New Rental Housing Legislation Proposed in California

New legislation has been proposed that (if passed) will greatly impact the multifamily housing industry in California. Keep up to date with new legislation that might affect you in the next few years, and determine which bills gain your support.

Involuntary Enrollment into the Section 8 Program

This proposed bill requires all residential rental property owners to participate in the federal and local government’s Section 8 housing program by prohibiting property owners from denying an applicant on the basis that they will pay with a voucher. Additionally, this bill will make all owners accept government-mandated lease terms and regulations. Learn More About SB 1053.

New Housing No Longer Exempt from Price Controls

This bill allows local governments to adopt inclusionary housing laws; price control mandates on new rental housing developments. With inclusionary housing laws, private developers will be required to set aside a percentage of new rental housing units for low-income housing for 30-55 years. Owners will not be allowed to set initial or subsequent rates of their units and developers will not be provided any cost-offsets from local governments. This will overturn the Costa Hawkins Act, which currently exempts new construction from price controls. Learn More About AB 2502.

Good Faith Rent Deposits

Requires represented residents asserting a warranty of habitability defense in an unlawful detainer (or eviction) action to continue to deposit rent that becomes due during the pendency of an eviction proceeding. This does not include the rent that is in dispute. With this bill, the rental amount will be due on the first day of the new month following the filling of an eviction action. Learn More About AB 2312.

Evictions Hidden from Public Records unless Owner Wins

If this bill passes, eviction proceedings will remain masked or “hidden” from public view indefinitely (unless the rental property owner prevails) on a default judgement, summary judgement, trial, or stipulation by all of the parties. This bill also imposes a new 60-day “masking” period (starting from the date a default or default judgement is set aside) after the expiration of the first 60 days. Learn More About AB 2819.

Series of Rights Changed in an Eviction Case

This would enact a series of changes that will affect rental housing:

1. The bill will prohibit a warranty of habitability defense in an eviction action (unless the owner had knowledge about the habitability condition before the filling of the eviction action).
2. It will require tenants to assert on an answer form if they made a habitability complaint to the property owner or the city.
3. The eviction court closest to the property will be required to hear the case
4. Property owners and managers will be able to enter a dwelling unit with proper notice (in compliance with Civil Code 1941.1). Learn More About AB 2003.

Becky Bower | Company Website | Becky Bower is a writer for ResidentScreeningBlog.com and the Communications Executive at Contemporary Information Corporation (C.I.C), a nationwide tenant & employment screening company.  She has also spent several years in compliance and auditing.  Becky holds a degree in English with a focus in creative writing from CSU Channel Islands and is a published writer.