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HomeMy WebLinkAboutC-1 Staff Report Tenant Protection Act AB 1482TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MARCO A. MARTINEZ, CITY ATTORNEY DATE: NOVEMBER 4, 2019 SUBJECT: INFORMATION CONCERNING COMPLAINTS OF TENANT EVICTIONS AND IMPACT FROM AB 1482 BACKGROUND On October 8, 2019, Governor Gavin Newsom signed into law the Tenant Protection Act of 2019 (Assembly Bill 1482). AB 1482 limits rent increases across the state to 5 percent plus cost of living inflation, or 10 percent, whichever is lower. The law also prohibits an owner from terminating a tenancy without just cause. But the prohibitions on eviction without just cause will not go into effect until January 1, 2020. DISCUSSION Since the passage of AB 1482, we understand that many cities have received inquiries from landlords, tenants and property managers regarding the impact of AB 1482. In fact, fair housing organizations have reported a significant increase in the number of “no-cause” notices of termination issued to tenants. According to the article linked below, the purpose of the notices is to issue 60-day (no-fault) eviction notices to tenants so that the landlords can raise the rents before the rent control limits of AB 1482 take effect on January 1, 2020. Of course, such actions leave tenants scrambling to find other rental units or pay the increased rents. Since AB 1482 will also contain provisions prohibiting the termination of rental agreements without “just cause” (i.e. a breach of the rental agreement by the tenant), the deadline for issuing a 60-day notice to terminate a tenancy for the purpose of increasing rents before the effective date of AB1482 is/was October 31st. CITY OF AZUSA ACTIONS A landlord that has not issued a notice to terminate tenancy prior to October 31 will likely not be able to terminate a tenancy without being subject to the rent control limits of AB 1482. As a result, we believe the incentive to pursue no-fault evictions will likely subside after October 31st. Nevertheless, we may receive inquiries concerning the new law from tenants who are unsure of its impacts or who may in the process of being evicted for cause (i.e. because they have breached a lease term). For that reason, City staff will be putting together information concerning fair housing resources to assist local tenants that C-1 RECEIVED AND FILED CITY COUNCIL 11/4/2019 AB 1482 November 4, 2019 Page 2 have such inquiries or were subject to a prior notice to terminate their tenancy. That information will be placed on the City webpage and any inquiries concerning such issues will be directed to the agencies that staff identifies. We are hopeful that such resources will assist any tenants that are facing eviction due to AB 1482 or any other reasons. In the meantime, please feel free to contact Sergio, Matt or me with any questions. Prepared by: Reviewed and Approved: Marco A. Martinez Sergio Gonzalez City Attorney City Manager