Existing law, until January 1, 2030, prohibits an owner of residential real property from, over the course of any 12-month period, increasing the gross rental rate for a dwelling or a unit more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months before the effective date of the increase, subject to specified conditions. Existing law defines percentage change in the cost of living as the percentage change in the applicable Consumer Price Index for All Urban Consumers for All Items, as specified.

This bill would require the Department of Housing and Community Development Attorney General to, by August July 1 of each year, publish the maximum allowable rent increase on its internet website for each metropolitan area.

Existing law, until January 1, 2030, prohibits an owner of residential real property from, over the course of any 12-month period, increasing the gross rental rate for a dwelling or a unit more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months before the effective date of the increase, subject to specified conditions. Existing law defines percentage change in the cost of living as the percentage change in the applicable Consumer Price Index for All Urban Consumers for All Items, as specified.

This bill would require the Department of Housing and Community Development to, by August 1 of each year, publish the maximum allowable rent increase on its internet website for each metropolitan area.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

AB 2278 (Wendy Carrillo) - Rent increases: percentage change in the cost of living: Department of Housing and Community Development

Bill Summary:

AB 2278 would require the Attorney General (AG), by July 1 of each year, to publish on its website the maximum allowable rent increase for each metropolitan area under the Tenant Protection Act of 2019 (TPA).

Fiscal Impact:

The Department of Justice (DOJ) indicates significant costs (General Fund) $5 million or less (General Fund):

The DOJ further indicates that the Government Law Section (GLS), within the Civil Law Division anticipates an increase in litigation due to potential legal challenges upon the enactment of AB 2278. To address the additional workload, GLS will require additional resources consisting of 1.0 Deputy Attorney General and the legal complement of 1.0 Legal Secretary, beginning in FY 2024-25 and concluding in FY 2027-28. The Consumer Protection Section (CPS) within the Public Rights Division (PRD), would require, beginning January 1, 2025, and ongoing, 1.0 Deputy Attorney General (DAG), 1.0 Associate Governmental Program Analyst (AGPA), 1.0 Investigative Auditor, and 1.0 Legal Secretary. The DOJ notes that it will be unable to absorb the costs to comply with or implement the requirements of the bill within existing budgeted resources and implementation of this bill will be dependent upon the appropriation of funds.

Background:

The Legislature passed the Tenant Protection Act (TPA) in 2019 in an effort to halt exorbitant rent increases. (AB 1482 (Chiu, Ch. 597, Stats. 2019).) The TPA was strengthened last year when the Legislature passed SB 567 (Durazo, Ch. 290, Stats. 2023) which, among other things, added enforcement mechanisms for the violation of the TPA’s restrictions on residential rent increases.

The TPA bases the allowable rent increases on a formula relying on consumer price index (CPI) data calculated annually by the US Bureau of Labor Statistics or California’s Department of Industrial Relations. The maximum allowable increase is calculated by adding 5% to the current or prior year CPI increase for the applicable sub-region, up to a maximum of 10%, whichever is lower, and rounded to the nearest one-tenth of 1%.

For rent increases that take effect on or after August 1 of any calendar year, the percentage change is calculated using the amount published for April of that calendar year and April of the immediately preceding calendar year. For rent increases that take effect before August 1 of any calendar year, the calculation uses the amount published for April of the immediately preceding calendar year and April of the year before that. Even though CPI information is public, it could be confusing for a landlord or tenant to calculate the maximum rent increase because they must find the information regarding their sub-region and calculate from there. In an effort to provide tenants and landlords accurate information regarding allowable rent increases so that they may comply with the law, this bill requires the Attorney General to post the maximum allowable rent increase for each metropolitan area by July 1 of each year.

Proposed Law:

This bill requires the AG to post the maximum allowable rent increase for each metropolitan area by July 1 of each year.

-- END --

SENATE JUDICIARY COMMITTEE

Senator Thomas Umberg, Chair

2023-2024 Regular Session

Bill No: AB 2278 (Author:Wendy Carrillo)

Version: March 21, 2024

Hearing Date: June 11, 2024

Fiscal: Yes

Urgency: No

Consultant: ME

SUBJECT

Rent increases: percentage change in the cost of living: Department of Housing and Community Development

DIGEST

This bill requires the Attorney General to, by July 1 of each year, publish on their website, the maximum rent increase that is allowable under the Tenant Protection Act for each metropolitan area.

