What is Assembly Bill 1482?
This bill limits apartment rent growth in California by placing an upper limit on annual rent increases and restricts tenant eviction :
• For apartment properties where rent control applies, rent increases will be limited to 5 percent plus inflation or 10 percent (whichever is lower) . Concessions and discounts are excluded.
• The bill requires a landlord have and state a just cause for eviction of tenants who have occupied the premises for a year.
• This bill does not preempt any local rent control or just cause ordinances.
• The legislation will take effect in January 2020 and sunset in 2030; however, it is retroactive to
March 15, 2019 .*
- Rent increases between March 15, 2019, and January 1, 2020, are subject to this new cap.
- Rent increases shall not be increased by more than two increments since March 15, 2019 .
When can rents be adjusted to market value? When an apartment unit is vacated and rented to a new tenant, the new lease can be adjusted to market rates .
What properties are affected?
• Apartments that are older than 15 years (built prior to 2005).
• Contain at least two rental units (non-owner occupied rental units).
Are there exemptions?
• Properties that are less than 15 years old (rolling 15- year lookback starting with 2005)
• Properties regulated by local rent control laws under the Costa-Hawkins Rental Housing Act . Exa mple:
- The city of Irvine does not have a rent control ordinance in place but now must adhere to AB 1482 ‘s provisions.
- The city of Berkeley does have rent control provisions in place under Costa-Hawkins. While 1995 or later is defined as “new construction” under Costa Hawkins, it is not under AB 1842 and would be subject to the new provisions through 2005.
• Single-family homes, including condos, town homes (anything separately alienable), unless owned by a REIT, corporation , or limited liability corporation in which at least one member is a corporation .
• A duplex or a house with a granny unit, if the owner occupies one of the units.
• Housing that is subject to an agreement that provides subs idies for persons and families of very low, low, or moderate income.
What are the new guidelines for evicting an apartment tenant?
Landlords may only terminate a lease of residential real property “for cause” for a tenant who has lived in property for over 12 mont hs, or 24 months in the case of two or more tenant s.
• For any leases terminated without cause, landlord must provide relocation assistance of one month’s rent.
- Just cause provisions now includes, but not limited to: nonpayment of rent, criminal activity, refusal to sign a written extension or renewal of the lease, and unauthorized sublett ing.
• Investors who want to convert a building to condominiums or make substantial renovations to units could evict tenants but would have to pay relocation assistance equal to one month’s rent.
• Landlords can still evict tenants for several reasons:
- Nonpayment of rent
- A breach of the material term of the lease
- Nuisance, waste, unlawful , or criminal activity
- Refusal to sign a written extension or renewal
- Assigning or subletting
- Refusal to allow the owner/manager to inspect the unit with appropriate notice
- The owner moving themselves or family into a unit
- To renovate
- To go out of business altogether
*AB1482 has passed with significant majorities in the Assembly and Senate and currently awaits the Governor’s signature .
For full details and text on Assembly Bill 1482, visit the California Legislative Information website :
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