June 4, 2009
Hyatt Regency Hotel
Sacramento, California
7:00am – 9:00am

Presiding:
Don Readinger, Chair
Gwynne Hodge, Vice Chair
Tica O'Neill, Vice Chair
Terry Wunderlich, Committee Liaison

C.A.R. Staff:
Dave Milton

I. Opening Comments

II. State Legislation of Interest

Foreclosure and Rental Property
AB 331 (Hall) Disclosure of Foreclosure Status of Rental Property- The California Apartment Association (CAA) is sponsoring AB 331. It requires property owners to provide specific information to tenants of single family residential properties when a Notice of Default is recorded against the rental property in which they intend to reside.  CAA cites as the basis for this legislation the fact that some tenants have entered into a new rental agreement for a single family home only to discover shortly thereafter that the house may soon be foreclosed upon.  The receipt of such information prior to executing a rental agreement will permit the perspective tenant to make as informed a decision as possible as to whether he or she wishes to rent this unit.
Position: Support     Status: Assembly Judiciary Committee

AB 603 (Price) Statewide Just Cause for Eviction in Foreclosure Situations- This bill, sponsored by California ACORN (Association of Community Organizations for Reform Now), seeks to ensure that tenants living in a foreclosed rental property will not be evicted by the acquiring owner without cause for a period of one year from the time ownership was acquired through the foreclosure sale.  Essentially, this bill is creating a state-wide system of "Just Cause" eviction criteria for rental properties going through foreclosure, as an owner of a qualified rental unit would be restricted to evicting a tenant for only the stipulated "good cause" reasons, such as failure to pay rent. In all other circumstances, tenants would be permitted to remain in their home for a temporary transition period up to one year. 
Position: Oppose     Status: Assembly Judiciary Committee

SB 120 (Lowenthal) Tenant Protections after a Foreclosure Sale- Sponsored by the Western Center on Law and Poverty, this bill extends certain tenant protections to 
apply after a foreclosure sale. It is a re-introduction of 2008's AB 2586, which was vetoed by the Governor. SB 120 would extend certain tenant protections to apply after a foreclosure sale.  It would apply existing law's restrictions prohibiting a landlord from terminating a tenant's utility service or changing the locks to force an eviction to a successor in interest who acquired the property through foreclosure. It would also make clear that  the current law's protections concerning the collection and return of security deposits extends to lenders or other successors in interest after a foreclosure sale, and creates a rebuttable presumption that the amount of the deposit was equal to one month's rent. 
Position: Watch     Status: Assembly Judiciary Committee

Required Notices for Terminating Tenancies
AB 473 (Blumenfield) Recycling Services Requirements for Multi-Family Dwellings- This bill is sponsored by Californians Against Waste. It requires, on and after July 1, 2010, that an owner of a multifamily dwelling (5 or more units) provide recycling services that are appropriate for the multifamily dwelling; are in accordance with the local agency's source reduction and recycling element; comply with existing requirements for adequate areas to collect and load recyclables; and comply with any state or local requirements governing solid waste agreements and services. According to the sponsor, multifamily dwellings account for 26% of the state's residential waste stream and only 15% of that waste is currently diverted. 
Position: Watch    Status: Assembly Floor

Swimming Pool Safety
AB 1020 (Emmerson) Anti-Entrapment Devices Required in Swimming Pools- The federal "Pool & Spa Safety Act," (ACT) enacted in 2007 and effective at the end of 2008, requires all "public pools and spas" to be equipped with anti-entrapment drain devices. The definition of "public pools and spas" includes pools open to the public as well as pools in apartment complexes, residential real estate developments, and multi-family apartment buildings. AB 1020, sponsored by the State Department of Health, proposes to enact the substantive portions of the federal ACT in state law, in order to allow these requirements to be enforced by state and local agencies. Specifically, this bill would require a "public swimming pool" constructed or renovated after December 18, 2009 to be equipped with an anti-entrapment device or system that meets federal safety requirements. Any pool constructed prior to December 18, 2009 must install an anti-entrapment device by December 19, 2011. C.A.R. supports AB 1020 because it seeks to make state and federal law consistent.
Position: Support   Status: Assembly Health Committee

Unlawful Detainer
AB 891 (Berryhill) Gang Nuisance and Abatement Act- This bill proposes to authorize the district attorney (DA) or city attorney to bring an abatement action against a property owner whose property is being used by a criminal street gang as a congregation point. Should a property owner not abate the nuisance, the DA or city attorney would be permitted to impose a maximum fine of $1,000 for the first violation, $2,500 for the second violation, and could force the property owner to forfeit the property for the third violation. The proceeds from fines and property forfeiture would used to fund gang prevention activities. C.A.R. opposes AB 891 because it unreasonably places the burden to prevent gang activity on the property manager. AB 891 has been made a two-year bill by the author in order to further study this issue and will not be heard again until next year.
Position: Oppose Unless Amended    Status: Assembly Public Safety Committee

AB 1171 (Ammiano) "Attack" on Ellis Act- The "Ellis Act" requires rental property owners in rent controlled jurisdictions to provide tenants with a 120-day notice of termination of tenancy when removing residential rental property from the rental market. Tenants who are either disabled or are senior citizens (62 years of age or older) are entitled to a notice of one year. AB 1171 was amended in early April to require landlords electing to "go out of business" to give all tenants a one-year notice of termination of tenancy if even one disabled or senior citizen resides in the rental property's units. C.A.R. strongly opposes AB 1171 because it discourages investment in rental housing, places a substantial limitation on a property owner’s right to legitimately take a property off the rental market, negatively affects property values, and could cause substantial financial losses to rental property owners unable to get out of the business. In early May, the author decided not to pursue AB 1171 in 2009, making AB 1171 a two-year bill. 
Position: Oppose   Status: Assembly Housing and Community Development Committee

