | 97 | ||
| 91 | 98 | (B) A multifamily residential property, whether vacant or occupied by tenants. | |
| 92 | 99 | ||
| 93 | 100 | (2) Residential real property does not include any of the following: | |
| 94 | 101 | ||
| 95 | 102 | (A) A property that is currently subject to a regulatory agreement with a governmental agency that restricts rents to occupancy by low-income households and is being transferred to a nonprofit entity, or a limited partnership or limited liability company controlled by a nonprofit, that agrees to a condition of the sale or transfer to record a new regulatory agreement with a governmental agency that restricts occupancy to eligible low-income households for at least 30 years. | |
| 96 | 103 | ||
| 97 | 104 | (B) A property owned by a local, state, or federal government. | |
| 98 | 105 | ||
| 99 | 106 | (C) A property owned by and operated as a hospital, convent, monastery, extended care facility, or convalescent home. | |
| 100 | 107 | ||
| 101 | 108 | (D) A dormitory owned and operated by an educational institution. | |
| 102 | 109 | ||
| 103 | 110 | (E) A single-family property that an owner occupies as their principal residence. | |
| 104 | 111 | ||
| 105 | 112 | (F) A single-family property with an accessory dwelling unit or other secondary dwelling unit where an owner occupies either the single-family property or the secondary unit as their principal residence. | |
| 106 | 113 | ||
| 107 | - | (G) A property owned by a corporation that is owned, occupied, | |
| 114 | + | (G) A property owned by a corporation that is owned, occupied, and controlled by a majority of residents. | |
| 108 | 115 | ||
| 109 | 116 | (c) Qualified entity means either of the following: | |
| 110 | 117 | ||
| 111 | 118 | (1) A tenant of a single-family residential property. | |
| 112 | 119 | ||
| 113 | 120 | (2) An organization registered pursuant to Section 1102.56. | |
| 114 | 121 | ||
| 115 | - | 1102.52. (a) An owner of residential | |
| 122 | + | 1102.52. (a) An owner of residential property shall comply with the requirements of this section before taking any of the following actions:(1) Offering the residential real property for sale to any purchaser other than a qualified entity.(2) Soliciting any offer to purchase the residential real property from any purchaser other than a qualified entity.(3) Accepting any unsolicited offer to purchase the residential real property from any party other than a qualified entity.(4) Entering into a contract for sale of the residential real property with any party other than a qualified entity, whether through listing or off-market sale, whether individual properties or a bundled portfolio of properties.(b) (1) An owner of residential real property shall send notice of the owners intent to sell the property to each tenant, and to each organization that has registered with the department pursuant to Section 1102.56.(2) The notice required by this subdivision shall include the location and a description of the residential real property.(c) (1) A qualified entity may, within 10 days of receipt of the notice, send notice to the property owner expressing interest in purchasing the property.(2) If the property owner does not receive notice expressing interest in purchasing the property from any qualified entity, the property owner may proceed in selling the property without regard to this section.(d) If the property owner receives a written notice expressing interest in purchasing the property from any qualified entity, the property owner shall provide the interested party with a disclosure package that provides, at a minimum, all of the following information:(1) The unit number or other designation of each rental unit of the residential real property.(2) The number of bedrooms and bathrooms in each rental unit.(3) The move-in date of each tenant of the residential real property.(4) Base rent for each rental unit of the residential real property.(5) The residential real propertys costs that are passed through to each tenant, if any.(6) Whether each tenant has a written lease or rental agreement.(7) The annual expenses for the residential real property, including, but not limited to, management, insurance, utilities, and maintenance costs.(e) (1) After receiving the disclosure package, if the qualified entity remains interested in purchasing the residential real property, the qualified entity shall, within 20 days, give notice of its interest to purchase the property to each tenant.(2) Within 20 days of receiving the disclosure package, the qualified entity may request to meet and confer with the property owner to confirm interest in purchasing the residential real property. The property owner shall meet and confer with the qualified entity upon request.(f) (1) A qualified entity desiring to purchase a residential real property consisting of five or more units shall submit an offer to purchase the property within 60 days of receiving the disclosure package required pursuant to subdivision (d). If the property consists of four or fewer units, the qualified entity desiring to purchase a residential real property shall submit an offer to purchase the property within 40 days of receiving the disclosure package.(2) If the property owner does not receive an offer to purchase the property within the applicable timeframes in paragraph (1), the property owner may proceed in selling the property without regard to this section.(3) If a property owner receives a substantially equivalent offer from both a tenant of a single-family residential real property or a resident organization in a multifamily residential real property, and some other qualified entity, the property owner shall give priority to the tenants or the resident organizations offer.(g) (1) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a single-family residential real property, the property owner shall afford the qualified entity 30 days after the date of entering into the contract with the qualified entity to secure financing.