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<ns0:Id>20250AB__152994CHP</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
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<ns0:ActionText>APPROVED</ns0:ActionText>
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<ns0:ActionText>FILED</ns0:ActionText>
<ns0:ActionDate>2025-10-01</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>1529</ns0:MeasureNum>
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<ns0:ChapterNum>203</ns0:ChapterNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Committee on Housing and Community Development</ns0:AuthorText>
<ns0:Authors>
<ns0:Committee>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Committee on Housing and Community Development</ns0:Name>
</ns0:Committee>
</ns0:Authors>
<ns0:Title> An act to amend Sections 1946.2 and 2924b of the Civil Code, to amend Sections 65863.10 and 65863.11 of the Government Code, and to amend Sections 50053 and 50710.7 of the Health and Safety Code, relating to housing.</ns0:Title>
<ns0:RelatingClause>housing</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Housing omnibus.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>
(1)
<html:span class="EnSpace"/>
Existing law governs the hiring of residential dwelling units. Existing law, the Tenant Protection Act of 2019, prohibits, until January 1, 2030, an owner of residential real property from terminating the tenancy of certain tenants without just cause, either at-fault or no-fault of the tenant, and requires just cause for terminating a tenancy to be stated in the written notice to terminate tenancy. The act requires an owner of residential real property subject to these provisions to provide the above-described notice to a tenant subject to specified requirements, including, 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, except as specified.
</html:p>
<html:p>This bill would allow the
above-described notice to be provided in the lease or rental agreement. </html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Existing law, the Planning and Zoning Law, requires an owner of an assisted housing development, as defined, that is within 3 years of a scheduled expiration of rental restrictions or a scheduled termination of a subsidy contract to provide notice of the scheduled expiration or termination to any prospective tenant at the time the prospective tenant is interviewed for eligibility, to existing tenants, as specified, and to affected public entities, as defined.
</html:p>
<html:p>This bill would require a notice of a scheduled expiration of rental restrictions or a scheduled termination of a subsidy contract described above to remain posted until the expiration or termination has occurred, and would make technical changes relating to these provisions.</html:p>
<html:p>Existing law requires an owner of an assisted housing
development, at least 12 months prior to the anticipated date of the termination of a subsidy contract, the expiration of rental restrictions, or prepayment on an assisted housing development, to provide a notice of the proposed change to each affected tenant household residing in the assisted housing development at the time the notice is provided and to the affected public entities, as specified. Existing law also requires an owner of an assisted housing development proposing to terminate a subsidy contract, or prepay the mortgage, or sell or otherwise dispose of the assisted housing development to provide a notice of the opportunity to offer to purchase, as provided. Existing law requires the notice of the opportunity to purchase to be given before or concurrently with the notice of the proposed change described above, as specified.</html:p>
<html:p>This bill would specify that the notice of the opportunity to purchase is required to be given before or concurrently with the
12-month notice of the proposed change, as specified.</html:p>
<html:p>Existing law requires that the initial notice of a bona fide opportunity to submit an offer to purchase contain certain information, including a statement addressing, among other things, whether the owner has an interest in selling the property. Existing law also requires that the initial notice include a statement that specified types of entities, or any combination of them, have the right to purchase the development under these provisions.</html:p>
<html:p>This bill would delete the requirement that the initial notice include a statement addressing whether the owner has an interest in selling the property. The bill would also clarify that the initial notice include a statement that the specified types of entities, as described above, have the right to submit a bona fide offer to purchase the development.</html:p>
<html:p>Existing law prescribes various
requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust and prescribes a procedure for the exercise of that power, including, among other things, that a trustee, mortgagee, or beneficiary, or any of their authorized agents, first file for record, in the office of the recorder of each county wherein the mortgaged or trust property or some part or parcel thereof is situated, a notice of default, as specified. Existing law requires the mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale to mail the notice to specified individuals, including the office of the Controller, Sacramento, California, where, as of the recording date of the notice of default, a “Notice of Lien for Postponed Property Taxes” has been recorded against the real property to which the notice of default applies. </html:p>
<html:p>This bill would additionally require the mortgagee, trustee, or other person authorized to
record the notice of default or the notice of sale to mail the notice to the office of the Director of Housing and Community Development, Sacramento, California, and the office of the Executive Director of the California Tax Credit Allocation Committee, Sacramento, California, where, as of the recording date of the notice of default, a use restriction, as defined, has been recorded against the real property to which the notice of default applies. The bill would prohibit any failure to comply with the above-described provisions from affecting the validity of a trustee’s sale or a sale in favor of a bona fide purchaser. </html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Existing law, the Zenovich-Moscone-Chacon Housing and Home Finance Act, prohibits “affordable rent” for certain rental housing developments that receive assistance on or after January 1, 1991, from exceeding a specified percentage based on the area median income adjusted for family size appropriate for the unit and whether
the household is an acutely low income household, extremely low income household, very low income household, lower income household, or moderate-income household. Existing law, for a rental housing development that dedicates 80% of units to lower income households, as specified, prohibits affordable rent from exceeding the rent prescribed by deed restrictions or regulatory agreements pursuant to the terms of public financing or public financial assistance for the rental housing development, if the rental housing development receives specified awards on or after January 1, 2025.
</html:p>
<html:p>This bill would instead, for an above-described rental housing development that dedicates at least 80% of units to lower income households, as specified, prohibit affordable rent from exceeding an amount consistent with the maximum rent levels for lower income households, as those rents and incomes are determined by the California Tax Credit Allocation Committee. By revising the limit on “affordable rent” for certain housing
developments, thereby revising the duties of local government officials with respect to administering various programs and requirements that require a determination of “affordable rent,” this bill would impose a state-mandated local program. </html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Existing law requires the Department of Housing and Community Development, through its Office of Migrant Services, to assist in the development, construction, reconstruction, rehabilitation, or operation of migrant farm labor centers, as provided. Existing law requires the department to develop a report that analyzes the feasibility and impact of transitioning housing units at Office of Migrant Services centers to year-round availability, and to submit that report to specified committees of the Legislature by July 1, 2027, as provided. Existing law, by December 31, 2028, and following completion of that report, requires the department to coordinate with the Department of General Services and the
Department of Food and Agriculture to identify available excess sites in proximity to migrant farm labor centers.
</html:p>
<html:p>This bill would specify that, for the purposes of these provisions, the term “available excess sites” refers to prescribed previously identified sites, as provided.</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
This bill would incorporate additional changes to Section 1946.2 of the Civil Code proposed by SB 522 to be operative only if this bill and SB 522 are enacted and this bill is enacted last.
</html:p>
<html:p>
(6)
<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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<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_AADE2394-4936-4EB3-9D26-EFF0D8BDEF86">
<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:LawSection id="id_FFD3F9E5-13C8-47E7-985C-3099FEB9B069">
<ns0:Num>1946.2.</ns0:Num>
<ns0:LawSectionVersion id="id_8A98A507-EE2C-4EAD-AF2F-2780302C1895">
<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 nonpublic 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"/>
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:
</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 residential property 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"/>
(I)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
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.
