Item 26 - Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances

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2 2 TENANT PROTECTIONS The topic of tenant protection in California is not new and has been around for decades. Many jurisdictions throughout the years have established rent control ordinances. Established in 1995, the Costa-Hawkins Rental Housing Act (California Civil Code Section 1954.50, et seq.) limit s the kind of rent control policies cities can impose by preventing cities from establishing rent restrictions on units constructed after 1995, protecting a landlord's right to raise the rent to market rate on a unit once a tenant moves out, and exempting single-family homes and condos unless they are owned by a corporation or real estate investment trust. The Costa-Hawkins Rental Housing Act prohibits vacancy control on residential properties and exempts certain kinds of units (e.g., new construction, single units with separately alienable titles, like single-family houses and condominiums) from rent control. Housing costs in the State of California continue to rise and many tenants are experiencing significant rent increases and/or evictions. Recognizing this issue, the State Legislature enacted the Tenant Protection Act (Assembly Bill 1482, California Civil Code Section 1946.2, et seq.) which will be effective for 10 years from its effective date, through December 31, 20291. The Tenant Protection Act put in place a statewide rent stabilization cap that limits annual increases at 5%, plus any rise in the Consumer Price Index (“CPI”), not to exceed 10%. In addition to limiting annual rent increases, the Tenant Protection Act also provides tenant protections that prevent tenant evictions without just cause when all tenants have lived in the unit for 12 months or more, or where at least one tenant has occupied the unit for 24 months. Excluding the City, twenty-three (23) jurisdictions in California have rent stabilization ordinances. Of these jurisdictions, nineteen (19) ordinances only apply to residential units and four (4) apply to both residential units and mobilehome park spaces. Some characteristics vary amongst rent stabilization and just cause eviction programs, but of the twenty-three (23) jurisdictions:  Twenty (20) jurisdictions require landlords to register rental units within a rental registry and have a registration fee that landlords are required to pay; and  Fifteen (15) jurisdictions have rent review boards or commissions that help guide the program and review decisions. The protections provided in these ordinances are more restrictive, or provide greater benefits to tenants, than those set forth in the Tenant Protection Act. Exhibit A includes a summary of all the jurisdictions in the State of California with rent stabilization ordinances. 1 Assembly Bill 1482, Chapter 597