| 1 | | - | Amended IN Assembly April 18, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2713Introduced by Assembly Members Wicks, Bloom, and Grayson(Coauthors: Assembly Members Carrillo, Kalra, Quirk-Silva, and Ward)February 18, 2022 An act to amend Sections 1946.2 and 1947.12 of the Civil Code, relating to tenancy.LEGISLATIVE COUNSEL'S DIGESTAB 2713, as amended, Wicks. Tenant protections: just cause termination: rent caps.Existing law law, until January 1, 2030, prohibits an owner, as defined, of residential real property from terminating a tenancy without just cause, stated in the written notice to terminate the tenancy, after a tenant has continuously and lawfully occupied a residential real property for 12 months. Existing law defines just cause to mean certain at-fault just causes, including default in the payment of rent, and certain no-fault just causes, including intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, as prescribed, withdrawal of the residential real property from the rental market, and intent to demolish or to substantially remodel the residential real property.This bill would revise the intent to occupy just-cause provision described above to mean a good faith intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for at least 3 consecutive years. The bill would, among other things, prohibit an owner from terminating a tenancy under that provision if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property. The bill would define the term owner for purposes of that provision to mean an owner who is a natural person who has at least a 51% recorded ownership interest in the property.This bill would revise the withdrawal of the residential real property from the rental market just-cause provision described above to mean withdrawal of all of the rental units at the residential real property from the rental market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of certain criteria are true and described with particularity in a notice to the tenant required to terminate the tenancy, including the owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market and describing the intended use of the property 180 days before serving the notice to terminate the tenancy.This bill would revise the intent to demolish or to substantially remodel the residential real property just-cause provision described above by, among other things, requiring an owner to, before issuing a notice to terminate a tenancy based on that just cause, obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies.Existing law law, until January 1, 2030, prohibits an owner of residential real property from, over the course of any 12-month period, increasing the gross rental rate for a dwelling or a unit more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months before the effective date of the increase, as prescribed.This bill would make unenforceable any lease provision that would result in an increase in the gross rental rate for a dwelling unit that exceeds those limits, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1946.2 of the Civil Code is amended to read:1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which means any of the following:(A) (i) Subject to clause (ii), good faith intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer reoffer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph. (a).(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer reoffer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. market and describing the intended use of the property. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(j) For the purposes of this section, the following definitions shall apply:(1) Owner means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 2. Section 1947.12 of the Civil Code is amended to read:1947.12. (a) (1) (A) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.(B) A lease provision that results in an increase in the gross rental rate for a dwelling unit that would exceed the limits provided in this paragraph, including a lease provision that purports to render a service or amenity previously provided or paid for by the landlord the financial obligation of the tenant without a corresponding reduction in rent, shall not be enforceable.(2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase.(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.(c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited.(d) This section shall not apply to the following residential real properties:(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(3) Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).(4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.(f) (1) On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) For the purposes of this section, the following definitions shall apply:(1) Consumer Price Index for All Urban Consumers for All Items means the following:(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.(C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published.(2) Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(3) (A) Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items.(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.(4) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(5) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i).(2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply:(A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021.(2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:(A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k) Any waiver of the rights under this section shall be void as contrary to public policy.(l) This section shall remain in effect until January 1, 2030, and as of that date is repealed.(m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases.(2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50).(3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. |
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| 1 | + | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2713Introduced by Assembly Members Wicks, Bloom, and Grayson(Coauthors: Assembly Members Carrillo, Kalra, Quirk-Silva, and Ward)February 18, 2022 An act to amend Sections 1946.2 and 1947.12 of the Civil Code, relating to tenancy.LEGISLATIVE COUNSEL'S DIGESTAB 2713, as introduced, Wicks. Tenant protections: just cause termination: rent caps.Existing law prohibits an owner, as defined, of residential real property from terminating a tenancy without just cause, stated in the written notice to terminate the tenancy, after a tenant has continuously and lawfully occupied a residential real property for 12 months. Existing law defines just cause to mean certain at-fault just causes, including default in the payment of rent, and certain no-fault just causes, including intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, as prescribed, withdrawal of the residential real property from the rental market, and intent to demolish or to substantially remodel the residential real property.This bill would revise the intent to occupy just-cause provision described above to mean a good faith intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for at least 3 consecutive years. The bill would, among other things, prohibit an owner from terminating a tenancy under that provision if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property. The bill would define the term owner for purposes of that provision to mean an owner who is a natural person who has at least a 51% recorded ownership interest in the property.This bill would revise the withdrawal of the residential real property from the rental market just-cause provision described above to mean withdrawal of all of the rental units at the residential real property from the rental market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of certain criteria are true and described with particularity in a notice to the tenant required to terminate the tenancy, including the owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market 180 days before serving the notice to terminate the tenancy.This bill would revise the intent to demolish or to substantially remodel the residential real property just-cause provision described above by, among other things, requiring an owner to, before issuing a notice to terminate a tenancy based on that just cause, obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies.Existing law prohibits an owner of residential real property from, over the course of any 12-month period, increasing the gross rental rate for a dwelling or a unit more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months before the effective date of the increase, as prescribed.This bill would make unenforceable any lease provision that would result in an increase in the gross rental rate for a dwelling unit that exceeds those limits, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1946.2 of the Civil Code is amended to read:1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause includes means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which includes means any of the following:(A) (i) Intent Subject to clause (ii), good faith intent to occupy the residential real property by the owner or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents. grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market. market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph.