Senate Bill No. 18

CHAPTER 134

An act to amend Section 1161b of the Code of Civil Procedure, relating to housing.

[ Approved by Governor July 30, 2019. Filed with Secretary of State July 30, 2019. ]

LEGISLATIVE COUNSEL'S DIGEST

SB 18, Skinner. Keep Californians Housed Act.

Existing law requires a tenant or subtenant in possession of a rental housing unit under a month-to-month lease at the time that property is sold in foreclosure to be provided 90 days’ written notice to quit before the tenant or subtenant may be removed from the property. Existing law also provides tenants or subtenants holding possession of a rental housing unit under a fixed-term residential lease entered into before transfer of title at the foreclosure sale the right to possession until the end of the lease term, except in specified circumstances. Existing law repeals these provisions as of December 31, 2019.

This bill would delete the above-described repeal date, thereby extending the operation of these provisions indefinitely.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

This act shall be known, and may be cited, as the Keep Californians Housed Act.

SEC. 2.

The Legislature finds and declares the following:

(a) California is experiencing a rental housing crisis. According to analysis by the National Low Income Housing Coalition, California has only 22 affordable and available rental homes for every 100 extremely low income households.

(b) Due in part to lack of supply, California cities have some of the highest rents in the nation. San Francisco’s rent is the most expensive in the country, averaging $3,300 per month for a one-bedroom unit, and San Jose, Oakland, Los Angeles, and Anaheim are all in the top 10 for highest rents in the nation.

(c) About 29 percent of California renters spend more than one-half of their income on rent, which can make it difficult for families to afford basic items like food, clothing, transportation, and health care. In 2015, more than 4 in 10 households had housing costs that exceeded 30 percent of household income.

(d) The housing crisis harms families across California and has resulted in higher levels of homelessness or displacement of previously housed individuals and families. One-quarter of the nation’s homeless population, and half of the nation’s unsheltered homeless, now live in California.

SEC. 3.

Section 1161b of the Code of Civil Procedure is amended to read:

1161b.

(a) Notwithstanding Section 1161a, a tenant or subtenant in possession of a rental housing unit under a month-to-month lease or periodic tenancy at the time the property is sold in foreclosure shall be given 90 days’ written notice to quit pursuant to Section 1162 before the tenant or subtenant may be removed from the property as prescribed in this chapter.

(b) In addition to the rights set forth in subdivision (a), tenants or subtenants holding possession of a rental housing unit under a fixed-term residential lease entered into before transfer of title at the foreclosure sale shall have the right to possession until the end of the lease term, and all rights and obligations under the lease shall survive foreclosure, except that the tenancy may be terminated upon 90 days’ written notice to quit pursuant to subdivision (a) if any of the following conditions apply:

(1) The purchaser or successor in interest will occupy the housing unit as a primary residence.

(2) The lessee is the mortgagor or the child, spouse, or parent of the mortgagor.

(3) The lease was not the result of an arms’ length transaction.

(4) The lease requires the receipt of rent that is substantially less than fair market rent for the property, except when rent is reduced or subsidized due to a federal, state, or local subsidy or law.

(c) The purchaser or successor in interest shall bear the burden of proof in establishing that a fixed-term residential lease is not entitled to protection under subdivision (b).

(d) This section shall not apply if any party to the note remains in the property as a tenant, subtenant, or occupant.

(e) Nothing in this section is intended to affect any local just cause eviction ordinance. This section does not, and shall not be construed to, affect the authority of a public entity that otherwise exists to regulate or monitor the basis for eviction.