SB 522: Housing: tenant protections.
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-09-03
Current Status:
In Progress
(2025-09-10: Ordered to inactive file on request of Assembly Member Aguiar-Curry.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
What does this bill do?
The bill makes housing that replaces a unit substantially damaged or destroyed by a disaster subject to California’s just-cause eviction rules, meaning landlords must give a stated legal reason to end the tenancy. It applies when the previous unit was covered by the Tenant Protection Act and had a certificate of occupancy before the disaster and was rebuilt in its place.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law governs the hiring of residential dwelling units. Existing law, the Tenant Protection Act of 2019, prohibits, until January 1, 2030, an owner of residential real property from terminating the tenancy of certain tenants without just cause, either at-fault or no-fault of the tenant. The act exempts certain types of residential real properties from that prohibition, including, among others, housing that has been issued a certificate of occupancy within the previous 15 years.
This bill would exclude housing built to replace a previous housing unit that was subject to the Tenant Protection Act of 2019, was substantially damaged or destroyed by a disaster, as defined, and was issued a certificate of occupancy before that housing unit was substantially damaged or destroyed, from the above-described exemption from the just cause requirements and rental increase limits. requirements.
This bill would incorporate additional changes to Section 1946.2 of the Civil Code proposed by AB 1529 to be operative only if this bill and AB 1529 are enacted and this bill is enacted last.
Existing law governs the hiring of residential dwelling units. Existing law, the Tenant Protection Act of 2019, prohibits, until January 1, 2030, an owner of residential real property from terminating the tenancy of certain tenants without just cause, either at-fault or no-fault of the tenant. The act, until January 1, 2030, also prohibits an owner of residential real property from increasing the gross rental rate for a dwelling or unit more than 5% plus the percentage change in the cost of living, as defined, or 10%, whichever is lower, of the lowest gross rental rate charged for the immediately preceding 12 months, subject to specified conditions. The act exempts certain types of residential real properties or residential circumstances from these provisions, that prohibition, including, among others, housing that has been issued a certificate of occupancy within the previous 15 years.
This bill would exclude housing built to replace a previous housing unit that was subject to the Tenant Protection Act of 2019, was substantially damaged or destroyed by a disaster, as defined, and was issued a certificate of occupancy before that housing unit was substantially damaged or destroyed, from the above-described exemption from the just cause requirements and rental increase limits.
Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. Existing law, among other things, authorizes an owner of residential real property to establish the initial and all subsequent rental rates for a dwelling or unit that meets specified criteria, including a dwelling or unit that has already been exempt from the residential rent control ordinance of a public entity on or before February 1, 1995, pursuant to a local exemption for newly constructed units. This bill would require residential rent control to apply to a residential real property built to replace a previous residential real property on the same parcel if the previous residential real property was substantially damaged or destroyed by a disaster, as defined, and was subject to residential rent control at the time the residential real property was substantially damaged or destroyed.Existing law, the Housing Crisis Act of 2019, among other things, prohibits an affected city or an affected county, as defined, from approving a housing development project that will require the demolition of one or more residential dwelling units or that will require the demolition of occupied or vacant protected units, as defined, or that is located on a site where protected units were demolished in the previous 5 years, unless specified conditions are met. This bill would, for an area where a protected unit was substantially damaged or destroyed due to a disaster, as defined, prohibit an affected city or an affected county from approving a housing development project unless the project will create at least as many protected units as were substantially damaged or destroyed. By placing additional requirements on local agencies in approving a housing development project, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Existing law governs the hiring of residential dwelling units. Existing law, the Tenant Protection Act of 2019, prohibits, until January 1, 2030, an owner of residential real property from terminating the tenancy of certain tenants without just cause, either at-fault or no-fault of the tenant. The act, until January 1, 2030, also prohibits an owner of residential real property from increasing the gross rental rate for a dwelling or unit more than 5% plus the percentage change in the cost of living, as defined, or 10%, whichever is lower, of the lowest gross rental rate charged for the immediately preceding 12 months, subject to specified conditions. The act exempts certain types of residential real properties or residential circumstances from these provisions, including, among others, housing that has been issued a certificate of occupancy within the previous 15 years.
This bill would exclude housing built to replace a previous housing unit that was substantially damaged or destroyed by a disaster, as defined, and was issued a certificate of occupancy before that housing unit was substantially damaged or destroyed, from the above-described exemption from the just cause requirements and rental increase limits.
Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. Existing law, among other things, authorizes an owner of residential real property to establish the initial and all subsequent rental rates for a dwelling or unit that meets specified criteria, including a dwelling or unit that has already been exempt from the residential rent control ordinance of a public entity on or before February 1, 1995, pursuant to a local exemption for newly constructed units.
This bill would require residential rent control to apply to a residential real property built to replace a previous residential real property on the same parcel if the previous residential real property was substantially damaged or destroyed by a disaster, as defined, and was subject to residential rent control at the time the residential real property was substantially damaged or destroyed.
Existing law, the Housing Crisis Act of 2019, among other things, prohibits an affected city or an affected county, as defined, from approving a housing development project that will require the demolition of one or more residential dwelling units or that will require the demolition of occupied or vacant protected units, as defined, or that is located on a site where protected units were demolished in the previous 5 years, unless specified conditions are met.
This bill would, for an area where a protected unit was substantially damaged or destroyed due to a disaster, as defined, prohibit an affected city or an affected county from approving a housing development project unless the project will create at least as many protected units as were substantially damaged or destroyed. By placing additional requirements on local agencies in approving a housing development project, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(a)Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate a tenancy without just cause, which shall be stated in the written notice to terminate tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:
(1)All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.
(2)One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.
(b)For the purposes of this section, just cause means either of the following:
(1)At-fault just cause, which means any of the following:
(A)Default in the payment of rent.
(B)A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.
(C)Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(D)Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(E)The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.
(F)Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.
(G)Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(H)The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.
(I)Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(J)The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.
(K)When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the owner, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.
(2)No-fault just cause, which means any of the following:
(A)(i)Intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for a minimum of 12 continuous months as that persons primary residence.
(ii)For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).
(iii)This subparagraph does not apply if the intended occupant occupies a rental unit on the property or if a vacancy of a similar unit already exists at the property.
(iv)The written notice terminating a tenancy for a just cause pursuant to this subparagraph shall contain the name or names and relationship to the owner of the intended occupant. The written notice shall additionally include notification that the tenant may request proof that the intended occupant is an owner or related to the owner as defined in subclause (II) of clause (viii). The proof shall be provided upon request and may include an operating agreement and other non-public documents.
(v)Clause (i) applies only if the intended occupant moves into the rental unit within 90 days after the tenant vacates and occupies the rental unit as a primary residence for at least 12 consecutive months.
(vi)(I)If the intended occupant fails to occupy the rental unit within 90 days after the tenant vacates or fails to occupy the rental unit as their primary residence for at least 12 consecutive months, the owner shall offer the unit to the tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice.
(II)If the intended occupant moves into the rental unit within 90 days after the tenant vacates, but dies before having occupied the rental unit as a primary residence for 12 months, as required by clause (vi), this will not be considered a failure to comply with this section or a material violation of this section by the owner as provided in subdivision (h).
(vii)For a new tenancy commenced during the time periods described in clause (v), the accommodations shall be offered and rented or leased at the lawful rent in effect at the time any notice of termination of tenancy is served.
(viii)As used in this subparagraph:
(I)Intended occupant means the owner of the residential real property or the owners spouse, domestic partner, child, grandchild, parent, or grandparent, as described in clause (i).
(II)Owner means any of the following:
(ia)An owner who is a natural person that has at least a 25-percent recorded ownership interest in the property.
(ib)An owner who is a natural person who has any recorded ownership interest in the property if 100 percent of the recorded ownership is divided among owners who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
(ic)An owner who is a natural person whose recorded interest in the property is owned through a limited liability company or partnership.
(III)For purposes of subclause (II), natural person includes any of the following:
(ia)A natural person who is a settlor or beneficiary of a family trust.
(ib)If the property is owned by a limited liability company or partnership, a natural person who is a beneficial owner with at least a 25-percent ownership interest in the property.
(IV)Family trust means a revocable living trust or irrevocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
(V)Beneficial owner means a natural person or family trust for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, and any of the following applies:
(ia)The natural person exercises substantial control over a partnership or limited liability company.
(ib)The natural person owns 25 percent or more of the equity interest of a partnership or limited liability company.
(ic)The natural person receives substantial economic benefits from the assets of a partnership.
(B)Withdrawal of the residential real property from the rental market.
(C)(i)The owner complying with any of the following:
(I)An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.
(II)An order issued by a government agency or court to vacate the residential real property.
(III)A local ordinance that necessitates vacating the residential real property.
(ii)If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).
(D)(i)Intent to demolish or to substantially remodel the residential real property.
(ii)For purposes of this subparagraph, substantially remodel means either of the following that cannot be reasonably accomplished in a safe manner that allows the tenant to remain living in the place and that requires the tenant to vacate the residential real property for at least 30 consecutive days:
(I)The replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency.
(II)The abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws.
(iii)For purposes of this subparagraph, a tenant is not required to vacate the residential real property on any days where a tenant could continue living in the residential real property without violating health, safety, and habitability codes and laws. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial remodel.
(iv)A written notice terminating a tenancy for a just cause pursuant to this subparagraph shall include all of the following information:
(I)A statement informing the tenant of the owners intent to demolish the property or substantially remodel the rental unit property.
(II)The following statement:
If the substantial remodel of your unit or demolition of the property as described in this notice of termination is not commenced or completed, the owner must offer you the opportunity to re-rent your unit with a rental agreement containing the same terms as your most recent rental agreement with the owner at the rental rate that was in effect at the time you vacated. You must notify the owner within thirty (30) days of receipt of the offer to re-rent of your acceptance or rejection of the offer, and, if accepted, you must reoccupy the unit within thirty (30) days of notifying the owner of your acceptance of the offer.
(III)A description of the substantial remodel to be completed, the approximate expected duration of the substantial remodel, or if the property is to be demolished, the expected date by which the property will be demolished, together with one of the following:
(ia)A copy of the permit or permits required to undertake the substantial remodel or demolition.
(ib)Only if a notice is issued pursuant to subclause (II) of clause (ii) and the remodel does not require any permit, a copy of the signed contract with the contractor hired by the owner to complete the substantial remodel, that reasonably details the work that will be undertaken to abate the hazardous materials as described in subclause (II) of clause (ii).
(IV)A notification that if the tenant is interested in reoccupying the rental unit following the substantial remodel, the tenant shall inform the owner of the tenants interest in reoccupying the rental unit following the substantial remodel and provide to the owner the tenants address, telephone number, and email address.
(c)Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.
(d)(1)For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:
(A)Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).
(B)Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.
(2)If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant in the written termination notice of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.
(3)(A)The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.
(B)If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.
(C)The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.
(4)An owners failure to strictly comply with this subdivision shall render the notice of termination void.
(e)This section shall not apply to the following types of residential real properties or residential circumstances:
(1)Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.
(2)Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.
(3)Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
(4)Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
(5)Single-family owner-occupied residences, including both of the following:
(A)A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
(B)A mobilehome.
(6)A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
(7)Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is one of the following:
(A)A mobilehome.
(B)Housing built to replace a previous housing unit that meets all of the following criteria:
(i)The previous unit was substantially damaged or destroyed by a disaster. Disaster has the same meaning as that term is defined by Section 8680.3 of the Government Code.
(ii)The previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed by the disaster.
(iii)The previous unit was subject to this section.
(8)Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:
(A)The owner is not any of the following:
(i)A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii)A corporation.
(iii)A limited liability company in which at least one member is a corporation.
(iv)Management of a mobilehome park, as defined in Section 798.2.
(B)(i)The tenants have been provided written notice that the residential property is exempt from this section using the following statement:
This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.
(ii)(I)Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(II)For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(iii)(I)Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.
(II)For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.
(iv)Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).
(9)Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(f)An owner of residential real property subject to this section shall provide notice to the tenant as follows:
(1)(A)Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(B)For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(2)(A)Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.
(B)For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.
(3)The notification or lease provision shall be in no less than 12-point type, and shall include the following:
California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.
The notification or lease provision shall be subject to Section 1632.
(g)An owners failure to comply with any provision of this section shall render the written termination notice void.
(h)(1)An owner who attempts to recover possession of a rental unit in material violation of this section shall be liable to the tenant in a civil action for all of the following:
(A)Actual damages.
(B)In the courts discretion, reasonable attorneys fees and costs.
(C)Upon a showing that the owner has acted willfully or with oppression, fraud, or malice, up to three times the actual damages. An award may also be entered for punitive damages for the benefit of the tenant against the owner.
(2)The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may seek injunctive relief based on violations of this section.
(i)(1)This section does not apply to the following residential real property:
(A)Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.
(B)Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:
(i)The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.
(ii)The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.
(iii)The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.
(2)A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.
(3)A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.
(j)Any waiver of the rights under this section shall be void as contrary to public policy.
(k)For the purposes of this section, the following definitions shall apply:
(1)Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.
(2)Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.
(3)Tenancy means the lawful occupation of residential real property and includes a lease or sublease.
(l)This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.
(m)This section shall become operative on April 1, 2024.
(n)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 1.5.Section 1946.2 of the Civil Code is amended to read:1946.2.(a)Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate a tenancy without just cause, which shall be stated in the written notice to terminate tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:
(1)All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.
(2)One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.
(b)For purposes of this section, just cause means either of the following:
(1)At-fault just cause, which means any of the following:
(A)Default in the payment of rent.
(B)A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.
(C)Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(D)Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(E)The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.
(F)Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.
(G)Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(H)The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.
(I)Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(J)The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.
(K)When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the owner, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.
(2)No-fault just cause, which means any of the following:
(A)(i)Intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for a minimum of 12 continuous months as that persons primary residence.
(ii)For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).
(iii)This subparagraph does not apply if the intended occupant occupies a rental unit on the property or if a vacancy of a similar unit already exists at the property.
(iv)The written notice terminating a tenancy for a just cause pursuant to this subparagraph shall contain the name or names and relationship to the owner of the intended occupant. The written notice shall additionally include notification that the tenant may request proof that the intended occupant is an owner or related to the owner as defined in subclause (II) of clause (viii). The proof shall be provided upon request and may include an operating agreement and other non-public nonpublic documents.
(v)Clause (i) applies only if the intended occupant moves into the rental unit within 90 days after the tenant vacates and occupies the rental unit as a primary residence for at least 12 consecutive months.
(vi)(I)If the intended occupant fails to occupy the rental unit within 90 days after the tenant vacates or fails to occupy the rental unit as their primary residence for at least 12 consecutive months, the owner shall offer the unit to the tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice.
(II)If the intended occupant moves into the rental unit within 90 days after the tenant vacates, but dies before having occupied the rental unit as a primary residence for 12 months, as required by clause (vi), this will not be considered a failure to comply with this section or a material violation of this section by the owner as provided in subdivision (h).