EXECUTIVE SUMMARY

The Legislature passed the Tenant Protection Act (TPA) in 2019 in an effort to halt exorbitant rent increases. (AB 1482 (Chiu, Ch. 597, Stats. 2019).) The TPA was strengthened last year when the Legislature passed SB 567 (Durazo, Ch. 290, Stats. 2023) which, among other things, added enforcement mechanisms for the violation of the TPA’s restrictions on residential rent increases.

The TPA bases the allowable rent increases on a formula relying on consumer price index (CPI) data calculated annually by the US Bureau of Labor Statistics or California’s Department of Industrial Relations. The maximum allowable increase is calculated by adding 5% to the current or prior year CPI increase for the applicable sub-region, up to a maximum of 10%, whichever is lower, and rounded to the nearest one-tenth of 1%.

For rent increases that take effect on or after August 1 of any calendar year, the percentage change is calculated using the amount published for April of that calendar year and April of the immediately preceding calendar year. For rent increases that take effect before August 1 of any calendar year, the calculation uses the amount published for April of the immediately preceding calendar year and April of the year before that. Even though CPI information is public, it could be confusing for a landlord or tenant to calculate the maximum rent increase because they must find the information regarding their sub-region and calculate from there. In an effort to provide tenants and landlords accurate information regarding allowable rent increases so that they may comply with the law, this bill requires the Attorney General to post the maximum allowable rent increase for each metropolitan area by July 1 of each year.

This bill is sponsored by the California Rental Housing Association. The Committee has not received timely opposition.

PROPOSED CHANGES TO THE LAW

Existing law, the Tenant Protection Act (TPA), until January 1, 2030, prohibits an owner of residential real property from, over the course of any 12-month period, increasing the gross rental rate for a dwelling or a unit more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months before the effective date of the increase, subject to specified conditions. Existing law defines “percentage change in the cost of living” as the percentage change in the applicable Consumer Price Index for All Urban Consumers for All Items, as specified.

This bill requires the Attorney General to post the maximum allowable rent increase for each metropolitan area by July 1 of each year.

COMMENTS

1. Author statement

The author writes the following in support of the bill:

AB 2278 strengthens previous legislation, AB 1482 (Chiu), which prohibits owners from increasing a tenant’s rent by more than 5% plus inflation or 10%, whichever is lower. Yet no agency is required to stipulate that figure, confusing tenants and property owners who must calculate it themselves. AB 2278 requires the Attorney General to publish the maximum rent increase.

This bill is about more than just numbers on a website; it is about ensuring every Californian has access to the information they need to protect their homes. It is about giving tenants the tools to negotiate confidently against unlawful rent increases while providing property owners with clear guidelines to help them comply with the law.

2. The bill aims to provide public accurate information so tenants and landlords can accurately calculate allowable rent increases pursuant to the TPA

The TPA bases the allowable rent increases on a formula relying on consumer price index (CPI) data calculated annually by the US Bureau of Labor Statistics or California’s Department of Industrial Relations. The maximum allowable increase is calculated by adding 5% to the current or prior year CPI increase for the applicable sub-region, up to a maximum of 10%, whichever is lower, and rounded to the nearest one-tenth of 1%. For rent increases that take effect on or after August 1 of any calendar year, the percentage change is calculated using the amount published for April of that calendar year and April of the immediately preceding calendar year. For rent increases that take effect before August 1 of any calendar year, the calculation uses the amount published for April of the immediately preceding calendar year and April of the year before that. Even though CPI information is public, it could be confusing for a landlord or tenant to calculate the maximum rent increase because they must find the information regarding their sub-region and calculate from there. In an effort to provide tenants and landlords accurate information regarding allowable rent increases so that they may comply with the law and enforce the law, this bill requires the Attorney General to post the maximum allowable rent increase for each metropolitan area by July 1 of each year.

