Rental Cap Law: Riverside County's Exception?

California has implemented various regulations to keep the rental industry affordable, including rent control laws that cap rental rates and annual rent increases. In 2019, California passed AB 1482, which limits rent increases in a 12-month period to 5% plus the change in inflation from April of the prior year to April of the current year. This law applies to San Diego and Riverside Counties, and the maximum annual rent increase is 10%. Additionally, Riverside County has specific laws for short-term rentals, with occupancy limits and registration requirements. These laws aim to ensure rental activities align with neighborhood values and provide guidelines for property owners.

Short-term rental laws

Short-term rentals (STRs) in Riverside County are subject to specific laws and regulations. These laws aim to ensure that rental activities are in harmony with neighbourhood values while providing guidelines for property owners. Here is an overview of the essential details regarding short-term rental laws in Riverside County:

Short-Term Rental Ordinance:

The Short-Term Rental Ordinance in Riverside establishes a framework that outlines the permissible conduct and requirements for operating short-term rentals. Properties are subject to various regulations, including occupancy limits, which are tied to lot sizes. For instance, properties on lots of half an acre or less have a maximum occupancy of 10 people, while those on half-acre to two-acre parcels can accommodate up to 16 guests.

Transparency with Neighbours and the Community:

Maintaining transparency with the surrounding community is crucial for short-term rental operators in Riverside. This includes clearly communicating the nature of the property's use to neighbours and ensuring that guest activities do not disrupt the peaceful environment of the community.

Registration and Certification Process:

Short-term rental operators in Riverside must undergo a registration and certification process. This involves obtaining a short-term rental certificate from the Riverside County Planning Department and ensuring compliance with all local regulations. The initial application fee for the STR certificate is $740, with an annual renewal fee of $540.

Permits, Taxes, and Compliance:

Property owners seeking to operate as hosts in Riverside must understand the requirements for permits, taxes, and adherence to laws. In addition to obtaining a rental certificate, hosts are responsible for collecting and remitting Transient Occupancy Taxes (TOT), which amount to 10% of the gross rent. Hosts must register with the County Treasurer-Tax Collector to ensure timely payment of TOT.

Eligibility Criteria for Hosts:

Riverside County has established specific eligibility criteria for hosts, including the need to apply for a permit through the Riverside County Planning Department. Hosts must demonstrate compliance with property standards and safety codes and may be required to provide proof of liability insurance to ensure guest protection.

Operational Standards for Rentals:

Short-term rental properties in Riverside must adhere to operational standards, such as maintaining occupancy limits based on property size and ensuring that rentals do not disturb the tranquility of neighbouring homes. Operators are also required to provide a local contact person who can promptly respond to any issues or complaints within 60 minutes.

Legal Implications and Civil Penalties:

Failure to comply with short-term rental regulations in Riverside can result in legal implications and civil penalties. Non-compliance can lead to citations, fines, injunctions, or even the removal of the rental listing. It is crucial for property owners and managers to be vigilant in adhering to the established regulations to avoid these consequences.

Community Relations:

Promoting positive relationships between hosts, guests, neighbours, and the wider community is vital for the success and sustainability of short-term rentals in Riverside. Hosts are advised to provide a Code of Conduct for guests, covering expected behaviours such as respecting the property and neighbouring homes, observing quiet hours, and properly managing waste and recycling.

Rent control laws

California has implemented various regulations to ensure the rental industry remains affordable, including rent control laws. These laws refer to legislation that caps rental rates and annual rent increases in cities and states. While rent control is more common in urban areas, several US cities, such as Washington, D.C., and New York City, have also adopted rent control laws.

In 2019, California passed Assembly Bill 1482 (AB 1482), which limits how much a property owner or manager can increase their rent in a 12-month period. Under this bill, rent increases in any 12-month period are limited to 5% plus the change in inflation from April 1 of the prior year to April of the current year, as measured by the Consumer Price Index (CPI) for the area in which the property is located. This bill also removes a landlord's ability to evict renters without a valid reason.

The rent control laws in Riverside County, California, are tied to the CPI for San Diego and Riverside Counties. The maximum rent increase is determined using the California CPI, as reported by the Department of Industrial Relations.

Additionally, Riverside County has specific laws for short-term rental operations, which are defined as rentals for fewer than 30 consecutive calendar days. These laws include occupancy limits, transparency requirements with neighbours and the community, and a registration and certification process. Short-term rental operators are responsible for collecting and remitting Transient Occupancy Taxes (TOT), which is a 10% tax collected from guests.

It is important to note that rent control laws may vary by city and state, and it is recommended to refer to the latest local regulations for the most accurate and up-to-date information.

Housing vouchers

As of August 1, 2024, rent increases in Riverside County are limited to 5% plus the change in inflation from April 1 of the prior year to April of the current year. This is based on measurements by the Consumer Price Index (CPI-U) for the area in which the property is located.

The Housing Authority of the County of Riverside offers various housing voucher programs to assist low-income families in securing affordable, safe, and sanitary rental housing. Here is an overview of the different housing voucher programs available:

Housing Choice Voucher Program (Section 8)

The Housing Choice Voucher Program is funded by Congress and the President and administered by the Housing Authority of the County of Riverside. The program aims to provide decent, safe, and sanitary affordable rental housing for very low-income families. The Housing Authority assists these families by paying a portion of the rent directly to the landlord, while the family pays approximately 30% of their monthly income as their share.

To be eligible for this program, families must have an income that is 50% or less of the median income for the area. This includes single-person households that are elderly or disabled, as well as families of two or more. Eligible veterans, widows of veterans, and those 70 years of age and older are given priority.

