Understanding AB 1482

Understanding AB 1482 

Attention: Anti-Price Gouging rules are in effect in many jurisdictions throughout the state, including San Diego. When these rules are in effect, rent increases are limited to no more than 10% of the previously charged or advertised price. This is particularly important to AB 1482-exempt properties and newly created tenancies. Please refer to the Office of Emergency Services website for more information.

Find out what Rent Control means for you... 

Last year, Governor Gavin Newsom signed AB 1482 (Chiu). In 2020, as part of AB 3088, clean up language was included to clarify some portions of the law. Please see the highlighted portions below to see the changes to AB 1482, the Tenant Protection Act of 2019.  

Here is what you need to know: 

• Rent increases in any 12-month period will be limited to 5% plus the change in inflation as measured by the Consumer Price Index (CPI) for the area in which the property is located using the updated formula listed below. Please note: We are providing the pre-August 2020 figures for reference only and to provide an example of how the changes in the law will apply going forward. The post August figures are applicable for rent increases that take effect in the remainder of 2020.  
  • For rent increases that take effect before August 1 of any calendar year, the following shall apply:
    • 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.
      • San Diego County: 2.2% 
      • Riverside County: 2.8% 
      • Imperial County: 3.3%
  • For rent increases that take effect on or after August 1 of any calendar year, the following shall apply:
    • • 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.
        • San Diego County: 1.8% 
        • Riverside County: 2.3% 
        • Imperial County: 1%
  • The percentage change shall be rounded to the nearest one-tenth of 1 percent.
  • San Diego & Riverside region reports are provided every other month for odd months by the Bureau of Labor Statistics. Imperial County will use the California Index as provided by the Department of Industrial Relations.
    • To access the State’s CPI calculator, click here. (3rd Bullet/Excel Calculator)
• You will be able to increase rent up to two times a year, but you are still limited to the annual cap.
• Vacancy Decontrol remains intact. You will be able to reset your rents to market rate upon all original tenants vacating.
• The bill is set to sunset in 10 years. 
• Just Cause termination will be implemented statewide and kick in at 12 months of tenancy if all tenants have occupied the unit for 12 months or more. 
• If there has been changes in occupancy, then Just Cause takes effect at 24 months. 
• Just Cause applies to month-to-month tenancies and fixed-term lease renewals.
• At-Fault terminations include, but are not limited to, non-payment of rent, lease violations, criminal activity. 
• No-Fault terminations are defined as owner move-in, withdrawal from rental market, a habitability order from a government agency, and intent to demolish or substantially remodel.
  • Substantially remodel is defined as: the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. 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 rehabilitation.
• No-Fault terminations will trigger a relocation payment of one-month's rent, regardless of the tenant's income, to be paid within 15 days of the notice being served. The last month's rent may also be waived.
• Specific language and disclosures are required for exempt properties and when terminating tenancy. SCRHA will be updating its forms accordingly. 

Exemptions

• Single-Family Homes and Condos
  • This does not apply if they are owned by a Real Estate Investment Trust (REIT), Corporation or LLC where one of the owners is a Corporation. 
• Properties containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s 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. 
• Deed Restricted Housing
• Housing built within the last 15 years (determined by Certificate of Occupancy date)
• Housing subject to a local Rent Control ordinance (Local Ordinance & Costa-Hawkins apply. I.e. Palm Springs) 
• Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
• *Jurisdictions like the City of San Diego, who already had an ordinance in place before Sept. 1, 2019, are not subject to the Just Cause provisions. Owners and managers of properties in the City of San Diego should refer to Form 420 and SCRHA White Paper - Cause Eviction (60-day with cause) - City of San Diego.  

These are the highlights of the law. To read the bill in its entirety, click here.  

Members may now access the following forms in the SCRHA Forms Library:

• AB 1482 Rent Reduction Letter (to notify residents of a rent adjustment if you increased rent more than the allowable amount since March 15, 2019)
• AB 1482 Exemption Letter (for fixed-term leases and month-to-month agreements)
• AB 1482 Exemption Addendum (for use with new rental agreements)
• 60-Day to Terminate Tenancy – Statewide Just Cause NEW FORM!
• AB 1482 Info Sheet for Residents (FAQ sheet to share with residents)