A statewide rent control and just cause eviction bill, Assembly Bill 1482, was signed into law this week. Its major provisions include:
Rent Cap. A cap on annual rent increases set at 5% plus inflation, up to a maximum of 10% per year. This cap applies retroactively to all rent increases since March 15, 2019. Any rent increases initiated on or after that date will count toward the rent cap, and if over the maximum, will have to be rolled back effective January 1, 2020.
Just Cause. A prohibition on evictions without “just cause.” Landlords can no longer terminate month-to-month tenancies at will and may now only evict tenants for one of 15 specific reasons. The permissible reasons are divided into two categories: “at fault” and “no fault.”“At fault” termination is generally allowed when tenants have breached their lease and does not require the payment of relocation assistance. “At fault” reasons include non-payment of rent, nuisance, illegal use of the property, refusal to allow entry, and breach of a material term of the lease.“No fault” termination is allowed even when the tenant has not breached the lease and will require the landlord to pay one month’s rent in relocation assistance. “No fault” reasons include an owner or family member intending to occupy the property, withdrawal from the rental market, substantial remodeling and compliance with a government order to vacate the property,Exemptions. The law’s just cause eviction provisions only protect tenants who have been in possession for a year or more. Certain types of housing are exempt including:Single family homes and condos if:
Tenants have received notice of the exemption and,The owner is not a REIT, corporation, or LLC owned wholly or in part by a corporation
Homes built within the last 15 yearsOwner-occupied duplexesOwner-occupied single-family homes where two or fewer rooms are rented out (exempt from just cause but not rent cap)
Please see “Rent Cap and Just Cause Eviction” Q&A for more details