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Gov. Gavin Newsom on Tuesday signed a bill that will make it illegal to reject a prospective tenant solely based on the applicant’s use of a Section 8 federal housing voucher.  Beginning Jan. 1, 2020, SB 329 by Sen. Holly Mitchell, D-Los Angeles, will ban blanket policies against taking Section 8 applicants and require landlords to treat voucher-holders like any other applicant. The law also will prohibit “No Section 8” advertisements. Sen. Holly Mitchell Throughout the legislative process, Mitchell repeatedly stated that owners will retain the ability to reject voucher-holders after giving them a fair vetting. The senator, however, refused… Read More

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Now that California has adopted the nation’s most sweeping statewide tenant protections, it’s time to fix the root cause of our housing crisis – a chronic lack of supply, said Tom Bannon, chief executive officer of the California Apartment Association.  Gov. Gavin Newsom today signed Assembly Bill 1482, making California the second state in the union to impose a statewide cap on annual rent increases.   The legislation was framed as an anti-gouging measure targeting the most egregious rent hikes, such as increases of 50% to 75% on existing tenants.   The California Apartment Association, which opposes rent control, took a neutral position after… Read More

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This week, the San Jose City Council held a study session to better understand the issue of tenant displacement from a residential and business perspective. The Housing Department scheduled the study session to educate the council on who is getting displaced, why they are being displaced and what can be done to prevent that displacement. Much of the discussion focused on what the city could do to further support tenants from being evicted. While there is no disagreement that displacement is occurring because of rising rents, there was disagreement on what can be done to lessen it.

Tagged: Tri-County

The city of Sacramento announced the initial rent cap under the Tenant Protection and Relief Act, a new ordinance that limits rent increases and provides “just cause” tenancy protections. Effective Sept. 12, 2019, the maximum annual rent adjustment for an existing tenancy cannot exceed 8.5% within a 12-month period.  The new ordinance limits rent increases to 6% plus the annual Consumer Price Index. According to city staff, the CPI used to calculate the rent cap was 2.5%.  The allowed annual increase is calculated based upon the base rent, which is the monthly rent in effect on July 1, 2019, for tenancies commencing on or before Sept.12. For tenancies beginning after that date, the initial base rent is the monthly… Read More

Tagged: Sacramento Valley

When Sacramento renters get caught illegally cultivating marijuana, it’s their landlords who get the bill — and it can reach hundreds of thousands of dollars.  Over the past two years, the city has assessed $94 million in administrative penalties against property owners accused of violating the local cannabis ordinance, CapRadio has reported. The ordinance, which took effect in August 2017, limits the number of plants that may be cultivated at a property to six and charges $500 per plant in excess of that number.  And now, other California cities may be looking at Sacramento’s enforcement tactics as a possible model for their own marijuana-cultivation measures.   Sacramento City Hall Enforcement of… Read More

Tagged: Sacramento Valley

The California Apartment Association has issued an “Industry Insight” paper to help rental housing owners comply with a Section 8-related ordinance that’s taken effect in San Jose. Effective Thursday, Sept. 26, the city’s “Housing Payment Equality Ordinance” requires that landlords consider for tenancy all applicants with the ability to pay for a given unit, including those who would pay their rent using Section 8. The enforcement provisions of the ordinance do not take effect for six months, but the director of the San Jose Department of Housing may issue written warnings for violations of the ordinance in the meantime. CAA… Read More

Tagged: Tri-County

Landlords with properties subject to Sacramento’s new rent control law will help fund the program through a $20-per-unit annual fee. The fee won approval Tuesday as the City Council ratified the budget for its new rent control and “just cause” eviction ordinance. More than 42,000 rental units are subject to the ordinance and the annual fee. The city will begin collecting it in spring 2020.

Tagged: Sacramento Valley

Christopher Thornberg The California Apartment Association is pleased to announce that renowned economist Christopher Thornberg, founding partner of Beacon Economics, will deliver the economic forecast at Outlook 2020 —  an economic and political lookahead for Orange County’s rental housing industry. The forecast is part of CAA’s annual Orange County Holiday Breakfast meeting, which comes to Costa Mesa on Dec. 5. In addition to an analysis of the state and local economy, Thornberg will provide a snapshot of employment, home prices, consumer spending, personal income, and other leading economic indicators impacting the Orange County market.  Aside from his role at Beacon… Read More

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The city of Los Angeles is continuing its research into a possible tax on landlords who leave apartments vacant. Late last month, the City Council ordered city staff to gauge the number of unoccupied apartments in the city and the reasons they’re sitting empty. City staff also are examining how vacancy taxes, empty-home penalties and speculator taxes are carried out in other jurisdictions.

Tagged: Los Angeles

Before adjourning for the year early last Saturday morning, California lawmakers approved a number of bills with serious implications for the rental housing industry. Gov. Gavin Newsom In the paragraphs below, we summarize the most significant of those proposals. Gov. Gavin Newsom now has until Oct. 13 to either sign or veto each of the following:

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