Amended in Senate April 1, 2014

Senate Bill No. 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 amended, 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 begin insert City and end insert County of San Francisco to prohibit an owner of accommodations from begin delete withdrawing end delete begin insert filing a notice with a public entity of an intent to withdraw end insert 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 begin insert city and end insert county to require an owner of accommodations notifying the begin insert city and end insert 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 begin insert city and end insert 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 begin insert City and end insert 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:

SECTION 1.  

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

7060.8.  

(a) This section shall apply only to a begin delete county of the
sixth class as defined by Sections 28020 and 28027. end delete begin insert city that is
also a county. end insert

(b) Notwithstanding any other provision of this chapter, the begin insert city
and end insert county by statute, ordinance, ballot measure, executive
directive, resolution, or regulation may provide that:

(1) An owner of accommodations shall not begin insert file a notice with a
public entity of an intent to end insert withdraw accommodations pursuant
to this chapter, prosecute an action to recover possession of
accommodations pursuant to this chapter, or threaten to do either
of these things, unless all the owners of the accommodations have
been owners of record for five continuous years or more. If an
owner of record is not a natural person, then all persons or entities
with an ownership interest in that entity shall have held that interest
for five continuous years.

(2)  begin delete An owner of accommodations end delete begin insert If an owner of
accommodations files a notice of intent with the public entity to
withdraw accommodations under this chapter, and the owner
subsequently acquires a new property containing accommodations,
the owner end insert shall not withdraw accommodations pursuant to this
chapter, prosecute an action to recover possession of
accommodations pursuant to this chapter, or threaten to do either
of these things, with respect to begin delete accommodations acquired after the
date that owner provided notice of an intent to withdraw
accommodations at a different property. end delete begin insert the later acquired
property. end insert For purposes of this paragraph, an owner of
accommodations includes any person or entity with an ownership
interest in an entity that owns the accommodations.

(3) An owner begin delete of record end delete of accommodations, or any person or
entity with an begin delete equity end delete begin insert ownership end insert interest in begin delete the owner of record, end delete begin insert an
entity that owns the accommodations, end insert shall not act in concert with
a coowner, successor owner, prospective owner, agent, employee,
or assignee, begin delete directly or indirectly, end delete to circumvent the limitations of
paragraph (1) or (2).

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

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

SEC. 2.  

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