BILL NUMBER: AB 1171 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Ammiano
FEBRUARY 27, 2009
An act to amend Section 7060 7060.4
of the Government Code, relating to rental property.
LEGISLATIVE COUNSEL'S DIGEST
AB 1171, as amended, Ammiano. Rental property:
residential hotels. public entity restriction.
Existing law authorizes, subject to specified provisions, any
public entity that has in effect any system of rent control to
require the owner to notify the entity of an intention to withdraw
those accommodations from rent or lease. This authorization provides
that the rent control system may establish the date on which the
accommodations are withdrawn from rent or lease 120 days from the
delivery in person or by first-class mail of that notice to the
public entity, unless the tenant or lessee is at least 62 years of
age or disabled and has lived in his or her accommodations for at
least one year prior to the date of delivery to the public entity of
the notice of intent to withdraw, in which case the date of
withdrawal of the accommodations of that tenant or lessee is required
to be extended to one year after the date of delivery of that notice
to the public entity. Existing law specifies that this one-year
extension occurs only if the tenant or lessee gives written notice of
his or her entitlement to an extension to the owner within 60 days
of the date of delivery to the public entity of the notice of intent
to withdraw.
This bill would, instead, specify that the rent control system of
a public entity may require that the one-year extension applies to
all tenancies in the applicable accommodations if a tenant or lessee
who is at least 62 years of age or disabled has lived in the
accommodations for at least one year prior to the delivery of notice
to a public entity and gives the required 60-day notice to the owner.
This bill would require an owner, as applicable in these
circumstances, to notify all tenants of the one-year extension. This
bill would make conforming changes to related provisions.
Under the Ellis Act, public entities generally are prohibited from
adopting any statute, ordinance, or regulation, or taking any
administrative action, to compel the owner of residential real
property to offer or to continue to offer accommodations in the
property for rent or lease. The act defines accommodations subject to
the act to mean either residential rental units in any detached
physical structure containing 4 or more residential rental units or,
with respect to a detached physical structure containing 3 or fewer
residential rental units, the residential rental units in that
structure and in any other structure located on the same parcel of
land.
Existing law declares that it is the intent of the Legislature in
enacting the Ellis Act to supersede any holding, or portion of the
holding, of a specified case, to the extent that the holding, or
portion of the holding, conflicts with this chapter, so as to permit
landlords to go out of business.
This bill would define, for purposes of the act, the phrase "to go
out of business" as to discontinue in the business or occupation of
being a landlord.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SE CTION 1. Section 7060.4 of the
Government Code is amended to read:
7060.4. (a) (1) Any public entity which, by a valid exercise of
its police power, has in effect any control or system of control on
the price at which accommodations are offered for rent or lease, may
require by statute or ordinance, or by regulation as specified in
Section 7060.5, that the owner notify the entity of an intention to
withdraw those accommodations from rent or lease and may require that
the notice contain statements, under penalty of perjury, providing
information on the number of accommodations, the address or location
of those accommodations, the name or names of the tenants or lessees
of the accommodations, and the rent applicable to each residential
rental unit.
Information
(2) Information respecting the
name or names of the tenants, the rent applicable to any residential
rental unit, or the total number of accommodations, is confidential
information and for purposes of this chapter shall be treated as
confidential information by any public entity for purposes of the
Information Practices Act of 1977 (Chapter 1 (commencing with Section
1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code). A
public entity shall, to the extent required by the preceding
sentence, be considered an "agency," as defined by subdivision
(d) (b) of Section 1798.3 of the Civil
Code.
(b) The statute, ordinance, or regulation of the public entity may
require that the owner record with the county recorder a memorandum
summarizing the provisions, other than the confidential provisions,
of the notice in a form which that
shall be prescribed by the statute, ordinance, or regulation, and
require a certification with that notice that actions have been
initiated as required by law to terminate any existing tenancies. In
that situation, the date on which the accommodations are withdrawn
from rent or lease for purposes of this chapter is 120 days from the
delivery in person or by first-class mail of that notice to the
public entity. However, if the any
tenant or lessee is at least 62 years of age or disabled, and has
lived in his or her accommodations for at least one year prior to the
date of delivery to the public entity of the notice of intent to
withdraw pursuant to subdivision (a), then the date of withdrawal of
the accommodations of that tenant or lessee shall
be extended to one year after the date of delivery of that notice to
the public entity, provided that the a
tenant or lessee gives written notice of his or her entitlement to an
extension to the owner within 60 days of the date of delivery to the
public entity of the notice of intent to withdraw. In that
situation, the following provisions shall apply:
(1) The tenancy tenancies shall be
continued on the same terms and conditions as existed on the date of
delivery to the public entity of the notice of intent to withdraw,
subject to any adjustments otherwise available under the system of
control.
