AgdaPkt 2019-10-28 Joint SA PFA - Laserfiche WebLink

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8.A. - Page 2 of 24 to 5 percent plus cost of living inflation, or 10 percent, whichever is lower. The bill will also prohibit an owner from terminating a tenancy without just cause if the tenant has lived in a unit for 12 months or more. After AB 1482 becomes effective, the prohibitions on eviction without just cause will go into effect on January 1, 2020 and if rents were increased after March 15, 2019, the rent on January 1, 2020 is reduced to the rent as of March 15, 2019 plus the maximum increase allowed by AB 1482. AB 1482 implements two concurrent protections on applicable units: (1) a cap on rent increases and (2) just cause eviction protection, which includes providing a one-month rent payment for relocation assistance when a landlord terminates a lease through no fault of the tenant. The relocation payment is paid without regard to a tenant's income or other characteristics. A discussion on each of these provisions follows. Rent Cap AB 1482 introduces a cap on rent increases that would allow a landlord to raise the rents by 5% per year plus the percentage change in the cost of living, or 10%, whichever is lower. The increase is tied to annual April/April Bay Area Consumer Price Index (CPI). To provide historical context, staff researched the annual April CPI percentage change for the last four years. In 2018, 2017, 2016, and 2015, the CPI increase was approximately 3.2%, 3.8%, 2.7%, and 2.4%, respectively. The April 2019 Bay Area CPI increase was 4.0%, which would result in a maximum rent increase of 9.0% once AB 1482 becomes effective. Just Cause Eviction Protection AB 1482 includes just cause eviction protections for tenants if they have lived in a unit for 12 months or more. Just cause eviction protection would require a landlord to have a valid reason for terminating a tenancy. Some examples of just cause include non-payment of rent, violation of a lease term, and nuisance. The just cause eviction protections only apply to tenants who have resided in a unit for 12 months or more: AB 1482 does not apply to tenants who have been residing in the unit for less than 12 months. Range of Applicable Units Under AB 1482 certain housing units are not subject to provisions in the law. The lust cause protections and the rent cap limitations do not apply to units: • Issued a certificate of occupancy in the previous 15 years • Dormitories owned by an educational institution • Affordable housing restricted by a deed covenant, regulatory agreement or other recorded document • Single family homes or condominiums provided the owner is not a real estate investment trust, a corporation, or a limited liability company where at least one member is a corporation, so long as City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 122