CA Rent Control and COVID relief

During the COVID epidemic, the CA government passed a bill that severly restrict the ability of landlords to evict tenants (“Tenants Relief Act”)

This is a summary of the legislation largely from the tenant’s perspective, here is another summary from a landlord perspective as well.

The complete text of SB91 can be read here, here are the updated version of section 1179 of the CA civil code.

A few years ago, the CA Legislature has passed AB1482  – The Tenant Protection Act of 2019.  ***

This is a nightmare for a lot of investors. The dreaded rent control bill which puts a cap on rent increases annually to 5% plus CPI or 10% whichever is lower. 

It also makes it more difficult to evict tenants. Since this is a statewide bill, it would apply on all areas not previously governed by any rent control, such as Elk Grove.. 

But don’t panic yet, because the bill does not apply to Single Family Residences and Condos and newer multi family buildings (less than 15 years old).

Please contact James Tan at 916-230-5250 or email BethanyRealEstate@Gmail.com for further information as to what investors should do next 

These are the exemptions from the bill, click here to see the whole text .

More information can be obtained from Cal RHA and assembly member David Chiu’s website.

This section shall not apply to the following types of residential real properties or residential circumstances:

(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.

(2) 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.

(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.

(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.

(5) Single-family owner-occupied residences, including 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.

(6) A duplex 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.

(7) Housing that has been issued a certificate of occupancy within the previous 15 years.

(8) Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:

(A) The owner is not any of the following:

(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.

(ii) A corporation.

(iii) A limited liability company in which at least one member is a corporation.

(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:

“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.”

 

*** This page is provided for your information only. Bethany Real Estate and James Tan do not guarantee and are not responsible for the accuracy of its contents. Buyers and Investors should do their own research and due diligence prior to making any kind of investment. 


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