(2) No party shall be relieved of the duty to perform any
obligation under the lease or rental agreement.
(3) The owner may elect to extend the date of withdrawal on any
other accommodations up to one year after date of delivery to the
public entity of the notice of intent to withdraw, subject to
paragraphs (1) and (2).
(4)
(3) Within 30 days of the notification by the
a tenant or lessee to the owner of his or her
entitlement to an extension, the owner shall give written notice to
the public entity and all other tenants of the
a claim that the tenant or lessee is entitled to
stay in their accommodations for one year after date of delivery to
the public entity of the notice of intent to withdraw.
(5)
(4) Within 90 days of date of delivery to the public
entity of the notice of intent to withdraw, the owner shall give
written notice to the public entity and the affected tenant
or lessee of tenants that the owner's
election to extend the date of withdrawal and the
new date of withdrawal under paragraph (3) has been
extended to one year .
(c) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify any tenant or lessee to be displaced pursuant to
this chapter of the following:
(1) That the public entity has been notified pursuant to
subdivision (a).
(2) That the notice to the public entity specified the name and
the amount of rent paid by the tenant or lessee as an occupant of the
accommodations.
(3) The date of withdrawal has been extended to one year pursuant
to subdivision (b).
(3)
(4) The amount of rent the owner specified in the
notice to the public entity.
(4)
(5) Notice to the tenant or lessee of his or her rights
under paragraph (3) of subdivision (b) of Section 7060.2.
(5) Notice to the tenant or lessee of the following:
(A) If the tenant or lessee is at least 62 years of age or
disabled, and has lived in his or her accommodations for at least one
year prior to the date of delivery to the public entity of the
notice of intent to withdraw, then tenancy shall be extended to one
year after date of delivery to the public entity of the notice of
intent to withdraw, provided that the tenant or lessee gives written
notice of his or her entitlement to the owner within 60 days of date
of delivery to the public entity of the notice of intent to withdraw.
(B) The extended tenancy shall be continued on the same terms and
conditions as existed on date of delivery to the public entity of the
notice of intent to withdraw, subject to any adjustments otherwise
available under the system of control.
(C) No party shall be relieved of the duty to perform any
obligation under the lease or rental agreement during the extended
tenancy.
(d) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify the public entity in writing of an intention to again offer
the accommodations for rent or lease.
SECTION 1. Section 7060 of the Government Code
is amended to read:
7060. (a) No public entity, as defined in Section 811.2, shall,
by statute, ordinance, or regulation, or by administrative action
implementing any statute, ordinance or regulation, compel the owner
of any residential real property to offer, or to continue to offer,
accommodations in the property for rent or lease, except for
guestrooms or efficiency units within a residential hotel, as defined
in Section 50519 of the Health and Safety Code, if the residential
hotel meets all of the following conditions:
(1) The residential hotel is located in a city and county, or in a
city with a population of over 1,000,000.
(2) The residential hotel has a permit of occupancy issued prior
to January 1, 1990.
(3) The residential hotel did not send a notice of intent to
withdraw the accommodations from rent or lease pursuant to
subdivision (a) of Section 7060.4 that was delivered to the public
entity prior to January 1, 2004.
(b) For the purposes of this chapter, the following definitions
apply:
(1) "Accommodations" means either of the following:
(A) The residential rental units in any detached physical
structure containing four or more residential rental units.
(B) With respect to a detached physical structure containing three
or fewer residential rental units, the residential rental units in
that structure and in any other structure located on the same parcel
of land, including any detached physical structure specified in
subparagraph (A).
(2) "Disabled" means a person with a disability, as defined in
Section 12955.3 of the Government Code.
(3) "To go out of business" means to discontinue in the business
or occupation of being a landlord.