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AB-3077 Residential real property: tenancy: termination: withdrawal of accommodations.(2019-2020)

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Date Published: 02/21/2020 09:00 PM
AB3077:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3077


Introduced by Assembly Member Santiago

February 21, 2020


An act to amend, repeal, and add Section 1946.1 of the Civil Code, and to add and repeal Section 7060.8 of the Government Code, relating to residential real property.


LEGISLATIVE COUNSEL'S DIGEST


AB 3077, as introduced, Santiago. Residential real property: tenancy: termination: withdrawal of accommodations.
Existing law establishes that a hiring of residential real property for a term not specified by the parties is deemed to be renewed at the end of the term implied by law unless one of the parties gives written notice to the other of their intention to terminate the tenancy.
This bill would, until January 1, 2031, prohibit an owner of a residential dwelling from giving notice of their intention to terminate a tenancy in order to sell the property to new owners who will hold title to the property as tenants in common.
Existing law, commonly known as the Ellis Act, generally prohibits public entities from adopting any statute, ordinance, or regulation, or taking any administrative action, as specified, to compel the owner of residential real property to offer or to continue to offer accommodations, as defined, in the property for rent or lease. Existing law authorizes a public entity acting pursuant to the Ellis Act to require an owner who offers accommodations for rent or lease within a period not exceeding 10 years from the date on which they were withdrawn, as specified, to first offer the unit to the tenant or lessee displaced from that unit by the withdrawal, subject to certain requirements. Existing law qualifies the Ellis Act prohibition on compelling owners to offer or to continue to offer accommodations by, among other things, permitting a public entity to require an owner to provide notice that the owner has initiated actions to terminate tenancies. If the owner fails to comply with this requirement, the owner is liable to a displaced tenant or lessee for punitive damages not to exceed 6 months’ rent.
This bill would, until January 1, 2021, prohibit an owner of residential real property upon which the constraints described above have been placed from withdrawing the accommodations from rent or lease in order to sell the property to new owners who will hold title to the property as tenants in common.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1946.1 of the Civil Code is amended to read:

1946.1.
 (a) Notwithstanding Section 1946, a hiring of residential real property for a term not specified by the parties, parties is deemed to be renewed as stated in Section 1945, 1945 at the end of the term implied by law unless one of the parties gives written notice to the other of his or her their intention to terminate the tenancy, as provided in this section.
(b) An owner of a residential dwelling giving notice pursuant to this section shall give notice at least 60 days prior to the proposed date of termination. A tenant giving notice pursuant to this section shall give notice for a period at least as long as the term of the periodic tenancy prior to the proposed date of termination.
(c) Notwithstanding subdivision (b), an owner of a residential dwelling giving notice pursuant to this section shall give notice at least 30 days prior to the proposed date of termination if any tenant or resident has resided in the dwelling for less than one year.
(d) Notwithstanding subdivision (b), an owner of a residential dwelling giving notice pursuant to this section shall give notice at least 30 days prior to the proposed date of termination if all of the following apply:
(1) The dwelling or unit is alienable separate from the title to any other dwelling unit.
(2) The owner has contracted to sell the dwelling or unit to a bona fide purchaser for value, and has established an escrow with a title insurer or an underwritten title company, as defined in Sections 12340.4 and 12340.5 of the Insurance Code, respectively, a licensed escrow agent, as defined in Sections 17004 and 17200 of the Financial Code, or a licensed real estate broker, as defined in Section 10131 of the Business and Professions Code.
(3) The purchaser is a natural person or persons.
(4) The notice is given no more than 120 days after the escrow has been established.
(5) Notice was not previously given to the tenant pursuant to this section.
(6) The purchaser in good faith intends to reside in the property for at least one full year after the termination of the tenancy.
(e) After an owner has given notice of his or her their intention to terminate the tenancy pursuant to this section, a tenant may also give notice of his or her their intention to terminate the tenancy pursuant to this section, provided that the tenant’s notice is for a period at least as long as the term of the periodic tenancy and the proposed date of termination occurs before the owner’s proposed date of termination.
(f) The notices required by this section shall be given in the manner prescribed in Section 1162 of the Code of Civil Procedure or by sending a copy by certified or registered mail.
(g) This section may not be construed to affect the authority of a public entity that otherwise exists to regulate or monitor the basis for eviction.
(h) Any notice given by an owner pursuant to this section shall contain, in substantially the same form, the following:

