ELLIS ACT

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, as

contained in 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 (4) of subdivision (a) 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.