(B) If, within 30 days after the date of contracting for the single-family residential real property, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 45 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(2) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity 90 days after the date of the entering into contract with the qualified entity to secure financing(B) If, within 90 days after the date of contracting for the multifamily residential real property containing two to four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(3) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing more than four units, the property owner shall afford the qualified entity 120 days after the date of the entering into contract with the tenant or qualified entity to secure financing(B) If, within 120 days after the date of contracting for the multifamily residential real property containing more than four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 160 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate.(4) If the tenant or qualified entity does not secure financing within the applicable timeframe of this subdivision, the property owner may proceed in selling the property without regard to this section.(h) (1) A property owner may reject any offer submitted to purchase a residential real property pursuant to this section.(2) If the property owner receives an offer pursuant to subdivision (f) and rejects that offer, the property owner may sell the property to any other buyer subject to paragraph (3).(3) If the property owner rejects an offer received pursuant to subdivision (f) and then intends to accept an offer from a party that is not a qualified entity, the property owner shall do both of the following:(A) Notify the qualified entity that the property owner intends to accept an offer from a party that is not a qualified entity.(B) Provide the qualified entity of a rejected offer with 10 days to invoke a right of first refusal to accept the offer submitted by a party that is not a qualified entity on the same terms.(4) A qualified entity that does not receive notice from a property owner as required by subdivision (b) shall be given 80 days to invoke a right of first refusal to an offer submitted by a party that is not a qualified entity that is accepted by the property owner.(i) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available.(j) This section shall not apply to the following transfers of residential real property:(1) An inter vivos transfer, whether or not for consideration, between spouses, domestic partners, parent and child, siblings, or grandparent and grandchild.(2) A transfer for consideration by a decedents estate to members of the decedents family if the consideration arising from the transfer will pass from the decedents estate to, or solely for the benefit of, a charity. For purposes of this paragraph, members of the decedents family includes all of the following:(A) A spouse, domestic partner, parent, child, grandparent, or grandchild.(B) A trust for the primary benefit of a spouse, domestic partner, parent, child, grandparent, or grandchild.(3) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust.(4) A transfer to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust.(5) A transfer pursuant to court order or court-approved settlement.(6) A transfer by eminent domain or under threat of eminent domain.(k) An owner of residential real property shall not retaliate against or harass a tenant seeking to exercise their rights under this article or engage in conduct intended to prevent a tenant from exercising those rights. | |
| 116 | 123 | ||
| 117 | 124 | ||
| 118 | 125 | ||
| 119 | - | 1102.52. (a) An owner of residential | |
| 126 | + | 1102.52. (a) An owner of residential property shall comply with the requirements of this section before taking any of the following actions: | |
| 120 | 127 | ||
| 121 | 128 | (1) Offering the residential real property for sale to any purchaser other than a qualified entity. | |
| 122 | 129 | ||
| 123 | 130 | (2) Soliciting any offer to purchase the residential real property from any purchaser other than a qualified entity. | |
| 124 | 131 | ||
| 125 | 132 | (3) Accepting any unsolicited offer to purchase the residential real property from any party other than a qualified entity. | |
| 126 | 133 | ||
| 127 | 134 | (4) Entering into a contract for sale of the residential real property with any party other than a qualified entity, whether through listing or off-market sale, whether individual properties or a bundled portfolio of properties. | |
| 128 | 135 | ||
| 129 | 136 | (b) (1) An owner of residential real property shall send notice of the owners intent to sell the property to each tenant, and to each organization that has registered with the department pursuant to Section 1102.56. | |
| 130 | 137 | ||
| 131 | 138 | (2) The notice required by this subdivision shall include the location and a description of the residential real property. | |
| 132 | 139 | ||
| 133 | 140 | (c) (1) A qualified entity may, within 10 days of receipt of the notice, send notice to the property owner expressing interest in purchasing the property. | |
| 134 | 141 | ||
| 135 | - | (2) If the property owner does not receive notice expressing interest in purchasing the property from any qualified entity, | |
| 142 | + | (2) If the property owner does not receive notice expressing interest in purchasing the property from any qualified entity, the property owner may proceed in selling the property without regard to this section. | |
| 136 | 143 | ||
| 137 | 144 | (d) If the property owner receives a written notice expressing interest in purchasing the property from any qualified entity, the property owner shall provide the interested party with a disclosure package that provides, at a minimum, all of the following information: | |
| 138 | 145 | ||
| 139 | 146 | (1) The unit number or other designation of each rental unit of the residential real property. | |
| 140 | 147 | ||
| 141 | 148 | (2) The number of bedrooms and bathrooms in each rental unit. | |
| 142 | 149 | ||
| 143 | 150 | (3) The move-in date of each tenant of the residential real property. | |
| 144 | 151 | ||
| 145 | 152 | (4) Base rent for each rental unit of the residential real property. | |
| 146 | 153 | ||
| 147 | 154 | (5) The residential real propertys costs that are passed through to each tenant, if any. | |
| 148 | 155 | ||
| 149 | 156 | (6) Whether each tenant has a written lease or rental agreement. | |
| 150 | 157 | ||
| 151 | 158 | (7) The annual expenses for the residential real property, including, but not limited to, management, insurance, utilities, and maintenance costs. | |
| 152 | 159 | ||
| 153 | 160 | (e) (1) After receiving the disclosure package, if the qualified entity remains interested in purchasing the residential real property, the qualified entity shall, within 20 days, give notice of its interest to purchase the property to each tenant. | |
| 154 | 161 | ||