(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Intent Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(ii)(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(4)(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(i)(j) For the purposes of this section, the following definitions shall apply:(1) Owner includes means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(j)(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k)(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 2. Section 1947.12 of the Civil Code is amended to read:1947.12. (a) (1) (A) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.(B) A lease provision that results in an increase in the gross rental rate for a dwelling unit that would exceed the limits provided in this paragraph, including a lease provision that purports to render a service or amenity previously provided or paid for by the landlord the financial obligation of the tenant without a corresponding reduction in rent, shall not be enforceable.(2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase.(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.(c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited.(d) This section shall not apply to the following residential real properties:(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(3) Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).(4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.(f) (1) On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) For the purposes of this section, the following definitions shall apply:(1) Consumer Price Index for All Urban Consumers for All Items means the following:(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.(C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published.(2) Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(3) (A) Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items.(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.(4) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(5) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i).(2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply:(A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021.(2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:(A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k) Any waiver of the rights under this section shall be void as contrary to public policy.(l) This section shall remain in effect until January 1, 2030, and as of that date is repealed.(m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases.(2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50).(3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. |
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| 46 | | - | The people of the State of California do enact as follows:SECTION 1. Section 1946.2 of the Civil Code is amended to read:1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which means any of the following:(A) (i) Subject to clause (ii), good faith intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer reoffer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph. (a).(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer reoffer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. market and describing the intended use of the property. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(j) For the purposes of this section, the following definitions shall apply:(1) Owner means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 2. Section 1947.12 of the Civil Code is amended to read:1947.12. (a) (1) (A) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.(B) A lease provision that results in an increase in the gross rental rate for a dwelling unit that would exceed the limits provided in this paragraph, including a lease provision that purports to render a service or amenity previously provided or paid for by the landlord the financial obligation of the tenant without a corresponding reduction in rent, shall not be enforceable.(2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase.(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.(c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited.(d) This section shall not apply to the following residential real properties:(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(3) Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).(4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.(f) (1) On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) For the purposes of this section, the following definitions shall apply:(1) Consumer Price Index for All Urban Consumers for All Items means the following:(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.(C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published.(2) Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(3) (A) Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items.(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.(4) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(5) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i).(2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply:(A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021.(2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:(A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k) Any waiver of the rights under this section shall be void as contrary to public policy.(l) This section shall remain in effect until January 1, 2030, and as of that date is repealed.(m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases.(2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50).(3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. |
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| 46 | + | The people of the State of California do enact as follows:SECTION 1. Section 1946.2 of the Civil Code is amended to read:1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause includes means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which includes means any of the following:(A) (i) Intent Subject to clause (ii), good faith intent to occupy the residential real property by the owner or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents. grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market. market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph.(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Intent Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(ii)(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(4)(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(i)(j) For the purposes of this section, the following definitions shall apply:(1) Owner includes means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(j)(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k)(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.SEC. 2. Section 1947.12 of the Civil Code is amended to read:1947.12. (a) (1) (A) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.(B) A lease provision that results in an increase in the gross rental rate for a dwelling unit that would exceed the limits provided in this paragraph, including a lease provision that purports to render a service or amenity previously provided or paid for by the landlord the financial obligation of the tenant without a corresponding reduction in rent, shall not be enforceable.(2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase.(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.