The California Rental Housing Association, the sponsor of AB 2278, writes the following:

AB 2278 expands on previous legislation, AB 1482 (Chiu), which prohibits owners from increasing a tenant’s rent by more than 5% plus inflation, or 10%, whichever is lower. Yet, no agency is required to stipulate that figure, causing confusion for property owners. [ . . . ]

“Assemblywoman Wendy Carrillo’s AB 2278 is a simple, straightforward fix to a glaring issue. It would provide property owners with clear thresholds on maximum allowable rent, maintaining the viability of keeping rent at a fair, equitable cost for Californians,” said Earle Vaughan, CalRHA President. “This bill would directly impact numerous rental housing associations and property owners across the state and support them with defined guidelines enabling safe and fair practices.”

According to the previous legislation, AB 1482, “the percentage change in the cost of living” is defined by the percentage change from April 1 of the prior year to April 1 of the current year in the regional Consumer Price Index for the region where the residential real property is located, as published by the United States Bureau of Labor Statistics. Using this method, property owners are able to service tenants with visibility and clarity on rental payments. AB 2278 will clarify this process, ensuring full transparency for all parties involved

The Western Center on Law and Poverty writes the following in support of AB 2278:

As an original co-sponsor of the TPA, we believe that requiring public posting of the maximum rent increase allowed under the TPA is critical for tenants to protect themselves against illegal rent increases. While general CPI data is publicly available, it is difficult for tenants to understand the maximum allowable increase for their region without performing complicated calculations. This can be more difficult for tenants with limited English proficiency or those without access to technology. The lack of easily accessible information causes unnecessary confusion for tenants. By requiring the AG to post the maximum allowable increase by each region, this will give tenants some tools to advocate for themselves.

SUPPORT

California Rental Housing Association (sponsor)
American Federation of State, County, and Municipal Employees, CA, AFL-CIO
City of Alameda

Southern California Rental Housing Association
Western Center on Law and Poverty

OPPOSITION

None received

RELATED LEGISLATION

Pending Legislation: None known.

Prior Legislation:

SB 479 (Durazo, Ch. 8, Stats 2024) corrected an unintended drafting error in SB 567 (Durazo, Ch. 290, Stats. 2023) regarding the definition of “natural person” in the owner move-in provisions of the no-fault just cause eviction portion of the Tenant Protection Act of 2019 (Act).

SB 567 (Durazo, Ch. 290, Stats. 2023) made a series of revisions to statewide protections against eviction without just cause and provided enforcement mechanisms for the violation of statewide restrictions on residential rent increases and statewide protections against no fault evictions.

AB 1482 (Chiu, Ch. 597, Stats. 2019) limited rent-gouging in California by placing an upper limit on annual rent increases. The bill also required that a landlord have and state a just cause, as specified, in order to evict tenants who have occupied the premises for a year. Both the rent cap and the just cause provisions are subject to specified exemptions. The bill did not preempt any local rent control ordinances.

PRIOR VOTES:

Assembly Floor (Ayes 72, Noes 0)

Assembly Appropriations Committee (Ayes 14, Noes 0)

Assembly Housing and Community Development Committee (Ayes 9, Noes 0)

**************

Date of Hearing: April 10, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2278

Author:(Wendy Carrillo) – As Amended Ver:March 21, 2024

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the Attorney General (AG), by July 1 of each year, to publish on its website the maximum allowable rent increase for each metropolitan area under the Tenant Protection Act of 2019 (TPA).

FISCAL EFFECT:

Estimated costs to the State Department of Justice (DOJ) of an unknown, but likely minor amount, to annually publish on its internet website the maximum allowable rent increase under the TPA for each metropolitan region.

COMMENTS:

1. Purpose. The author of this bill seeks to reduce confusion and disputes between tenants and property owners by requiring the AG to post the annual rent increase limits under the TPA on its website. According to the author:

This bill expands on previous legislation which prohibits owners from increasing a tenant’s rent by more than 5% plus inflation or 10%, whichever is lower. Yet no agency is required to stipulate that figure, confusing tenants and property owners who have to calculate it. [This bill] requires [the AG] stipulate the maximum rent increase.

1. Background. Among its provisions, the TPA (AB 1482, Chiu (Chapter 597, Statutes of 2019)), until January 1, 2030, protects tenants from rent increases by placing an annual cap on rent increases at 5% plus inflation, up to a maximum of 10%. Last year, SB 567 (Durazo), Chapter 290, Statutes of 2023, authorized, beginning April 1, 2024, the AG, city attorneys, and county counsels to bring actions to enforce the rent cap provisions and to seek injunctive relief on behalf of harmed tenants.

