1. Except as otherwise provided by this section, beginning January 1, 1999, a landlord may set the initial rental rate for the next tenant at any amount.
2. Eligibility for Upward Rent Adjustment. No upward adjustment in the maximum allowable rent may be taken pursuant to this section if any of the following are true:
(a) The previous tenancy was terminated by the landlord by notice pursuant to Civil Code Section
1946, or was terminated upon a change in the terms of the tenancy noticed pursuant to Civil Code Section
827, except a change permitted by law in the amount of rents or fees.
(b) For tenancies created on or after January 1, 2000, maximum allowable rent shall be the initial rental rate established for the tenancy, based upon the monthly amount actually demanded, received, or collected, plus any adjustments implemented under this chapter. However, the maximum allowable rent shall be the last rent legally charged the previous tenant under the following circumstances:
(i) The rental unit has been cited in an inspection report by an appropriate governmental agency which has determined that the rental unit contains serious health, safety, fire, or building code violations, as defined by Section
17920.3 of the Health and Safety Code;
(ii) The violation(s) is not the result of a disaster;
(iii) The inspection report was issued at least sixty days prior to the date of the vacancy;
(iv) The violation(s) listed in the inspection report remained unabated when the prior tenant vacated and had remained unabated for sixty days or for a longer period of time; and
(v) The agency issuing the inspection report has not granted an extension of time beyond sixty days, or an extension of time has been granted but the violations remain unabated after the extension of time has passed.
(c) The vacancy on which the rent adjustment is based was not a voluntary vacancy because it resulted from conduct of the landlord or the landlord's agent which constituted harassment prohibited by law, constructive eviction, or a breach of the covenant of quiet enjoyment of the property. The initial determination that a vacancy was not voluntary may be made administratively based on information received by the Department, subject to the owner's right to file an administrative appeal with the Director to establish whether or not the vacancy was voluntary and to determine the maximum allowable rent.
(d) The prior tenant did not have a bona fide landlord-tenant relationship with the property owner or occupied the property for less than six months and principally for the purpose of vacating the property to establish eligibility for a vacancy rent increase under this title.
(e) The previous tenancy was terminated as a result of the filing of a
Notice of Intent to Withdraw pursuant to Government Code Sections
7060 through
7060.7 (the Ellis Act), or the previous tenancy was terminated pursuant to an owner-relative occupancy, and the owner-relative occupant has now moved out of the unit. For the purposes of this section, an owner-relative occupant is not a tenant.
If the eviction was pursuant to the Ellis Act, the landlord shall not be entitled to set an initial rent for a period of five years after the notice of intent to withdraw is filed with the city (whether or not the notice of intent to withdraw is rescinded or the withdraw of the accommodations is completed), or the five-year period after the accommodations are withdrawn, whichever period is later.
If the eviction was pursuant to an owner-relative occupancy, the initial rental rate charged to a new tenant shall be the last lawful rent charged the tenant evicted for such owner-relative occupancy, augmented by any intervening annual general adjustments.
(f) The previous tenancy has been terminated upon the landlord's termination or failure to renew a contract or recorded agreement with a government agency that provides for a rent limitation to a qualified tenant. In the event that a landlord terminates or fails to renew such contract or recorded agreement, the landlord shall not be eligible to set an initial rent for three years following the date of the termination or non-renewal of the contract agreement. For any new tenancy established during the three-year period, the rental rate for a new tenancy established in the vacated dwelling unit shall be at the same rate as the rent under the terminated or non-renewed contract or recorded agreement with a governmental agency that provided for a rent limitation to a qualified tenant, plus any increases authorized under this title after the termination or cancellation of the contract or recorded agreement.
(i) In the event that a landlord cancels or opts not to renew a contract or recorded agreement as described in this subsection, the landlord must provide the affected tenant at least ninety days' written notice. For ninety days after the date on which the landlord's notice to the tenant is effective, the tenant may not be charged more than the tenant's share of rent as calculated in the contract or recorded agreement with the governmental agency. Notice under this subparagraph is effective when it is served personally on the tenant, or on the date that the notice is sent to the tenant via first class mail, postage prepaid.