</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, in the lease or rental
agreement, 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>
(l)
<html:span class="EnSpace"/>
This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
This section shall become operative on April 1, 2024.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_1C81E5E8-71DC-4BBD-A739-72246DDE482D">
<ns0:Num>SEC. 1.5.</ns0:Num>
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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_4059E9B7-99E4-4336-9FBB-E4614231EBE7">
<ns0:Num>1946.2.</ns0:Num>
<ns0:LawSectionVersion id="id_063757C7-77C0-4517-BE96-AADB9A75F578">
<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 nonpublic 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 one of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A mobilehome.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Housing built to replace a previous housing unit that meets all of the following criteria:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The previous unit was substantially damaged or destroyed by a disaster. “Disaster” has the same meaning as that term is defined by Section 8680.3 of the Government Code.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed by the disaster.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The previous unit was subject to this section.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
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:
</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 residential property 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"/>
(I)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
(I)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
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.
</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, in the lease or rental agreement, 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>
(l)
<html:span class="EnSpace"/>
This section shall not apply to a homeowner of a mobilehome, as
defined in Section 798.9.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
This section shall become operative on April 1, 2024.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
</html:p>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_7649F000-AA46-45AD-B86C-83FFA6EB322A">
<ns0:Num>SEC. 2.</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'14.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'2924b.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 2924b of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_628FFE97-B567-4EF7-9F0C-1EE8F35CF15A">
<ns0:Num>2924b.</ns0:Num>
<ns0:LawSectionVersion id="id_8C541AE1-E9A0-4B50-95C1-86A8B3FD46C9">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Any person desiring a copy of any notice of default and of any notice of sale under any deed of trust or mortgage with power of sale upon real property or an estate for years therein, as to which deed of trust or mortgage the power of sale cannot be exercised until these notices are given for the time and in the manner provided in Section 2924 may, at any time subsequent to recordation of the deed of trust or mortgage and prior to recordation of notice of default thereunder, cause to be filed for record in the office of the recorder of any county in which any part or parcel of the real property is situated, a duly acknowledged request for a copy of the notice of default and of sale. This request shall be signed and acknowledged by the person making the request, specifying the name and address of the person to whom the notice
is to be mailed, shall identify the deed of trust or mortgage by stating the names of the parties thereto, the date of recordation thereof, and the book and page where the deed of trust or mortgage is recorded or the recorder’s number, and shall be in substantially the following form:
<html:table id="id_FF90DBD5-77C7-4358-9BE8-205E553DA45F">
<html:colgroup>
<html:col width="207.0"/>
<html:col width="207.0"/>
</html:colgroup>
<html:tbody>
<html:tr>
<html:td colspan="2">
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="EmSpace"/>
“In accordance with Section 2924b, Civil Code, request is hereby
<html:br/>
made that a copy of any notice of default and a copy of any notice of sale
<html:br/>
under the deed of trust (or mortgage) recorded ______, ____, in Book
<html:br/>
_____ page ____ records of ____ County, (or filed for record with
<html:br/>
recorder’s serial number ____, _______
<html:span class="ThinSpace"/>
County) California, executed
<html:br/>
by ____ as trustor (or mortgagor) in which ________ is named as
<html:br/>
beneficiary (or mortgagee)
and ______________ as trustee be mailed to
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
<html:span class="EnSpace"/>
at
<html:span class="NbSpace"/>
</html:p>
</html:td>
<html:td>
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="UnderlinedLeaders"/>
.
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">Name</html:p>
</html:th>
<html:th valign="bottom">
<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">Address</html:p>
</html:th>
</html:tr>
<html:tr>
<html:td colspan="2">
<html:p class="Justify10Point" style="font-size:10pt; text-align:justify; ">
NOTICE:
<html:span class="EnSpace"/>
A copy of any notice of default and of any notice of sale will be
<html:br/>
sent only to the address contained in this recorded request. If your address changes, a new request must be recorded.
<html:br/>
</html:p>
</html:td>
</html:tr>
<html:tr>
<html:td>
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
<html:span class="SpacedLeaders"/>
</html:p>
</html:td>
<html:td>
<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
Signature
<html:span class="EnSpace"/>
<html:span class="UnderlinedLeaders"/>
”
</html:p>
</html:td>
</html:tr>
</html:tbody>
</html:table>
</html:p>
<html:p>Upon the filing for record of the request, the recorder shall index in the general index of grantors the names of the trustors (or mortgagors) recited therein and the names of persons requesting copies.</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale shall do each of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Within 10 business days following recordation of
the notice of default, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice with the recording date shown thereon, addressed to each person whose name and address are set forth in a duly recorded request therefor, directed to the address designated in the request and to each trustor or mortgagor at his or her last known address if different than the address specified in the deed of trust or mortgage with power of sale.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
At least 20 days before the date of sale, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice of the time and place of sale, addressed to each person whose name and address are set forth in a duly recorded request therefor, directed to the address designated in the request and to each trustor or mortgagor at
his or her last known address if different than the address specified in the deed of trust or mortgage with power of sale.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
As used in paragraphs (1) and (2), the “last known address” of each trustor or mortgagor means the last business or residence physical address actually known by the mortgagee, beneficiary, trustee, or other person authorized to record the notice of default. For the purposes of this subdivision, an address is “actually known” if it is contained in the original deed of trust or mortgage, or in any subsequent written notification of a change of physical address from the trustor or mortgagor pursuant to the deed of trust or mortgage. For the purposes of this subdivision, “physical address” does not include an email or any form of electronic address for a trustor or mortgagor. The beneficiary shall inform the trustee of the trustor’s last address actually known by the beneficiary. However, the trustee shall incur no
liability for failing to send any notice to the last address unless the trustee has actual knowledge of it.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A “person authorized to record the notice of default or the notice of sale” shall include an agent for the mortgagee or beneficiary, an agent of the named trustee, any person designated in an executed substitution of trustee, or an agent of that substituted trustee.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale shall do the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Within one month following recordation of the notice of default, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice with the recording date shown thereon, addressed to each person set forth in
paragraph (2), provided that the estate or interest of any person entitled to receive notice under this subdivision is acquired by an instrument sufficient to impart constructive notice of the estate or interest in the land or portion thereof that is subject to the deed of trust or mortgage being foreclosed, and provided the instrument is recorded in the office of the county recorder so as to impart that constructive notice prior to the recording date of the notice of default and provided the instrument as so recorded sets forth a mailing address that the county recorder shall use, as instructed within the instrument, for the return of the instrument after recording, and which address shall be the address used for the purposes of mailing notices herein.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The persons to whom notice shall be mailed under this subdivision are:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The successor in interest, as of the recording
date of the notice of default, of the estate or interest or any portion thereof of the trustor or mortgagor of the deed of trust or mortgage being foreclosed.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The beneficiary or mortgagee of any deed of trust or mortgage recorded subsequent to the deed of trust or mortgage being foreclosed, or recorded prior to or concurrently with the deed of trust or mortgage being foreclosed but subject to a recorded agreement or a recorded statement of subordination to the deed of trust or mortgage being foreclosed.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The assignee of any interest of the beneficiary or mortgagee described in subparagraph (B), as of the recording date of the notice of default.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The vendee of any contract of sale, or the lessee of any lease, of the estate or interest being foreclosed that is recorded subsequent to the deed of trust or
mortgage being foreclosed, or recorded prior to or concurrently with the deed of trust or mortgage being foreclosed but subject to a recorded agreement or statement of subordination to the deed of trust or mortgage being foreclosed.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