The TPA defines allowable rent increases using a formula based on consumer price index (CPI) data calculated on an annual basis by the US Bureau of Labor Statistics or California’s Department of Industrial Relations. The maximum allowable increase is calculated by adding 5% to the current or prior year CPI increase for the applicable sub-region, up to an absolute maximum of 10%, whichever is lower, and rounded to the nearest one-tenth of 1%. For rent increases that take effect on or after August 1 of any calendar year, the percentage change is calculated using the amount published for April of that calendar year and April of the immediately preceding calendar year. For rent increases that take effect before August 1 of any calendar year, the calculation uses the amount published for April of the immediately preceding calendar year and April of the year before that.

Existing law does not require any public agency to stipulate or publish the maximum allowable rent increases under the TPA. Consequently, while the CPI data is publicly available, an interested party seeking to understand the maximum allowable rent increase under the TPA must locate relevant data for their sub-region and perform the calculation. A few local jurisdictions, including San Francisco and Los Angeles County, appear to be posting their sub-regional rent cap on their own websites.

The author’s office and sponsors believe the lack of easily accessible public information contributes to disputes and confusion around what is allowable under the TPA’s rent caps. They believe requiring the AG to post the maximum allowable rent increase for each metropolitan area by July 1 of each year will empower tenants to more easily verify their rent increase is legal and aid property owners in complying with the law.

DOJ is concerned that the performance of these calculations and posting of the results may result in costly legal challenges to the AG’s office. While it is reasonable to assume the enforcement authorizations provided to the AG in last year’s SB 567 (Durazo) may lead to increased litigation associated with violations of allowable rent increases, it is not clear whether posting annual rent cap information, as required by this bill, will significantly impact the number or complexity of legal challenges.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: March 20, 2024

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

Christopher M. Ward, Chair

ABPCA Bill Id:AB 2278 (

Author:Wendy Carrillo) – As Introduced Ver:February 8, 2024

SUBJECT: Rent increases: percentage change in the cost of living: Department of Housing and Community Development

SUMMARY: Requires the Department of Housing and Community Development (HCD) to publish the maximum allowable rent increase for each metropolitan area under the Tenant Protection Act of 2019 (TPA) on its website by August 1 of each year.

EXISTING LAW:

1. Enacts the TPA with a sunset date of January 1, 2030. (Civil Code (CC) Section 1946.2, 1947.12, and 1947.13)
2. Prohibits a property owner from terminating a residential tenancy without giving written notice of a just cause for the termination starting after all tenants have continuously and lawfully occupied the property for 12 months, or at least one adult occupant has done so for at least 24 months. (CC 1946.2(a))
3. Prohibits, until January 1, 2030, an owner of residential real property from, over the course of any 12-month period, increasing the gross rental rate for a dwelling or a unit more than five percent plus the percentage change in the cost of living, or 10%, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months before the effective date of the increase, subject to specified conditions. (CC 1947.12(a)(1))
4. Prohibits an owner from increasing the gross rental rate on a unit in more than two increments over a 12-month period if the same tenant remains in occupancy of a unit over any 12-month period. (CC 1947.12(a)(2))
5. Exempts the following types of properties from the rental rate provisions of the TPA:
   1. Deed-restricted affordable housing for persons and families of very low, low, or moderate income, as defined;
   2. Dormitories owned and operated by a K-12 or higher education institution;
   3. Housing subject to any form of rent or price control through a public entity’s valid exercise of its police power that restricts annual increases in the rental rate to an amount less than that provided in 3), above;
   4. Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome;
   5. A duplex in which the owner occupies one of the units; and
   6. Residential real property that is alienable separate from the title to any other dwelling unit (primarily single-family residences and condominiums), provided that specified notice of the exemption is given to the tenants and the owner is not a:
      1. Real estate investment trust;
      2. Corporation;
      3. Limited liability company in which at least one member is a corporation; or
      4. Management of a mobilehome park. (CC 1947.12(d))
6. Defines “Consumer Price Index for All Urban Consumers for All Items” as follows:
   1. The Consumer Price Index for All Urban Consumers for All Items (CPI-U) for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics (BLS), which are as follows:
      1. The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan areas covering the Counties of Los Angeles and Orange;
      2. The CPI-U for the Riverside-San Bernardino-Ontario metropolitan area covering the Counties of Riverside and San Bernardino;
      3. The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego;
      4. The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo; and
      5. Any successor metropolitan area index to any of the indexes in i) – iv) above.
   2. If the BLS does not publish a CPI-U for the metropolitan area in which the property is located, the California Consumer Price Index for All Urban Consumers for All Items as published by the Department of Industrial Relations.
   3. Beginning January 1, 2021, if the BLS publishes a CPI-U index for one or more metropolitan areas not listed in a) above, that CPI-U index must apply in those areas with respect to rent increases that take effect on or after August 1 of the calendar year in which the 12-month change in that CPI-U is first published. (CC 1947.12(g)(1))
7. Defines “percentage change in the cost of living” to mean the percentage change in the applicable Consumer Price Index for All Urban Consumers for All Items, as follows:
   1. For rent increases that take effect before August 1 of any calendar year, the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that. If there is not an amount published in April for the applicable geographic area, the percentage change is the amount published for March of that calendar year and March of the immediately preceding calendar year;
   2. For rent increases that take effect on or after August 1 of any calendar year, the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year. If there is not an amount published in April for the applicable geographic area, the percentage change is the amount published for March of that calendar year and March of the immediately preceding calendar year; and
   3. The percent change must be rounded to the nearest one-tenth of one percent. (CC 1947.12(g)(3))
8. Provides civil legal remedies, as specified, for tenants who are charged rent in excess of the maximum rent allowed by the TPA, and authorizes the Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in a jurisdiction in which the rental unit is located, to enforce the provisions of the TPA and seek injunctive relief for violations of the TPA. (CC 1947.12(k)(1)-(2))

