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SB-466 Costa-Hawkins Rental Housing Act: rental rates.(2023-2024)



Current Version: 05/15/23 - Amended Senate

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SB466:v97#DOCUMENT

Amended  IN  Senate  May 15, 2023
Amended  IN  Senate  April 12, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 466

Introduced by Senator Wahab

February 13, 2023

An act to amend Section 1954.52 of the Civil Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


SB 466, as amended, Wahab. Costa-Hawkins Rental Housing Act: rental rates.
Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. The act generally authorizes an owner of residential real property to establish the initial rental rate for a dwelling or unit, except in specified circumstances, including, (1) when the residential real property has a certificate of occupancy issued after February 1, 1995, (2) when the residential real property has already been exempt from the residential rent control ordinance of a public entity on or before February 1, 1995, pursuant to a local exemption for newly constructed units, and (3) when the residential real property is alienable and separate from title to any other dwelling units, except as specified.
This bill would instead authorize an owner of residential real property to establish the initial rental rate for a dwelling or unit when the residential real property has been issued a certificate of occupancy issued within the 15 28 years preceding the date on which the owner seeks to establish a rental rate under these provisions. provisions, except as specified for dwellings or units exempt from the residential rent control ordinance of a public entity on or before February 1, 1995, pursuant to a local exemption for newly constructed units. The bill would also remove the above-described authorizations for an owner of residential real property to establish the initial rental rate if the residential real property has already been exempt from the residential rent control pursuant to an ordinance of a public entity on or before February 1, 1995.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 1954.52 of the Civil Code is amended to read:

1954.52.
 (a) Notwithstanding any other provision of law, an owner of residential real property may establish the initial and all subsequent rental rates for a dwelling or a unit about which either of the following is true:

(1)It has been issued a certificate of occupancy issued within the 15 years preceding the date on which the owner seeks to establish a rental rate in accordance with this section.

(1) It is newly constructed housing.
(2) (A) It is alienable separate from the title of any other dwelling unit or is a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (e) of Section 11004.5 of the Business and Professions Code.
(B) This paragraph does not apply to either of the following:
(i) A dwelling or unit where the preceding tenancy has been terminated by the owner by notice pursuant to Section 1946.1 or has been terminated upon a change in the terms of the tenancy noticed pursuant to Section 827.
(ii) A condominium dwelling or unit that has not been sold separately by the subdivider to a bona fide purchaser for value. The initial rent amount of the unit for purposes of this chapter shall be the lawful rent in effect on May 7, 2001, unless the rent amount is governed by a different provision of this chapter. However, if a condominium dwelling or unit meets the criteria of paragraph (1) or (2) of subdivision (a), or if all the dwellings or units except one have been sold separately by the subdivider to bona fide purchasers for value, and the subdivider has occupied that remaining unsold condominium dwelling or unit as the subdivider’s principal residence for at least one year after the subdivision occurred, then subparagraph (A) of paragraph (2) shall apply to that unsold condominium dwelling or unit.
(b) Subdivision (a) does not apply where the owner has otherwise agreed by contract with a public entity in consideration for a direct financial contribution or any other forms of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code.
(c) Nothing in this section shall be construed to affect the authority of a public entity that may otherwise exist to regulate or monitor the basis for eviction.
(d) This section does not apply to any dwelling or unit that contains serious health, safety, fire, or building code violations, excluding those caused by disasters for which a citation has been issued by the appropriate governmental agency and which has remained unabated for six months or longer preceding the vacancy.
(e) (1) For purposes of this section, “newly constructed housing” means a dwelling or unit for which a certificate of occupancy was issued within the 28 years preceding the date on which the owner seeks to establish a rental rate in accordance with this section.
(2) Notwithstanding paragraph (1), if the dwelling or unit was exempt from the residential rent control ordinance of a public entity on or before February 1, 1995, pursuant to a local exemption for newly constructed units, then the dwelling or unit shall be “newly constructed housing” for purposes of this section only if a certificate of occupancy was issued for the dwelling or unit on or after January 1 of the following calculated year:
(A) Begin with the year in which the dwelling or unit was first exempt pursuant to the local exemption for newly constructed units.
(B) Add two years to the start year in subparagraph (A) for each calendar year that has elapsed beginning on January 1, 2023, until the calculated year is equal to 1995 or 1996, as applicable, and then add one year to the calculated year for the remaining calendar years that have elapsed until the present year.