Dear CAR Member,
Happy New Year!
A new year, and with it, brings new beginnings and new opportunities. I’m looking forward to meeting the challenges that invariably present themselves as the new year gets underway.
Speaking of challenges, last month I told you about our efforts to address California’s housing crisis and affordability challenges. Our ballot measure for the 2020 November General Election would remove the property tax “hit” senior homeowners can experience when moving to another home so that they can relocate anywhere in California. This opens up existing housing inventory for other families and generates revenue for local schools and government. We’ve launched a statewide signature gathering effort to qualify the measure for the November 2020 ballot.
C.A.R. staff and Ballot Initiative Taskforce members are hosting a webinar to give an in-depth policy analysis of the initiative on Jan. 22 and Jan. 29. C.A.R. members can hear detailed information on the ballot initiative and learn about opportunities to get involved and support these efforts.
Register here for the webinar on Jan. 29, 2:30 p.m. – 3:30 p.m.
To request petitions or for additional details please visit www.cargrassroots2020.com, password: Realtors123.
There’s no immediate end to the state’s housing affordability crisis, so C.A.R. is co-sponsoring SB 50 to continue to fight for the only real solution to the crisis — increasing housing supply. REALTORS® play an essential role in this fight. It’s imperative that the Legislature and the governor take decisive action to build more housing. Even the Los Angeles Times Editorial Board agrees with us in this editorial.
Finally, a new year always brings new laws that may affect REALTORS®. Here are a few of the top new laws:
Assembly Bill 5 (Independent Contractor) – Provides a crystal-clear reconfirmation that real estate agents can continue their half century practice as independent contractors. The new law recognizes and reinforces Business and Professions Code § 10032, which allows real estate licensees to be independent contractors for statutory purposes as long as they meet three conditions: They hold a real estate license; substantially all of their remuneration is directly related to sales or other output, rather than to the number of hours worked; and the parties have a written contract stating that the individual agent not be treated as an employee with respect to those services for state tax purposes.
AB 1482 (Statewide Rent Control and Just Cause Eviction) – California landlords are now subject to statewide rent control with annual rent increases capped at 5 percent plus inflation, up to a maximum of 10 percent per year. This cap applies retroactively to all rent increases since March 15, 2019.
Assembly Bill 1482 also includes a just cause provision, which means that landlords can no longer terminate month-to-month tenancies at will. They now must point to one of 15 specific reasons — some “at fault” and some “no fault” — to justify evicting a tenant.
There are exemptions to this law. The just case provisions only protect tenants who have been in possession for a year or more, and certain types of housing are exempt including single-family homes and condos if tenants have received notice of the exemption and the owner is not an REIT or corporation. Other exemptions include homes built within the last 15 years, owner-occupied duplexes, and more.
SB 329 (Section 8 Housing Vouchers) – Landlords may no longer refuse to rent to a tenant solely based on their participation in a housing voucher program such as Section 8. Doing so would constitute illegal “source of income” discrimination. However, landlords remain free to decline prospective tenants provided they do so on otherwise lawful grounds that are not based on a tenant’s receipt of a housing subsidy. Landlords remain free to charge rents as allowed under law and do not have to reduce rents to make units affordable to voucher holders. Further, landlords can continue to use appropriate financial and income standards when making rental decisions, such as verifying income levels or checking creditworthiness. But landlords no longer have the option to forgo participation in housing subsidy programs when presented with a prospective tenant who is qualified to rent from them in all other respects.
AB 1110 (90-Day Notice for Rent Increases Above 10 Percent) – Previously, a 60-day notice was required for rent increases above 10 percent; the new law extends that to 90 days. A 90-day notice is required when all rent increases in the previous 12 months, including the current one, total more than 10 percent. For increases of 10 percent or less, the notice period remains 30 days. Keep in mind that with the passage of AB 1482, an increase of more than 10 percent within any 12-month period will only be permitted for housing that is exempt from the statewide rent cap law.
CCPA Strengthens Consumers’ Privacy Rights – Signed into law in 2018, the California Consumer Privacy Act (CCPA) officially went into effect on January 1, 2020. CCPA applies to any for-profit entity that does business in the state of California and collects personal information, provided that entity meets certain requirements. Under CCPA, consumers now have the right to see what personal information covered businesses have collected about them, the right to request that their personal information be deleted and the right to prevent businesses from sharing their personal information with others. Personal information can include names, addresses, bank details and purchasing history, and the law does not distinguish between electronic and other forms of records (meaning paper files count, too). Although the CCPA contains no general private right of action, a business covered by CCPA that violates any of its provisions may be charged in an enforcement action brought by the Attorney General with civil fines between $2,500 and $7,500.
See a complete list of new laws affecting REALTORS®.
I hope to see you all soon in the new year.
Sincerely,
Jeanne Radsick
C.A.R. President