| Last Version Text |
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<ns0:Description>
<ns0:Id>20250AB__115798AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-20</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-03-27</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>CORRECTED</ns0:ActionText>
<ns0:ActionDate>2025-04-28</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>REVISED</ns0:ActionText>
<ns0:ActionDate>2025-04-24</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>1157</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Kalra</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthors: Assembly Members Bonta, Bryan, Elhawary, Garcia, Jackson, Lee, McKinnor, Ortega, and Ward)</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Senator Smallwood-Cuevas)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Kalra</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Bonta</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Bryan</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Elhawary</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Garcia</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Jackson</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Lee</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>McKinnor</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ortega</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ward</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Smallwood-Cuevas</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Sections 1946.2, 1947.12, and 1947.13 of the Civil Code, relating to tenancy.</ns0:Title>
<ns0:RelatingClause>tenancy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Tenancy: just cause termination: rent increases.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>
(1)
<html:span class="EnSpace"/>
Existing law prohibits the owner of a residential real property from terminating a tenancy without just cause, as defined, after a tenant has continuously and lawfully occupied a residential real property for 12 months. Among other residential real properties or residential circumstances, existing law exempts from these provisions a residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit if the owner meets specified criteria and the tenants have been provided a specified written notice of the exemption. Existing law repeals these provisions on January 1, 2030.
</html:p>
<html:p>This bill would revise these provisions by removing the exemption for separately alienable residential real property
and, instead, only exempting a mobilehome if the above-described criteria are met. The bill would delete the January 1, 2030, repeal date, thereby extending these provisions indefinitely.</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Existing law prohibits an owner of residential real property, except as specified, from increasing over the course of any 12-month period 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 prior to the effective date of the increase, as specified.
</html:p>
<html:p>This bill would reduce the permissible gross rental rate increase under these provisions to the lesser of 2% plus the percentage change in the cost of living, or 5%.</html:p>
<html:p>Among other residential real properties, existing law exempts from these
provisions a residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, if the owner meets specified criteria and the tenants have been provided a specified written notice of the exemption.</html:p>
<html:p>This bill would revise these provisions by removing the exemption for separately alienable residential real property and, instead, only exempting a mobilehome if the above-described criteria are met.</html:p>
<html:p>Existing law repeals these provisions on January 1, 2030.</html:p>
<html:p>This bill would delete the January 1, 2030, repeal date, thereby extending these provisions indefinitely.</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Notwithstanding the above-described gross rental rate increase prohibition, existing law, upon the expiration of rental restrictions, as defined, authorizes the owner of affordable housing units that meet
certain requirements to establish the initial rental rate for the unit, and also authorizes the owner of an assisted housing development who demonstrates compliance with certain requirements under penalty of perjury to establish the initial unassisted rental rate for units in the assisted housing development. Existing law repeals these provisions on January 1, 2030.
</html:p>
<html:p>This bill would remove the January 1, 2030, repeal date, thereby extending the initial rental rate authorizations indefinitely. By extending provisions that require the owner of an assisted housing development to demonstrate compliance with specified requirements under penalty of perjury, the bill would impose a state-mandated program.</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making
that reimbursement.
</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_57D85B82-7271-4F82-9B16-8B5C03E2ACDC">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1946.2.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 1946.2 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_0A854991-5F4D-4AF5-81EC-8C7EA3C4A6A9">
<ns0:Num>1946.2.</ns0:Num>
<ns0:LawSectionVersion id="id_6D3045AD-0844-4065-9509-FA1452AB2BC9">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
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 a tenancy without just cause, which shall be stated in the written notice to terminate 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:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
One or more tenants have continuously and lawfully
occupied the residential real property for 24 months or more.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “just cause” means either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
At-fault just cause, which means any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Default in the payment of rent.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Assigning or subletting the premises in violation of the tenant’s lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
The tenant’s 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.
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
</html:p>
<html:p>
(J)
<html:span class="EnSpace"/>
The employee, agent, or licensee’s 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.