The application process involves finding a landlord who is willing to rent to a voucher holder and completing a Request for Tenancy Approval (RTA). The rental unit must meet HUD Housing Quality Standards, and the rent amount must be within the allowable limits set by HUD. Once the unit is approved, the landlord and tenant sign the lease, and the contract is signed by the Housing Authority representative and the landlord.

Project-Based Voucher Program

The Project-Based Voucher Program was developed to increase the number of affordable housing units available to low-income families. This program offers housing assistance to eligible families who wish to live in privately-owned multi-family developments that have been upgraded, rehabilitated, or newly constructed. It also applies when the owner agrees to set aside a portion of the units in an existing development.

Families must register on the waiting list for available sites and pass tenant screening to be eligible for this program. Once they are determined eligible, they will work with the property manager to move into the Project-Based Voucher Unit.

Emergency Housing Voucher (EHV) Program

The Emergency Housing Voucher (EHV) program is a new affordable housing initiative serving low-income families across the country, including Riverside County. The program helps families locate rental housing and provides financial assistance to make their rent affordable.

To be eligible for the EHV program, families must be low-income and meet at least one of the following criteria:

• At risk of becoming homeless
• Fleeing or attempting to flee
• Recently homeless, and rental assistance will prevent a return to homelessness or high risk of housing instability

Unlike the other voucher programs, the EHV program does not use a waiting list. Instead, individuals and families are referred to the Housing Authority through the Riverside County Coordinated Entry System (CES) or a victim service provider (VSP) with whom the Housing Authority has a referral partnership.

Rent increases

California has implemented various regulations to ensure that renting remains affordable in the state. In 2019, California passed several laws, including AB 1482, to address the state's housing crisis and stabilise the population.

AB 1482, also known as the Tenant Protection Act of 2019, limits rent increases in any 12-month period to 5% plus the change in inflation from April of the prior year to April of the current year, as measured by the Consumer Price Index (CPI) for the area in which the property is located. This law applies to properties in Riverside County, among other counties in California.

For rent increases taking effect before 1 August of any year, the percentage change in rent is calculated based on the change in the CPI from April of the preceding calendar year to April of the year before that. On the other hand, for rent increases occurring on or after 1 August, the percentage change is based on the CPI change from April of the current year to April of the previous year.

It is important to note that landlords in California are allowed to increase rent twice in a 12-month period, but they must adhere to the overall annual cap. Additionally, they are required to provide adequate notice, typically 30 days, before implementing any rent increase. If the increase is more than 10%, a 90-day notice is mandated.

While the state's rent control laws provide important protections, it is worth mentioning that certain properties are exempt from these regulations. These include condos, single-family homes not owned by a corporation or real estate investment trust, and duplexes where the landlord resides in one of the units. Furthermore, local rent control laws in specific cities within California may supersede the state law if they were passed before 1 September 2019 and offer greater tenant protection.

Rental assistance

The County of Riverside offers assistance for low-income renters and grants for other urgent housing financial needs, such as home-related medical expenses and door-side transportation. The Housing Authority of the County of Riverside administers the Housing Choice Voucher Program, which is funded by Congress and the President under the U.S. Department of Housing and Urban Development (HUD). The program provides safe, sanitary, and affordable rental housing for very low-income families. The Housing Authority assists these families by paying a portion of the rent directly to the landlord, with the family paying approximately 30% of their monthly income as their share.

To be eligible for the Housing Choice Voucher Program, families must have an income that is 50% or less of the median income for the area. An eligible family can be a single-person household that is elderly or disabled, as well as families of two or more. The landlord must attract a family that meets these eligibility criteria and has been issued a voucher by the Housing Authority. The landlord is responsible for screening the family for suitability, just as they would with any prospective tenant. If the landlord decides to rent to the family, a Request for Tenancy Approval (RTA) is submitted to the Housing Authority, which then schedules an inspection of the rental unit. If the unit meets HUD Housing Quality Standards and the rent amount is approvable, the lease is signed by the landlord and tenant, and a contract is signed by the Housing Authority representative and the landlord. The landlord is expected to collect a security deposit and the family's share of the rent, as well as maintain the property's overall condition.

In addition to the Housing Choice Voucher Program, there are other sources of rental assistance in Riverside County. The state of California's Housing Authority and related agencies have various funding schemes, vouchers, and emergency funding set aside for their residents. Some of these funds are given to migrant farmworkers and other immigrants, while others are earmarked for local senior citizens, students, and those with medical conditions. Non-profit agencies, such as the Riverside County Community Action Partnership network, are also willing to assist.

The Emergency Rental Assistance (ERA) Program is another option for those seeking rental assistance. This program is for individuals who have already received housing benefits from the city of Riverside. For first-timers, they are directed to United Lift, which provides up to three months of rent payments and up to 12 months of unpaid rent to renters in the county. United Lift is supported by over $57 million from the U.S. Department of the Treasury.

Riverside County's Tenant-Based Rental Assistance Program (TRBA) is intended for those who are homeless or at risk of becoming homeless. This program includes move-in assistance and short- and medium-term rental assistance. The County of Riverside also employs the familiar Section 8 voucher program for long-term housing placement for low-income residents. The eligibility requirements for this program are similar to the ERA program, but with tighter controls on income verification.

Other programs that can provide rental assistance include the Rental Assistance Program (TBRA), the Salvation Army Riverside Corp, and CAP Utility Assistance. Additionally, CalWORKS offers temporary cash assistance, education and counseling resources, job training, and transportation for low or no-income families.

It is important to note that the availability and specifics of rental assistance programs may change over time. Therefore, it is recommended to contact the organizations directly or seek up-to-date information to confirm the current status of these programs.

Frequently asked questions