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News & Events

By Nick Mason 24 Jan, 2024
The legislative session for 2023 has come to a close and the State of California has released a number of new laws for Landlords, Property Managers and Tenants. Information about California's new laws for 2024 which will affect California residential landlords is below. This article only includes statewide laws, it does not include information about new local ordinances. Landlord/Tenant Laws & Trends SB 567 Revisions to Statewide Rent Control & Eviction Control – The Tenant Protection Act of 2019 (TPA) that became effective in 2020, was clarified as a result of AB 3088 but will have some significant amendments as a result of SB 567. As of April 1, 2024, the TPA will include aspects related to mobile homes, provide further regulations to no fault just cause terminations based upon owner occupancy move in and substantial remodel. The law also provides a private right of action in civil court for three times the actual damages in addition to punitive damages against a landlord who seeks to recover possession in material violation of the law. If a landlord demands, accepts, receives or retains rent in excess of the amount permitted under the TPA, they could be liable to the tenant in a civil action for the excess. Landlords can also be liable for reasonable attorney's fees and costs and potentially treble damages if the violation is found willful, with oppression, fraud or malice. It would also permit the Attorney General, as well as local government attorneys, to bring an action against a landlord to enforce the TPA. For reference, the TPA limits the amount a landlord can increase a tenant's rent is 5% + CPI. SB 567 also amended no fault just cause termination of occupancy for landlords to occupy a property. Landlords can no longer give tenants a notice to vacate when there is another vacant unit on the property. If a landlord serves a Notice to Vacate to a tenant so that they or a family member may move into the property, the notice must contain the names of the person(s) moving into the property as well as their relationship to the landlord. The occupant that inhabits the property must move in within 90 days and remain in possession of the property for 12 months. If they do not, the property goes back to the tenant at the same rental rate and the landlord must reimburse the tenant for moving costs. SB 567 also clarified what is considered a substantial renovation for no fault just cause termination of occupancy. The renovations must render the property to be uninhabital and the renovations must take at minimum 30 consecutive days to complete. Regulations to written notice of termination were also included. The written notice must include the following: (1) statutory language of rights to the tenant, (2) description of the substantial remodel and the expected duration and (3) notice of opportunity to re-rent the property. Failure to do so could cause landlords to be liable in a civil action for actual damages, reasonable attorney's fees and costs with the court's discretion, treble damages if the violation is found willful, with oppression, fraud or malice and punitive damages. The Attorney General, city attorney or county counsel may also seek injunctive relief. AB 12 Security Deposits – Beginning July 1, 2024, a landlord cannot demand or receive security deposits in an amount that exceeds one month of rent paid on or before the initial occupancy. A landlord is permitted to have up to two months security deposit, if they meet both of the following requirements: (1) the landlord is a natural person or a limited liability company in which all members are natural persons and (2) landlord owns no more than two residential rental properties that collectively include no more than four dwelling units offered for rent. Security deposits for service members are always limited to the one-month maximum deposit and service members cannot be discriminated against because of this protection. The month limitation on security deposits will not apply to any deposits collected or demanded prior to the effective date of July 1, 2024. AB 1764 Application Receipts – AB 1764, among other things, permits a landlord to provide the receipt for costs related to the application fee via email upon agreement between the landlord and applicant. Previously the code required a receipt be delivered by mail only. SB 712 Personal Micromobility Devices – A tenant will be permitted to own, store, and recharge a micromobility device within the residential unit. The micromobility device includes devices that are powered by physical exertion of the rider or electric motor that is designed to transport one individual or an adult with up to three minors. Landlords are permitted to prohibit the repair or maintenance within the unit as well as requiring the tenant to comply with the fire code. A landlord may prohibit the storage of micromobility devices within the unit if the landlord provides secure long term storage for the device on site. A landlord may limit the number