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CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING AND COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: SEPTEMBER 10, 2024
FROM: HOUSING & COMMUNITY DEVELOPMENT
SUBJECT: STATE ENACTED TENANT PROTECTION LAWS
ATTACHMENT (Y/N): NO ITEM # 16
GOVERNMENT CODE § 84308 APPLIES: NO
ACTION:
Discussion on State enacted tenant protection laws and provide direction to staff, as necessary.
DISCUSSION:
In response to recent requests from Council Member Natalie Rubalcava and Mayor Pro Tem Norma Campos Kurtz, staff is providing information on State legislation adopted in the past few years that addresses rent increases and no-fault evictions in California.
State-Enacted Tenant Protections
California Assembly Bill 1482 (AB 1482)
AB 1482, also known as the California Tenant Protection Act of 2019 (TPA), is a statewide law that took effect on January 1, 2020, and is set to expire on January 1, 2030. The law aims to protect tenants from unreasonable rent increases and evictions by limiting rent increases and requiring landlords to have a "just cause" to terminate a tenancy.
Rent caps: The law limits the amount by which rent can be increased annually for eligible properties. Annual rent increases are capped at 5% plus the local Consumer Price Index (CPI), or 10%, whichever is lower. Starting August 2024, the maximum rent increase for both L.A. and Orange counties is 8.9%, a slight increase from last year's
8.8%.
Just cause evictions: The law also instituted a statewide “just cause” standard that requires property owners of covered properties to have a specific reason to terminate a tenancy, in most cases. For any tenant who has continuously and lawfully resided in a property for 12 months – or in units where a tenant has not met that requirement but where at least one tenant has resided there for 24 months – the law limits evictions to only those situations in which property owners have a “just cause” for eviction. “Just cause” includes “at-fault” reasons (for example, failing to pay rent or committing State Enacted Tenant Protection Laws
September 10, 2024
criminal activity at the residence) as well as “no-fault” reasons (for example, when the property owner or their family wish to move in, or the property owner wishes to demolish the unit). In “no-fault” tenancy terminations, the property owner is required to pay relocation expenses to the tenant. The relocation assistance must be the equivalent of one month's rent, and the property owner must pay the relocation assistance within 15 calendar days of the day the eviction notice is served.
The law does provide a few exceptions:
(1) Housing that has been issued a certificate of occupancy within the last 15 years is exempt from both the “just cause” requirement and the rent cap, and (2) Single-family homes except in cases where the home is owned by a real estate investment trust (REIT), a corporation, or an LLC in which one member is a corporation.
California Senate Bill 567 (SB 567)
SB 567, effective April 1, 2024, amends the TPA to strengthen its protections and create new remedies for violations. The new requirements specifically state who qualifies as an “owner” for the purposes of an owner move-in and set new residency requirements. The legislation also sets timeframes for how quickly the owner, or their family member must move in and how long they must reside in the unit. The intended occupant must reside in the unit for at least 12 months and must move in within 90 days after the tenant leaves.
Additionally, SB 567 adds new requirements governing cases involving substantial remodels. Owners who exercise this right must now include specific language in the termination notice regarding the work to be performed and the tenant’s right to reoccupy the property if the work isn’t commenced or completed. The new changes require copies of any required permits for the work to be provided with the notice to the tenant as well.
The legislation also requires the notice to tell the tenant that if they are interested in reoccupying the unit following the substantial remodel, the tenant must tell the owner and provide contact information to the owner. Lastly, SB 567 adds penalties against rental property owners who violate the law to ensure compliance.
Locally adopted Tenant Protection Ordinances (TPO)
In addition to State laws, local jurisdictions can adopt local ordinances. In Orange County, four cities have adopted local ordinances addressing tenant protection issues:
Buena Park, Costa Mesa. Laguna Beach and Santa Ana.
In most cases, Orange County cities enacted ordinances to expedite provisions contained in SB 567. For example, Buena Park and Costa Mesa enacted their local ordinances in July and November 2023, respectively, to accelerate provisions requiring property owners to obtain building or demolition permits before evicting tenants. These added requirements ensure that property owners are engaging in substantial work that necessitates the tenant to move and not simply conduct cosmetic work. In Buena Park, the local ordinance adds a $15,000 penalty if the property owners knowingly go through with an eviction without the intent to complete the renovation work. Similarly, Laguna Beach adopted a tenant protection ordinance that took effect on April 11, 2024. The State Enacted Tenant Protection Laws
September 10, 2024
ordinance mirrors SB 567; however, it adds the requirement that any local property owners who issue a “no-fault” eviction on or after January 1, 2023, must notify the City, as well as the tenant, when doing so. The penalty for violations of the Laguna Beach ordinance is set at $20,000, to be enforced by the tenant through a civil action.
