BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1745|
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UNFINISHED BUSINESS
Bill No: SB 1745
Author: Burton (D), et al
Amended: 7/6/00
Vote: 21
SENATE JUDICIARY COMMITTEE : 7-1, 5/2/00
AYES: Burton, Escutia, O'Connell, Peace, Sher, Wright,
Schiff
NOES: Haynes
SENATE FLOOR : 25-11, 5/8/00
AYES: Alarcon, Alpert, Bowen, Burton, Chesbro, Dunn,
Escutia, Hayden, Hughes, Johnston, Karnette, McPherson,
Murray, O'Connell, Ortiz, Peace, Perata, Polanco, Schiff,
Sher, Solis, Soto, Speier, Vasconcellos, Wright
NOES: Brulte, Haynes, Kelley, Knight, Leslie, Lewis,
Monteith, Morrow, Mountjoy, Poochigian, Rainey
ASSEMBLY FLOOR : 58-12, 8/7/00 - See last page for vote
SUBJECT : Landlord-tenant: notice of rent increase
SOURCE : Western Center on Law and Poverty
DIGEST : This bill seeks to provide, until January 1,
2006, tenants with additional notice of annual rent
increases greater than ten percent.
Assembly Amendments revise procedures about notice and
places a ten percent standard in the bill.
CONTINUED
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ANALYSIS : Existing law generally requires 30-days notice
for a change in the terms of a month-to-month tenancy.
This bill:
1.Provides that a landlord must give 30 days notice before
increasing the rent, if the proposed rent increase is ten
percent 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 ten percent, 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
(1) personally serving a copy upon the tenant, or (2)
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.
Comments
According to the California Housing Law Project, as of the
beginning of 1997, there are 11,182,882 housing units in
California. Of those units, 5,773,943 are owner occupied,
and 4,607,263 units are renter occupied. The remainder,
3.8 percent, are vacant and are either being held out for
sale or rent.
The booming economy has lead to higher rents and lower
vacancy rates. Comment 2 in the Senate Judiciary Committee
analysis details recent new reports on shifts.
Prior Legislation
This bill is similar to SB 682 (Sher), which was passed by
the Legislature, but was vetoed by then-Governor Wilson.
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The veto message stated a concern that the bill would
"erode the venerable notion of the month-to-month tenancy."
It also stated Wilson's belief that there was no evidence
of a need for the bill since "[m]ost landlords will
accommodate a tenant who wishes to vacate rather than
engage in a costly eviction proceeding."
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/8/00)
Western Center on Law and Poverty (source)
Housing Authorities of the City of Santa Barbara and the
Counties of Kings and San Joaquin
Housing Departments of the Cities of Concord, Long Beach,
San Francisco (Mission), and Modesto
Housing Development Corporations of Burbank and Marin City
Fair Housing Councils of Marin, San Diego, and Riverside
Counties and Oakland
Sacramento Housing and Redevelopment Agency
City of Salinas Planning Department
California Association of Realtors
California Rural Legal Assistance Foundation
California Labor Federation, AFL-CIO
California Legislative Council for Older Americans
Congress of California Seniors
Mid-Peninsula Housing Coalition, Redwood City
Metropolitan Area Advisory Committee, National City
Los Angeles Housing Law Project
Southern California Association of Non-Profit Housing
Enterprise Foundation, Los Angeles
Corporation for Supportive Housing, Oakland
Friends Committee on Legislation
Council of Churches of Santa Clara County
Affordable Homes, Avila Beach
Foundation for Quality Housing Opportunities, North
Hollywood
California Community Reinvestment Committee, Glendale
West Hollywood Community Housing Corporation
SAMCO, San Jose
Shelter for the Homeless, Midway City
Sacramento Neighborhood Housing Services
Affordable Housing Foundation, San Francisco
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New Directions, Inc., Los Angeles
Community Economics, Oakland
Thai Community Development Center, Los Angeles
Archdiocese of Los Angeles Peace and Justice Commission
Los Angeles Council of Society of St. Vincent de Paul
Los Angeles Housing Partnership, Inc.