(vii)For a new tenancy commenced during the time periods described in clause (v), the accommodations shall be offered and rented or leased at the lawful rent in effect at the time any notice of termination of tenancy is served.
(viii)As used in this subparagraph:
(I)Intended occupant means the owner of the residential real property or the owners spouse, domestic partner, child, grandchild, parent, or grandparent, as described in clause (i).
(II)Owner means any of the following:
(ia)An owner who is a natural person that has at least a 25-percent recorded ownership interest in the property.
(ib)An owner who is a natural person who has any recorded ownership interest in the property if 100 percent of the recorded ownership is divided among owners who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
(ic)An owner who is a natural person whose recorded interest in the property is owned through a limited liability company or partnership.
(III)For purposes of subclause (II), natural person includes any of the following:
(ia)A natural person who is a settlor or beneficiary of a family trust.
(ib)If the property is owned by a limited liability company or partnership, a natural person who is a beneficial owner with at least a 25-percent ownership interest in the property.
(IV)Family trust means a revocable living trust or irrevocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
(V)Beneficial owner means a natural person or family trust for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, and any of the following applies:
(ia)The natural person exercises substantial control over a partnership or limited liability company.
(ib)The natural person owns 25 percent or more of the equity interest of a partnership or limited liability company.
(ic)The natural person receives substantial economic benefits from the assets of a partnership.
(B)Withdrawal of the residential real property from the rental market.
(C)(i)The owner complying with any of the following:
(I)An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.
(II)An order issued by a government agency or court to vacate the residential real property.
(III)A local ordinance that necessitates vacating the residential real property.
(ii)If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).
(D)(i)Intent to demolish or to substantially remodel the residential real property.
(ii)For purposes of this subparagraph, substantially remodel means either of the following that cannot be reasonably accomplished in a safe manner that allows the tenant to remain living in the place and that requires the tenant to vacate the residential real property for at least 30 consecutive days:
(I)The replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency.
(II)The abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws.
(iii)For purposes of this subparagraph, a tenant is not required to vacate the residential real property on any days where a tenant could continue living in the residential real property without violating health, safety, and habitability codes and laws. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial remodel.
(iv)A written notice terminating a tenancy for a just cause pursuant to this subparagraph shall include all of the following information:
(I)A statement informing the tenant of the owners intent to demolish the property or substantially remodel the rental unit property.
(II)The following statement:
If the substantial remodel of your unit or demolition of the property as described in this notice of termination is not commenced or completed, the owner must offer you the opportunity to re-rent your unit with a rental agreement containing the same terms as your most recent rental agreement with the owner at the rental rate that was in effect at the time you vacated. You must notify the owner within thirty (30) days of receipt of the offer to re-rent of your acceptance or rejection of the offer, and, if accepted, you must reoccupy the unit within thirty (30) days of notifying the owner of your acceptance of the offer.
(III)A description of the substantial remodel to be completed, the approximate expected duration of the substantial remodel, or if the property is to be demolished, the expected date by which the property will be demolished, together with one of the following:
(ia)A copy of the permit or permits required to undertake the substantial remodel or demolition.
(ib)Only if a notice is issued pursuant to subclause (II) of clause (ii) and the remodel does not require any permit, a copy of the signed contract with the contractor hired by the owner to complete the substantial remodel, that reasonably details the work that will be undertaken to abate the hazardous materials as described in subclause (II) of clause (ii).
(IV)A notification that if the tenant is interested in reoccupying the rental unit following the substantial remodel, the tenant shall inform the owner of the tenants interest in reoccupying the rental unit following the substantial remodel and provide to the owner the tenants address, telephone number, and email address.
(c)Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.
(d)(1)For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:
(A)Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).
(B)Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.
(2)If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant in the written termination notice of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.
(3)(A)The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.
(B)If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.
(C)The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.
(4)An owners failure to strictly comply with this subdivision shall render the notice of termination void.
(e)This section shall not apply to the following types of residential real properties or residential circumstances:
(1)Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.
(2)Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.
(3)Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
(4)Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
(5)Single-family owner-occupied residences, including both of the following:
(A)A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
(B)A mobilehome.
(6)A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
(7)Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome. one of the following:
(A)A mobilehome.
(B)Housing built to replace a previous housing unit that meets all of the following criteria:
(i)The previous unit was substantially damaged or destroyed by a disaster. Disaster has the same meaning as that term is defined by Section 8680.3 of the Government Code.
(ii)The previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed by the disaster.
(iii)The previous unit was subject to this section.
(8)Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:
(A)The owner is not any of the following:
(i)A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii)A corporation.
(iii)A limited liability company in which at least one member is a corporation.
(iv)Management of a mobilehome park, as defined in Section 798.2.
(B)(i)The tenants have been provided written notice that the residential property is exempt from this section using the following statement:
This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.
(ii)(I)Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(II)For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(iii)(I)Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.
(II)For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.
(iv)Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).
(9)Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(f)An owner of residential real property subject to this section shall provide notice to the tenant as follows:
(1)(A)Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, in the lease or rental agreement, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(B)For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(2)(A)Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.
(B)For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.
(3)The notification or lease provision shall be in no less than 12-point type, and shall include the following:
California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.
The notification or lease provision shall be subject to Section 1632.
(g)An owners failure to comply with any provision of this section shall render the written termination notice void.
(h)(1)An owner who attempts to recover possession of a rental unit in material violation of this section shall be liable to the tenant in a civil action for all of the following:
(A)Actual damages.
(B)In the courts discretion, reasonable attorneys fees and costs.
(C)Upon a showing that the owner has acted willfully or with oppression, fraud, or malice, up to three times the actual damages. An award may also be entered for punitive damages for the benefit of the tenant against the owner.
(2)The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may seek injunctive relief based on violations of this section.
(i)(1)This section does not apply to the following residential real property:
(A)Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.
(B)Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:
(i)The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.
(ii)The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.
(iii)The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.
(2)A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.
(3)A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.
(j)Any waiver of the rights under this section shall be void as contrary to public policy.
(k)For the purposes of this section, the following definitions shall apply:
(1)Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.
(2)Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.
(3)Tenancy means the lawful occupation of residential real property and includes a lease or sublease.
(l)This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.
(m)This section shall become operative on April 1, 2024.
(n)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 1946.2 of the Civil Code proposed by both this bill and Assembly Bill 1529. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2026, (2) each bill amends Section 1946.2 of the Civil Code, and (3) this bill is enacted after Assembly Bill 1529, in which case Section 1 of this bill shall not become operative.
(a)Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate a tenancy without just cause, which shall be stated in the written notice to terminate tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:
(1)All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.
(2)One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.
(b)For purposes of this section, just cause means either of the following:
(1)At-fault just cause, which means any of the following:
(A)Default in the payment of rent.
(B)A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.
(C)Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(D)Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(E)The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.
(F)Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.
(G)Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(H)The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.
(I)Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(J)The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.
(K)When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the owner, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.
(2)No-fault just cause, which means any of the following:
(A)(i)Intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for a minimum of 12 continuous months as that persons primary residence.
(ii)For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).
(iii)This subparagraph does not apply if the intended occupant occupies a rental unit on the property or if a vacancy of a similar unit already exists at the property.
(iv)The written notice terminating a tenancy for a just cause pursuant to this subparagraph shall contain the name or names and relationship to the owner of the intended occupant. The written notice shall additionally include notification that the tenant may request proof that the intended occupant is an owner or related to the owner as defined in subclause (II) of clause (viii). The proof shall be provided upon request and may include an operating agreement and other non-public documents.
(v)Clause (i) applies only if the intended occupant moves into the rental unit within 90 days after the tenant vacates and occupies the rental unit as a primary residence for at least 12 consecutive months.
(vi)(I)If the intended occupant fails to occupy the rental unit within 90 days after the tenant vacates or fails to occupy the rental unit as their primary residence for at least 12 consecutive months, the owner shall offer the unit to the tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice.
(II)If the intended occupant moves into the rental unit within 90 days after the tenant vacates, but dies before having occupied the rental unit as a primary residence for 12 months, as required by clause (vi), this will not be considered a failure to comply with this section or a material violation of this section by the owner as provided in subdivision (h).
(vii)For a new tenancy commenced during the time periods described in clause (v), the accommodations shall be offered and rented or leased at the lawful rent in effect at the time any notice of termination of tenancy is served.
(viii)As used in this subparagraph:
(I)Intended occupant means the owner of the residential real property or the owners spouse, domestic partner, child, grandchild, parent, or grandparent, as described in clause (i).
(II)Owner means any of the following:
(ia)An owner who is a natural person that has at least a 25-percent recorded ownership interest in the property.
(ib)An owner who is a natural person who has any recorded ownership interest in the property if 100 percent of the recorded ownership is divided among owners who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
(ic)An owner who is a natural person whose recorded interest in the property is owned through a limited liability company or partnership.
(III)For purposes of subclause (II), natural person includes any of the following:
(ia)A natural person who is a settlor or beneficiary of a family trust.
(ib)If the property is owned by a limited liability company or partnership, a natural person who is a beneficial owner with at least a 25-percent ownership interest in the property.
(IV)Family trust means a revocable living trust or irrevocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
(V)Beneficial owner means a natural person or family trust for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, and any of the following applies:
(ia)The natural person exercises substantial control over a partnership or limited liability company.
(ib)The natural person owns 25 percent or more of the equity interest of a partnership or limited liability company.
(ic)The natural person receives substantial economic benefits from the assets of a partnership.
(B)Withdrawal of the residential real property from the rental market.
(C)(i)The owner complying with any of the following:
(I)An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.
(II)An order issued by a government agency or court to vacate the residential real property.
(III)A local ordinance that necessitates vacating the residential real property.
(ii)If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).
(D)(i)Intent to demolish or to substantially remodel the residential real property.
(ii)For purposes of this subparagraph, substantially remodel means either of the following that cannot be reasonably accomplished in a safe manner that allows the tenant to remain living in the place and that requires the tenant to vacate the residential real property for at least 30 consecutive days:
(I)The replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency.
(II)The abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws.
(iii)For purposes of this subparagraph, a tenant is not required to vacate the residential real property on any days where a tenant could continue living in the residential real property without violating health, safety, and habitability codes and laws. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial remodel.
(iv)A written notice terminating a tenancy for a just cause pursuant to this subparagraph shall include all of the following information:
(I)A statement informing the tenant of the owners intent to demolish the property or substantially remodel the rental unit property.
(II)The following statement:
If the substantial remodel of your unit or demolition of the property as described in this notice of termination is not commenced or completed, the owner must offer you the opportunity to re-rent your unit with a rental agreement containing the same terms as your most recent rental agreement with the owner at the rental rate that was in effect at the time you vacated. You must notify the owner within thirty (30) days of receipt of the offer to re-rent of your acceptance or rejection of the offer, and, if accepted, you must reoccupy the unit within thirty (30) days of notifying the owner of your acceptance of the offer.
(III)A description of the substantial remodel to be completed, the approximate expected duration of the substantial remodel, or if the property is to be demolished, the expected date by which the property will be demolished, together with one of the following:
(ia)A copy of the permit or permits required to undertake the substantial remodel or demolition.
(ib)Only if a notice is issued pursuant to subclause (II) of clause (ii) and the remodel does not require any permit, a copy of the signed contract with the contractor hired by the owner to complete the substantial remodel, that reasonably details the work that will be undertaken to abate the hazardous materials as described in subclause (II) of clause (ii).
(IV)A notification that if the tenant is interested in reoccupying the rental unit following the substantial remodel, the tenant shall inform the owner of the tenants interest in reoccupying the rental unit following the substantial remodel and provide to the owner the tenants address, telephone number, and email address.
(c)Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.
(d)(1)For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:
(A)Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).
(B)Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.
(2)If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant in the written termination notice of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.
(3)(A)The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.
(B)If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.
(C)The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.
(4)An owners failure to strictly comply with this subdivision shall render the notice of termination void.
(e)This section shall not apply to the following types of residential real properties or residential circumstances:
(1)Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.
(2)Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.
(3)Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
(4)Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
(5)Single-family owner-occupied residences, including both of the following:
(A)A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
(B)A mobilehome.
(6)A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
(7)Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is one of the following:
(A)A mobilehome.
(B)Housing built to replace a previous housing unit that meets both all of the following criteria:
(i)The previous unit was substantially damaged or destroyed by a disaster. Disaster has the same meaning as that term is defined by Section 8680.3 of the Government Code.
(ii)The previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed by the disaster.
(iii)The previous unit was subject to this section.
(8)Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:
(A)The owner is not any of the following:
(i)A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii)A corporation.
(iii)A limited liability company in which at least one member is a corporation.
(iv)Management of a mobilehome park, as defined in Section 798.2.
(B)(i)The tenants have been provided written notice that the residential property is exempt from this section using the following statement:
This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.
(ii)(I)Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(II)For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(iii)(I)Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.
(II)For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.
(iv)Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).
(9)Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(f)An owner of residential real property subject to this section shall provide notice to the tenant as follows:
(1)(A)Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(B)For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(2)(A)Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.
(B)For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.
(3)The notification or lease provision shall be in no less than 12-point type, and shall include the following:
California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.
The notification or lease provision shall be subject to Section 1632.
(g)An owners failure to comply with any provision of this section shall render the written termination notice void.
(h)(1)An owner who attempts to recover possession of a rental unit in material violation of this section shall be liable to the tenant in a civil action for all of the following:
(A)Actual damages.
(B)In the courts discretion, reasonable attorneys fees and costs.
(C)Upon a showing that the owner has acted willfully or with oppression, fraud, or malice, up to three times the actual damages. An award may also be entered for punitive damages for the benefit of the tenant against the owner.
(2)The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may seek injunctive relief based on violations of this section.
(i)(1)This section does not apply to the following residential real property:
(A)Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.
(B)Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:
(i)The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.
(ii)The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.
(iii)The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.
(2)A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.
(3)A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.
(j)Any waiver of the rights under this section shall be void as contrary to public policy.
(k)For the purposes of this section, the following definitions shall apply:
(1)Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.
(2)Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.
(3)Tenancy means the lawful occupation of residential real property and includes a lease or sublease.
(l)This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.
(m)This section shall become operative on April 1, 2024.
(n)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
All matter omitted in this version of the bill appears in the bill as introduced in the Senate, February 19, 2025. (JR11)(a)Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate a tenancy without just cause, which shall be stated in the written notice to terminate tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision shall only apply if either of the following are satisfied:
(1)All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more.
(2)One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.
(b)For purposes of this section, just cause means either of the following:
(1)At-fault just cause, which means any of the following:
(A)Default in the payment of rent.
(B)A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.
(C)Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(D)Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(E)The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.
(F)Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property.
(G)Assigning or subletting the premises in violation of the tenants lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(H)The tenants refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.
(I)Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(J)The employee, agent, or licensees failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.
(K)When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenants intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the owner, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.
(2)No-fault just cause, which means any of the following:
(A)(i)Intent to occupy the residential real property by the owner or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents for a minimum of 12 continuous months as that persons primary residence.
(ii)For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owners spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1).
(iii)This subparagraph does not apply if the intended occupant occupies a rental unit on the property or if a vacancy of a similar unit already exists at the property.
