AB1529 - Housing omnibus.

Assembly Bill No. 1529 CHAPTER 203 An act to amend Sections 1946.2 and 2924b of the Civil Code, to amend Sections 65863.10 and 65863.11 of the Government Code, and to amend Sections 50053 and 50710.7 of the Health and Safety Code, relating to housing. [ Approved by Governor October 01, 2025. Filed with Secretary of State October 01, 2025. ] LEGISLATIVE COUNSEL'S DIGEST AB 1529, Committee on Housing and Community Development. Housing omnibus. (1) Existing law governs the hiring of residential dwelling units. Existing law, the Tenant Protection Act of 2019, prohibits, until January 1, 2030, an owner of residential real property from terminating the tenancy of certain tenants without just cause, either at-fault or no-fault of the tenant, and requires just cause for terminating a tenancy to be stated in the written notice to terminate tenancy. The act requires an owner of residential real property subject to these provisions to provide the above-described notice to a tenant subject to specified requirements, including, for any tenancy commenced or renewed on or after July 1, 2020, 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, except as specified. This bill would allow the above-described notice to be provided in the lease or rental agreement. (2) Existing law, the Planning and Zoning Law, requires an owner of an assisted housing development, as defined, that is within 3 years of a scheduled expiration of rental restrictions or a scheduled termination of a subsidy contract to provide notice of the scheduled expiration or termination to any prospective tenant at the time the prospective tenant is interviewed for eligibility, to existing tenants, as specified, and to affected public entities, as defined. This bill would require a notice of a scheduled expiration of rental restrictions or a scheduled termination of a subsidy contract described above to remain posted until the expiration or termination has occurred, and would make technical changes relating to these provisions. Existing law requires an owner of an assisted housing development, at least 12 months prior to the anticipated date of the termination of a subsidy contract, the expiration of rental restrictions, or prepayment on an assisted housing development, to provide a notice of the proposed change to each affected tenant household residing in the assisted housing development at the time the notice is provided and to the affected public entities, as specified. Existing law also requires an owner of an assisted housing development proposing to terminate a subsidy contract, or prepay the mortgage, or sell or otherwise dispose of the assisted housing development to provide a notice of the opportunity to offer to purchase, as provided. Existing law requires the notice of the opportunity to purchase to be given before or concurrently with the notice of the proposed change described above, as specified. This bill would specify that the notice of the opportunity to purchase is required to be given before or concurrently with the 12-month notice of the proposed change, as specified. Existing law requires that the initial notice of a bona fide opportunity to submit an offer to purchase contain certain information, including a statement addressing, among other things, whether the owner has an interest in selling the property. Existing law also requires that the initial notice include a statement that specified types of entities, or any combination of them, have the right to purchase the development under these provisions. This bill would delete the requirement that the initial notice include a statement addressing whether the owner has an interest in selling the property. The bill would also clarify that the initial notice include a statement that the specified types of entities, as described above, have the right to submit a bona fide offer to purchase the development. Existing law prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust and prescribes a procedure for the exercise of that power, including, among other things, that a trustee, mortgagee, or beneficiary, or any of their authorized agents, first file for record, in the office of the recorder of each county wherein the mortgaged or trust property or some part or parcel thereof is situated, a notice of default, as specified. Existing law requires the mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale to mail the notice to specified individuals, including the office of the Controller, Sacramento, California, where, as of the recording date of the notice of default, a “Notice of Lien for Postponed Property Taxes” has been recorded against the real property to which the notice of default applies. This bill would additionally require the mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale to mail the notice to the office of the Director of Housing and Community Development, Sacramento, California, and the office of the Executive Director of the California Tax Credit Allocation Committee, Sacramento, California, where, as of the recording date of the notice of default, a use restriction, as defined, has been recorded against the real property to which the notice of default applies. The bill would prohibit any failure to comply with the above-described provisions from affecting the validity of a trustee’s sale or a sale in favor of a bona fide purchaser. (3) Existing law, the Zenovich-Moscone-Chacon Housing and Home Finance Act, prohibits “affordable rent” for certain rental housing developments that receive assistance on or after January 1, 1991, from exceeding a specified percentage based on the area median income adjusted for family size appropriate for the unit and whether the household is an acutely low income household, extremely low income household, very low income household, lower income household, or moderate-income household. Existing law, for a rental housing development that dedicates 80% of units to lower income households, as specified, prohibits affordable rent from exceeding the rent prescribed by deed restrictions or regulatory agreements pursuant to the terms of public financing or public financial