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Santa Ana Rent Control Explained - Guide for Tenants and Landlords to RSO and Just Cause - YouTube
Channel: WIRE Associates - Christian Walsh
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Santa Ana rent control explained.
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This is a guide for tenants and landlords
on Santa Ana's two newest ordinances.
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We have the rent stabilization ordinance
and the just cause eviction ordinance.
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And they went into law
on November 19th, 2021.
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We're going to run through
what properties are exempt and
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covered by these ordinances.
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We're going to cover the notices
that are required for landlords to
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give their tenants in Santa Ana.
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And we're going to discuss some of the
highlights of both of the ordinances.
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Hey, there, Christian Walsh real
estate agent with WIRE Associates.
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We've been helping tenants and landlords
and buyers and sellers navigate these
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crazy days in California and beyond.
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And just as we've done for
the eviction moratorium laws.
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And just as we've done for AB 1482,
we're going to dive into Santa Ana's
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newest ordinances And remember we can't
give tax or legal advice, but for the
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most honest and up-to-date real estate
advice, subscribe to this channel.
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The state of California already has
legislation in place that covers
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rent increase caps, and just cause
evictions it's called AB 1482.
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But what Santa Ana has passed is
more strict then the statewide law.
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That means that these must
be followed in Santa Ana.
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And throughout this, you'll hear where
we mention some of the differences
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between AB 1482 and Santa Ana's laws.
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In the description below, we've included
links to the full ordinances for both rent
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stabilization and the just cause eviction,
we also have links to the notices
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plus other resources from the city.
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I encourage all Santa Ana tenants
and landlords to read through the
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ordinances and take a look at the
language to see exactly what it says.
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First, we'll talk about what properties
are exempt from both of the ordinances
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and it mirrors closely AB 1482 and the
properties that are exempt from that.
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If a property has been issued a
certificate of occupancy, in the
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past 15 years, then it is exempt.
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And we're going to cover this
in a section coming up where we
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show the dates and break it down.
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If it's a dormitory, if it's deed
restricted, affordable housing, it's
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exempt, but the bigger category is single
family homes, condos, and town homes that
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are not owned by a corporation or an LLC.
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Those are exempt from both of these
ordinances and this is a big portion
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of the rental properties in Santa Ana,
but don't leave just yet landlords,
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because there's important language
you will have to give to your tenants
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in order to maintain this exemption
and we're going to go through that.
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One other category that would also
be included in this is duplexes that
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are owner occupied in one of the
units, but anything else, duplexes
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that are tenant occupied or bigger,
a hundred units, four, three, those
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are all subject to these regulations.
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You may need to run through this section
a few times because it can get a little
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bit confusing, but just go ahead and
hit rewind, and you can watch it again.
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So these are properties that on
the face of it are not exempt from
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AB 1482, and they're not exempt
from Santa Ana's ordinances.
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So these would not be single-family
homes, condos, townhomes.
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Those are exempt.
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This would be multi-family.
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If the building received its certificate
of occupancy, anytime between today
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and 15 years ago, it is exempt from
both the state AB 1482, and it is
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exempt from Santa Ana's ordinances,
but this is a rolling calendar.
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So as time continues to move
forward, that 15 years will also
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move forward at the exact same time.
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So bear that in mind while
the property may be brand new.
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Now in 15 years, it could be
subject to these ordinances, both
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at the state or local level so
that's a rolling timeline change.
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Once a property hits a 15 year-old mark.
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It is now subject to two different things.
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So it is subject to Santa Ana's
just cause eviction ordinance.
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And it is also subject to
AB 1482 for rent increases.
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That means according to AB 1482,
that rent increases are capped
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at 5%, plus the consumer price
index and no greater than 10%.
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Now the next important
date is a static date.
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It does not change.
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And that's February 1st, 1995.
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So if a property was built before, then
it is no longer subject to AB 1482.
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It is subject to both of
Santa Ana's ordinances.
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So this is any property
built in 94, 93, 80.