FISCAL EFFECT: Unknown.

COMMENTS:

Author’s Statement: According to the author, “AB 2278 expands on previous legislation, AB 1482 (Chiu), which prohibits owners from increasing a tenant’s rent by more than 5% plus inflation or 10%, whichever is lower. Yet no agency is required to stipulate that figure, confusing tenants and property owners who have to calculate it. AB 2278 requires that HCD stipulate the maximum rent increase.

This bill is about more than just numbers on a website; it is about ensuring every Californian has access to the information they need to protect their homes. It is about giving tenants the tools to negotiate with confidence while providing property owners with clear guidelines to help them comply with the law.”

Struggling Tenants and the Housing Crisis: California is home to approximately 18 million renters – which represents 45 percent of the state’s population. The state’s housing crisis has been particularly impactful to this population, as the multi-million unit shortfall of housing has driven up rents considerably. From 2000 to 2019, the state’s median rent went up 35 percent while median incomes went up only six percent.^[1] The result is that over 50 percent of renters – and 80 percent of low-income renters – are “rent-burdened,” in that paying the rent eats up more than 30 percent of their income and requires them to sacrifice in other essential areas, such as food, transportation, and health care.^[2]

Tenant Protection Act of 2019: The TPA (AB 1482 (Chiu), Chapter 597, Statutes of 2019) established, for approximately eight million renters in rental housing accommodations, substantial protections against rent gouging and unjustified termination of their lease. AB 1482 protected against rent gouging by placing an annual cap on rent increases at five percent plus the change in the consumer price index (CPI), not to exceed 10%. AB 1482 protected against unjustified evictions by requiring a justifiable cause for the termination of tenancy. This included specifying a list of "at-fault" causes, where the termination is justified by the action of the tenant, such as failure to pay rent or criminal activity on the premises. This also included specifying a list of "no-fault" causes, where the termination is justified by the property owners' decision to use their property differently.

The law defines allowable rent increases with a formula based on specific CPI data that is calculated on an annual basis by the US Bureau of Labor Statistics or California’s Department of Industrial Relations.^[3] The maximum allowable increase is calculated by adding five percent to the current or prior year CPI increase for the applicable subregion, up to an absolute maximum of 10%, whichever is lower, and rounded to the nearest one-tenth of one percent. For rent increases that take effect on or after August 1 of any calendar year, the percentage change is calculated using the amount published for April (or March, if no amount is published for April) of that calendar year and April (or March) of the immediately preceding calendar year. For rent increases that take effect before August 1 of any calendar year, the percentage change is calculated using the amount published for April (or March, if no amount is published for April) of the immediately preceding calendar year and April (or March) of the year before that.

