AB 1482 New rental laws and the California & San Francisco Allowable Rent Increase Calculator

AB 1482 New rental laws and the California & San Francisco Allowable Rent Increase Calculator

AB 1482 How to Calculate

December 13, 2019: A great deal of debate is now occurring   regarding the specific language in AB 1482.  The legislation  states the CPI should be taken from the “region” where the property is located. If this term is taken literally, then California is within the “Western Region” as published by the United States Bureau of Labor Statistics. The region  is comprised of 8 western states plus Guam.  As ReLISTO has been in contact with Mr Chiu’s office its clear this is not what he intended when writing the law and most legal experts believe the law will be modified/correct in 2020. Until then, these same experts are recommending  to limit your increase to 7.9% (5% plus 2.9% Western Region CPI)  until the law is indeed modified.

See full article  from the AOA regarding this matter and specific advice from legal experts

October 9th, 2019:  With the signing of AB-1482  Tenant Protection Act of 2019,  many California rental properties are now subject to rent control.  In advance of the State developing an official guide or rent increase table for landlords and tenants, ReLISTO has put together the following chart to give preliminary guidance, based on county,  on what the maximum allowable  rent may be.  Any rent increase since March 2019 may not exceed the Max Allowable Rent Increase rate as seen in the table below. If rent has been increased over this amount since March 15, 2019, an adjustment must be made  January 1, 2020

The table below lists the maximum allowable rent increase rates* effective January 1, 2020 for all California counties. It takes into consideration the local Consumer Price Index (CPI) for  each county which is then adds this  to  5% as allowed by AB 1482.   This rule applies to all rent increases imposed after March 15th, 2019.

 

AB 1482 Table of Maximum Allowable Rents for California

Be advised this table reflects the maximum increase using CPI data for each. Many legal experts are now recommending  the maximum rent be 7.9%

County % Increase CPI Base % Max Rent Increase Rate
Alameda 4.01 5 9.01%
Alpine 3.34 5 8.34%
Amador 3.34 5 8.34%
Butte 3.34 5 8.34%
Calaveras 3.34 5 8.34%
Colusa 3.34 5 8.34%
Contra Costa 4.01 5 9.01%
Del Norte 3.34 5 8.34%
El Dorado 3.34 5 8.34%
Fresno 3.34 5 8.34%
Glenn 3.34 5 8.34%
Humboldt 3.34 5 8.34%
Imperial 3.34 5 8.34%
Inyo 3.34 5 8.34%
Kern 3.34 5 8.34%
Kings 3.34 5 8.34%
Lake 3.34 5 8.34%
Lassen 3.34 5 8.34%
Los Angeles 3.34 5 8.34%
Madera 3.34 5 8.34%
Marin 4.01 5 9.01%
Mariposa 3.34 5 8.34%
Mendocino 3.34 5 8.34%
Merced 3.34 5 8.34%
Modoc 3.34 5 8.34%
Mono 3.34 5 8.34%
Monterey 3.34 5 8.34%
Napa 3.34 5 8.34%
Nevada 3.34 5 8.34%
Orange 3.34 5 8.34%
Placer 3.34 5 8.34%
Plumas 3.34 5 8.34%
Riverside** 2.8 5 7.80%
Sacramento 3.34 5 8.34%
San Benito 3.34 5 8.34%
San Bernardino** 2.8 5 7.80%
San Diego** 2.21 5 7.21%
San Francisco 4.01 5 9.01%
San Joaquin 3.34 5 8.34%
San Luis Obispo 3.34 5 8.34%
San Mateo 4.01 5 9.01%
Santa Barbara 3.34 5 8.34%
Santa Clara 3.34 5 8.34%
Santa Cruz 3.34 5 8.34%
Shasta 3.34 5 8.34%
Sierra 3.34 5 8.34%
Siskiyou 3.34 5 8.34%
Solano 3.34 5 8.34%
Sonoma 3.34 5 8.34%
Stanislaus 3.34 5 8.34%
Sutter 3.34 5 8.34%
Tehama 3.34 5 8.34%
Trinity 3.34 5 8.34%
Tulare 3.34 5 8.34%
Tuolumne 3.34 5 8.34%
Ventura 3.34 5 8.34%
Yolo 3.34 5 8.34%
Yuba 3.34 5 8.34%

This table is for informational purposes only and should not be taken as legal advice. 

*The data shown has been calculated using the percent change in CPI from April 2018 to April 2019 as published by the Bureau of Labor Statistics and the California Department of Industry Relations

**March data used when April data is unavailable

 

October 8th, 2019: Governor Newsom signs AB 1482 into law.

October 8th, 2019: Governor Newsom is scheduled to sign AB 1482 today, October 8th, 2019 in Oakland.  The ReLISTO rental calculator will be adjusted to meet the demands of the law and be fully implemented when the bill goes into effect January, 2020.  Please be aware that although the bill goes into effect in January, its retroactive to March 2019.

October 4th, 2019:  Governor Newsom is set to sign AB 1482 into law over the next few days.  ReLISTO will be placing a banner on it calculator to ensure all users are made aware.

September 20th, 2019: California Statewide rent control may be coming.  If signed by California Governor Gavin Newsom, AB-1482  The Tenant Protection Act of 2019 will restrict rent increases to a maximum of 5% plus the  regional cost of living.  Originally we opposed the law since we prefer to allow the market to be free of regulation, but if a law had to be passed, this is a fair and balanced one.

To assist both landlords and residents,  ReLISTO will be modifying our current California calculator to accommodate this new law. In the interim here are some key elements of the law that landlords need to be aware of:

    1. January 1, 2020 Rent Modification. If you raised rent on or after March 2019, you may need to make an adjustment in the amount due for January’s rent.
    2. Return of Overpaid Rent: If rent was raised since March 2019 for an amount greater than allowed, the owner is not obligated to return the overage.
    3. Property Types: Law is focused on multi-family units. Condos and detached homes unless owned by a corporation appear exempt.
    4. San Francisco Owners Banked Increases- Are you a SF landlord who has been banking their rent increases? If you are, then as of January 2020, you can only use up to the yearly maximum as restricted by the State.  In the table below, we have listed out the maximum increases currently  allowed for San Francisco.  Landlords had the option of not taking these increases and banking them till later. For example, if the last increase was in 2013, then the landlord would be allowed in 2019/2020 to ask for a 10.9% increase.  Under this new law, this would no longer be allowed.
  • March 1, 2019–February 29, 2020 2.6%
  • March 1, 2018 –February 28, 2019 1.6%
  • March 1, 2017 –February 28, 2018 2.2%
  • March 1, 2016 –February 28, 2017 1.6%
  • March 1, 2015 –February 29, 2016 1.9%
  • March 1, 2014 –February 28, 2015 1.0%

Total Banked 10.9%

 

We still do not know everything about the law or how/who will be administering it. ReLISTO is in contact with key state figures to make sure we have a complete understanding as we build the next version of the allowable rent increase calculator for California. We will be updating this blog post as things progress.

 

 

 

 

 

 

 

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