| 155 | - | (2)Within 20 days of receiving the disclosure package, the qualified entity may request to meet and confer with the property owner to confirm interest in purchasing the residential real property. The property owner shall meet and confer with the qualified entity | |
| 162 | + | (2) Within 20 days of receiving the disclosure package, the qualified entity may request to meet and confer with the property owner to confirm interest in purchasing the residential real property. The property owner shall meet and confer with the qualified entity upon request. | |
| 156 | 163 | ||
| 157 | - | (f) (1) A qualified entity desiring to purchase a residential real property consisting of five or more units shall submit an offer to purchase the property within 60 days of receiving | |
| 164 | + | (f) (1) A qualified entity desiring to purchase a residential real property consisting of five or more units shall submit an offer to purchase the property within 60 days of receiving the disclosure package required pursuant to subdivision (d). If the property consists of four or fewer units, the qualified entity desiring to purchase a residential real property shall submit an offer to purchase the property within 40 days of receiving the disclosure package. | |
| 158 | 165 | ||
| 159 | - | (2) If | |
| 166 | + | (2) If the property owner does not receive an offer to purchase the property within the applicable timeframes in paragraph (1), the property owner may proceed in selling the property without regard to this section. | |
| 160 | 167 | ||
| 161 | - | ( | |
| 168 | + | (3) If a property owner receives a substantially equivalent offer from both a tenant of a single-family residential real property or a resident organization in a multifamily residential real property, and some other qualified entity, the property owner shall give priority to the tenants or the resident organizations offer. | |
| 162 | 169 | ||
| 170 | + | (g) (1) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a single-family residential real property, the property owner shall afford the qualified entity 30 days after the date of entering into the contract with the qualified entity to secure financing. | |
| 163 | 171 | ||
| 172 | + | (B) If, within 30 days after the date of contracting for the single-family residential real property, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 45 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate. | |
| 164 | 173 | ||
| 165 | - | ( | |
| 174 | + | (2) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity 90 days after the date of the entering into contract with the qualified entity to secure financing | |
| 166 | 175 | ||
| 167 | - | ( | |
| 176 | + | (B) If, within 90 days after the date of contracting for the multifamily residential real property containing two to four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate. | |
| 168 | 177 | ||
| 178 | + | (3) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing more than four units, the property owner shall afford the qualified entity 120 days after the date of the entering into contract with the tenant or qualified entity to secure financing | |
| 169 | 179 | ||
| 170 | - | ||
| 171 | - | (4) If a property owner receives a substantially equivalent offer from both a tenant of a single-family residential real property or a resident organization in a multifamily residential real property, and some other qualified entity, and the property owner decides to accept any of these offers, the property owner shall give priority to accept the tenants or the resident organizations offer. | |
| 172 | - | ||
| 173 | - | (g) (1) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a single-family residential real property, the property owner shall afford the qualified entity 30 days after the date of entering into the contract with the qualified entity the offer was accepted to secure financing. | |
| 174 | - | ||
| 175 | - | (B) If, within 30 days after the date of contracting the property owner accepts the qualified entitys offer for the single-family residential real property, the qualified entity presents the property owner with the written decision statement of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 45 days after the date of contracting, the offer was accepted, the property owner shall afford an extension of time consistent with the written estimate. | |
| 176 | - | ||
| 177 | - | (2) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity 90 days after the date of the entering into contract with the qualified entity the offer was accepted to secure financing | |
| 178 | - | ||
| 179 | - | (B) If, within 90 days after the date of contracting the property owner accepts the qualified entitys offer for the multifamily residential real property containing two to four units, the qualified entity presents the property owner with the written decision statement of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the offer was accepted, the property owner shall afford an extension of time consistent with the written estimate. | |
| 180 | - | ||
| 181 | - | (3) (A) If the property owner accepts an offer submitted pursuant to this subdivision for a multifamily residential real property containing more than four units, the property owner shall afford the qualified entity 120 days after the date of the entering into contract with the tenant or qualified entity the offer was accepted to secure financing | |
| 182 | - | ||
| 183 | - | (B) If, within 120 days after the date of contracting the property owner accepts the qualified entitys offer for the multifamily residential real property containing more than four units, the qualified entity presents the property owner with the written decision statement of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 160 days after the date of contracting, the offer was accepted, the property owner shall afford an extension of time consistent with the written estimate. | |
| 180 | + | (B) If, within 120 days after the date of contracting for the multifamily residential real property containing more than four units, the qualified entity presents the property owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 160 days after the date of contracting, the property owner shall afford an extension of time consistent with the written estimate. | |
| 184 | 181 | ||
| 185 | 182 | (4) If the tenant or qualified entity does not secure financing within the applicable timeframe of this subdivision, the property owner may proceed in selling the property without regard to this section. | |
