California Rent Control AB 1482 Exemptions
- 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.
- 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.
- 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.
- More restrictive rent control ordinances – for example rent control in specific cities that are more strict and/or in place prior to AB 1482
- Affordable Housing, Section 8, or other government agency restricted housing agreements
- 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.
- 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.
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