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Capitol Highlights, July 2001
by Debra Carlton, CAA Legislative Division

CALIFORNIA ASSEMBLY CONSIDERS
90-DAY TERMINATION NOTICE

The California Assembly is now considering a measure that would, if signed by the Governor, change a law that has been in place in California for 120 years. Senate Bill 985 requires rental property owners to provide tenants a 90-day notice prior to terminating a tenancy without cause. Current law allows both tenants and owners to provide a 30-day notice to terminate a month-to-month tenancy. The sponsors of this legislation— " the tenant organizations— argue that it's not possible for a tenant to find replacement housing with only 30 days notice and that some families become homeless when they cannot find affordable, replacement shelter after their funds are exhausted living in local motels. They argue that the tight rental housing market, which has resulted in extremely low vacancy rates, have prompted rental property owners to serve a 30-day notice on tenants so they can remodel the rental units. Owners, in turn, move in "more desirable" tenants who can pay higher rents, or so the argument goes. These arguments were compelling to 22 of the 40 Senators when the bill came for a vote on the Senate Floor in May despite all of your letters asking for their no votes; the 22 "aye" votes came from Democrats, and the 15 "no" votes came from the Republicans as well as Fresno Democrat Jim Costa; three Democrats did not vote: Martha Escutia (D-Los Angeles), Don Perata (D-Alameda), and Richard Polanco (D-Los Angeles).

Those Senators who refused to give the bill their support understood the arguments of the California Apartment Association and all of you who wrote letters and made telephone calls. A longer notice would certainly place another impediment on the operation of rental housing in California, especially at a time when fewer potential owners are entering the rental housing business due to adverse conditions and laws. They understood that a 30-day notice is an effective tool for managing the property and that a neighbor will be required to suffer a problem tenant three times longer than they will under current law.

In many cases today, tenants stop paying rent when they receive a 30-day termination notice. A 90-day notice will certainly exacerbate these events, and in the end, the remaining tenants will face higher costs when they are forced to make up the difference due to the owner's lost rents. At the same time, current law provides adequate protections for tenants who believe they face discrimination or other retaliatory action by rental property owners who serve a 30-day notice.

At this writing, SB 985 has moved to the Assembly and will be set for a hearing in either the Housing or the Judiciary Committee. While Democrats outnumber Republicans in these Committees as well as on the Assembly Floor, you can make a difference. Watch for Legislative Alerts from CAA and your local chapters, requesting your action. You can also go to CAA's website now at http://www.capwiz.com/caanet/officials/state/?state=CA, plug in your zip code, pull a list of the assembly members that represent you, and send each of them a letter asking for their "no" vote if the SB 985 comes before them on the Assembly Floor. Sample letters and more information can be found at this site. With your help, the 90-day notice will not be in your future.