The rental property market in Sacramento, California is subject to a complex array of regulations that can pose significant challenges for landlords and property managers. Understanding these regulations is crucial to ensure compliance and avoid potential legal issues. This blog post will explore some of the key regulatory challenges, but there are many other regulations to consider, so this should not be viewed as a comprehensive list. Please consult with legal experts to determine what regulations apply to your unique situation.
AB 1482: The Tenant Protection Act of 2019 AB 1482, also known as the Tenant Protection Act of 2019, is a statewide law that came into effect on January 1, 2020, and is set to expire on January 1, 2030. This act imposes a rent cap and just-cause eviction policies for many residential rental properties in California. Key provisions include:
- Rent Caps: Landlords are limited in how much they can increase rent annually. The cap is set at 5% plus the regional Consumer Price Index (CPI), but cannot exceed a total of 10% over a 12-month period.
- Just Cause Eviction: Landlords must provide a valid reason for evicting tenants who have occupied a residence for more than one year.
- Exemptions: Certain properties are exempt, including most single-family homes and condominiums, as well as properties constructed within the last 15 years. However, this exemption requires proper notice to be provided with the lease.
Requirement to Accept Section 8 Tenants: California implemented a new law at the beginning of 2020 that forbids property owners from rejecting applicants on the basis of their using Section 8 housing vouchers as an income source. Rental property owners cannot discriminate against those using housing vouchers. The Housing Choice Voucher Program, formerly known as Section 8, provides assistance to very low-income individuals and families to afford decent, safe, and sanitary housing in the private rental market. This requirement aims to prevent discrimination against tenants who rely on government assistance to pay their rent.
Fair Housing Classifications: At the federal level, the Fair Housing Act prohibits discrimination in housing-related transactions based on race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, and disability5. California has expanded upon these protections to include additional classes such as sexual orientation, gender identity, and source of income.
Sacramento Tenant Protection Program: The Tenant Protection Program was created to protect tenants by establishing limits on rent increases and limitations on unwarranted evictions. It expands on the Statewide Tenant Protection Act for any properties within Sacramento City Limits. It also offers resources to assist tenants with questions about annual rent increase limits and administering and enforcing City code.
Rental Housing Inspection Program: The Rental Housing Inspection Program (RHIP) aims to ensure that all residential rental properties within the unincorporated area of Sacramento County meet the requirements of the Health and Safety Code3. Key aspects include:
- Routine Inspections: RHIP conducts inspections on a routine and comprehensive basis to maintain the overall quality of rental units.
- Education: The program educates property owners, property managers, and tenants about the health and safety requirements.
- Self-Certification: Property owners meeting minimum requirements can self-certify their properties, subject to random audits by Code Enforcement.
Landlords and property managers in Sacramento must navigate these regulations carefully to ensure they are operating within the law. For more detailed information and guidance, landlords and property managers should consult with legal experts and local housing authorities. Compliance with these regulations is essential for anyone managing properties in the Sacramento, CA market.