(c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited.(d) This section shall not apply to the following residential real properties:(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(3) Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).(4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.(f) (1) On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) For the purposes of this section, the following definitions shall apply:(1) Consumer Price Index for All Urban Consumers for All Items means the following:(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.(C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published.(2) Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(3) (A) Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items.(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.(4) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(5) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i).(2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply:(A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021.(2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:(A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k) Any waiver of the rights under this section shall be void as contrary to public policy.(l) This section shall remain in effect until January 1, 2030, and as of that date is repealed.(m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases.(2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50).(3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. |
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| 52 | | - | SECTION 1. Section 1946.2 of the Civil Code is amended to read:1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which means any of the following:(A) (i) Subject to clause (ii), good faith intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer reoffer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph. (a).(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer reoffer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. market and describing the intended use of the property. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(j) For the purposes of this section, the following definitions shall apply:(1) Owner means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 52 | + | SECTION 1. Section 1946.2 of the Civil Code is amended to read:1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause includes means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which includes means any of the following:(A) (i) Intent Subject to clause (ii), good faith intent to occupy the residential real property by the owner or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents. grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market. market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph.(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Intent Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(ii)(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(4)(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(i)(j) For the purposes of this section, the following definitions shall apply:(1) Owner includes means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(j)(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k)(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 58 | | - | 1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which means any of the following:(A) (i) Subject to clause (ii), good faith intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer reoffer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph. (a).(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer reoffer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. market and describing the intended use of the property. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(j) For the purposes of this section, the following definitions shall apply:(1) Owner means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 58 | + | 1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause includes means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which includes means any of the following:(A) (i) Intent Subject to clause (ii), good faith intent to occupy the residential real property by the owner or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents. grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market. market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph.(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Intent Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(ii)(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(4)(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(i)(j) For the purposes of this section, the following definitions shall apply:(1) Owner includes means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(j)(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k)(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 60 | | - | 1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which means any of the following:(A) (i) Subject to clause (ii), good faith intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer reoffer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph. (a).(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer reoffer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. market and describing the intended use of the property. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(j) For the purposes of this section, the following definitions shall apply:(1) Owner means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 60 | + | 1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause includes means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which includes means any of the following:(A) (i) Intent Subject to clause (ii), good faith intent to occupy the residential real property by the owner or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents. grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market. market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph.(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Intent Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(ii)(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(4)(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(i)(j) For the purposes of this section, the following definitions shall apply:(1) Owner includes means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(j)(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k)(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 62 | | - | 1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which means any of the following:(A) (i) Subject to clause (ii), good faith intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer reoffer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph. (a).(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer reoffer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. market and describing the intended use of the property. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(j) For the purposes of this section, the following definitions shall apply:(1) Owner means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 62 | + | 1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate the tenancy without just cause, which shall be stated in the written notice to terminate the tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:(1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.(2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.(b) For purposes of this section, just cause includes means either of the following:(1) At-fault just cause, which is any of the following:(A) Default in the payment of rent.(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.(F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.(G) Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(H) The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.(J) (i) The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee licensee, as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.(ii) This subparagraph does not apply to an employee who was a tenant in the same unit before the commencement of the employees employment.(K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.