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It's seventies, sixties.
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Any of these properties in Santa Ana
are subject to Santa Ana's ordinances.
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There's both the rent
stabilization ordinance and
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just cause eviction ordinance.
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That's an important timeline to
understand, based on the age of your
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building, what applies and nothing may
apply if it's 15 years or newer, but then
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if it's older, then you see what applies.
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So if it's 15 years or newer, nothing
applies under these ordinances.
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But if it's older than that, that's
where you have to use a chart
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like this, to figure out exactly
what applies and when it applies.
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This is an important for the
landlords to maintain the exemption.
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So this would be for an owner of a
single family home condo or townhome
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in order to keep their exemption.
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This would also apply in the case
of a landlord who has a multifamily
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building that's 15 years or
newer or matches somewhere on the
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timeline that we just ran through.
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So buried in the ordinances is the
specific exemption language that's
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required for each of the ordinances.
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There's separate language.
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It's very similar, but separate
language for the rent stabilization
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ordinance and separate language for
the just cause eviction ordinance.
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So it's very important that in order to
maintain that exemption, that the tenant
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receives one or both if they're exempt
from both, receives these in writing,
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in order to maintain that exemption.
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Now the city, while it has provided a
notice to give to the tenants for the
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case of a property that's subject to the
ordinances, the city has not provided
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any sort of paperwork that reflects this.
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Other than what's in the ordinances.
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We have taken the time to
transcribe this and you can copy
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this from the description below.
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Make sure you run anything though by
your attorney first, before you use it
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The rent stabilization ordinance caps
the amount of increase at landlord
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can do for properties, subject to the
ordinance at a maximum of 3% or 80% of the
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consumer price index, whichever is lower.
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So absolute maximum a landlord is going
to be able to increase rent is 3%.
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It could be less there are cases where
rent will not go up 3%, depending on
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where the consumer price index falls.
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And it will be 80% of that number.
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It's important to remember that
landlords will only be able
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to give one increase per year.
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The maximum rent increase from now
until August 30th, 2022 is set at 3%.
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By June 30th, 2022, the city of
Santa Ana will release the next rent
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increase that will be able to go
into effect on September 1st, 2022.
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Be on the lookout by June 30th, 2022
for that number , and then going
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forward by June 30th of following
years, the city will release the
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next allowable rent increase.
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This is the RSO notice that the
city has on their website, this is
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the one from November 19th, 2021.
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So this theoretically would
be the notice that a landlord
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would give to their tenant.
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If a property is subject to the
RSO, it gives a quick outline to
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tenants understand, and it needs
a tenant signature at the bottom.
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Now, one important point is, again, make
sure you run this by your attorney before
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giving this to a tenant, landlords, but
number two, there's something on here
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that I disagree with and I could be wrong.
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Let me know in the comments
below, but under the tenant rent
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increase notice requirements.
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What it says is it's a 60 day notice
is required for tenants who've
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been in place for a year or more.
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I went through this rent
stabilization ordinance several times.
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And I did not see that language.
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The state of California allows a 30
day notice to be given to a tenant.
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If the increase is less than
10%, so I could be wrong.
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But again, have your attorneys review
this, this may be a mistake on the new.
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Or there may be some other
language in the municipal code.
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That's not in the rent
stabilization ordinance.
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Although I did search the municipal
code as well and did not see this.
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So I am very curious.
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Let me know in the comments below, if
you think this is correct on this form.
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As for the deadline to deliver this to
tenants, if you're watching this before
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December 19th, you have until December
19th, 2021, to deliver this notice to all
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your tenants in their current tenancy.
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If you have a tenancy put in
place after you will then deliver
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this form as part of the lease.
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So it'd be an addendum to the lease
for any new tenancies going forward.
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And this will be used or a form just
like this will be used in leases,
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going forward for new tenancies.
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If a landlord wants to attempt
to charge more than the 3% annual
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increase or whatever it may be set
at that point in time, they are able
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to submit a fair return petition and
under Costa Hawkins, a landlord is
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allowed to receive a fair return.
