AB 1482 Rent Cap Law Enforced

The recent settlement announced by Attorney General Rob Bonta serves as a reminder to California landlords about the importance of understanding and complying with the California Tenant Protection Act. This landmark legislation, known as AB 1482, was signed into law in 2019 and aims to provide protections for tenants in the state.

For the most up to date information on rent increases and AB 1482, please click here.

One key aspect of AB 1482 is the cap it imposes on rent increases. Landlords are prohibited from raising rents by more than 5% plus the percentage change in the cost of living (CPI), or 10%, whichever is lower. This measure is designed to prevent excessive rent hikes that could lead to housing instability and affordability challenges for tenants.

Additionally, the law establishes the requirement of a “just cause” for evictions. Landlords must have valid reasons, such as non-payment of rent or breach of contract, to initiate eviction proceedings against their tenants. This provision aims to safeguard tenants from arbitrary and unjust evictions, providing them with more security and stability in their housing arrangements.

The settlement mentioned in the statement follows a thorough investigation conducted by the Attorney General’s office, which lasted for a year and a half. The investigation looked into alleged violations of AB 1482 by a property manager and developer with properties in Silicon Valley. The defendant was accused of significantly exceeding the rent increase limits set by the law, with reported average increases of 151%. Furthermore, the company was also alleged to have wrongfully evicted multiple tenants.

As a result of the settlement, the tenants who were reportedly overcharged are expected to receive refunds totaling over $300,000. This financial restitution serves as a form of redress for the tenants who experienced excessive rent increases, helping to alleviate the financial burden they may have faced due to the unlawful actions of the property manager and developer.

This settlement sends a clear message to landlords across California that the state takes violations of tenant protection laws seriously. It underscores the importance of landlords understanding and adhering to the regulations set forth by AB 1482 to ensure fair and lawful practices in the rental market. By doing so, landlords can contribute to a more stable and equitable housing environment for all Californians.