Hollywood California AB 1482 Exemptions on Rent Control

What are the rent control exemptions?

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California Rent Control AB 1482 Exemptions

  1. New Construction – housing that was issued a certificate of occupancy with the previous 15 years.
    • Understand this is a rolling date. So once the property has passed the 15 years, e.g. on the 16th year, AB 1482 Rent Control will apply to the property.
    • NOTE: residences with ADUs (Accessory Dwelling Units) may not be exempt depending on certificate of occupancy and/or other factors. For example, the initial single family residence may fall under rent control, but the new ADU will be exempt.
    • Some of the housing previously exempt under Costa Hawkins will now be subject to California’s rent control provisions.
  2. Owner-Occupied Duplex – where one of the units is the owner’s primary residence at the beginning or prior to the tenants’ occupancy and the owner continues to live on the property.
  3. Single-family homes, town-homes and condominiums – if the owner is NOT a real estate investment trust (REIT), a corporation, or a limited liability company in which at least one member is a corporation.
    • NOTE: single family residences with ADUs may not be exempt depending on when the tenant occupies the unit and/or other factors.
    • TIP: consider moving single family residences into a family trust or LLC (Limited Liability Company) and discuss this with your attorney and tax representative.
  4. More restrictive rent control ordinances – for example rent control in specific cities that are more strict and/or in place prior to AB 1482
  5. Affordable Housing, Section 8, or other government agency restricted housing agreements
  6. Owner-Occupied housing sharing with the tenant – accommodations in which the tenant shares a bathroom or kitchen facilities with the owner who maintains principal residence with the residential real property, for example renting out a bedroom in a home.
  7. Dormitories – housing for students attending an institution for higher education

NOTE: Specific terminology will be needed in Rental Agreements effective July 2020. Subscribe to our blog for more information.

For more tips or property management information, feel free to contact us at Appreciating Real Estate with any questions at no obligation. (714) 657-3853 or click here for an appointment.

This content is general information intended as a public resource and not guaranteed to be correct, up-to-date or complete. CREDITS: Dennis P. Block & Associates presentation and CA Residential Rental Housing Association

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