AB 1482 Key Points

Governor Gavin Newsom signed Assembly Bill 1482 on Oct. 8, 2019, enacting statewide rent control legislation in California, which took effect on Jan. 1, 2020. Below is a summary of select key provisions.

  1. ANNUAL CAP ON RENT INCREASES EXPLAINED

AB 1482 Caps Annual Rent Increases at 5% Plus Inflation. Effective Jan. 1, 2020, AB 1482 caps rent increases statewide at 5% plus local inflation per year for the next 10 years, unless lawmakers vote to extend it.

  • If you live in a city that does not already have a local rent control law, rent increases will be limited to 5%, plus local inflation, but can never exceed a total of 10%.
  • For example, if the inflation rate is 3.8%, a landlord could raise rent by as much as 8.8%. If the inflation rate is 6%, a landlord could only raise rent by as much as 10%.
  • The rate of inflation will be tied to the Consumer Price Index (CPI) in each metropolitan area. (The CPI increases about 2-3% each per year.)
  • Rent may not be increased more than twice over a 12-month period (total sum of such increases not to exceed the annual rent cap).
  1. AB 1482 DOES NOT OVERRIDE LOCAL RENT CONTROL LAWS.
  2. BUILDINGS IMPACTED

AB 1482 Applies to Apartments and Other Multi-Family Buildings Containing Two Units or More. AB 1482 exempts single-family homes and condos, except when owned by a corporation, real estate investment trust, or limited liability corporation in which at least one member is a corporation. AB 1482 also exempts duplexes, when one of the units is occupied by the owner.

  • AB 1482 Does Not Apply to Buildings Constructed Within the Past Fifteen (15) Years.
  • This is a rolling date; units built in 2006 will be covered in 2021, units built in 2007 will be covered in 2022, etc.
  • For example, apartments constructed in the future would not fall under the rent cap until fifteen (15) years after they’re built.
  1. “JUST CAUSE” EVICTIONS

For tenants that have lived in a unit for at least one year, AB 1482 prohibits evictions and non-renewals of leases without “just cause.”

  • There are two types of “just cause”: (1) “At Fault,” and (2) “No-Fault.”
  • “At Fault” includes failure to pay rent, criminal activity, or breach of a material term of the lease.
  • “No Fault” includes if the owner/owner’s family intends to occupy the property, withdrawing the property from the rental market or an intent to demolish or substantially remodel the property, or compliance with a local ordinance or order issued by a governmental agency.
  • Landlords must give the renter an opportunity to cure “curable lease violations.”
  • If a landlord desires to convert the rentals to condos or “substantially” remodel the property, they will have to pay relocation fees equal to one month of rent.
  • These rules will not apply to cities with their own local “just cause” laws.