California's Ab 1481: Understanding The New Law's Effective Date

Assembly Bill No. 1481, or AB 1481, was introduced in the California Assembly on February 22, 2019, during the 2019-2020 Regular Session. It was amended in the Assembly on March 28, April 23, and May 20, 2019. AB 1481, also known as the Tenancy Termination: Just Cause bill, aimed to prohibit lessors of residential property from terminating leases without just cause. This bill also outlined requirements for notices of violation and opportunities to rectify violations before lease termination. Additionally, it addressed relocation assistance for lessees and the provision of notice regarding lessee rights. AB 1481 was set to repeal on January 1, 2030.

Tenants must continuously occupy a property for 12 months for 'just cause' to apply

California's AB 1481, or the Tenant Protection Act of 2019, imposes specific rules regarding rent increases and eviction policies for residential rental properties in California. The Act, which was signed into law by Governor Gavin Newsom on October 8, 2019, went into effect on January 1, 2020, and will expire on January 1, 2030.

One of the key provisions of the Act is the requirement for landlords to provide a valid reason for evicting tenants who have continuously and lawfully occupied a property for 12 months or more, or if at least one tenant has continuously and lawfully occupied the property for 24 months or more. This is known as the "just cause" requirement.

The "just cause" requirement means that landlords cannot terminate a tenancy without a valid reason, which must be stated in the written notice to terminate. Valid reasons for eviction fall into two categories: "at-fault" and "no-fault".

"At-fault" just causes for eviction include:

• Failure to pay rent
• Substantial breach of a material term of the rental agreement, such as violating a provision of the lease
• Refusal by the tenant to sign a new lease that is identical to the previous lease after the previous lease expired
• Illegal conduct, including using the residential property for criminal activity (unrelated criminal charges or convictions are not considered "at-fault" just cause)

On the other hand, "no-fault" just causes for eviction include:

• Owner's intent to occupy the residential property (with the tenant's written agreement or if allowed by the lease agreement)
• Withdrawal of the property from the rental market
• Unsafe habitation, as determined by a government agency that has issued an order to vacate or comply
• Intent to demolish or substantially remodel the property

It is important to note that the "just cause" requirements for eviction do not apply to certain types of residential properties, such as transient and tourist hotel occupancy, housing accommodations in a nonprofit hospital or religious facility, and certain dormitories. Additionally, single owner-occupied residences, including those with up to two rented units, are also exempt from the "just cause" requirements.

Landlords must provide a valid reason for eviction

The California Tenant Protection Act of 2019, passed as AB 1482, imposes specific rules on rent increases and eviction policies for many residential rental properties in California. The Act requires landlords to have a valid reason, or "just cause", to evict tenants who have occupied a residence for more than a year.

The "just cause" for eviction can be either "at-fault" or "no-fault". "At-fault" means the tenant has done something wrong, such as failure to pay rent, violating the lease or rental agreement, or committing an illegal act. "No-fault" means the tenant has not done anything wrong, but the landlord can still require them to move out for a reason that is independent of the tenant's behaviour, such as wanting to move into the rental property themselves.

If the landlord evicts a tenant for a "no-fault" reason, they must first give the tenant one month's rent or waive one month's rent to help them move out. For "at-fault" evictions, the landlord must give the tenant a three-day notice to quit or fix the violation. If the tenant does not move out or fix the violation, the landlord can then file an eviction lawsuit.

The Act applies to tenants with month-to-month rental agreements as well as those with longer-term leases. However, some types of tenancies are exempt from the Act, including single-family homes and condominiums, as well as properties constructed within the last 15 years.

Tenants must be given a notice of violation and an opportunity to resolve the violation

Assembly Bill No. 1481, also known as the Tenancy Termination: Just Cause bill, was introduced in the California Assembly on February 22, 2019, during the 2019-2020 Regular Session. The bill aimed to amend Section 1946.2 of the Civil Code relating to housing.

One of the key provisions of AB 1481 is the requirement for tenants to be given a notice of violation and an opportunity to resolve the violation before the termination of their lease. This provision applies to curable lease violations and is designed to protect tenants from sudden eviction. Here is a detailed explanation of this aspect of the bill:

Notice of Violation:

The bill states that before a lessor issues a notice to terminate the tenancy, they must first provide the tenant with a notice of any curable lease violation. This notice should clearly state the violation and specify the steps the tenant needs to take to resolve it. It is important to note that this provision only applies to violations that can be rectified by the tenant.

