BILL NUMBER: AB 1164 CHAPTERED
BILL TEXT
CHAPTER 331
FILED WITH SECRETARY OF STATE AUGUST 4, 1995
APPROVED BY GOVERNOR AUGUST 3, 1995
PASSED THE SENATE JULY 24, 1995
PASSED THE ASSEMBLY JULY 24, 1995
AMENDED IN SENATE JULY 20, 1995
AMENDED IN SENATE JULY 6, 1995
INTRODUCED BY Assembly Member Hawkins
(Principal coauthor: Senator Costa)
FEBRUARY 23, 1995
An act to add Chapter 2.7 (commencing with Section 1954.50) to
Title 5 of Part 4 of Division 3 of the Civil Code, to repeal Chapter
3.7 (commencing with Section 50540), Chapter 5 (commencing with
Section 50600), Chapter 6 (commencing with Section 50650), and
Chapter 11.6 (commencing with Section 50810), of Part 2 of, and to
repeal Part 3.5 (commencing with Section 51500) of, Division 31 of,
the Health and Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 1164, Hawkins. Housing: rent control: obsolete programs.
(1) Under existing law, the rent for a hiring of real property is
determined by contract of the parties in the absence of governmental
regulation. Various local governmental entities within the state
have enacted ordinances or other measures that establish maximum
rents for the hiring of real property for residential use.
This bill would provide that, notwithstanding any other provision
of law, an owner, as defined, of residential real property, as
defined, may establish the initial and all subsequent rental rates
for a dwelling or a unit that has a certificate of occupancy issued
after February 1, 1995, that has already been exempt from the
residential rent control ordinance of a public entity on or before
February 1, 1995, pursuant to a local exemption for newly constructed
units, is alienable separate from the title to any other dwelling
unit, or is a subdivided interest in a subdivision as specified in a
referenced provision of the Business and Professions Code, except
under certain conditions. The bill would also provide that,
notwithstanding any other provision of law, an owner of residential
real property may establish the initial rental rate for a dwelling or
unit, except under specified conditions. The bill would also make
various technical and conforming changes to statutes relating to rent
control.
Since the bill would impose new duties on those local agencies
administering existing ordinances that establish maximum rents for
the hiring of residential real property by requiring local agencies
to apply different standards in administrative proceedings, the bill
would impose a state-mandated local program.
(2) Under existing law, various programs exist establishing and
implementing state policy with respect to housing and home financing.
These programs include the Mobilehome Parks for Senior Citizens
Demonstration Project, Low Income Management Training, the Urban
Homestead Program, the Transitional Housing Rental Deposit Guarantee
Program, and Housing for Prison Employees.
This bill would state legislative intent to streamline and improve
state housing policy by repealing obsolete, outmoded, and
inoperative programs and statutes, and would repeal the programs and
statutes identified above.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that no reimbursement shall be made from
the State Mandates Claims Fund for costs mandated by the state
pursuant to this act, but would recognize that local agencies and
school districts may pursue any available remedies to seek
reimbursement for these costs.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 2.7 (commencing with Section 1954.50) is added
to Title 5 of Part 4 of Division 3 of the Civil Code, to read:
CHAPTER 2.7. RESIDENTIAL RENT CONTROL
1954.50. This chapter shall be known and may be cited as the
Costa-Hawkins Rental Housing Act.
1954.51. As used in this chapter, the following terms have the
following meanings:
(a) "Comparable units" means rental units that have approximately
the same living space, have the same number of bedrooms, are located
in the same or similar neighborhoods, and feature the same, similar,
or equal amenities and housing services.
(b) "Owner" includes any person, acting as principal or through an
agent, having the right to offer residential real property for rent,
and includes a predecessor in interest to the owner, except that
this term does not include the owner or operator of a mobilehome
park, or the owner of a mobilehome or his or her agent.
(c) "Prevailing market rent" means the rental rate that would be
authorized pursuant to 42 U.S.C.A. 1437 (f), as calculated by the
United States Department of Housing and Urban Development pursuant to
Part 888 of Title 24 of the Code of Federal Regulations.
(d) "Public entity" has the same meaning as set forth in Section
811.2 of the Government Code.
(e) "Residential real property" includes any dwelling or unit that
is intended for human habitation.
(f) "Tenancy" includes the lawful occupation of property and
includes a lease or sublease.
1954.52. (a) Notwithstanding any other provision of law, an owner
of residential real property may establish the initial and all
subsequent rental rates for a dwelling or a unit about which any of
the following is true:
(1) It has a certificate of occupancy issued after February 1,
1995.
(2) It has already been exempt from the residential rent control
ordinance of a public entity on or before February 1, 1995, pursuant
to a local exemption for newly constructed units.
(3) It is alienable separate from the title to any other dwelling
unit or is a subdivided interest in a subdivision as specified in
subdivision (b), (d), or (f) of Section 11004.5 of the Business and
Professions Code. This paragraph shall not apply to a dwelling or
unit where the preceding tenancy has been terminated by the owner by
notice pursuant to Section 1946 or has been terminated upon a change
in the terms of the tenancy noticed pursuant to Section 827.
Where a dwelling or unit whose initial or subsequent rental rates
are controlled by an ordinance or charter provision in effect on
January 1, 1995, the following shall apply:
(A) An owner of real property as described in this paragraph may
establish the initial and all subsequent rental rates for all
existing and new tenancies in effect on or after January 1, 1999, if
the tenancy in effect on or after January 1, 1999, was created
between January 1, 1996, and December 31, 1998.
(B) Commencing on January 1, 1999, an owner of real property as
described in this paragraph may establish the initial and all
subsequent rental rates for all new tenancies if the previous tenancy
was in effect on December 31, 1995.