of micromobility devices to one per resident, including minors. SB 602 Trespass of Real Property – Owners of real property have previously been permitted to ask for assistance in removing a person who is trespassing on real property upon written request. Previously, a single written request was permitted to last 30 days. As of January 1, 2024, a written request can be extended to last up to twelve months under certain circumstances, unless a local ordinance provides for a shorter time period. The written notice must be notarized. AB 690 Legal Document and Unlawful Detainer Assistants – Persons who assist individuals in preparing or completing legal documents must be registered by the county clerk in the area in which the assistant has its primary place of business. This law extends those regulations for legal document assistants and unlawful detainer assistances from 2024 to 2030. AB 1317 Unbundling Parking – Properties with 16 or more units that are issued their certificate of occupancy on or after January 1, 2025, and located in one of the following counties: Alameda, Fresno, Los Angeles, Riverside, Sacramento, San Bernardino, San Joaquin, Santa Clara, Shasta or Ventura must unbundle the parking from the base rent for any unit. This means that there should be a separate contract provision/addendum for a tenant who wishes to have a parking space. If a tenant fails to pay the parking rent for this space, the remedy would be to remove the permission for the space but would not be a violation that would permit eviction. Exceptions to this law are properties where a garage is functionally a part of the property/unit such as a townhouse, properties that are 100% restricted by deed for affordable housing, properties that receive low-income tax credits, and properties financed with tax exempt bonds through CalFHA. AB 1485 Attorney General as Intervener – AB 1485 gives the Department of Justice and the California Attorney General an unconditional right to intervene in any action addressing the violation of the Planning and Zoning Law. Fair Housing and ADA Laws and Trends SB 267 Alternate Option From Credit Reports for Housing Subsidies – Where an applicant receives a government subsidy it is unlawful to use a person’s credit history as part of the application process without offering the applicant the option to provide lawful, verifiable alternative evidence of the applicant’s ability to pay the portion of the rent to paid by the tenant. This could include, but is not limited to, government benefit payment, payment record, or bank statements. Where an applicant elects to provide alternative verification of ability to pay the rent instead of allowing the landlord to run a credit report, the landlord shall provide the applicant time to provide the information and reasonably consider that information in lieu of credit history. AB 1620 Transferring Units Based Upon Disability – Fair housing laws already allow a tenant with a disability to transfer to a comparable unit at the same rental rate based upon a reasonable accommodation request. AB 1620 further provides a similar requirement for any tenancy subject to local rent control. A tenant who has a permanent disability related to mobility should be permitted to move to a comparable or smaller unit on an accessible floor of the property under certain conditions, including, when the tenant is not subject to eviction for nonpayment of rent. AB 1418 Local Regulations and Criminal Background – AB 1418 adds to the Government Code prohibiting any local government from imposing a penalty against residents or landlords as a consequence of summoning law enforcement. It also prohibits a local government from requiring that a landlord evict a tenant for criminal convictions, or for having contact with law enforcement, and prohibits requiring a landlord to conduct a criminal background check on a tenant or prospective tenant. AB 1418 also prohibits local governments from having programs that: (1) Impose or threaten to impose a penalty solely because of contact with law enforcement. (2) Require or encourage a landlord to: (a) evict or penalize a tenant because of the tenant's association with another tenant or household member who has had contact with law enforcement or has a criminal conviction (b) evict or penalize a tenant because of the tenant's alleged unlawful conduct or arrest (c) have a lease provision that provides grounds for eviction in conflict with state or federal law (d) perform a criminal background check of a tenant or a prospective tenant. (3) Define nuissance as contact with a law enforcement agency or request for emergency assistance. (4) Require a tenant to obtain a certificate of occupancy as a condition of tenancy. (5) Establish, maintain or promote a registry of tenants for the purpose of discouraging a landlord from renting to a tenant on the registry. AB 248 Disability Language – The Dignity for All Act makes non-substantive language corrections in the Welfare Code to remove phrases like “mentally retarded persons” “mentally retarded children” “retardation” and “handicap”. The