sacramento report

By Monica Williamson

At press time, the 2008 legislative year was ramping up. CAA’s Govern-ment Affairs Committee identified the first of many bills that are directed at the rental housing industry.

Water Billing (AB 1518) CAA Position: Support/Sponsor
CAA is the sponsor of AB 1518 (Correa, D-Anaheim). As introduced, the bill would require the installation of meters or submeters on each new rental unit for which a construction permit has been issued on or after January 1, 2012. The bill would further authorize rental property owners to charge tenants based on the actual volume of water delivered as measured by the water meter or submeter and to charge tenants separately for the costs of water service as determined by a prescribed allocation formula.

Tobacco Smoke (SB 1598) CAA Position: Support/Sponsor
CAA is also sponsoring SB 1598 (Padilla, D-Los Angeles), legislation that addresses the issue of tobacco smoke on rental property. While the bill is currently in a draft format, CAA will work with the author to incorporate language clarifying that landlords are permitted, but not mandated, to establish some residential rental units or an entire residential rental property as tobacco smoke free.

Domestic Violence (AB 2052) CAA Position: Support If Amended
Legislation has been introduced to provide options for victims of domestic violence who live in rental housing. The legislation, AB 2052 (Lieu, D-Torrence), would allow a tenant who has been a victim of domestic violence to terminate the rental agreement when certain conditions are met. The conditions include: (1) the tenant provides the landlord with written proof that the tenant has a valid protective order; (2) the tenant or household member has reported the domestic violence to a qualified third party; and (3) the qualified third party has provided the tenant with written documentation that the tenant is a victim. The written documentation provided by the qualified third party must substantiate that the person is a victim of an act or acts constituting domestic violence.

Ellis Act (SB 1299) CAA Position: Oppose
SB 1299 (Migden, D-San Francisco) would allow a local government to require that a property owner who demolishes a rent controlled unit replace it with another rent controlled unit, either on site or at another location. The purpose of the bill is to ensure no net loss of rent controlled units. It would completely gut the protections the Ellis Act offers to owners in rent control communities.

Carbon Monoxide (SB 1386) CAA Position: Watch
SB 1386 (Lowenthal, D-Long Beach) would require the State Fire Marshal to approve carbon monoxide alarms for use in dwelling units. It would also require that these alarms be installed in a unit containing fossil-fuel burning appliances or fireplaces, or those with an attached garage.

90-Day Notice (AB 2450) CAA Position: Support If Amended
Foreclosures continue to wreak havoc on the California housing market. The issue has touched the rental market, primarily when tenant-occupied single-family homes are foreclosed. Some of the most visible issues in this situation surround how long a tenant has to vacate a foreclosed unit and who must return the security deposit when the defaulting landlord refuses to return it. AB 2450 and AB 2586 have been introduced to address this situation, and more bills are anticipated.

AB 2450 (Davis, D-Los Angeles), although currently intent language only, would state the intent of the Legislature to enact legislation that would require a landlord who acquires title to residential rental property through foreclosure to provide 90 days’ notice to a tenant before the tenant may be removed. Although there are proposals pending at the federal level to impose such a requirement, the longest termination notice California law recognizes is 60 days.

Disclosures & Security Deposits (AB 2586) CAA Position: Support If Amended
This is a comprehensive bill (Torrico, D-Fremont) that attempts to address many facets of the foreclosure process as it relates to tenants. Among other things, it clarifies a bank’s responsibility when terminating a tenancy and returning a security deposit. The bill would also require a foreclosing entity to notify a tenant or occupant of the subject of a possible foreclosure sale. The bill provides specific language to be included in the notice.

As the 2008 legislative sessions kick into high gear, readers are urged to watch this publication and other CAA communications for developments on all the above and other legislation of interest. For a review of all bills and positions taken by CAA, go to our website at www.caanet.org.

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The opinions expressed in this article are those of the authors and do not necessarily reflect the viewpoint of SFAA or SF Apartment Magazine. Monica Williamson is CAA’s vice president of public affairs. Copyright © 2008 by SF Apartment Magazine. All rights reserved.