The rent control law from 2019 provided statements to provide the tenant indicating unit was rent controlled and statement to provide tenant that maintains the right to move family into the unit. You need to find out if the tenant was provided the notification to have family move into unit.
If this notification was provided then there is no potential issue. Give the 2 months notice due to tenant being there more than a year and move in.
If the notification was not provided the implication seems to be that the tenant can stay indefinitely, but the wording is not crystal clear to me. In particular, it never states explicitly in the absence of this notification that the LL gives up the right to move themselves or the identified family into the unit at end of lease.
Here is a section of interest:
For leases entered into on or after July 1, 2020, 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 their 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).
Note it explicitly states “if a provision of the lease allows owner to terminate the lease if the owner ...”. It does not explicitly state, but seems to imply, that without such notification the owner does not have right to move in.
Here is the rent rent control law: https://leginfo.legislature.ca...
If the notice was not provided and you want to move in, I would provide the 2 month’s notice due to the law not being crystal clear. Realize if the tenant fights the lease termination, you could be out of luck.
It is important for LL to know the laws. This notice is something that would be easy to have provided the tenant.
Good luck