BILL ANALYSIS
SB 1745
Page 1
SENATE THIRD READING
SB 1745 (Burton)
As Amended July 6, 2000
Majority vote
SENATE VOTE : 25-11
JUDICIARY 13-2
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|Ayes:|Kuehl, Aroner, Bates, | | |
| |Bock, Corbett, House, | | |
| |Jackson, Knox, Longville, | | |
| |Robert Pacheco, Shelley, | | |
| |Steinberg, Wiggins | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Ackerman, McClintock | | |
| | | | |
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SUMMARY : Seeks to provide tenants with additional notice of
annual rent increases greater than 10%. Specifically, this
bill :
1)Provides that a landlord must give 30 days notice before
increasing the rent, if the proposed rent increase is 10% or
less of the rental amount either in and of itself or when
combined with all other rent increases for the 12 months prior
to the effective date of the increase. Also provides that, if
the rent increase is greater than 10%, the landlord must
provide an additional 30 days notice.
2)Provides that a landlord may increase the rent provided in the
lease upon written notice to the tenant by either: a)
personally serving a copy upon the tenant; or, b) mailing a
copy to the tenant in compliance with existing service
procedures.
3)Provides that the personal service or mailing of the notice
shall be in accordance with any longer period provided for in
a state or federal statute or regulation, recorded regulatory
agreement, or contract.
4)Sunsets on January 1, 2006.
SB 1745
Page 2
FISCAL EFFECT : None
COMMENTS : This bill, sponsored by Western Center on Law and
Poverty and the California Rural Legal Assistance Foundation, is
intended to provide tenants with additional notice of a rent
increase greater than 10% of the rental amount and simplify
notification procedures for landlords. In support of this bill,
Western Center on Law and Poverty notes:
This legislation is made necessary by large rent increases
in all major housing markets and vacancy rates that are
dipping below 1% in many areas. The 30-day notice of a
rent increase provided in current law is simply not
adequate to find a new place and move in today's
overheated housing market, or make other arrangements to
pay for the increased rent (such as taking a second job or
finding roommates). Over 120 housing and tenant groups
throughout the state support SB 1745 to assist tenants
beset by the largest increases. ?
The low overall vacancy rates are even lower at the more
affordable end of the scale. Renters can no longer find
new units in 30 days. ? SB 1745 represents a consensus
solution to notice issues. The increased notice for large
rent increases will allow more flexibility and time to
formulate options for tenants who are de facto facing the
loss of their home. The streamlined procedure will save
time and money for owners.
This bill also simplifies existing notification procedures with
which landlords must comply. Under existing law, a landlord
must notify a tenant of a change to the terms of a
month-to-month lease, including a rental increase by: 1)
delivering a copy of the written notice to the tenant
personally; 2) leaving a copy of the written notice with another
person and mailing a copy to the tenant; or, 3) posting a copy
to a conspicuous place on the property, leaving a copy with an
individual residing at the residence and mailing a copy to the
tenant.
Under this bill, a landlord of a residential dwelling would be
required to notify a tenant of a rental increase in one of two
ways, either by: 1) personally serving a copy upon the tenant;
or, 2) mailing a copy to the tenant in compliance with existing
service procedures under Code of Civil Procedure Section 1013
SB 1745
Page 3
which requires specified mailing procedures, including that the
notice bear a notation of the date and place of mailing or be
accompanied by an unsigned copy of an affidavit or certificate
of mailing.
The California Apartment Association opposes this bill, stating
that:
The Association members' concerns are directed at the
provision of the bill that places a subjective 10 percent
rental standard into California statute. It makes an
inappropriate public statement that there is a point at
which a rental increase is extraordinary. You should
know, however, that it is a common practice in the rental
housing industry today for owners to provide tenants a
60-day notice whenever the rent is increased - no matter
the percentage.
The latest amendments to this bill make non-substantive
technical changes.
Analysis Prepared by : Saskia I. Kim / JUD. / (916) 319-2334
FN: 0005589