The successor in interest to the vendee or lessee described in subparagraph (D), as of the recording date of the notice of default.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
The office of the Controller, Sacramento, California, where, as of the recording date of the notice of default, a “Notice of Lien for Postponed Property Taxes” has been recorded against the real property to which the notice of default applies.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
The office of the Director of Housing and Community Development, Sacramento, California, and the office of the Executive Director of the California Tax Credit Allocation Committee,
Sacramento, California, respectively, where, as of the recording date of the notice of default, a use restriction, as defined in subdivision (a) of Section 65863.11 of the Government Code, has been recorded against the real property to which the notice of default applies.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Any failure to comply with the provisions of this subparagraph shall not affect the validity of a trustee’s sale or a sale in favor of a bona fide purchaser.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
At least 20 days before the date of sale, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice of the time and place of sale addressed to each person to whom a copy of the notice of default is to be mailed as provided in paragraphs (1) and (2), and addressed to the office of any state taxing agency, Sacramento, California, that has recorded,
subsequent to the deed of trust or mortgage being foreclosed, a notice of tax lien prior to the recording date of the notice of default against the real property to which the notice of default applies.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Provide a copy of the notice of sale to the Internal Revenue Service, in accordance with Section 7425 of the Internal Revenue Code and any applicable federal regulation, if a “Notice of Federal Tax Lien under Internal Revenue Laws” has been recorded, subsequent to the deed of trust or mortgage being foreclosed, against the real property to which the notice of sale applies. The failure to provide the Internal Revenue Service with a copy of the notice of sale pursuant to this paragraph shall be sufficient cause to rescind the trustee’s sale and invalidate the trustee’s deed, at the option of either the successful bidder at the trustee’s sale or the trustee, and in either case with the consent of the beneficiary. Any option to rescind the
trustee’s sale pursuant to this paragraph shall be exercised prior to any transfer of the property by the successful bidder to a bona fide purchaser for value. A rescission of the trustee’s sale pursuant to this paragraph may be recorded in a notice of rescission pursuant to Section 1058.5.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The mailing of notices in the manner set forth in paragraph (1) shall not impose upon any licensed attorney, agent, or employee of any person entitled to receive notices as herein set forth any duty to communicate the notice to the entitled person from the fact that the mailing address used by the county recorder is the address of the attorney, agent, or employee.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Any deed of trust or mortgage with power of sale hereafter executed upon real property or an estate for years therein may contain a request that a copy of any notice of default and a copy of any notice of sale thereunder shall
be mailed to any person or party thereto at the address of the person given therein, and a copy of any notice of default and of any notice of sale shall be mailed to each of these at the same time and in the same manner required as though a separate request therefor had been filed by each of these persons as herein authorized. If any deed of trust or mortgage with power of sale executed after September 19, 1939, except a deed of trust or mortgage of any of the classes excepted from the provisions of Section 2924, does not contain a mailing address of the trustor or mortgagor therein named, and if no request for special notice by the trustor or mortgagor in substantially the form set forth in this section has subsequently been recorded, a copy of the notice of default shall be published once a week for at least four weeks in a newspaper of general circulation in the county in which the property is situated, the publication to commence within 10 business days after the filing of the notice of default. In lieu
of publication, a copy of the notice of default may be delivered personally to the trustor or mortgagor within the 10 business days or at any time before publication is completed, or by posting the notice of default in a conspicuous place on the property and mailing the notice to the last known address of the trustor or mortgagor.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Any person required to mail a copy of a notice of default or notice of sale to each trustor or mortgagor pursuant to subdivision (b) or (c) by registered or certified mail shall simultaneously cause to be deposited in the United States mail, with postage prepaid and mailed by first-class mail, an envelope containing an additional copy of the required notice addressed to each trustor or mortgagor at the same address to which the notice is sent by registered or certified mail pursuant to subdivision (b) or (c). The person shall execute and retain an affidavit identifying the notice mailed, showing the name and
residence or business address of that person, that he or she is over 18 years of age, the date of deposit in the mail, the name and address of the trustor or mortgagor to whom sent, and that the envelope was sealed and deposited in the mail with postage fully prepaid. In the absence of fraud, the affidavit required by this subdivision shall establish a conclusive presumption of mailing.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding subdivision (a), with respect to separate interests governed by an association, as defined in Section 4080 or 6528, the association may cause to be filed in the office of the recorder in the county in which the separate interests are situated a request that a mortgagee, trustee, or other person authorized to record a notice of default regarding any of those separate interests mail to the association a copy of any trustee’s deed upon sale concerning a separate interest. The request shall include a legal description or
the assessor’s parcel number of all the separate interests. A request recorded pursuant to this subdivision shall include the name and address of the association and a statement that it is an association as defined in Section 4080 or 6528. Subsequent requests of an association shall supersede prior requests. A request pursuant to this subdivision shall be recorded before the filing of a notice of default. The mortgagee, trustee, or other authorized person shall mail the requested information to the association within 15 business days following the date of the trustee’s sale. Failure to mail the request, pursuant to this subdivision, shall not affect the title to real property.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A request filed pursuant to paragraph (1) does not, for purposes of Section 27288.1 of the Government Code, constitute a document that either effects or evidences a transfer or encumbrance of an interest in real property or that releases or terminates any interest,
right, or encumbrance of an interest in real property.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
No request for a copy of any notice filed for record pursuant to this section, no statement or allegation in the request, and no record thereof shall affect the title to real property or be deemed notice to any person that any person requesting copies of notice has or claims any right, title, or interest in, or lien or charge upon the property described in the deed of trust or mortgage referred to therein.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
“Business day,” as used in this section, has the meaning specified in Section 9.
</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_E65089AB-4745-4210-B1F0-C1DE223AF110">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:GOV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'65863.10.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 65863.10 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_BE363806-C340-4AE8-B6B5-1A71C3113046">
<ns0:Num>65863.10.</ns0:Num>
<ns0:LawSectionVersion id="id_80F5614B-F575-4CF7-BB9D-8E754CEBA9FA">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
As used in this section, the following terms have the following meanings:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Affected public entities” means the mayor of the city in which the assisted housing development is located, or, if located in an unincorporated area, the chair of the board of supervisors of the county; the appropriate local public housing authority, if any; and the Department of Housing and Community Development.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Affected tenant” means a tenant household residing in an assisted housing development, as defined in paragraph (3), at the time notice is required to be provided pursuant to this section, that benefits from the governmental assistance.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Assisted housing development” means a multifamily rental housing development of five or more units that receives governmental assistance under any of the following programs:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
New construction, substantial rehabilitation, moderate rehabilitation, property disposition, and loan management set-aside programs, or any other program providing project-based assistance, under Section 8 of the United States Housing Act of 1937, as amended (42 U.S.C. Sec. 1437f).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The following federal programs:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The Below-Market-Interest-Rate Program under Section 221(d)(3) of the National Housing Act (12 U.S.C. Sec. 1715
<html:i>l</html:i>
(d)(3) and (5)).
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Section 236 of the National Housing Act (12 U.S.C. Sec. 1715z-1).
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Section 202 of the Housing Act of 1959 (12 U.S.C. Sec. 1701q).
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Sec. 8013).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Programs for rent supplement assistance under Section 101 of the Housing and Urban Development Act of 1965, as amended (12 U.S.C. Sec. 1701s).
