Are Single Family Homes Exempt From AB 1482

Have you ever wondered about the nuances of California's rent control laws, especially in the context of single-family homes? The introduction of Assembly Bill 1482, or AB 1482, stirred quite a discussion among homeowners, renters, and investors alike. But here's the million-dollar question: Are single-family homes exempt from the provisions of AB 1482? It's a topic that's not just legal jargon but affects real lives and real homes. So, let's unpack this together and see what AB 1482 really means for single-family homeowners and tenants.

Let's start by exploring the wider context of AB 1482. This law, which took effect on January 1, 2020, aims to offer greater stability to tenants in a state known for its dynamic rental market. It limits annual rent increases to 5% plus local inflation, not exceeding 10%, and requires landlords to provide "just cause" for tenant evictions. Crucially, these rules apply retroactively from March 15, 2019, meaning the rent amount paid on this date is the base for any future increases. This law is a game-changer for many, but it's not without its complexities and exceptions.

When it comes to single-family homes, the exemption under AB 1482 is not as straightforward as it may appear. These homes are exempt only if they're not owned by a corporation, real estate investment trust, or an LLC with a corporate member. Additionally, tenants must be notified of this exemption in their rental agreements. Failing to meet these conditions brings single-family homes under AB 1482's purview. This requirement for transparency ensures tenants are well-informed about their rights and the regulations governing their tenancy.

The interplay between AB 1482 and local rent control laws adds another layer of complexity. AB 1482 does not supersede local rent control ordinances. In cities like Los Angeles and San Francisco, where local rent control laws apply to buildings constructed before a certain date, AB 1482 fills the gap, covering newer buildings that local laws don't. For example, in Los Angeles, buildings constructed after October 1978 fall under AB 1482, while older buildings adhere to the city's rent control laws.

Another vital aspect of AB 1482 is its just cause requirement for evictions. Landlords can no longer evict tenants without a valid reason. This protection kicks in after a tenant has lived in the unit for at least one year, or if one of the tenants has occupied the unit for 24 months or more. Just cause reasons are categorized as either "at-fault" (like failure to pay rent or criminal activity) or "no-fault" (such as the owner intending to occupy the property). This provision significantly changes the landscape of tenant eviction, offering more stability and predictability.

It's also important to note that AB 1482 doesn't apply to buildings constructed within the last 15 years. This rolling date means that each year, buildings constructed 15 years prior come under AB 1482. For instance, a building constructed in 2006 would be covered starting in 2021. This exemption aims to encourage new construction and development, recognizing that a healthy rental market needs a constant influx of new housing stock.

AB 1482 also includes a vacancy decontrol provision, meaning landlords can reset rents to market rates when a unit becomes vacant. However, once a new tenant moves in, the rent increase limitations of AB 1482 kick back in. This provision offers a balance, allowing landlords to align with market rates while protecting existing tenants from steep rent hikes.

Just cause eviction rules under AB 1482 complement local ordinances that may already impose similar requirements. For cities with their own just cause eviction laws, those local laws take precedence if they are more protective than the state law. This approach ensures that tenants in cities with strong tenant protections continue to enjoy those rights without being undercut by the state law.