AB 978 - Establishes Rent Stabilization and Protections for Mobile Home Owners - California Key Vote

Stage Details

Title: Establishes Rent Stabilization and Protections for Mobile Home Owners

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Title: Establishes Rent Stabilization and Protections for Mobile Home Owners

Vote Smart's Synopsis:

Vote to pass a bill that establishes rent stabilization and protections for mobile home owners who rent the land their home sits on as well as for anyone who rents a mobile home.

Highlights:

 

  • Defines “owner” as any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner (Sec. 3-2).

  • Prohibits management from increasing the gross rental rate for a tenancy in a qualified mobile home park more than 3 percent plus the percentage change in the cost of living, or 5 percent, whichever is lower, of the lowest gross rental rate charged for a tenancy at any time during the 12 months prior to the effective date of the increase (Sec. 1.a).

  • Prohibits the owner of the residential real property from terminating the tenancy without just cause, which will be stated in the written notice to terminate tenancy. If any additional adult tenants are added to the lease before an existing tenant has continuously and lawfully occupied the residential real property for 24 months, then this subdivision will only apply if either of the following are satisfied (Sec. 2.a):

    • All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more; or

    • One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more.

  • Specifies if an owner of residential real property issues a termination notice based on a no-fault just cause, the owner will, regardless of the tenant’s income, at the owner’s option, do one of the following (Sec. 2.d-1):

    • Assist the tenant to relocate by providing a direct payment to the tenant;.

    • Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.

  • Specifies this law does not apply to residential real property, including a mobile home, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply (Sec. 2-8):

    • The owner is not any of the following:

      • A real estate investment trust;

      • A corporation;

      • A limited liability company in which at least one member is a corporation;

      • Management of a mobile home park; and

    • The tenants have been provided written notice that the residential property is exempt

  • Establishes the gross per-month rental rate and any owner-offered discounts, incentives, concessions, or credits will be separately listed and identified in the lease or rental agreement or any amendments to an existing lease or rental agreement (Sec. 3.a).

  • Specifies in the event that an owner has increased the rent for a tenancy in a mobile home by more than the amount permissible between February 18, 2021, and January 1, 2022, both of the following apply (Sec. 3-2):

    • The applicable rent on January 1, 2022, will be the rent as of February 18, 2021, plus the maximum permissible increase;

    • An owner will not be liable to the tenant for any corresponding rent overpayment.

  • Authorizes an owner of residential property who increased the rental rate on that residential real property on or after February 18, 2021, but before January 1, 2022, by an amount less than the rental rate increase permitted to increase the rental rate twice, within 12 months of February 18, 2021, but in no event will that rental rate increase exceed the maximum rental rate increase permitted (Sec. 3-3).

Title: Establishes Rent Stabilization and Protections for Mobile Home Owners

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