AB 1482 – Tenant Protection Act: Summary of Key Provisions
Gov. Gavin Newsom signed Assembly Bill 1482 on Oct. 8, 2019, enacting statewide rent control legislation in California, which will take effect on Jan. 1, 2020. Below is a summary of select key provisions.
1. ANNUAL CAP ON RENT INCREASES EXPLAINED
AB 1482 Caps Annual Rent Increases at 5% Plus Inflation. Effective Jan. 1, 2020, AB 1482 caps rent increases statewide at 5% plus local inflation per year for the next 10 years, unless lawmakers vote to extend it.
If you live in a city that does not already have a local rent control law, rent increases will be limited to 5%, plus local inflation, but can never exceed a total of 10%.
For example, if the inflation rate is 3.8%, a landlord could raise rent by as much as 8.8%. If the inflation rate is 6%, a landlord could only raise rent by as much as 10%.
2. JURISDICTIONS WITH LOCAL RENT CONTROL
AB 1482 Does Not Override Local Rent Control Rules. AB 1482 does not apply to housing regulated by local rent control ordinances and the Costa-Hawkins Rental Housing Act. Cities and counties can continue to pass local rent control laws consistent with Costa-Hawkins and set rent caps at any level they choose; however, they cannot affect the buildings and associated rent cap that fall under AB 1482.
3. BUILDINGS IMPACTED
AB 1482 Applies to Apartments and Other Multi-Family Buildings Containing Two Units or More. AB 1482 exempts single-family homes and condos, except when owned by a corporation, real estate investment trust, or limited liability corporation in which at least one member is a corporation.4 AB 1482 also exempts duplexes, when one of the units is occupied by the owner.
Thus, for example, apartments constructed in the future would not fall under the rent cap until fifteen (15) years after they’re built.
4. VACANCY DECONTROL
AB 1482 Does Not Apply to Vacant Units. AB 1482 does not apply to vacant units. Owners can continue to reset rents to market rate at vacancy, and then resume conforming to the annual cap of 5% plus inflation under AB 1482.
5. JUST CAUSE EVICTIONS
AB 1482 Prohibits Evictions Without Just Cause. For tenants that have lived in a unit for at least one year, AB 1482 prohibits evictions and non-renewals of leases without “just cause.”
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