California Tenant Protection Act (AB1482)
The California Tenant Protection Act offers tenant protections statewide. It sets limits on rent increases and protection against certain types of evictions.
Key provisions
Rent Control
Establishes an annual rent cap of 5% current rent plus the local rate of inflation, or 10% whichever is lower. Rent can be increased up to 2 times per year, but can not add up to more than the 5% plus the local rate of inflation per year.
Who is Exempt From Rent Control?
Certain properties are exempt from The Tenant Protection Act Rent Control provision. They are single family homes, as long as the owner is not a corporation, real estate investment trust (REIT) or an LLC with a corporate member. Properties that are 15 years or newer (based on certificate of occupancy). Duplexes where one side is occupied by the owner.
Just Cause Evictions
Evictions are looked at as “at-fault cause” or “no-fault cause” under California’s Tenant Protection Act.
At-fault just cause includes; non payment of rent, breach of a material term of lease, nuisance or criminal activity by the tenant on the property.
No-fault just cause includes; owner or immediate family (spouse, domestic partner, children, grandchildren, parents or grandparents) moving into the property, withdrawal of the unit from the rental market, or substantial renovation. Substantial renovation means the replacement or modification means any structural, plumbing, electrical, or mechanical system that requires a permit that cannot be completed accomplished in a safe manner with the tenant in place, and that requires the tenant to vacate the property for at least 30 days.
No-fault just cause relocation assistance
If a tenant is evicted due to a no-fault reason the landlord must provide relocation assistance by either paying by direct payment one month’s rent to the tenant or waive one month’s rent. The rent amount is determined by the date the notice to terminate was issued. 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.
Who is Exempt From Just Cause Evictions?
Single family homes, (not owned by corporation, REIT or LLC with a corporate member). Properties that are 15 years or newer (based on certificate of occupancy) Duplexes where on side is occupied by the owner. Housing accommodations where the tenant shares a bathroom or kitchen with an owner in their principal residence. Single family owner occupied home including a residence in which the owner/occupant rents or leases no more than 2 units or bedrooms, including, but not limited to an accessory dwelling unit.
In a later bill, SB 567, that went into effect April 1, 2024 clarified what would happen if a landlord does not follow the California Tenant Protection Act. The bill states “A landlord would be liable in a civil action to the tenant from whom those payments are demanded, accepted, received, or retained for certain relief, including, upon a showing that the owner has acted willfully or with oppression, fraud, or malice, damages up to 3 times the amount by which any payment demanded, accepted, received, or retained exceeds the maximum allowable rent. This bill would authorize the Attorney General and the city attorney or county counsel, within whose jurisdiction the residential property is located, to enforce the bill’s provisions and bring an action for injunctive relief, as specified.”
Properties in certain jurisdictions may be subject to local rent control or just cause evictions that also need to be complied with.
As always, there are nuances to both the bills and if you are in this situation you should seek legal counsel. To read the actual bill (AB1492) click here.
If you have any questions about the California Tenant Protection Act and how it might affect you, please reach out to us for all your Sacramento Area Property Management needs.