Yesterday’s News

During a Zoom meeting last week the attorney began the meeting by disclosing that; “The information you are about to receive may change.” This has never been a truer statement than it has during the last few months. Almost daily we are receiving reports from state and local officials about everything from Covid 19 to eviction moratoriums. Often the information is obsolete a few days later. What does seem to be reliable news is that we are making progress towards opening up and getting back to work.

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Shelter in Place = No Paycheck for Many

While some individuals can continue to work, most people have temporarily lost their jobs. Fortunately we live in a world of very generous and compasionate individuals.

Large tech giants have stepped up and donated millions toward the Santa Clara County Homelessness Prevention System. The emergency assistance program is intended to provide help with rent payments or other basic needs to county residents who make less than 80 percent of the area median income.

Those with COVID-related impacts can now apply for financial assistance ($4,000/month max) at sacredheartcs.org/covid19 or call (408) 780-9134.

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New Legislation 2019 Includes “Just Cause”

Summary of New Legislation, AB 1482, Presented by RHN

Rent Increases:

Cap of 5% + cost of living (CPI) or 10%, whichever is the lower of the gross rental rate, over the course of any 12-month period.

No more than 2 increments in any 12-month period.

Just Cause

  • At Fault

Nonpayment of rent

Violation of the lease after being issued a written notice to correct

Committing or permitting a nuisance

Committing waste

Upon termination of a lease (after Jan 1, 2020), and receipt of a written request from owner, tenant refuses to execute a written extension or renewal of the lease with similar provisions.

Assigning or subletting the premises in violation of the lease

Refusal to allow the owner to enter

Using the premises for an unlawful purpose

An employee, agent or licensee’s failure to vacate after their termination as an employee

After giving written notice to vacate that is accepted in writing by landlord but fails to deliver possession at the time specified in the written notice

  • No Fault

Intent to occupy the property by the owner, their spouse, domestic partner, children, grandchildren, parents or grandparents*

*For leases entered into on or after July 1, 2020, shall only apply if tenant agrees in writing to the termination to allow or owner or family member to occupy or there is a provision in the lease allowing the owner to terminate the lease for this reason

Withdrawal from the rental market:

An order issued by government agency or court relating to the habitability

An order issued by government agency or court to vacate the property

A local ordinance the necessitates the vacating of the property

It is determined by government agency or court that the tenant is at fault for the conditions triggering the order to vacate (Tenant not entitled to relocation fees)

Intent to demolish or substantially remodel the property

For No Fault Owner is required to do one of the following:

Shall notify tenant of their right to relocation assistance by:

Waiving rent for the final month

Make direct payment to tenant for an amount equal to one month rent. For this option, owner must pay with 15 calendar days of service of the notice

If tenant fails to vacate upon expiration of the notice to terminate, the relocation assistance shall be recoverable as damages in an action to recover possession

Owner’s failure to comply shall render the termination notice void

Not included are single-family and condos owned by private individuals

Duplexes where owner occupies one of the units as their principal place of residency

Housing that has been issued a certificate of occupancy within the previous 15 years

Not exempt are any of the following:

(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.

(ii) A corporation.

(iii) A limited liability company in which at least one member is a corporation 

Clause to be included in lease agreements after July 1, 2020

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New 2019 Laws

Here’s a summary of the new laws that have been passed this year. Some of them still waiting for Governor Newsom’s signature.

AB 1482 by Assembly Member Chiu

Rent Increases: Cap of 5% + cost of living or 10%, whichever is the lower of the gross rental rate, over the course of any 12-month period. AB 1482 includes Just Cause and No Fault Evictions. It does not include single-family homes or condos owned by individuals.

SB 330 by Sen Nancy Skinner

The California Legislature has approved Senate Bill 330, the Housing Crisis Act of 2019. SB 330 will accelerate housing construction in California by cutting the time it takes to obtain building permits, limiting fees on housing, and barring local governments from reducing the number of homes that can be built.

SB 234 by Sen Nancy Skinner

Gov. Gavin Newsom signed into law Senate Bill 234, the “Keeping Kids Close to Home Act”.  The new law will expand childcare opportunities for California families and reduce costs and red tape for home childcare providers statewide. Large family daycare homes that provide care to up to 14 children will receive the same exemptions under local neighborhood zoning and permitting laws that small family daycare homes now enjoy.

AB 1188 by Assembly Member Gabriel

This bill would authorize a tenant to temporarily permit the occupancy of their dwelling unit by a person who is at risk of homelessness, regardless of the terms of the lease or rental agreement. The tenant would need written approval of the owner or landlord of the property, which could be subject to extension under certain circumstances.

SB 329 by Senator Mitchell

This bill clarifies source of income discrimination to include verifiable income paid directly to tenant, or paid to a housing owner or landlord on behalf of a tenant. Verifiable income would include, but not limited to, federal housing assistance vouchers issued under Section 8.

SB 644 by Senator Glazer

Security deposits requested of service members residing in a property will now be limited to an amount equal to one months’ rent, in the case of unfurnished residential property. In the case of furnished residential property the deposit is limited to an amount equal to 2 months’ rent. This does not apply to a situation in which the property is rented to a group of individuals, one or more of whom is not the service member’s spouse, parent, domestic partner, or dependent.

AB 1110 by Assembly Member Friedman

This bill would require 90 days’ notice if a landlord of a residential dwelling with a month-to-month tenancy increases the rent by more than 10% of the amount of the rent charged to a tenant annually.