BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1925
                                                                  Page  1

          Date of Hearing:   April 25, 2012

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                      AB 1925 (Ma) - As Amended:  April 19, 2012
           
          SUBJECT  :   Real property: rent control.

           SUMMARY  :   Specifies levels of compensation for tenant 
          households who are temporarily displaced from a rent-controlled 
          unit in San Francisco.  Specifically,  this bill  :  

          1)Limits levels of compensation in the City and County of San 
            Francisco for the temporary displacement of a tenant household 
            for less than 20 days, notwithstanding any local law to the 
            contrary, to both of the following:

             a)   Temporary housing and living expenses not to exceed $275 
               per day per tenant household; and

             b)   Actual moving expenses if it is necessary to move the 
               possessions of the tenant household.

          2)Allows the $275 per day limit to be adjusted annually in an 
            amount equal to the Consumer Price Index, beginning on January 
            1, 2014.

          3)Provides the landlord with the option to provide a comparable 
            dwelling unit and pay any actual moving expenses in lieu of 
            daily compensation and requires the unit to be comparable to 
            the tenant household's existing housing in location, size, 
            number of bedrooms, accessibility, type, and quality of 
            construction, and proximity to services and institutions upon 
            which the displaced tenant household depends.

          4)Specifies that these provisions shall not be construed to do 
            any of the following:

             a)   Terminate, interrupt, or amend, in any way, a tenancy 
               subject to the lease provisions, or the rights and 
               obligations of either party, including, but not limited to, 
               the payment of rent;

             b)   Create or affect any grounds for displacement or 
               requirements of a landlord seeking temporary displacement, 








                                                                  AB 1925
                                                                  Page  2

               except the payment of relocation fees for displacement not 
               exceeding 20 days; and

             c)   Affect the authority of a public entity that may 
               regulate or monitor the basis for eviction.

          5)Provides that if a federal or state law regarding relocation 
            compensation is also applicable to the temporary displacement, 
            the tenant may elect to be compensated under those other 
            provisions instead.

          6)Specifies that these provisions affect only levels of 
            compensation for a temporary displacement of less than 20 days 
            and do not affect any other local procedures governing 
            temporary relocation.
          7)Includes findings that a special law is necessary because of 
            the unique circumstances of the City and County of San 
            Francisco. 

           EXISTING LAW  provides that cities and counties have within their 
          police power the authority to enact rent control laws so long as 
          property owners are assured a fair rate of return ÝBirkenfeld v. 
          Berkeley (1976) 17 Cal. 3d 129].

           FISCAL EFFECT  :   None

           COMMENTS  :   

          In 2006, San Francisco voters passed Proposition H, which made 
          changes to the city's rent control ordinance relating to 
          relocation benefits in the event of a no-fault eviction. The 
          measure was placed on the ballot in response to an increase in 
          the number of no-fault evictions and concern that the relocation 
          benefit amount had not been changed since 1987. Prior to 
          Proposition H, San Francisco landlords had to pay $1000 to each 
          tenant who had lived in a unit for more than a year in the event 
          the tenant had to be relocated. Proposition H raised that amount 
          to $4500 per tenant plus an additional $3000 for each disabled 
          or elderly tenant or household with minor children and provided 
          for annual increases in the relocation benefit. Currently, the 
          relocation benefit is $5153 per tenant with a per-unit maximum 
          of $15,460, plus an additional $3436 for each disabled or 
          elderly tenant or household with minor children. 

          Under San Francisco's rent control ordinance, landlords must pay 








                                                                  AB 1925
                                                                  Page  3

          relocation benefits whether tenants are being permanently 
          evicted or must temporarily vacate a unit to allow for 
          improvements or repairs. Thus, tenants who have to move out for 
          a few days to allow a landlord to paint the apartment or upgrade 
          the plumbing are entitled to the exact same relocation benefits 
          as tenants who need to find another place to live. 

          AB 1925 limits relocation benefits in San Francisco in the event 
          of a temporary displacement to $275 per day per household plus 
          any moving expenses, to be adjusted annually based on the 
          Consumer Price Index. The bill defines a temporary displacement 
          as one that lasts less than 20 days. The bill allows landlords 
          to provide temporarily displaced tenants with a comparable 
          dwelling unit rather than daily compensation, so long as the 
          unit is close to the services and institutions upon with the 
          displaced tenants depend. 

          According to the sponsor, the California Apartment Association, 
          requiring landlords to pay such a substantial amount to tenants 
          who need to leave a unit for a short amount of time to allow for 
          improvements or repairs is "extremely unreasonable and threatens 
          the health and safety of tenants by discouraging any proactive 
          repairs and improvements by property owners of their housing 
          units." 

           Double referred  :

          If AB 1925 passes this committee, the bill will be referred to 
          the Committee on Judiciary.
           




          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Apartment Association (sponsor)
          California Building Industry Association

           Opposition 
           
          None on file
           








                                                                 AB 1925
                                                                  Page  4

          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916) 
          319-2085