Costa-Hawkins Rental Housing Act: rental rates.

Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. The act generally authorizes an owner of residential real property to establish the initial rental rate for a dwelling or unit, except in specified circumstances, including, (1) when the residential real property has a certificate of occupancy issued after February 1, 1995, (2) when the residential real property has already been exempt from the residential rent control ordinance of a public entity on or before February 1, 1995, pursuant to a local exemption for newly constructed units, and (3) when the residential real property is alienable and separate from title to any other dwelling units, except as specified. This bill would instead authorize an owner of residential real property to establish the initial rental rate for a dwelling or unit when the residential real property has been issued a certificate of occupancy within the 28 years preceding the date on which the owner seeks to establish a rental rate under these provisions, except as specified for dwellings or units exempt from the residential rent control ordinance of a public entity on or before February 1, 1995, pursuant to a local exemption for newly constructed units. The bill would also remove the above-described authorizations for an owner of residential real property to establish the initial rental rate if the residential real property has already been exempt from the residential rent control pursuant to an ordinance of a public entity on or before February 1, 1995.