Opportunity to Resolve the Violation:

After receiving the notice of violation, tenants are given a reasonable amount of time to correct the issue. This opportunity allows tenants to take the necessary actions to fix the violation and avoid eviction. The specific time frame to resolve the violation will be specified in the notice. If the tenant fails to cure the violation within the given time frame, the lessor can then proceed with the next steps, including issuing a notice to terminate the tenancy.

Tenant's Rights:

AB 1481 also requires lessors to provide tenants with information about their rights at the beginning of the tenancy. This includes adding an addendum to the lease agreement, which the tenant must sign. This addendum should outline the tenant's rights, including the right to receive a notice of violation and the opportunity to resolve it.

Just Cause Termination:

The bill emphasizes that lease terminations must be for just cause, which should be stated in the written notice. Just cause includes at-fault reasons, such as failure to pay rent or substantial breach of the rental agreement, and no-fault reasons, such as the owner's intent to occupy the property or withdrawal of the property from the rental market.

Relocation Assistance:

In cases of no-fault just cause terminations, the bill requires lessors to assist tenants with relocation, regardless of their income. This assistance can be provided in the form of a direct payment to the tenant, calculated based on the number of bedrooms in the property and the duration of their tenancy.

Exclusions:

It is important to note that AB 1481 does not apply to all types of residential properties. Excluded properties include transient and tourist hotel occupancy, housing accommodations in specific facilities like hospitals and religious institutions, dormitories owned by educational institutions, and certain types of shared housing accommodations.

Effective Date and Repeal:

AB 1481 was approved and filed on October 8, 2019, and became effective as law. However, the bill includes a sunset clause, which means it will automatically be repealed on January 1, 2030, unless further legislative action is taken to extend it.

Landlords must assist tenants to relocate, regardless of income

California's AB 1481, or the Tenant Protection Act of 2019, was introduced in the Assembly on February 22, 2019, and died on the inactive file. The bill, if passed, would have prohibited landlords from terminating leases without "just cause."

In the case of no-fault just cause terminations, landlords would be required to assist tenants to relocate, regardless of the tenant's income. This assistance would come in the form of a direct payment to the tenant, the amount of which would be determined based on the number of bedrooms in the property. If a tenant has lived in the rental property for six months or more but less than two years, the landlord must provide an amount equal to two months' rent. If the tenant has lived in the property for two years or more, the landlord must provide an amount equal to three months' rent.

It is important to note that this bill did not pass and, therefore, did not become law. However, the California Tenant Protection Act of 2019 was passed as AB 1482, which imposes specific rules concerning rent increases and eviction policies for many residential rental properties in California.

The bill repeals on January 1, 2030

The California Tenant Protection Act of 2019, passed as AB 1482, imposes specific rules concerning rent increases and eviction policies for many residential rental properties in California. The bill, which amends AB 1481, is set to repeal on January 1, 2030.

The bill repealing on this date is significant as it sends a strong signal about the temporary nature of the legislation. It indicates that the provisions within the bill are not intended to be permanent fixtures of California law and that the legislature recognises the need for flexibility in this area. This fixed end date allows for a review of the effectiveness of the bill and enables future legislatures to make informed decisions about whether to extend, amend, or repeal the provisions.

The bill's expiration date also provides certainty and predictability for landlords and tenants. It sets a clear timeframe for when the legal landscape will change, allowing both parties to plan accordingly. This certainty can be especially important for landlords, who may need to make adjustments to their business practices or financial projections in anticipation of the bill's repeal.

Additionally, the repealing of the bill on January 1, 2030, highlights the importance of evaluating the impact of the bill during its timeframe. It encourages stakeholders, lawmakers, and the public to actively monitor and assess the effectiveness of the bill's provisions in protecting tenants' rights and ensuring fair practices in the rental market. This evaluation can help identify any areas of improvement and inform future policy decisions.

The repealing date of the bill also serves as a reminder of the dynamic nature of legislation and the ongoing process of law reform. It underscores the fact that laws are not static and can be adapted to meet the changing needs and priorities of society. This adaptability is crucial in addressing complex issues such as housing and tenant rights.

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