Sacramento Report
by Debra Carton
Leaders of the California Apartment Association (CAA) worked diligently over the last year to impact rental housing legislation that went to the governor’s desk. CAA members participated in the process through letter writing campaigns and telephone calls to legislators and the governor. These efforts made a tremendous imprint on the final legislation that went to the governor. Proposed legislation that would have significantly hampered the operations of rental property owners throughout the state was significantly watered-down or eliminated altogether. The following summary is a look at the new laws that may directly or indirectly impact your business in 2002.
Owner-tenant Procedures
Disclosure Information: Owners or their agents must provide tenants with the telephone number of the location where the tenant may make rental payments and provide other legal documents. Owners must also tell tenants in what form rental payments will be accepted (cash, check, money order, etc.), and the usual hours the owner or the agent is available to accept the rent. All leases and 3-day Notices to Pay or Quit must contain this information. The CAA’s Forms Task Force is now updating the Association’s statewide forms. Make sure you log on to CAA’s Web site for free updated forms (caanet.org click “Online Services-Login”) and to find out more information about SB 985 (caanet.org / “Legislative Center; Chapter 729; Stats 2001”).
60 Day Notices: For the next three years, owners in Los Angeles, Santa Monica, and West Hollywood who want to terminate a tenancy must provide a 60-day notice to a tenant who has lived at the property for one year or longer (SB 985; Chapter 729; Stats 2001). As initially introduced, this legislation would have required all rental property owners in the state to provide tenants with a 90-day notice prior to terminating a tenancy. CAA members wrote hundreds of letters to legislators that eventually led to the elimination of these provisions from the bill.
Environmental Mold Hazards: The State Department of Health Services will convene a task force comprised of various individuals, including, but not limited to, rental property owners, insurers, builders, and managers, to develop standards for assessment and remediation of molds in indoor environments.
Six months after these guidelines are completed, rental property owners who know or have reasonable cause to believe that mold is present in the unit and the mold exceeds exposure limits established by the Department, must disclose this fact to the tenants. Owners will also be required to provide tenants with a consumer-oriented booklet about mold six months after the Department has developed it (SB 732; Chapter 584; Stats 2001).
The CAA has developed its own Mold Guidelines to help owners address questions posed by tenants and to identify and eliminate any mold that may exist at the property. These free CAA Guidelines are available at CAA’s Web site (caanet.org / “What’s New”). Also, the CAA has developed a question and answer background sheet on this new law (caanet.org / “What’s New”).
Substandard Housing and Drug Activity
Registration: Owners of multi-unit residential property in Los Angeles County will be required to register personal information with the Los Angeles County Board of Supervisors in the event that their property is deemed substandard (AB 1112; Chapter 487; Stats 2001). As initially written, the bill would have required all rental property owners in California to register their housing with a state housing agency. CAA representatives worked with the author to make substantial amendments to the bill prior to moving it to the governor’s desk.
Methamphetamine Labs—Disclosure: Owners of residential dwelling-units who know by receipt of a specified notice or who have actual knowledge that release of a controlled illegal substance is located on or beneath the unit must give written notice to buyers and to prospective tenants prior to the execution of a sales or rental agreement. The focus of this bill is illegal drug labs, particularly methamphetamine labs that have been identified and removed by law enforcement (SB 189; Chapter 466; Stats 2001).
Drug Activity—Evictions: This law extends a current pilot project in Los Angeles for another three years. The law allows the Los Angeles city attorney to file an action for unlawful detainer against any tenant who is unlawfully engaged in a drug offense. The pilot project establishes a partial eviction option. If good cause can be shown, a judge can order some tenants (not all) evicted from the premises (AB 815; Chapter 431; Stats 2001).
Property Rights and Construction
Local Planning: CAA sponsored this new law that is as much about property rights as it is about providing housing for our citizens. Under the provisions of the law, if land is already zoned for multi-family housing, local officials cannot pass an ordinance stopping a property owner from building on that land unless the local leaders make very specific findings about the adverse impacts of the development. This legislation evolved after CAA found that local governments were addressing low vacancy rates by developing “quick fix” regulations, such as rent control ordinances and extended notice requirements. At the same time, CAA members faced local laws that prohibited the construction of new housing (SB 1098; Chapter 939; Stats 2001).
If you have any questions about these new laws, please check the CAA Web site or telephone CAA’s Legislative Unit at 800-967-4222, ext. 16.
The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of the SFAA or the SF Apartment Magazine. Debra L. Carlton is the Vice President of Policy and Research for the California Apartment Association and is CAA’s chief lobbyist. © Copyright 2002.