(iv)The written notice terminating a tenancy for a just cause pursuant to this subparagraph shall contain the name or names and relationship to the owner of the intended occupant. The written notice shall additionally include notification that the tenant may request proof that the intended occupant is an owner or related to the owner as defined in subclause (II) of clause (viii). The proof shall be provided upon request and may include an operating agreement and other non-public documents.
(v)Clause (i) applies only if the intended occupant moves into the rental unit within 90 days after the tenant vacates and occupies the rental unit as a primary residence for at least 12 consecutive months.
(vi)(I)If the intended occupant fails to occupy the rental unit within 90 days after the tenant vacates or fails to occupy the rental unit as their primary residence for at least 12 consecutive months, the owner shall offer the unit to the tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice.
(II)If the intended occupant moves into the rental unit within 90 days after the tenant vacates, but dies before having occupied the rental unit as a primary residence for 12 months, as required by clause (vi), this will not be considered a failure to comply with this section or a material violation of this section by the owner as provided in subdivision (h).
(vii)For a new tenancy commenced during the time periods described in clause (v), the accommodations shall be offered and rented or leased at the lawful rent in effect at the time any notice of termination of tenancy is served.
(viii)As used in this subparagraph:
(I)Intended occupant means the owner of the residential real property or the owners spouse, domestic partner, child, grandchild, parent, or grandparent, as described in clause (i).
(II)Owner means any of the following:
(ia)An owner who is a natural person that has at least a 25-percent recorded ownership interest in the property.
(ib)An owner who is a natural person who has any recorded ownership interest in the property if 100 percent of the recorded ownership is divided among owners who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
(ic)An owner who is a natural person whose recorded interest in the property is owned through a limited liability company or partnership.
(III)For purposes of subclause (II), natural person includes any of the following:
(ia)A natural person who is a settlor or beneficiary of a family trust.
(ib)If the property is owned by a limited liability company or partnership, a natural person who is a beneficial owner with at least a 25-percent ownership interest in the property.
(IV)Family trust means a revocable living trust or irrevocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
(V)Beneficial owner means a natural person or family trust for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, and any of the following applies:
(ia)The natural person exercises substantial control over a partnership or limited liability company.
(ib)The natural person owns 25 percent or more of the equity interest of a partnership or limited liability company.
(ic)The natural person receives substantial economic benefits from the assets of a partnership.
(B)Withdrawal of the residential real property from the rental market.
(C)(i)The owner complying with any of the following:
(I)An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.
(II)An order issued by a government agency or court to vacate the residential real property.
(III)A local ordinance that necessitates vacating the residential real property.
(ii)If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate under clause (i), the tenant shall not be entitled to relocation assistance as outlined in paragraph (3) of subdivision (d).
(D)(i)Intent to demolish or to substantially remodel the residential real property.
(ii)For purposes of this subparagraph, substantially remodel means either of the following that cannot be reasonably accomplished in a safe manner that allows the tenant to remain living in the place and that requires the tenant to vacate the residential real property for at least 30 consecutive days:
(I)The replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency.
(II)The abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws.
(iii)For purposes of this subparagraph, a tenant is not required to vacate the residential real property on any days where a tenant could continue living in the residential real property without violating health, safety, and habitability codes and laws. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as substantial remodel.
(iv)A written notice terminating a tenancy for a just cause pursuant to this subparagraph shall include all of the following information:
(I)A statement informing the tenant of the owners intent to demolish the property or substantially remodel the rental unit property.
(II)The following statement:
If the substantial remodel of your unit or demolition of the property as described in this notice of termination is not commenced or completed, the owner must offer you the opportunity to re-rent your unit with a rental agreement containing the same terms as your most recent rental agreement with the owner at the rental rate that was in effect at the time you vacated. You must notify the owner within thirty (30) days of receipt of the offer to re-rent of your acceptance or rejection of the offer, and, if accepted, you must reoccupy the unit within thirty (30) days of notifying the owner of your acceptance of the offer.
(III)A description of the substantial remodel to be completed, the approximate expected duration of the substantial remodel, or if the property is to be demolished, the expected date by which the property will be demolished, together with one of the following:
(ia)A copy of the permit or permits required to undertake the substantial remodel or demolition.
(ib)Only if a notice is issued pursuant to subclause (II) of clause (ii) and the remodel does not require any permit, a copy of the signed contract with the contractor hired by the owner to complete the substantial remodel, that reasonably details the work that will be undertaken to abate the hazardous materials as described in subclause (II) of clause (ii).
(IV)A notification that if the tenant is interested in reoccupying the rental unit following the substantial remodel, the tenant shall inform the owner of the tenants interest in reoccupying the rental unit following the substantial remodel and provide to the owner the tenants address, telephone number, and email address.
(c)Before an owner of residential real property issues a notice to terminate a tenancy for just cause that is a curable lease violation, the owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.
(d)(1)For a tenancy for which just cause is required to terminate the tenancy under subdivision (a), if an owner of residential real property issues a termination notice based on a no-fault just cause described in paragraph (2) of subdivision (b), the owner shall, regardless of the tenants income, at the owners option, do one of the following:
(A)Assist the tenant to relocate by providing a direct payment to the tenant as described in paragraph (3).
(B)Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.
(2)If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant in the written termination notice of the tenants right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.
(3)(A)The amount of relocation assistance or rent waiver shall be equal to one month of the tenants rent that was in effect when the owner issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice.
(B)If a tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.
(C)The relocation assistance or rent waiver required by this subdivision shall be credited against any other relocation assistance required by any other law.
(4)An owners failure to strictly comply with this subdivision shall render the notice of termination void.
(e)This section shall not apply to the following types of residential real properties or residential circumstances:
(1)Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940.
(2)Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.
(3)Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
(4)Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
(5)Single-family owner-occupied residences, including both of the following:
(A)A residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
(B)A mobilehome.
(6)A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
(7)Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a one of the following:
(A)A mobilehome.
(B)Housing built to replace a previous housing unit that meets both of the following criteria:
(i)The previous unit was substantially damaged or destroyed by a disaster. Disaster has the same meaning as that term is defined by Section 8680.3 of the Government Code.
(ii)The previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed by the disaster.
(8)Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:
(A)The owner is not any of the following:
(i)A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii)A corporation.
(iii)A limited liability company in which at least one member is a corporation.
(iv)Management of a mobilehome park, as defined in Section 798.2.
(B)(i)The tenants have been provided written notice that the residential property is exempt from this section using the following statement:
This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.
(ii)(I)Except as provided in subclause (II), for a tenancy existing before July 1, 2020, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(II)For a tenancy in a mobilehome existing before July 1, 2022, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(iii)(I)Except as provided in subclause (II), for any tenancy commenced or renewed on or after July 1, 2020, the notice required under clause (i) must be provided in the rental agreement.
(II)For any tenancy in a mobilehome commenced or renewed on or after July 1, 2022, the notice required under clause (i) shall be provided in the rental agreement.
(iv)Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b).
(9)Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(f)An owner of residential real property subject to this section shall provide notice to the tenant as follows:
(1)(A)Except as provided in subparagraph (B), for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(B)For a tenancy in a mobilehome commenced or renewed on or after July 1, 2022, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(2)(A)Except as provided in subparagraph (B), for a tenancy existing prior to July 1, 2020, by written notice to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement.
(B)For a tenancy in a mobilehome existing prior to July 1, 2022, by written notice to the tenant no later than August 1, 2022, or as an addendum to the lease or rental agreement.
(3)The notification or lease provision shall be in no less than 12-point type, and shall include the following:
California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.
The notification or lease provision shall be subject to Section 1632.
(g)An owners failure to comply with any provision of this section shall render the written termination notice void.
(h)(1)An owner who attempts to recover possession of a rental unit in material violation of this section shall be liable to the tenant in a civil action for all of the following:
(A)Actual damages.
(B)In the courts discretion, reasonable attorneys fees and costs.
(C)Upon a showing that the owner has acted willfully or with oppression, fraud, or malice, up to three times the actual damages. An award may also be entered for punitive damages for the benefit of the tenant against the owner.
(2)The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may seek injunctive relief based on violations of this section.
(i)(1)This section does not apply to the following residential real property:
(A)Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted on or before September 1, 2019, in which case the local ordinance shall apply.
(B)Residential real property subject to a local ordinance requiring just cause for termination of a residential tenancy adopted or amended after September 1, 2019, that is more protective than this section, in which case the local ordinance shall apply. For purposes of this subparagraph, an ordinance is more protective if it meets all of the following criteria:
(i)The just cause for termination of a residential tenancy under the local ordinance is consistent with this section.
(ii)The ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.
(iii)The local government has made a binding finding within their local ordinance that the ordinance is more protective than the provisions of this section.
(2)A residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and this section.
(3)A local ordinance adopted after September 1, 2019, that is less protective than this section shall not be enforced unless this section is repealed.
(j)Any waiver of the rights under this section shall be void as contrary to public policy.
(k)For the purposes of this section, the following definitions shall apply:
(1)Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.
(2)Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.
(3)Tenancy means the lawful occupation of residential real property and includes a lease or sublease.
(l)This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.
(m)This section shall become operative on April 1, 2024.
(n)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.Section 1947.12 of the Civil Code is amended to read:1947.12.(a)(1) Subject to subdivision (b), an owner of residential real property shall not, over the course of any 12-month period, increase the gross rental rate for a dwelling or a unit more than 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower, of the lowest gross rental rate charged for that dwelling or unit at any time during the 12 months prior to the effective date of the increase. In determining the lowest gross rental amount pursuant to this section, any rent discounts, incentives, concessions, or credits offered by the owner of such unit of residential real property and accepted by the tenant shall be excluded. The gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits shall be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement.
(2)If the same tenant remains in occupancy of a unit of residential real property over any 12-month period, the gross rental rate for the unit of residential real property shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this subdivision governing gross rental rate increase.
(b)For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the residential real property, the owner may establish the initial rental rate not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial rental rate has been established.
(c)A tenant of residential real property subject to this section shall not enter into a sublease that results in a total rent for the premises that exceeds the allowable rental rate authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the tenants interest where otherwise prohibited.
(d)This section shall not apply to the following residential real properties:
(1)Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.
(2)Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
(3)Housing subject to rent or price control through a public entitys valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).
(4)Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a one of the following:
(A)A mobilehome.
(B)Housing built to replace a previous housing unit that meets both of the following criteria:
(i)The previous unit was substantially damaged or destroyed by a disaster. Disaster has the same meaning as that term is defined by Section 8680.3 of the Government Code.
(ii)The previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed by the disaster.
(5)Residential real property that is alienable separate from the title to any other dwelling unit, including a mobilehome, provided that both of the following apply:
(A)The owner is not any of the following:
(i)A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
(ii)A corporation.
(iii)A limited liability company in which at least one member is a corporation.
(iv)Management of a mobilehome park, as defined in Section 798.2.
(B)(i)The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:
This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.
(ii)For a tenancy existing before July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(iii)For a tenancy commenced or renewed on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, the notice required under clause (i) must be provided in the rental agreement.
(iv)Addition of a provision containing the notice required under clause (i) to any new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1) of subdivision (b) of Section 1946.2.
(6)A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owners principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
(e)An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each tenant in accordance with Section 827.
(f)(1)On or before January 1, 2030, the Legislative Analysts Office shall report to the Legislature regarding the effectiveness of this section and Section 1947.13. The report shall include, but not be limited to, the impact of the rental rate cap pursuant to subdivision (a) on the housing market within the state.
(2)The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(g)For the purposes of this section, the following definitions shall apply:
(1)Consumer Price Index for All Urban Consumers for All Items means the following:
(A)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, which are as follows:
(i)The CPI-U for the Los Angeles-Long Beach-Anaheim metropolitan area covering the Counties of Los Angeles and Orange.
(ii)The CPI-U for the Riverside-San Bernardino-Ontario metropolitan area covering the Counties of Riverside and San Bernardino.
(iii)The CPI-U for the San Diego-Carlsbad metropolitan area covering the County of San Diego.
(iv)The CPI-U for the San Francisco-Oakland-Hayward metropolitan area covering the Counties of Alameda, Contra Costa, Marin, San Francisco, and San Mateo.
(v)Any successor metropolitan area index to any of the indexes listed in clauses (i) to (iv), inclusive.
(B)If the United States Bureau of Labor Statistics 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.
(C)On or after January 1, 2021, if the United States Bureau of Labor Statistics publishes a CPI-U index for one or more metropolitan areas not listed in subparagraph (A), that CPI-U index shall 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, as described in subparagraph (B) of paragraph (3), is first published.
(2)Owner includes any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.
(3)(A)Percentage change in the cost of living means the percentage change, computed pursuant to subparagraph (B), in the applicable, as determined pursuant to paragraph (1), Consumer Price Index for All Urban Consumers for All Items.
(B)(i)For rent increases that take effect before August 1 of any calendar year, the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that.
(ii)For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:
(I)The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year.
(II)If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year.
(iii)The percentage change shall be rounded to the nearest one-tenth of 1 percent.
(4)Residential real property means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.
(5)Tenancy means the lawful occupation of residential real property and includes a lease or sublease.
(h)(1)This section shall apply to all rent increases subject to subdivision (a) occurring on or after March 15, 2019, except as provided in subdivision (i).
(2)In the event that an owner has increased the rent by more than the amount permissible under subdivision (a) between March 15, 2019, and January 1, 2020, both of the following shall apply:
(A)The applicable rent on January 1, 2020, shall be the rent as of March 15, 2019, plus the maximum permissible increase under subdivision (a).
(B)An owner shall not be liable to the tenant for any corresponding rent overpayment.
(3)An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after March 15, 2019, but prior to January 1, 2020, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of March 15, 2019, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).
(i)(1)Notwithstanding subdivision (h), this section shall apply only to rent increases for a tenancy in a mobilehome subject to subdivision (a) occurring on or after February 18, 2021.
(2)In the event that an owner has increased the rent for a tenancy in a mobilehome by more than the amount permissible under subdivision (a) between February 18, 2021, and January 1, 2022, both of the following shall apply:
(A)The applicable rent on January 1, 2022, shall be the rent as of February 18, 2021, plus the maximum permissible increase under subdivision (a).
(B)An owner shall not be liable to the tenant for any corresponding rent overpayment.
(3)An owner of residential real property subject to subdivision (a) who increased the rental rate on that residential real property on or after February 18, 2021, but prior to January 1, 2022, by an amount less than the rental rate increase permitted by subdivision (a) shall be allowed to increase the rental rate twice, as provided in paragraph (2) of subdivision (a), within 12 months of February 18, 2021, but in no event shall that rental rate increase exceed the maximum rental rate increase permitted by subdivision (a).
(j)This section shall not apply to a homeowner of a mobilehome, as defined in Section 798.9.
(k)(1)An owner who demands, accepts, receives, or retains any payment of rent in excess of the maximum rent allowed by this section shall be liable in a civil action to the tenant from whom those payments are demanded, accepted, received, or retained for all of the following:
(A)Injunctive relief.
