SUMMARY:
This bill limits rent-gouging in California by placing an upper limit on annual rent increases: 5% plus inflation. To prevent landlords from engaging in rent-gouging by evicting tenants, this bill also requires that a landlord have and state a just cause, as specified, in order to evict tenants who have occupied the premises for a year. Both the rent cap and the just cause provisions are subject to exemptions including, among others: housing built in the past 15 years, single family residences unless owned by a real estate trust or a corporation. This bill sunsets after ten years and does not preempt any local rent control or just cause ordinances.
The Senate Amendments:
1) Incorporate provisions requiring property owners to have a just cause to evict a tenant, as
follows:
a) Specify that these provisions are effective after 12 months of tenancy, or up to 24 months
in a circumstance where there is a change in the adult tenant;
b) Specify the specific kind of causes that are grounds for eviction, including "no-fault" and
"at-fault" evictions;
c) Require one month's rent relocation payment or rent waiver in the case of a no-fault just
cause eviction, such as owner move-in or capital improvements;
d) Specify that these provisions do not supersede any local just cause ordinance enacted
before September 1, 2019; and,
e) Specify that these provisions expire after 10 years.
2) Specify the units which are exempted from the rent cap and just cause provisions of this bill, including:
a) All single family homes not owned by a corporation or real estate investment trust;
b) All duplexes in which the owner occupies one of the units; and,
c) All units for 15 years after receiving their first certificate of occupancy.