“State law permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to certain conditions. You may or may not be able to reclaim property without incurring additional costs, depending on the cost of storing the property and the length of time before it is reclaimed. In general, these costs will be lower the sooner you contact your former landlord after being notified that property belonging to you was left behind after you moved out.”

(i) Notwithstanding any other law, an owner of a residential dwelling is prohibited from giving notice of their intent to terminate a tenancy pursuant to this section in order to sell the property to new owners who will hold title to the property as tenants in common.
(j) This section shall become inoperative on January 1, 2031, and as of that date is repealed.

SEC. 2.

 Section 1946.2 is added to the Civil Code, to read:

1946.2.
 (a) Notwithstanding Section 1946, a hiring of residential real property for a term not specified by the parties is deemed to be renewed as stated in Section 1945 at the end of the term implied by law unless one of the parties gives written notice to the other of their intention to terminate the tenancy, as provided in this section.
(b) An owner of a residential dwelling giving notice pursuant to this section shall give notice at least 60 days prior to the proposed date of termination. A tenant giving notice pursuant to this section shall give notice for a period at least as long as the term of the periodic tenancy prior to the proposed date of termination.
(c) Notwithstanding subdivision (b), an owner of a residential dwelling giving notice pursuant to this section shall give notice at least 30 days prior to the proposed date of termination if any tenant or resident has resided in the dwelling for less than one year.
(d) Notwithstanding subdivision (b), an owner of a residential dwelling giving notice pursuant to this section shall give notice at least 30 days prior to the proposed date of termination if all of the following apply:
(1) The dwelling or unit is alienable separate from the title to any other dwelling unit.
(2) The owner has contracted to sell the dwelling or unit to a bona fide purchaser for value, and has established an escrow with a title insurer or an underwritten title company, as defined in Sections 12340.4 and 12340.5 of the Insurance Code, respectively, a licensed escrow agent, as defined in Sections 17004 and 17200 of the Financial Code, or a licensed real estate broker, as defined in Section 10131 of the Business and Professions Code.
(3) The purchaser is a natural person or persons.
(4) The notice is given no more than 120 days after the escrow has been established.
(5) Notice was not previously given to the tenant pursuant to this section.
(6) The purchaser in good faith intends to reside in the property for at least one full year after the termination of the tenancy.
(e) After an owner has given notice of their intention to terminate the tenancy pursuant to this section, a tenant may also give notice of their intention to terminate the tenancy pursuant to this section, provided that the tenant’s notice is for a period at least as long as the term of the periodic tenancy and the proposed date of termination occurs before the owner’s proposed date of termination.
(f) The notices required by this section shall be given in the manner prescribed in Section 1162 of the Code of Civil Procedure or by sending a copy by certified or registered mail.
(g) This section may not be construed to affect the authority of a public entity that otherwise exists to regulate or monitor the basis for eviction.
(h) Any notice given by an owner pursuant to this section shall contain, in substantially the same form, the following:

“State law permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to certain conditions. You may or may not be able to reclaim property without incurring additional costs, depending on the cost of storing the property and the length of time before it is reclaimed. In general, these costs will be lower the sooner you contact your former landlord after being notified that property belonging to you was left behind after you moved out.”

(i) This section shall become operative on January 1, 2031.

SEC. 3.

 Section 7060.8 is added to the Government Code, immediately following 7060.7, to read:

7060.8.
 (a) Notwithstanding any other law, an owner of residential real property upon which constraints have been placed pursuant to Section 7060.2 is prohibited from withdrawing the accommodations from rent or lease in order to sell the property to new owners who will hold title to the property as tenants in common.
(b) This section shall become inoperative on January 1, 2031, and as of that date is repealed.