Also known as the Tenant Protection Act of 2019
Effective August 2024, the rent cap in Glendale will be 8.9%.
California's AB 1482 law, also known as the Tenant Protection Act, has brought significant changes to the rental market, offering increased protections for tenants while outlining specific rights and responsibilities for landlords.
The passage of AB 1482 marks a significant development in California's ongoing efforts to address the state's housing crisis. Housing affordability has become a pressing concern for many residents, as soaring rents have led to widespread financial hardships and increased the risk of displacement.
We will focus on the rent cap section of AB 1482, which is particularly relevant to Glendale, California. Whether you are a landlord or a tenant, understanding the provisions of this law is crucial for navigating the rental landscape in compliance with the regulations.
AB 1482 and Rent Caps
AB 1482 introduces rent caps to prevent excessive rent increases and ensure affordable housing options for tenants.
Rent Cap Limitations: Under AB 1482, landlords in California, are subject to a rent cap that limits the amount they can increase rents annually. The law establishes the rent cap as 5% plus the percentage change in the cost of living, or a maximum of 10% in total, whichever is lower. Landlords cannot raise the rent beyond the specified limits within a 12-month period.
“Percentage change in the cost of living” means the percentage change in the regional Consumer Price Index (CPI) for the region where the residential real property is located. The law uses CPI from April 1 of the prior year to April 1 of the current year. The CPU is published by the United States Bureau of Labor Statistics on a monthly bases. While the calculation of the percentage change in the Consumer Price Index (CPI) is based on a year-to-year comparison from April to April, it is important for landlords to note that the implementation of the new rent increase takes effect in August.
You can find the current CPI at US Bureau of Labor Statistics.
Applicability in Glendale: Glendale, being part of California, follows the guidelines set forth by AB 1482. The rent cap provisions apply to properties that are not otherwise exempt under the law.
The current rent limit/cap in Glendale is 8.8%.
Effective August 2024, the rent cap in Glendale will be 8.9%.
AB 1482 and Glendale's Rental Rights Program work in tandem to establish robust tenant protections. Landlords must be mindful of both sets of regulations when considering rent increases. In cases where a rent increase exceeds 7%, it triggers relocation fees as per the Rental Rights Program. However, it is essential to note that no rent increase can surpass the statewide cap, which currently stands at 8.8% effective from August 2023. Even if landlords have banked or accumulated unused rent increases, they are still bound by the 8.8% limit and cannot exceed it.
Exemptions
While AB 1482's rent cap provisions apply to most rental properties, certain exemptions may exist. These exemptions include:
Affordable housing: Housing that is restricted by deed, regulatory agreements with government agencies, or other recorded documents as affordable housing for individuals and families with very low, low, or moderate income.
Dormitories in educational institutions: Housing in dormitories constructed and maintained by higher education institutions within the state, intended for occupancy by students enrolled in those institutions.
Newly constructed housing: Residential real properties that have received a certificate of occupancy within the previous 15 years.
Separately alienable properties: Single-family homes, condominiums, townhomes with the condition that the owner is not a real estate investment trust, corporation, or limited liability company with corporate members. Tenants must be provided written notice stating that the property is exempt from rent limits and just cause requirements.
Owner-occupied duplexes: A duplex where the owner occupies one of the units as their primary residence at the start of the tenancy, as long as the owner continues to reside there.
It is important to note that these exemptions may be subject to specific conditions and requirements, and they may vary based on local regulations and ordinances.
The information provided on this website is not intended to be legal advice. It is recommended to consult an attorney and conduct thorough research before taking any action related to tenancy matters.