Note: The following is a general discussion on the specified topic or issue and may not be relied on as legal advice in any specific case or matter you encounter. You should review any applicable case, or matter with counsel experienced in this area of law and should not generally rely on the discussion in this Alert.
Date: September 25, 2019
To: All Scheer Law Group Clients and Affiliates
From: Spencer Scheer
Subject: State Wide CA Rent Control and Eviction Control.
By now many of you are aware that California has enacted state wide rent control. The following is a brief outline. All landlords and lenders should prepare. The good news is that you have until January 1, 2020 to do so.
SUMMARY OF LEGISLATION
The California legislature has passed legislation imposing statewide rent control in jurisdictions that do not already have local rent control. The governor has indicated that he will sign the legislation. Although the new legislation will not go into effect until January 1, 2020, actions taken now will impact landlords when the legislation becomes effective. Therefore, landlords need to understand the legislation now. Similarly, lenders who take possession of properties pursuant to foreclosures or deeds in lieu of foreclosure need to understand this legislation to avoid actions or inactions that may imperil their ability to sell those properties vacant
Although the legislation is complicated, it generally provides as follows:
· Annual rent increases will be limited to five percent plus the increase in the local consumer price index.
· The limitation on increases is retroactive to March 15, 2019. Thus, landlords cannot impose greater increases between now and the legislations effective date of January 1, 2020.
· Tenants in possession for one year or more may be evicted only for “just cause” and not because their lease has expired or the landlord wishes to terminate a month-to-month tenancy.
· Additional notice requirements have been imposed with respect to evictions for curable lease violations.
· Although many single family homes and condominiums may be exempt from the legislation, certain notice requirements must be met or the exemption will be lost.
As noted, the legislation is technical and landlords need to take action now to protect their rights once the legislation goes into effect on January 1, 2020. Please feel free to contact Jonathan Seigel at SLG at (415) 491-8900, Ext. 107 to discuss.
Please call or email if you have questions about this case.