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California multifamily developer guides

Rent Control & Tenant Protections

AB 1482 caps and just cause, Costa-Hawkins exemptions and vacancy decontrol, local ordinance layers, federal preemption for HUD-insured assets, and the Ellis Act exit — what actually binds rents in a California underwrite.

AB 1482 and Costa-Hawkins: modeling rent caps and exemptions

Statewide caps of 5% + CPI (max 10%), a rolling 15-year new-construction exemption, and full mark-to-market on vacancy — the baseline every California rent roll is modeled against.

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Local ordinances vs. state and federal law: which layer wins

Every asset sits under a stack — federal, state, local. Underwrite the most restrictive rule at each layer, and know which layers preempt the others.

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Ellis Act withdrawals: the exit ramp and its long tail

You can always leave the rental business — all units, proper notice — but the statute attaches up to a decade of rollbacks, re-offer rights and replacement consequences to the site.

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Just-cause eviction under Civ. Code § 1946.2: operating inside the rules

After 12 months of occupancy, every covered termination needs a statutory cause — and every no-fault notice owes one month's rent in relocation assistance within 15 days.

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Substantial-remodel evictions: the narrow lane for renovation-driven turnover

Permit-required structural, electrical, plumbing, or mechanical work that forces 30+ consecutive days of vacancy — nothing less clears the bar, and since SB 567 the notice has to prove it.

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Vouchers and source-of-income rules: Section 8 in a market-rate underwrite

"No Section 8" is off the table in California — so the underwrite turns on what the PHA will actually pay (rent reasonableness and the payment standard) and what inspections will cost.

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More developer guides

Every rule cited in these guides links to the verbatim statute or regulation in the California Code Library and the federal housing-law library.

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