| 186 | 183 | ||
| 187 | 184 | (h) (1) A property owner may reject any offer submitted to purchase a residential real property pursuant to this section. | |
| 188 | 185 | ||
| 189 | 186 | (2) If the property owner receives an offer pursuant to subdivision (f) and rejects that offer, the property owner may sell the property to any other buyer subject to paragraph (3). | |
| 190 | 187 | ||
| 191 | 188 | (3) If the property owner rejects an offer received pursuant to subdivision (f) and then intends to accept an offer from a party that is not a qualified entity, the property owner shall do both of the following: | |
| 192 | 189 | ||
| 193 | 190 | (A) Notify the qualified entity that the property owner intends to accept an offer from a party that is not a qualified entity. | |
| 194 | 191 | ||
| 195 | - | (B) Provide the qualified entity of a rejected offer with 10 days to invoke a right of first refusal to accept | |
| 192 | + | (B) Provide the qualified entity of a rejected offer with 10 days to invoke a right of first refusal to accept the offer submitted by a party that is not a qualified entity on the same terms. | |
| 196 | 193 | ||
| 197 | - | (4) A qualified entity that does not receive notice from a property owner as required by subdivision (b) shall be given 80 days to invoke a right of first refusal to | |
| 194 | + | (4) A qualified entity that does not receive notice from a property owner as required by subdivision (b) shall be given 80 days to invoke a right of first refusal to an offer submitted by a party that is not a qualified entity that is accepted by the property owner. | |
| 198 | 195 | ||
| 199 | - | (i) Notices | |
| 196 | + | (i) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available. | |
| 200 | 197 | ||
| 201 | 198 | (j) This section shall not apply to the following transfers of residential real property: | |
| 202 | 199 | ||
| 203 | 200 | (1) An inter vivos transfer, whether or not for consideration, between spouses, domestic partners, parent and child, siblings, or grandparent and grandchild. | |
| 204 | 201 | ||
| 205 | 202 | (2) A transfer for consideration by a decedents estate to members of the decedents family if the consideration arising from the transfer will pass from the decedents estate to, or solely for the benefit of, a charity. For purposes of this paragraph, members of the decedents family includes all of the following: | |
| 206 | 203 | ||
| 207 | 204 | (A) A spouse, domestic partner, parent, child, grandparent, or grandchild. | |
| 208 | 205 | ||
| 209 | 206 | (B) A trust for the primary benefit of a spouse, domestic partner, parent, child, grandparent, or grandchild. | |
| 210 | 207 | ||
| 211 | 208 | (3) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust. | |
| 212 | 209 | ||
| 213 | 210 | (4) A transfer to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust. | |
| 214 | 211 | ||
| 215 | 212 | (5) A transfer pursuant to court order or court-approved settlement. | |
| 216 | 213 | ||
| 217 | 214 | (6) A transfer by eminent domain or under threat of eminent domain. | |
| 218 | 215 | ||
| 219 | 216 | (k) An owner of residential real property shall not retaliate against or harass a tenant seeking to exercise their rights under this article or engage in conduct intended to prevent a tenant from exercising those rights. | |
| 220 | - | ||
| 221 | - | (l) A tenant or resident organization may assign their rights under this section to any qualified entity at any time prior to expiration of the deadline to invoke the right of first refusal under paragraph (3) of subdivision (h). | |
| 222 | 217 | ||
| 223 | 218 | 1102.54. (a) A qualified entity that acquires a residential real property pursuant to Section 1102.52, as well as all successive owners, shall be subject to all of the following:(1) (A) All existing tenancies of the residential real property shall be retained on the same terms that were in effect before the acquisition, except as permitted by state and local law. An existing tenancy shall not be terminated for failure to meet income restrictions imposed by this section.(B) A tenant, including existing tenancies and new tenancies created after the acquisition of the residential real property pursuant to Section 1102.52, shall not be evicted except for just cause as permitted by state and local law.(2) (A) The qualified entity shall restrict the rental rate of vacant units of the residential real property to be affordable to persons and families of low and moderate income and lower income households, with the maximum average rent of the units to be affordable to persons and families with 80 percent of the area median income.(B) (i) If, upon acquiring the residential real property the average rental rate of the units exceeds the maximum average rental rate required pursuant to subparagraph (A), the owner of the residential real property shall rent vacant units at a rate affordable to persons and families whose incomes do not exceed 60 percent of the area median income until the average rental rate complies with subparagraph (A).(ii) If the average rental rate of the residential real property complies with subparagraph (A), the owner of the residential real property may rent vacant units at a rental rate affordable to persons and families of low and moderate income, provided that the average rental rate remains in compliance with subparagraph (A).(C) For purposes of this paragraph, whether a rental rate is affordable shall be determined in the manner described in Section 50053 of the Health and Safety Code.(3) (A) The qualified entity shall commit to provide the tenant of a single-family residential real property or current or future resident organization in a multifamily residential real property with fewer than 20 units the opportunity to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, within 18 months of taking title to the residential real property.(B) For a multifamily residential real property with between 2 and 20 units, the qualified entity may offer this opportunity to purchase only to a current or future resident organization that would take title as a limited-equity housing cooperative, as defined in Section 817.(C) The tenant or resident organization may assign their right to purchase the residential real property to any qualified entity at any time during the process specified in Section 1102.52.(4) The residential real property shall not be sold for more than an affordable resale price.(b) For purposes of this section:(1) Affordable resale price means the purchase price paid by the qualified entity to acquire the residential real property pursuant to this article adjusted for both of the following:(A) Inflation as measured by the regional Consumer Price Index.(B) Capital improvements made by the qualified entity, but no more than 25 percent of the appreciated value as determined by the difference between the appraised value at the time of purchase by the qualified entity and the appraised value at the time of resale.(2) Area median income means the same as defined in Section 50093 of the Health and Safety Code.(3) Lower income households means the same as defined in Section 50079.5 of the Health and Safety Code.(4) Persons and families of low and moderate income means the same as defined in Section 50093 of the Health and Safety Code. | |
