What is California Tenant Protection Act of 2019?

In January 1, 2020, a statewide law took effect and will last until January 1, 2030 that specifies that in order to end a tenancy, a landlord must have “just cause.” Only after all tenants have occupied the unit for 12 months or more, or after at least one renter has done so for 24 months, do the eviction clauses take effect. A tenancy cannot be ended without one of the permitted “just cause” grounds, which must be specified in the notice of eviction. Just cause” explanations can be classified as “at-fault” or “no-fault” explanations. “No-fault” evictions necessitate relocation help. A tenancy cannot be terminated for “just cause” simply because a lease or rental arrangement has come to an end.

  • This act restricts yearly rent increases to no more than 10% or 5% plus local CPI, whichever is lower. There can be no more than two increases each year, and the total cannot be greater than the 5% + CPI ceiling. To the nearest one-tenth of one percent, the percentage change must be rounded. Subtenants' combined rent payments to a master tenant cannot be more than the amount set by the landlord. The initial rent that can be charged for an empty unit has no upper limit.
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A notice outlining the "just cause" and rent cap protections must be given to each renter in each unit protected by the state statute. The notice must be delivered in writing to the tenant for any tenancy that began before July 1, 2020, no later than August 1, 2020, or as an amendment to the lease or rental agreement. The notice must be given as an amendment to the lease or rental agreement for any tenancy that begins or is renewed on or after July 1, 2020, or as a written notification that is signed by the tenant and given to the tenant in a copy.

What types of housing are covered?

Unless it fits into one of the following exemption categories, all housing located in the state of California is subject to this act:

A.

Units built within the previous 15 years (this applies on a rolling basis - i.e.. a unit constructed on January 1, 2006 is not covered as of January, 1 2020, but is covered on and after January 1, 2021).

B.

Units that are only affordable to low- or moderate-income households due to restrictions in a deed, regulations, or other documented documents.

C.

Certain dormitories

D.

A two-unit building, providing the tenant's tenancy included the entire time, the second unit was inhabited by the property's owner.

E.

If the owner resides at the property as their primary residence, the housing unit will have shared bathrooms or kitchens with them.

F.

An adult residential facility, a registered long-term care home for the elderly, a charity hospital, a church, or an extended care facility.

G.

Hotel occupancy for transients and tourists as specified in Section 1940 of the Civil Code(b)

H.

Condominiums and single-family dwellings are only exempt if the property is not owned by a real estate trust, a corporation, or an LLC with at least one corporate member and according to Civil Code Sections 1946.2(e)(8)(B)(i) and 1947.12(d)(5)(B), the landlord clearly stated that the tenancy is not subject to the "just cause" and rent increase requirements.

Reminder

Please take note that if there are multiple dwelling units on the same lot or if there is a second residential unit in the building that cannot be sold separately from the subject unit, the restricted exemption for single-family homes is not applicable.

Only after all tenants have occupied the unit for 12 months or more, or after at least one renter has done so for 24 months, do the eviction clauses take effect. A renter cannot agree to renounce these protections, and any such agreement is null and void as being against public policy. If a unit is currently protected by municipal eviction and/or rent increase laws in San Francisco, existing local laws continue to apply to the unit, and the statewide statute does not repeal or replace those tenant safeguards. Keep in mind that this act may change from time to time so it is important to be aware for any changes it may occur to be able to avoid lawsuits.

 

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