From the California Association of REALTORS®:
As you know, earlier this week C.A.R. issued a large-scale Red Alert, asking those of you represented by Democrats in the Assembly to call your legislator to express your concerns about two bills, AB 1481 and AB 1482, that together imposed unacceptable regulations on rental property owners. AB 1482 would have imposed a very restrictive rent cap and AB 1481 would have created an expansive “just cause” eviction right.
Last night, due in large part to your calls to legislators, C.A.R. was able to successfully negotiate a deal with the bills’ authors on amendments that allow C.A.R. to remove its opposition. This compromise strikes a balance between preserving the rights of rental property owners while allowing the protection of at-risk tenants. Of particular concern, small property owners are protected, and the reach of both bills are limited with a sunset date of 2023. These amendments will be made to the bills once they move to the Senate.
AB 1482 passed the Assembly last night and AB 1481 is still pending.
Here are the amendments that C.A.R. negotiated:
Amendments to AB 1481 – “just cause” evictions:
- Will only apply to tenancies after 12 months; and
- Will limit relocation assistance for “no-fault” evictions to an amount equal to one month of the tenant’s current monthly rent.
Amendments to AB 1482 – Rent cap:
- Will increase the cap in the bill from 5% to 7% plus regional CPI. (For example, in Los Angeles the full increase would be 10%); and
- Will preserve the right of landlords, through vacancy decontrol, to reset a rent to market rate once a tenant has vacated the unit.
Amendments to both bills:
- Both bills exempt entirely small property owners with 10 or fewer single-family detached homes; and
- Both bills sunset in 2023.
Thank you to everyone who responded to this Red Alert.