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Programs under Sections 514, 515, 516, 521, 533, and 538 of the Housing Act of 1949, as amended (42 U.S.C. Sec. 1485).
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Section 42 of the Internal Revenue Code.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Section 142(d) of the Internal Revenue Code or its predecessors (tax-exempt private activity mortgage revenue bonds).
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Section 147 of the Internal Revenue Code (Section 501(c)(3) bonds).
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
Title I of the Housing and Community Development Act of 1974, as amended (Community Development Block Grant Program).
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended (HOME Investment Partnership Program).
</html:p>
<html:p>
(J)
<html:span class="EnSpace"/>
Titles IV and V of the McKinney-Vento Homeless Assistance Act of 1987, as amended, including the Department of Housing and Urban Development’s Supportive Housing Program, Shelter Plus Care Program, and surplus federal property disposition program.
</html:p>
<html:p>
(K)
<html:span class="EnSpace"/>
Grants and loans made by the Department of Housing and Community Development, including the Rental Housing Construction
Program, CHRP-R, and other rental housing finance programs.
</html:p>
<html:p>
(L)
<html:span class="EnSpace"/>
Grants and loans made by the California Housing Finance Agency for rental housing.
</html:p>
<html:p>
(M)
<html:span class="EnSpace"/>
Chapter 1138 of the Statutes of 1987.
</html:p>
<html:p>
(N)
<html:span class="EnSpace"/>
The following assistance provided by counties or cities in exchange for restrictions on the maximum rents that may be charged for units within a multifamily rental housing development and on the maximum tenant income as a condition of eligibility for occupancy of the unit subject to the rent restriction, as reflected by a recorded agreement, or other legally enforceable agreement, with a county or city:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Loans or grants provided using tax increment financing pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of
the Health and Safety Code).
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Local housing trust funds, as referred to in paragraph (3) of subdivision (a) of Section 50843 of the Health and Safety Code.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The sale or lease of public property at or below market rates.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The granting of density bonuses, or concessions or incentives, including fee waivers, parking variances, or amendments to general plans, zoning, or redevelopment project area plans, pursuant to Chapter 4.3 (commencing with Section 65915).
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The Middle Class Housing Act of 2022 (Section 65852.24).
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
Streamlining assistance pursuant to the Affordable Housing and High Road Jobs Act of 2022 (Chapter 4.1 (commencing with Section 65912.100)).
</html:p>
<html:p>
(vii)
<html:span class="EnSpace"/>
Section 65913.4.
</html:p>
<html:p>
(viii)
<html:span class="EnSpace"/>
The Affordable Housing on Faith and Higher Education Lands Act of 2023 (Section 65913.16).
</html:p>
<html:p>Assistance pursuant to this subparagraph shall not include the use of tenant-based Housing Choice Vouchers (Section 8(o) of the United States Housing Act of 1937, 42 U.S.C. Sec. 1437f(o), excluding paragraph (13) relating to project-based assistance). Restrictions shall not include any rent control or rent stabilization ordinance imposed by a county, city, or city and county.</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“City” means a general law city, a charter city, or a city and county.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Expiration of rental restrictions” means the expiration of rental restrictions for an assisted housing development described in paragraph (3)
unless the development has other recorded agreements restricting the rent to the same or lesser levels for at least 50 percent of the units or the same number of units under the rent restrictions prior to the expiration, whichever is greater.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Low or moderate income” means having an income as defined in Section 50093 of the Health and Safety Code.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
“Owner” means an individual, corporation, association, partnership, joint venture, or business entity that holds title to the land on which an assisted housing development is located. If the assisted housing development is the subject of a leasehold interest, “owner” also means an individual, corporation, association, partnership, joint venture, or business entity that holds a leasehold interest in the assisted housing development, and the owner holding title to the land and the owner with a leasehold interest in the assisted
housing development shall be jointly responsible for compliance.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
“Prepayment” means the payment in full or refinancing of the federally insured or federally held mortgage indebtedness prior to its original maturity date, or the voluntary cancellation of mortgage insurance, on an assisted housing development described in paragraph (3) that would have the effect of removing the current rent or occupancy or rent and occupancy restrictions contained in the applicable laws and the regulatory agreement.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
“Termination” means the failure of an owner to extend or renew its participation in a federal, state, or local government subsidy program or private, nongovernmental subsidy program for an assisted housing development described in paragraph (3), either at or prior to the scheduled date of the expiration of the contract, that may result in an increase in tenant rents or a change
in the form of the subsidy from project-based to tenant-based.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
At least 12 months prior to the anticipated date of the termination of a subsidy contract, the expiration of rental restrictions, or prepayment on an assisted housing development, the owner shall provide a notice of the proposed change to each affected tenant household residing in the assisted housing development at the time the notice is provided and to the affected public entities. An owner who meets the requirements of Section 65863.13 shall be exempt from providing that notice. The notice shall contain all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
In the event of termination, a statement that the owner intends to terminate the subsidy contract or rental restrictions upon its expiration date, or the expiration date of any contract extension thereto.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
In the event of the expiration of rental restrictions, a statement that the restrictions will expire, and in the event of prepayment, termination, or the expiration of rental restrictions, whether the owner might increase rents during the 12 months following prepayment, termination, or the expiration of rental restrictions.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
In the event of prepayment, a statement that the owner intends to pay in full or refinance the federally insured or federally held mortgage indebtedness prior to its original maturity date, or voluntarily cancel the mortgage insurance.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The anticipated date of the termination, prepayment of the federal or other program or expiration of rental restrictions, and the identity of the federal or other program described in subdivision (a).
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A statement that the proposed change would have the effect of removing the current low-income affordability restrictions in the applicable contract or regulatory agreement.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
A statement whether or not the applicable program allows the owner to elect to keep the housing in the program after the proposed termination or prepayment date and, if so, a statement as to whether the owner expects to elect to keep the housing in the program after such date if allowed.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
A statement whether other governmental assistance will be provided to tenants residing in the development at the time of the termination of the subsidy contract or prepayment.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
A statement that a subsequent notice of the proposed change, including anticipated changes in rents, if any, for the development, will be provided at least six
months prior to the anticipated date of termination of the subsidy contract, or expiration of rental restrictions, or prepayment.
