BILL ANALYSIS �
AB 1925
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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,
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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 �Birkenfeld 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
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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
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Analysis Prepared by : Anya Lawler / H. & C.D. / (916)
319-2085