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So there's a specific process
that's outlined in the ordinance
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for how a landlord would go about
asking for a larger increase.
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Now it's up to the landlord
to cover all costs.
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The landlord must also notify the
tenant that they're doing this and
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the tenant will have time to respond.
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The bill does not specify
what's considered a fair return.
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It'll be up to the city manager
and the landlord to work together,
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to determine whether they can
exceed the allowed increase or not.
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The just cause eviction ordinance is
a big, huge document that I encourage
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each of you to download and read
whether you're a landlord or tenant.
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Now, the city does provide.
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PowerPoint.
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And they have some frequently asked
questions, but this document is
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where the rubber meets the road.
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There is a lot of information in here
and really what needs to happen is,
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landlords, before you move forward with
any notice to terminate tenancy, or you
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move forward with any sort of a notice
to cure our quit or notice to quit.
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Make sure you reach out to
an attorney who understands
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Santa Ana specific regulations.
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And tenants, if you receive anything
from a landlord, make sure you reach
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out to the city for clarification.
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And I encourage you to reach out
to lawhelp.org, to find an attorney
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in the area who understands these
ordinances, because there's a lot
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of moving parts to both of them,
but this one has a lot more parts.
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We're going to do a quick run through.
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Ultimately the bill is restricting ways
that landlords can terminate tenancies.
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This is again for properties who
are not exempt from the bill.
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If you're exempt from the bill, you don't
need to follow any of this ordinance,
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but if you're subject to things have
dramatically changed for landlords
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in being able to terminate tenancies.
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Let's dive into the first
thing that starts to talk
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about is delivering the notice.
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Then it gets into the just cause
reasons to terminate a tenancy.
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So it breaks down into two things.
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It breaks down into at just cause
or no fault, just cause, and by
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fault, whose fault do, I mean, I'm
talking about the tenant's fault.
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So if it's at fault, that means the
tenant has done something wrong and
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it runs through and it describes the
acceptable at fault, just cause reasons.
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So the easiest way to remember
this is somebody committed a crime.
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Although there's a change in that one,
it's also related to committing waste.
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You're not paying rent.
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You've breached the terms of the
lease that is all outlined in here.
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The other way to terminate a
tenancy would be no fault and the
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tenant hasn't done anything wrong.
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It's being terminated for one
of a few very specific reasons
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that are outlined in here.
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So I encourage you to read through
this again, you're going to need an
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attorney to help you understand exactly
how it applies to your situation,
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whether you're a landlord or tenant.
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Let's dive into no fault and there
are limited reasons a landlord can
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terminate a tenancy for essentially
breaks down to four different reasons.
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So, number one is if a landlord is
going to move in or have a spouse or
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domestic partner move in, or a parent
or grandparent or child or grandchild
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move in, so that straight line.
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Landlords can terminate a tenancy
going forward for new leases.
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The language must be in the
lease, allowing a landlord,
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terminate a tenancy for this.
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And it's also going to require that that
person stays in the unit for two years in
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order to qualify for terminating a tenancy
under this no fault, just cause reason.
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Second way would be withdrawal from the
rental market, but it's going to require
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that this is for a minimum of two years
and the owner is going to have to sign an
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affidavit and deliver to the city stating
that they're not going to have it occupied
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by a tenant for a minimum of two years.
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The third way is if it's required by
a government agency to terminate the
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tenancy, that would be another way
that a landlord could terminate a
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tenancy through no fault, just cause
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And finally, if a landlord intends to
demolish the unit or substantially remodel
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the unit and by substantially remodel,
there's some language in here, it must
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be for health and safety require permits.
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You must have to have a
tenant out for a minute.
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30 days.
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That's what the work would require.
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You can't just be going into paint and
put in new carpet that would not require
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a tenant to be moved out for 30 days.
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Additionally, the landlord, if the
work is done within six months, must
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offer the tenant essentially a first
right of refusal to come back to the
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unit, unless they get it in writing
that the tenant does not want that.