assistance for the rental housing development, if the rental housing development receives specified awards on or after January 1, 2025. This bill would instead, for an above-described rental housing development that dedicates at least 80% of units to lower income households, as specified, prohibit affordable rent from exceeding an amount consistent with the maximum rent levels for lower income households, as those rents and incomes are determined by the California Tax Credit Allocation Committee. By revising the limit on “affordable rent” for certain housing developments, thereby revising the duties of local government officials with respect to administering various programs and requirements that require a determination of “affordable rent,” this bill would impose a state-mandated local program. (4) Existing law requires the Department of Housing and Community Development, through its Office of Migrant Services, to assist in the development, construction, reconstruction, rehabilitation, or operation of migrant farm labor centers, as provided. Existing law requires the department to develop a report that analyzes the feasibility and impact of transitioning housing units at Office of Migrant Services centers to year-round availability, and to submit that report to specified committees of the Legislature by July 1, 2027, as provided. Existing law, by December 31, 2028, and following completion of that report, requires the department to coordinate with the Department of General Services and the Department of Food and Agriculture to identify available excess sites in proximity to migrant farm labor centers. This bill would specify that, for the purposes of these provisions, the term “available excess sites” refers to prescribed previously identified sites, as provided. (5) This bill would incorporate additional changes to Section 1946.2 of the Civil Code proposed by SB 522 to be operative only if this bill and SB 522 are enacted and this bill is enacted last. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 1946.2 of the Civil Code is amended to read: 1946.2. (a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for 12 months, the owner of the residential real property shall not terminate a tenancy without just cause, which shall 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 shall only apply if either of the following are satisfied: (1) All of the tenants have continuously and lawfully occupied the residential real property for 12 months or more. (2) One or more tenants have continuously and lawfully occupied the residential real property for 24 months or more. (b) For purposes of this section, “just cause” means either of the following: (1) At-fault just cause, which means any of the following: (A) Default in the payment of rent. (B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation. (C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (D) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (E) The tenant had a written lease that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law. (F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, on or off the residential real property, that is directed at any owner or agent of the owner of the residential real property. (G) Assigning or subletting the premises in violation of the tenant’s lease, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (H) The tenant’s refusal to allow the owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of this code, and Sections 13113.7 and 17926.1 of the Health and Safety Code. (I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure. (J) The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure. (K) When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenant’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the owner, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure. (2) No-fault just cause, which means any of the following: (A) (i) Intent to occupy the residential real property by the owner or the owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents for a minimum of 12 continuous months as that person’s primary residence. (ii) For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (i) shall apply only if the tenant agrees, in writing, to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or the owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property. Addition of a provision allowing the owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar provision for the purposes of subparagraph (E) of paragraph (1). (iii) This subparagraph does not apply if the intended occupant occupies a rental unit on the property or if a vacancy of a similar unit already exists at the property. (iv) The written notice terminating a tenancy for a just cause pursuant to this subparagraph shall contain the name or names and relationship to the owner of the intended occupant. The written notice shall additionally include notification that the tenant may request proof that the intended occupant is an owner or related to the owner as defined in subclause (II) of clause (viii). The proof shall be provided upon request and may include an operating agreement and other nonpublic documents. (v) Clause (i) applies only if the intended occupant moves into the rental unit within 90 days after the tenant vacates and occupies the rental unit as a primary residence for at least 12 consecutive months. (vi) (I) If the intended occupant fails to occupy the rental unit within 90 days after the tenant vacates or fails to occupy the rental unit as their primary residence for at least 12 consecutive months, the owner shall offer the unit to the tenant who vacated it at the same rent and lease terms in effect at the time the tenant vacated and shall reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance that was paid to the tenant in connection with the written notice. (II) If the intended occupant moves into the rental unit within 90 days after the tenant vacates, but dies before having occupied the rental unit as a primary residence for 12 months, as required by clause (vi), this will not be considered a fail [Text truncated for display. Full text available on Congress.gov.]