bill_id=201920200AB1482The section regarding rent control is under section 1947.12 paragraph (d): (the exceptions)(d) This section shall not apply to the following residential real properties:(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code or comparable federal statutes.(2) Dormitories constructed and maintained in connection with any higher education institution within the state for use and occupancy by students in attendance at the institution.(3) Housing subject to rent or price control through a public entity’s valid exercise of its police power consistent with Chapter 2.7 (commencing with Section 1954.50) that restricts annual increases in the rental rate to an amount less than that provided in subdivision (a).(4) Housing that has been issued a certificate of occupancy within the previous 15 years.(5) Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:(A) The owner is not any of the following:(i) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.

So, they can't then claim you don't have the right to evict them over the fact they exercised a right and you are retaliating.  

It is a clause that can be exercised by either party, but you must give 60 days written notice and equivalent of two months rent.  

You can require ALL tenants to exercise responsible animal ownership, protect the property, minimize chance of harm to other people, and maintain acceptable noise levels that do not interfere with neighbors' enjoyment of their own property.A well-written animal clause will require the tenant to:Provide proof of current shots, if applicableProvide proof of flea control medication, if applicableDisclose the name and contact information of the veterinarian caring for the animal, if applicable (hamsters, for example, probably do not have veterinarians)Keep dogs in a crate or on a leash at all times when outside the dwellingUse a pooper-scooper, whether on the leased premises or another's propertyVary locations of dog urination, so as not to burn shrubs or lawnEmpty cat litter boxes daily into outside receptaclesControl  excessive barking that disturbs the neighborsAllow monthly inspections for pet damageImmediately clean any pet discharges and immediately report any damageAssist with Twice monthly HVAC filter changes for long-haired animalsKeep pet food supplies in pest-proof containersI think that if you approach the problem in this manner, you will be more comfortable complying with Fair Housing laws.

I agree with many who say that the problem may be fairly easy to resolve, but you should check with an expert that does these kind of repairs to confirm if you are not experienced in the matter.But ... just for the mental exercise, let's assume for a second that the foundation issue could NOT be fixed, like you stated in the original post.

That drive to get moving is good, but it can get you in trouble if you don't exercise temperance.

They will be in a cage but I believe they have to be let out to exercise and hay is needed for the cage I think. 

If you're nervous ask them to sign something to say they no longer wish to exercise the lease.Doubtful they would come back at you.

Basically, this mold inspection dance amounts to an exercise in procuring litigation insurance.

Most bad tenants end up with landlords that do not exercise discretionally caution regardless of laws.