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Here's another big difference
between AB 1482 and the Santa Ana
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just cause eviction ordinance.
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And that is related to
relocation assistance.
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So under AB 1482 a landlord is
required to give one month's
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rent for relocation assistance.
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The Santa Ana eviction ordinance requires
three months rent and for a no fault,
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just cause termination of tenancy.
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And the landlord has 15 days to either
deliver a check for three months worth
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of rent or let the tenant know in
writing that they are waiving three
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months of rent and in writing have to
put how much that dollar amount is.
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Now, this is just for no fault.
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If the tenant is at fault, a landlord
does not owe the relocation assistance.
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There are certain ways that attended
can defend against a termination of
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tenancy and their special protections
in here for victims of domestic
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abuse, elder abuse, et cetera.
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So it's important as a
landlord and a tenant.
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You understand these
special protections in here.
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An additional protection that's
in here under section H states
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that tenant could defend against a
notice of termination of tenancy.
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If anyone under 21 is registered and
attending school during the period
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that the notice has been given.
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That's something that landlords
should run by their attorneys as well.
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When giving the notice to terminate
tenancy, the landlord has to jump
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through hoops, including making
sure it meets the requirements here.
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And one of those requirements is the
city needs a copy of it within five days.
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And there's other things
are important on here.
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The notice must be delivered in
the language that the lease was
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negotiated as well as English.
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If that was a language
that wasn't English.
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So potentially two versions of the notice.
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The final section of the bill
covers retaliatory evictions
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and anti harassment behavior.
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So behaviors that are considered
harassment by landlords.
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The reason this is included in
the bill, is it because oftentimes
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when it's difficult for a landlord
to terminate a tenancy, some
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landlords may turn to behavior.
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That's considered retaliatory.
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Or harassment.
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We saw this actually during the
eviction moratorium, we heard a lot
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of stories where this was the case.
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So sadly, this sometimes does happen.
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Now, of course, a good landlord
would never turn to this.
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So make sure you read through
this and understand this landlords
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and tenants so that you know
exactly what your rights are.
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And potentially down the road, we will
release a video that is specific to these
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sections because there is a lot in here.
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Here is the form for the just
cause eviction ordinance.
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And we have links to this below.
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So you can download this form and I
encourage you to read through this because
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it really breaks down the ordinance.
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It is required that landlords
deliver this to tenants.
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Same deadline is the one
for the rent stabilization.
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So this must be delivered by
December 19th, 2021 for any
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tenancies in place before that.
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And then this must be delivered
going forward to tenants.
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Here's what unique on this
one that says it on the form.
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This must be delivered in English
as well as the language that
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the lease is negotiated in.
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The other form, the rent stabilization
form is only required to be delivered
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in the language that the lease is in.
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So this, you have to give two copies
if the lease is in another language
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and there are some other sample copies
in other languages, you can download.
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This breaks down the bill and an
easy to understand format talks
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about at fault versus no fault.
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Let's tenants know they can go to the
city's website for more information
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that there's special notices required
in order to terminate a tenancy.
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So this is goes into depth on some
of the new steps that owners must
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take in order to terminate a tenancy.
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This form also has a
place to turn for answers.
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Uh, similar to what was on the
RSO form, there is a website,
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email and phone number.
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I personally have tried
calling the phone number.
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No one answered, but hopefully at
some point in time, they'll get
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that up to speed so that you can
get answers to questions you have,
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whether you're a tenant or a landlord.
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Again, I encourage you as a
landlord and as a tenant to
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download this and review this.
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Leave your questions below on the Santa
Ana rent stabilization ordinance, and
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just cause eviction ordinance, let
us know any other topics you'd like
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to see covered under the ordinance
and we'll make a video about it.
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Make sure you subscribe to our
free weekly email newsletter.
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We'll keep updates on this
ordinance and a whole lot more.
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Thanks for tuning in this has been
Christian Walsh real estate agent with
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WIRE Associates, and we appreciate you.
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