California Statewide Rent Control Exemptions

renter

AB 1482, California’s statewide rent control (limiting annual rent increases and imposing just cause eviction restrictions) has several property owner category exemptions, for most of pertinent are:

1. Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.

2. A duplex in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy.

3)  Housing that has been issued a certificate of occupancy within the previous 15 years.

4.  Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:

(A) The owner is not any of the following:

(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.

(ii) A corporation.

(iii) A limited liability company in which at least one member is a corporation.

The most common exemption are residential homes and condominiums under category 4 (assuming the property does not otherwise qualify for municipal and city specific rent control.)

One type of real property that may not be exempt are “quasi-condo” structures under tenancy in common arrangements.

LLCs are also exempt, as long as no corporation has a membership interest.

Disclaimer

Author: Hanlen Chang

The Law Offices of Hanlen J. Chang is located in San Francisco, California. Mr. Chang is a graduate of Southwestern Law School and UC Santa Barbara. Mr. Chang’s Legal Practice is focused on Estate Planning (with an international subspeciality), Business Law, and Real Estate. Mr. Chang is a member of the Bar Association of San Francisco – International Law & Practice Executive Committee.

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