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Governor Newsom signed Assembly Bill 1482 into law on October 8.

Quick Summary of the law:

Rent Cap

Rent increases are capped at 5 percent plus inflation, or up to a hard cap of 10 percent, whichever is lower.

All rent increases since March 15, 2019 will count toward the rent cap, and if above the permissible rent cap, will have to be rolled back effective January 1, 2020.

Just Cause

Landlords may only evict for “just cause.” There is a list of 15 reasons.

The just cause reasons are divided into two categories:

“At fault” termination of tenancy is generally based upon a tenant’s breach of the lease, among other reasons, and does not require the payment of relocation assistance.

“At fault” reasons include non-payment of rent, nuisance, criminal activity, refusal to allow entry, and breach of a material term of the lease.

“No fault” termination of tenancy is allowed when the tenant has not breached the lease and will require the landlord to pay one month’s rent in relocation assistance.

“No fault” reasons include owner occupancy, withdrawal from the rental market, substantial remodeling and compliance with government order to vacate the property,

Just cause eviction only applies to tenants who have been continuously and lawfully occupying the property for 12 months.

Exemptions

Exempts single family properties and condos if:

  • Notice of the exemption is provided to the tenants and;
  • The owner is not a REIT, a corporation, or an LLC where an owner is a corporation

Other exemptions include:

  • Housing that has been issued a certificate of occupancy within previous last 15 years
  • Owner occupied duplexes
  • Owner occupied single-family properties renting no more than two bedrooms including Accessory Dwelling Units (“ADU”s). (This exemption applies only to just cause but not the rent cap).

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