code changes the phrases to “individuals with intellectual or developmental disabilities,” “children with intellectual or developmental disabilities” and “persons with disabilities” or “impaired”. Where the law changes its phrasing, landlords should work to mirror those language changes to avoid allegations of discrimination. AB 1130 Substance Abuse Disorder – AB 1130 changes references of the term “addict” under the California Uniform Controlled Substances Act to the phrase “person with a substance use disorder”. SB 748 Notice of Disability Access Information – On and after January 1, 2024 each city, county, should provide to any applicant for a business license a separate minimum 8 ½ x 11 sheet with a statutory statement in 28-point font providing information about ADA disclosure and information on how providers can ensure equal access to businesses. This disclosure provides information about the Certified Access Specialist (CASp) program in an effort to make sure businesses are ADA compliant and remove barriers to access under the ADA. Building Requirements AB 70 Trauma Kits – Certain buildings (including residential buildings of occupancy of over 200 but excluding single family and multi-family apartment homes) built or renovated on or after January 1, 2023, are required to have at least six trauma kits located in easily accessible containers next to an automated external defibrillator (AED). Reminder that AEDs have been required for buildings renovated or remodeled on or after January 1, 2020 by SB 1397 passed in the 2018 session. These trauma kits must be inspected every three years and if management has reason to believe any of the kits have been used, they will replace any materials, supplies, or equipment that have been used as necessary. At least once per year, notify tenants in the building of the location of the trauma kits and provide information to tenants regarding training in use of the kit. Property managers may direct tenants to the Stop the Bleed national awareness campaign of the United States Department of Homeland Security or the American College of Surgeons Committee on Trauma, the American Red Cross, the Committee for Tactical Emergency Casualty Care, or any other partner of the United States Department of Defense or reputable providers. The property manager is only required to identify one potential source of training but may choose to identify multiple sources of training. AB 548 State Housing Law: Inspections – AB 548 adds new sections to the Health and Safety Code that will ask enforcement agencies to create policies and procedures by January 1, 2025, that will permit housing inspectors to expand the initial inspection of a unit to other areas of a multi-unit complex if they determine that a violation of the State Housing Law detected in one unit may affect other areas of the property. AB 1033 Accessory Dwelling Units: Separate Sale – State Government Code has been amended to allow local agencies to adopt new ordinances that would permit a separate conveyance of a primary dwelling unit from an accessory dwelling unit which is converted to a condominium. The ordinance would have several requirements regarding the conversion as well as the requirement that the lienholders provide consent. The potential ability to have a separately alienable unit may have implications for rent control and eviction under state and local laws. Collections AB 1119 Enforcement of Judgments – Judgment debtor exams are a collection tool to obtain information on where a debt collector may locate assets belonging to a debtor. AB 1119 amends California law with respect to judgment debtor exams. The law extends the required notice to the debtor from 10 days’ notice before the hearing to 30 days’ notice. SB 71 Increased Jurisdictional Limits – SB 71 increases the jurisdictional limit of a limited civil case from $25,000 to a cap of $35,000. The jurisdictional limit for small claims also increased from $10,000 to $12,500 for a natural person and increases the limit for corporations from $5,000 to $6,250. Real Estate License Laws AB 1280 Disclosure amendments – California law requires disclosures by the seller of a single-family residence on a specified statement to the buyer. This statement is amended as of January 1, 2024, to also include specifics as to whether the property is in a high or very high fire severity zone. Sellers and their agents need to make sure the disclosure has been updated to include this information. AB 968 SFR Disclosures – When a seller of a single family residence accepts an offer from a buyer on or after July 1, 2024, the seller must disclose both: 1) any room additions, structural modifications, alterations or repairs made to the property since title was transferred to the seller that were performed by a contractor and 2) the name of each contractor who performed the work in excess of $500.
02 Jan, 2024
Happy New Year!!! Our office will be closed to in observance of the holiday. We will resume normal business hours on January 2nd at 9 am.
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