7060-7060.7

GOVERNMENT CODE
SECTION 7060-7060.7




7060.  (a) No public entity, as defined in Section 811.2, shall, by
statute, ordinance, or regulation, or by administrative action
implementing any statute, ordinance or regulation, compel the owner
of any residential real property to offer, or to continue to offer,
accommodations in the property for rent or lease, except for
guestrooms or efficiency units within a residential hotel, as defined
in Section 50519 of the Health and Safety Code, if the residential
hotel meets all of the following conditions:
   (1) The residential hotel is located in a city and county, or in a
city with a population of over 1,000,000.
   (2) The residential hotel has a permit of occupancy issued prior
to January 1, 1990.
   (3) The residential hotel did not send a notice of intent to
withdraw the accommodations from rent or lease pursuant to
subdivision (a) of Section 7060.4 that was delivered to the public
entity prior to January 1, 2004.
   (b) For the purposes of this chapter, the following definitions
apply:
   (1) "Accommodations" means either of the following:
   (A) The residential rental units in any detached physical
structure containing four or more residential rental units.
   (B) With respect to a detached physical structure containing three
or fewer residential rental units, the residential rental units in
that structure and in any other structure located on the same parcel
of land, including any detached physical structure specified in
subparagraph (A).
   (2) "Disabled" means a person with a disability, as defined in
Section 12955.3 of the Government Code.



7060.1.  Notwithstanding Section 7060, nothing in this chapter does
any of the following:
   (a) Prevents a public entity from enforcing any contract or
agreement by which an owner of residential real property has agreed
to offer the accommodations for rent or lease in consideration for a
direct financial contribution or, with respect to written contracts
or agreements entered into prior to July 1, 1986, for any
consideration. Any contract or agreement specified in this
subdivision is not enforceable against a person who acquires title to
the accommodations as a bona fide purchaser for value (or successors
in interest thereof), unless (1) the purchaser at the time of
acquiring title to the accommodations has actual knowledge of the
contract or agreement, or (2) a written memorandum of the contract or
agreement which specifically describes the terms thereof and the
affected real property, and which identifies the owner of the
property, has been recorded with the county recorder prior to July 1,
1986, or not less than 30 days prior to transfer of title to the
property to the purchaser. The county recorder shall index such a
written memorandum in the grantor-grantee index.
   As used in this subdivision, "direct financial contribution"
includes contributions specified in Section 65916 and any form of
interest rate subsidy or tax abatement provided to facilitate the
acquisition or development of real property.
   (b) Diminishes or enhances, except as specifically provided in
Section 7060.2, any power which currently exists or which may
hereafter exist in any public entity to grant or deny any entitlement
to the use of real property, including, but not limited to,
planning, zoning, and subdivision map approvals.
   (c) Diminishes or enhances any power in any public entity to
mitigate any adverse impact on persons displaced by reason of the
withdrawal from rent or lease of any accommodations.
   (d) Supersedes any provision of Chapter 16 (commencing with
Section 7260) of this division, Part 2.8 (commencing with Section
12900) of Division 3 of Title 2 of this code, Chapter 5 (commencing
with Section 17200) of Part 2 of Division 7 of the Business and
Professions Code, Part 2 (commencing with Section 43) of Division 1
of the Civil Code, Title 5 (commencing with Section 1925) of Part 4
of Division 3 of the Civil Code, Chapter 4 (commencing with Section
1159) of Title 3 of Part 3 of the Code of Civil Procedure, or
Division 24 (commencing with Section 33000) of the Health and Safety
Code.
   (e) Relieves any party to a lease or rental agreement of the duty
to perform any obligation under that lease or rental agreement.




