Homelessness Prevention Act – What is SB 567?

Updated 10/24/24

In recent years, San Francisco and other cities across California have faced a growing housing crisis. With rents skyrocketing and eviction protections not reaching enough tenants, homelessness has become an alarming issue. The Homelessness Prevention Act, or SB 567, is the latest legislative effort aimed at addressing these challenges by expanding eviction protections and ensuring housing security for more Californians. This article will dive into SB 567, discussing its goals, how it builds on previous laws like the Tenant Protection Act, and what it means for both landlords and renters in San Francisco.

What is SB 567?

The Homelessness Prevention Act, officially known as Senate Bill 567, was introduced to close gaps in the existing Tenant Protection Act (AB 1482), which was enacted in 2019. While AB 1482 placed limitations on rent increases and provided eviction protections for certain tenants, many renters still found themselves vulnerable to loopholes, especially those facing “no-fault” evictions. SB 567 strengthens these protections by targeting the root causes of homelessness: evictions due to unfair rent hikes and legal loopholes that landlords could exploit to remove tenants even when they complied with their lease agreements.

Closing Loopholes in Eviction Protections

One of the main focuses of SB 567 is closing the loopholes that have left many renters at risk of losing their homes. Under AB 1482, landlords were allowed to evict tenants for “no-fault” reasons, such as taking the property off the rental market or moving in a family member. However, these no-fault evictions have been abused, with some landlords using them as a way to sidestep rent control regulations and raise rents significantly for new tenants.

SB 567 eliminates many of these loopholes, making it harder for landlords to use no-fault evictions as a tool for displacing tenants. This aspect of the bill ensures that tenants who have consistently paid their rent and followed the terms of their lease are not unfairly evicted. By preventing these exploitative practices, the homelessness prevention act directly addresses one of the leading causes of displacement and homelessness in California.

Expanded Protections for Vulnerable Tenants

Another significant change under SB 567 is the expansion of protections to a broader range of tenants. Previously, certain categories of renters, such as those living in single-family homes owned by small landlords or those in newer buildings, were not covered by AB 1482. This left millions of California renters without adequate protection from unreasonable rent hikes or unjust evictions.

SB 567 extends eviction protections to include more renters, particularly those who were previously excluded from the law. By widening the safety net, the Homelessness Prevention Act seeks to reduce the risk of displacement for a larger portion of the population, ultimately helping to curb the state’s rising homelessness crisis. This measure is particularly critical in high-cost areas like San Francisco, where rents have reached unsustainable levels for many working families.

Reasonable Limits on Rent Increases

One of the most significant provisions of SB 567 involves placing stricter limits on how much landlords can increase rent. Under AB 1482, landlords were allowed to raise rent by up to 5% annually, plus the local rate of inflation, with a total cap of 10%. However, as inflation surged in recent years, this cap became untenable for many renters. Even small increases in rent can lead to financial hardship, and for low-income families, a rent increase can mean the difference between staying housed and falling into homelessness.

SB 567 aims to impose more rational limits on rent increases, taking into account the financial realities faced by renters in today’s economic climate. By lowering the cap on allowable rent hikes, the homelessness prevention act seeks to make housing more affordable for low- and middle-income households and prevent landlords from pricing tenants out of their homes. This will be particularly beneficial in expensive housing markets like San Francisco, where rent increases have far outpaced income growth for many residents.

Oversight and Enforcement

A critical aspect of SB 567 is the establishment of new oversight mechanisms to ensure that landlords comply with the law. In the past, one of the challenges with AB 1482 was the lack of strong enforcement, which allowed some landlords to exploit the system without facing significant consequences. The Homelessness Prevention Act addresses this by creating channels for more robust oversight and enforcement, ensuring that tenants are aware of their rights and that landlords are held accountable for violations.

For landlords, this means being more mindful of tenant rights and ensuring that any rent increases or evictions are done in full compliance with the law. While SB 567 offers stronger protections for tenants, it also clarifies the responsibilities of property owners, ensuring that they can still manage their properties while respecting the rights of their tenants.

The Impact on San Francisco Renters and Landlords

In a city like San Francisco, where housing is in high demand and rents are among the highest in the nation, the Homelessness Prevention Act could be a game-changer. For renters, it means more stability and security in knowing that they won’t be unfairly evicted or priced out of their homes. For landlords, especially smaller property owners, it means navigating a more regulated landscape but also contributing to the solution of preventing homelessness in the city.

As SB 567 comes into effect, both renters and landlords will need to stay informed about the new rules and protections. Landlords should ensure they understand the limitations on rent increases and the stricter criteria for evictions, while renters should be aware of their expanded rights under the law.

The Homelessness Prevention Act, or SB 567, marks a critical step in addressing the housing crisis in California, particularly in high-cost areas like San Francisco. By closing loopholes in eviction protections, expanding the range of tenants covered, capping rent increases, and improving oversight, SB 567 offers stronger safeguards for renters and aims to prevent homelessness. As the law takes effect, both landlords and tenants should be proactive in understanding its implications, ensuring that housing remains affordable and accessible for all.