Landlords with properties affected by the Costa-Hawkins Housing Act should be aware of a recent ruling which reached the California Appellate Court in May of 2020. In the case of Owens vs City of Oakland Housing, Residential Rent and Relocation Boards, Jonathan Owens, the landlord, owned a four-bedroom single-family home. He lived in one of the rooms and leased out the remaining three rooms to three separate tenants. A tenant filed a complaint asserting there was no rent concession while the property was under construction. Instead of giving an adjustment during the construction period, Owens informed the tenant the property was not subject to rent control because it was a single-family home: he terminated the lease.

Below is an excerpt from the article available on natlawreview.com:

“In its decision, the court focused on the definition of a “dwelling unit” as used in the exception found in Civil Code section 1954.52(a)(3)(A), which provides that “an owner of residential real property may establish the initial and all subsequent rental rates for a dwelling or a unit about which the following is true…It is alienable separate from the title to any other dwelling unit….” . While the landlord defined the dwelling unit as his single-family home; the court, after analyzing the statutory definitions of the term, the determined that the dwelling unit at issue was the separate room being rented to the tenant.[2] As a result, the landlord had converted his single unit dwelling into a multi-unit dwelling that was subject to Oakland’s Rent Adjustment Program since the individual rooms were not alienable separate from the title to any other dwelling unit.”

Ultimately, tenants renting a room in a single-family home or condominium are entitled to protection established by Oaklands’s Rent Adjustment Program. Landlords who seek protection from rent control through similar leasing practices or exemptions may soon find those considerations disappearing. If you are an investor or landlord of real estate property in California, specifically Los Angeles, you should consider reviewing lease agreements to ensure the entire home or condominium is defined as the “dwelling unit”. As always, please seek legal counsel before entering any lease agreement as there could be long-lasting impacts on the property.

Jonathan J. Lo - Esq

Jonathan J. Lo is a junior partner at the LO&LO LLP.  He joined the firm in 2009 and focuses on the areas of individual and corporate bankruptcy law and estate planning matters. He also has extensive experience in the areas of contract review, litigation, civil matters, and criminal defense.

Jonathan received his Bachelor of Arts in Economics from the University of California, San Diego and obtained his Juris Doctorate at Southwestern School of Law in Los Angeles. During law school, he served as a judicial extern for a federal bankruptcy judge in the United States Bankruptcy Court in Los Angeles, where he drafted memoranda analyzing legal issues and recommending outcomes in Chapter 11 and 7 bankruptcy matters. Jonathan was admitted to the California Bar in 2015 and was selected to the Top Attorney’s list by Pasadena Magazine in 2018 and 2019.

 

 

Real Estate Attorney Lo & Lo. LP

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1. Where did you grow up?  What do you recall about the city growing up? 

I grew up in San Marino and attended the San Marino school system, graduating in 2004.  Great area to grow up in with good education, deep traditions, friendly people, and a safe neighborhood.  Basically, no worries as a kid!

2. Why did you pick to have your office in Alhambra?

My father started the practice in 1981 as a solo practitioner.  His first office was in Monterey Park, then he moved the office to Alhambra location in the early 90’s.  I believe he chose to move his office to Alhambra mainly because it its convenient proximity to San Marino, where we lived.

3. What are some of your favorite restaurants in the SGV?

I have a few favorite restaurants from Pharos, Pepe’s, The Hat, B-Mans, Golden Deli, and Savoy Kitchen (Hainan Chicken).  All these restaurants are just delicious, nom nom!

4. What drew you into become a lawyer?

It kind of just grew on me.  When I was middle in school my dream was to be a pro golfer.  Later on in college, I became interested in doing international business in Asia.  While studying Economics at University of California San Diego, and I went to study abroad in Shanghai for half a year.  During my time abroad I realized that conducting business requires a certain lifestyle to be successful, which I just didn’t see for myself.  So, I came back to work under my father to pass the time.  The more I did, the more people I helped, the more fulfilled I was. I decided to sign up for law school and the rest is history. The exciting part of being a lawyer is that I get to represent and learn from the very businessmen that I was aspired to be.

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Tel: 626-289-8838
Email: jlo@lolollp.com
Website: www.lolollp.com.com

Address: 506 N. Garfield Ave, Suite 280
Alhambra, Ca 91801

5. Who can benefit the most from your services?

Individuals and business owners who need guidance during a business or real estate transactions and legal representation if a dispute has already arisen. We also help families and individuals who need estate planning services such as a living trust, durable power of attorneys, and advanced healthcare directives. And finally, bankruptcy services to help Individuals and businesses that are overwhelmed with debt and struggling to make ends meet.