| 224 | 219 | ||
| 225 | 220 | ||
| 226 | 221 | ||
| 227 | 222 | 1102.54. (a) A qualified entity that acquires a residential real property pursuant to Section 1102.52, as well as all successive owners, shall be subject to all of the following: | |
| 228 | 223 | ||
| 229 | 224 | (1) (A) All existing tenancies of the residential real property shall be retained on the same terms that were in effect before the acquisition, except as permitted by state and local law. An existing tenancy shall not be terminated for failure to meet income restrictions imposed by this section. | |
| 230 | 225 | ||
| 231 | 226 | (B) A tenant, including existing tenancies and new tenancies created after the acquisition of the residential real property pursuant to Section 1102.52, shall not be evicted except for just cause as permitted by state and local law. | |
| 232 | 227 | ||
| 233 | 228 | (2) (A) The qualified entity shall restrict the rental rate of vacant units of the residential real property to be affordable to persons and families of low and moderate income and lower income households, with the maximum average rent of the units to be affordable to persons and families with 80 percent of the area median income. | |
| 234 | 229 | ||
| 235 | 230 | (B) (i) If, upon acquiring the residential real property the average rental rate of the units exceeds the maximum average rental rate required pursuant to subparagraph (A), the owner of the residential real property shall rent vacant units at a rate affordable to persons and families whose incomes do not exceed 60 percent of the area median income until the average rental rate complies with subparagraph (A). | |
| 236 | 231 | ||
| 237 | 232 | (ii) If the average rental rate of the residential real property complies with subparagraph (A), the owner of the residential real property may rent vacant units at a rental rate affordable to persons and families of low and moderate income, provided that the average rental rate remains in compliance with subparagraph (A). | |
| 238 | 233 | ||
| 239 | 234 | (C) For purposes of this paragraph, whether a rental rate is affordable shall be determined in the manner described in Section 50053 of the Health and Safety Code. | |
| 240 | 235 | ||
| 241 | 236 | (3) (A) The qualified entity shall commit to provide the tenant of a single-family residential real property or current or future resident organization in a multifamily residential real property with fewer than 20 units the opportunity to purchase the entire residential real property, or, if ownership of the land will be retained by a community land trust under a 99-year ground lease, the opportunity to purchase improvements, within 18 months of taking title to the residential real property. | |
| 242 | 237 | ||
| 243 | 238 | (B) For a multifamily residential real property with between 2 and 20 units, the qualified entity may offer this opportunity to purchase only to a current or future resident organization that would take title as a limited-equity housing cooperative, as defined in Section 817. | |
| 244 | 239 | ||
| 245 | 240 | (C) The tenant or resident organization may assign their right to purchase the residential real property to any qualified entity at any time during the process specified in Section 1102.52. | |
| 246 | 241 | ||
| 247 | - | ||
| 248 | - | ||
| 249 | 242 | (4) The residential real property shall not be sold for more than an affordable resale price. | |
| 250 | 243 | ||
| 251 | 244 | (b) For purposes of this section: | |
| 252 | 245 | ||
| 253 | 246 | (1) Affordable resale price means the purchase price paid by the qualified entity to acquire the residential real property pursuant to this article adjusted for both of the following: | |
| 254 | 247 | ||
| 255 | 248 | (A) Inflation as measured by the regional Consumer Price Index. | |
| 256 | 249 | ||
| 257 | 250 | (B) Capital improvements made by the qualified entity, but no more than 25 percent of the appreciated value as determined by the difference between the appraised value at the time of purchase by the qualified entity and the appraised value at the time of resale. | |
| 258 | 251 | ||
| 259 | 252 | (2) Area median income means the same as defined in Section 50093 of the Health and Safety Code. | |
| 260 | 253 | ||
| 261 | 254 | (3) Lower income households means the same as defined in Section 50079.5 of the Health and Safety Code. | |
| 262 | 255 | ||
| 263 | 256 | (4) Persons and families of low and moderate income means the same as defined in Section 50093 of the Health and Safety Code. | |
| 264 | 257 | ||
| 265 | - | 1102.56. (a) (1) The Department of Housing and Community Development shall develop a process by which any of the organizations described in subdivision (b) may notify the department of their interest in purchasing residential real property pursuant to the part | |
| 258 | + | 1102.56. (a) (1) The Department of Housing and Community Development shall develop a process by which any of the organizations described in subdivision (b) may notify the department of their interest in purchasing residential real property pursuant to the part.(b) The following types of organizations may submit a notification to the department pursuant to subdivision (a):(1) A local public entity, as defined in Section 50079 of the Health and Safety Code.(2) An eligible nonprofit corporation based in California whose primary activity is the development and preservation of affordable rental housing.(3) A limited partnership in which the managing general partner is an eligible nonprofit corporation.(4) A limited liability company in which the managing member is an eligible nonprofit corporation.(5) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.(6) A corporation controlled by a majority of residents.(7) A limited-equity housing cooperative as defined in Section 817.(8) A resident organization formed for the purpose of acquiring a multifamily residential real property in which the residents reside, or a single-family residential real property, to convert the property to resident ownership.(c) The department shall maintain on its internet website an up-to-date listing of all qualified entities that have submitted a notification to the department pursuant to subdivision (a) on its internet website. | |