(2) No-fault just cause, which includes means any of the following:(A) (i) Intent Subject to clause (ii), good faith intent to occupy the residential real property by the owner or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents. grandparents for at least three consecutive years. For purposes of this subparagraph, owner means an owner who is a natural person who has at least a 51 percent recorded ownership interest in the property.(ii) (I) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or their the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).(II) An owner shall not terminate a tenancy under this subparagraph if the same owner or relative already occupies a unit on the residential real property or if there is a vacancy on the residential real property.(III) A notice of termination citing the no-fault just cause described in this subparagraph shall state the name, address, and relationship to the owner of the individual intending to occupy the unit.(IV) An owner who terminated a tenancy pursuant to this subparagraph shall re-offer the unit to the displaced tenant at the same rent and under the same terms as when the tenancy was terminated if either of the following is true:(ia) The owner or relative fails to occupy the property within 90 days.(ib) The owner or relative fails to occupy the property for at least three consecutive years.(B) (i) Withdrawal of all of the rental units at the residential real property from the rental market. market for the purpose of changing the propertys use from residential use to nonresidential use or for the purpose of selling each unit on the property for owner-occupancy, only if both of the following are true and described with particularity in a notice to the tenant pursuant to subdivision (a):(I) The owner has previously provided the tenant with a written notice of intent to withdraw the unit from the rental market pursuant to paragraph (4) of subdivision (d) before serving a notice of termination pursuant to subdivision (a) describing the intended use of the property pursuant to this subparagraph.(II) Either of the following:(ia) If the owner intends to change the use to a nonresidential use, the owner has filed a complete application with the appropriate local governmental agency to obtain any necessary approvals for the intended nonresidential use, including, but not limited to, a demolition permit, if required. For purposes of this subclause, a nonresidential use includes demolition of the structure or maintaining the structure as vacant.(ib) If the owner intends to sell the units, the owner has obtained any necessary state and local approvals to subdivide and market the units and has complied with any state and local laws governing the conversion of rental units to for-sale units, including, but not limited to, conversion of rental units to condominiums.(ii) If the owner does not change the propertys use or returns the property to the rental market after having terminated a tenancy pursuant to this subparagraph, the owner shall re-offer a unit to any tenant who was displaced by the notice to terminate at the same rental rate and terms as when the tenancy was terminated.(C) (i) The owner complying with any of the following:(I) An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.(II) An order issued by a government agency or court to vacate the residential real property.(III) A local ordinance that necessitates vacating the residential real property.(ii) If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).(D) (i) Intent Subject to clause (ii), intent to demolish or to substantially remodel the residential real property.(ii) Before an owner of residential real property issues a notice to terminate a tenancy based on intent to demolish or substantially remodel the property, the owner shall obtain any necessary permits for the demolition or substantial remodel from the applicable governmental agencies. A termination notice based on intent to demolish or substantially remodel shall include a copy of any issued permits and include reasonably detailed information regarding all of the following: (I) The nature and scope of the demolition or substantial remodeling work.(II) Why the demolition or substantial remodel cannot be reasonably accomplished in a safe manner with the tenant in place.(III) Why the demolition or substantial remodel requires the tenant to vacate for at least 30 days.(ii)(iii) For purposes of this subparagraph, substantially remodel means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial rehabilitation.(c) Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.(d) (1) For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:(A) Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).(B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.(3) (A) The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.(B) If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.(C) The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.(4) (A) An owner that issues a notice to terminate a tenancy pursuant to subparagraph (B) of paragraph (2) of subdivision (b) shall provide a separate written notice at least 180 days before issuing the notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) notifying the tenant of the owners intent to remove the unit from the rental market. (B) (i) The notice required by this paragraph shall state that if the tenant or a member of the household is at least 62 years of age or disabled, the tenant may request an extension of the notice to one year if the tenant or lessee gives written notice of the tenants or lessees entitlement to an extension to the owner within 60 days of the date of delivery to the tenant of the notice required by this paragraph.(ii) If a notice from the tenant is provided pursuant to this subparagraph, the landlord shall not serve a notice pursuant to subparagraph (B) of paragraph (2) of subdivision (b) until at least one year after service of the notice required by this paragraph.(iii) During the period covered by the notice required by this paragraph, both of the following shall apply:(I) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery of the notice required by this paragraph, subject to the valid terms of a lease or rental agreement in effect at the time of service that are not in conflict with or purport to waive this section.(II) A party shall not be relieved of the duty to perform any obligation under the lease or rental agreement.(4)(5) An owners failure to strictly comply with this subdivision shall render the notice of termination void.(e) This section shall not apply to the following types of residential real properties or residential circumstances:(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.(5) Single-family owner-occupied residences, including both of the following:(A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.(B) A mobilehome.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.(II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).(9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(f) An owner of residential real property subject to this section shall provide notice to the tenant as follows:(1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.(2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.(B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.(3) The notification or lease provision shall be in no less than 12-point type, and shall include the following:California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632.(g) (1) This section does not apply to the following residential real property:(A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.(B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:(i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.(ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.(iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.(2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.(3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.(h) Any waiver of the rights under this section shall be void as contrary to public policy.(i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served.(i)(j) For the purposes of this section, the following definitions shall apply:(1) Owner includes means, except as provided in subparagraph (A) of paragraph (2) of subdivision (b), any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(2) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(3) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(j)(k) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k)(l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 177 | 185 | | |
