Senate BillNo. 1439


Introduced by Senator Leno

February 21, 2014


An act to add Section 7060.8 to the Government Code, relating to residential real property.

LEGISLATIVE COUNSEL’S DIGEST

SB 1439, as introduced, Leno. Residential real property: withdrawal of accommodations.

Existing law, commonly known as the Ellis Act, generally prohibits public entities 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, as defined, in the property for rent or lease.

This bill would authorize the County of San Francisco to prohibit an owner of accommodations from withdrawing accommodations or prosecuting an action to recover possession of accommodations, or threatening to do so, if not all the owners of the accommodations have been owners of record for 5 continuous years or more or with respect to property that the owner acquired after providing notice of an intent to withdraw accommodations at a different property. Among other things, the bill would also permit the county to require an owner of accommodations notifying the county of an intention to withdraw accommodations from rent or lease to identify each person or entity with an ownership interest in the accommodations and to identify all persons or entities with an ownership interest in an entity, which information would be available for public inspection. The bill would provide specified, nonexclusive remedies that the county would be authorized to provide for a violation of these provisions.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Francisco.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 7060.8 is added to the Government Code,
2to read:

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7060.8.  

(a) This section shall apply only to a county of the
4sixth class as defined by Sections 28020 and 28027.

5(b) Notwithstanding any other provision of this chapter, the
6county by statute, ordinance, ballot measure, executive directive,
7resolution, or regulation may provide that:

8(1) An owner of accommodations shall not withdraw
9accommodations pursuant to this chapter, prosecute an action to
10recover possession of accommodations pursuant to this chapter,
11or threaten to do either of these things, unless all the owners of the
12accommodations have been owners of record for five continuous
13years or more. If an owner of record is not a natural person, then
14all persons or entities with an ownership interest in that entity shall
15have held that interest for five continuous years.

16(2) An owner of accommodations shall not withdraw
17accommodations pursuant to this chapter, prosecute an action to
18recover possession of accommodations pursuant to this chapter,
19or threaten to do either of these things, with respect to
20accommodations acquired after the date that owner provided notice
21of an intent to withdraw accommodations at a different property.
22For purposes of this paragraph, an owner of accommodations
23includes any person or entity with an ownership interest in an entity
24that owns the accommodations.

25(3) An owner of record of accommodations, or any person or
26entity with an equity interest in the owner of record, shall not act
27in concert with a coowner, successor owner, prospective owner,
28agent, employee, or assignee, directly or indirectly, to circumvent
29the limitations of paragraph (1) or (2).

30(4) An owner of accommodations notifying the county of an
31intention to withdraw accommodations from rent or lease shall
32identify each person or entity with an ownership interest in the
33accommodations, and if any entity is not a natural person, identify
P3    1all persons or entities with an ownership interest in that entity.
2This information shall not be confidential and shall be available
3for public inspection.

4(c) The county may provide that a person or entity that violates
5the provisions described in subdivision (b) is liable to the tenant
6or lessee for actual damages, special damages of not less than two
7thousand dollars ($2,000) for each violation, and reasonable
8attorney fees and costs in an amount fixed by the court. The remedy
9provided by this section is not exclusive and shall not preclude
10either the tenant or lessee from pursuing any other remedy provided
11by law.

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SEC. 2.  

The Legislature finds and declares that a special law
13is necessary and that a general law cannot be made applicable
14within the meaning of Section 16 of Article IV of the California
15Constitution because of the recent significant increase in the
16evictions under the Ellis Act in the City and County of San
17Francisco and the consequent displacement of long-time residents
18and severe reduction of availability of affordable rental housing
19in San Francisco.



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