8/8/2023
1 AB 1482 –STATE TENANT PROTECTIONS
goldfarb lipman attorneys
CITY OF BURBANK
Karen Tiedemann
[email protected]
Goldfarb & Lipman LLP
Oakland Los Angeles San Diego
510-836-6336 213-627-6336 619-239-6336
AB 1482 STUDY SESSION
Pandemic eviction protections imposed by the State or County have expired resulting in evictions filings for various reasons including nonpayment and substantial rehabilitation
AB 1482 provides eviction protections but no clear enforcement mechanisms. City currently has no authority to enforce AB 1482 City Landlord-Tenant Commission has limited authority and no authority under AB 1482
Community members have voiced concerns regarding impact of evictions and application of AB 1482
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2 AB 1482 STUDY SESSION-
City Renter’s Relocation Program-
City provided funding for relocation assistance
Available to low- and moderate-Income residents
If evicted for a no-fault eviction (i.e. owner move in, substantial rehabilitation) Limited pool of funds ($500,000)
Funds can be used for security deposits, payment of fees, moving expense and rental assistance.
Assistance limited to
2x Median rent for Moderate Income Households
3x Median rent for extremely low, very low- and low-income households 3 OVERVIEW
Burbank Today
Tenant Protection Act of 2019
Policy Options
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3 Burbank Today
Total population (2023): 105,357
58.2% of units in the City were
occupied by renters
56% of those units were
occupied by low- or moderate-
income households
51.2% of units in the City were
multi-family; 48.5% were single-
family homes
18,280 of the 23,022 multi-
family units, or 79%, were in
buildings of 5+ units
91.8% of the rental units in the
City were built before 1995
5 Sources: Burbank 2021-2029 Housing Element American Community Survey (2021),.City of Burbank California Elections Code Section 9212 Report on Impact of an “Initiative to Add New Chapter to the City of Burbank Municipal Code Establishing a Rent Stabilization and Tenant Protection Program in the City. September 2020; and Economic Development website.
Average Rental Housing Costs
Average rental housing prices
(2023):
Studio: $1,903
1-bedroom: $2,263
2-bedroom: $2,900
3-bedroom: $4,000
56.4% of the renter households
were rent burdened in 2020
31% of renter households were
severely rent burdened
meaning paying more than
50% of their income toward
housing costs
6 Sources: Burbank 2021-2029 Housing Element., City
of Burbank Economic Development Update 2023
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TENANT PROTECTION ACT OF 2019
TENANT PROTECTION ACT OF 2019 (“AB 1482”)
RENT CAP: Provides an annual rent increase cap (5% + Consumer Price Index), or 10%, whichever is lower
Rent cannot be increased more than twice in one year, and the two increases cannot exceed the Annual Rent Cap
Under the TPA, the rent increases for qualified tenants in Burbank in 2023 are:
Rent Increases imposed prior to August 1, 2023 are limited to 10%, Rent increases imposed after August 1, 2023 are limited to 8.7% 8 7
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5 TENANT PROTECTION ACT OF 2019 (“AB 1482”)
Excluded housing:
New housing built within the past 15 years;
Housing with local rent control;
Housing restricted by deed restriction with a government agency as affordable housing (Housing subject to rental subsidies may be covered);
Single-family homes or condos with no corporate ownership; Duplexes, if the owner lives in one of the units;
Dormitories owned by educational entities;
Mobile homes and RVs in mobilehome parks that are owned by the occupant 9 TENANT PROTECTION ACT, CONT’D.
JUST CAUSE: Provides just cause protections to tenants who have resided in their unit for at least 12 months (or 24 months if a new tenant is added to the rental agreement)
Just causes are divided into at-fault evictions (nonpayment of rent, breach of lease, etc.) and no-fault evictions (owner move-in, substantial reno, etc.) For no-fault evictions, landlords must provide relocation assistance in the amount of one-month’s rent. Relocation payment must be made within 15 days of the no-fault termination notice. Alternatively, landlord could waive last month’s rent.
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6 TENANT PROTECTION ACT, CONT’D.
Exceptions to just cause provisions of the Tenant Protection Act:
New housing built within the past 15 years;
Government-subsidized or BMR housing;
Single-family homes or condos with no corporate ownership; Mobilehomes not owned by management of a mobilehome park; Owner-occupied single-family homes with no more than 2 tenants; Duplexes, if owner lives in one of the units;
short-term stay hotels;
Non-profit hospitals, religious facilities, care for the elderly, and adult residential facilities;
Tenants who share bathroom and kitchen with owner in owner’s home; K-12 or college dormitories
11 TENANT PROTECTION ACT, CONT’D.
The Tenant Protection Act DOES NOT prohibit a city from passing a more protective rent control or just cause for eviction ordinance, or from passing laws that supplement the protections provided by the Act. See Cal. Civ. Code § 1946.2(g)(1)(B); Cal. Civ. Code § 1947.12(k)(2)-(3).