7060.2.  If a public entity, by valid exercise of its police power,
has in effect any control or system of control on the price at which
accommodations may be offered for rent or lease, that entity may,
notwithstanding any provision of this chapter, provide by statute or
ordinance, or by regulation as specified in Section 7060.5, that any
accommodations which have been offered for rent or lease and which
were subject to that control or system of control at the time the
accommodations were withdrawn from rent or lease, shall be subject to
the following:
   (a) (1) For all tenancies commenced during the time periods
described in paragraph (2), the accommodations shall be offered and
rented or leased at the lawful rent in effect at the time any notice
of intent to withdraw the accommodations is filed with the public
entity, plus annual adjustments available under the system of
control.
   (2) The provisions of paragraph (1) shall apply to all tenancies
commenced during either of the following time periods:
   (A) The five-year period after any notice of intent to withdraw
the accommodations is filed with the public entity, whether or not
the notice of intent is rescinded or the withdrawal of the
accommodations is completed pursuant to the notice of intent.
   (B) The five-year period after the accommodations are withdrawn.
   (3) This subdivision shall prevail over any conflicting provision
of law authorizing the landlord to establish the rental rate upon the
initial hiring of the accommodations.
   (b) If the accommodations are offered again for rent or lease for
residential purposes within two years of the date the accommodations
were withdrawn from rent or lease, the following provisions shall
govern:
   (1) The owner of the accommodations shall be liable to any tenant
or lessee who was displaced from the property by that action for
actual and exemplary damages. Any action by a tenant or lessee
pursuant to this paragraph shall be brought within three years of the
withdrawal of the accommodations from rent or lease. However,
nothing in this paragraph precludes a tenant from pursuing any
alternative remedy available under the law.
   (2) A public entity which has acted pursuant to this section may
institute a civil proceeding against any owner who has again offered
accommodations for rent or lease subject to this subdivision, for
exemplary damages for displacement of tenants or lessees. Any action
by a public entity pursuant to this paragraph shall be brought within
three years of the withdrawal of the accommodations from rent or
lease.
   (3) Any owner who offers accommodations again for rent or lease
shall first offer the unit for rent or lease to the tenant or lessee
displaced from that unit by the withdrawal pursuant to this chapter,
if the tenant has advised the owner in writing within 30 days of the
displacement of his or her desire to consider an offer to renew the
tenancy and has furnished the owner with an address to which that
offer is to be directed. That tenant, lessee, or former tenant or
lessee may advise the owner at any time during the eligibility of a
change of address to which an offer is to be directed.
   If the owner again offers the accommodations for rent or lease
pursuant to this subdivision, and the tenant or lessee has advised
the owner pursuant to this subdivision of a desire to consider an
offer to renew the tenancy, then the owner shall offer to reinstitute
a rental agreement or lease on terms permitted by law to that
displaced tenant or lessee.
   This offer shall be deposited in the United States mail, by
registered or certified mail with postage prepaid, addressed to the
displaced tenant or lessee at the address furnished to the owner as
provided in this subdivision, and shall describe the terms of the
offer. The displaced tenant or lessee shall have 30 days from the
deposit of the offer in the mail to accept the offer by personal
delivery of that acceptance or by deposit of the acceptance in the
United States mail by registered or certified mail with postage
prepaid.
   (c) A public entity which has acted pursuant to this section, may
require by statute or ordinance, or by regulation as specified in
Section 7060.5, that an owner who offers accommodations again for
rent or lease within a period not exceeding 10 years from the date on
which they are withdrawn, and which are subject to this subdivision,
shall first offer the unit to the tenant or lessee displaced from
that unit by the withdrawal, if that tenant or lessee requests the
offer in writing within 30 days after the owner has notified the
public entity of an intention to offer the accommodations again for
residential rent or lease pursuant to a requirement adopted by the
public entity under subdivision (c) of Section 7060.4. The owner of
the accommodations shall be liable to any tenant or lessee who was
displaced by that action for failure to comply with this paragraph,
for punitive damages in an amount which does not exceed the contract
rent for six months.
   (d) If the accommodations are demolished, and new accommodations
are constructed on the same property, and offered for rent or lease
within five years of the date the accommodations were withdrawn from
rent or lease, the newly constructed accommodations shall be subject
to any system of controls on the price at which they would be offered
on the basis of a fair and reasonable return on the newly
constructed accommodations, notwithstanding any exemption from the
system of controls for newly constructed accommodations.
   (e) The amendments to this section enacted by the act adding this
subdivision shall apply to all new tenancies created after December
31, 2002. If a new tenancy was lawfully created prior to January 1,
2003, after a lawful withdrawal of the unit under this chapter, the
amendments to this section enacted by the act adding this subdivision
may not apply to new tenancies created after that date.



