Bill > A5533

Introduced Session

This bill establishes standards for the expiration of rental housing affordability controls, such as extending the rental protections provided for certain lower-income households and requiring written notice before the controls may expire. Specifically, the bill provides that if upon the expiration of the affordability controls, the household occupying the restricted rental unit continues to earn a gross annual income of not more than 80 percent of the regional median income, then the landlord may not increase rent in a manner that conflicts with the affordability controls until the household vacates the rental unit. Alternatively, if at such time the household earns an income in excess of 80 percent of the regional median income, then the landlord may lease the rental unit to any tenant at fair market rent beginning on the next scheduled lease renewal or after 60 days, whichever occurs later. The bill provides that, no more than 180 days, and no less than 90 days prior to the expiration of the affordability controls of a restricted rental unit, the administrative agent would be required to conduct an income certification for the household occupying the unit in order to determine the appropriate course of action regarding rent increases on the unit. The bill defines an "administrative agent" as the entity responsible for administering the affordability controls with respect to specific restricted units. Further, the bill provides that as long as the household occupying a restricted rental unit continues to reside in the unit following affordability control expiration, and continues to earn a gross annual income of not more than 80 percent of the regional median income, the administrative agent would be required to conduct an additional income certification on an annual or biennial basis until the household is found to earn a gross annual income in excess of 80 percent of the regional median income, at which time the rent restriction could be lifted. The bill also requires the lease or renewal agreement of a restricted rental unit to contain a prominently displayed and highlighted provision that states the date on which the affordability controls will expire. If the lease or renewal agreement does not contain this provision, then the landlord may not increase rent in a manner that conflicts with the affordability controls until the next scheduled lease renewal. In addition, the bill requires the landlord of a restricted rental unit to provide the tenant with written notice not less than 120 days before the scheduled expiration of the affordability controls. The written notice is required, at a minimum, to include: (1) the date on which the affordability controls will expire; (2) the amount of any proposed rent increase; and (3) an explanation that if the household occupying the rental unit continues to earn a gross annual income of not more than 80 percent of the regional median income, the rent may not be increased in a manner that conflicts with the affordability controls. If the landlord fails to provide this notice, then following the expiration of the affordability controls, the landlord may not increase rent in a manner that conflicts with the affordability controls until the next scheduled lease renewal, or after 120 days following the provision of the written notice, whichever occurs later.

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Angela Mcknight (D)*,  Verlina Reynolds-Jackson (D)*,  Bill Spearman (D)*, 

Assembly Housing Hearing (15:00 5/5/2021 Registration Form) (on 05/05/2021)