(B)Damages in the amount by which any payment demanded, accepted, received, or retained exceeds the maximum allowable rent.
(C)In the courts discretion, reasonable attorneys fees and costs.
(D)Upon a showing that the owner has acted willfully or with oppression, fraud, or malice, damages up to three times the amount by which any payment demanded, accepted, received, or retained exceeds the maximum allowable rent.
(2)The Attorney General, in the name of the people of the State of California, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, in the name of the city or county, may do both of the following:
(A)Enforce the provisions of this section.
(B)Seek injunctive relief based on violations of this section.
(3)In an action pursuant to this subdivision for injunctive relief, it shall be presumed that a tenant suffers irreparable harm through violation of this section.
(4)An action pursuant to this subdivision shall not be brought after the date that is three years from the date on which the cause of action accrued.
(l)Any waiver of the rights under this section shall be void as contrary to public policy.
(m)(1)The Legislature finds and declares that the unique circumstances of the current housing crisis require a statewide response to address rent gouging by establishing statewide limitations on gross rental rate increases.
(2)It is the intent of the Legislature that this section should apply only for the limited time needed to address the current statewide housing crisis, as described in paragraph (1). This section is not intended to expand or limit the authority of local governments to establish local policies regulating rents consistent with Chapter 2.7 (commencing with Section 1954.50), nor is it a statement regarding the appropriate, allowable rental rate increase when a local government adopts a policy regulating rent that is otherwise consistent with Chapter 2.7 (commencing with Section 1954.50).
(3)Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50), or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter.
(n)This section shall become operative on April 1, 2024.
(o)This section shall remain in effect until January 1, 2030, and as of that date is repealed.
SEC. 3.Section 1954.536 is added to the Civil Code, to read:1954.536.Notwithstanding Section 1954.52 or any law, residential rent control shall apply to a residential real property built to replace a previous residential real property on the same parcel, if both of the following apply:
(a)The previous residential real property was substantially damaged or destroyed by a disaster. Disaster has the same meaning as the term is defined in Section 8680.3 of the Government Code.
(b)The previous residential real property was subject to residential rent control at the time the residential real property was substantially damaged or destroyed.
SEC. 4.Section 66300.5 of the Government Code is amended to read:66300.5.For purposes of this article:
(a)(1)(A)Except as otherwise provided in subparagraph (B), affected city means a city, including a charter city, that the Department of Housing and Community Development determines, pursuant to subdivision (d), is in an urbanized area or urban cluster, as designated by the United States Census Bureau.
(B)Notwithstanding subparagraph (A), affected city does not include any city that has a population of 5,000 or less and is not located within an urbanized area, as designated by the United States Census Bureau.
(2)Affected county means a census-designated place, based on the 2013-2017 American Community Survey 5-year Estimates, that is wholly located within the boundaries of an urbanized area, as designated by the United States Census Bureau.
(3)Notwithstanding any other law, affected county and affected city includes the electorate of an affected county or city exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the affected county or city.
(b)Affordable housing cost has the same meaning as defined in Section 50052.5 of the Health and Safety Code.
(c)Affordable rent has the same meaning as defined in Section 50053 of the Health and Safety Code.
(d)Disaster has the same meaning as that term is defined by Section 8680.3.
(d)(e)Equivalent size means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
(e)(f)Housing development project has the same meaning as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(f)(g)Persons and families of low or moderate income has the same meaning as defined in Section 50093 of the Health and Safety Code.
(g)(h)Lower income households has the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(h)(i)Protected units means any of the following:
(1)Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
(2)Residential dwelling units that are or were subject to any form of rent or price control through a public entitys valid exercise of its police power within the past five years.
(3)Residential dwelling units that are or were rented by lower or very low income households within the past five years.
(4)Residential dwelling units that were withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 within the past 10 years.
(i)(j)(1)Replace shall have the same meaning as provided in subparagraphs (B) and (C) of paragraph (3) of subdivision (c) of Section 65915.
(2)Notwithstanding paragraph (1), for purposes of a development project that consists of a single residential unit on a site with a single protected unit, replace shall mean that the protected unit is replaced with a unit of any size at any income level.
(j)(k)Very low income households has the same meaning as defined in Section 50105 of the Health and Safety Code.
SEC. 5.Section 66300.7 is added to the Government Code, to read:66300.7.Notwithstanding any law, for an area where a protected unit was substantially damaged or destroyed due to a disaster, an affected city or an affected county shall not approve a housing development project unless the project will create at least as many protected units as were destroyed.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
CORRECTIONS: HeadingLine 2.|
Date
|
Status
|
|---|---|
| Sep 10, 2025 | Ordered to inactive file on request of Assembly Member Aguiar-Curry. |
| Sep 3, 2025 | Read third time and amended. |
| Sep 3, 2025 | Ordered to third reading. |
| Jul 17, 2025 | Read second time. Ordered to third reading. |
| Jul 16, 2025 | From committee: Do pass. (Ayes 8. Noes 3.) (July 15). |
| Jul 9, 2025 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 5.) (July 9). Re-referred to Com. on JUD. |
| Jul 3, 2025 | Joint Rule 62(a) suspended. |
| Jul 2, 2025 | July 2 set for first hearing. Held in committee without recommendation. |
| Jun 9, 2025 | Referred to Coms. on H. & C.D. and JUD. |
| Jun 4, 2025 | In Assembly. Read first time. Held at Desk. |
| Jun 3, 2025 | Read third time. Passed. (Ayes 27. Noes 10. Page 1457.) Ordered to the Assembly. |
| Apr 10, 2025 | Read second time. Ordered to third reading. |
| Apr 9, 2025 | Withdrawn from committee. |
| Apr 9, 2025 | Ordered to second reading. |
| Apr 9, 2025 | From committee: Do pass and re-refer to Com. on L. GOV. (Ayes 10. Noes 2. Page 706.) (April 8). Re-referred to Com. on L. GOV. |
| Apr 1, 2025 | Set for hearing April 8. |
| Mar 28, 2025 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD. |
| Mar 19, 2025 | Referred to Coms. on JUD. and L. GOV. |
| Feb 20, 2025 | From printer. May be acted upon on or after March 22. |
| Feb 20, 2025 | (Corrected February 27). |
| Feb 19, 2025 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 15, 2025 | Do pass. | Assembly Standing Committee on Judiciary |
Passed |
|
| Jul 9, 2025 | Do pass and be re-referred to the Committee on [Judiciary] | Assembly Standing Committee on Housing and Community Development |
Passed |
|
| Jun 3, 2025 | Senate 3rd Reading SB522 Wahab et al. | Senate Floor |
Passed |
|
| Apr 8, 2025 | Do pass, but first be re-referred to the Committee on [Local Government] | Senate Standing Committee on Judiciary |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Aids Healthcare Foundation | ** Support | |
| Alliance for Children's Rights | ** Support | |
| Alliance Of Californians For Community Empowerment | ** Support | |
| Apartment Association of Greater Los Angeles | ** Against | |
| Apartment Association Of Orange County | ** Against | |
| Apartment Association, California Southern Cities | ** Against | |
| Berkeley Property Owners Association | ** Against | |
| Building Owners and Managers Association of California | ** Against | |
| California Apartment Association | ** Against | |
| California Association Of Realtors | ** Against | |
| California Building Industry Association | ** Against | |
| California Business Properties Association | ** Against | |
| California Chamber Of Commerce | ** Against | |
| California Democratic Renters Council | ** Support | |
| California Mortgage Bankers Association | ** Against | |
| California Rental Housing Association | ** Against | |
| East Bay Housing Organizations | ** Support | |
| East Bay Rental Housing Association | ** Against | |
| Institute of Real Estate Management | ** Against | |
| Los Angeles City Attorney'S Office | ** Support | |
| Mission Street Neighbors | ** Support | |
| NAIOP of California | ** Against | |
| National Association Of Social Workers, California Chapter | ** Support | |
| New Livable California Dba Livable California | ** Support | |
| Nor Cal Rental Property Association | ** Against | |
| North Valley Property Owners Association | ** Against | |
| Public Advocates | ** Support | |
| Sacramento regional coalition to end homelessness | ** Support | |
| Santa Barbara Rental Property Association | ** Against | |
| Santa Clara Housing Advocates | ** Support | |
| Southern California Rental Housing Association | ** Against | |
| Transform | ** Support | |
| Western Manufactured Housing Communities Association | ** Against |
SENATE THIRD READING
STR Bill Id:SB 522
Author:(Wahab)
As Amended Ver:September 3, 2025
Majority vote
SUMMARY
Exempts housing built to replace a previous housing unit, as specified, from the 15-year rolling exemption for new construction in the just cause eviction provisions of the Tenant Protection Act of 2019 (TPA).
Major Provisions
- Exempts housing built to replace a previous housing unit that meets all of the following criteria from the 15-year rolling exemption for new construction in the just cause eviction provisions of the TPA:
- The previous unit was substantially damaged or destroyed by a disaster, defined to mean a fire, flood, storm, tidal wave, earthquake, terrorism, epidemic, or other similar public calamity that the Governor determines presents a threat to public safety;
- The previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed by the disaster; and
- The previous unit was subject to the just cause eviction provisions of the TPA.
COMMENTS
Struggling Tenants and the Housing Crisis: California is home to approximately 18 million renters – which represents 44% of the state's population. Renters have been particularly impacted by the state's affordable housing crisis, as the multi-million unit shortfall of housing has driven up rents considerably. According to the 2022 Statewide Housing Plan, California needs an additional 2.5 million housing units, including 1.2 million for lower-income households, to meet the state's housing shortage. Decades of underbuilding have led to a lack of housing overall, particularly housing that is affordable to lower-income households. The state needs an additional 180,000 new units of housing a year to keep up with demand, including about 80,000 units of housing affordable to lower-income households. By contrast, production in the past decade has been under 100,000 units per year, including fewer than 20,000 units of affordable housing per year.
Furthermore, the state's homelessness crisis is driven by the lack of affordable rental housing for lower income people. According to the California Housing Partnership's Housing Need Dashboard, in the current market, over two million extremely low-income and very low-income renter households are competing for roughly 750,000 available and affordable rental units in the state. Over three-quarters of the state's extremely low-income households and over half of the state's very low-income households are severely rent burdened, paying more than 50% of their income toward rent each month. In addition, median rent in California has increased by 40% since 2000, while median renter household incomes have only increased 9% over the same time period (after inflation).
Tenant Protection Act of 2019: For decades, several local jurisdictions have imposed limits on how much residential landlords can raise the rent on their tenants each year, usually in combination with laws preventing landlords from terminating residential tenancies unless the landlord has a specific and legitimate reason for doing so. However, throughout the rest of the state and for individuals living in the many units exempt from local rent control, landlords could raise rents by as much as they pleased and could force a tenant to move out for any legal reason or for no reason at all, subject only to requirements for one or sometimes two months' advance notice. This changed in 2019 with the passage of AB 1482 (Chiu), Chapter 597, which provided eight million California renters in certain housing units with two critical tenant protections: a prohibition on exorbitant rent increases and protections against unjustified evictions.
AB 1482 protected against rent gouging by placing an annual cap on rent increases at 5% plus the change in the CPI, not to exceed 10%. The bill protected against unjustified evictions by requiring a justifiable cause for the termination of a tenancy after 12 months 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. Where the reason was not the tenant's fault – such as situations where the owner decides to occupy the unit, where the landlord undertakes demolition or a substantial remodel, or where the landlord elects to withdraw the property from the rental market – AB 1482 made sure tenants received at least some financial assistance for being made to relocate.
Further refinements to the TPA were made in 2023 with SB 567 (Durazo), Chapter 290, to close perceived loopholes that were being exploited to evade the law's protections and to provide additional enforcement tools.
Los Angeles Wildfires: In early January 2025, extremely dry conditions and high winds in Los Angeles resulted in two of the worst wildfires in state history. The Palisades fire, which started on January 7th, damaged or destroyed almost 8,000 structures in the Pacific Palisades and Topanga State Park area of west Los Angeles. That same day, other fires also broke out in the greater Los Angeles area: the Eaton and Hughes fires. The Eaton fire damaged or destroyed more than 10,000 structures, including significant portions of the city of Altadena. About half of all properties in both cities were destroyed, and both fires took the lives of 29 civilians and injured a dozen firefighters. All told, the January wildfires in Los Angeles were some of the most destructive wildfires in state history.
Beyond the significant human toll, the fires also have had a financial significant toll on residents and communities where they burned and throughout Southern California. Real estate losses have been estimated to be as high as $30 billion, and just under 13,000 households were displaced by the Palisades and Eaton fires. An estimated 9,592 single family homes and condominiums, 678 apartment units, 2,210 duplex and bungalow courts, and 373 mobilehomes were either heavily damaged or destroyed. Additionally, records show that about 770 rent-controlled units were destroyed in the Pacific Palisades.
All of this significant destruction displaced thousands of homeowners and tenants alike, so much so that rents and occupancy rates throughout the greater Los Angeles area spiked after the fires. Reports of landlords engaging in unlawful price gouging of tenants, prospective tenants, and short-term rentals abounded. The displacement of so many individuals and families caused a significant strain on Los Angeles and the surrounding area's already strained and insufficient housing supply. Local and state government have passed various ordinances and rules to try to help Californians displaced by the fires and support tenants in surrounding areas dealing with added economic strain or increased rents.
This Bill: In light of the significant amount of housing that was destroyed by the Palisades and Eaton wildfires, SB 522 proposes to narrow the new construction exception in the TPA's just cause provisions for housing built within the last 15 years. It specifies that this exception does not apply to housing built within the last 15 years when that housing was built to replace housing that was substantially damaged or destroyed by a disaster, was issued a certificate of occupancy before it was substantially damaged or destroyed, and was previously subject to the TPA's just cause protections. SB 522's provisions apply to housing damaged or destroyed by fire, flood, storm, tidal wave, earthquake, terrorism, epidemic, or another similar disaster.
The author and sponsor contend that housing built to replace housing destroyed by wildfires should maintain the same just-cause protections for its tenants that tenants of the destroyed building enjoyed. If it were not for the disaster, the tenants of the landlord's building would still enjoy the TPA's just cause protections. SB 522 would not prohibit landlords who rebuild after a disaster from evicting their tenants – when a leased unit is destroyed, the tenancy ends for the tenant, and under the TPA, landlords can evict tenants to complete substantial remodels to the property – and it is not saying that landlords must accept their previous tenants back. It simply extends the just-cause eviction protections to the tenants of a building that was recently built to replace housing substantially damaged or destroyed by a disaster.