AB 1263 (Strickland) Streamlining of Unlawful Detainer Proceedings- This bill proposes to revise the process for serving an unlawful detainer notice. Current law requires that service of an unlawful detainer be made at the tenant's place of residence or usual place of business. AB 1263 would delete that provision, and instead require that service be made by delivering a copy of the notice to the tenant at the property, or, if the tenant is absent from the property, a copy of the notice may be mailed to the tenant. The bill would also permit the notice to be served by both affixing a copy of the notice in a conspicuous place on the property and mailing a copy to the tenant. C.A.R. supports AB 1263 because it makes the unlawful detainer process more efficient and procedurally effective.
Position: Support     Status: Assembly Judiciary Committee

SB 782 (Yee) Restrictions on Unlawful Detainer Actions Involving Domestic Violence- The City and County of San Francisco recently enacted an ordinance to provide protections for tenants who are victims of domestic violence or sexual assault or stalking, including protection from evictions based on the actions of abusers or stalkers. SB 782 was amended to emulate this ordinance in State law. The Author intends to build upon protections for victims of domestic violence established last year by AB 2052 which authorized a tenant to notify the landlord in writing that he or she was a victim of an act of domestic violence, sexual assault, or stalking and, after meeting specified pre-conditions, could terminate the tenancy. As amended, SB 782 provides that the conduct of an abuser may be a defense to an eviction of the victim tenant when the notice to vacate is substantially based on the abuser’s actions. SB 782 also provides that the court may terminate the tenancy of a tenant who acted as the dominant aggressor in the act(s) of domestic violence, while allowing the victim to remain in tenancy.
Position: Not Favor     Status: Senate Floor

General Landlord/Tenant Bills
AB 530 (Krekorian)Controlled Substances and Firearms on Rental Property- This bill seeks to establish a new sunset date of  January 1, 2014 (currently the date is 1-1-10), for two pilot programs that authorize city attorneys and prosecutors in participating cities to bring an eviction action on behalf of the government against a tenant for allegedly committing nuisance violations arising from unlawful possession or sale of firearms or ammunition or unlawful possession of controlled substances. The authorized jurisdictions are the cities of Los Angeles, Long Beach, San Diego, Oakland, and Sacramento. In addition, this bill improves the wording of the initial notice served upon tenants and requires that the notices be provided to tenants in English and five other languages.
Position: Favor     Status: Assembly Floor

AB 1170 (Calderon, C.) Megan's Law Disclosure Booklet- This bill, sponsored by the Apartment Association of California Southern Cities, requires the Department of Justice (DOJ), in consultation with the Department of Consumer Affairs, as well as public and private organizations, to develop, publish and make available to the public a consumer information booklet regarding federal and state laws relating to sex offender registration as it relates to the lease or rental of real property.  The booklet would be required to include general information concerning federal and state laws relating to persons required to register as sex offenders; information regarding specified statutory disclosure duties contained in the Civil Code regarding prospective residents and use of information on DOJ's Internet Web site; and identification of constitutional, statutory, and decisional law applicable to this section.

April amendments to the bill eliminated the "liability shield" landlords would have if the booklet is disseminated as recommended in the bill. Until that "shield" is restored, C.A.R. will oppose AB 1171.
Position: Oppose Unless Amended   Status: Assembly Appropriations Committee Suspense File

SB 290 (Leno) Repeal of Sunset on 60-Day Notice for Terminating 1-year+ Tenancies- Sponsored by the Western Center on Law and Poverty, this bill repeals the sunset date for the law requiring the owner of a residential rental property to give at least 60-days notice prior to terminating the periodic tenancy of a tenant who has lived in the unit for one year or more.  Existing law, until January 1, 2010, requires an owner of a residential rental to provide this 60 
days' notice. If any tenant or resident has resided in the unit for less than one year, then an owner may give a 30-day notice. C.A.R. is opposed to SB 290 unless it is amended to give landlords the same termination of tenancy notice rights as tenants, just as tenancies for less than I year currently have (30 days). The Apartment Association of Greater Los Angeles and the Santa Barbara Apartment Association are opposed to SB 290 unless it is amended with a new 3-year sunset date. All other landlord groups, including the California Apartment Association, are neutral on SB 290.
Position: Oppose Unless Amended   Status: Assembly Judiciary Committee

SB 542 (Wiggins) Energy Efficiency Programs for Multiunit Residential Rental Properties- This bill requires the California Public Utilities Commission (CPUC), by July 1, 2010, to develop and implement a strategy to expand the participation rates of multiunit residential and commercial rental properties in utility energy efficiency and solar energy programs, and to  report to the Legislature on that strategy.  The strategy must not result in any additional ratepayer surcharges and be funded through existing programs.
Position: Favor      Status: Senate Appropriations Committee

III. Property Management Forms Working Group- A Report (Tica O'Neill, Chair)*

IV. Property Management Survey Results (Tica O'Neill)**

V. New Form for HOA Management; a Discussion (Don Readinger)

VI. The Current Rental Application Process; New Federal Credit Reporting Laws; Identity Theft Guidelines: Q & A Needed?- A Discussion (Gwynne Hodge)

VII. Other

VIII. Adjournment

* Recommendations of the Forms Working Group to the Property Management Committee are attached.
** Survey Results Summary is attached.