(C) The initial rental rate for a dwelling or unit as described in
this paragraph whose initial rental rate is controlled by an
ordinance or charter provision in effect on January 1, 1995 shall
not, until January 1, 1999, exceed the amount calculated pursuant to
subdivision (c) of Section 1954.53. An owner of residential real
property as described in this paragraph may until January 1, 1999,
establish the initial rental rate for a dwelling or unit only where
the tenant has voluntarily vacated, abandoned, or been evicted
pursuant to paragraph (2) of Section 1161 of the Code of Civil
Procedure.
(b) Subdivision (a) shall not apply where the owner has otherwise
agreed by contract with a public entity in consideration for a direct
financial contribution or any other forms of assistance specified in
Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7
of the Government Code.
(c) Nothing in this section shall be construed to affect any
authority of a public entity that may otherwise exist to regulate or
monitor the basis for eviction.
(d) This section shall not apply to any dwelling or unit which
contains serious health, safety, fire, or building code violations,
excluding those caused by disasters, for which a citation has been
issued by the appropriate governmental agency and which has remained
unabated for six months or longer preceding the vacancy.
1954.53. (a) Notwithstanding any other provision of law, an owner
of residential real property may establish the initial rental rate
for a dwelling or unit, except where any of the following applies:
(1) The previous tenancy has been terminated by the owner by
notice pursuant to Section 1946 or has been terminated upon a change
in the terms of the tenancy noticed pursuant to Section 827, except a
change permitted by law in the amount of rent or fees.
(2) The owner has otherwise agreed by contract with a public
entity in consideration for a direct financial contribution or any
other forms of assistance specified in Chapter 4.3 (commencing with
Section 65915) of Division 1 of Title 7 of the Government Code.
(3) The initial rental rate for a dwelling or unit whose initial
rental rate is controlled by an ordinance or charter provision in
effect on January 1, 1995, shall not until January 1, 1999, exceed
the amount calculated pursuant to subdivision (c).
(b) Subdivision (a) applies to, and includes, renewal of the
initial hiring by the same tenant, lessee, authorized subtenant, or
authorized sublessee for the entire period of his or her occupancy at
the rental rate established for the initial hiring.
(c) The rental rate of a dwelling or unit whose initial rental
rate is controlled by ordinance or charter provision in effect on
January 1, 1995, shall, until January 1, 1999, be established in
accordance with this subdivision. Where the previous tenant has
voluntarily vacated, abandoned, or been evicted pursuant to paragraph
(2) of Section 1161 of Code of Civil Procedure, an owner of
residential real property may, no more than twice, establish the
initial rental rate for a dwelling or unit in an amount that is no
greater than 15 percent more than the rental rate in effect for the
immediately preceding tenancy or in an amount that is 70 percent of
the prevailing market rent for comparable units, whichever amount is
greater.
The initial rental rate established pursuant to this subdivision
shall not be deemed to substitute for or replace increases in rental
rates otherwise authorized pursuant to law.
(d) Nothing in this section or any other provision of law shall be
construed to preclude express establishment in a lease or rental
agreement of the rental rates to be applicable in the event the
rental unit subject thereto is sublet, and nothing in this section
shall be construed to impair the obligations of contracts entered
into prior to January 1, 1996.
An owner may increase the rent by any amount allowed by this
section to a sublessee or assignee where there is a rental agreement
prohibiting subletting or assignment or which prohibits subletting or
assignment without the owner's consent and the original occupant or
occupants who took possession pursuant to the rental agreement with
the owner, no longer permanently reside there.
Where one or more of the occupants of the premises pursuant to the
agreement with the owner provided for above remains an occupant in
lawful possession of the dwelling or unit, this subdivision shall not
apply to partial changes in occupancy of a dwelling or unit made
with the consent of the owner. Nothing contained in this section
shall establish or create any obligation of an owner to permit or
consent to a sublease or assignment.
Acceptance of rent by the owner shall not operate as a waiver or
otherwise prevent enforcement of a covenant prohibiting sublease or
assignment or as a waiver of an owner's rights to establish the
initial rental rate unless the owner has received written notice from
the tenant that is party to the agreement and thereafter accepted
rent.
(e) Nothing in this section shall be construed to affect any
authority of a public entity that may otherwise exist to regulate or
monitor the grounds for eviction.
(f) This section shall not apply to any dwelling or unit which
contains serious health, safety, fire, or building code violations,
excluding those caused by disasters, for which a citation has been
issued by the appropriate governmental agency and which has remained
unabated for six months or longer preceding the vacancy.
SEC. 2. It is the intent of the Legislature to streamline and
improve the efficiency of state housing policy efforts by repealing
various obsolete, outmoded, and inoperative housing programs and
statutes.
SEC. 3. Chapter 3.7 (commencing with Section 50540) of Part 2 of
Division 31 of the Health and Safety Code is repealed.
SEC. 4. Chapter 5 (commencing with Section 50600) of Part 2 of
Division 31 of the Health and Safety Code is repealed.
SEC. 5. Chapter 6 (commencing with Section 50650) of Part 2 of
Division 31 of the Health and Safety Code is repealed.
SEC. 6. Chapter 11.6 (commencing with Section 50810) of Part 2 of
Division 31 of the Health and Safety Code is repealed.
SEC. 7. Part 3.5 (commencing with Section 51500) of Division 31 of
the Health and Safety Code is repealed.
SEC. 8. No reimbursement shall be made from the State Mandates
Claims Fund pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code for costs mandated by
the state pursuant to this act. It is recognized, however, that a
local agency or school district may pursue any remedies to obtain
reimbursement available to it under Part 7 (commencing with Section
17500) and any other provisions of law.
Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.