6. What can we do to protect ourselves when purchasing real estate?

Be diligent and informed of the buying and selling process to avoid misunderstandings and disputes.  Retain the services of a real estate agent or an attorney to help you every step of the way.  Get every offer, counter offer, agreement, modification, and addendum in writing because the Statutes of Frauds theory requires real estate contracts to be written and signed by all parties in order to be considered binding and enforceable.  Reason being these are types of contracts that are most susceptible to fraud.

7. How can people avoid or prevent lawsuits during a real estate transaction? 

The standard CAR (California Association of Realtor) forms include a mediation and arbitration clause whereby it states that if any disputes arise the parties can agree to mediate the matter with a neutral third party.  If that process is unsuccessful, the parties then can take it to an arbitration proceeding. Arbitration is a private process where disputing parties agree that the arbiter, usually a retired judge, can make a decision about the dispute after receiving evidence and hearing arguments.  If you want to avoid costly litigation, in case a dispute arises, in a transaction it would be wise to agree to the Alternative Dispute Resolution (ADR) processes.

8. Do you have any horror stories that you can share with us?   

Two people got together to purchase a house, a foreigner cash buyer and a local real estate broker.  They verbally agreed they would split the property 50/50. As time went on disputes arose as to the amount each contributed and ownership of the property.  Essentially, the partner that provided cash believed she owned a lot more than just 50%.  The problem here was, they did not enter into a partnership agreement spelling out the terms of the arrangement.  Everything was verbal and based on trust.  Lawsuit ensued, and after 2 years of litigation the case was settled.  Fees and time were wasted, when they could have avoided all this with a partnership agreement.

9. Any new laws in the area of real estate we should know about?

SB 330: This law that makes it more difficult for

local authorities to disapprove housing development. Not only by forcing local authority to provide specific and substantial evidence that the development would be inconsistent with pre-existing zoning, but also requiring local authorities to approve or disapprove the development with stricter timeline.

AB 881: Makes it easier for people to create ADUs (Assessor Dwelling Units).  ADUs can be a new or converted garage, storage area, or structure. The law prohibits local agencies from requiring parking that is offsets from the loss of the garage.

AB 1482: Just passed a state wide rent control that imposes a maximum of 5% rent increase per year, not necessarily only rent control areas.  Alhambra for example was not under rent control, but now landlords can only increase rent by 5% per year with some exceptions of course for buildings 15 years or newer.  Evictions now require a 90 day notice with “just cause” to evict.

10. Message to the people?

When making a major decision whether it is starting a business or buying real property do your research, ask experienced individuals, get everything in writing. If you have any doubts, consultant an attorney. Contact us, if you have any law related questions. Don't forgot to mention "SGV HOUSING" for a free consultation.

James Chu – CPA

James Chu earned his BA at University of California, San Diego and furthered his education earning his Master of Accounting at University of Southern California lottonumerot. He then started his accounting career at McGladrey & Pullen as an substance abuse benefits auditor. Throughout his career, James has worked at SEC companies such as Corinthian Colleges and Toyota Motor Sales at look at here.

Today, James helps business owners and personal clients exceed their business objectives by utilizing corporate tax havens and improving the accounting process.

 

 

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I grew up In Temple City and San Marino. Both cities were more simple back then. Now both cities are more developed with a lot more retail shops and restaurants. Before you had to drive all the way down to Alhambra area to eat at restaurants but now all you just need to drive about a mile a way and there are a bunch of selections for food.

After college, my parents moved to Rowland Heights district. After following them around the area, I realized that I really like the City of Walnut. So, I decided to open my business there.

I don’t want to sound cliché but you can’t beat Ding Tai Fung. I know that SGV has tons of options in terms of food. However, there is a reason why Ding Tai Fung is so popular, right? To tell you the truth eating there reminds of Taiwan, which is why i like it so much.We will work hard to make selling your house a process you eagerly anticipate. cash-for-houses.org values your time. International buyers may buy your home if you know the local real estate market and advertise it online and offline. This will happen with offline and internet house advertising. We’ll secure the best terms. Use our home-selling services. Visit https://www.cash-for-houses.org/oklahoma/cash-for-my-house-altus-ok/.