| 266 | 259 | ||
| 267 | 260 | ||
| 268 | 261 | ||
| 269 | - | 1102.56. (a) (1) The Department of Housing and Community Development shall develop a process by which any of the organizations described in subdivision (b) may notify the department of their interest in purchasing residential real property pursuant to the part. | |
| 262 | + | 1102.56. (a) (1) The Department of Housing and Community Development shall develop a process by which any of the organizations described in subdivision (b) may notify the department of their interest in purchasing residential real property pursuant to the part. | |
| 270 | 263 | ||
| 271 | 264 | (b) The following types of organizations may submit a notification to the department pursuant to subdivision (a): | |
| 272 | 265 | ||
| 273 | 266 | (1) A local public entity, as defined in Section 50079 of the Health and Safety Code. | |
| 274 | 267 | ||
| 275 | 268 | (2) An eligible nonprofit corporation based in California whose primary activity is the development and preservation of affordable rental housing. | |
| 276 | 269 | ||
| 277 | 270 | (3) A limited partnership in which the managing general partner is an eligible nonprofit corporation. | |
| 278 | 271 | ||
| 279 | 272 | (4) A limited liability company in which the managing member is an eligible nonprofit corporation. | |
| 280 | 273 | ||
| 281 | 274 | (5) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code. | |
| 282 | 275 | ||
| 283 | 276 | (6) A corporation controlled by a majority of residents. | |
| 284 | 277 | ||
| 285 | 278 | (7) A limited-equity housing cooperative as defined in Section 817. | |
| 286 | 279 | ||
| 287 | - | (8) A resident organization formed for the purpose of acquiring a multifamily residential real property in which the residents reside, or a single-family residential real property, | |
| 280 | + | (8) A resident organization formed for the purpose of acquiring a multifamily residential real property in which the residents reside, or a single-family residential real property, to convert the property to resident ownership. | |
| 288 | 281 | ||
| 289 | - | (c) The department shall maintain on its internet website an up-to-date listing of all qualified entities | |
| 282 | + | (c) The department shall maintain on its internet website an up-to-date listing of all qualified entities that have submitted a notification to the department pursuant to subdivision (a) on its internet website. | |
| 290 | 283 | ||
| 291 | - | 1102.58. (a) Each owner that sells a residential real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies:(1) The owner has substantially complied with the requirements of this article, with a copy of the notice to tenants attached | |
| 284 | + | 1102.58. (a) Each owner that sells a residential real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies:(1) The owner has substantially complied with the requirements of this article, with a copy of the notice to tenants attached(2) The owner or transaction is exempt from the requirements of this article pursuant to Section 1102.52.(b) (1) Each certification of compliance shall include the address of the relevant residential real property.(2) Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine schedule established pursuant to subdivision (b) of Section 36900 of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) for each unit of the residential real property and for each day of noncompliance.(c) The affordability requirements in Section 1102.54 shall be contained in a covenant or restriction recorded against the residential real property at the time of sale, which shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:(1) A resident of a unit subject to this section.(2) A residents association with members who reside in units subject to this section.(3) A former resident of a unit subject to this section who last resided in that unit.(4) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following:(A) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code.(B) Is able and willing to occupy that particular unit.(C) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section.(D) Is on an affordable housing waiting list, is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and is able and willing to occupy a unit subject to this section.(5) The state or the city, county, or city and county in which the residential real property is located.(6) An organization registered pursuant to Section 1102.56.(d) (1) Any party listed in subdivision (c) may seek enforcement of any right or provision under this article in the superior court and, upon prevailing, shall be entitled to the following remedies:(A) Damages in an amount sufficient to remedy the harm to the qualified entity. There shall be a rebuttable presumption that the amount of damages is equal to the difference between the price of the residential real property at the time of sale in violation of this article and the price for which the qualified entity could purchase the residential real property at the time that damages are awarded.(B) If the owner willfully or knowingly sells the residential real property without complying with this article, the court shall impose a civil penalty in an amount proportional to the culpability of the owner and the value of the residential real property. There shall be a rebuttable presumption that the amount is equal to 10 percent of the sale price for a first violation, 20 percent for a second violation, and 30 percent for each subsequent violation.(C) Reasonable attorneys fees.(2) In addition to any other remedy available under this article or any other law, the superior court may enjoin a sale or other action taken by the owner of the residential real property in violation of this article. | |
| 292 | 285 | ||
| 293 | 286 | ||
| 294 | 287 | ||