(ii) Subsection (f) does not apply to any new tenancy of twelve months' or more duration established after January 1, 2000, pursuant to the owner's contract or recorded agreement with a governmental agency, that provides for a rent limitation to a qualified tenant, unless the prior vacancy was pursuant to a non-renewed or canceled contract or recorded agreement with a governmental agency that provides for a rent limitation to a qualified tenant as set forth in that subparagraph.
(g) The current tenant has moved to an available rental unit of the same property following the tenant’s request for a reasonable accommodation relating to the tenant's physical disability, after complying with any requirement to engage in an interactive process, including Sections
12177 to
12180, inclusive, of Title 2 of the California Code of Regulations.
(i) Any tenancy created by a move pursuant to this subsection (g) shall retain the lease at the same rental rate and terms of the existing lease provided all the following apply:
(A) The move is determined to be necessary to accommodate the tenant’s physical disability related to mobility;
(B) There is no operational elevator that serves the floor of the tenant’s current rental unit;
(C) The new rental unit is in the same building or on the same parcel with at least four other rental units and shares the same landlord;
(E) The landlord shall continue to receive a just and reasonable return as required by Section
17.60.010 of this title, and nothing herein shall preclude a landlord from seeking a rent adjustment pursuant to Section
17.44.030 of this title; and
(F) The tenant, who is not subject to eviction for nonpayment and who has a permanent physical disability as defined in subdivision (m) of Section
12926 of the California Government Code and that is related to mobility, provides the owner a written request to move into an available comparable or smaller rental unit located on an accessible floor of the property prior to that rental unit becoming available.
(ii) Any security deposit paid by the tenant in connection with their rental of the rental unit being vacated shall be handled in accordance with Section
1950.5 of the California Civil Code upon the tenant’s move pursuant to this subsection (g).
(iii) This subsection (g) shall not apply unless all of the tenants on the lease agree to move to the available comparable or smaller rental unit located on an accessible floor of the property pursuant to the request of the tenant with the physical disability.
(iv) For purposes of this subsection (g), "comparable or smaller rental unit" means a rental unit that has the same or less than the number of bedrooms and bathrooms, square footage, and parking spaces as the rental unit being vacated.
(v) This subsection (g) shall not apply if the landlord, or their spouse, domestic partner, children, grandchildren, parents, or grandparents, intend to occupy the available comparable or smaller rental unit located on the accessible floor of the property.
(vi) The requirements set forth in this subsection (g) shall be in addition to those of any other fair housing law, including, but not limited to, the California Fair Employment Act (Part 2.8 (commencing with Section
12900) of Division 3 of Title
2 of the California Government Code), the Unruh Civil Rights Act (Section 51), the federal Fair Housing Act (42 U.S.C. Section
3601 et seq.), and any implementing regulations thereunder.
(vii) This subsection (g) shall not be construed to prevent landlords of residential real property from granting reasonable accommodations to change rental units and retain the existing lease at the same rental rate and terms in order to accommodate any disability, as defined in subdivision (m) of Section
12926 of the California Government Code.
(viii) Any move to the available comparable or smaller rental unit located on an accessible floor of the property pursuant to the request of the tenant with the physical disability pursuant to this subsection (g) shall be recorded with the Department pursuant to the re-registration requirement set forth in Section
17.28.020(b) of this title.
(Prior code § 6410(b); Ord. 85-59 § 1, 1985; Ord. 85-59U § 1, 1985; Ord. 85-79 § 9, 1985; Ord. 85-79U § 9, 1985; Ord. 85-84U § 3, 1985; Ord. 85-92 § 1, 1985; Ord. 85-92U § 1, 1985; Ord. 87-135 § 9, 1987; Ord. 87-135U § 9, 1987; Ord. 87-168 § 1, 1987; Ord. 87-172 § 1, 1987; Ord. 89-238 § 2, 1989; Ord. 89-244 §§ 1, 2, 1989; Ord. 91-311 § 3, 1991; Ord. 94-428 § 4, 1994; Ord. 95-449U § 9, 1995; Ord. 99-548 §§ 9, 10, 13, 1999; Ord. 00-567 § 1, 2000; Ord. 03-659 §§ 1, 2, 3, 2003; Ord. 06-731 § 2, 2006; Ord. 13-925U § 2, 2013; Ord. 14-939 § 1, 2014; Ord. 24-27, 10/7/2024)