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| 178 | 186 | | (5) An owners failure to strictly comply with this subdivision shall render the notice of termination void. |
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| 179 | 187 | | |
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| 180 | 188 | | (e) This section shall not apply to the following types of residential real properties or residential circumstances: |
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| 181 | 189 | | |
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| 182 | 190 | | (1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940. |
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| 183 | 191 | | |
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| 184 | 192 | | (2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services. |
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| 185 | 193 | | |
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| 186 | 194 | | (3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. |
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| 187 | 195 | | |
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| 188 | 196 | | (4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property. |
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| 189 | 197 | | |
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| 190 | 198 | | (5) Single-family owner-occupied residences, including both of the following: |
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| 191 | 199 | | |
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| 192 | 200 | | (A) A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit. |
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| 193 | 201 | | |
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| 194 | 202 | | (B) A mobilehome. |
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| 195 | 203 | | |
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| 196 | 204 | | (6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. |
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| 197 | 205 | | |
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| 198 | 206 | | (7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome. |
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| 199 | 207 | | |
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| 200 | 208 | | (8) Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply: |
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| 201 | 209 | | |
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| 202 | 210 | | (A) The owner is not any of the following: |
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| 203 | 211 | | |
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| 204 | 212 | | (i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code. |
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| 205 | 213 | | |
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| 206 | 214 | | (ii) A corporation. |
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| 207 | 215 | | |
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| 208 | 216 | | (iii) A limited liability company in which at least one member is a corporation. |
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| 209 | 217 | | |
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| 210 | 218 | | (iv) Management of a mobilehome park, as defined in Section 798.2. |
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| 211 | 219 | | |
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| 212 | 220 | | (B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation. |
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| 213 | 221 | | |
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| 214 | 222 | | (ii) (I) Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement. |
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| 215 | 223 | | |
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| 216 | 224 | | (II) For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement. |
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| 217 | 225 | | |
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| 218 | 226 | | (iii) (I) Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement. |
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| 219 | 227 | | |
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| 220 | 228 | | (II) For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement. |
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| 221 | 229 | | |
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| 222 | 230 | | (iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b). |
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| 223 | 231 | | |
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| 224 | 232 | | (9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes. |
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| 225 | 233 | | |
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| 226 | 234 | | (f) An owner of residential real property subject to this section shall provide notice to the tenant as follows: |
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| 227 | 235 | | |
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| 228 | 236 | | (1) (A) Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant. |
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| 229 | 237 | | |
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| 230 | 238 | | (B) For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant. |
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| 231 | 239 | | |
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| 232 | 240 | | (2) (A) Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement. |
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| 233 | 241 | | |
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| 234 | 242 | | (B) For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement. |
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| 235 | 243 | | |
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| 236 | 244 | | (3) The notification or lease provision shall be in no less than 12-point type, and shall include the following: |
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| 237 | 245 | | |
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| 238 | 246 | | California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information. The provision of the notice shall be subject to Section 1632. |
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| 239 | 247 | | |
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| 240 | 248 | | (g) (1) This section does not apply to the following residential real property: |
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| 241 | 249 | | |
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| 242 | 250 | | (A) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply. |
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| 243 | 251 | | |
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| 244 | 252 | | (B) Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria: |
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| 245 | 253 | | |
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| 246 | 254 | | (i) The just cause for termination of a residential tenancy under the local ordinance is consistent with this section. |
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| 247 | 255 | | |
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| 248 | 256 | | (ii) The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law. |
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| 249 | 257 | | |
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| 250 | 258 | | (iii) The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section. |
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| 251 | 259 | | |
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| 252 | 260 | | (2) A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section. |
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| 253 | 261 | | |
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| 254 | 262 | | (3) A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed. |
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| 255 | 263 | | |
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| 256 | 264 | | (h) Any waiver of the rights under this section shall be void as contrary to public policy. |
