The California Apartment Association and several other business groups have issued a letter objecting to a bill that would create an excise tax on rental housing and a costly, statewide rental registration program. The letter takes aim at AB 1199 by Assemblyman Mike Gipson, D-Los Angeles. Gipson’s legislation would impose an annual excise tax upon owners with 10 or more multifamily or single-family rental properties for the “privilege” of being a landlord. The tax rate would be based on the gross receipts of the rental income, an amount yet undefined.
Legislation unveiled Thursday would force California landlords to stay in the rental housing business for at least five years, even if they are losing money month after month. AB 854 by Assemblyman Alex Lee, D-San Jose, takes aim at California’s Ellis Act, a law that protects a landlord’s right to leave the rental housing business.
A second federal judge has challenged the CDC’s nationwide eviction moratorium, but the ruling won’t change anything about California’s COVID-19 eviction restrictions. On March 10, a federal judge in Cleveland concluded that the Centers for Disease Control and Prevention exceeded its authority by imposing its nationwide eviction ban. In February, a federal judge in Texas also found that the CDC lacked the power to prohibit evictions, saying only states and local governments have such authority.
The application period for emergency rental assistance in the city and the county of Sacramento will expire Friday, March 19. Last month, the Sacramento City Council unanimously approved the allocation of $31.7 million in federal and state funds to help low-income renters catch up on past-due rent and utility payments due to the COVID-19 pandemic. Similarly, Sacramento County received and allocated an additional $64 million dollars of federal and state funds. This allocation follows the passage of SB 91, which extends the COVID-19 Tenant Relief Act (AB 3088, 2020) for another five months until June 30, 2021, and creates a… Read More
Rental housing providers and residents can now begin applying for Covid-19-related rental assistance through the State of California. The program, administered by the California Department of Housing and Community Development, will pay landlords 80% of the past due rent owed between April 1, 2020, and March 31, 2021, by eligible households. The application process opened at 5 p.m. Monday, March 15, and is accessible through this online portal. The rental assistance money comes from a pandemic-recovery package approved by Congress late last year. It includes $1.4 billion that went to the state, while $1.2 billion headed to “entitlement districts,” which… Read More
A bill cosponsored by the California Apartment Association seeks to streamline the appeals process for affordable housing developers when local governments violate California’s Housing Accountability Act. Under the state’s Housing Accountability Act, cities and counties are prohibited from rejecting affordable housing developments unless certain conditions exist. Yet officials frequently reject projects in defiance of the law. The story usually stops there. Most developers are reluctant to challenge a city or county in court because of the required time, expenses, and uncertainty. Assemblyman Jesse Gabriel AB 989 by Assemblyman Jesse Gabriel, D-Van Nuys, seeks to remedy this situation by creating a… Read More
The California Apartment Association has asked the state’s Judicial Council to further revise the jury instructions for eviction cases that go to trial following the passage of Senate Bill 91. Passed in late January, SB 91 extended California’s eviction moratorium through June of this year. To avoid eviction, tenants now have until June 30 to pay at least 25% of rent debt that’s accrued since Sept. 1, 2020. The Judicial Council’s proposed jury instructions revisions, however, leave out the new June 30 deadline for tenants to pay a quarter of what’s owed. The instructions also fail to explain what’s required… Read More
President Biden on Thursday signed a Covid-19 stimulus package – labeled the American Rescue Plan — that will earmark an additional $2.2 billion in emergency rental assistance for California. Besides the rent relief, California is expected to receive $1.2 billion in homeowner assistance, $590 million in funding to address homelessness, as well as money for areas including schools, vaccines and transit systems.
Legislation approved last year will make it easier to determine allowable annual rent increases under AB 1482, the Tenant Protection Act of 2019. The Tenant Protection Act restricts rent increases in any 12-month period to no more than 5% plus the percentage change in the cost of living (CPI), or 10%, whichever is lower. The law defined the “percentage change in the cost of living” as the percentage from April 1 of the prior year to April 1 of the current year. This created problems with calculating rent increases because the April figures are often not available until June. Landlords… Read More