The 2024 New Year ushered in changes to California’s housing laws that strengthen tenant protections, streamline new construction permitting, and take a social stand. Following is a roundup of some of the new legislation affecting the housing rental markets in California. It’s a good idea to discuss these new laws and how they affect you with a property management specialist.
The biggest news-making change is Assembly Bill 12, which caps the amount of a security deposit to one month. The law goes into effect on July 1. The purpose of the Bill, authored by San Francisco Democrat Matt Haney, is to make housing more affordable. Those opposing the Bill, such as the California Apartment Association, say property owners are at risk for loss if they don’t have the funds to repair damages caused by tenants.
State Senator María Elena Durazo (D-Los Angeles) authored Senate Bill 567, which tightens California’s Tenant Protection Act approved in 2019. Specifically, the new law prohibits legally evicting a tenant, as in “renovictions,” then re-renting the home to a different tenant at a higher rent. SB 567 goes into effect on April 1.
Looking to other countries for solutions to its housing crisis, California will study Social Housing, which is a hybrid of mixed-income housing that is publicly owned, thanks to SB Bill 555 introduced by State Senator Aisha Wahab (D-Hayward). California’s Department of Housing and Community Development will prepare a report and analysis on useable public land, money concerns, and expected bumps in the road. Signed by Governor Newsom in October, the new law requires the Social Housing report and analysis to be completed by December 31, 2026.
Interestingly, Governor Newsom vetoed a similar bill, AB 309, introduced by Assemblymember Alex Lee (D-San Jose), that would have called for the development of Social Housing.
According the nonprofit Disability Rights California, AB 1418 limits local “crime-free” housing programs and nuisance ordinances, which typically include harmful provisions such as requiring landlords to evict tenants for alleged criminal activity. These housing ordinances are intentionally discriminatory against tenants with disabilities and tenants of color, and in some cases allow for evictions if a tenant or a tenant’s family has had an interaction with law enforcement. Assemblymember Tina McKinnor (D-Inglewood) introduced the bill.
AB 1449, introduced by Assemblymember David Alverez (D-Chula Vista), exempts housing projects that are 100% affordable from the California Environmental Quality Act. The purpose of the new law is to streamline the approval of housing projects, which can take years if CEQA guidelines are to be followed. The law sunsets in January 2023.
The above are state laws. Be sure to check with your local jurisdiction for any new legislation affecting rental properties. Place Tenants can help navigate the legalities. Call 800-886-1193 or email [email protected].