At UCSD, I took the only accounting course they offered and it fully captured my attention. I found out that I really enjoyed learning financial statements which can portray the health of a company.  Before I couldn’t make sense on what I was reading (balance sheet + Profit and Loss Statements) but after taking the course it got me more interested. it sparked my interest to learn more.

San Gabriel Valley Small Business Owner CPA 626.986.8863
Jchu@jameskchucpa.com
www.jameskchucpa.com 20264 Carrey Rd.
Walnut Ca, 91789

All my customers liked the fact that I respond very quickly to their questions. Most of the complaints they had from their previous CPA was the fact that they never get to talk to the person. Instead they always talk with their assistants. The people can that benefit the most from my services are people that would rather have that one on one experience with the expert, rather a machine or an assistant.

To be honest, taxes doesn’t require much specialization as when it comes down to details, financial statements bear the same information at the end of the day.  Real estate taxes are pretty common so I am familiar with it.

The main benefits of owning real estate is that you can save taxes thru itemized deduction of your taxes. However in 2018 after Trump’s Tax Act , he did limit state and local taxes to a cap of $10,000 which hurt many homeowners who pay high state taxes from their wages and property taxes.If you want to know more , please get in contact with me.

The newest tax law that promote incorporation is the new Section 199A which provides a 20% deduction from pass thru entities.  I think thats a good law to help many businesses lower their tax burden.

Don’t forget to pay your taxes on 4/15.Don’t forget to mention SGV Housing to a free consultation!.

These are just some keynotes that we have taken from the AB – 1482 Tenant Protection Act.  This is in no way legal advice west palm alcohol rehab, and you still consult with your lawyer.

 

General Information:
The state of California is now under a statewide rent control which went in effect as of Jan 1, 2020.  This bill has several key points that real estate owners, investors, and tenants need to know.

SGV Housing Group Arcadia Single Family Home Development Dining 2

 

Rent Increases:
This new law, AB 1482, caps rent increases to 5% + Inflation.  Local inflation is determined by taking Consumer Price Index in each metropolitan area.  For example for suvs, if the local inflation rate is 3.5%, then a landlord can raise the rent to 8.5%.  A single rent increase cannot exceed 10% in a single year.

Rents may be increased not more than twice a 12 – month period.

 

Local Rent control Jurisdictions:
Simply put AB 1482 does NOT override local rent control rules.  Whichever protects tenants more when it comes to rights, relocation, and rents will be used.  Brady R McShane on natlawreview.com breaks down local jurisdictions even more here:

  • “Costa-Hawkins prevents cities from establishing rent control – or capping rent – on apartment units constructed after Feb. 1, 1995.2
  • AB 1482 leaves in place existing local government rent control ordinances on pre-1995 units.
  • Consistent with Costa-Hawkins, local governments would still be prohibited from imposing rent control, which is stricter than AB 1482 rent caps, on post-1995 units.
  • In jurisdictions with local rent control laws, AB 1482 will apply only to housing that both: (1) qualifies for the AB 1482 annual rent cap; and (2) is not otherwise covered by local rent control.3
  • In the city of Los Angeles, the local rent control law only applies to buildings constructed before October 1978.
    • For buildings constructed before October 1978, rent will be capped under the provisions of the city’s law (i.e., 4% in 2019).
    • For buildings constructed after October 1978 and that are at least fifteen (15) years old (1978-2005), rent will be capped at 5%, plus inflation under AB 1482.
    • Buildings constructed after 2005 will have no rent cap until they turn fifteen (15) years old and qualify for AB 1482.”

Evictions:
Landlords are prohibited by this bill to evict tenants without “Just Cause.”

There are two types of “just causes”: “At-Fault Just Cause” and “No-Fault Just Cause”

“At fault just causes” obligations that tenant breach, paying rent, criminal activity, etc.

“No fault just causes” are landlord or government actions breaching the contract these issues could be occupying the property, eminent domain, and more.

Deciding to sell the property is NOT a just cause for eviction.

If the tenant has been there for over 1 year, relocation fees equal to one month of rent or waiver of the last month's payment.  This amount must be paid to the renter in 15 days or termination of the tenancy is void!

