SB-567:
- Closes loopholes that allow for no-fault just causes for eviction
- Expands the population of protected tenants
- Limits allowable rent increases to a more “reasonable” cap
- Provides mechanisms for enforcement
Major renovations are one of the few reasons outlined in the 2019 Tenant Protection Act (AB 1482) that landlords in California can use to evict tenants who haven’t done anything wrong. The landmark legislation was designed to curb the impacts of rising rents and keep tenants in their homes. But housing advocates said the substantial-repairs exception created a loophole property owners are exploiting to kick renters out.
The Tenant Protection Act requires that renovations be significant enough that they entail permits, but there’s no easy way to ensure property owners follow through. Tenants can sue, but the process is time-consuming and costly.
Now, advocates and lawmakers have a plan to curb that practice. State Sen. María Elena Durazo’s (D-Los Angeles) SB 567, called the Homelessness Prevention Act, cuts off the financial incentive to exploit “reno-victions” by requiring landlords to cover temporary relocation costs and let tenants return at the same rent, or pay a relocation fee of six times the current fair market rent for the area.
It would also require property owners to have permits in hand before issuing eviction notices, provide a description of the repairs to be completed and detail how long they’re expected to take. Under the new bill, tenants could not be evicted unless the renovations would take at least 60 days and would be necessary for health and safety reasons.
Durazo’s measure would change existing law by capping rent increases at the amount set by the CPI. It would also lower the maximum threshold from 10% to 5%, expand the number of Californians covered by that cap, and place other restrictions on evictions.
The bill also puts tighter limits on other types of no-fault evictions, including when an owner wants to move in or take their property off the market. Owners evicting a tenant to occupy the unit or to rent the housing to a relative must facilitate the move-in within 90 days, stay for at least three years, and keep their buildings off the market at least 10 years.
Durazo’s bill would also expand existing protections to include tenants in single-family homes and condos, as well as mobile home owners, all of whom are currently excluded.
Sources:
https://www.sacbee.com/news/politics-government/capitol-alert/article272962150.html
https://wclp.org/wp-content/uploads/2023/03/SB-567-Fact-Sheet-3.2.2023.pdf