Prop 21 and Costa Hawkins Principal Place of Residence Law

[Don MacRitchie]

Under current Costa Hawkins (CH) law if a tenant is not using a rent controlled property as his/her principal place of residence, the landlord can raise the rent to market rate. Doing so usually results in a tenant filing a petition with the local rent board opposing the increase. However, if the rent board finds for the landord, ie, that the tenant is not using the property as their principal place of residence, the landlord receives a judgment entitling him to raise the rent to market rate. This process is set forth and regulated by existing CH law. However, if Proposition 21 passes in November it will replace CH law and I don't believe Prop 21 has any principal place of residence requirement. So does this mean tenants will be free to live elsewhere and use their rent controlled properties as either pied a terrres or as sub-let rental income properties? Right now the landlord has a remedy for those abuses under the CH principal place of residence provisions. However, I don't think any similar remedies exist in Prop 21. Would be interested in the opinion of others.

Thanks,