</html:p>
<html:p>
(K)
<html:span class="EnSpace"/>
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 tenant’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the owner, 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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
No-fault just cause, which means any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Intent to occupy the residential real property by the owner or the owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents for a minimum of 12 continuous months as that person’s primary residence.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
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 owner’s 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).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
This subparagraph does not apply if the intended occupant occupies a rental unit on the property or if a vacancy of a similar unit already exists at the property.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The written notice terminating a tenancy for a just cause pursuant to this
subparagraph shall contain the name or names and relationship to the owner of the intended occupant. The written notice shall additionally include notification that the tenant may request proof that the intended occupant is an owner or related to the owner as defined in subclause (II) of clause (viii). The proof shall be provided upon request and may include an operating agreement and other non-public documents.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
Clause (i) applies only if the intended occupant moves into the rental unit within 90 days after the tenant vacates and occupies the rental unit as a primary residence for at least 12 consecutive months.
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
If the intended occupant fails to occupy the rental unit within 90 days after the tenant vacates or fails to occupy the rental unit as their primary residence for at least 12 consecutive months, the owner shall offer the unit to the
tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
If the intended occupant moves into the rental unit within 90 days after the tenant vacates, but dies before having occupied the rental unit as a primary residence for 12 months, as required by clause (vi), this will not be considered a failure to comply with this section or a material violation of this section by the owner as provided in subdivision (h).
</html:p>
<html:p>
(vii)
<html:span class="EnSpace"/>
For a new tenancy commenced during the time periods described in clause (v), the accommodations shall be offered and rented or leased at the lawful rent in effect at the time any notice of termination of tenancy is served.
</html:p>
<html:p>
(viii)
<html:span class="EnSpace"/>
As used in this subparagraph:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
“Intended occupant” means the owner of the residential real property or the owner’s spouse, domestic partner, child, grandchild, parent, or grandparent, as described in clause (i).
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
“Owner” means any of the following:
</html:p>
<html:p>
(ia)
<html:span class="EnSpace"/>
An owner who is a natural person that has at least a 25-percent recorded ownership interest in the property.
</html:p>
<html:p>
(ib)
<html:span class="EnSpace"/>
An owner who is a natural person who has any recorded ownership interest in the property if 100 percent of the recorded ownership is divided among owners who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
</html:p>
<html:p>
(ic)
<html:span class="EnSpace"/>
An owner who is a natural person whose recorded interest in the property is owned through a limited liability company or partnership.
</html:p>
<html:p>
(III)
<html:span class="EnSpace"/>
For purposes of subclause (II), “natural person” includes any of the following:
</html:p>
<html:p>
(ia)
<html:span class="EnSpace"/>
A natural person who is a settlor or beneficiary of a family trust.
</html:p>
<html:p>
(ib)
<html:span class="EnSpace"/>
If the property is owned by a limited liability company or partnership, a natural person who is a beneficial owner with at least a 25-percent ownership interest in the property.
</html:p>
<html:p>
(IV)
<html:span class="EnSpace"/>
“Family trust” means a revocable living trust or irrevocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
</html:p>
<html:p>
(V)
<html:span class="EnSpace"/>
“Beneficial owner” means a natural person or family trust for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, and any of the following applies:
</html:p>
<html:p>
(ia)
<html:span class="EnSpace"/>
The natural person exercises substantial control over a partnership or limited liability company.
</html:p>
<html:p>
(ib)
<html:span class="EnSpace"/>
The natural person owns 25 percent or more of the equity interest of a partnership or limited liability company.
</html:p>
<html:p>
(ic)
<html:span class="EnSpace"/>
The natural person receives substantial economic benefits from the assets of a partnership.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Withdrawal of the residential real property from the rental market.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The
owner complying with any of the following:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
An order issued by a government agency or court to vacate the residential real property.
