AB 1482: The California Tenant Protection Act of 2019

AB 1482 provides statewide rent increase limitations and just cause for eviction protections in California.

The current applicable CPI increase for our jurisdiction (that is, from August 1, 2024 to July 31, 2025), is 3.8%. Thus, the maximum annual increase for units subject to the Tenant Protection Act of 2019 (AB1482) limitations is currently 8.8% (3.8% + 5%). If the increase is effective on or after August 1, 2025, a different CPI increase will apply. If you are a member of California Apartment Association, you can calculate the maximum allowable contract rent increase here: https://caanet.org/topics/ab-1482/.

This information covers aspects of AB 1482 related to rent increase limitations but does not cover every aspect and is not a substitute for reading the law itself, which can be found at this link: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1482

The Housing Authority can provide general guidance on what the law requires but cannot provide legal advice.

OVERVIEW OF AB 1482

AB 1482 is a statewide law that went into effect on January 1, 2020 and expires on January 1, 2030. It does two main things:

  1. Requires a landlord to have a “just cause” in order to terminate a tenancy.
  2. Limits annual rent increases to no more than 5% + local CPI, or 10%, whichever is lower. CPI refers to the Consumer Price Index, which reflects the inflation rate.

A tenant may not waive their rights to these protections and any agreement to do so by the tenant is not enforceable.

AB 1482 DOES NOT CHANGE OR REPLACE OR LIMIT ANY LOCAL RENT ORDINANCE

If a unit is already covered by an ordinance limiting rent increases, the unit remains subject to the local ordinance. In other words, 1482 does not limit, change, or take away the rent control for those units. The owner must abide by the most restrictive limitations.

UNITS THAT ARE EXEMPT FROM BOTH THE “JUST CAUSE” EVICTION PROVISIONS AND RENT LIMITATIONS

  • Units that were constructed within the last 15 years. This applies on a rolling basis.  For example, a unit constructed on January 1, 2006 is exempt as of January 1,  2020, but becomes covered by AB 1482 protections on and after January 1, 2021.
  • Affordable housing units.
  • Certain dormitories.
  • A two-unit property, if the second unit was occupied by an owner of the property for the entire period of the tenancy.
  • Single-family homes and condominiums are only exempt if the two conditions discussed below apply.

Exemption Conditions for Single-Family Homes and Condominiums

Single-family homes and condominiums are only exempt from AB 1482 if BOTH of the following conditions apply:

  1. The property is not owned by one of the following: a real estate trust, a corporation, or an LLC with at least one corporate member.AND
  2. The landlord notified the tenant in writing that the tenancy is not subject to the “just cause” and rent increase limitations as specifically described in Civil Code Sections 1946.2I(8)(B)(i) and 1947.12(d)(5)(B)(i). More information about this requirement, including mandatory language, is provided in the Assembly Bill

The limited exemption for single-family homes does not apply where there is more than one dwelling unit on the same lot, or any second residential unit in the building that cannot be sold separately from the subject unit (such as an in-law unit).

UNITS EXEMPT FROM THE RENT LIMITATIONS

  • Units that are already subject to a local rent control ordinance that restricts annual rent increases to an amount less than 5% + CPI.

RENT INCREASE LIMITS UNDER AB 1482

  • For covered units, annual rent increases are limited to no more than 5% plus the percentage change in the cost of living for the region in which the property is located, or 10%, whichever is lower. “Percentage change in the cost of living” means the percentage change in the Consumer Price Index (CPI) for All Urban Consumers for All Items for the metropolitan area in which the property is located, as published by the United States Bureau of Labor Statistics. If a regional index is not available, the CPI Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations, shall apply.
  • For rent increases that take effect before August 1 of any calendar year, the percentage change is calculated using the amount published for April (or March, if no amount is published for April) of the immediately preceding calendar year and April (or March) of the year before that.
  • For rent increases that take effect on or after August 1 of any calendar year, the percentage change is calculated using the amount published for April (or March, if no amount is published for April) of that calendar year and April (or March) of the immediately preceding calendar year.
  • The percentage change must be rounded to the nearest one-tenth of one percent.
  • No more than two increases in a 12-month period, and the combined amount cannot exceed the 5% + CPI cap.
  • The total rent paid by subtenants to a master tenant cannot exceed the rent charged by the landlord.
  • There is no limit on the initial rent charged for a vacant unit.

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