7060.3.  If a public entity determines to apply constraints pursuant
to Section 7060.2 to a successor in interest of an owner who has
withdrawn accommodations from rent or lease, the public entity shall
record a notice with the county recorder which shall specifically
describe the real property where the accommodations are located, the
dates applicable to the constraints and the name of the owner of
record of the real property. The notice shall be indexed in the
grantor-grantee index.
   A person who acquires title to the real property subsequent to the
date upon which the accommodations thereon have been withdrawn from
rent or lease, as a bona fide purchaser for value, shall not be a
successor in interest for the purposes of this chapter if the notice
prescribed by this section has not been recorded with the county
recorder at least one day before the transfer of title.




7060.4.  (a) Any public entity which, by a valid exercise of its
police power, has in effect any control or system of control on the
price at which accommodations are offered for rent or lease, may
require by statute or ordinance, or by regulation as specified in
Section 7060.5, that the owner notify the entity of an intention to
withdraw those accommodations from rent or lease and may require that
the notice contain statements, under penalty of perjury, providing
information on the number of accommodations, the address or location
of those accommodations, the name or names of the tenants or lessees
of the accommodations, and the rent applicable to each residential
rental unit.
   Information respecting the name or names of the tenants, the rent
applicable to any residential rental unit, or the total number of
accommodations, is confidential information and for purposes of this
chapter shall be treated as confidential information by any public
entity for purposes of the Information Practices Act of 1977 (Chapter
1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division
3 of the Civil Code). A public entity shall, to the extent required
by the preceding sentence, be considered an "agency," as defined by
subdivision (d) of Section 1798.3 of the Civil Code.
   (b) The statute, ordinance, or regulation of the public entity may
require that the owner record with the county recorder a memorandum
summarizing the provisions, other than the confidential provisions,
of the notice in a form which shall be prescribed by the statute,
ordinance, or regulation, and require a certification with that
notice that actions have been initiated as required by law to
terminate any existing tenancies. In that situation, the date on
which the accommodations are withdrawn from rent or lease for
purposes of this chapter is 120 days from the delivery in person or
by first-class mail of that notice to the public entity. However, if
the tenant or lessee is at least 62 years of age or disabled, and has
lived in his or her accommodations for at least one year prior to
the date of delivery to the public entity of the notice of intent to
withdraw pursuant to subdivision (a), then the date of withdrawal of
the accommodations of that tenant or lessee shall be extended to one
year after the date of delivery of that notice to the public entity,
provided that the tenant or lessee gives written notice of his or her
entitlement to an extension to the owner within 60 days of the date
of delivery to the public entity of the notice of intent to withdraw.
In that situation, the following provisions shall apply:
   (1) The tenancy shall be continued on the same terms and
conditions as existed on the date of delivery to the public entity of
the notice of intent to withdraw, subject to any adjustments
otherwise available under the system of control.
   (2) No party shall be relieved of the duty to perform any
obligation under the lease or rental agreement.
   (3) The owner may elect to extend the date of withdrawal on any
other accommodations up to one year after date of delivery to the
public entity of the notice of intent to withdraw, subject to
paragraphs (1) and (2).
   (4) Within 30 days of the notification by the tenant or lessee to
the owner of his or her entitlement to an extension, the owner shall
give written notice to the public entity of the claim that the tenant
or lessee is entitled to stay in their accommodations for one year
after date of delivery to the public entity of the notice of intent
to withdraw.
   (5) Within 90 days of date of delivery to the public entity of the
notice of intent to withdraw, the owner shall give written notice to
the public entity and the affected tenant or lessee of the owner's
election to extend the date of withdrawal and the new date of
withdrawal under paragraph (3).
   (c) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify any tenant or lessee displaced pursuant to this chapter of the
following:
   (1) That the public entity has been notified pursuant to
subdivision (a).
   (2) That the notice to the public entity specified the name and
the amount of rent paid by the tenant or lessee as an occupant of the
accommodations.
   (3) The amount of rent the owner specified in the notice to the
public entity.
   (4) Notice to the tenant or lessee of his or her rights under
paragraph (3) of subdivision (b) of Section 7060.2.
   (5) Notice to the tenant or lessee of the following:
   (A) If the tenant or lessee is at least 62 years of age or
disabled, and has lived in his or her accommodations for at least one
year prior to the date of delivery to the public entity of the
notice of intent to withdraw, then tenancy shall be extended to one
year after date of delivery to the public entity of the notice of
intent to withdraw, provided that the tenant or lessee gives written
notice of his or her entitlement to the owner within 60 days of date
of delivery to the public entity of the notice of intent to withdraw.
   (B) The extended tenancy shall be continued on the same terms and
conditions as existed on date of delivery to the public entity of the
notice of intent to withdraw, subject to any adjustments otherwise
available under the system of control.
   (C) No party shall be relieved of the duty to perform any
obligation under the lease or rental agreement during the extended
tenancy.
   (d) The statute, ordinance, or regulation of the public entity
adopted pursuant to subdivision (a) may also require the owner to
notify the public entity in writing of an intention to again offer
the accommodations for rent or lease.



