There are new Santa Monica tenant laws coming in early 2024. The City Council voted to approve the changes on January 23, 2024, and they are expected to take effect in early March. These changes are set to impact tenant relocation awards, cash-for-keys agreements, anti-harassment laws, and evictions.
Here are some of the changes coming in 2024:
- Expansion of cash for keys agreements
- Eviction restrictions for unauthorized alterations
- Minimum rent requirements
- Stronger anti-harassment provisions
- Relocation assistance
- Restrictions on rent increases
- Housing status as a protected class
Changes to Santa Monica Cash-for-Keys Agreements
The scope of cash-for-keys regulations will expand in 2024. The current law applies only to cash-for-keys agreements for rent-controlled units. Starting in 2024, tenants covered under the ”just cause” ordinance will also be protected by these laws. Additionally, the city has set minimum buyout amounts for all tenants.
How Are Cash-for-Keys Agreements Currently Regulated in Santa Monica?
The municipal code regulates buyout agreements in several ways. Here are some requirements landlords must meet for the agreement to be enforceable:
- The agreement must be in writing.
- Disclosure of tenant rights must be given to the tenant before signing the agreement.
- The contract must contain specific language informing the tenant of their rights.
- The tenant can change their mind within 30 days after signing the agreement and return to the unit at the same rent.
- The signed agreement must be filed with the city.
You can read more about the requirements in Santa Monica in our previous post about cash for keys agreements.
2024 Changes to Cash for Keys Contracts
New cash for keys rules expand their scope and set new minimums:
- Units covered under the “just cause” ordinance will also be required to comply with buyout regulations. These are apartments built after the rent control ordinance was passed and are covered by the Tenant Protection Act.
- Minimum buyout amounts: All cash-for-keys offers must meet the minimum amounts set by the Santa Monica Municipal Code for permanent relocation:
- Single – $18,250
- 1BR – $25,150
- 2BR or bigger – $34,950
- Buyout agreements will now have to include additional language. Landlords will have to inform tenants that repeated requests for a buyout after tenant refusal in writing is harassment.
This change will not take effect in March 2024 but will be on the November 2024 ballot. We expect it to be approved by voters.
Currently, landlords can evict tenants if they perform unauthorized or unpermitted work on the unit. For example, if a tenant removes a wall or installs a skylight themselves, the landlord has the right to evict the tenant for breach of the lease.
The City Council wants to restrict, if not completely eliminate, this power. Under the new rules, tenants will have new affirmative defenses in unlawful detainer actions, including:
- If the tenant had the landlord’s consent for the alteration, but no permit was obtained due to the landlord’s lack of cooperation.
- If the landlord received a notice of violation or citation from the city but did not notify the tenant.
- If the landlord received a notice of violation or citation, the tenant is unable to appeal the notice or citation, seek a variance, or obtain a permit to legalize the work, and the tenant requested the landlord to take one of these actions but the landlord refused.
Landlords will still be able to collect damages in a civil lawsuit against tenants for non-permitted alterations.
Rent Thresholds for Evictions
Also voted on the November 2024 ballot are “economic thresholds” for evictions, similar to those passed by the City of Los Angeles in 2023 as part of their Just Cause ordinance. This means that evictions in Santa Monica for non-payment of rent cannot be based on a small amount of rent owed.
The minimum amount due to qualify for eviction will be set at 150% of the median rent in Los Angeles County for the corresponding number of bedrooms. The proposed amounts are:
| Studio | 1BR | 2BR | 3BR | 4BR |
| $2,666 | $3,006 | $3,816 | $4,895 | $5,400 |
This means that if a tenant is paying $1,500 per month for a rent-controlled 3-bedroom apartment, the landlord will have to wait four months before filing for eviction if the tenant stops paying rent. Since this change will appear on the ballot, we see a high likelihood that it will pass.
The new anti-harassment laws will increase the maximum monetary penalty for each violation to $20,000.
Stronger Anti-Harassment Laws
Santa Monica already has strong anti-harassment laws in the city charter. These laws allow tenants to collect up to $10,000 per violation against landlords. They also provide for statutory attorney’s fees, punitive damages, and criminal penalties.
Under the new rules, all of the following will be considered harassment:
- Bad-faith discrimination based on housing status.
- Bad-faith refusal by the landlord to accept rent payments.
- Excessive rent increases—when the increase is “significantly above market for the purpose of forcing a tenant to vacate in circumvention of just cause laws.” This will also apply to illegal rent increases on all rental units in the city.
- Unreasonable refusal by the landlord to accept a subtenant or assignment.
- Repeated buyout offers made by the landlord after the tenant has refused a buyout offer in writing.
Expansion of Relocation Assistance Laws
Currently, Santa Monica tenants in rent-controlled units (or those covered by the just cause ordinance) receive relocation assistance from landlords when they are evicted without fault. This typically occurs when the landlord decides to take the unit off the rental market or moves into the unit themselves.
The new rules will add five additional events that trigger relocation assistance for tenants:
- Tenant moves out due to an excessive rent increase.
- Tenant moves out after a temporary relocation lasting longer than six months.
- A code enforcement determination that the landlord’s conduct forced the tenant to move out.
- A health and safety officer determines the unit cannot be repaired, requiring the tenant to relocate.
- Tenant moves out of an illegal or “bootleg” unit that is not permitted for residential use.
The current statutory relocation assistance amounts:
- Single – $18,250
- 1BR – $25,150
- 2BR or bigger – $34,950
Rent Increase Restrictions
The new rules regarding rent increases aim to assist tenants who face substantial rent hikes but are not covered by rent control. These rules will provide an affirmative defense for tenants facing eviction for non-payment of rent following a significant rent increase.
If a tenant can demonstrate that the rent increase was both “bad faith” and “substantial”—meaning it was above market rate and intended to force the tenant to vacate—the tenant cannot be evicted. Evidence of a bad faith rent increase may include any of the following:
- The rent increase occurs within six months after a failed eviction.
- The rent increase occurs within six months after tenants have complained about health and safety issues, harassment, or discrimination.
- The rent increase happens during a price gouging protection period.
These rules will apply to all residential units, including single-family homes and condominiums.
Updated Housing Discrimination Laws
Landlords will no longer be allowed to reject tenants based on their “housing status.” This includes being homeless, living in temporary housing, participating in a voucher program, residing in transitional housing, or staying in shelters. It also includes rejecting tenants due to “gaps in housing history.”
This does not prevent housing providers from requesting a tenant’s housing history or current address. However, landlords cannot reject an applicant solely for those reasons.
Have Questions About the New Santa Monica Tenant Laws?
Early 2024 brings important changes to tenant rights and landlord responsibilities in Santa Monica. At Sinai Law Firm, we’re here to help you navigate these new laws, including cash-for-keys expansions, eviction restrictions, and anti-harassment protections. Contact us today to get the support you need.
