Legislation Highlights

The first quarter of 2019 saw a volume of proposed legislation relating to the rental housing industry with several bills, acts, and ordinances that could go on the ballot. The following list are of potential interest to landlords.

Assembly Bill 1110: This rent increase Bill would increase the number of days a landlord is required to provide notice of a increase in rent of more than 10% to 90 days as opposed to the current 60 day requirement. Under this piece of legislation, the notice requirement will remain at 60 days for increases under 10 % for tenants who occupy residential dwellings more than 12 months.

Landlords will be required to provide 120 days notice for any rent increases of 15% or more.

Assembly Bill 53: The Obama Administration releases a report to HUD a few years ago that suggested denial of criminal solely based on their prior background is considered discriminatory in nature. HUD cited some of the findings indicated in the report in a subsequent document on Fair Housing.

Although the report or document did not result in enacting legislation or court legal precedent, many landlord`s and management companies began to alter their leasing policy by not denying a rental application solely on a person`s past criminal back. The Assembly Bill William any question on a rental application relating to an applicant`s criminal backbackground.

Senate  Bill 329: Years prior to former Los Angeles Clipper owner Donald Sterling being forced to sell the franchise, an applicant for one of his Wilshire apartment units was turned down because he did not accept applicants with Section 8 Vouchers. The apartment industry was concerned that the tenant prevailing in the case would set a legal precedent that would force landlords to accept applicants with Section 8 voucher(a clear violation of contract law)

This bill would in essence turn that scenario into reality, which would in violation of contract law as a valid legal contract requires bi-lateral consent to the terms and provision of an agreement.

SCA – 3: Heirs of estates currently have Proposition 13 protection from re-assessment of their parent’s rental property which saves them a great deal of money in property taxes. That could change with a measure proposed by Senator Jerry Hill of San Mateo.

He has introduced a ballot measure to require heir who have received a tax break to require the children to live in the home or have the property re-assessed at the current value. Senator Hill calls the current protection ‘abuses’ of the system for people who take advantage of the loophole. The California Association of Realtors will be sponsoring an initiative for the November 2020 ballot that would include no tax break for heirs of commercial properties

We will have more updated in our blog in the coming week and months.

By  M.A. Williams