CAILFORNIA LANDLORDS NEWS FROM AAOC JUNE 13, 2007:
SB 464 is taken off calendar. Govt Code Section 7060 lives to
protect owner’s right to take building off rental market. 

 BILL NUMBER: SB 464   AMENDED
        BILL TEXT
         AMENDED IN SENATE  MAY 31, 2007
        AMENDED IN SENATE  APRIL 10, 2007
 INTRODUCED BY   Senator Kuehl
    (   Coauthor:   Senator   Migden
  ) 
    (   Coauthor:   Assembly Member  
Leno   ) 
                         FEBRUARY 21, 2007
    An act to amend Sections 7060 and 7060.4 of the Government Code,
relating to rental property.
 
 
        LEGISLATIVE COUNSEL'S DIGEST
 
 
   SB 464, as amended, Kuehl. Rental property: public entity
restrictions.
   Existing law generally prohibits public entities from adopting any
statute, ordinance, or regulation, or taking any administrative
action, to compel the owner of residential real property to offer or
to continue to offer accommodations, as defined, in the property for
rent or lease.
   This bill would specify that this prohibition against local action
only applies with respect to owners of residential real property who
have owned the property for  5   3  years
and who acquired ownership of the property on or after March 27,
2007.
   Existing law authorizes, subject to specified provisions, any
public entity that has in effect any system of rent control to
require the owner to notify the entity of an intention to withdraw
those accommodations from rent or lease. This authorization provides
that the rent control system may establish the date on which the
accommodations are withdrawn from rent or lease 120 days from the
delivery in person or by first-class mail of that notice to the
public entity, unless the tenant or lessee is at least 62 years of
age or disabled and has lived in his or her accommodations for at
least one year prior to the date of delivery to the public entity of
the notice of intent to withdraw, in which case the date of
withdrawal of the accommodations of that tenant or lessee is required
to be extended to one year after the date of delivery of that notice
to the public entity. Existing law specifies that this one-year
extension occurs only if the tenant or lessee gives written notice of
his or her entitlement to an extension to the owner within 60 days
of the date of delivery to the public entity of the notice of intent
to withdraw.
   This bill would instead specify that the rent control system of a
public entity may require that the one-year extension applies to all
tenancies in the applicable accommodations if a tenant or lessee who
is at least 62 years of age or disabled has lived in the
accommodations for at least one year prior to the delivery of notice
to a public entity and gives the required 60-day notice to the owner.
This bill would require an owner, as applicable in these
circumstances, to notify all tenants of the one-year extension. This
bill would make conforming changes to related provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
 
 
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
 
  SECTION 1.  Section 7060 of the Government Code is amended to read:
 
   7060.  (a) A public entity, as defined in Section 811.2, shall
not, by statute, ordinance, or regulation, or by administrative
action implementing any statute, ordinance, or regulation, compel the
owner of any residential real property who has owned the property
for at least  five   three  years to offer,
or to continue to offer, accommodations in the property for rent or
lease, except for guestrooms or efficiency units within a residential
hotel, as defined in Section 50519 of the Health and Safety Code, if
the residential hotel meets all of the following conditions:
   (1) The residential hotel is located in a city and county, or in a
city with a population of over 1,000,000.
   (2) The residential hotel has a permit of occupancy issued prior
to January 1, 1990.
   (3) The residential hotel did not send a notice of intent to
withdraw the accommodations from rent or lease pursuant to
subdivision (a) of Section 7060.4 that was delivered to the public
entity prior to January 1, 2004.
   (b) For the purposes of this chapter, the following definitions
apply:
   (1) "Accommodations" means either of the following:
   (A) The residential rental units in any detached physical
structure containing four or more residential rental units.
   (B) With respect to a detached physical structure containing three
or fewer residential rental units, the residential rental units in
that structure and in any other structure located on the same parcel
of land, including any detached physical structure specified in
subparagraph (A).
   (2) "Disabled" means a person with a disability, as defined in
Section 12955.3 of the Government Code.
   (c) The amendment to subdivision (a) of this section, enacted
during the 2007-08 Regular Session, shall apply only to owners who
acquired ownership of property pursuant to a purchase agreement or
contract for exchange entered into on or after March 27, 2007.
  SEC. 2.  Section 7060.4 of the Government Code is amended to read:
   7060.4.  (a) (1) Any public entity which, by a valid exercise of
its police power, has in effect any control or system of control on
the price at which accommodations are offered for rent or lease, may
require by statute or ordinance, or by regulation as specified in
Section 7060.5, that the owner notify the entity of an intention to
withdraw those accommodations from rent or lease and may require that
the notice contain statements, under penalty of perjury, providing
information on the number of accommodations, the address or location
of those accommodations, the name or names of the tenants or lessees
of the accommodations, and the rent applicable to each residential
rental unit.
   (2) Information respecting the name or names of the tenants, the
rent applicable to any residential rental unit, or the total number
of accommodations, is confidential information and for purposes of
this chapter shall be treated as confidential information by any
public entity for purposes of the Information Practices Act of 1977
(Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of
Division 3 of the Civil Code). A public entity shall, to the extent
required by the preceding sentence, be considered an "agency," as
defined by subdivision (d) of Section 1798.3 of the Civil Code.
   (b) The statute, ordinance, or regulation of the public entity may
require that the owner record with the county recorder a memorandum
summarizing the provisions, other than the confidential provisions,
of the notice in a form which shall be prescribed by the statute,
ordinance, or regulation, and require a certification with that
notice that actions have been initiated as required by law to
terminate any existing tenancies. In that situation, the date on
which the accommodations are withdrawn from rent or lease for
purposes of this chapter is 120 days from the delivery in person or
by first-class mail of that notice to the public entity. However, if
any tenant or lessee is at least 62 years of age or disabled, and has
lived in his or her accommodations for at least one year prior to
the date of delivery to the public entity of the notice of intent to
withdraw pursuant to subdivision (a), then the date of withdrawal of
the accommodations shall be extended to one year after the date of
delivery of that notice to the public entity, provided that a tenant
or lessee gives written notice of his or her entitlement to an
extension to the owner within 60 days of the date of delivery to the
public entity of the notice of intent to withdraw. In that situation,
the following provisions shall apply:
   (1) The tenancies shall be continued on the same terms and
conditions as existed on the date of delivery to the public entity of
the notice of intent to withdraw, subject to any adjustments
otherwise available under the system of control.
   (2) No party shall be relieved of the duty to perform any
obligation under the lease or rental agreement.
   (3) Within 30 days of the notification by a tenant or lessee to
the owner of his or her entitlement to an extension, the owner shall
give written notice to the public entity and all other tenants of a
claim that the tenant or lessee is entitled to stay in their
accommodations for one year after date of delivery to the public
entity of the notice of intent to withdraw.
   (4) Within 90 days of date of delivery to the public entity of the
notice of intent to withdraw, the owner shall give written notice to
the public entity and the affected tenants that the date of
withdrawal has been extended to one year.
   (c) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify any tenant or lessee to be displaced pursuant to this chapter
of the following:
   (1) That the public entity has been notified pursuant to
subdivision (a).
   (2) That the notice to the public entity specified the name and
the amount of rent paid by the tenant or lessee as an occupant of the
accommodations.
   (3) The date of withdrawal has been extended to one year pursuant
to subdivision (b).
   (4) The amount of rent the owner specified in the notice to the
public entity.
   (5) Notice to the tenant or lessee of his or her rights under
paragraph (3) of subdivision (b) of Section 7060.2.
   (d) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify the public entity in writing of an intention to again offer

the accommodations for rent or lease.