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
A statement that the notice of opportunity to submit an offer to purchase has been sent to qualified entities, is attached to or included in the notice, and is posted in the common area of the development, as required in Section 65863.11.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), if an owner provides a copy of a federally required notice of termination of a subsidy contract or prepayment at least 12 months prior to the proposed change to each affected tenant household residing in the assisted housing development at the time the notice is provided and to the affected public entities, the owner shall be deemed in compliance with this subdivision, if the notice is in compliance with all federal laws. However, the federally required notice does not satisfy the
requirements of Section 65863.11.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
At least six months prior to the anticipated date of termination of a subsidy contract, expiration of rental restrictions or prepayment on an assisted housing development, the owner shall provide a notice of the proposed change to each affected tenant household residing in the assisted housing development at the time the notice is provided and to the affected public entities. An owner who meets the requirements of Section 65863.13 shall be exempt from providing that notice.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The notice to the tenants shall contain all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The anticipated date of the termination or prepayment of the federal or other program, or the expiration of rental restrictions, and the identity of the federal or other program, as described in subdivision (a).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The current rent and rent anticipated for the unit during the 12 months immediately following the date of the prepayment or termination of the federal or other program, or expiration of rental restrictions.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A statement that a copy of the notice will be sent to the city, county, or city and county, where the assisted housing development is located, to the appropriate local public housing authority, if any, and to the Department of Housing and Community Development.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A statement of the possibility that the housing may remain in the federal or other program after the proposed date of subsidy termination or prepayment if the owner elects to do so under the terms of the federal government’s or other program administrator’s offer or that a rent increase may not take place due to the expiration of rental
restrictions.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A statement of the owner’s intention to participate in any current replacement subsidy program made available to the affected tenants.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
A statement that the owner shall accept all enhanced Section 8 vouchers if the tenants receive them.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
The name and telephone number of the city, county, or city and county, the appropriate local public housing authority, if any, the Department of Housing and Community Development, and a legal services organization, that can be contacted to request additional written information about an owner’s responsibilities and the rights and options of an affected tenant.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
In addition to the information provided in the notice to the affected tenant, the notice to the affected public entities shall contain
information regarding the number of affected tenants in the project, the number of units that are government assisted and the type of assistance, the number of the units that are not government assisted, the number of bedrooms in each unit that is government assisted, and the ages and income of the affected tenants. The notice shall briefly describe the owner’s plans for the project, including any timetables or deadlines for actions to be taken and specific governmental approvals that are required to be obtained, the reason the owner seeks to terminate the subsidy contract or prepay the mortgage, and any contacts the owner has made or is making with other governmental agencies or other interested parties in connection with the notice. The owner shall also attach a copy of any federally required notice of the termination of the subsidy contract or prepayment that was provided at least six months prior to the proposed change. The information contained in the notice shall be based on data that is reasonably
available from existing written tenant and project records.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The owner proposing the termination or prepayment of governmental assistance or the owner of an assisted housing development in which there will be the expiration of rental restrictions shall provide additional notice of any significant changes to the notice required by subdivision (c) within seven business days to each affected tenant household residing in the assisted housing development at the time the notice is provided and to the affected public entities. “Significant changes” shall include, but not be limited to, any changes to the date of termination or prepayment, or expiration of rental restrictions or the anticipated new rent.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An owner who is subject to the requirements of this section shall also provide a copy of any notices issued to existing tenants pursuant to subdivision
(b), (c), or (d), or paragraph (2) of this subdivision, to any prospective tenant at the time the prospective tenant is interviewed for eligibility.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The owner of an assisted housing development that is three years from a scheduled expiration of rental restrictions or a scheduled termination of a subsidy contract shall also provide notice of the scheduled expiration of rental restrictions or a scheduled termination of a subsidy contract to existing tenants by posting the notice in an accessible location of the property. The notice shall remain posted until the expiration of rental restrictions or the termination of a subsidy contract has occurred. This notice shall also be provided to affected public entities. This paragraph is applicable only to owners of assisted housing developments where the rental restrictions are scheduled to expire after January 1, 2021.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section
shall not require the owner to obtain or acquire additional information that is not contained in the existing tenant and project records, or to update any information in the owner’s records. The owner shall not be held liable for any inaccuracies contained in these records or from other sources, nor shall the owner be liable to any party for providing this information.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of this section, service of the notice to the affected tenants shall be made by first-class mail postage prepaid.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this section, service of notice to the city, county, city and county, appropriate local public housing authority, if any, and the Department of Housing and Community Development shall be made by either first-class mail postage prepaid or electronically to any public entity that has provided an email address for that purpose.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Nothing in this section shall enlarge or diminish the authority, if any, that a city, county, city and county, affected tenant, or owner may have, independent of this section.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
If, prior to January 1, 2001, the owner has already accepted a bona fide offer from a qualified entity, as defined in subdivision (c) of Section 65863.11, and has complied with this section as it existed prior to January 1, 2001, at the time the owner decides to sell or otherwise dispose of the development, the owner shall be deemed in compliance with this section.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Injunctive relief shall be available to any party identified in paragraph (1) or (2) of subdivision (a) who is aggrieved by a violation of this section, including, but not limited to, a group of affected tenants that meets the requirements of a legitimate tenant
organization, as defined in federal regulations, or a tenant association, as defined in paragraph (4) of subdivision (a) of Section 65863.11. Injunctive relief pursuant to this subdivision may include, but is not limited to, reimposition of the prior restrictions until any required notice is provided and the required period has elapsed, and restitution of any rent increases collected without compliance with this section. In a judicial action brought pursuant to this subdivision, the court may award attorney’s fees and costs to a prevailing plaintiff.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
The Director of Housing and Community Development shall approve forms to be used by owners to comply with subdivisions (b), (c), and (e). Once the director has approved the forms, an owner shall use the approved forms to comply with subdivisions (b), (c), and (e).
</html:p>
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</ns0:LawSection>
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</ns0:BillSection>
<ns0:BillSection id="id_CA0ED5A7-DAB3-43C0-AACB-3D62817EC42F">
<ns0:Num>SEC. 4.</ns0:Num>
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Section 65863.11 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_83270F15-8136-407F-89C8-A1DC0A1B6092">
<ns0:Num>65863.11.</ns0:Num>
<ns0:LawSectionVersion id="id_E9ED9BDD-BD3E-4646-B73F-B8AFF568A679">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Terms used in this section shall be defined as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Assisted housing development” and “development” shall have the same meaning as in paragraph (3) of subdivision (a) of Section 65863.10.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Owner” shall have the same meaning as in paragraph (7) of subdivision (a) of Section 65863.10.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Tenant” means a tenant, subtenant, lessee, sublessee, or other person legally in possession or occupying the assisted housing development.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Tenant association” means a group of tenants who have formed a nonprofit corporation, cooperative corporation, or other entity
or organization, or a local nonprofit, regional, or national organization whose purpose includes the acquisition of an assisted housing development and that represents the interest of at least a majority of the tenants in the assisted housing development.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Low or moderate income” means having an income as defined in Section 50093 of the Health and Safety Code.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Very low income” means having an income as defined in Section 50105 of the Health and Safety Code.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
“Local nonprofit organizations” means not-for-profit corporations organized pursuant to Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code that have as their principal purpose the ownership, development, or management of housing or community development projects for persons and families of low or moderate income and very low
income, and which have a broadly representative board, a majority of whose members are community based and have a proven track record of local community service.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
“Local public agencies” means housing authorities, redevelopment agencies, or any other agency of a city, county, or city and county, whether general law or chartered, which are authorized to own, develop, or manage housing or community development projects for persons and families of low or moderate income and very low income.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
“Regional or national organizations” means not-for-profit, charitable corporations organized on a multicounty, state, or multistate basis that have as their principal purpose the ownership, development, or management of housing or community development projects for persons and families of low or moderate income and very low income and own and operate at least three comparable rent- and
income-restricted affordable rental properties governed under a regulatory agreement with a department or agency of the State of California or the United States, either directly or by serving as the managing general partner of limited partnerships or managing member of limited liability corporations.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
“Regional or national public agencies” means multicounty, state, or multistate agencies that are authorized to own, develop, or manage housing or community development projects for persons and families of low or moderate income and very low income and own and operate at least three comparable rent- and income-restricted affordable rental properties governed under a regulatory agreement with a department or agency of the State of California or the United States, either directly or by serving as the managing general partner of limited partnerships or managing member of limited liability corporations.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
“Use restriction” means any federal, state, or local statute, regulation, ordinance, or contract that, as a condition of receipt of any housing assistance, including a rental subsidy, mortgage subsidy, or mortgage insurance, to an assisted housing development, establishes maximum limitations on tenant income as a condition of eligibility for occupancy of the units within a development, imposes any restrictions on the maximum rents that could be charged for any of the units within a development; or requires that rents for any of the units within a development be reviewed by any governmental body or agency before the rents are implemented.
