- Tenant Allowing Occupancy of Premises to Person “At risk of homelessness:” Senate Bill 1188 creates a legal framework allowing a Tenant, with the written approval of the Owner/Landlord, to take in someone who is “at risk of homelessness.” This new law includes a number of protections for both the Landlord and Tenant, including the ability of the Tenant to remove the person at risk of homelessness on short notice with the assistance of the police.
- Service Members Civil Relief Act (“SCRA”): The SCRA gives military members a wide range of legal protections that are not available to the general public. The SCRA applies to all active duty service members, reservists and members of the National Guard while on active duty. The protection begins on the date of entering active duty and, in most instances, terminates within 30 to 90 days after discharge. Some of these protections relate to real estate including, but not limited to, stopping foreclosures without a court order, limiting evictions (unless the rent is higher than $3,851.03 per month in 2019) and the following two new Landlord Tenant requirements:
A. Senate Bill 644 limits the security deposit that can be charged to service members. Under this new law, the Owner/Landlord may only collect as the security deposit one month’s rent for an unfurnished unit, or two months for furnished units, from a service member who resides in the premises.
B. Senate Bill 222 makes it a violation of the California Fair Employment and Housing Act (“FEHA”) to discriminate on the basis of military or veteran status. Owners/Landlords (or their Agents) are now prohibited from making any written or oral inquiry concerning veteran or military status and cannot advertise any preference based upon military status. The definition of “Discrimination” under the FEHA also includes making false statements regarding the availability of housing, providing inferior housing services, harassment and the cancellation or termination of a rental agreement.
- Discrimination on the Basis of Source of income: Senate Bills 222 and 329 broaden the definition of existing laws relating to “Discrimination on the Basis of Source of Income.” It is now a violation of the California Fair Employment and Housing Act (“FEHA”) for Owners/Landlords (or their Agents) to make any attempt to refuse to rent or lease to a Tenant based upon the Tenant’s receipt of federal, state or local housing subsidies. “Source of Income” is now defined to include any type of funds used by a Tenant to pay the Landlord such as federal, state, or local public assistance and/or housing subsidies, including, but not limited to, federal housing assistance vouchers issued under Section 8 of the U.S. Housing Act of 1937 and Veterans Affairs Supporting Housing (“VASH”). The definition of “Discrimination” under the FEHA also includes making false statements regarding the availability of housing, providing inferior housing services, harassment and/or the cancellation or termination of a rental agreement.
- Ellis Act: Assembly Bill 1399 clarifies this law regarding the withdrawal of accommodations from the rental market. Under the revised law, the Owner cannot pay liquidated damages to a prior tenant in lieu of offering the Tenant the opportunity to re-rent their former unit. The date on which the accommodations are deemed to have been withdrawn from the rental market is the date on which the final tenancy among all Tenants is terminated.
- 90-Day Notice for Rent Increases above 10%: Assembly Bill 1110 specifies that if a proposed rent increase for a Tenant is greater than 10 percent of the rental amount charged to that Tenant at any time duringthe 12 months preceding the effective date of the increase, either in and of itself or when combined with any other rent increases for that 12 period, the Notice shall be delivered at least 90 days before the effective date of the increase. The Notice period for rent increases of 10% or less (combining all prior rent increases within the preceding 12 months) remains 30 days. Some exceptions apply and may be impacted by local ordinances.
NOTE: Since there are Landlords who will be exempt from the statewide Rent Cap and Just Cause Eviction law and are not subject to any local rent cap laws, it is logical that some Landlords will be able to increase the rent above 10% and, in those circumstances, the Landlord must provide at least 90 days’ notice of the rent increase.
- Family Daycare Homes: Senate Bill 234 requires large family daycare homes with up to 14 children to be treated as a residential use for purposes of all local ordinances. Prior law had set the limit at 8 children. The new law also clarifies that apartments may be used as family daycare homes. It is now a violation of the California Fair Employment and Housing Act (“FEHA”) if Owners/Landlords (or their Agents) discriminate against family daycare home providers.
- Recycling Bins: Assembly Bill 827 requires a multi-family dwelling of five or more units, among other businesses, to provide customers with a recycling bin or container for a waste stream that is visible, easily accessible, adjacent to each bin or container for trash other than that recyclable waste stream (except in restrooms) and clearly marked with educational signage. On or before July 1, 2020, the Department of Resources Recycling and Recovery will develop model signage that commercial and organic waste generators may utilize to mark the recycling bins provided to customers.
- Religious Items may be Displayed on Entry Doors: Senate Bill 652 prohibits a residential property owner or a Common Interest Development from enforcing or adopting a restriction that prohibits the display of religious items on an entry door or entry door frame of a dwelling. This new law excludes from that protection religious displays that (a) threatens public health or safety; (b) hinders the use of an entry door; (c) violates any federal, state or local law; (d) contains graphics, language or any display that is obscene or otherwise illegal; and/or (e) if the religious display on its own or in combination with any other religious item has a total size greater than 36 by 12 square inches.
NOTE: This Weekly Practice Tip is not a complete list of all new laws that can or will impact real estate licensees and/or real estate transactions.
For information on the new laws affecting the legalization of Accessory Dwelling Units, see “Weekly Practice Tip: Accessory Dwelling Units.”
For information on the Rent Cap and Just Cause Eviction Law, see “Weekly Practice Tip: Rent Cap and Just Cause Addendum.”
For information on other new laws, see “Weekly Practice Tip: New Laws for 2020.”
This Weekly Practice Tip is an attorney-client privileged document for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
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