Considering that just-cause protections do not prohibit a landlord from charging market rate rents or setting the rent for new tenants at the level the market will bear, landlords would still have ample opportunity to make a return on their investments and steady income. Because SB 522 does not provide a similar disaster exception to the exception for recent builds in the TPA's rent cap, landlords subject to SB 522's provisions would be able to increase rents on their tenants outside of the TPA's protections. Additionally, just-cause protections are not a prohibition on evicting tenants, but rather outline the permissible reasons for evicting a tenant. The purpose of just-cause protections are to prevent frivolous evictions, not to prevent evictions altogether. SB 522 simply provides these protections for tenants whose building would otherwise have been covered, but for a disaster. As is currently the case, these just-cause protections would not apply until the tenant has resided in their unit for at least year.
According to the Author
"Protecting tenants from unjust evictions is one of the most basic anti-displacement and anti-homelessness actions we can take. The Tenant Protection Act established these provisions for units with a certificate of occupancy date older than 15 years from the current date. The loss of multi-family housing units in the Palisades and Eaton fires forces us to reconsider the efficacy of the 15 years provision. As replacement rental housing units are rebuilt after these and any future disasters, we must ensure the previously enacted protections carry over. Without extending these protections, our homelessness and housing crises will only get worse."
Arguments in Support
According to the Los Angeles City Attorney's Office, the bill's sponsor, "SB 522 (Wahab) would exclude housing built to replace a previous housing unit that was subject to the TPA and was substantially damaged or destroyed by a disaster and was issued a certificate of occupancy before that housing unit was substantially damaged or destroyed, from the above-described exemption from the just cause requirements and rental increase limits. The Los Angeles City Attorney's Office is grateful for your commitment to protecting residents around the state that are victims of our wildfires from losing this tenant protection as a result of the destruction by the wildfires."
Arguments in Opposition
A coalition of opponents including the California Apartment Association, California Association of Realtors, and the California Chamber of Commerce write in opposition, stating that the bill overlooks the financial difficulty of rebuilding rental housing after a disaster, that the bill contributes to the exodus of rental property owners leaving the state, and that the bill does not encourage but rather disincentivizes the reconstruction of housing.
FISCAL COMMENTS
None.
VOTES
SENATE FLOOR: 27-10-3
YES: Allen, Archuleta, Arreguín, Ashby, Becker, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener
NO: Alvarado-Gil, Choi, Dahle, Grove, Jones, Niello, Ochoa Bogh, Seyarto, Strickland, Valladares
ABS, ABST OR NV: Blakespear, Hurtado, Reyes
ASM HOUSING AND COMMUNITY DEVELOPMENT: 7-5-0
YES: Haney, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Wicks
NO: Ávila Farías, Sanchez, Ta, Tangipa, Wilson
ASM JUDICIARY: 8-3-1
YES: Kalra, Bauer-Kahan, Bryan, Connolly, Harabedian, Papan, Stefani, Zbur
NO: Dixon, Macedo, Sanchez
ABS, ABST OR NV: Pacheco
UPDATED
VERSION: September 3, 2025
CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0001614
SENATE THIRD READING
STR Bill Id:SB 522
Author:(Wahab)
As Amended Ver:March 28, 2025
Majority vote
SUMMARY
Exempts housing built to replace a previous housing unit, as specified, from the 15-year rolling exemption for new construction in the just cause eviction provisions of the Tenant Protection Act of 2019 (TPA).
Major Provisions
- Exempts housing built to replace a previous housing unit that meets all of the following criteria from the 15-year rolling exemption for new construction in the just cause eviction provisions of the TPA:
- The previous unit was substantially damaged or destroyed by a disaster, defined to mean a fire, flood, storm, tidal wave, earthquake, terrorism, epidemic, or other similar public calamity that the Governor determines presents a threat to public safety;
- The previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed by the disaster; and
- The previous unit was subject to the just cause eviction provisions of the TPA.
COMMENTS
Struggling Tenants and the Housing Crisis: California is home to approximately 18 million renters – which represents 44% of the state's population. Renters have been particularly impacted by the state's affordable housing crisis, as the multi-million unit shortfall of housing has driven up rents considerably. According to the 2022 Statewide Housing Plan, California needs an additional 2.5 million housing units, including 1.2 million for lower-income households, to meet the state's housing shortage. Decades of underbuilding have led to a lack of housing overall, particularly housing that is affordable to lower-income households. The state needs an additional 180,000 new units of housing a year to keep up with demand, including about 80,000 units of housing affordable to lower-income households. By contrast, production in the past decade has been under 100,000 units per year, including fewer than 20,000 units of affordable housing per year.
Furthermore, the state's homelessness crisis is driven by the lack of affordable rental housing for lower income people. According to the California Housing Partnership's Housing Need Dashboard, in the current market, over two million extremely low-income and very low-income renter households are competing for roughly 750,000 available and affordable rental units in the state. Over three-quarters of the state's extremely low-income households and over half of the state's very low-income households are severely rent burdened, paying more than 50% of their income toward rent each month. In addition, median rent in California has increased by 40% since 2000, while median renter household incomes have only increased 9% over the same time period (after inflation).
Tenant Protection Act of 2019: For decades, several local jurisdictions have imposed limits on how much residential landlords can raise the rent on their tenants each year, usually in combination with laws preventing landlords from terminating residential tenancies unless the landlord has a specific and legitimate reason for doing so. However, throughout the rest of the state and for individuals living in the many units exempt from local rent control, landlords could raise rents by as much as they pleased and could force a tenant to move out for any legal reason or for no reason at all, subject only to requirements for one or sometimes two months' advance notice. This changed in 2019 with the passage of AB 1482 (Chiu), Chapter 597, which provided eight million California renters in certain housing units with two critical tenant protections: a prohibition on exorbitant rent increases and protections against unjustified evictions.
AB 1482 protected against rent gouging by placing an annual cap on rent increases at 5% plus the change in the CPI, not to exceed 10%. The bill protected against unjustified evictions by requiring a justifiable cause for the termination of a tenancy after 12 months 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. Where the reason was not the tenant's fault – such as situations where the owner decides to occupy the unit, where the landlord undertakes demolition or a substantial remodel, or where the landlord elects to withdraw the property from the rental market – AB 1482 made sure tenants received at least some financial assistance for being made to relocate.
Further refinements to the TPA were made in 2023 with SB 567 (Durazo), Chapter 290, to close perceived loopholes that were being exploited to evade the law's protections and to provide additional enforcement tools.
Los Angeles Wildfires: In early January 2025, extremely dry conditions and high winds in Los Angeles resulted in two of the worst wildfires in state history. The Palisades fire, which started on January 7th, damaged or destroyed almost 8,000 structures in the Pacific Palisades and Topanga State Park area of west Los Angeles. That same day, other fires also broke out in the greater Los Angeles area: the Eaton and Hughes fires. The Eaton fire damaged or destroyed more than 10,000 structures, including significant portions of the city of Altadena. About half of all properties in both cities were destroyed, and both fires took the lives of 29 civilians and injured a dozen firefighters. All told, the January wildfires in Los Angeles were some of the most destructive wildfires in state history.
Beyond the significant human toll, the fires also have had a financial significant toll on residents and communities where they burned and throughout Southern California. Real estate losses have been estimated to be as high as $30 billion, and just under 13,000 households were displaced by the Palisades and Eaton fires. An estimated 9,592 single family homes and condominiums, 678 apartment units, 2,210 duplex and bungalow courts, and 373 mobilehomes were either heavily damaged or destroyed. Additionally, records show that about 770 rent-controlled units were destroyed in the Pacific Palisades.
All of this significant destruction displaced thousands of homeowners and tenants alike, so much so that rents and occupancy rates throughout the greater Los Angeles area spiked after the fires. Reports of landlords engaging in unlawful price gouging of tenants, prospective tenants, and short-term rentals abounded. The displacement of so many individuals and families caused a significant strain on Los Angeles and the surrounding area's already strained and insufficient housing supply. Local and state government have passed various ordinances and rules to try to help Californians displaced by the fires and support tenants in surrounding areas dealing with added economic strain or increased rents.
This Bill: In light of the significant amount of housing that was destroyed by the Palisades and Eaton wildfires, SB 522 proposes to narrow the new construction exception in the TPA's just cause provisions for housing built within the last 15 years. It specifies that this exception does not apply to housing built within the last 15 years when that housing was built to replace housing that was substantially damaged or destroyed by a disaster, was issued a certificate of occupancy before it was substantially damaged or destroyed, and was previously subject to the TPA's just cause protections. SB 522's provisions apply to housing damaged or destroyed by fire, flood, storm, tidal wave, earthquake, terrorism, epidemic, or another similar disaster.
The author and sponsor contend that housing built to replace housing destroyed by wildfires should maintain the same just-cause protections for its tenants that tenants of the destroyed building enjoyed. If it were not for the disaster, the tenants of the landlord's building would still enjoy the TPA's just cause protections. SB 522 would not prohibit landlords who rebuild after a disaster from evicting their tenants – when a leased unit is destroyed, the tenancy ends for the tenant, and under the TPA, landlords can evict tenants to complete substantial remodels to the property – and it is not saying that landlords must accept their previous tenants back. It simply extends the just-cause eviction protections to the tenants of a building that was recently built to replace housing substantially damaged or destroyed by a disaster.
Considering that just-cause protections do not prohibit a landlord from charging market rate rents or setting the rent for new tenants at the level the market will bear, landlords would still have ample opportunity to make a return on their investments and steady income. Because SB 522 does not provide a similar disaster exception to the exception for recent builds in the TPA's rent cap, landlords subject to SB 522's provisions would be able to increase rents on their tenants outside of the TPA's protections. Additionally, just-cause protections are not a prohibition on evicting tenants, but rather outline the permissible reasons for evicting a tenant. The purpose of just-cause protections are to prevent frivolous evictions, not to prevent evictions altogether. SB 522 simply provides these protections for tenants whose building would otherwise have been covered, but for a disaster. As is currently the case, these just-cause protections would not apply until the tenant has resided in their unit for at least year.
According to the Author
"Protecting tenants from unjust evictions is one of the most basic anti-displacement and anti-homelessness actions we can take. The Tenant Protection Act established these provisions for units with a certificate of occupancy date older than 15 years from the current date. The loss of multi-family housing units in the Palisades and Eaton fires forces us to reconsider the efficacy of the 15 years provision. As replacement rental housing units are rebuilt after these and any future disasters, we must ensure the previously enacted protections carry over. Without extending these protections, our homelessness and housing crises will only get worse."
Arguments in Support
According to the Los Angeles City Attorney's Office, the bill's sponsor, "SB 522 (Wahab) would exclude housing built to replace a previous housing unit that was subject to the TPA and was substantially damaged or destroyed by a disaster and was issued a certificate of occupancy before that housing unit was substantially damaged or destroyed, from the above-described exemption from the just cause requirements and rental increase limits. The Los Angeles City Attorney's Office is grateful for your commitment to protecting residents around the state that are victims of our wildfires from losing this tenant protection as a result of the destruction by the wildfires."
Arguments in Opposition
A coalition of opponents including the California Apartment Association, California Association of Realtors, and the California Chamber of Commerce write in opposition, stating that the bill overlooks the financial difficulty of rebuilding rental housing after a disaster, that the bill contributes to the exodus of rental property owners leaving the state, and that the bill does not encourage but rather disincentivizes the reconstruction of housing.
FISCAL COMMENTS
None.
VOTES
SENATE FLOOR: 27-10-3
YES: Allen, Archuleta, Arreguín, Ashby, Becker, Cabaldon, Caballero, Cervantes, Cortese, Durazo, Gonzalez, Grayson, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez, Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener
NO: Alvarado-Gil, Choi, Dahle, Grove, Jones, Niello, Ochoa Bogh, Seyarto, Strickland, Valladares
ABS, ABST OR NV: Blakespear, Hurtado, Reyes
ASM HOUSING AND COMMUNITY DEVELOPMENT: 7-5-0
YES: Haney, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Wicks
NO: Ávila Farías, Sanchez, Ta, Tangipa, Wilson
ASM JUDICIARY: 8-3-1
YES: Kalra, Bauer-Kahan, Bryan, Connolly, Harabedian, Papan, Stefani, Zbur
NO: Dixon, Macedo, Sanchez
ABS, ABST OR NV: Pacheco
UPDATED
VERSION: March 28, 2025
CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0001127
Date of Hearing: July 15, 2025
ASSEMBLY COMMITTEE ON JUDICIARY
Ash Kalra, Chair
SBPCA Bill Id:SB 522
Author:(Wahab) – As Amended Ver:March 28, 2025
SENATE VOTE: 27-10
SUBJECT: Housing: tenant protections
KEY ISSUE: should housing reconstruction that replaces residential property that was substantially damaged or destroyed by a disaster, as defined, be excluded from the exemption in California’s just-eviction protections for housing issued a certificate of occupancy in the last 15 years?
SYNOPSIS
The Tenant Protection Act (TPA) of 2019 – until January 1, 2030 – prohibits landlords of certain properties from evicting residential tenants who have resided in the unit for 12 months or more without just cause. “Just cause” includes both “at-fault” just cause, and “no fault” just causes. As the names suggests, “at-fault” just cause evictions are based on the tenant’s misconduct, such as failing to pay rent, breaching a material term of the lease, creating a nuisance, or engaging in illegal activity. “No-fault” just-cause evictions include legitimate reasons that the landlord may end the lease, such as withdrawing the property from the rental market, substantially remodeling the property, or having a family member move into the property. In addition, the TPA also imposed limits on rates of rental increase. However, the TPA did not apply to any housing that had been issued a certificate of occupancy within the last 15 years. The premise behind this exemption for new construction reflected a belief that imposing regulations discourages the building of new housing units, which the state desperately needs.
However, in the wake of the recent fires in Southern California, there is a need and desire to rebuild homes on the same property. As new construction, these rebuilt homes will need a new certificate of occupancy and, as such will be exempt from the TPA requirements.
This bill effectively makes an exemption to an exemption for purposes of the TPA’s just-cause eviction provisions. (The bill does not affect the TPA’s rental increase limits.) That is, the bill would exclude housing constructed to replace a structure damaged by a disaster from the existing exemption for housing issued a certificate of occupancy in the last 15 years. The rationale for this policy, it appears, is that this rebuilt housing does not add to the pre-disaster stock of housing, but is simply restoring units that existed before the disaster and were subject to the TPA.
The bill is sponsored by the Los Angeles City Attorney’s Office and supported by several advocates of affordable housing. It is opposed by the California Apartment Association, the California Association of Realtors, the California Chamber of Commerce and other groups representing builders and developers. The bill recently passed out of the Assembly Housing and Community Development Committee on a 7-5 vote.
SUMMARY: Excludes, from the exemption to California’s just-cause eviction protections for housing issued a certificate of occupancy within the last 15 years, housing that is built to replace a residential unit substantially damaged or destroyed by a disaster, as specified.
EXISTING LAW:
- Establishes generally the relations between and responsibilities of landlords and tenants in residential leases. (Civil Code Section 1940 et seq. Subsequent citations refer to this code unless otherwise indicated.)
- Establishes the Tenant Protection Act of 2019, which prohibits landlords of certain properties, until January 1, 2030, from evicting a residential tenant who has resided in the unit for 12 months or more, unless the landlord has at-fault or no-fault just cause:
- Defines “at-fault” just cause to mean a tenant’s:
- Default in the payment of rent.
