In a noteworthy development, the California Legislature, situated in Sacramento, took a decisive step on Thursday to fortify the safeguards against eviction for tenants and address a glaring loophole in an existing legislation that has enabled landlords to bypass the state’s rent cap.
This pivotal eviction reform bill was among the multitude of bills that received approval during the waning days of an extended legislative session, which also encompassed provisions such as granting unemployment benefits to striking workers and introducing reforms to the state’s mental health system.
It now falls upon the Democratic Governor, Gavin Newsom, to exercise his prerogative and make a determination on these bills by October 14th, either by endorsing them into law, vetoing them, or allowing them to become law without his signature.
The fate of these crucial measures now rests in the hands of Governor Newsom, whose decision will undoubtedly shape the trajectory of tenant rights, labor rights, and mental health services in the state of California.
The rental bill proposed by Democratic state Sen. María Elena Durazo aims to update a significant law that was enacted in 2019.
This landmark law was designed to regulate the eviction process and establish a rent cap, ensuring that tenants are protected from exorbitant rent increases.
The current rent cap is set at 5% plus the inflation rate, with a maximum limit of 10%. However, as the rental market continues to evolve, it is crucial to adapt and refine these regulations to better serve the needs of both tenants and landlords.
By proposing this rental bill, Sen. Durazo seeks to address the changing dynamics of the rental market and ensure that the rental process remains fair and equitable for all parties involved.
This legislation reflects a commitment to balance the interests of tenants, who require stable and affordable housing, with the needs of landlords, who must navigate the challenges of maintaining and managing their properties.
Through this bill, Sen. Durazo demonstrates a thoughtful and proactive approach to addressing the ongoing housing crisis and promoting sustainable and inclusive communities.
The governor, who played a pivotal role in crafting the 2019 law on renter protections, has yet to reveal his stance on the recently proposed eviction legislation, according to the bill sponsors.
The existing law grants landlords the authority to evict tenants for both “at fault” and “no fault” reasons. “At fault” reasons encompass instances such as failure to pay rent on time.
On the other hand, “no fault” rules enable landlords to terminate leases by simply stating the need to relocate into the units, carry out repairs, or withdraw the units from the rental market.
However, advocates for renters have raised concerns about the potential exploitation of “no fault” evictions by some landlords, who use this provision to circumvent the state’s rent cap.
They highlighted a case in Santa Clara County where a landlord evicted tenants under the pretext of needing the units for their relatives, only to relist them at nearly double the original price.
In response to these issues, Durazo’s new bill introduces stricter regulations for landlords who move into their own units or rent to family members.
These landlords must now provide detailed information about the individuals moving in, ensure that the rental is occupied within three months of the eviction, and commit to living in the unit for at least a year.
Additionally, landlords who evict tenants for renovation purposes must include copies of permits or contracts, along with other relevant details, when serving eviction notices.
The proposed legislation aims to address the issue of landlords who fail to fulfill their obligations by allowing evicted tenants to return under the original lease terms.
Additionally, the bill would grant the attorney general, local government, and renters the right to take legal action against landlords for wrongful evictions and illegal rent increases.
Supporters of the bill argue that these changes are necessary to prevent landlords from taking advantage of existing state laws.
Suzie Dershowitz, a representative of Public Advocates, emphasized that the bill would close loopholes and establish enforcement mechanisms, enabling tenants and local governments to hold irresponsible landlords accountable.
However, the bill has faced significant opposition from influential landlord groups, who argue that the proposed changes are excessive.
As a result of their pressure, lawmakers decided to remove a provision that would have reduced the state’s rent cap to 5%.
MENTAL HEALTH SYSTEM
In a significant step towards tackling the pressing issues of mental health and homelessness in the state, senators have given their approval to present two proposals to voters next March.
These proposals, spearheaded by Assemblymember Jacqui Irwin and Democratic Sen. Susan Eggman, aim to bring about a transformative change in the state’s mental health system while also addressing the escalating crisis of homelessness.
Irwin’s measure seeks to authorize the state to borrow a substantial sum of $6.38 billion, which would be dedicated to the construction of new treatment beds and housing facilities.
On the other hand, Eggman’s proposal aims to revamp the existing payment structure for mental and behavioral health programs within counties.
These initiatives collectively represent a comprehensive approach towards improving the lives of those affected by mental health challenges and homelessness, offering a glimmer of hope for a brighter future in the state.
Governor Newsom expressed his support for the measures, stating that they are a crucial part of addressing the homelessness crisis in California.
He emphasized that it is now up to the voters to approve these significant changes to the state’s mental health system, which would be the largest expansion in over 50 years.
Assemblywoman Irwin, the sponsor of one of the bills, highlighted the importance of her proposal, which would allocate funds for the construction of 10,000 treatment beds and housing.
She also emphasized the need to provide support for veterans with mental illness and substance abuse issues, as well as grants for local governments and indigenous tribes.
However, Republican Senator Brian Jones criticized Irwin’s proposal, arguing that it is not financially responsible to take on more debt given the state’s ongoing budget deficits.
Additionally, Assemblywoman Eggman’s bill, which was unanimously passed in the Senate, aims to restrict how local governments can use a special tax on millionaires that has traditionally funded mental health programs.
UNEMPLOYMENT BENEFITS FOR STRIKING WORKERS
In a significant development, lawmakers have recently voted in favor of a bill that would render striking workers eligible for state unemployment benefits.
This decision, if approved by Governor Newsom, would have far-reaching implications, benefiting not only Southern California hotel workers but also Hollywood actors and writers who have been engaged in strikes for an extended period of time.
However, the outcome remains uncertain as Governor Newsom has yet to sign the bill into law. One of the key concerns surrounding this legislation is the precarious financial state of California’s unemployment benefits fund, which is currently insolvent.
Business groups have expressed apprehension, arguing that expanding eligibility for benefits would exacerbate the fund’s already dire situation.
Nevertheless, State Sen. Anthony Portantino has sought to allay these concerns, asserting that the bill’s impact on the fund would be minimal.
He emphasized that workers would only be eligible for benefits if their strike lasts for a minimum of two weeks, noting that most strikes rarely endure for such a prolonged duration.
Portantino also underscored the arduous nature of strikes, dispelling any romanticized notions and highlighting the hardships endured by those who participate in such actions.
CONSERVATORSHIP LAW REFORM
The Assembly has recently approved legislation aimed at reforming the state’s conservatorship system, a move that has sparked concerns about potential increases in involuntary detentions due to mental illness.
The bill, authored by Eggman, seeks to facilitate the provision of care for individuals suffering from untreated mental illness or addiction to alcohol and drugs, many of whom find themselves homeless.
Currently, local government authorities claim their hands are tied when individuals refuse help. However, if this legislation passes, it would grant authorities greater latitude in providing care.
Before the bill can become law, it must undergo a final vote in the Senate and receive Governor Newsom’s approval.
While Newsom has expressed support for Eggman’s direction, he has not yet committed to signing the bill. If the legislation does pass, the changes will not take effect until 2026.
One significant aspect of the bill is an expanded definition of “gravely disabled,” which would now include individuals unable to meet their basic needs, such as food and shelter, due to untreated mental illness or substance abuse.
Despite the bill’s intentions, opponents, including disability rights advocates, fear that it could lead to increased incarcerations and the violation of fundamental rights.
This legislation is part of the state’s ongoing efforts to reform its mental health system, with Newsom having signed a law last year that established a new court process allowing family members and others to seek a judge’s intervention in creating treatment plans for individuals with specific diagnoses, such as schizophrenia.