7060.5.  The actions authorized by Sections 7060.2 and 7060.4 may be
taken by regulation adopted after public notice and hearing by a
public body of a public entity, if the members of the body have been
elected by the voters of the public entity. The regulation shall be
subject to referendum in the manner prescribed by law for the
ordinances of the legislative body of the public entity except that:
   (a) The decision to repeal the regulation or to submit it to the
voters shall be made by the public body which adopted the regulation.
   (b) The regulation shall become effective upon adoption by the
public body of the public entity and shall remain in effect until a
majority of the voters voting on the issue vote against the
regulation, notwithstanding Section 9235, 9237, or 9241 of the
Elections Code or any other law.



7060.6.  If an owner seeks to displace a tenant or lessee from
accommodations withdrawn from rent or lease pursuant to this chapter
by an unlawful detainer proceeding, the tenant or lessee may appear
and answer or demur pursuant to Section 1170 of the Code of Civil
Procedure and may assert by way of defense that the owner has not
complied with the applicable provisions of this chapter, or statutes,
ordinances, or regulations of public entities adopted to implement
this chapter, as authorized by this chapter.



7060.7.  It is the intent of the Legislature in enacting this
chapter to supersede any holding or portion of any holding in Nash v.
City of Santa Monica, 37 Cal.3d 97 to the extent that the holding,
or portion of the holding, conflicts with this chapter, so as to
permit landlords to go out of business. However, this act is not
otherwise intended to do any of the following:
   (a) Interfere with local governmental authority over land use,
including regulation of the conversion of existing housing to
condominiums or other subdivided interests or to other nonresidential
use following its withdrawal from rent or lease under this chapter.
   (b) Preempt local or municipal environmental or land use
regulations, procedures, or controls that govern the demolition and
redevelopment of residential property.
   (c) Override procedural protections designed to prevent abuse of
the right to evict tenants.
   (d) Permit an owner to withdraw from rent or lease less than all
of the accommodations, as defined by paragraph (1) or (2) of
subdivision (b) of Section 7060.
   (e) Grant to any public entity any power which it does not possess
independent of this chapter to control or establish a system of
control on the price at which accommodations may be offered for rent
or lease, or to diminish any such power which that public entity may
possess, except as specifically provided in this chapter.
   (f) Alter in any way either Section 65863.7 relating to the
withdrawal of accommodations which comprise a mobilehome park from
rent or lease or subdivision (f) of Section 798.56 of the Civil Code
relating to a change of use of a mobilehome park.