- Breach of a material term of the lease.
- Maintaining or permitting a nuisance on the premises.
- Committing waste on the premises.
- Refusal to execute a written extension or renewal of a lease for a tenancy in a mobilehome, as prescribed.
- Criminal activity on the residential property.
- Assigning or subletting the premises in violation of the lease.
- Refusal to allow the owner to enter the property as authorized.
- Using the premises for an unlawful purpose.
- Failure to vacate when the tenant is an employee, agent, or licensee, and the tenant is terminated as an employee, agent, or licensee.
- A tenant’s failure to deliver possession of the property after providing the owner written notice of the tenant’s intent to terminate the lease.
- Defines “no-fault” just cause to mean:
- When the owner or owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents intend to occupy the property for at least 12 months as their primary residence, as specified.
- A withdrawal of the property from the rental market, as specified.
- When the owner must evict the tenant to comply with a local ordinance or an order of a government agency or court, as prescribed.
- When the owner intends to demolish or substantially remodel the property, as specified. (Section 1946.2)
- Defines “at-fault” just cause to mean a tenant’s:
- Specifies that the just-cause eviction requirements described in and 2a) and 2b), above, do not apply to the following:
- A transient and tourist hotel occupancy, as defined.
- Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly.
- Dormitories owned and operated by an educational institution.
- Housing accommodations in which the tenant shares a bathroom or kitchen with the owner who maintains their principal residence at the property.
- Single-family owner-occupied residences.
- A property containing two separate dwelling units within a single structure, in which the owner occupies one of the units at the owner’s principal place of residence at the beginning of the tenancy, as specified.
- Housing that has been issued a certificate of occupancy within the last 15 years, unless the housing is a mobilehome.
- Residential real property that is alienable separate from the title to any other dwelling unit when the owner is not a corporation, management of a mobilehome park, or other business entity, as specified.
- Housing that is restricted as affordable housing by deed, agreement with a government agency, or other recorded document, as defined. (Section 1946.2(e).)
- Specifies that the just-cause provisions described in 2a) and 2b), above, do not apply to residential real property subject to a local ordinance requiring just cause for evictions, either when the ordinance was adopted on or before September 1, 2019, or when the ordinance is more protective than the state’s just-cause eviction provisions. (Section 1946.2 (i).)
- Specifies that, if an owner evicts a tenant for no-fault just cause, the owner must either assist the tenant with relocation by providing a direct payment equal to one month’s rent, or waive payment of the last month’s rent. (Section 1946.2 (d).)
- Specifies that, before an owner may issue a notice of termination for a just cause that is curable, the owner must first give the tenant notice of the violation with an opportunity for the tenant to cure the violation, as prescribed. (Section 1946.2 (c).)
- Specifies that a landlord who attempts to evict a tenant in violation of the just-cause provisions described in 2) through 6), above, is liable to the tenant for actual damages, reasonable attorney’s fees and costs at the court’s discretion, and for three times actual damages when the owner acted willfully or with oppression, fraud, or malice. Specifies that the Attorney General, or a city attorney or county counsel of the jurisdiction in which the rental unit is located, may seek injunctive relief. Additionally specifies that an owner’s failure to comply with the just-cause provisions renders the written termination notice void. (Section 1946.2 (g)-(h).)
- Specifies that the just-cause provisions described in 2) through 7), above, are repealed on January 1, 2030. (Section 1946.2 (n).)
- Provides that, if the residential tenant has resided in the dwelling for less than a year, the landlord must provide notice of termination at least 30 days prior to the termination, and that the landlord must provide notice of termination at least 60 days prior to the termination if the tenant has resided in the residential property for a year or more, except as provided. Provides that a tenant must provide notice of their intention to terminate their tenancy for a periodic tenancy at least as long as the term of the periodic tenancy. If the tenant has received a notice of termination from the owner, the tenant may provide a notice of termination for a period at least as long as the term of a periodic tenancy, if such termination occurs before the owner’s date of termination. (Section 1946.1 (b)-(d).)
- Provides that a tenant has committed unlawful detainer when they continue in possession of the property without the landlord's permission after:
- The tenant remains in possession of the premises after the expiration of the term of the tenancy without permission of the landlord or otherwise not permitted by law.
- The tenant's nonpayment of rent and service of a 3-day notice to pay or quit, stating the amount that is due.
- The tenant has breached a covenant of the lease or failed to perform other conditions under the lease, and after service of a 3-day notice requiring performance of such covenants or conditions.
- The tenant has breached a covenant of the lease prohibiting subletting, assignment, or waste; has committed or permitted a nuisance on the premises; or used the premises for an unlawful purpose.
- The tenant gives written notice of the tenant’s intention to terminate the tenancy, but fails to deliver possession of the premises to the landlord at the specified time. (Code of Civil Procedure Section 1161.)
- Requires a tenant defendant in an unlawful detainer action to respond to a notice of summons within ten days, excluding weekends and court holidays, of being served with the notice. Specifies that, if service is completed by mail or the Secretary of State’s address confidentiality program, the defendant must file within fifteen days. (Code of Civil Procedure Section 1167.)
- Defines “disaster,” for the purposes of the California Disaster Assistance Act, as meaning a fire, flood, storm, tidal wave, earthquake, terrorism, epidemic, or other similar public calamity that the Governor determines presents a threat to public safety. (Government Code Section 8680.3.)
FISCAL EFFECT: As currently in print this bill is keyed non-fiscal.
COMMENTS: According to the author:
Protecting tenants from unjust evictions is one of the most basic anti-displacement and anti-homelessness actions we can take. The Tenant Protection Act established these provisions for units with a certificate of occupancy date older than 15 years from the current date. The loss of multi-family housing units in the Palisades and Eaton fires forces us to reconsider the efficacy of the 15 years provision. As replacement rental housing units are rebuilt after these and any future disasters, we must ensure the previously enacted protections carry over. Without extending these protections, our homelessness and housing crises will only get worse.
The Tenant Protection Act (TPA) of 2019. Six years ago, in an attempt to address the state’s “housing affordability crisis,” the Legislature enacted the Tenant Protection Act (TPA) of 2019. The TPA became effective on January 1, 2020, and included a sunset date of January 1, 2030. The TPA had two key provisions: (1) a cap on the rate of annual rent increases and (2) a prohibition on evictions without “just cause.” Under the first provision, rent cannot be increased in a given year by more than 5% plus the annual increase in the consumer price index (CPI), or 10%, whichever is lower. Under the second provision, if a tenant has continuously occupied the rental unit for 12 months, the landlord cannot terminate the tenancy without just cause. Under prior law, a landlord could terminate a month-to-month tenancy for any reason so long as proper notice was provided. Under TPA, the landlord can only terminate the tenancy if the tenant fails to pay rent or otherwise violates the lease (an “at fault” just cause) or so the landlord can allow a family member to move in, make substantial repairs, or take the property off the market (“no fault” just cause). The rental increase limitation and just-cause provisions were closely related, because without the just cause provision, a landlord could evict a tenant and raise the rent on the new tenancy.
Most significantly for the bill now before the Committee, TPA exempted newer properties that had been issued a certificate of occupancy within the past 15 years. The premise behind this exemption reflected a belief that imposing such regulations would discourage the building of new housing units, which the state desperately needs.
The impact of the Los Angeles wildfires. As the well-documented and thorough analysis prepared by the Assembly Housing Committee demonstrates, California’s approximately 18 million renters (44% of the state’s population) have been particularly impacted by a housing shortage that has resulted in increased rents. There are, of course, many complex factors contributing to California’s high rental prices but, whatever the cause, the result is that tenants feel the pinch and face restricted choices when entering the rental market. The TPA attempted to address these hardships by limiting the rate of rental increases and limiting evictions to just-cause evictions, so that tenants are not evicted as a pretext for creating a temporary vacancy and thereby avoiding the limits on rental increases.
During the past few months, this Committee has considered several measures, and heard ample testimony, showing how the January wildfires in the Los Angeles area have exacerbated the state’s housing affordability problem. Housing that is built to replace destroyed rental properties would, without this bill, be exempt from the TPA protections because the new construction would have received a certificate of occupancy within the last 15 years. This means that, as a result of the wildfires, a greater proportion of rental properties will fall outside of the protections that the author, sponsor, and supporters believe tenants so desperately need.
This bill effectively makes an exemption to an exemption for purposes of the just-cause eviction provisions. The bill would exclude housing constructed to replace units substantially damaged or destroyed by a disaster from the existing exemption for new construction. The rationale for this policy, it appears, is that rebuilt housing does not add to the pre-disaster stock of housing, but is simply restoring units that, before the disaster occurred, were subject to the TPA (assuming they are more than 15 years old). (NOTE: Some of the letters, and even the Legislative Counsel digest for the bill in print, continue to state that the bill would apply the just cause requirements and rental increase limits, even though the bill was amended in March to apply only to the just cause evictions.)
Will this bill discourage rebuilding? The most consistent argument made by the opponents of this measure claim that it will discourage rental property owners from rebuilding destroyed properties at a time when the rebuilding of rental property is desperately needed. This was, after all, the purpose of exempting relatively new construction from the provisions of the TPA in the first place. On this point, however, it must be emphasized that this bill does not affect the existing exemption for the TPA’s limits on rental increases. Although the evidence is by no means conclusive, one could make a stronger case that limits on rents might discourage rebuilding because the rents more directly impact on the builder’s return on investment. However, it is less clear that just-cause eviction rules would have the same effect. Just cause eviction rules promote housing stability for renters – and landlords also benefit from stability – but such rules do not limit what the property owner can charge for rent. New construction built to replace structures destroyed by a disaster will still be exempt from TPA’s rental increase limits. Moreover, as the author has pointed out, the bill does not impose any new regulatory requirements; it merely carries over regulations that applied prior to the disaster.
ARGUMENTS IN SUPPORT: The Los Angeles City Attorney’s Office, the bill’s sponsor, writes in support:
As you know, the Tenant Protection Act of 2019 (TPA), prohibits, until January 1, 2030, an owner of residential real property from terminating the tenancy of certain tenants without just cause, either at-fault or no-fault of the tenant. The TPA exempts certain types of residential real property from that prohibition, including, among others, housing that has been issued a certificate of occupancy within the previous 15 years.
SB 522 (Wahab) would exclude housing built to replace a previous housing unit that was subject to the TPA and was substantially damaged or destroyed by a disaster and was issued a certificate of occupancy before that housing unit was substantially damaged or destroyed, from the above-described exemption from the just cause requirements and rental increase limits.
The Alliance of Children’s Rights (ACR) supports this bill because it “closes a critical loophole in the Tenant Protection Act of 2019 by ensuring that rental housing rebuilt after a disaster does not lose existing just cause eviction protections and rent stabilization.” ACR explains further:
We know from direct experience that stable housing is essential for family preservation, child well-being, and successful reentry or reunification efforts. When disasters strike—wildfires, earthquakes, or other catastrophic events—low-income families are often the hardest hit. Without SB 522, landlords can exploit the rebuilding process to remove longstanding tenant protections, effectively displacing vulnerable families when they are at their most vulnerable.
SB 522 provides a narrow and targeted fix: it applies only when the original unit was subject to tenant protections and ensures that the replacement unit, built after a disaster, maintains those protections. This preserves affordability, prevents exploitation, and helps ensure that recovery from disaster does not lead to permanent displacement and instability.
This legislation aligns with California’s goals of protecting tenants, promoting equity in disaster recovery, and maintaining access to affordable housing. For families served by the Alliance – especially those involved in the foster system or at risk of child welfare intervention – housing stability can make the difference between reunification and separation.
ARGUMENTS IN OPPOSITION: The California Apartment Association, the California Association of Realtors, the California Chamber of Commerce and other organizations representing builders, developers, and property oppose this bill for the following reasons:
SB 522 sends the wrong message to rental property owners. Rental property owners who suffer losses in a disaster deserve support to rebuild—not regulatory burdens. While we fully recognize that tenants also lose their homes in these situations, policymakers should focus on encouraging the rapid reconstruction of housing, not creating disincentives that delay or prevent it.
SB 522 is unfair to rebuilt housing. Under existing law, newly constructed rental housing is granted a 15-year exemption from just cause requirements—a critical provision that allows owners to secure financing and move forward with development. SB 522 denies this same exemption to rebuilt housing, despite the fact that owners face the same (if not greater) financial challenges in rebuilding after a disaster.
SB 522 overlooks the realities of rebuilding. Reconstructing rental housing after a disaster is often an uphill battle. Many owners are underinsured, dealing with substantial losses, and struggling to obtain financing. Imposing additional regulatory barriers makes rebuilding less viable and increases the risk that destroyed units will never return to the market.
SB 522 Contributes to California's Rental Housing Exodus - After a disaster, rental property owners are increasingly choosing to leave California due to the state's growing list of regulatory requirements. SB 522 would accelerate this trend, sending the message that California is an unpredictable and unsupportive place to operate rental housing—even in the aftermath of a disaster.
REGISTERED SUPPORT / OPPOSITION:
Support
Aids Healthcare Foundation
Alliance for Children's Rights
Alliance of Californians for Community Empowerment
California Democratic Renters Council
East Bay Housing Organizations
Los Angeles City Attorney
Mission Street Neighbors
National Association of Social Workers, California Chapter
New Livable California Dba Livable California
Public Advocates
Sacramento Regional Coalition to End Homelessness
Santa Clara Housing Advocates
Transform
Opposition
Apartment Association of Greater Los Angeles
Apartment Association of Orange County
Apartment Association, California Southern Cities
Berkeley Property Owner's Association
Building Owners and Managers Association of California
California Apartment Association
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Mortgage Bankers Association
California Rental Housing Association
East Bay Rental Housing Association
Institute of Real Estate Management
NAIOP of California
Nor Cal Rental Property Association
North Valley Property Owners Association
Santa Barbara Rental Property Association
Southern California Rental Housing Association
Western Manufactured Housing Communities Association
Analysis Prepared by: Tom Clark / JUD. / (916) 319-2334
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 522 |
THIRD READING
Bill No: SB 522
Author: Wahab (D), et al.
Amended: 3/28/25
Vote: 21
SENATE JUDICIARY COMMITTEE: 10-2, 4/8/25
AYES: Umberg, Allen, Arreguín, Ashby, Caballero, Durazo, Laird, Stern, Wahab, Wiener
NOES: Niello, Valladares
NO VOTE RECORDED: Weber Pierson
SUBJECT: Housing: tenant protections
SOURCE: Los Angeles City Attorney
DIGEST:
This bill excludes, from the exemption to California’s just-cause eviction protections for housing issued a certificate of occupancy within the last 15 years, housing that is built to replace a housing unit substantially damaged or destroyed by a disaster, as specified.
ANALYSIS:
Existing law:
- Establishes generally the relations between and responsibilities of landlords and tenants in residential leases (hiring of real property). (Civil (Civ.) Code §§ 1940 et seq.)
