Top Rental Housing Laws You Should Already be Following

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2018’s proposed multifamily and rental housing legislation left the industry relatively unscathed by the end of the year. Despite a few challenges, things are looking up. As we see what 2019 has in store for new laws affecting rental properties, owners, and property management companies, make sure you are in compliance with these notable 2018 housing laws.

PASSED: Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155)

Commonly referred to as the “Dodd-Frank Reform Bill”, this gigantic piece of legislation not only impacts regulations for banks but includes changes for public housing and the three credit bureaus. These changes consist of physical inspections of all small public housing projects every 3 years (on top of additional regulations if a project is deemed “troubled”) and free credit security freezes following the Equifax data hack.

FUTURE: Eviction Process Changes (AB 2343)

Landlords will now have to wait longer before starting the eviction process. The eviction notice wait time excludes judicial holidays (including Saturday and Sunday). These provisions will become operative on September 1, 2019.

FUTURE: New Apartment Balcony and Stairwell Inspections (SB 721)

Buildings with 3 or more multifamily dwelling units are required to have an inspection of exterior elevated elements and associated waterproofing elements (including decks and balconies) to reveal any conditions that pose an immediate hazard to the safety of the tenants. These inspections must be completed by January 1, 2025, with subsequent inspections required every 6 years (some exceptions available). A copy of the completed inspection report would be required to remain in the owner’s records for 2 inspection cycles.

FUTURE: Automatic Garage Door Openers (SB 969)

After July 1, 2019, property owners will be unable to install automatic garage doors (as a replacement for the property’s current garage doors) without a battery backup feature. This allows the garage doors to operate during electrical outages, which can be crucial during an emergency evacuation. Garage doors not installed in compliance with the law can face a civil penalty of $1,000.

FUTURE: San Francisco BART Housing (AB 2923)

Inconsistent zoning standards (after July 1, 2022) that are within ½ a mile of any existing or planned Bay Area Rapid Transit (or BART) station will change to local zoning. This will allow more affordable residential housing units to be built closer to BART stations.

FUTURE: New Solar Requirements for New Apartments (see news release)

The California Energy Commission has adopted new building standards that would require new homes to have solar photovoltaic systems. Effective January 1st, 2020, apartment buildings 3-stories or less and all single-family homes built after 2020 must include solar panels. Included in the new energy standards are new insulation and air filtration requirements.

FUTURE: Sexual Harassment Training (SB 1343)

The sexual harassment training requirements have been extended to businesses – including those within the multifamily housing industry – with as few as 5 employees (including temporary and seasonal workers). Requirements include at least 2 hours of sexual harassment prevention training for supervisory employees and 1 hour to all workers. All affected employees must have this sexual harassment training by January 1, 2020.

FUTURE: “Just Cause” Eviction Policy in Unincorporated Marin County

The Marin County Board of Supervisors approved of a “just cause” eviction program on December 18, 2018. Theseeviction controls will take effect on January 17, 2019 and will be in place for two years. This new ordinance applies to properties with three or more rental units and will prohibit landlords from evicting tenants if they cannot provide that a specified condition (such as failure to pay rent or nuisance behavior) was met.

PASSED: Evictions due to Unlawful Weapons (AB 2930)

Existing law allows rental properties in the cities of Los Angeles, Long Beach, Oakland and Sacramento to file for an action on an unlawful detainer to abate the nuisance caused by illegal conduct involving unlawful weapons or ammunition. This law was going to sunset on January 1, 2019, but now that AB 2930 has passed, the sunset date has been extended to January 1, 2024 and additional unlawful detainer provisions have been added.

PASSED: Landlord Liabilities for Marijuana Growing (AB 2164)

While this law allows cities to immediately penalize those who have violated local cannabis laws, it also has some provisions relating to rental property owners and managers. Landlords will not be held liable for the violation (and will not face fines) so long as they can show that:

1. A tenant was in possession of the unit when the violation occurred.
2. The owner had no knowledge of the offense.
3. The owner’s lease agreement prohibits the illegal activity.

PASSED: Withholding Transportation Funds until Housing Quota Met (AB 1759)

Each city or county is now required to meet their minimum housing production goal (as is written in their general development plan) in order to be eligible to receive a portion of the Road Maintenance and Rehabilitation Program’s remaining funds.

PASSED: Electric Vehicle Charging Stations (AB 1796)

Tenants within rent-controlled properties are able to install an electric vehicle (EV) charging station so long as certain conditions are met, including the willingness to pay for all the expenses related to the installation and operation of the EV station.