</html:p>
<html:p>
(12)
<html:span class="EnSpace"/>
“Profit-motivated housing organizations and individuals” means individuals or two or more persons organized pursuant to Division 1 (commencing with Section 100) of Title 1 of, Division 3 (commencing with Section 1200) of Title 1 of, or Chapter
5 (commencing with Section 16100) of Title 2 of, the Corporations Code, that carry on as a business for profit and own and operate at least three comparable rent- and income-restricted affordable rental properties governed under a regulatory agreement with a department or agency of the State of California or the United States, either directly or by serving as the managing general partner of limited partnerships or managing member of limited liability corporations.
</html:p>
<html:p>
(13)
<html:span class="EnSpace"/>
“Department” means the Department of Housing and Community Development.
</html:p>
<html:p>
(14)
<html:span class="EnSpace"/>
“Offer to purchase” means an offer from a qualified or nonqualified entity that is nonbinding on the owner.
</html:p>
<html:p>
(15)
<html:span class="EnSpace"/>
“Expiration of rental restrictions” has the meaning given in paragraph (5) of subdivision (a) of Section 65863.10.
</html:p>
<html:p>
(16)
<html:span class="EnSpace"/>
“Qualified entity” means an entity that meets the requirements of subdivisions (d) and (e).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
An owner of an assisted housing development shall not terminate a subsidy contract or prepay the mortgage pursuant to Section 65863.10, unless the owner or its agent shall first have provided each of the entities listed in subdivision (d) an opportunity to submit an offer to purchase the development, in compliance with subdivisions (g) and (h). An owner of an assisted housing development in which there will be the expiration of rental restrictions shall also provide each of the entities listed in subdivision (d) an opportunity to submit an offer to purchase the development, in compliance with subdivisions (g) and (h). An owner who meets the requirements of Section 65863.13 shall be exempt from this requirement.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
An owner
of an assisted housing development shall not sell, or otherwise dispose of, the development at any time within the five years before the expiration of rental restrictions or at any time if the owner is eligible for prepayment or termination within five years unless the owner or its agent shall first have provided each of the entities listed in subdivision (d) an opportunity to submit an offer to purchase the development, in compliance with this section. An owner who meets the requirements of Section 65863.13 shall be exempt from this requirement.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The entities to whom an opportunity to purchase shall be provided include only the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The tenant association of the development.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Local nonprofit organizations and public agencies.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Regional or national nonprofit organizations and regional or national public agencies.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Profit-motivated housing organizations or individuals.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For the purposes of this section, to qualify as a purchaser of an assisted housing development, an entity listed in subdivision (d) shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Be certified by the department, based on demonstrated relevant prior experience in California and current capacity, as capable of operating the housing and related facilities for its remaining useful life, either by itself or through a management agent. The department shall establish a process for certifying an entity meeting the requirements of subdivision (d) and maintain a list of entities that are certified, which list shall be updated at least annually.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Agree to obligate itself and any successors in interest to maintain the affordability of the assisted housing development for households of very low, low, or moderate income for either a 30-year period from the date that the purchaser took legal possession of the housing or the remaining term of the existing federal governmental assistance specified in subdivision (a) of Section 65863.10, whichever is greater. The development shall be continuously occupied in the approximate percentages that those households who have occupied that development on the date the owner gave notice of intent or the approximate percentages specified in existing use restrictions, whichever is higher. This obligation shall be recorded before the close of escrow in the office of the county recorder of the county in which the development is located and shall contain a legal description of the property, indexed to the name of the owner as grantor. An owner that obligates
itself to an enforceable regulatory agreement that will ensure for a period of not less than 30 years that rents for units occupied by low- and very low income households or that are vacant at the time of executing a purchase agreement will conform with restrictions imposed by Section 42(f) of the Internal Revenue Code shall be deemed in compliance with this paragraph. In addition, the regulatory agreement shall contain provisions requiring the renewal of rental subsidies, should they be available, provided that assistance is at a level to maintain the project’s fiscal viability.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Local nonprofit organizations and public agencies shall have no member among their officers or directorate with a financial interest in assisted housing developments that have terminated a subsidy contract or prepaid a mortgage on the development without continuing the low-income restrictions.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
If
an assisted housing development is not economically feasible, as determined by all entities with regulatory agreements and deed-restrictions on the development, a purchaser shall be entitled to remove one or more units from the rent and occupancy requirements as is necessary for the development to become economically feasible, provided that once the development is again economically feasible, the purchaser shall designate the next available units as low-income units up to the original number of those units.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
If an owner decides to terminate a subsidy contract, or prepay the mortgage pursuant to Section 65863.10, or sell or otherwise dispose of the assisted housing development pursuant to subdivision (b) or (c), or if the owner has an assisted housing development in which there will be the expiration of rental restrictions, the owner shall first give notice of the opportunity to offer to purchase to each qualified entity on the list provided
to the owner by the department, in accordance with subdivision (p), as well as to those qualified entities that directly contact the owner. The notice of the opportunity to offer to purchase must be given before or concurrently with the notice required pursuant to subdivision (b) of Section 65863.10 for a period of at least 12 months. The owner shall contact the department to obtain the list of qualified entities. The notice shall conform to the requirements of subdivision (h) and shall be sent to the entities by registered or certified mail, return receipt requested. The owner shall also post a copy of the notice in a conspicuous place in the common area of the development.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The initial notice of a bona fide opportunity to submit an offer to purchase shall contain all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A statement addressing both of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Whether the owner intends to maintain the current number of affordable units and level of affordability.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Whether the owner has executed a contract or agreement of at least five years’ duration with a public entity to continue or replace subsidies to the property and to maintain an equal or greater number of units at an equal or deeper level of affordability and, if so, the length of the contract or agreement.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A statement that each of the type of entities listed in subdivision (d), or any combination of them, has the right to submit a bona fide offer to purchase the development under this section.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Except as provided in subparagraph (B), a statement that the owner will make available to each of the types of entities
listed in subdivision (d), within 15 business days of receiving a request therefor, that includes all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Itemized lists of monthly operating expenses for the property.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Capital improvements, as determined by the owner, made within each of the two preceding calendar years at the property.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The amount of project property reserves.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Copies of the two most recent financial and physical inspection reports on the property, if any, filed with a federal, state, or local agency.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The most recent rent roll for the property listing the rent paid for each unit and the subsidy, if any, paid by a governmental agency as of the date the notice of offer to purchase was
made pursuant to subdivision (g).
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
A statement of the vacancy rate at the property for each of the two preceding calendar years.