- Establishes the Tenant Protection Act of 2019, which prohibits landlords of certain properties, until January 1, 2030, from evicting a residential tenant who has resided in the unit for 12 months or more, unless the landlord has at-fault or no-fault just cause:
- Defines “at-fault” just cause to mean a tenant’s:
- Default in the payment of rent;
- Breach of a material term of the lease;
- Maintaining or permitting a nuisance on the premises;
- Committing waste on the premises;
- Refusal to execute a written extension or renewal of a lease for a tenancy in a mobilehome, as prescribed;
- Criminal activity on the residential property;
- Assigning or subletting the premises in violation of the lease;
- Refusal to allow the owner to enter the property as authorized;
- Using the premises for an unlawful purpose;
- Failure to vacate when the tenant is an employee, agent, or licensee, and the tenant is terminated as an employee, agent, or licensee; and
- A tenant’s failure to deliver possession of the property after providing the owner written notice of the tenant’s intent to terminate the lease.
- Defines “no-fault” just cause to mean:
- When the owner or owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents intend to occupy the property for at least 12 months as their primary residence, as specified.
- A withdrawal of the property from the rental market, as specified.
- When the owner must evict the tenant to comply with a local ordinance or an order of a government agency or court, as prescribed.
- When the owner intends to demolish or substantially remodel the property, as specified. (Civ. Code § 1946.2)
- Defines “at-fault” just cause to mean a tenant’s:
- Specifies that the just-cause eviction requirements described in (1) and (2), above, do not apply to the following:
- A transient and tourist hotel occupancy, as defined;
- Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, or an adult residential facility;
- Dormitories owned and operated by an institution of higher education or a K-12 school;
- Housing accommodations in which the tenant shares a bathroom or kitchen with the owner who maintains their principal residence at the property;
- Single-family owner-occupied residences;
- A property containing two separate dwelling units within a single structure, in which the owner occupies one of the units at the owner’s principal place of residence at the beginning of the tenancy, as specified;
- Housing that has been issued a certificate of occupancy within the last 15 years, unless the housing is a mobilehome;
- Residential real property that is alienable separate from the title to any other dwelling unit when the owner is not a corporation, management of a mobilehome park, or other business entity, as specified; and
- Housing that is restricted as affordable housing by deed, agreement with a government agency, or other recorded document, as defined. (Civ. Code § 1946.2(e).)
- Specifies that the just-cause provisions described in (2) and (3), above, do not apply to residential real property subject to a local ordinance requiring just cause for evictions, either when the ordinance was adopted on or before September 1, 2019, or when the ordinance is more protective than the state’s just-cause eviction provisions. (Civ. Code § 1946.2(i).)
- Specifies that, if an owner evicts a tenant for no-fault just cause, the owner must either assist the tenant with relocation by providing a direct payment equal to one month’s rent, or waive payment of the last month’s rent. (Civ. Code § 1946.2(d).)
- Specifies that, before an owner may issue a notice of termination for a just cause that is curable, the owner must first give the tenant notice of the violation with an opportunity for the tenant to cure the violation, as prescribed. (Civ. Code § 1946.2(c).)
- Specifies that a landlord who attempts to evict a tenant in violation of the just-cause provisions described in (2) through (8), above, is liable to the tenant for actual damages, reasonable attorney’s fees and costs at the court’s discretion, and for three times actual damages when the owner acted willfully or with oppression, fraud, or malice. Specifies that the Attorney General, or a city attorney or county counsel of the jurisdiction in which the rental unit is located, may seek injunctive relief. Additionally specifies that an owner’s failure to comply with the just-cause provisions renders the written termination notice void. (Civ. Code § 1946.2(g)-(h).)
- Specifies that the just-cause provisions described in (2) through (7), above, are repealed on January 1, 2030. (Civ. Code § 1946.2(n).)
- Provides that, if the residential tenant has resided in the dwelling for less than a year, the landlord must provide notice of termination at least 30 days prior to the termination, and that the landlord must provide notice of termination at least 60 days prior to the termination if the tenant has resided in the residential property for a year or more, except as provided. Provides that a tenant must provide notice of their intention to terminate their tenancy for a periodic tenancy at least as long as the term of the periodic tenancy. If the tenant has received a notice of termination from the owner, the tenant may provide a notice of termination for a period at least as long as the term of a periodic tenancy, if such termination occurs before the owner’s date of termination. (Civ. Code § 1946.1(b)-(d).)
- Provides that a tenant has committed unlawful detainer when they continue in possession of the property without the landlord's permission after:
- The tenant remains in possession of the premises after the expiration of the term of the tenancy without permission of the landlord or otherwise not permitted by law;
- The tenant's nonpayment of rent and service of a 3-day notice to pay or quit, stating the amount that is due;
- The tenant has breached a covenant of the lease or failed to perform other conditions under the lease, and after service of a 3-day notice requiring performance of such covenants or conditions;
- The tenant has breached a covenant of the lease prohibiting subletting, assignment, or waste; has committed or permitted a nuisance on the premises; or used the premises for an unlawful purpose; and
- The tenant gives written notice of the tenant’s intention to terminate the tenancy, but fails to deliver possession of the premises to the landlord at the specified time. (Code of Civ. Proc. § 1161.)
- Requires a tenant defendant in an unlawful detainer action to respond to a notice of summons within ten days, excluding weekends and court holidays, of being served with the notice. Specifies that, if service is completed by mail or the Secretary of State’s address confidentiality program, the defendant must file within fifteen days. (Code of Civ. Proc. § 1167.)
- Defines “disaster,” for the purposes of the California Disaster Assistance Act, as meaning a fire, flood, storm, tidal wave, earthquake, terrorism, epidemic, or other similar public calamity that the Governor determines presents a threat to public safety. (Government Code § 8680.3.)
This bill specifies that, for the exception to the just-cause tenant protections described above for housing issued a certificate of occupancy within the last 15 years, housing built to replace a previous housing unit is not included in that exception if:
- The previous unit was substantially damaged or destroyed by a disaster, as defined by Government Code section 8680.3;
- The previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed; and
- The previous unit was subject to the just-cause provisions.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 4/18/25)
Los Angeles City Attorney (source)
Aids Healthcare Foundation
Alliance of Californians for Community Empowerment
Mission Street Neighbors
National Association of Social Workers, California Chapter
New Livable California Dba Livable California
Public Advocates
Sacramento Regional Coalition to End Homelessness
Santa Clara Housing Advocates
Transform
OPPOSITION: (Verified 4/18/25)
Building Owners and Managers Association of California
California Apartment Association
California Association of Realtors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Mortgage Bankers Association
Institute of Real Estate Management
Naiop of California
Naiop of California, the Commercial Real Estate Development Association
Southern California Rental Housing Association
Western Manufactured Housing Communities Association
ARGUMENTS IN SUPPORT:
According to the Los Angeles City Attorney, who is the sponsor of this bill:
As you know, the Tenant Protection Act of 2019 (TPA) prohibits, until January 1, 2030, an owner of residential real property from terminating the tenancy of certain tenants without just cause, either at-fault or no-fault of the tenant. The TPA exempts certain types of residential real property from that prohibition, including, among others, housing that has been issued a certificate of occupancy within the previous 15 years.
SB 522 (Wahab) would exclude housing built to replace a previous housing unit that was subject to the TPA and was substantially damaged or destroyed by a disaster and was issued a certificate of occupancy before that housing unit was substantially damaged or destroyed, from the above-described exemption from the just cause requirements and rental increase limits.
ARGUMENTS IN OPPOSITION:
According to the California Chamber of Commerce, which opposes SB 522:
SB 522 Sends the Wrong Message to Rental Property Owners - Rental property owners who suffer losses in a disaster deserve support to rebuild—not regulatory burdens. While we fully recognize that tenants also lose their homes in these situations, policymakers should focus on encouraging the rapid reconstruction of housing, not creating disincentives that delay or prevent it.
SB 522 is Unfair to Rebuilt Housing - Under existing law, newly constructed rental housing is granted a 15-year exemption from just cause requirements—a critical provision that allows owners to secure financing and move forward with development. SB 522 denies this same exemption to rebuilt housing, despite the fact that owners face the same (if not greater) financial challenges in rebuilding after a disaster.
SB 522 Overlooks the Realities of Rebuilding - Reconstructing rental housing after a disaster is often an uphill battle. Many owners are underinsured, dealing with substantial losses, and struggling to obtain financing. Imposing additional regulatory barriers makes rebuilding less viable and increases the risk that destroyed units will never return to the market.
SB 522 Contributes to California's Rental Housing Exodus - After a disaster, rental property owners are increasingly choosing to leave California due to the state's growing list of regulatory requirements. SB 522 would accelerate this trend, sending the message that California is an unpredictable and unsupportive place to operate rental housing—even in the aftermath of a disaster.
Prepared by: Ian Dougherty / JUD. / (916) 651-4113
4/18/25 11:09:18
**** END ****
Senator Thomas Umberg, Chair
2025-2026 Regular Session
Bill No: SB 522 (Author:Wahab)
Version: March 28, 2025
Hearing Date: April 8, 2025
Fiscal: No
Urgency: No
Consultant: ID
SUBJECT
Housing: tenant protections
DIGEST
This bill excludes, from the exemption to California’s just-cause eviction protections for housing issued a certificate of occupancy within the last 15 years, housing that is built to replace a housing unit substantially damaged or destroyed by a disaster, as specified.
EXECUTIVE SUMMARY
In early January 2025, extremely dry conditions and high winds in Los Angeles resulted in two of the worst wildfires in state history: the Palisades and Eaton fires. The fires burned 37,469 acres and damaged or destroyed almost 18,000 structures, and resulted in 29 fatalities. In addition, just under 13,000 households were displaced by the Palisades and Eaton fires, exacerbating Los Angeles’ ongoing housing and homelessness crises. For most residential tenants, California law currently guarantees that they can only be evicted if the landlord has just cause as defined in law. Just cause can include at-fault just cause, such as when a tenant fails to pay rent or engages in criminal activity on the property, or no-fault just cause, such as when a landlord is removing the property from the rental market or the owner or a family member plans to live in the unit for at least 12 months. Exempt from no-fault just-cause eviction protections is housing issued a certificate of occupancy within the last 15 years. SB 522 aims to ensure that just-cause protections that previously applied to housing substantially damaged or destroyed by a disaster will carry over to housing built to replace the damaged or destroyed housing. SB 522 is sponsored by the Los Angeles City Attorney, and is supported by the National Association of Social Workers, California Chapter, Transform, Santa Clara Housing Advocates, and the Alliance of Californians for Community Empowerment (ACCE). It is opposed by the California Chamber of Commerce, the Western Manufactured Housing Communities Associations, and a handful of other business, real estate, and building industry groups. Should the bill pass this Committee it will then be heard in the Senate Local Government Committee.
PROPOSED CHANGES TO THE LAW
Existing law:
- Establishes generally the relations between and responsibilities of landlords and tenants in residential leases (hiring of real property). (Civ. Code §§ 1940 et seq.)
- Establishes the Tenant Protection Act of 2019, which prohibits landlords of certain properties, until January 1, 2030, from evicting a residential tenant who has resided in the unit for 12 months or more, unless the landlord has at-fault or no-fault just cause.
- Defines “at-fault” just cause to mean a tenant’s:
- default in the payment of rent;
- breach of a material term of the lease;
- maintaining or permitting a nuisance on the premises;
- committing waste on the premises;
- refusal to execute a written extension or renewal of a lease for a tenancy in a mobilehome, as prescribed;
- criminal activity on the residential property;
- assigning or subletting the premises in violation of the lease;
- refusal to allow the owner to enter the property as authorized;
- using the premises for an unlawful purpose;
- failure to vacate when the tenant is an employee, agent, or licensee, and the tenant is terminated as an employee, agent, or licensee; and
- a tenant’s failure to deliver possession of the property after providing the owner written notice of the tenant’s intent to terminate the lease.
- Defines “no-fault” just cause to mean:
- when the owner or owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents intend to occupy the property for at least 12 months as their primary residence, as specified;
- a withdrawal of the property from the rental market, as specified;
- when the owner must evict the tenant to comply with a local ordinance or an order of a government agency or court, as prescribed; or
- when the owner intends to demolish or substantially remodel the property, as specified. (Civ. Code § 1946.2)
- Defines “at-fault” just cause to mean a tenant’s:
- Specifies that the just-cause eviction requirements described in (1) and (2), above, do not apply to the following:
- a transient and tourist hotel occupancy, as defined;
- housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, or an adult residential facility;
- dormitories owned and operated by an institution of higher education or a K-12 school;
- housing accommodations in which the tenant shares a bathroom or kitchen with the owner who maintains their principal residence at the property;
- single-family owner-occupied residences;
- a property containing two separate dwelling units within a single structure, in which the owner occupies one of the units at the owner’s principal place of residence at the beginning of the tenancy, as specified;
- housing that has been issued a certificate of occupancy within the last 15 years, unless the housing is a mobilehome;
- residential real property that is alienable separate from the title to any other dwelling unit when the owner is not a corporation, management of a mobilehome park, or other business entity, as specified; and
- housing that is restricted as affordable housing by deed, agreement with a government agency, or other recorded document, as defined. (Civ. Code § 1946.2(e).)
- Specifies that the just-cause provisions described in (2) and (3), above, do not apply to residential real property subject to a local ordinance requiring just cause for evictions, either when the ordinance was adopted on or before September 1, 2019, or when the ordinance is more protective than the state’s just-cause eviction provisions. (Civ. Code § 1946.2(i).)
- Specifies that, if an owner evicts a tenant for no-fault just cause, the owner must either assist the tenant with relocation by providing a direct payment equal to one month’s rent, or waive payment of the last month’s rent. (Civ. Code § 1946.2(d).)
- Specifies that, before an owner may issue a notice of termination for a just cause that is curable, the owner must first give the tenant notice of the violation with an opportunity for the tenant to cure the violation, as prescribed. (Civ. Code § 1946.2(c).)
- Specifies that a landlord who attempts to evict a tenant in violation of the just-cause provisions described in (2) through (8), above, is liable to the tenant for actual damages, reasonable attorney’s fees and costs at the court’s discretion, and for three times actual damages when the owner acted willfully or with oppression, fraud, or malice. Specifies that the Attorney General, or a city attorney or county counsel of the jurisdiction in which the rental unit is located, may seek injunctive relief. Additionally specifies that an owner’s failure to comply with the just-cause provisions renders the written termination notice void. (Civ. Code § 1946.2(g)-(h).)
- Specifies that the just-cause provisions described in (2) through (7), above, are repealed on January 1, 2030. (Civ. Code § 1946.2(n).)
- Provides that, if the residential tenant has resided in the dwelling for less than a year, the landlord must provide notice of termination at least 30 days prior to the termination, and that the landlord must provide notice of termination at least 60 days prior to the termination if the tenant has resided in the residential property for a year or more, except as provided. Provides that a tenant must provide notice of their intention to terminate their tenancy for a periodic tenancy at least as long as the term of the periodic tenancy. If the tenant has received a notice of termination from the owner, the tenant may provide a notice of termination for a period at least as long as the term of a periodic tenancy, if such termination occurs before the owner’s date of termination. (Civ. Code § 1946.1(b)-(d).)
