The California Tenant Protection Act of 2019, AB 1482

TL;DR:

The California Tenant Protection Act of 2019 enforces statewide rent control by limiting annual rent increases for some properties to no more than 5% + local inflation rate or 10% (whichever is lower). It also requires rental owners and landlords to have a “just cause” to terminate a tenancy.

What it is:

Despite similar pieces of legislation failing in the years prior, AB 1482 (also known as the California Tenant Protection Act of 2019) passed and went into effect on January 1, 2020. This law restricts two areas within the rental housing industry: rent increases and unlawful detainers/evictions.

Annual rent increases are limited to 5% + the percentage change in the consumer price index (CPI) or 10%, whichever is lower. Rental owners may establish any rent amount they desire for vacant units, however, once a tenant has moved in, all rent increases during the tenancy must comply with California’s rent cap.

This law also establishes “just cause” restrictions for owners who wish to file for unlawful detainer. These “just cause” eviction rules apply to renters living within the rental property for 12 months or more, or where at least one tenant has occupied the unit for 24 months. A tenancy may not be terminated unless the landlord or property manager has “just cause”. This just cause reason must be stated within the eviction notice. “Just cause” is divided into “at-fault” or “no-fault.”

Permissible "at-fault" eviction reasons:

Failure to pay the rent.
Breach of the lease terms.
Maintaining, committing, or permitting a nuisance (see your local nuisance ordinance laws).
Committing waste (keeping the property clean).
Renter refusal to execute a written lease extension or renewal on or after January 1st, 2020.
Criminal activity by the renter on the property.
Assigning or subletting the property, in violation of the lease.
Refusing the rental property owner access to the property.
Using the property for unlawful purposes.
A property's employee (like an on-site manager), agent or licensee's failure to vacate after employment termination.
Failure to deliver possession of the property following a renter's lease termination notice, which the property owner accepts in writing.

Permissible "no-fault" eviction reasons:

Intent by the owner or relative of the owner to occupy the unit (relatives are the owner's spouse, domestic partner, children, grandchildren, parents, or grandparents).
Withdrawal of the property from the rental market.
Intent to demolish or substantially remodel the property.
If the owner is complying with a local ordinance, court order, or other government entity resulting in the need to vacate the property.

If the eviction is “no-fault,” the renter is entitled to relocation assistance or a rent waiver equal to one month’s rent. Rental owners are required to notify the tenant of their right to relocation assistance or a rent waiver on the notice of termination. Additionally, if the property owner does not pay the relocation assistance or rent waiver, the lease termination is void.

By August 1^st, 2020, rental properties were required to provide existing tenants notice explaining the “just cause” and rent cap. All tenancies or renewals after July 1, 2020 must provide notice as an addendum to the lease or rental agreement, or as a written notice signed by the tenant. A copy of the notice must also be provided. The notice language must state:

“California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.”

If exempt (see below under “who it affects”), the notice language must read:

“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.”

Unless extended, the provisions within this law will expire on January 1, 2030.

What it means:

Unless exempted, all California rental properties are prohibited from increasing the rent to no more than 5% + CPI or 10%, whichever is lower. Units in cities or counties with local ordinances with stricter rent caps must abide by the local restrictions.
The expiration of a rental agreement is no longer a “just cause” to file for an unlawful detainer. Rental owners must have a “just cause” to terminate a tenancy of a renter who has occupied a unit for 12 months or more. This “just cause” reason must be included on the written eviction notice to the renter.
“Just cause” reasons are divided into “at-fault” or “no-fault.” Landlords are required to provide relocation assistance for renters affected by a “no-fault” eviction, as notified within the written notice of termination. Without payment or a rent waiver, the lease termination is void.
All rental owners must provide specific language notifying the tenant of their rights under the “just cause” and rent cap provisions within the California Tenant Protection Act of 2019. This can be done either as a separate, signed, notice or as a lease addendum. This applies to properties that must abide by the “just cause” and “rent cap” provisions and single-family properties that are exempt.

Whom it affects:

All rental housing in the state of California must abide by the California Tenant Protection Act of 2019 except the following:

Rental housing units exempt from the “just cause” and “rent cap” provisions in AB 1482-

Single-family homes and condominiums where A) the property is not owned by a real estate trust, corporation, or an LLC with at least one corporate member, and B) the landlord has notified the tenant in writing that the tenancy is not subject to the “just cause” and rent increase limitations as specifically described in Civil Code Sections 1946.2 (8)(B)(i) and 1947.12(d)(5)(B)(i).
Units that were constructed in the last 15 years are exempt. This 15-year period applies on a rolling basis.
Two-unit properties so long as the second unit is occupied by the owner for the entire period of the tenancy.
Units for low or moderate-income households.
Certain dormitories.

Rental housing units exempt from the “rent cap” –

Units that already have a local rent control ordinance that restricts annual rent increases to 5% + CPI or less.

Rental housing units exempt from “just cause” regulations –

Units that already have a local ordinance that requires “just cause” to terminate a tenancy and is more stringent than state law.
Single-family properties where the owner resides and rents no more than 2 bedrooms or units, including accessory dwelling units.
Properties where the owner lives as their primary residence and the tenant shares a bathroom or kitchen with the owner.
Housing provided by a nonprofit hospital, church, extended care facilities, licensed extended care facility for the elderly, or an adult residential facility.
Transient and tourist hotels as defined in Civil Code Section 1940(b).

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