</html:p>
<html:p>
(III)
<html:span class="EnSpace"/>
A local ordinance that necessitates vacating the residential real property.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Intent to demolish or to
substantially remodel the residential real property.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For purposes of this subparagraph, “substantially remodel” means either of the following that cannot be reasonably accomplished in a safe manner that allows the tenant to remain living in the place and that requires the tenant to vacate the residential real property for at least 30 consecutive days:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
The replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
The abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
For purposes of this subparagraph, a tenant is not required to vacate the residential
real property on any days where a tenant could continue living in the residential real property without violating health, safety, and habitability codes and laws. 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 remodel.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
A written notice terminating a tenancy for a just cause pursuant to this subparagraph shall include all of the following information:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
A statement informing the tenant of the owner’s intent to demolish the property or substantially remodel the rental unit property.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
The following statement:
</html:p>
<html:p>“If the substantial remodel of your unit or demolition of the property as described in this notice of
termination is not commenced or completed, the owner must offer you the opportunity to re-rent your unit with a rental agreement containing the same terms as your most recent rental agreement with the owner at the rental rate that was in effect at the time you vacated. You must notify the owner within thirty (30) days of receipt of the offer to re-rent of your acceptance or rejection of the offer, and, if accepted, you must reoccupy the unit within thirty (30) days of notifying the owner of your acceptance of the offer.”</html:p>
<html:p>
(III)
<html:span class="EnSpace"/>
A description of the substantial remodel to be completed, the approximate expected duration of the substantial remodel, or if the property is to be demolished, the expected date by which the property will be demolished, together with one of the following:
</html:p>
<html:p>
(ia)
<html:span class="EnSpace"/>
A copy of the permit or permits required to undertake the substantial remodel or demolition.
</html:p>
<html:p>
(ib)
<html:span class="EnSpace"/>
Only if a notice is issued pursuant to subclause (II) of clause (ii) and the remodel does not require any permit, a copy of the signed contract with the contractor hired by the owner to complete the substantial remodel, that reasonably details the work that will be undertaken to abate the hazardous materials as described in subclause (II) of clause (ii).
</html:p>
<html:p>
(IV)
<html:span class="EnSpace"/>
A notification that if the tenant is interested in reoccupying the rental unit following the substantial remodel, the tenant shall inform the owner of the tenant’s interest in reoccupying the rental unit following the substantial remodel and provide to the owner the tenant’s address, telephone number, and email address.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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 tenant’s income, at the owner’s option, do one of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant in the written termination notice of the tenant’s 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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The amount of relocation assistance or rent waiver shall be equal to one month of the tenant’s 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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
An owner’s failure to strictly comply with this subdivision shall render the notice of termination void.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
This section shall not apply to the following types of residential real properties or residential circumstances:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Single-family owner-occupied residences, including both of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A mobilehome.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
A mobilehome, provided that both of the following apply:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The owner is not any of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
A corporation.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
A limited liability company in which at least one member is a corporation.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Management of a mobilehome park, as defined in Section 798.2.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The tenants have been provided written notice that the mobilehome is exempt from this section using the following statement:
</html:p>
<html:br/>
<html:p>“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.”</html:p>
<html:br/>
<html:p>
(ii)
<html:span class="EnSpace"/>
For a tenancy existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
For any tenancy
commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
An owner of residential real property subject to this section shall provide notice to the tenant as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The notification or lease provision shall be in no less than 12-point type, and shall include the following:
</html:p>
<html:br/>
<html:p>“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.”</html:p>
<html:br/>
<html:p>The notification or lease provision shall be subject to Section 1632.</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
An owner’s failure to comply with any provision of this section shall render the written termination notice void.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An owner who attempts to recover possession of a rental unit in material violation of this section shall be liable to the tenant in a civil action for all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Actual damages.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
In the court’s discretion, reasonable attorney’s fees and costs.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Upon a showing that the owner has acted willfully or with oppression,
fraud, or malice, up to three times the actual damages. An award may also be entered for punitive damages for the benefit of the tenant against the owner.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may seek injunctive relief based on violations of this section.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This section does not apply to the following residential real property:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The local government has made a binding finding within their local ordinance that the ordinance is more protective than
the provisions of this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Any waiver of the rights under this section shall be void as contrary to public policy.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
For the purposes of this section, the following definitions shall apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Residential real property” means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Tenancy” means the lawful occupation of residential real property and includes a lease or sublease.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_1D732BB1-519E-47A9-80C7-E63897CC47A0">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 1947.12 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_FFE9EB71-491C-4863-9431-CCAE34B430E3">
