AB 1482 (Statewide Rent Control) Information

AB 1482

AB 1482

The California State Assembly passed AB 1482 and the bill has been signed into law by Governor Gavin Newsom. SAMCAR and the Coalition for Housing Equality, with the support of the California Association of REALTORS® (C.A.R.), is providing information to REALTORS® and property owners about the implications of this new state law and how to comply.

AB 1482 (Statewide Rent Control) Information

The AB 1482 (Statewide Rent Control) information packet contains material from the following sources:

C.A.R. The Tenant Protection Act of 2019 (Statewide Rent Cap and Just Cause Eviction Law) (requires C.A.R. log-in)
Bureau of Labor Statistics: Consumer Price Index, San Francisco Area — August 2019
CALegInfo: AB-1482 Tenant Protection Act of 2019: tenancy: rent caps.

Neil Kalin PowerPoint Slides (November 6)

Additionally, C.A.R. Counsel, Neil Kalin, provided the following Notice of Exemption:

Notice of Exemption from Rent Cap and Just Cause Eviction Law for Single Family Residential Property (requires C.A.R. log-in)

C.A.R. Legal Hotline • (213) 739-8282 • legalhotline@car.org

Exempt Properties

The statewide rent cap and just cause eviction law (AB 1482) comes into effect on January 1, 2020. If you are the owner of a single-family property or condo, you may qualify for an exemption from both the rent cap and just cause portions of the law. However, you are not automatically exempt. To claim the exemption, you will need to:

1. Provide the tenant(s) with an official form notifying them that you are exempt. (Until June 30, 2020, it may be provided as a notice. After that date it must be provided in the rental agreement).

a. If you have raised the rent in excess of 5% + CPI (for a total of 9% in the Counties of San Francisco, San Mateo, Marin, Alameda, and Contra Costa) since March 15 of this year, tenants must receive the official form by December 31, 2019 for exemption to AB 1482 to apply.

b. The official form that notifies tenants of exemption can be given to tenants until June 30, 2020 if you have no intention of raising rents in excess of 9% or serving a "no cause" eviction.

c. By July 1, 2020, all notices of exemption must be included in the lease agreement or "Notice of Change in Terms of Tenancy"

2. Indicate that the property is not owned by any of the following:
Real estate investment trust;
Corporation; or
Limited liability company in which at least one member is a corporation.

Notice of Exemption from Rent Cap and Just Cause Eviction Law for Single Family Residential Property (requires C.A.R. log-in)

CAR's new "Rent Cap and Just Cause Addendum" (Form RCJC) may also be used and will be available through zipForm.

If you have any questions or need clarity, please contact a real estate attorney.

Assembly Bill No. 1482 Tenant Protection Act of 2019: tenancy: rent caps.

[Excerpt regarding exemptions]

(e) This section shall not apply to the following types of residential real properties or residential circumstances:

(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.

(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.

(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.

(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.

(5) 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.

(6) 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.

(7) Housing that has been issued a certificate of occupancy within the previous 15 years.

(8) Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following 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."

(ii) For a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.

(iii) For any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.

(iv) Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).

The above portion is only an excerpt. Read the full bill text here.

Speaker Profiles:

SAMCAR and the Coalition for Housing Equality have hosted several information sessions about AB 1482 for REALTORS® and property owners. Below are presenter profiles and any additional materials from these sessions.

Tom Thompson

Tom Thompson has decades of experience in real estate, lobbying, labor relations, property management and construction. He is co-founder of Coalition for Housing Equality, which organized 20+ successful local political battles against Rent/Eviction/Relocation Controls in San Mateo County. Tom is a housing provider who manages his own properties in San Mateo County.

He and his wife Jane are 20+ year San Mateo homeowners. Tom graduated San Jose State University and holds an MBA from National University. Other professional experience includes a decade in county juvenile probation (PO, treatment programs for juvenile felons and juvenile hall superintendent) as well as CEO of Santa Clara County Association of REALTORS®.

Annie Oliva

Annie Oliva is the owner of OMarshall Real Estate in San Bruno, with offices in Burlingame, San Carlos, and San Francisco. She has served as a Millbrae Councilmember since 2013. She is also a REALTOR®, a property manager, and serves as the Housing Advocate for the Coalition for Housing Equality.

In San Bruno, Annie created the first-time home buyers alliance and has helped over 700 people find homes. She has been a volunteer for several philanthropic efforts, such as RSVP, that helps seniors maintain their homes.

Annie carries on the legacy of her father, Bob Marshall, Sr., who founded Marshall Realty in 1959.

Sanjay Wagle

Sanjay Wagle is Vice President of Public Policy for the California Association of REALTORS® in Sacramento where he lobbies on behalf of the Association and supervises the work of C.A.R.'s policy staff.

Prior to working with C.A.R. in its Government Affairs Division, he worked in C.A.R.'s Member Legal Department in Los Angeles. Sanjay has been with C.A.R. since 2003.

Sanjay received his law degree from the University of Southern California (USC), his M.A. from UCLA and his B.A. degree from the University of Chicago.

Gov Hutchinson

Gov Hutchinson is Assistant General Counsel/Vice President of the CALIFORNIA ASSOCIATION OF REALTORS®. Gov has been with C.A.R. since 1985 and manages C.A.R.'s Member Legal Services Program in Los Angeles. Gov advises REALTORS® through the "Hotline" on all aspects of real estate law and he trains and supervises other "Hotline" attorneys.

Gov received his Bachelor's Degree in History from Princeton University and his Juris Doctorate from the University of Pennsylvania.

He has written for CALIFORNIA REAL ESTATE magazine, co-authored C.A.R. continuing education courses and is a master instructor for the Education Division of C.A.R. with certification from the Department of Real Estate. He also regularly speaks to Associations/Boards of REALTORS®, affiliated trade associations, city and county bar associations and major real estate firms.

Neil Kalin

Assistant General Counsel for California Association of REALTORS®. Started working for C.A.R. in 1987. Senior legal advisor to C.A.R.'s Standard Forms Committee. Author of amicus briefs for C.A.R. for the State and Federal courts. Instructor for Certified Forms Trainer program. Speaker on real estate legal developments for REALTORS® and attorneys. Answers the C.A.R. Legal Hotline. Editor of legal section of car.org. Instructor for mediator panelists for C.A.R. Real Estate Mediation Center for Consumers. Arbitrator for the American Arbitration Association (commercial panel). Teaches DRE-approved continuing education courses on RPA. Co-chair (2019), Real Property Law Section of California Lawyers Assoc. Graduate (1982) of University of Illinois (Bachelor of Science, Advertising). Recipient (1982) of Certificate of Public Accountancy. Graduate (1985) of UCLA School of Law (J.D.). Recipient, Certified International Property designation (NAR, 2001).