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| 257 | 265 | | |
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| 258 | 266 | | (i) A termination notice issued pursuant to this section shall state the lawful rent amount in effect for the unit at the time the termination notice was served. |
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| 259 | 267 | | |
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| 269 | 289 | | |
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| 270 | 290 | | (l) This section shall remain in effect only until January 1, 2030, and as of that date is repealed. |
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| 271 | 291 | | |
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| 272 | 292 | | SEC. 2. Section 1947.12 of the Civil Code is amended to read:1947.12. (a) (1) (A) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.(B) A lease provision that results in an increase in the gross rental rate for a dwelling unit that would exceed the limits provided in this paragraph, including a lease provision that purports to render a service or amenity previously provided or paid for by the landlord the financial obligation of the tenant without a corresponding reduction in rent, shall not be enforceable.(2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase.(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.(c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited.(d) This section shall not apply to the following residential real properties:(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(3) Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).(4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.(f) (1) On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) For the purposes of this section, the following definitions shall apply:(1) Consumer Price Index for All Urban Consumers for All Items means the following:(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.(C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published.(2) Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(3) (A) Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items.(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.(4) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(5) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i).(2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply:(A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021.(2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:(A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k) Any waiver of the rights under this section shall be void as contrary to public policy.(l) This section shall remain in effect until January 1, 2030, and as of that date is repealed.(m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases.(2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50).(3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. |
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| 273 | 293 | | |
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| 274 | 294 | | SEC. 2. Section 1947.12 of the Civil Code is amended to read: |
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| 275 | 295 | | |
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| 276 | 296 | | ### SEC. 2. |
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| 277 | 297 | | |
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| 278 | 298 | | 1947.12. (a) (1) (A) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.(B) A lease provision that results in an increase in the gross rental rate for a dwelling unit that would exceed the limits provided in this paragraph, including a lease provision that purports to render a service or amenity previously provided or paid for by the landlord the financial obligation of the tenant without a corresponding reduction in rent, shall not be enforceable.(2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase.(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.(c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited.(d) This section shall not apply to the following residential real properties:(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(3) Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).(4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.(f) (1) On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) For the purposes of this section, the following definitions shall apply:(1) Consumer Price Index for All Urban Consumers for All Items means the following:(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.(C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published.(2) Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(3) (A) Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items.(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.(4) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(5) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i).(2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply:(A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021.(2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:(A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k) Any waiver of the rights under this section shall be void as contrary to public policy.(l) This section shall remain in effect until January 1, 2030, and as of that date is repealed.(m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases.(2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50).(3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. |
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| 279 | 299 | | |
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| 280 | 300 | | 1947.12. (a) (1) (A) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.(B) A lease provision that results in an increase in the gross rental rate for a dwelling unit that would exceed the limits provided in this paragraph, including a lease provision that purports to render a service or amenity previously provided or paid for by the landlord the financial obligation of the tenant without a corresponding reduction in rent, shall not be enforceable.(2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase.(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.(c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited.(d) This section shall not apply to the following residential real properties:(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(3) Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).(4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.(f) (1) On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) For the purposes of this section, the following definitions shall apply:(1) Consumer Price Index for All Urban Consumers for All Items means the following:(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.(C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published.(2) Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(3) (A) Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items.(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.(4) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(5) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i).(2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply:(A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021.(2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:(A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k) Any waiver of the rights under this section shall be void as contrary to public policy.(l) This section shall remain in effect until January 1, 2030, and as of that date is repealed.(m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases.(2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50).(3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. |
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| 281 | 301 | | |