<ns0:Num>1947.12.</ns0:Num>
<ns0:LawSectionVersion id="id_14E39953-976F-4F6D-A957-0181F17FDC05">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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 2 percent plus the percentage change in the cost of living, or 5 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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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 tenant’s interest where otherwise prohibited.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section shall not apply to the following residential real properties:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Housing subject to rent or price control
through a public entity’s valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A mobilehome, provided that both of the following apply:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The owner is not any of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
A corporation.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
A limited liability company in which at least one member is a corporation.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Management of a mobilehome park, as defined
in Section 798.2.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The tenants have been provided written notice that the mobilehome is exempt from this section using the following statement:
</html:p>
<html:br/>
<html:p>“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.”</html:p>
<html:br/>
<html:p>
(ii)
<html:span class="EnSpace"/>
For a tenancy existing before July 1, 2020, or July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, the notice required under clause (i) must be provided in the rental agreement.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
On or before January 1, 2030, the Legislative Analyst’s 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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
For the purposes of this section, the following definitions shall apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Consumer Price Index for All Urban Consumers for All Items” means the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The CPI-U for the Riverside-San Bernardino-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“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.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
“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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
For rent increases that take effect before August 1 of any calendar year, the following shall apply:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The percentage change shall be rounded to the nearest one-tenth of 1 percent.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Residential real property” means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Tenancy” means the lawful occupation of residential real property and includes a lease or sublease.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
An owner shall not be liable to the tenant for any corresponding rent overpayment.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
An owner shall not be liable to the tenant for any corresponding rent overpayment.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.
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<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An owner who demands, accepts, receives, or retains any payment of rent in excess of the maximum rent allowed by this section shall be liable in a civil action to the tenant from whom those payments are demanded, accepted, received, or retained for all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Injunctive relief.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Damages in the amount by which any payment demanded, accepted, received, or retained exceeds the maximum allowable rent.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
In the court’s discretion, reasonable attorney’s fees and costs.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Upon a showing that the owner has acted willfully or with oppression,
fraud, or malice, damages up to three times the amount by which any payment demanded, accepted, received, or retained exceeds the maximum allowable rent.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may do both of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Enforce the provisions of this section.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Seek injunctive relief based on violations of this section.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
In an action pursuant to this subdivision for injunctive relief, it shall be presumed that a tenant suffers irreparable harm through violation of this section.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
An action pursuant to this
subdivision shall not be brought after the date that is three years from the date on which the cause of action accrued.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
Any waiver of the rights under this section shall be void as contrary to public policy.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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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<ns0:Num>SEC. 3.</ns0:Num>
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Section 1947.13 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
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<ns0:Num>1947.13.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding subdivision (a) of Section 1947.12, upon the expiration of rental restrictions, the following shall apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The owner of an assisted housing development who demonstrates, under penalty of perjury, compliance with all applicable provisions of Sections 65863.10, 65863.11, and 65863.13 of the Government Code and any other applicable federal, state, or local law or regulation may establish the initial unassisted rental rate for units in the applicable housing development. Any subsequent rent increase in the development shall be subject to Section 1947.12.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The owner of a deed-restricted affordable housing unit or an affordable housing unit subject to a regulatory restriction
contained in an agreement with a government agency limiting rental rates that is not within an assisted housing development may, subject to any applicable federal, state, or local law or regulation, establish the initial rental rate for the unit upon the expiration of the restriction. Any subsequent rent increase for the unit shall be subject to Section 1947.12.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Assisted housing development” has the same meaning as defined in paragraph (3) of subdivision (a) of Section 65863.10 of the Government Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Expiration of rental restrictions” has the same meaning as defined in paragraph (5) of subdivision (a) of Section 65863.10 of the Government Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Any waiver of the rights under this section shall be void as contrary to public policy.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section shall not be construed to preempt any local law.
</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
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CORRECTIONS:</ns0:Correction>
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Text—Revision Line.</ns0:Correction>
<ns0:Correction>
REVISIONS:</ns0:Correction>
<ns0:Correction>
Heading—Line 2.</ns0:Correction>
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