| AUGUST 2019
California landlords must make a number of disclosures to tenants.
In leases or rental agreements signed after July 1, 2018, landlord must disclose, in at least eight-point type, that the property is in a special flood hazard area or an area of potential flooding if the landlord has actual knowledge of this fact. Actual knowledge includes receipt from a public agency so identifying the property; the fact that the owner carries flood insurance; or that the property is in an area in which the owner’s mortgage holder requires the owner to carry flood insurance. Disclosure must advise tenant that additional information can be found at the Office of Emergency Services’ website, and must include the Internet address for the MYHazards tool maintained by the Office. Disclosure must advise tenant that owner’s insurance will not cover loss to tenant’s property, and must recommend that tenant consider purchasing renter’s insurance that will cover loss due to fire, flood, or other risk of loss. Disclosure must note that the owner is not required to provide additional information. (Cal. Govt. Code § 8589.45.)
Bed bug information:
Before signing a lease or rental agreement, landlords must give potential tenants information about bed bugs, including information about their behavior and biology, the importance of cooperation for prevention and treatment, and the importance of prompt written reporting of suspected infestations to the landlord. (Cal. Civ. Code § 1954.603.)
|JULY 2019 REVAMPED RENTERS BILL CLEARS SENATE JUDICIARY COMMITTEE
Despite strong opposition from the California Apartment Association, the California Chamber of Commerce and others, a statewide rent control bill on Wednesday night passed off the state Assembly floor.CAA remains steadfastly opposed to the bill, AB 1482 by Assemblyman David Chiu, D-San Francisco. The legislation now awaits committee hearings in the Senate.Early Wednesday evening, AB 1482 appeared to be defeated for the year, being 7-8 votes short of the 41 votes needed for passage. Chiu, however, agreed to several amendments to his proposal, which led the California Association of Realtors to lift its opposition and take a neutral position to the legislation.Chiu was then able to secure the needed votes to advance his proposal, which passed with 43 yes votes, 31 no votes and six abstentions.
In recent weeks, CAA has spearheaded a grassroots campaign to stop AB 1482. Those efforts culminated Wednesday during the association’s Legislative Conference in Sacramento, during which more than 400 rental housing owners and managers walked to the Capitol to ask lawmakers to reject the rent control proposal. CAA has also mobilized members to call Assembly members in their districts and urge no votes on the bill.
Some highlights of the amendments that Chiu has agreed to take relative to AB 1482:
These changes do not remove CAA’s objections to the legislation.
Additionally, including all buildings that are 10 years of age or older in the rent cap would result in a significant reduction, if not elimination, of new rental housing development projects. It is anticipated that with only a 10-year horizon, investors and lenders will opt to place capital in other ventures.
Moreover, the bill still does not address the crux of California’s housing crisis, which is a housing shortfall. California needs to build more housing as quickly as possible, and a statewide rent cap creates a disincentive for investors to build new housing or to renovate existing housing.
AB 1482 does not include means testing, so the state’s wealthiest residents will be eligible for a price ceiling on rentals, while renters most in need will get no assurances of assistance.
“It defies logic that the state Legislature continues to advance rent cap legislation, which will worsen California’s housing shortage, while rejecting legislation that would actually promote new homes, like SB 50, which would prohibit bans on apartment construction near jobs centers and public transportation,” said Tom Bannon, CAA’s chief executive officer. “This push for statewide rent control also comes just months after voters resoundingly rejected Proposition 10, the statewide rent control measure on November’s ballot.
“It’s time we work together to advance policies that will add housing that working families can afford instead of blanket policies that don’t address the real problem — a lack of supply
JULY 2019 REVAMPED RENTERS BILL CLEARS SENATE JUDICIARY COMMITTEE