Renting SFH and ADU separately... does AB 1482 apply?

Question

San Jose, CA. Single family house with a newly constructed ADU. I would like to rent both units separately. Would AB1482 apply?

I see that it does apply to duplexes unless "the owner occupied one of the units as the owner’s principal place of residence", which would not be the case.

But I also see that it does not apply to "Housing that has been issued a certificate of occupancy within the previous 15 years"

Thanks!

Dan H. · Answer

A common interpretation I have seen municipalities take contradicts what Senator Wienkowski implied.

A common interpretation that municipalities have applied is that once the house is over 15 years old with an ADU, the house is rent controlled.  The ADU is not rent controlled until it is 15 years old.  Example, the house is 16 years old and the ADU is one year old, the house is rent controlled under AB1482 and the ADU is not rent controlled under AB1482 for 14 more years.

Senator Weinkowski implied that his intent in the ADU rules was to encourage housing development and that neither the house or the ADU was rent controlled unit 15 years after the property became a multi unit.

I have not seen an HCD interpretation, but HCD has shown to be toothless to the municipalities so even if HCD goes with Senator Weinkowski's interpretation it is unlikely to change the behavior of the municipalities as long as there is even a trace of gray area.  This has been occurring in certain jurisdictions regarding impact fees and the exact definition of impact fees and the HCD has indicated that various jurisdictions are collecting impact fees that are not allowed, but the jurisdictions continue to collect these impact fees.

Safe approach is to go with the belief that if the property is multi unit, any structure that is over 15 years old is rent controlled by AB1482.

Good luck

Caroline Gerardo · Answer

What year was SFR built? How is it vested? Did you notify tenant and get it signed?

ADU rent cap applies as is after the date.

Soon as you rent the SFR it applies, as it won't be owner occupied any more.