| 295 | 288 | 1102.58. (a) Each owner that sells a residential real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies: | |
| 296 | 289 | ||
| 297 | - | (1) The owner has substantially complied with the requirements of this article, with a copy of the notice to tenants attached | |
| 290 | + | (1) The owner has substantially complied with the requirements of this article, with a copy of the notice to tenants attached | |
| 298 | 291 | ||
| 299 | 292 | (2) The owner or transaction is exempt from the requirements of this article pursuant to Section 1102.52. | |
| 300 | 293 | ||
| 301 | 294 | (b) (1) Each certification of compliance shall include the address of the relevant residential real property. | |
| 302 | 295 | ||
| 303 | - | (2) (A) Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine schedule established pursuant to subdivision (b) of Section 36900 of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) for each per unit of the residential real property and for each day of noncompliance. | |
| 304 | - | ||
| 305 | - | (B) Fines under subparagraph (A) shall be paid as follows, following notice and an opportunity for hearing: | |
| 306 | - | ||
| 307 | - | (i) If the property is located in a city, to that city. | |
| 308 | - | ||
| 309 | - | (ii) If the property is located in a city and county, to that city and county. | |
| 310 | - | ||
| 311 | - | (iii) Otherwise, to the county in which the property is located. | |
| 296 | + | (2) Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine schedule established pursuant to subdivision (b) of Section 36900 of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) for each unit of the residential real property and for each day of noncompliance. | |
| 312 | 297 | ||
| 313 | 298 | (c) The affordability requirements in Section 1102.54 shall be contained in a covenant or restriction recorded against the residential real property at the time of sale, which shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following: | |
| 314 | 299 | ||
| 315 | 300 | (1) A resident of a unit subject to this section. | |
| 316 | 301 | ||
| 317 | 302 | (2) A residents association with members who reside in units subject to this section. | |
| 318 | 303 | ||
| 319 | 304 | (3) A former resident of a unit subject to this section who last resided in that unit. | |
| 320 | 305 | ||
| 321 | 306 | (4) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this section, if the applicant conforms to all of the following: | |
| 322 | 307 | ||
| 323 | 308 | (A) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code. | |
| 324 | 309 | ||
| 325 | 310 | (B) Is able and willing to occupy that particular unit. | |
| 326 | 311 | ||
| 327 | 312 | (C) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this section. | |
| 328 | 313 | ||
| 329 | 314 | (D) Is on an affordable housing waiting list, is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and is able and willing to occupy a unit subject to this section. | |
| 330 | 315 | ||
| 331 | 316 | (5) The state or the city, county, or city and county in which the residential real property is located. | |
| 332 | 317 | ||
| 333 | 318 | (6) An organization registered pursuant to Section 1102.56. | |
| 334 | 319 | ||
| 335 | 320 | (d) (1) Any party listed in subdivision (c) may seek enforcement of any right or provision under this article in the superior court and, upon prevailing, shall be entitled to the following remedies: | |
| 336 | 321 | ||
| 337 | - | (A) Damages in an amount sufficient to remedy the harm to the qualified entity. | |
| 322 | + | (A) Damages in an amount sufficient to remedy the harm to the qualified entity. There shall be a rebuttable presumption that the amount of damages is equal to the difference between the price of the residential real property at the time of sale in violation of this article and the price for which the qualified entity could purchase the residential real property at the time that damages are awarded. | |
| 338 | 323 | ||
| 339 | - | (B) If the owner willfully or knowingly sells the residential real property without complying with this article, the court shall impose a civil penalty | |
| 324 | + | (B) If the owner willfully or knowingly sells the residential real property without complying with this article, the court shall impose a civil penalty in an amount proportional to the culpability of the owner and the value of the residential real property. There shall be a rebuttable presumption that the amount is equal to 10 percent of the sale price for a first violation, 20 percent for a second violation, and 30 percent for each subsequent violation. | |
| 340 | 325 | ||
| 341 | - | (C) | |
| 326 | + | (C) Reasonable attorneys fees. | |
| 342 | 327 | ||
| 343 | 328 | (2) In addition to any other remedy available under this article or any other law, the superior court may enjoin a sale or other action taken by the owner of the residential real property in violation of this article. | |
| 344 | 329 | ||
| 345 | - | 1102.60. (a) Except as provided in subdivision (b), this part | |
| 330 | + | 1102.60. (a) Except as provided in subdivision (b), this part shall not preempt or invalidate a local ordinance, regulation, or other policy that provides a qualified entity with a right of first offer, right of first refusal, or other opportunity to purchase a residential real property.(b) If a local ordinance, regulation, or other policy conflicts with this article, the provision that provides the qualified entity with a stronger right to purchase the residential real property shall prevail. | |
| 346 | 331 | ||
| 347 | 332 | ||
| 348 | 333 | ||
| 349 | - | 1102.60. (a) Except as provided in subdivision (b), this part | |
| 334 | + | 1102.60. (a) Except as provided in subdivision (b), this part shall not preempt or invalidate a local ordinance, regulation, or other policy that provides a qualified entity with a right of first offer, right of first refusal, or other opportunity to purchase a residential real property. | |
| 350 | 335 | ||
| 351 | 336 | (b) If a local ordinance, regulation, or other policy conflicts with this article, the provision that provides the qualified entity with a stronger right to purchase the residential real property shall prevail. | |
| 352 | 337 | ||
| 353 | - | 1102.61. The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. | |
| 354 | - | ||
| 355 | - | ||
| 356 | - | ||
| 357 | - | 1102.61. The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. | |
| 358 | - | ||
