AB 1482 provides statewide rent increase limitations and just cause for eviction protections in California.
This webpage discusses several important aspects of AB 1482, but does not cover every aspect and is not a substitute for reading the law itself, which can be found at California Civil Code sections 1946.2 and 1947.12.
AB 1482 is a state law that can only be enforced in state court. Rent Board housing counselors can provide general guidance on what the law requires, but cannot provide legal advice. Please contact an attorney or a local advocacy organization if you need legal advice or help with exercising your rights in court.
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:
- Requires a landlord to have a “just cause” in order to terminate a tenancy.
- 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 Berkeley’s Rent Ordinance
If a unit is already covered by Berkeley’s local eviction and/or rent increase regulations, the unit remains subject to the local regulations. In other words, AB 1482 does not limit, change, or take away the rent control or just cause for eviction protections of Berkeley’s Rent Ordinance.
Types of Housing Covered By AB 1482
All housing located in the state of California is covered by AB 1482 unless it falls into one of the categories of exemption discussed below (units covered by Berkeley’s Rent Ordinance fall into an exemption for the rent increase regulations, which is why AB 1482 does not change Berkeley’s local rent control protections).
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:
- 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
- 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 1946.2(e)(8)(B)(i) and 1947.12(d)(5)(B)(i). More information about this requirement, including mandatory language, is provided in the Notice section of this webpage.
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.
Units exempt from “just cause” eviction provisions
- Units that are already subject to a local ordinance that requires “just cause” to terminate a tenancy and is more protective than state law (like the protections in Berkeley’s Rent Ordinance).
- Single-family, owner-occupied residences where the owner rents no more than two bedrooms or units, including accessory dwelling units and junior accessory dwelling units.
- Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner, if the owner lives at the property as their principal residence.
- Housing provided by a nonprofit hospital, church, extended care facility, licensed extended care facility for the elderly, or an adult residential facility.
- Transient and tourist hotel occupancy as defined by Civil Code section 1940(B).
Landlords Must Give Tenants Notice if AB 1482 Applies to a Unit or if they are claiming the single-family home or condominium exemption
Notice to All Tenants in Units Covered by the Law
All tenants in units covered by the state law must receive a notice explaining the “just cause” and rent limitation protections. For a tenancy existing prior to July 1, 2020, the notice must be provided in writing to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement. For any tenancy started or renewed on or after July 1, 2020, the notice must be provided as an addendum to the lease or rental agreement, or as a written notice signed by the tenant with a copy provided to the tenant. The notice language must read:
“California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.”
Notice Requirement for Owners Claiming the Single-Family Home or Condominium Exemption
An owner claiming an exemption from AB 1482 because the property is a single-family home or condominium must provide a written notice to the tenant. For a tenancy existing before July 1, 2020, this notice may, but is not required to, be provided in the rental agreement. For any tenancy started or renewed on or after July 1, 2020, this notice must be provided in the rental agreement. If the owner does not provide the required notice, then a single-family home or condominium is NOT exempt from the “just cause” or rent cap regulations. The notice language must read:
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”1940(b).”
“Just Cause” Eviction Provisions under AB 1482
- The eviction provisions only apply after all tenants have lived in the unit for 12 months or more, or where at least one tenant has occupied the unit for 24 months.
- A tenancy may not be terminated unless the landlord has one of the allowable “just cause” reasons, which must be stated in the notice terminating tenancy.
- “Just cause” reasons are categorized as either “at-fault” reasons or “no-fault” reasons. Relocation assistance is required for “no-fault” evictions.
- The mere expiration of a lease or rental agreement is not a “just cause” to terminate a tenancy.
The “just cause” reasons for eviction are set forth in California Civil Code section 1946.2(b).
Rent Increase Limits Under AB 1482
The current applicable CPI increase for Berkeley (that is, from August 1, 2023 to July 31, 2024), is 4.2%. Thus, the maximum annual increase for units subject to AB 1482 is currently 9.2% (4.2% + 5%). If the increase is effective on or after August 1, 2024, a different CPI increase will apply.
- 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.