</html:p>
<html:p>
(vii)
<html:span class="EnSpace"/>
The terms of assumable financing, if any, the terms of the subsidy contract, if any, and proposed improvements to the property to be made by the owner in connection with the sale, if any.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Subparagraph (A) shall not apply if 25 percent or less of the units on the property are subject to affordability restrictions or a rent or mortgage subsidy contract.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A corporation authorized pursuant to Section 52550 of the Health and Safety Code or a public entity may share information obtained pursuant to subparagraph (A) with other prospective purchasers, and shall not be required to sign a confidentiality agreement as a
condition of receiving or sharing this information, provided that the information is used for the purpose of attempting to preserve the affordability of the property.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A statement that the owner has satisfied all notice requirements pursuant to subdivision (b) of Section 65863.10, unless the notice of opportunity to submit an offer to purchase is delivered more than 12 months before the anticipated date of termination, prepayment, or expiration of rental restrictions.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
If a qualified entity elects to purchase an assisted housing development, it shall make a bona fide offer to purchase the development at the market value determined pursuant to subdivision (k), subject to the requirements of this subdivision. A qualified entity’s bona fide offer to purchase shall be submitted within 270 days of the owner’s notice of the opportunity to submit an offer pursuant to subdivision
(g), identify whether it is a tenant association, nonprofit organization, public agency, or profit-motivated organizations or individuals, and certify, under penalty of perjury, that it is qualified pursuant to subdivision (e). If an owner has received a bona fide offer from one or more qualified entities within the first 270 days from the date of an owner’s bona fide notice of the opportunity to submit an offer to purchase, the owner shall notify the department of all such offers within 90 days and either (1) accept a bona fide offer from a qualified entity to purchase and execute a purchase agreement, or (2) record a new regulatory agreement with a term of at least 30 years that, at a minimum, meets the criteria of subdivision (a) of Section 65863.13. Once a bona fide offer is made, the owner shall take all steps reasonably required to renew any expiring housing assistance contract, or extend any available subsidies or use restrictions, if feasible, before the effective date of any expiration or
termination.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
The market value of the property shall be determined by negotiation and agreement between the parties. If the parties fail to reach an agreement regarding the market value, the market value shall be determined by an appraisal process initiated by the owner’s receipt of the bona fide offer, which shall specifically reference the appraisal process provided by this subdivision as the means for determining the final purchase price. Either the owner or the qualified entity, or both, may request that the fair market value of the property’s highest and best use, based on current zoning, be determined by an independent appraiser qualified to perform multifamily housing appraisals, who shall be selected and paid by the requesting party. All appraisers shall possess qualifications equivalent to those required by the members of the Appraisal Institute and shall be certified by the department as having sufficient experience in appraising
comparable rental properties in California. If the appraisals differ by less than 5 percent, the market value and sales price shall be set at the higher appraised value. If the appraisals differ by more than 5 percent, the parties may elect to have the appraisers negotiate a mutually agreeable market value and sales price, or to jointly select a third appraiser, whose determination of market value and the sales price shall be binding.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
If an owner does not receive a bona fide offer from one or more qualified entities within the 270 days specified in subdivision (i), or if after the 270 days specified in subdivision (i) all bona fide offers are withdrawn, the owner may do any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Sell the property to any buyer.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Extend the affordability restrictions for any period of time.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Maintain ownership of the property and allow the expiration, termination, or prepayment to occur at the end of the notice periods specified in Section 65863.10.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
This section does not apply to any of the following: a government taking by eminent domain or negotiated purchase; a forced sale pursuant to a foreclosure; a transfer by gift, devise, or operation of law; a sale to a person who would be included within the table of descent and distribution if there were to be a death intestate of an owner; or an owner who certifies, under penalty of perjury, the existence of a financial emergency during the period covered by the offer to purchase requiring immediate access to the proceeds of the sale of the development. The certification shall be made pursuant to subdivision (q).
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
Prior to the close of escrow, an
owner selling, leasing, or otherwise disposing of a development to a purchaser who does not qualify under subdivision (e) shall certify under penalty of perjury that the owner has complied with all provisions of this section and Section 65863.10. This certification shall be recorded and shall contain a legal description of the property, shall be indexed to the name of the owner as grantor, and may be relied upon by good faith purchasers and encumbrances for value and without notice of a failure to comply with the provisions of this section.
</html:p>
<html:p>A person or entity acting solely in the capacity of an escrow agent for the transfer of real property subject to this section shall not be liable for any failure to comply with this section unless the escrow agent either had actual knowledge of the requirements of this section or acted contrary to written escrow instructions concerning the provisions of this section.</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
The department shall undertake the following responsibilities and duties:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Maintain a form containing a summary of rights and obligations under this section and make that information available to owners of assisted housing developments as well as to tenant associations, local nonprofit organizations, regional or national nonprofit organizations, public agencies, and other entities with an interest in preserving the state’s subsidized housing.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Compile, maintain, and update a list of entities in subdivision (d) that have either contacted the department with an expressed interest in purchasing a development in the subject area or have been identified by the department as potentially having an interest in participating in a right-of-first-refusal program. The department shall publicize the existence of the list statewide. Upon receipt of a notice of intent
under Section 65863.10, the department shall make the list available to the owner proposing the termination, prepayment, or removal of governmental assistance or to the owner of an assisted housing development in which there will be the expiration of rental restrictions. If the department does not make the list available at any time, the owner shall only be required to send a written copy of the opportunity to submit an offer to purchase notice to the qualified entities which directly contact the owner and to post a copy of the notice in the common area pursuant to subdivision (g).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Monitor compliance with this section and Sections 65863.10 and 65863.13 by owners of assisted housing developments and, notwithstanding Section 10231.5, provide a report to the Legislature, which may be combined with the report submitted pursuant to Section 50408 of the Health and Safety Code, on or before December 31 of each year,
containing information for the previous fiscal year, except that the report due December 31, 2022, shall include information for the 18 months from January 1, 2021, to June 30, 2022, inclusive, that includes, but is not limited to, the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The number of properties and rental units subject to this section and Sections 65863.10 and 65863.13.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The number of properties and units that did any of the following:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
Complied with the requirements of this section and Sections 65863.10 and 65863.13.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
Failed to comply with the requirements of this section and Sections 65863.10 and 65863.13.
</html:p>
<html:p>
(III)
<html:span class="EnSpace"/>
Were offered for sale and therefore subject to the purchase right provisions of this
section.
</html:p>
<html:p>
(IV)
<html:span class="EnSpace"/>
Were offered for sale and complied with the purchase right provisions of this section and the outcomes of the purchase right actions, including whether the property changed hands, to whom, and with what impact on affordability protections.
</html:p>
<html:p>
(V)
<html:span class="EnSpace"/>
Were offered for sale and failed to comply with the purchase right provisions of this section, the reason for their failure to comply, and the impact of their failure to comply on the affordability protections and the tenants who were residing in the property at the time of the failure.
</html:p>
<html:p>
(VI)
<html:span class="EnSpace"/>
Claimed exemptions from the obligations of this section pursuant to Section 65863.13 by category of reason for exemption.
</html:p>
<html:p>
(VII)
<html:span class="EnSpace"/>
Claimed exemptions from the obligations of this section and lost affordability
protections and the impact on the tenants of the loss of the affordability protections.
</html:p>
<html:p>
(VIII)
<html:span class="EnSpace"/>
Were not offered for sale and complied with the requirement to properly execute and record a declaration.
