California Rent Control Law AB 1482

New California Rent Control Law – Assembly Bill 1482

The new California rent control law AB 1482 is also known as the Tenant Protection Act of 2019. This law has made some significant changes to the state’s rent control policies.

Significant Changes Made By The New California Rent Control Law:

Max Rent Increases For Properties Subject to Rent Control

Rent increases are limited to 5% + annual inflation rate or Consumer Price Index (CPI) with a maximum of a 10% increase during a 12 month period.

For example, the CPI for California was 3.2 in 2019. Therefore, the maximum a landlord can raise rents in 2020 on properties subject to this rent control law is 8.2%. This is calculated by adding the CPI 3.2% to 5% which equals to 8.2%

Building Ages That Are Now Subject To Rent Control in California

The California rent control law now applies to buildings that have been constructed 15 years ago from any given time. Therefore, once a building becomes 15 years or older, the law begins to apply.

This will not apply to certain properties that are exempt from the law which we will go over below.

Properties That California’s Rent Control Law Does Not Apply To

  • Housing that has been issued a certificate of occupancy within the previous 15 years.
  • Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
  • A duplex in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy.
  • Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
  • Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
  • Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly or an adult residential facility.
  • Transient and tourist hotel occupancy.
The following types of property are also exempt from the new California rent control law:
Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following (A & B) apply:
(A) The owner is not any of the following:
(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii) A corporation.
(iii) A limited liability company in which at least one member is a corporation.
(B) (i) The tenants have been provided written notice that the residential property is exempt from this section using the following statement:
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”







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