More than 3 million homes in California, representing half of all renters, spend over a third of their income on rent. This makes them “rent-burdened” according to the federal government’s definition. To address this issue and the housing crisis, Assemblyman David Chiu introduced Assembly Bill 1482 (“AB 1482”) in February 2019. Governor Gavin Newsom signed AB 1482 into law on October 7, 2019. The law will bring significant changes for landlords and tenants in California in 2020. While AB 1482 doesn’t replace existing tenant protections, it provides additional safeguards in areas where tenants had limited or no protection.
WHO
AB 1482 applies to residential units across California, with exceptions for housing built within the last 15 years, single-family homes not owned by corporations or trusts, and owner-occupied duplexes. Civil Code 1946.2(e) lists all exempted units from AB 1482 restrictions.
WHAT
AB 1482 imposes restrictions on rent increases and requires landlords to have Just Cause for evictions.
Rent Increase Cap
Under AB 1482, rent increases are capped at 5% plus inflation or 10%, whichever is lower, in any 12-month period, with exceptions.
Just Cause Eviction
AB 1482 prohibits landlords from evicting tenants without Just Cause, with categories for at-fault and no-fault causes. The law also requires landlords to provide relocation assistance or waive the tenant’s last month’s rent for no-fault evictions.
AB 1482 also changes eviction notice requirements, where landlords must state the cause explicitly. Landlords and Property Managers must comply with the new notice requirements outlined in AB 1482.
WHEN
AB 1482 was signed into law on October 7, 2019, and will remain in effect until January 1, 2030, unless modified.
WHY
AB 1482 has sparked debates across California due to its impact on rent and evictions. Arguments in support highlight the need to protect rent-burdened tenants, while opposition claims that the law may burden small property owners and worsen the housing crisis.
Our firm specializes in real estate law and is prepared to address the challenges and changes brought about by AB 1482. If you have any questions or need guidance regarding AB 1482, we are here to help.