Alex: All right. Giles and I have a lot of fun talking about AB 1482, the rent control (statewide) law that was recently passed in California. What we are trying to do now is to discuss all the details and implications. Giles has 14 years of legal experience in the real estate industry and is a legal advisor at Mynd. We are very lucky to have him, and because we have him, we want to ask him a few questions. According to AB-1482, landlords can evict tenants for the following reasons: AB 1482 applies to apartments and other apartment buildings that contain two or more units. AB 1482 exempts single-family homes and condominiums, unless they are owned by a corporation, real estate investment trust or limited liability company of which at least one member is a corporation.4 AB 1482 also exempts cottages if one of the units is inhabited by the owner. AB 1482 does not apply to buildings constructed within the last fifteen (15) years. AB 1482 imposes rent caps on certain rental apartments in California. It also imposes “just grounds-based” eviction requirements that apply after residents have occupied the dwelling for a certain period of time.
According to Costa-Hawkins, local governments would still be prohibited from introducing rent control for housing after 1995, which is stricter than the rent ceilings of AB 1482. Assembly Bill 1482 is a comprehensive rent cap increase bill signed by California Governor Gavin Newsom in September 2019. Effective January 1, 2020, AB-1482 will limit rent increases throughout the state of California to 5% per year, plus the local inflation rate. The rules will affect cities differently depending on whether they already have rent control laws. Unless otherwise agreed, the measure is expected to expire in 2030. Since AB 1482 can only be enforced in a state court, tenants should also consider contacting a lawyer or a local tenants` advocacy organization for assistance in exercising their rights in court. In addition, ACCE, a tenant advocacy organization involved in the adoption of AB 1482, has set up a tenant hotline (1-888-428-7615) for more information. To learn more about what ab 1482 exemptions will take after June 30, 2021, listen to our discussion or read the transcript below. In cities where a rent control ordinance (under the Costa-Hawkins Rental Housing Act) is already in place, AB 1482 extends rent caps to certain additional apartments that are not covered by the existing local ordinance. AB 1482 applies retroactively to March 15, 2019. The amount paid by a tenant from this date is the amount on which the increase is based. Who to contact if you suspect that an owner is violating AB 1482? In addition to the rent control measure, AB-1482 will also require landlords to prove a “just reason” before evicting tenants who have lived in a dwelling for more than a year.
Landlords who want to evict tenants to build condominiums or make major renovations must pay a one-month rent relocation fee. AB 1482 promulgates the existing Ordinances on Local Government Rent Control for pre-1995 housing. As of January 1, 2020, AB 1482 requires most owners in California to significantly change their operations. In this webinar, the rent brake and the disposition for fair causes will be explained. AB 1482 does not prevail over local rent control rules. AB 1482 does not apply to apartments regulated by local rental control ordinances and the Costa-Hawkins Rental Housing Act. Cities and counties can continue to pass local rent control laws in line with those of Costa Hawkins and set rent caps at the level of their choice. However, they cannot influence the buildings and the associated rent ceiling that fall under AB 1482. In an effort to ease the enormous pressure on California residents by raising rents, Gov.
Gavin Newson recently signed Assembly Bill 1482 (AB-1482), a comprehensive bill that sets a rent increase cap. For buildings built after October 1978 and at least fifteen (15) years old (1978-2005), the rent is capped at 5%, plus inflation below AB 1482. Not everyone will be affected by AB-1482, as there are exceptions, but this law will still affect about 8 million Californians. Whether you are a tenant or a landlord, it is important that you familiarize yourself with AB-1482. Understanding this bill will help you stay compliant and prepare to assert your rights when needed. On January 1, 2020, Governor Newsom passed California Assembly Bill 1482 (AV1482), a statewide rent control law that allowed most residential property owners to have only an annual rent increase of 5% plus the price of inflation, as determined by the Consumer Price Index (CPI). There are notable exceptions, which we will discuss in this video. Keep in mind that if a local rent control law has stricter requirements, the local ordinance prevails. All apartments in the State of California fall under AB 1482, unless they fall under one of the following categories of exceptions: Buildings constructed after 2005 do not have a rent cap until they are fifteen (15) years old and are eligible for AB 1482. In addition to limiting rent increases, AB 1482 prevents evictions without good reason for tenants who have lived in the dwelling for at least one year. A “just cause” for eviction includes non-payment of rent, criminal activity, or violation of an essential provision of the lease. It also includes repossession of the property for the move of the owner or the owner`s immediate family member, demolition or substantial conversion of the property, and removal of the property from the rental market.
This allows landlords to evict tenants only if they have valid reasons such as those mentioned above. Governor Gavin Newsom signed Assembly Bill 1482 on October 8, 2019, which implements California`s majestic rent control legislation, which will go into effect on January 1, 2020.1 Below is a summary of some important provisions. This webinar will give you an understanding of the events that led to the adoption of statewide rent control in California and the key components of AB 1482. In jurisdictions with local rent control laws, AB 1482 only applies to apartments that are both: (1) eligible for AB 1482`s annual rent cap; and (2) is not otherwise covered by local rental control.3 So our recommendation is to hire a quality property management company to help you navigate this situation, and that`s obviously what we do. But if you want to see more of our interviews on this topic, we dive a little deeper into these specific topics. Go to Mynd.co and type AB 1482 and search above. Take out the videos giles and I made. We will also be on YouTube. Legislation passed last year will make it easier to determine the annual rent increases allowed under AB 1482, the Tenant Protection Act of 2019. The Tenant Protection Act restricts rent increases. In 2019, California Governor Gavin Newsom signed The Assembly`s Bill 1482 to limit nationwide rent increases for the next 10 years.
As of January 1, 2020, the Bill limits annual rent increases to 5% plus an increase in the Consumer Price Index, which cannot exceed 10%. However, AB 1482 does not apply to cities that are already governed by their own local rent control ordinances, such as Berkeley, Oakland, and San Francisco. If you have any questions about AB-1482 and if it applies to your property, contact a lawyer.