Los Angeles Community Design Center
People's Self-Help Housing Corporation, San Luis Obispo
Sacramento Mutual Housing Association
Lake County Alliance for the Mentally Ill
East LA Community Corporation
Los Angeles County Mental Health Association
Nevada County Housing and Community Services, Grass Valley
Venice Community Housing Corporation
Sonoma County Mobilehome Owners Association
Saint Joseph Health System, Orange
Skid Row Housing Trust, Los Angeles
Homes for Life Foundation, Los Angeles
Public Law Center, Santa Ana
Vision Los Angeles
Council of Community Housing Organizations, San Francisco
Orange County Community Housing Corporation, Santa Ana
Marin Continuum of Housing and Services, San Rafael
Rural Communities Housing Corporation, Ukiah
Santa Rosa Planning for Elders in the Central City
San Leandro Shelter for Women and Children
Agora Group, Goleta
H&L Properties, Long Beach;
Rural Community Assistance Corporation, Sacramento
Santa Monica Commission on Older Americans
Inquilinos Unidos, Los Angeles
West Contra Costa Conservation League, El Cerrito
Sober Living Network, Santa Monica
Santa Barbara County Legal Aid Foundation
Eden Housing, Inc., Hayward
Resources for Community Development, Berkeley
Shelter Partnership, Inc., Los Angeles
Local Initiatives Support Corporation, San Francisco
Interpersonal Developmental Facilitators, Inc., Pasadena
LINC Housing, Long Beach
Penny Lane, North Hills
Family Assistance Program, Los Angeles
East Palo Alto Council of Tenants
Common Ground Communities, Nevada City
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Sentinel Neighborhood Housing Services of Orange County;
Bakersfield Homeless Center;
Coachella Valley Housing Coalition, Indio
Charter House Home Ownership Program
San Franciscans for Reasonable Growth
California Affordable Housing Law Project, Oakland
Low-Income Housing Fund, Los Angeles
Asian Law Alliance, San Jose
Community Housing Opportunities Corporation, Davis
Napa Valley Community Housing
Community Resource Associates, Clayton
Shelter, Inc., Concord
Chicano Federation of San Diego County
JERICHO
Sacramento Loaves and Fishes
Emergency Housing Consortium, San Jose
Berkeley Gray Panthers
Santa Monica Rent Control Board
Sisters of the Holy Names California Province, Los Gatos
Conference of Social Justice Coordinators of So.
California, Los Angeles
Sisters of St Joseph, Los Angeles
Sonoma County Housing Advocacy Group
Palo Alto First Presbyterian Church Society Committee
Urban Futures, Orange
Filipino American Service Group, Inc., Los Angeles
St. Francis Center, Los Angeles
Protection and Advocacy
St. Mary's Center, Oakland
Mercy Charities Housing California, Orange
WNC, Inc., Costa Mesa
OPPOSITION : (Verified 8/8/00)
California Apartment Association
ARGUMENTS IN SUPPORT : This bill, sponsored by the
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 ten
percent of the rental amount and simplify notification
procedures for landlords. In support of this bill, the
Western Center on Law and Poverty notes:
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"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 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."
The 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 by (1) delivering a copy to the tenant
personally, or (2) mailing a copy to the tenant in
compliance with existing service procedures under Code of
Civil Procedure Section 1013, 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.
ARGUMENTS IN OPPOSITION : The California Apartment
Association opposes this bill, stating that:
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"The Association members' concerns are directed at the
provision of the bill that places a subjective ten 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 with a 60-day
notice whenever the rent is increased - no matter the
percentage."
ASSEMBLY FLOOR :
AYES: Aanestad, Alquist, Aroner, Bates, Bock, Brewer,
Calderon, Campbell, Cardenas, Cardoza, Cedillo, Corbett,
Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,
Firebaugh, Gallegos, Granlund, Havice, Honda, House,
Jackson, Keeley, Kuehl, Leach, Longville, Lowenthal,
Machado, Maddox, Maldonado, Mazzoni, Migden, Nakano,
Oller, Robert Pacheco, Papan, Pescetti, Reyes, Romero,
Runner, Scott, Shelley, Steinberg, Strickland,
Strom-Martin, Thomson, Torlakson, Villaraigosa, Vincent,
Washington, Wayne, Wesson, Wiggins, Wildman, Hertzberg
NOES: Ackerman, Battin, Baugh, Briggs, Kaloogian, Leonard,
Margett, McClintock, Olberg, Rod Pacheco, Thompson,
Wright
NC:cm 8/9/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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