While the CPI data is publicly available from the US BLS and California’s DIR, an interested party seeking to understand what the maximum allowable rent increase is under the TPA would still have to locate relevant data for their sub-region and perform the calculation. A small handful of jurisdictions appear to be posting their subregional rent cap on their own local government websites, including San Francisco^[4] and the County of Los Angeles.^[5] Additionally, some apartment associations provide compliance materials on the TPA to their members, including a calculator to determine the maximum allowable rent increase by location, but those calculators are only available privately to members of the associations.

The author’s office and sponsors contend that the lack of easily accessible public information contributes to disputes and confusion around what is allowable under the TPA’s rent caps. They believe requiring HCD to post the maximum allowable rent increase for each metropolitan area by August 1 of each year will empower tenants to more easily verify that their rent increase is legal and aid property owners in complying with the law.

Arguments in Support: According to the California Rental Housing Association, the bill’s sponsor, “AB 2278 expands on previous legislation, AB 1482 (Chiu), which prohibits owners from increasing a tenant’s rent by more than 5% plus inflation, or 10%, whichever is lower. Yet, no agency is required to stipulate that figure, causing confusion for property owners. AB 2278 (W. Carrillo) would require that the HCD clearly stipulate the maximum rent increase.”

Arguments in Opposition: None on file.

Committee Amendments: HCD does not have jurisdiction over landlord-tenant law nor does it have any current role in enforcing or providing information to interested parties regarding the TPA or its provisions. The Attorney General, by contrast, is specifically empowered in the TPA with enforcement authority, has taken multiple such enforcement actions seeking compliance with the TPA, and already hosts a webpage^[6] with information for tenants and landlords about general obligations and specific information regarding the application of the TPA. In addition, the determination for which preceding year of CPI increase must be used for the rent calculation is whether the rent increase occurs before or after August 1 of a given year, and the bill simultaneously requires the posting of the rent caps by August 1. This may not provide sufficient lead time for landlords to properly notice rent increases with the correct data, as current law requires landlords to provide 30 days advance notice of rent increases less than 10%. Thus, staff recommends the bill be amended to move back the publication date to July 1 of each year and also have the Attorney General be responsible for posting the maximum allowable rent increase each year, as follows:

Civil Code Section 1947.12(l). (l) The Department of Housing and Community Development Attorney General shall, by August July 1 of each year, publish the maximum allowable rent increase on its internet website for each metropolitan area in accordance with this section.

Related Legislation:

SB 479 (Durazo) of the current legislative session corrects an unintended drafting error regarding the definition of “natural person” in the owner move-in provisions of the no-fault just cause eviction portion of the TPA. This bill is currently pending on the Senate Floor.

SB 567 (Durazo), Chapter 290, Statutes of 2023: Revises the no-fault just cause eviction provisions of the TPA and provides additional enforcement mechanisms for violations of restrictions on residential rent increases and no-fault just cause evictions, to take effect April 1, 2024.

AB 1482 (Chiu), Chapter 597, Statutes of 2019: Enacted the TPA, which limits rent-gouging in California until 2030 by placing an upper limit on annual rent increases of five percent plus inflation, up to a maximum of 10%. To prevent landlords from engaging in rent-gouging by evicting tenants, the TPA also requires that a landlord state a just cause, as specified, in order to evict tenants who have occupied the premises for a year.

REGISTERED SUPPORT / OPPOSITION:

Support

Apartment Association of Greater Los Angeles (Sponsor)

California Rental Housing Association (Sponsor)

American Federation of State, County, and Municipal Employees (AFSCME)

Opposition

None on file.

Analysis Prepared by: Nicole Restmeyer / H. & C.D. / (916) 319-2085

1. California Housing Partnership Corporation’s “California Affordable Housing Needs Report 2021.” ↑

2. HCD, California Statewide Housing Plan, February 2018, Table 1.2 ↑

3. http://www.dir.ca.gov/OPRL/CAPriceIndex.htm ↑

4. https://www.sf.gov/reports/august-2023/california-tenant-protection-act-2019-ab-1482 ↑

5. https://dcba.lacounty.gov/portfolio/rent-increases/ ↑

6. https://oag.ca.gov/consumers/general/landlord-tenant-issues#protections ↑