AB 2782, sponsored by GSMOL, was approved by the Governor on August 31, 2020, and took effect January 1, 2021. Civil Code 798.17 has long provided that leases which exceed 12 months in length are exempt from local rent stabilization ordinance (RSO) protection. AB 2782 ends this long-term lease exemption from RSO protection, and amends that provision to provide that:
- All leases of any length signed on or after February 13, 2020 shall no longer be exempt from local RSO, and the local RSO rent limitations will apply to protect those residents regardless of what the lease provisions might say. The local RSO will effectively pre-empt the lease with respect only to its financial terms. The rest of the lease provisions remain intact.
- All leases with a term 12 months or longer signed prior to February 13, 2020 will remain exempt from RSO until they expire, or until January 1, 2025, whichever occurs first. Thus, according to AB 2782 as of January 1, 2025 all leases in excess of 12 months will no longer be exempt from RSO protections.
In 2022 the Western Manufactured Housing Communities Association (WMA) filed suit in Sacramento County Superior Court to enjoin (i.e. prevent) the State from enforcing AB 2782, and specifically the January 1, 2025 trigger date for all existing long-term leases to no longer be exempt. The Governor and the Attorney General are named as defendants. GSMOL has been monitoring the case, and supporting the Attorney General’s efforts to defend AB 2782. Recently WMA filed its motion for an injunction, as January 1, 2025 is fast approaching.
GSMOL members have been asking about the status of the injunction request. The court hearing was originally scheduled for November 5, 2024, but has since been twice continued to a new date on the motion of the Judge. The injunction hearing is now scheduled for December 6th at 10:00 a.m. The outcome shall likely determine if the January 1st trigger date remains, or is put on hold. Stay tuned to GSMOL for further updates.
