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Updated over 4 years ago on . Most recent reply

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Don MacRitchie
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Prop 21 and Costa Hawkins Principal Place of Residence Law

Don MacRitchie
Posted

Under current Costa Hawkins (CH) law if a tenant is not using a rent controlled property as his/her principal place of residence, the landlord can raise the rent to market rate. Doing so usually results in a tenant filing a petition with the local rent board opposing the increase. However, if the rent board finds for the landord, ie, that the tenant is not using the property as their principal place of residence, the landlord receives a judgment entitling him to raise the rent to market rate. This process is set forth and regulated by existing CH law. However, if Proposition 21 passes in November it will replace CH law and I don't believe Prop 21 has any principal place of residence requirement. So does this mean tenants will be free to live elsewhere and use their rent controlled properties as either pied a terrres or as sub-let rental income properties? Right now the landlord has a remedy for those abuses under the CH principal place of residence provisions. However, I don't think any similar remedies exist in Prop 21. Would be interested in the opinion of others.

Thanks,

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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Originally posted by @Amit M.:

Prop 21 is TERRIBLE!


For San Francisco, I bet that our board of stupidvisors will quickly pass vacancy controls (which will be permissible.) Other cities and counties in CA should keep that in mind, as their local politicians can pass these types of severe restrictions without Costa-Hawkins. 

I wonder what the likelihood of this turd passing? In 2018 prop 10 (similar) was soundly defeated. But we’re in different times now. OTOH CA recently passed  statewide rent control, as well as significant covid eviction protections. Jeez, isn’t that enough for 1 year!

I’m *really* hoping that the general population comes to their senses and prop 21 fails...

dont give Oregon any ideas  :)   normally takes these clowns a few years to catch up..  Oh and lets go after the landlords and let the 300 idots who are destroying the down town run wild with no consequences..  

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JLH Capital Partners

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