Local ordinances are subject to limitations in other state laws, such as Costa-Hawkins Act, Ellis Act, and unlawful detainer statutes 12 11
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7 PENDING LEGISLATION AMENDING AB 1482
SB 567
Owner Move ins-
Require owner or owner relative to move in within 90 days and reside in unit for 12 month
Tenant right to move back into unit if owner does not move in Defines owner eligible to terminate tenancy for owner move – must have 51% ownership or 100% of the unit owned by family members
Substantial Rehabilitation
Must have permits
Work must require the tenant to move in order to complete work Tenant right to re-occupy
13 LEGISLATION AMENDMENT AB 1482
SB 567
Actual damages and punitive damages may be available to tenants if landlord willfully, or with fraud, malice or oppression violates the law Grants the Attorney General, City Attorney and County Counsel right to seek injunctive relief
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LOCAL TENANT PROTECTION
OPTIONS
LOCAL POLICY OPTION
Goal of Local Policy Options
Promote tenant stability
Increase rental market stability
Program Options
Adopt and build on Tenant Protection Act
Supplemental Measures.
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9 CONSIDERATIONS WITH POLICY OPTIONS
Enforceability
Administrative Burden
Costs
Effectiveness
17 STRENGTHENING JUST CAUSE PROTECTIONS
Strengthening Just Cause Provisions
Tenant Relocation Assistance
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10 STRENGTHENING JUST CAUSE PROTECTIONS
Expand coverage of Just Cause Protections to all tenants without the AB 1482 12 month waiting period
Apply Just Cause Protections to units regardless of when built rather than 15 years after issuance of Certificate of Occupancy Expand just causes
Nonpayment evictions prohibited until rent owed reaches a certain threshold.
19 STRENGTHENING JUST CAUSE PROTECTIONS
RIGHT TO LEASE
AB 1482 just cause provisions are not applicable until tenant has resided in premises for 12 months
Adopt a one-year lease ordinance which requires landlords to offer tenants a 12- month lease at the outset of tenancy and upon expiration of the prior lease agreement
Failure to offer a 12-month lease constitutes defense to unlawful detainer Ensures tenant cannot be evicted before just cause protections become effective 20 19
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11 STRENGTHENING JUST CAUSE PROTECTIONS
Address “substantial renovations” by requiring landlords to obtain permits and/or show need to comply with code enforcement order before undertaking
Address “owner move-in” by providing tenants with remedies if landlord (or qualified family members) does not move in within and/or does not continue to reside in unit for certain amount of time
SB 567 (2023) would address some of the issues in AB 1482 21 TENANT RELOCATION ASSISTANCE
Upfront costs (first and last months’ rent plus security deposit) are barrier to finding new housing
Require greater relocation assistance payments for no-fault evictions 2-3 months of rent plus additional months for “special circumstances” Assistance in finding a new home –subscription to a rental listing service Some jurisdictions also require actual moving expenses Base on “fair market” rent for unit size, rather than current effective rent 22 21
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12 ENACT RENT STABILIZATION
Typical features of rent stabilization include:
Limitation on the amount of rent increases
Limitation on the number of rent increases per year
Rollback of rent increases imposed prior to enactment of policy Petition process for unlawful rent, including decrease in “housing services” or failure to maintain premises
Must provide landlords with “fair rate of return”
Petition process for landlords to request rent increases greater than the limit where necessary to receive “fair rate to return” 23 LIMITATIONS ON RENT STABILIZATION & JUST CAUSE
Costa-Hawkins Act
Single-family home, condo and new construction exemptions to rent control Vacancy decontrol
Ellis Act
Cannot prohibit a landlord from going out of rental business Unlawful Detainer Statutes
Cannot require longer noticing periods than Code of Civil Procedure proscribes
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13 IMPLEMENTATION AND ENFORCEMENT
Who implements the law? Who has enforcement rights?
Rent Stabilization programs are typically developed and implemented by an appointed/elected rent board
Additional Just Cause protections may be tenant enforced Landlords and tenants are provided with private right of action to enforce the measures
City Attorney can sue
25 FUNDING
How will you fund the program?
General Fund
Annual fees imposed on landlords
Linkage fee
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14 OTHER SUPPLEMENTAL POLICIES
Landlord-Tenant Mediation Services
Tenant Protection Ordinance
27 LANDLORD-TENANT MEDIATION SERVICES
Provides landlord-tenant and neighbor mediation services. Cities can either:
Contract with local agency and/or non-profit that already provides these services; Create its own city-run program
Cases suitable for landlord-tenant mediation include:
A return of security deposit disagreement between tenant and landlord Rent increase or repayment negotiations between a tenant and landlord Negotiations related to repairs and maintenance of a rental unit Renegotiation of rental leases or provisions
Successful Mediation programs typically rely upon trained mediators with experience in landlord/tenant matters.
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15 TENANT PROTECTION ORDINANCE
Some jurisdictions have passed Tenant Protection Ordinances to provide supplemental protections
Tenant protection ordinances may include, but are not limited to, the following:
Tenants’ right to organize and distribute literature
Anti-tenant harassment and anti-retaliation provisions Temporary and permanent relocation benefits
Anti-discrimination provisions, including for students and minor children 29 goldfarb lipman attorneys
QUESTIONS?
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