</html:p>
<html:p>
(IX)
<html:span class="EnSpace"/>
Were not for sale and failed to comply with the requirement to properly execute and record a declaration.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
To facilitate the department’s compliance monitoring, owners of assisted housing developments in which at least 5 percent of the units on the property are subject to affordability restrictions or a rent or mortgage subsidy contract shall certify compliance with this section and Sections 65863.10 and 65863.13 to the department annually, under penalty of perjury, in a form as required by the department.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The department may request
information, in a form prescribed by the department, from counties and cities that provide assistance to owners of projects as described in subparagraph (N) of paragraph (3) of subdivision (a) of Section 65863.10.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
The report required to be submitted pursuant to this paragraph shall be submitted in compliance with Section 9795.
</html:p>
<html:p>
(4)
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Refer violations of this section and Sections 65863.10 and 65863.13 to the Attorney General for appropriate enforcement action.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The provisions of this section may be enforced either in law or in equity by any affected tenant, as defined in paragraph (2) of subdivision (a) of Section 65863.10, any qualified entity entitled to exercise the opportunity to purchase and right of first refusal under this section, a group of affected tenants that meets the
requirements of a legitimate tenant organization, as defined in federal regulations, a tenant association, as defined in paragraph (4) of subdivision (a) of Section 65863.11, or any affected public entity that has been adversely affected by an owner’s failure to comply with this section. In any judicial action brought pursuant to this subdivision, the court may waive any bond requirement and may award attorney’s fees and costs to a prevailing plaintiff.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An owner may rely on the statements, claims, or representations of any person or entity that the person or entity is a qualified entity as specified in subdivision (d), unless the owner has actual knowledge that the purchaser is not a qualified entity.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the person or entity is not an entity as specified in subdivision (d), that fact, in the absence of actual knowledge as described in paragraph (2), shall not give rise to
any claim against the owner for a violation of this section.
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
It is the intent of the Legislature that the provisions of this section are in addition to, but not preemptive of, applicable federal laws governing the sale or other disposition of a development that would result in either (1) a discontinuance of its use as an assisted housing development or (2) the termination or expiration of any low-income use restrictions that apply to the development.
</html:p>
<html:p>
(q)
<html:span class="EnSpace"/>
Except as provided in subparagraph (B) of paragraph (3) of subdivision (n), this section does not apply to either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An assisted housing development receiving government assistance as described in clauses (iv) to (viii), inclusive, of subparagraph (N) of paragraph (3) of subdivision (a) of Section 65863.10 in which 30 percent or less of the
units are subject to affordability restrictions.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An assisted housing development in which 30 percent or less of the units are subject to affordability restrictions that was developed in compliance with a local ordinance, charter amendment, specific plan, resolution, or other land use policy or regulation requiring that a housing development contain a fixed percentage of units affordable to extremely low, very low, low-, or moderate-income households.
</html:p>
<html:p>
(r)
<html:span class="EnSpace"/>
The department shall comply with any obligations under this section through the use of standards, forms, and definitions adopted by the department. The department may review, adopt, amend, and repeal the standards, forms, or definitions to implement this section. Any standards, forms, or definitions adopted to implement this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2.
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<ns0:Num>SEC. 5.</ns0:Num>
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Section 50053 of the
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is amended to read:
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<ns0:Num>50053.</ns0:Num>
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(a)
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For any rental housing development that receives assistance prior to January 1, 1991, and a condition of that assistance is compliance with this section, “affordable rent” with respect to lower income households shall not exceed the percentage of the gross income of the occupant person or household established by regulation of the department that shall not be less than 15 percent of gross income nor exceed 25 percent of gross income.
</html:p>
<html:p>
(b)
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(1)
<html:span class="EnSpace"/>
Except as provided in paragraph (2), for any rental housing development that receives assistance on or after January 1, 1991, and a condition of that assistance is compliance with this section, “affordable rent,” including a reasonable utility allowance, shall not exceed:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
For acutely low income households, as defined in Section 50063.5, the product of 30 percent times 15 percent of the area median income adjusted for family size appropriate for the unit.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
This subparagraph shall apply to a lease entered into on or after January 1, 2022.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For extremely low income households, the product of 30 percent times 30 percent of the area median income adjusted for family size appropriate for the unit.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
For very low income households, the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
For lower income households whose gross incomes exceed the maximum income
for very low income households, the product of 30 percent times 60 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those lower income households with gross incomes that exceed 60 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
For moderate-income households, the product of 30 percent times 110 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those moderate-income households whose gross incomes exceed 110 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), for a rental housing development described in paragraph (1) that dedicates at least 80 percent of units, exclusive of a manager’s unit or units, to lower income households, “affordable rent,” including a reasonable utility allowance, shall not exceed an amount consistent with the maximum rent levels for lower income households, as those rents and incomes are determined by the California Tax Credit Allocation Committee, if the rental housing development receives an award on or after January 1, 2025, of any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Federal or state low-income housing tax credits.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Tax-exempt private activity bonds or general obligation bonds.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Local, state, or federal loans or grants that utilize rent and income limits
determined by the California Tax Credit Allocation Committee.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The department’s regulation shall permit alternative percentages of income for agency-assisted rental and cooperative housing developments pursuant to regulations adopted under subdivision (f) of Section 50462. The department shall, by regulation, adopt criteria defining and providing for determination of gross income, adjustments for family size appropriate to the unit, and rent for purposes of this section. These regulations may provide alternative criteria, where necessary, to be consistent with pertinent federal statutes and regulations governing federally assisted rental and cooperative housing. The agency may, by regulation, adopt alternative criteria, and pursuant to subdivision (f) of Section 50462, alternative percentages of income may be adopted for agency-assisted housing developments.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of
this section, “area median income” and “moderate-income household” shall have the same meaning as provided in Section 50093.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For purposes of this section, and provided there are no pertinent federal or state statutes or regulations applicable to a project or program that are in conflict with this definition, “adjusted for family size appropriate to the unit” shall mean for a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit. If there is a conflict, the applicable state or federal statutes or regulations for the project of program shall apply.
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<ns0:Num>SEC. 6.</ns0:Num>
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Section 50710.7 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_97F29280-DF98-450E-B90E-D3529CC753BA">
<ns0:Num>50710.7.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
By December 31, 2028, the department shall, following the completion of the report under Section 50710.6, coordinate with the Department of General Services and the Department of Food and Agriculture to identify available excess sites in proximity to migrant farm labor centers. For the purposes of this section, “available excess sites” refers to those sites identified pursuant to Section 14684.3 of the Government Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The department shall, in collaboration with the Department of General Services, the California Housing Finance Agency, and the Department of Food and Agriculture, prioritize the locations identified in subdivision (a) for the development of permanent farmworker housing, with the highest prioritization to the areas with the greatest need for
permanent farmworker housing, as identified in the report under Section 50710.6.
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<ns0:Num>SEC. 7.</ns0:Num>
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<html:p>Section 1.5 of this bill incorporates amendments to Section 1946.2 of the Civil Code proposed by both this bill and SB 522. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2026, (2) each bill amends Section 1946.2 of the Civil Code, and (3) this bill is enacted after SB 522, in which case Section 1 of this bill shall not become operative.</html:p>
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<ns0:Num>SEC. 8.</ns0:Num>
<ns0:Content>
<html:p>If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.</html:p>
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