New Santa Monica Tenant Laws 2024
There are new Santa Monica tenant laws coming early 2024. City council voted and approved the new changes January 23, 2024, and they are expected to take effect early March. The changes are set to impact tenant relocation awards, cash for keys, anti-harassment laws, and evictions. Here are some of the changes coming in 2024: Changes to Santa Monica Cash-for-Keys Agreements The scope of cash for keys regulation will expand in 2024. The current law only applies to cash for keys agreement for rent controlled units. Starting 2024, tenants under the just cause ordinance will also be protected by these laws. The city also set minimum buyout amounts for everyone. How are cash for keys agreements currently regulated in Santa Monica The municipal code regulates buyout agreements in several ways. Here are some of the things landlords have to do in order for the agreement to enforceable: 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: Restrictions on evictions for unauthorized alterations This change will not take effect March 2024, but will be on the November 2024 ballot. We expect it to pass by voters. Currently landlords can evict tenants when they perform unauthorized or unpermitted work on the unit. For example, if a tenant removes a wall or self install a skylight, the landlord has the right to evict the tenant for breach of the lease. The city council wants to restrict this power, if not completely eliminate it. Under the new rules, tenant will have new affirmative defenses in an unlawful detainer action: Landlords will still be able to collect damages in a civil lawsuit against the tenant for non-permitted alterations. Rent thresholds for evictions Also voted on in November 2024 ballot are ‘economical thresholds’ for evictions, just like City of Los Angeles passed in 2023 in the Just Cause changes. This means that evictions in Santa Monica for non-payment of rent can’t be for a small amount of rent due and unpaid. The amount will be equal to 150% of median rent in LA County for the number of bedrooms. The proposed amounts: Studio 1BR 2BR 3BR 4BR $2,666 $3,006 $3,816 $4,895 $5,400 Proposed minimum rent due before eviction for non-payment of rent 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 4 months until they can file an eviction if the tenant stops paying rent. If this change will appear on the ballot we see a high likelihood this will pass. Stronger anti-harassment laws Santa Monica already has a very strong anti-harassment laws in the city charter. It allows tenants to collect up to $10,000 per violation against the landlord. It also has a statutory attorney’s fees and punitive damages, in addition to criminal penalties. All of the following will be considered harassment under the new rules: The new anti-harassment laws will increase the maximum monetary penalty for each violation to $20,000. Expansion of relocation assistance laws Currently Santa Monica tenants in rent controlled (or under the just cause ordinance) units received relocation assistance to landlords when they are evicted for no-fault. This occurs when the landlord decides to take the unit off the rental market, or in an owner move-in to the unit. New rules will add five new ‘events’ that will trigger relocation assistance to tenants: The current statutory relocation assistance amounts: Rent increase restrictions The new rules regarding rent increases are aimed to assist tenants who face substantial rent increases since they are not covered by rent control. The new rules will provide an affirmative defense to a tenant who is facing an eviction for non-payment of rent after a substantial rent increase. If the tenant can show a ‘bad faith’ and ‘substantial’ rent increase above market rate, with the intent to influence the tenant to vacate – the tenant will not be evicted. Evidence of bad faith rent increase can be any of the following: This will impact all residential units, including single family homes and condos. Updated housing discrimination laws Landlords will no longer be able to reject a tenant due to their ‘housing status’. That includes being homeless, living in temporary hosing, a voucher program, transitional housing, temporary housing, or shelters. That also includes ‘gaps in housing history’. There is nothing to suggest that housing providers would not be able to ask for housing history or current address. Rather, the reason for rejecting an applicant cannot be for that reason.
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