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| 282 | 302 | | 1947.12. (a) (1) (A) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.(B) A lease provision that results in an increase in the gross rental rate for a dwelling unit that would exceed the limits provided in this paragraph, including a lease provision that purports to render a service or amenity previously provided or paid for by the landlord the financial obligation of the tenant without a corresponding reduction in rent, shall not be enforceable.(2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase.(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.(c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited.(d) This section shall not apply to the following residential real properties:(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.(3) Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).(4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.(5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.(ii) A corporation.(iii) A limited liability company in which at least one member is a corporation.(iv) Management of a mobilehome park, as defined in Section 798.2.(B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.(ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.(iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement.(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.(e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.(f) (1) On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) For the purposes of this section, the following definitions shall apply:(1) Consumer Price Index for All Urban Consumers for All Items means the following:(A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows:(i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.(ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.(iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.(iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.(v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.(B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.(C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published.(2) Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.(3) (A) Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items.(B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.(ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:(I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.(II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.(iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent.(4) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.(5) Tenancy means the lawful occupation of residential real property and includes a lease or sublease.(h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i).(2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply:(A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021.(2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:(A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).(B) An owner shall not be liable to the tenant for any corresponding rent overpayment.(3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).(j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.(k) Any waiver of the rights under this section shall be void as contrary to public policy.(l) This section shall remain in effect until January 1, 2030, and as of that date is repealed.(m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases.(2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50).(3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. |
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| 283 | 303 | | |
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| 284 | 304 | | |
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| 285 | 305 | | |
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| 286 | 306 | | 1947.12. (a) (1) (A) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement. |
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| 287 | 307 | | |
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| 288 | 308 | | (B) A lease provision that results in an increase in the gross rental rate for a dwelling unit that would exceed the limits provided in this paragraph, including a lease provision that purports to render a service or amenity previously provided or paid for by the landlord the financial obligation of the tenant without a corresponding reduction in rent, shall not be enforceable. |
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| 289 | 309 | | |
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| 290 | 310 | | (2) If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase. |
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| 291 | 311 | | |
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| 292 | 312 | | (b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established. |
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| 293 | 313 | | |
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| 294 | 314 | | (c) A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited. |
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| 295 | 315 | | |
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| 296 | 316 | | (d) This section shall not apply to the following residential real properties: |
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| 297 | 317 | | |
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| 298 | 318 | | (1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes. |
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| 299 | 319 | | |
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| 300 | 320 | | (2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. |
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| 301 | 321 | | |
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| 302 | 322 | | (3) Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a). |
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| 303 | 323 | | |
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| 304 | 324 | | (4) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome. |
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| 305 | 325 | | |
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| 306 | 326 | | (5) Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply: |
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| 307 | 327 | | |
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| 308 | 328 | | (A) The owner is not any of the following: |
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| 309 | 329 | | |
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| 310 | 330 | | (i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code. |
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| 311 | 331 | | |
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| 312 | 332 | | (ii) A corporation. |
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| 313 | 333 | | |
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| 314 | 334 | | (iii) A limited liability company in which at least one member is a corporation. |
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| 315 | 335 | | |
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| 316 | 336 | | (iv) Management of a mobilehome park, as defined in Section 798.2. |
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| 317 | 337 | | |
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| 318 | 338 | | (B) (i) The tenants have been provided written notice that the residential real property is exempt from this section using the following statement: |
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| 319 | 339 | | |
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| 320 | 340 | | This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation. |
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| 321 | 341 | | |
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| 322 | 342 | | (ii) For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement. |
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| 323 | 343 | | |
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| 324 | 344 | | (iii) For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement. |
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| 325 | 345 | | |
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| 326 | 346 | | (iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2. |
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| 327 | 347 | | |
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| 328 | 348 | | (6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. |
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| 329 | 349 | | |
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| 330 | 350 | | (e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827. |
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| 331 | 351 | | |
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| 332 | 352 | | (f) (1) On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state. |