| 359 | - | SEC. 2. Section 2923.56 is added to the Civil Code, to read:2923.56. (a)With respect to residential real property, as defined in a multifamily residential property, as referenced in subparagraph (B) of paragraph (1) of subdivision (b) of Section 1102.50, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following upon within 3 business days of recording a notice of default:(1)(a) Provide the mortgagor or trustor with a list of the qualified entities located within the county of the residential real multifamily residential property that have provided notice to the Department of Housing and Community Development pursuant to Section 1102.56.(2)Provide notice to each tenant of the residential real property of the notice of default being filed.(b)Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available.(b) Post a copy of the notice of default in a conspicuous place on the multifamily residential property, where possible and where not restricted for any reason. If restricted, then the notice shall be posted in a conspicuous place on the property; however, if access is denied because a common entrance to the property is restricted by a guard gate or similar impediment, the notice may be posted at that guard gate or similar impediment. | |
| 338 | + | SEC. 2. Section 2923.56 is added to the Civil Code, to read:2923.56. (a) With respect to residential real property, as defined in subdivision (b) of Section 1102.50, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following upon recording a notice of default:(1) Provide the mortgagor or trustor with a list of the qualified entities located within the county of the residential real property that have provided notice to the Department of Housing and Community Development pursuant to Section 1102.56.(2) Provide notice to each tenant of the residential real property of the notice of default being filed.(b) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available. | |
| 360 | 339 | ||
| 361 | 340 | SEC. 2. Section 2923.56 is added to the Civil Code, to read: | |
| 362 | 341 | ||
| 363 | 342 | ### SEC. 2. | |
| 364 | 343 | ||
| 365 | - | 2923.56. (a)With respect to residential real property, as defined in | |
| 344 | + | 2923.56. (a) With respect to residential real property, as defined in subdivision (b) of Section 1102.50, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following upon recording a notice of default:(1) Provide the mortgagor or trustor with a list of the qualified entities located within the county of the residential real property that have provided notice to the Department of Housing and Community Development pursuant to Section 1102.56.(2) Provide notice to each tenant of the residential real property of the notice of default being filed.(b) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available. | |
| 366 | 345 | ||
| 367 | - | 2923.56. (a)With respect to residential real property, as defined in | |
| 346 | + | 2923.56. (a) With respect to residential real property, as defined in subdivision (b) of Section 1102.50, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following upon recording a notice of default:(1) Provide the mortgagor or trustor with a list of the qualified entities located within the county of the residential real property that have provided notice to the Department of Housing and Community Development pursuant to Section 1102.56.(2) Provide notice to each tenant of the residential real property of the notice of default being filed.(b) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available. | |
| 368 | 347 | ||
| 369 | - | 2923.56. (a)With respect to residential real property, as defined in | |
| 348 | + | 2923.56. (a) With respect to residential real property, as defined in subdivision (b) of Section 1102.50, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following upon recording a notice of default:(1) Provide the mortgagor or trustor with a list of the qualified entities located within the county of the residential real property that have provided notice to the Department of Housing and Community Development pursuant to Section 1102.56.(2) Provide notice to each tenant of the residential real property of the notice of default being filed.(b) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available. | |
| 370 | 349 | ||
| 371 | 350 | ||
| 372 | 351 | ||
| 373 | - | 2923.56. (a)With respect to residential real property, as defined in | |
| 352 | + | 2923.56. (a) With respect to residential real property, as defined in subdivision (b) of Section 1102.50, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following upon recording a notice of default: | |
| 374 | 353 | ||
| 375 | - | (1) | |
| 376 | - | ||
| 377 | - | ||
| 378 | - | ||
| 379 | - | (a) Provide the mortgagor or trustor with a list of the qualified entities located within the county of the residential real multifamily residential property that have provided notice to the Department of Housing and Community Development pursuant to Section 1102.56. | |
| 354 | + | (1) Provide the mortgagor or trustor with a list of the qualified entities located within the county of the residential real property that have provided notice to the Department of Housing and Community Development pursuant to Section 1102.56. | |
| 380 | 355 | ||
| 381 | 356 | (2) Provide notice to each tenant of the residential real property of the notice of default being filed. | |
| 382 | 357 | ||
| 383 | - | ||
| 384 | - | ||
| 385 | 358 | (b) Notices required pursuant to this section shall be delivered by certified mail and additionally by email if email addresses are available. | |
| 386 | - | ||
| 387 | - | ||
| 388 | - | ||
| 389 | - | (b) Post a copy of the notice of default in a conspicuous place on the multifamily residential property, where possible and where not restricted for any reason. If restricted, then the notice shall be posted in a conspicuous place on the property; however, if access is denied because a common entrance to the property is restricted by a guard gate or similar impediment, the notice may be posted at that guard gate or similar impediment. | |
| 390 | 359 | ||
| 391 | 360 | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 392 | 361 | ||
| 393 | 362 | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 394 | 363 | ||
| 395 | 364 | SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. | |
| 396 | 365 | ||
| 397 | 366 | ### SEC. 3. | |
| 367 | + | ||
| 368 | + | ||
| 369 | + | ||
| 370 | + | ||
| 371 | + | ||
| 372 | + | This part shall be known, and may be cited, as the Employee Housing Act. |