SB 567 – Updates to Tenant Protection Act of 2019
Senate Bill 567, signed into law by Governor Newsom and authored by Senator Maria Elena Durazo, D-Los Angeles, is scheduled to take effect on April 1, 2024. This legislation amends eviction procedures outlined in AB 1482, specifically targeting no-fault evictions due to substantial remodel and owner/family member move-in, aiming to close perceived loopholes in landlord practices.
Key points regarding changes in owner/family member evictions:
- Occupancy requirement: The owner/family member moving in must reside at the property for a minimum of 12 continuous months as their primary residence.
- Existing occupancy and vacancies: Eviction is not allowed if the intended occupant already resides on the property or if a similar vacancy exists.
- Notice details: The 30/60 day notice must specify names and relationships, with tenants having the right to request proof.
- Move-in timeline: The owner/family member must move in within 90 days post-tenant vacating, with potential compensation for the displaced tenant if this requirement is not met.
- Tenant contact information: If interested in reoccupying the unit following the remodel, the tenant should inform the owner and provide contact details, including address, telephone number, and email.
Key points regarding changes in substantial remodel evictions:
- Notice content: The 30/60 day notice must inform tenants of the owner's intent to demolish or remodel, offering the chance to re-rent under previous terms if the changes don't occur.
- Description and duration: The notice should detail the type of remodeling and its expected duration, or, for demolition, specify the expected date.
- Permit disclosure: Owners must provide tenants with remodeling permits or, if applicable, a contract with the contractor for hazardous material abatement.
- Tenant option: Tenants are informed of the opportunity to express interest in reoccupying the unit after the remodel, providing necessary contact details.
AB 12 Makes Changes to Security Deposit Collection
AB 12, recently signed into law by Governor Newsom and authored by Democrat Assemblyman Matt Haney, brings noteworthy changes to the rules governing security deposits for residential rentals in California.
Key details under AB 12:
- Previously, landlords were allowed to collect up to two months' rent for an unfurnished unit and up to three months' rent for a furnished unit as a security deposit.
- Effective July 1, 2024, AB 12 modifies these regulations, limiting landlords to demanding a security deposit equivalent to one month's rent for a residential rental.
- In addition to the security deposit, landlords can collect the first month's rent from a prospective tenant before the tenancy starts.
Exceptions under AB 12:
- Landlords meeting specific criteria can demand up to the equivalent of two months' rent as a security deposit.
- Criteria for exception: The landlord must be a natural person or a limited liability company where all members are natural persons, and the landlord must own no more than two residential rental properties collectively comprising no more than four dwelling units offered for rent.
- Notably, this exception does not apply if the prospective tenant is a service member. In such cases, the landlord can only demand up to the equivalent of one month's rent, irrespective of meeting the exemption criteria.
SB 267 - Unlawful Use of Credit History
This legislation declares the illegality of housing providers, in cases involving government rent subsidies, utilizing a person's credit history as a mandatory part of the rental application process. Instead, applicants must be given the option to provide alternative evidence of their reasonable ability to pay the rent. Here are the major provisions:
Applicant's Discretion for Alternative Evidence
Prohibits the use of a person's credit history in the application process for a rental unit when there is a government rent subsidy, without offering the applicant the option to provide alternative evidence. This evidence may include government benefit payments, pay records, and bank statements.
Requires housing providers to:
- Offer the applicant reasonable time to submit alternative evidence, should they choose this option.
- Fairly consider the alternative evidence provided by the applicant, instead of relying solely on their credit history, when deciding whether to offer the rental unit.
Clarifies that the legislation does not limit the owner of a rental unit from:
- Requesting information or documentation to verify employment.
- Seeking landlord references.
- Verifying the identity of the person applying for the rental unit.