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| 333 | 353 | | |
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| 334 | 354 | | (2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code. |
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| 335 | 355 | | |
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| 336 | 356 | | (g) For the purposes of this section, the following definitions shall apply: |
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| 337 | 357 | | |
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| 338 | 358 | | (1) Consumer Price Index for All Urban Consumers for All Items means the following: |
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| 339 | 359 | | |
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| 340 | 360 | | (A) The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics, which are as follows: |
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| 341 | 361 | | |
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| 342 | 362 | | (i) The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange. |
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| 343 | 363 | | |
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| 344 | 364 | | (ii) The CPI-U for the Riverside-San Bernardo-Ontario metropolitan area covering the Counties of Riverside and San Bernardino. |
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| 345 | 365 | | |
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| 346 | 366 | | (iii) The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego. |
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| 347 | 367 | | |
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| 348 | 368 | | (iv) The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo. |
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| 349 | 369 | | |
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| 350 | 370 | | (v) Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive. |
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| 351 | 371 | | |
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| 352 | 372 | | (B) If the United States Bureau of Labor Statistics does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations. |
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| 353 | 373 | | |
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| 354 | 374 | | (C) On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U, as described in subparagraph (B) of paragraph (3), is first published. |
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| 355 | 375 | | |
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| 356 | 376 | | (2) Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner. |
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| 357 | 377 | | |
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| 358 | 378 | | (3) (A) Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items. |
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| 359 | 379 | | |
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| 360 | 380 | | (B) (i) For rent increases that take effect before August 1 of any calendar year, the following shall apply: |
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| 361 | 381 | | |
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| 362 | 382 | | (I) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that. |
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| 363 | 383 | | |
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| 364 | 384 | | (II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that. |
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| 365 | 385 | | |
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| 366 | 386 | | (ii) For rent increases that take effect on or after August 1 of any calendar year, the following shall apply: |
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| 367 | 387 | | |
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| 368 | 388 | | (I) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year. |
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| 369 | 389 | | |
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| 370 | 390 | | (II) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year. |
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| 371 | 391 | | |
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| 372 | 392 | | (iii) The percentage change shall be rounded to the nearest one-tenth of 1 percent. |
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| 373 | 393 | | |
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| 374 | 394 | | (4) Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park. |
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| 375 | 395 | | |
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| 376 | 396 | | (5) Tenancy means the lawful occupation of residential real property and includes a lease or sublease. |
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| 377 | 397 | | |
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| 378 | 398 | | (h) (1) This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i). |
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| 379 | 399 | | |
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| 380 | 400 | | (2) In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply: |
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| 381 | 401 | | |
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| 382 | 402 | | (A) The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a). |
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| 383 | 403 | | |
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| 384 | 404 | | (B) An owner shall not be liable to the tenant for any corresponding rent overpayment. |
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| 385 | 405 | | |
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| 386 | 406 | | (3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a). |
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| 387 | 407 | | |
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| 388 | 408 | | (i) (1) Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021. |
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| 389 | 409 | | |
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| 390 | 410 | | (2) In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply: |
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| 391 | 411 | | |
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| 392 | 412 | | (A) The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a). |
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| 393 | 413 | | |
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| 394 | 414 | | (B) An owner shall not be liable to the tenant for any corresponding rent overpayment. |
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| 395 | 415 | | |
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| 396 | 416 | | (3) An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a). |
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| 397 | 417 | | |
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| 398 | 418 | | (j) This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9. |
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| 399 | 419 | | |
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| 400 | 420 | | (k) Any waiver of the rights under this section shall be void as contrary to public policy. |
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| 401 | 421 | | |
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| 402 | 422 | | (l) This section shall remain in effect until January 1, 2030, and as of that date is repealed. |
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| 403 | 423 | | |
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| 404 | 424 | | (m) (1) The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases. |
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| 405 | 425 | | |
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| 406 | 426 | | (2) It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50). |
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| 407 | 427 | | |
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| 408 | 428 | | (3) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter. |
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