News Alert - Proposed Senate Bills 466, 567 and A.B. 12 (5.23.22)

Senate Bill 466 is an Attack on All Property Rights

Senate Bill 466 would eliminate many of the protections property owners now have under the Costa-Hawkins Rental Housing Act of 1995 (Costa Hawkins). Costa Hawkins exempts properties constructed after 1995 (or following an earlier date if local rent control went into effect prior to 1995) from local rent control ordinances. Senate Bill 466 would eliminate these exemptions.

Senate Bill 466 would, after 28 years following issuance of a certificate of occupancy, previously exempt multifamily rental properties with 5 or more units will become subject to local rental control laws. For example, starting in 2024, properties that were constructed and issued a certificate of occupancy in 1996 will fall under local rent control laws (and 1997 properties fall under local rent control in 2025, etc.).

Local price controls on rent increases for newer construction will force housing providers out of the rental housing business and only exacerbate the State’s housing shortages and lead to higher rental rates.

Oppressive rent control measures under local regulations will discourage construction of badly needed housing developments. The State of California will never catch up on developing new housing units and meeting demand if Senate Bill 466 passes.

TAKE ACTION TODAY and Urge a NO VOTE on Senate Bill 466. After the last three years rental housing providers have been through, with challenging rent collections and moratoriums on increases, Senate Bill 466 is not the right approach to solving our State’s housing problems. Senate Bill 466 will only worsen California's housing crisis.

(Note: The Costa-Hawkins Rental Housing Act also exempts single-family homes or condominiums of any age from local rent control ordinances, and these exemptions will remain. In addition, exemptions from local rent control for properties with up to 4 units and for accessory dwelling units (ADUs) from the so-called “rolling 28-year period” described above are being given. In other words, a 4-unit rental property built in 1996 would not fall under a local jurisdiction’s rent control law if a certificate of occupancy was issued for that property after 1995 or after local rent control was passed (if earlier).)

Senate Bill 567 Will Harm All Rental Property Owners, Especially Independent Owners

Senate Bill 567 massively expands “just cause” eviction rules under state law. Strict limitations are being placed on owner move-ins, tenancy terminations for major remodels, and Ellis Act evictions, and it authorizes tenants and public agencies to file lawsuits against housing providers for any infractions. Under Senate Bill 567:

• Eviction for Owner Move-In Permitted Only Under the Following Conditions: (i) tenant not over 60, disabled, or terminally ill; (ii) owner must own 51 percent or more of property; (iii) person moving-in must not already live in another rental unit at the property and there must be no other comparable unit available; (iv) owner  must occupy unit within 90 days; and (v) owner must use the unit as primary residence for 12 continuous months.
• Eviction for Major Remodel Permitted Only When: (i) work requires tenant’s absence for 30 or more days; (ii) work must be necessary for compliance with codes, health and safety; (iii) landlord must obtain all required permits; and (iv) landlord must provide written notice of tenant’s option to select temporary relocation assistance and right to return on the same terms or permanent relocation assistance.
• For Ellis Act Evictions, If property is returned to rental market before 5 years has elapsed, owner is liable for damages along with the following: (i) property owner must offer the displaced tenant a right of first refusal to return to the property under the same terms as before; and (ii) property owner is prohibited from re-renting the units at a rate higher than the rate in force when the property was withdrawn from the rental market plus any permissible intervening rent increases.

TAKE ACTION TODAY and Urge a NO VOTE on Senate Bill 567. Senate Bill 567 is the wrong approach for solving our State’s housing problems and will discourage owners from making necessary upgrades to California’s aging housing stock. Senate Bill 567 will only worsen California's housing crisis. Senate Bill 567 will create an environment of opportunity for unscrupulous attorneys to file frivolous lawsuits against unsuspecting housing providers already struggling to make ends meet.

Assembly Bill 12 Will Place Housing Providers in Harms Way

Proposed Assembly Bill 12 limits the amount of security deposit owners may accept to just 30-days (one month’s rent) irrespective of an applicant’s credit history, allowance for animals, and whether the rental unit is furnished or unfurnished. Assembly Bill 12 will force housing providers to take on far too much risk in certain cases, and limit flexibility to accept renter applicants who may not entirely qualify and meet financial criteria (e.g., students). If passed, no longer will housing providers be able to afford to take on any additional risk and give a break to persons or families who may be in need of housing but whose credit score may not meet the minimum criteria.

TAKE ACTION TODAY and Urge a NO VOTE on Assembly Bill 12. Assembly Bill 12 is the wrong approach for solving our State’s housing problems and will discourage owners from taking risks on renter applicants that do not quite meet established financial criteria. Assembly Bill 12 will have unintended consequences by discouraging acceptance of applicants rather than saving applicants a few extra dollars in security deposit money that will eventually be returned to them.

ACT TODAY! Contact These Elected Representatives Below and Urge NO VOTES on Senate Bills 466 and 567, and a NO VOTE on Assembly Bill 12 – Please Call Rather Than Email for Best Impact!

Let Them Know You Live or Own Property in Their District!

• Ben Allen (D-Los Angeles): (916) 651-4024, senator.allen@senate.ca.gov
• Bob Archuleta (D- Los Angeles) : (916) 651-4030, senator.archuleta@senate.ca.gov
• Steve Bradford (D-Los Angeles): (916) 651-4035, senator.bradford@senate.ca.gov
• Lena Gonzalez (D-Los Angeles): (916) 651-4033, senator.gonzalez@senate.ca.gov
• Caroline Menjivar (D-Burbank): (916) 651-4020, senator.menjivar@senate.ca.gov
• Josh Newman (D-Los Angeles / San Bernardino): (916) 651-4029, newman@senate.ca.gov
• Steve Padilla (D-Riverside): (916) 651-4018, senator.padilla@senate.ca.gov
• Anthony Portantino (D-Los Angeles): (916) 651-4025, senator.portantino@senate.ca.gov
• Richard Roth (D-Riverside): (916) 651-4031, senator.roth@senate.ca.gov
• Susan Rubio (D-Los Angeles): (916) 651-4022, senator.rubio@senate.ca.gov
• Henry Stern (D-Los Angeles): (916) 651-4027, senator.stern@senate.ca.gov

iF YOU WANT TO EMAIL: COPY AND PASTE THE EMAILS BELOW 

senator.allen@senate.ca.gov, senator.archuleta@senate.ca.gov, senator.bradford@senate.ca.gov, senator.gonzalez@senate.ca.gov, senator.menjivar@senate.ca.gov, newman@senate.ca.gov, senator.padilla@senate.ca.gov, senator.portantino@senate.ca.gov, senator.roth@senate.ca.gov, senator.rubio@senate.ca.gov, senator.stern@senate.ca.gov

PLEASE! Support Us! Give Today…

If you want to STOP harmful regulations like Senate Bills 466, 567 and Assembly Bill 12 from passing in the future, give us the resources we need to successfully fight back.  Make a contribution to the Apartment Association of Greater Los Angeles’ Political Action Committee TODAY! Make your contribution at: www.aagla.org/issuesPAC.