AB 1482 Shall not apply to the following types of properties:

  • Transient and tourist hotel occupancy
  • Housing accommodations a nonprofit hospital, religious facility, residential for elder, Section 1569.2 and some other code
  • Dormitories owned and operated by higher education
  • Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
  • Single-family owner-occupied residences, including a residence in which the owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
  • A duplex in which the owner-occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy.
  • Housing that has been issued a certificate of occupancy within the previous 15 years.
  • The owner is not any of the following:
    • A real estate investment trust
    • A corporation
    • A limited liability company in which at least one member is a corporation
Rear view of a couple relaxing on a sofa at home and looking outside a green background through the window of the living room
California AB 1482

Notifications:
What kind of notices are tenants required to receive about the rent cap? If this applies to your situation be sure to put this information in 12- size font!

All tenants in units covered by the bill must receive a notice explaining the just cause and rent cap protections. For a tenancy existing prior to July 1, 2020, this notice must be provided in writing to the tenant no later than August 1, 2020, or as an addendum to the lease or rental agreement. For any tenancy commenced or renewed on or after July 1, 2020, this notice must be provided as an addendum to the lease or rental agreement, or as a written notice signed by the tenant with a copy provided to the tenant. The notice language must read:

“California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. California law also provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Section 1946.2 of the Civil Code for more information.”

In addition, an owner claiming an exemption under the single-family home or condo exemption must provide a written notice to the tenant. For a tenancy existing before July 1, 2020, this notice may be provided in the rental agreement. For any tenancy commenced or renewed on or after July 1, 2020, this notice must be provided in the rental agreement. If the owner does not provide the required notice, then the property is NOT exempt from just cause or the rent cap. The notice language must read:

“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

 

https://www.natlawreview.com/article/ab-1482-tenant-protection-act-summary-key-provisions

Causes:
“AT-FAULT” JUST CAUSES

The owner must have evidence to support the basis for the eviction based on any of the following:

  • Failure to pay rent;
  • Breach of a material lease term, as defined by the law;
  • Maintaining, committing, or permitting the maintenance or commission of a nuisance, as defined by the law;
  • Committing waste, as defined by the law;
  • Written lease terminated on or after January 1, 2020 and after a written request from the owner, the renter has refused to execute on a written extension or renewal of the lease based on similar lease terms;
  • Criminal activity by the renter on the property, including any common areas, or any criminal activity or criminal threat on or off the property that is directed at any owner or agent of the owner;
  • Assigning or subletting in the premises in violation of the lease;
  • Refusing the owner access to the unit as authorized under the law;
  • Using the premises for unlawful purposes, as defined by the law;
  • An employee (e.g. resident manager), agent or licensee’s failure to vacate after their termination;
  • Failure to deliver possession of the unit following written notice to the owner of the renter’s intention to terminate the lease, which the owner has accepted in writing.

 

“NO-FAULT” JUST CAUSES

  • Intent by the owner or owner-relative to occupy the unit. This includes the owner’s spouse, domestic partner, children, grandchildren, parents, or grandparents only. For leases entered into on or after July 1 2020, the owner would only be permitted to occupy the unit, if the renter agrees in writing to the lease termination or the lease includes a provision providing for lease termination based on owner or owner-relative occupancy;
  • Withdrawal of the rental property from the rental market;
  • Intent to demolish or substantially remodel the unit;
  • Owner is complying with a local ordinance, court order, or other government entity resulting in the need to vacate the property.

 

Sources and Information:
To see the actual bill, please click the link below.

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1482

For more information here were some other articles read.

https://www.natlawreview.com/article/ab-1482-tenant-protection-act-summary-key-provisions

https://cal-rha.org/legislative/ab-1482/

 

If you need more clarity on this bill please consult with your attorney.

Property Details

220 S. San Gabriel Blvd

San Gabriel, CA 91776

E. Live Oak

Mix-Use

Information

Kollin Altomare Architects

San Gabriel Square

Property Details

34,840 Commercial SF
248,865 Residential SF

5 Stories

10 Commercial Units
163 Residential Units

545 Parking Spaces

Description

Arcadia based developer, San Gabriel Square LLC, is seeking approval for a mix-use development on the corner of E. Live Oak and San Gabriel Blvd.  The 3.59-acre site will be the location of a 3 building mix-use development composed of  163 residential units and 10 commercial units.  Residential units will be composed of 1 & 2 bedrooms with residential parking provided in 2 stories subterranean parking.  Residences will be able to enjoy clubhouse, pools, and retail. xn--72c9ah5d5a0hpc.tv/

This will be yet another exciting new development on San Gabriel Blvd.