In the last year, many laws have passed that have had an impact to the City of Glendale rental market and it’s residents. Below you will find some of the latest State laws that impact Glendale rental residents and landlords.
STATE LAW AB 1482 TENANT PROTECTION ACT OF 2019
AB 1482 establishes a number of new rules for residential rental properties in Glendale, including a rent cap and eviction protections.
Statewide Applicability of AB 1482 :
• Rent increases are capped at 5% plus CPI for the region your property is located. For the Los Angeles Region including Glendale, CPI for 2020 is .7%. Simply put, rents increases in Glendale can’t exceed 5.7%*.
• Regardless of how high CPI is, rents cannot exceed 10% at any point as long as AB 1482 is in effect.
• Prohibits owners of residential real property from terminating a tenancy without just cause*.
The States Rent Cap went into effect on January 1, 2020 and is planned to be in effect for ten years, until 2030. The law places a CAP on rent increases in California. The maximum allowable rent increase is 5% plus the CPI for the metropolitan area in which the property is located. Rent CAPs may vary depending on where a property is located. Regardless of how high CPI might be in a given year, at no time can rents be increased beyond 10% while the law is in effect.
- Units where the Certificate of Occupancy issued is less than 15 years ago,
- Single-family homes and condominiums that are not owned by REITS, Corporations or LLC’s with corporations as a member,
- Duplexes where the owner lives in one of the units as their primary residency.
The 15 year Certificate of Occupancy exemption rolls forward every year. For example residential units that have Certificate of Occupancy issued after 2006 are currently exempt but next year in 2021 they will not be exempt because they will be within the 15 year limit.
For properties that are exempt, landlords must provide a notice of Exemption Status to tenants.
Applicability of AB 1482 in Glendale
In the Los Angeles region including Glendale AB 1482 establishes a rent CAP of 5% CPI, which amounts to 8.3% for the year of 2020. This is a hard CAP and at no time can rents increase past this CAP in Glendale for the year.
Glendale’s local program does not have a hard cap on rents, but since the effective date of AB 1482, landlords in Glendale can only increase rents up to 8.3% and no more. If landlords increase the rent past 7% up to the 8.3% limit they must still offer tenants relocation assistance unless they are using a banked increase.
Although under Glendale’s Rental Rights Program, units constructed after February 1, 1995 and rental units located on parcel containing 2 or fewer dwelling units are exempt under the States AB 1482 law, they must abide by the established State CAP.
Current CPI for 2020 for the Los Angeles metropolitan area is 3.3%, as of the publication of this brochure.
Please visit Glendaleca.gov/rent for updates on CPI.
Glendale Banking and AB 1482
Landlord can utilize Glendale’s Rental Rights “Banking” option up to the cap established by the new AB 1482. For example, a landlord who has banked a rent increase from the previous year can increase the rent beyond 7% without triggering Relocation assistance ,but at no time can the rent be increased beyond the AB 1482/State established cap. The State cap for 2020 is 5.7%. Please read the Rent Cap section for more details.
Exemptions to AB 1482 include Certificate of occupancy issued less than 15 years ago, Single-family homes and condominiums that are not owned by REITS, Corporations or LLC’s with corporations as a member, Duplexes where the owner lives in one of the units as their primary residency.
For more information, please visit the link below:
LINK TO LAW: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?-bill_id=201920200AB1482
AB 1110 RENT INCREASES: NOTICING
AB 1110, sponsored by the City of Glendale and passed into State law on January 1, 2020, changes existing noticing requirements for rent increases by implementing new, longer noticing periods to tenants. AB 1110 retains the requirements of a 30-day notice for proposed rent increases of 10% or less, and establishes that a new 90-day notice is required for those above 10%. This law is applicable to units not covered under AB 1482.
• Rent increase 10% or below are required to provide a 30-day notice.
• Any proposed rent increase that exceeds 10% on an annual basis, will require a 90 day notice.
• Multiple increases within a 12 month period that are cumulatively over 10% will require a 90-day notice.
Due to AB 1482, rents can’t exceed 10% in California for non-exempt properties until 2030.
LINK TO LAW: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?-bill_id=201920200AB1110
SB 329 PROHIBITS HOUSING DISCRIMINATION
SB 329 amends the Fair Employment and Housing Act (FEHA) to expand the definition “source of income” to prevent discrimination, and give those who participate in a housing voucher program (Section 8) an opportunity to receive a thorough and fair vetting when they seek housing.
• Landlords can no longer reject prospective tenants solely based on their source of income. The law also prohibits “No Section 8” advertisements.
LINK TO LAW: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?-bill_id=201920200SB329