Rent Control - A Resource for Los Angeles Multifamily Owners

LA County Eviction Moratorium Extended by 2 Months

The LA County Board of Supervisors has voted to extend the countywide renters protections once more. The moratorium will now expire at the end of March 2023. County leaders have indicated that this will be the last time they push the end date.

According to the LA Times and other sources, because properties located in the City of Los Angeles will no longer have its own eviction moratorium (as of January 31, 2023), the eviction moratorium for LA County will apply to the properties and residents of the City of Los Angeles starting February 1, 2023 and ending March 31, 2023.

The Latest Renter Protections in LA

In addition to the LA County eviction moratorium extension, last week the LA City Council also approved additional sweeping renter protections outlined below which pertain to properties located in the City of Los Angeles:

There are three main components to the LA City expanded renter protections:

Universal Just Cause: The LA Rent Stabilization Ordinance currently lays out specific allowable causes for evictions. These include reasons such as failure to pay rent, illegal activity, etc. Just Cause requires a landlord to specify the reason for eviction from the RSO list. In cases where landlords evict tenants without an approved cause (called a “no fault” eviction), then the landlord would be required to pay tenant relocation costs.
Relocation Assistance for Tenants subjected to Large Rent Increases over 10%: While this certainly does not apply to most landlords whose properties are already subject to LA Rent Stabilization, Landlords who raise rents by an amount greater than 10% of their tenant’s current rent will be required to pay the renter relocation costs. Relocation fee amounts are determined based on the length of tenancy with additional relocation fees to be paid to qualified renters.
There will now be a Minimum Threshold for Failure to Pay Evictions: Landlords will not be allowed to evict tenants who fall just a small amount behind on rent. You may only proceed with an eviction if the unpaid rent amount exceeds one month’s worth of fair market rent for that unit type (currently $1,747 for one-bedroom, $2,222 for two-bedroom). IE if a tenant lives in a one-bedroom unit and owes total back rent of less than $1,747 – that tenant cannot be evicted.

A quick summary of some key California Legislation significant to the Real Estate industry.

Senate Bill 9

On September 16th, 2021, California Senate Bill No.9 (SB 9) was signed into law and will take effect Jan. 1, 2022.

SB 9 could lead to up to four homes on parcels where currently only one exists. It would do so by allowing existing single-family homes to be converted into duplexes; it would also allow single-family parcels to be subdivided into two lots, while allowing for a new two-unit building to be constructed on the newly formed lot.

There are several exemptions to the ministerial approvals because the bill requires that a development or parcel to be subdivided must be located within an urbanized area or urban cluster and cannot be located on prime farmland, wetlands, high fire zone areas, or land within a 100-year floodplain or land in an historic district.

Senate Bill 10

SB 10 creates a voluntary process for local governments to access a streamlined zoning process for new multi-unit housing near transit or in urban infill areas, with up to 10 units per parcel.

The legislation simplifies the CEQA requirements for upzoning, giving local leaders another tool to voluntarily increase density and provide affordable rental opportunities to more Californians.

Senate Bill 219

This bill allows a county tax collector to cancel property tax delinquency penalties when failure to make the payment is due to a documented hardship arising from a shelter-in-place order, and if the principal amount of tax due is paid no later than June 30 of the fiscal year (FY) in which the payment first became delinquent.

Senate Bill 315

January 1, 2023 of Assembly Bill 139 (scheduled to be repealed January 1, 2021) which accomplishes the transfer of real property by means of a revocable transfer upon death deed (TOD).

Senate Bill 539

Late last year, California voters approved Proposition 19 to allow those who are age 55 or older, persons with disabilities, and victims of wildfires greater freedom to transfer their property tax basis and provide revenue for fire districts and local governments.

SB 539 provides necessary clarifications for the proper implementation of Proposition 19’s provisions. These clarifications will help ensure Proposition 19 is implemented consistently throughout California and provide certainty to qualifying homeowners and those with family farms.

Assembly Bill 175

AB 175 prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust and prescribes a procedure for the exercise of that power.

This bill would revise the process for finalizing the trustee sale and extends the date for recording the trustee’s deed from 18 to 21 calendar days.

The bill would also extend the date that the trustee’s sale is deemed perfected, if an eligible bidder submits a written notice of intent to bid, based on the recording of the trustee’s deed, as described, from 48 days to 60 days.

Assembly Bill 345

AB 345 requires each local agency to allow an accessory dwelling unit to be sold or conveyed separately from the primary residence to a qualified buyer if specific conditions are met, including that the property was built or developed by a qualified nonprofit corporation and that the property is held pursuant to a recorded tenancy in common agreement.

Assembly Bill 803

AB 803 authorizes a development proponent to submit an application for the construction of a small home lot development, as defined, that meets specified criteria.

The bill would require a small home lot development to meet a minimum unit requirement and to consist of single-family housing units with an average total area of floorspace of 1,750 net habitable square feet or less.

Assembly Bill 1466

Assembly Bill 1466, which requires that the county recorder of each county establish a program to identify and redact unlawfully restrictive covenants from California real property records. Among the various requirements imposed on county recorders under the program, recorders will be tasked with creating an implementation plan that outlines the methods by which they will carry out the unlawful restrictive covenants’ identification and redaction.

In addition, the bill requires that, if requested before the close of escrow, a title or escrow company directly involved in a pending transaction shall assist in the preparation of a restrictive covenant modification (RCM) form for submission and possible redaction of the unlawful restrictive covenant.

https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1466