PASSED: Law Enforcement and Emergency Assistance Protections for Tenants and Property Owners (AB 2413)

This protects the tenant’s and property owner’s right to call law enforcement or emergency assistance on behalf of a victim of abuse, crime or an individual emergency that the caller believes needs law enforcement or emergency assistance to prevent or deescalate. Landlords are prohibited from retaliating against victims or their households for contacting law enforcement or emergency assistance (in this context).

Existing law relating to unlawful detainers allows victims of domestic violence, sexual assault, stalking, human trafficking, or elder/dependent adult abuse can attach a documented copy of a restraining, protection order, or report by a peace officer. This law now allows victims to use a qualified 3^rd party statement as well.

PASSED: California Environmental Quality Act Reform (AB 1804 – CEQA)

Some multifamily residential housing projects are now exempt from CEQA regulations. Certain conditions must be met in order to qualify for this exemption.

PASSED: Price Gouging During a State of Emergency (AB 1919)

A person, business, or other entity that increases the monthly rental price of an existing or prospective tenant by more than 10% during a declaration of emergency can now incur a misdemeanor. It is also a misdemeanor to evict a tenant after the proclamation of a state of an emergency for the purpose of renting the property out. A state-mandated local program will be established in the future to monitor and manage this new crime.

Areas with price-gouging protections include:

Please note that these local and state-issued price gouging protections could be extended in the future.

• Lake Mendocino, Napa, Santa Barbra, Shasta, Siskyou and Sonoma Counties: in effect until May 31, 2019
• City of Santa Rosa: in effect until October 9, 2019
• Ventura and Los Angeles Counties: in effect until November 8, 2019
• Butte County: in effect until November 8, 2019

PASSED: Affordable Housing with “Supportive Housing” Developments (AB 2162)

In zones where multifamily and mixed uses are permitted, supporting housing is now permitted. Supporting housing is low income housing that has no limit on the length of stay, and caters to those with disabilities, including mental illness, HIV or AIDS, substance abuse or other chronic health conditions.

PASSED: Density for Low-Income Students (SB 1227)

Perhaps good news for college students, this bill opens the gates for more student housing. Developments can achieve a density bonus if all the units are used by full-time students (enrolled in an accredited university) and if at least 20% of that rental housing is used by low-income students.

PASSED: Homeless Youth Act of 2018 (SB 918)

The Homeless Coordinating Council will now oversee and administer grant programs for homeless young people and families, funded from funds appropriated by the Legislature, federal funds, special fund money, and gifts and donations. No more than 40% of the total funds granted in a year will be used to establish, expand, or operate shelter programs, with the rest dedicated to direct homeless aid.

PASSED: The Orange County Housing Trust (AB 448)

This creates the Orange County Housing Finance Trust for the purpose of funding housing for low income and homeless persons.

PASSED: Third-Party Rent Payments (AB 2219)

Rental property owners who accept rental payments from a third-party provider can now require that that provider sign a document acknowledging that the transaction does not make that 3^rd-party a tenant. Some examples of third-party providers can be social service agencies, nonprofits, family members or caretakers.

PASSED: Temporary Rent Cap in Glendale

Rental property owners who accept rental payments from a third-party provider can now require that that provider sign a document acknowledging that the transaction does not make that 3^rd-party a tenant. Some examples of third-party providers can be social service agencies, nonprofits, family members or caretakers.

PASSED: Minimum Wage Increase in the City of San Diego

The minimum wage for workers within the city of San Diego is now $12. This law went into effect on January 1, 2019

2018’s Failed Bills & Trends

Without a doubt, rent control marked the scariest trend in 2018. While we aren’t out of the woods yet, the rent control bills, ordinances, and propositions didn’t go as far as the industry feared. With notable bills like California’s AB 1506 and Proposition 10 failing, as well as the inactivity of Illinois’ HB 2430, Oregon’s’ HB 2004, and within Washington State, hopefully the worst is behind us.

The emotional support animal debate got even more heated in 2018 as airlines across the nation began to enforce new restrictions and regulations, and this spread into the rental housing industry. Indiana passed SB 240, South Dakota passed SB 119, and Illinois considered their own service animal restrictions with HB 4912.

Alongside rent control and emotional support animal regulations, 2018 was filled with bills targeting enforcing ‘just cause’ evictions, creating immigrant tenant protections, and addressing homeless housing. While it’s hard to say what new rental housing laws will trend next, you can expect rent control and ‘just cause’ evictions will follow us into 2019.

Source: aptmags.com