The City of Santa Ana enacted “no-fault” eviction protections in their broader Rent Stabilization Ordinance (RSO) enacted in November 2022. Under the RSO, property owners must provide a relocation benefit equal to 3 months of rent, either through a rent waiver or a direct payment made within 15 days of issuing the notice. The RSO program in Santa Ana also includes rent caps, a requirement to register all rental units, and other notification requirements.
Enforcement
The TPA of 2019 (AB 1482) gives tenants the right to sue their landlord in state court if they believe the landlord has violated the law. However, the TPA doesn't have formal reporting procedures or enforcement mechanisms.
For tenants needing legal assistance, the State of California Department of Justice Office of the Attorney General (OAG), advises contacting an attorney or local advocacy organization for legal advice or help. The OAG has also developed Consumer Alert bulletins in multiple languages titled “Know Your Rights as a California Tenant”. These bulletins are now on the Housing Authority website as a resource document.
This year, the City Council and staff have been contacted regarding a few cases involving “just cause” evictions. To be responsive, the Housing and Community Development staff have attended tenant meetings, provided referrals to affordable housing options, and linked tenants with our Fair Housing contractor, the Fair Housing Council of Orange County (FHC-OC). However, the Department does not have a dedicated team for this purpose as eviction intervention has not, hereto date, been a function of any City department.
On May 22, 2024, the California Department of Justice (DOJ) issued a bulletin informing city attorneys and county counsel of their new enforcement authority under the TPA, effective April 1, 2024, per Senate Bill 567. The bulletin encourages local officials to investigate complaints and take measures to address misconduct but does not provide resources for this purpose.
In our research, staff did not find local jurisdictions that are engaged in the enforcement of these new State laws and, for those cities with their own locally adopted TPO’s, enforcement varied widely. Buena Park staff shared that while they have a local TPO, they rely primarily on the Fair Housing Council of Orange County to educate tenants and property owners on existing State and local laws. They do not have internal staff assigned to implement or enforce their ordinance and view these issues as civil matters to be handled in the courts. Laguna Beach is currently setting up the infrastructure for its program and, for now, is planning to primarily monitor compliance and partner with the FHC-OC for education purposes as well.
State Enacted Tenant Protection Laws
September 10, 2024
Conversely, both Costa Mesa and Santa Ana have added new staff and are taking active roles in monitoring and ensuring compliance of their respective programs. In Costa Mesa, to implement the program authorized by the Ordinance, the City Council approved the hiring of up to two (2) full-time Outreach Workers in the Neighborhood Improvement Division and, if needed, a Senior Planner in the Economic and Development Services Department to assist property owners and tenants through the “no-fault” eviction process and a Code Enforcement Officer. Further, the City Council appropriated $300,000 in American Rescue Plan Act (ARPA) funds to be awarded to local partners to provide supplemental case management and financial assistance to Costa Mesa households facing “no-fault” eviction. Additionally, the City Council allocated $250,000 in ARPA funds, if needed, to Jones & Mayer for any required legal advice.
For Santa Ana, the city staff responsible for administering the RSO includes the following: (1) Division Manager, (2) Housing Management Analysts, and (1) Senior Office Assistant. Additionally, Santa Ana is using RSG Consulting Services to augment staffing, which includes (2) Onsite Consultant Staff and (2-3) Offsite Consultant Staff as needed.
Other Resources
As referenced, the City has a contract with FHC-OC to provide education and enforcement of fair housing laws. These services are funded by federal Community Development Block Grant funds. While FHC-OC’s primary responsibility is the enforcement of State and Federal fair housing laws, they have assisted in providing tenant education and referrals to legal services. For legal assistance, both staff and FHC- OC make referrals to the Public Law Center or Community Legal Aid SoCal.
The California Apartment Association (CCA) is also a potential partner in increasing awareness of new State laws. CAA has worked with other jurisdictions to create mailers, dedicated local tenant rights websites, and is also actively educating landlords on new laws.
IMPACT ON BUDGET:
This report has no fiscal impact on the budget.
Respectfully submitted,
Grace Ruiz-Stepter
Director of Housing and Community Development