- Provides that a tenant has committed unlawful detainer when they continue in possession of the property without the landlord's permission after:
- the tenant remains in possession of the premises after the expiration of the term of the tenancy without permission of the landlord or otherwise not permitted by law;
- the tenant's nonpayment of rent and service of a 3-day notice to pay or quit, stating the amount that is due;
- the tenant has breached a covenant of the lease or failed to perform other conditions under the lease, and after service of a 3-day notice requiring performance of such covenants or conditions;
- the tenant has breached a covenant of the lease prohibiting subletting, assignment, or waste; has committed or permitted a nuisance on the premises; or used the premises for an unlawful purpose; and
- the tenant gives written notice of the tenant’s intention to terminate the tenancy, but fails to deliver possession of the premises to the landlord at the specified time. (Code of Civ. Proc. § 1161.)
- Requires a tenant defendant in an unlawful detainer action to respond to a notice of summons within ten days, excluding weekends and court holidays, of being served with the notice. Specifies that, if service is completed by mail or the Secretary of State’s address confidentiality program, the defendant must file within fifteen days. (Code of Civ. Proc. § 1167.)
- Defines “disaster,” for the purposes of the California Disaster Assistance Act, as meaning a fire, flood, storm, tidal wave, earthquake, terrorism, epidemic, or other similar public calamity that the Governor determines presents a threat to public safety. (Government Code § 8680.3.)
This bill specifies that, for the exception to the just-cause tenant protections described above for housing issued a certificate of occupancy within the last 15 years, housing built to replace a previous housing unit is not included in that exception if:
- the previous unit was substantially damaged or destroyed by a disaster, as defined by Government Code section 8680.3;
- the previous unit was issued a certificate of occupancy before the unit was substantially damaged or destroyed; and
- the previous unit was subject to the just-cause provisions.
COMMENTS
- Author’s statement
According to the author:
Protecting tenants from unjust evictions is one of the most basic anti-displacement and anti-homelessness actions we can take. The Tenant Protection Act established these provisions for units with a certificate of occupancy date older than 15 years from the current date. The loss of multi-family housing units in the Palisades and Eaton fires forces us to reconsider the efficacy of the 15 years provision. As replacement rental housing units are rebuilt after these and any future disasters, we must ensure the previously enacted protections carry over. Without extending these protections, our homelessness and housing crises will only get worse.
- The Palisades and Altadena wildfires and climate change
In early January 2025, extremely dry conditions and high winds in Los Angeles resulted in two of the worst wildfires in state history. The Palisades fire, which started on January 7th, burned a total of 23,448 acres and damaged or destroyed almost 8,000 structures in the Pacific Palisades and Topanga State Park area of west Los Angeles.[1] That same day, other fires also broke out in the greater Los Angeles area: the Eaton and Hughes fires. The Eaton fire consumed 14,021 acres and damaged or destroyed more than 10,000 structures, including significant portions of the city of Altadena.[2] About half of all properties in both cities were destroyed, and both fires tragically took the lives of 29 civilians and injured a dozen firefighters. All told, the January wildfires in Los Angeles were some of the most destructive wildfires in state history.
Beyond the significant human toll, the fires also have had a financial significant toll on residents and communities where they burned and throughout Southern California. Real estate losses have been estimated to be as high as $30 billion, and just under 13,000 households were displaced by the Palisades and Eaton fires.[3] An estimated 9,592 single family homes and condominiums, 678 apartment units, 2,210 duplex and bungalow courts, and 373 mobilehomes were either heavily damaged or destroyed. Additionally, records show that about 770 rent-controlled units were destroyed in the Pacific Palisades.
All of this significant destruction displaced thousands of homeowners and tenants alike, so much so that rents and occupancy rates throughout the greater Los Angeles area spiked after the fires. Reports of landlords engaging in unlawful price gouging of tenants, prospective tenants, and short-term rentals abounded.[4] The displacement of so many individuals and families caused a significant strain on Los Angeles and the surrounding area’s already strained and insufficient housing supply. Many displaced residents are struggling to find adequate temporary shelter, a reality that is exacerbating Los Angeles’ ongoing housing and homelessness crisis.
In light of this, local and state government have passed various ordinances and rules to try to help Californians displaced by the fires and support tenants in surrounding areas dealing with added economic strain or increased rents. Governor Newsom declared a state of emergency, put into place protections against price gouging, and issued an executive order prohibiting landlords in Los Angeles from evicting tenants for violating their leases by providing shelter in their unit for residents displaced by the fires. The governor also issued executive orders aimed at promoting and streamlining the construction of temporary shelters and the rebuilding of structures destroyed by the fires. At the city and county level, the Los Angeles County Board of Supervisors passed an eviction moratorium that prohibits landlords from evicting certain low-income tenants for unpaid rent until July 31, 2025, when the tenants lived in their units before the fires and lost income due to the wildfire.[5] In addition, the City of Los Angeles passed an ordinance prohibiting evictions for one year due to tenants housing unauthorized persons and pets displaced by the wildfires in their units.[6]
- Just Cause eviction protections under the California Tenant Protection Act
In 2019, the Legislature passed the California Tenant Protection Act (TPA) of 2019 (Chiu, Ch. 597, Stats. 2019) (TPA). The TPA was enacted in response to reports of tenants experiencing significant rent hikes and housing instability due to the state’s housing crisis. Among other provisions, the TPA placed limitations on when a landlord may evict a tenant who has lived in their unit for at least 12 months. Prior to the TPA, a landlord could evict a tenant for any reason, or for no reason at all. Under the TPA, a landlord may only evict such a tenant for one of the reasons that fall under either at-fault just cause or no-fault just cause. (Civ. Code § 1946.2.) At-fault just cause includes reasons such as non-payment of rent, a breach of a material term of the lease, creating a nuisance on the property, criminal activity, subletting the unit in violation of the lease, and failing to return the unit to the landlord’s possession after terminating the lease. (Civ. Code § 1946.2(b)(1).) No-fault just cause includes instances where the landlord or their family members intend to occupy the unit, where the unit is being withdrawn from the rental market, or where the unit is being demolished or substantially remodeled. (Civ. Code § 1946.2(b)(2).) When a landlord evicts a tenant for no-fault just cause, the tenant is entitled to relocation assistance from the landlord or a waiver of the final month’s rent. (Civ. Code § 1946.2(d).) SB 567 (Durazo, Ch. 290, Stats. 2023) made a series of revisions to the existing 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.
The TPA’s just-cause provisions include various exemptions that mean it does not apply to every tenant in California. Just-cause protections do not apply to certain transient or tourist hotels, housing accommodations in a hospital or certain care facilities, single-family residences in which the owner occupies some part of the residence, deed-restricted rent-controlled housing, and housing that was built within the last 15 years. (Civ. Code § 1946.2(e).)
- SB 522 closes a loophole to ensure that tenants can still be covered by the just-cause eviction protections when their housing was built to replace covered housing damaged or destroyed by a natural disaster
In light of the significant amount of housing that was destroyed by the Palisades and Eaton wildfires, SB 522 proposes to narrow the exception in the TPA’s just-cause provisions for housing built within the last 15 years. It specifies that this exception does not apply to housing built within the last 15 years when that housing was built to replace housing that was substantially damaged or destroyed by a disaster, was issued a certificate of occupancy before it was substantially damaged or destroyed, and was previously subject to the just-cause protections. SB 522’s provisions apply to housing damaged or destroyed by fire, flood, storm, tidal wave, earthquake, terrorism, epidemic, or another similar calamity.
The rationale for this change is that housing built to replace housing destroyed by wildfires should maintain the same just-cause protections for its tenants that tenants of the destroyed building enjoyed. Without such a clarification, landlords would be able to escape the TPA’s just-cause eviction protections due to a disaster if they must rebuild the housing. In such a scenario, if it were not for the disaster, the tenants of the landlord’s building would still enjoy the protections of the TPA’s just cause protections. To be clear, SB 522 is not mandating that landlords who rebuild after a disaster cannot evict their tenants – when a leased unit is destroyed, the tenancy ends for the tenant, and under the TPA, landlords can evict tenants to complete substantial remodels to the property - and it is not saying that landlords must accept their previous tenants back. It also does not mandate the rent that landlords may charge. It simply extends the just-cause eviction protections to the tenants of a building that was recently built to replace housing substantially damaged or destroyed by a disaster. Such a policy would provide greater tenant protections and security to tenants in the aftermath of a wildfire or similar disaster, and would close a loophole through which tenants would lose just-cause protections that they would otherwise enjoy except for the disaster that destroyed the previously-protected housing.
Opponents to SB 522 may argue that it discourages landlords from rebuilding housing after a disaster. However, housing destroyed by a disaster typically receives insurance and disaster relief funding to assist with rebuilding the destroyed building. Moreover, there are a variety of ways in which the government can encourage and support property owners to rebuild after a disaster; in fact, in the case of the Los Angeles wildfires, Governor Newsom already has taken various steps to ease and streamline rebuilding. Moreover, considering that just-cause protections do not prohibit a landlord from charging market rate rents or setting the rent for new tenants at the level the market will bear, landlords would still have ample opportunity to make a return on their investments and steady income. Because SB 522 does not provide a similar disaster exception to the exception for recent builds in the TPA’s rent cap, landlords subject to SB 522’s provisions would be able to increase rents on their tenants outside of the TPA’s protections. Additionally, just-cause protections are not a prohibition on evicting tenants, but rather outline the permissible reasons for evicting a tenant. The purpose of just-cause protections are to prevent frivolous evictions, not to prevent evictions all-together. SB 522 simply provides these protections for tenants whose building would otherwise have been covered, but for a disaster. As is currently the case, these just-cause protections would not apply until the tenant has resided in their unit for at least year. Thus, while concern may be raised regarding SB 522’s effect on efforts to rebuild after disasters like the Los Angeles wildfires, such a concern seems unlikely to bear fruit. On the other hand, tenants in housing built to replace housing destroyed by a disaster would enjoy the added security and stability that just-cause eviction protections provide.
- Arguments in support
According to the Los Angeles City Attorney, who is the sponsor of this bill:
As you know, the Tenant Protection Act of 2019 (TPA) prohibits, until January 1, 2030, an owner of residential real property from terminating the tenancy of certain tenants without just cause, either at-fault or no-fault of the tenant. The TPA exempts certain types of residential real property from that prohibition, including, among others, housing that has been issued a certificate of occupancy within the previous 15 years.
SB 522 (Wahab) would exclude housing built to replace a previous housing unit that was subject to the TPA and was substantially damaged or destroyed by a disaster and was issued a certificate of occupancy before that housing unit was substantially damaged or destroyed, from the above-described exemption from the just cause requirements and rental increase limits.
- Arguments in opposition
According the California Chamber of Commerce, which opposes SB 522:
SB 522 will have the unintended consequence of discouraging the reconstruction of housing destroyed by disasters. For example, much of the housing lost in recent Los Angeles wildfires was older and originally built decades ago. Rebuilding this housing will come at a significantly higher cost due to modern building standards and increased construction expenses. The current 15-year exemption from rent caps, established under existing law, allows property owners to secure financing and recover those rebuilding costs over time.
By removing that exemption, SB 522 would make it nearly impossible for property owners to obtain financing for reconstruction because the rent capped units will not cover the construction costs of the properties. Even if they can obtain financing, the cost of the rebuild plus the financing costs will be so high they will choose to find markets where landlord-tenant regulations are much more nuanced. The result: a permanent loss of housing stock in areas already suffering from a housing shortage. Simply put, SB 522 undermines the very goal of protecting and preserving housing in the wake of disasters.
SUPPORT
Los Angeles City Attorney (sponsor)
Alliance of Californians for Community Empowerment
National Association of Social Workers, California Chapter
Santa Clara Housing Advocates
Transform
OPPOSITION
Building Owners and Managers Association of California
California Apartment Association
California Association of Realtors
California Building Industry Association (CBIA)
California Business Properties Association
California Chamber of Commerce
Institute of Real Estate Management (IREM)
Naiop of California, the Commercial Real Estate Development Association
Western Manufactured Housing Communities Association
RELATED LEGISLATION
Pending Legislation:
SB 610 (Pérez, 2025) provides for the responsibility of a landlord or management of a mobilehome park to repair or remediate damage that was the result of a disaster, and provides the remedies available to a tenant if the landlord does not, among other provisions. SB 610 is currently pending before this Committee.
AB 311 (McKinnor, 2025) authorizes a tenant to temporarily permit a person at risk of homelessness to reside in their unit, regardless of the terms of the tenant’s lease, and includes in the definition of a person at risk of homelessness a person who is displaced as a result of a disaster in an area in which a state of emergency has been declared. AB 311 is currently pending before the Senate Rules Committee.
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.
SB 567 (Durazo, Ch. 290, Stats. 2023) made a series of revisions to existing 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.
SB 1482 (Chiu, Ch. 597, Stats. 2019) created the Tenant Protection Act of 2019 that, among other things, provided that tenants who have resided in their unit for at least a year cannot be evicted but for just-cause, with exceptions for certain housing, and prohibited rent increases from exceeding five percent plus the change in the consumer price index, or 10%, whichever is lower.
**************
CalFire, “Palisades Fire,” (3/27/2025) https://www.fire.ca.gov/incidents/2025/1/7/palisades-fire. ↑
CalFire, “Eaton Fire,” (3/04/2025) https://www.fire.ca.gov/incidents/2025/1/7/eaton-fire. ↑
Doug Smith and Sandhya Kambhampati, “Real Estate losses from fires may top $30 billion, from old mobile homes to $23-million mansions,” Los Angeles Times (Feb. 21, 2025) https://www.latimes.com/california/story/2025-02-21/real-estate-losses-from-palisades-and-eaton-fires-top-30-billion#:~:text=Los%20Angeles%20Housing%20Department%20records,the%20city's%20rent%20stabilization%20ordinance. ↑
Dawn Chmielewski, “Los Angeles homeowners face price gouging after wildfires,” Reuters (Jan. 17, 2025) https://www.reuters.com/world/us/displaced-los-angeles-homeowners-face-price-gouging-after-wildfires-2025-01-17/. ↑
Los Angeles Board of Supervisors, Resolution of the County of Los Angeles Board of Supervisors Protecting Qualifying Income Eligible Tenants Directly Financially Impacted by the January 2025 Windstorm and Critical Wildfire Events (Feb. 25, 2025). ↑
Los Angeles Mun. Code § 51.57 (Ord. No. 188486). ↑
Discussed in Hearing
13MIN
Assembly Standing Committee on Judiciary
1H
Assembly Standing Committee on Housing and Community Development
28MIN
Assembly Standing Committee on Housing and Community Development
2MIN
Senate Floor
15MIN
Senate Standing Committee on Judiciary
Bill Author
