Long Beach, California
October 16, 2008
7:00am – 9:00am

Presiding:
Kevin Brown, Chair
Ruth Hayles, Vice Chair
Frank Nelson, Vice Chair
Jeannette Way, Committee Liaison

C.A.R. Staff:
Dave Milton

I. Opening Comments

II. Introduction of 2009 Committee Leadership
Chair- Don Readinger
Vice Chair- Gwynne Hodge
Vice Chair- Tica O’Neil
Liaison- Terry Wunderlich

III. State Legislation

A. C.A.R. – Sponsored Bill

AB 2363 (Ma) Megan’s Law- “Just Cause Evictions” under Megan’s Law- C.A.R. introduced this legislation to require local jurisdictions with a “just cause eviction” ordinance to permit landlords to terminate a tenancy of a registered sex offender if necessary to protect a person at risk, as is permitted in existing state law. Facing aggressive opposition in Assembly Judiciary Committee from civil rights groups, C.A.R. chose to amend AB 2363 to require the Sex Offender Management Board to conduct a study on the availability of rental housing for sex offenders and to analyze what impact making registration as a sex offender a basis upon which to terminate a tenancy would have on public safety.

Status - Died in Senate Appropriations Committee

B. 2008 Bills of Interest

AB 512 (Lieber) Rental Agreements - Existing law requires landlords and property managers to provide translated copies of rental agreements and leases to tenants if negotiations were conducted in Spanish, Chinese, Tagalog, Vietnamese, or Korean. This bill would have required anyone that negotiates designated types of consumer contracts or agreements, in any languages other than English, to provide a translation of that contract to the buyer or seller in their primary language. The measure would have applied to all rental agreements and leases. C.A.R. opposed the bill because expanding this requirement to all languages would have placed an undue burden on landlords and property managers in California, where there are hundreds of languages and dialects spoken. The author amended AB 512 to exempt rental agreements and leases from the scope of the bill. As amended, the bill would have compelled residential mortgage lenders to translate certain contracts negotiated in one of the five languages mentioned above. The bill would have also imposed civil penalties against lenders who failed to deliver the translation.

Position: Not Favor
Status: Died in the Senate Banking, Finance and Insurance Committee

AB 725 (Lieber) Universal Residential Rental Application - As introduced, AB 725 would have required that the Department of Housing and Community Development (HCD) develop a universal rental application that would have been used by all rental housing providers receiving federal or state subsidies. C.A.R. obtained amendments that would have required HCD to include material from C.A.R.’s Application for Rent/Screening Fee standard form in the universal rental application that was developed. In its enrolled version, AB 725 instead requires HCD to convene a working group to draft a uniform subsidized affordable housing rental application on or before April 1, 2009. C.A.R. is included as one of the mandated working group participants. If the working group succeeds in developing a draft uniform rental application, it must be reviewed by several other state agencies before final approval is granted. With these amendments, C.A.R. removed its support and moved to a neutral position on the bill.

Position: Watch as Amended
Status: Enrolled to the Governor

AB 2052 (Lieu) Termination of Tenancy for Domestic Violence - AB 2052, as introduced, empowered a tenant or household member who was a victim of domestic violence, sexual assault, or stalking to terminate tenancy and be discharged from payment of rent if they provide the landlord with written proof of a valid protective order or proof that they have reported the event to a “qualified third party.” Amendments eliminated the provision that requires return of the security deposit even if the unit is not vacated by all parties, and added a provision that requires the payment of rent for 30 days from the notice to quit the tenancy. The reference to a “qualified third party” was removed and replaced with the requirement that the victim provide a restraining order or a copy of a police report relating to the domestic violence, sexual assault or stalking incident. C.A.R. opposed this bill until amendments were inserted that allow the landlord to terminate the tenancy of the perpetrator who has engaged in domestic violence, sexual assault or stalking, if the perpetrator resides in the same premises as the victim, on the basis that their behavior constituted a nuisance. With these amendments, C.A.R. removed its opposition.

Position: Watch as Amended
Status: Enrolled to the Governor

AB 2586 (Torrico) Residential Tenancies – As introduced, AB 2586 would, for rental properties facing possible foreclosure, have allowed tenants to serve landlords with a 3-day notice that terminates the tenancy, beginning six months from the date of the recording of a notice of sale on the property. Lenders would have been required to provide tenants with a lengthy notice in six languages, while tenants would be permitted to deduct the amount for their utility bill from their rent without providing proof of payment to the landlord. This bill would have created a significant burden on multifamily property owners and expedited foreclosures on buildings in default should tenants vacate the property en mass or deduct large utility payments from the rent, leaving the landlord with no resources to bring the mortgage up to date. Due to C.A.R.’s combined opposition with other property management associations, AB 2586 was amended to only apply to “1-4” housing and permits foreclosing lenders to provide tenants with a 60 day notice of termination if the foreclosing lender decides a termination of tenancy is necessary. C.A.R. removed its opposition when the bill was also amended to remove all mandated tenant notices.

Position: Watch as Amended
Status: Enrolled to the Governor


SB 1299 (Migden) Repeal of the Ellis Act – The Ellis Act defines the procedure for property owners to exit the rental housing business and permits tenant evictions when the owner demolishes or converts the building to another use. As introduced, SB 1299 proposed to grant local governments the authority to require demolished rent controlled units be replaced under the same rental restrictions as the demolished units. C.A.R. joined a coalition of property management groups to oppose SB 1299 because it would have eviscerated the Ellis Act and the protections it provides to rental housing property owners who are unable to maintain their properties. As introduced, SB 1299 would have created a disincentive to the ownership and investment in rental housing and effectively guaranteed that no new rental housing would be constructed in rent controlled areas. The bill was “gutted” in the Senate Judiciary Committee at the beginning of May to become a “study” bill. With these amendments, C.A.R. removed its opposition.

Position: Watch as Amended
Status: Died in the Assembly Housing and Community Development Committee

SB 1598 (Padilla) Landlord Authority to Restrict Smoking on Rental Properties - SB 1598 proposed to permit landlords to impose a ban on cigarette and tobacco smoking on residential rental property, including the interior of the rental unit. The bill would have required every lease or rental agreement entered into on or after January 1, 2009 to specify in the agreement as to the areas on the property where smoking is prohibited. C.A.R. opposed SB 1598 until it was amended to remove any implication that a smoker’s tenancy could not be terminated during a 12 month “safe-harbor” period.

Position: Favor
Status: Died in the Assembly Judiciary Committee


IV. Medicinal Marijuana Users/Distributors in Rental Housing – An Update
(See PDF Attachment #1 on the Cover Memo - Reproduced with permission of the California Apartment Association)


V. DRE-Approved Property Management Continuing Education Courses- An Update and Discussion (See PDF Attachment #2 on the Cover Memo)


VI. Other


VII. Adjournment





Attachment