Housing

SAN FRANCISCO — California Attorney General Rob Bonta today delivered remarks on California Department of Justice’s preparations to protect California’s values, people, and natural resources ahead of a second Trump Administration. To view a recording of the press conference, please visit here. 

Attorney General Bonta's Remarks as Prepared for Delivery:

As the reality of a second Trump Administration takes hold, I know there is a great deal of fear, sadness, anxiety, and panic. 

I understand. 

I’m here today to reassure you that in California, progress will prevail. 

No matter who is in the White House, no matter who holds control of Congress, in California we will keep moving forward. 

In California, we will choose calm over chaos. 

Fact over fiction.

Belonging over blame.

Unity over division. 

“Us and we” over “I and me.” 

It’s why we’re the 5th largest economy in the world. Not in spite of our commitment to workers, consumers, and the environment, because of it. 

Because we’re the largest and most diverse state in the nation.

Because we believe in the power of inclusivity.

Because we believe in truth over lies. Hope over hate. Light over dark.

Because  we believe in looking forward.

It’s who we are in the Golden State. It’s in our DNA. Nothing and no one can change that. 

As Attorney General, I’ll continue to use the full force of the law and authority of this office to address injustice. 

To stand up for all people, especially those who have long been overlooked and undervalued.

To safeguard reproductive rights. 

And advocate for more housing — especially more affordable housing for lower and middle-income families just trying to get by.

I’ll continue to take on greedy corporate giants and fight for more affordable gas, groceries, and everything in between.  

I’ll continue to defend our world-renowned natural resources and protect them for generations to come. 

Continue to fight for clean water to drink and clean air to breathe.

Continue to crack down on illicit guns on our streets and get fentanyl out of our neighborhoods. 

Continue to fight for workers.

I’ll continue to protect, defend, and serve every single Californian. No matter your politics. 

I’m here to ensure every person — no matter how they look, how much money they make, where they’re from, who they love, how they identify, or how they pray — can pursue their version of the California Dream. 

A fair wage and good benefits.  

A safe and affordable place to live.  

Affordable and accessible health care. 

Good schools to send our kids to. 

Safe neighborhoods to raise our families. 

That’s my promise to you, no matter who is in the White House.  

We’ve been here before.

We lived through Trump 1.0. 

We know what he’s capable of. 

We know what plans he has in store. 

The silver lining is just that: we know. 

We know to take Trump at his word when he says he’ll roll back environmental protections, go after our immigrant and LGBTQ+ communities, attack our civil rights, and restrict access to essential reproductive care.

Which means, we won’t be flat-footed come January.

You can be sure that as California Attorney General, if Trump attacks your rights: I’ll be there. 

If Trump comes after your freedoms: I’ll be there. 

If Trump jeopardizes your safety and well-being: I’ll be there.

California DOJ did it before and we’ll do it again.  

During the last Trump Administration, California DOJ fought to stop illegal rollbacks and proposals that would’ve harmed the well-being, health, safety, and civil rights of our people and of people across the country. 

That would have caused irrevocable damage to our environment.

No matter who is in charge of the federal government…

No matter what the incoming Administration has in store… California will remain the steadfast beacon of progress it has long been.  

A constant, unwavering, immoveable force to be reckoned with.  

We’ll continue to be a check on overreach and push back on abuse of power. 

Be the antidote to dangerous, extremist, hateful vitriol.

Be the blueprint of progress for the nation to look to.

Remember: in moments of chaos in D.C., you can always look to California for calm resolve. 

California leaders across the state are ready to stand arm-in-arm. 

Governor Newsom and every single Constitutional Officer;  

Senator Padilla and Senator-elect Schiff;  

Democratic members of Congress; 

Pro Tem McGuire, Speaker Rivas, and the California Legislature; 

Mayors, supervisors, and city councilmembers from San Francisco to San Diego are ready to fight for our California values. 

For our people. For our environment.

For progress and justice.

And as necessary, we’re ready to take on the challenges of a second Trump Administration — together.

While a great deal of change is on the horizon…

California’s path to progress remains full steam ahead.

It may not always be linear. Progress so rarely is. 

It zigs and zags. Takes frustrating detours. Inches forward and backward and forward again. 

The detours and setbacks don’t define our progress.

Our commitment to forward momentum defines our progress. Defines us. 

It’s what we do next that will define us. 

If you’re feeling despondent today, remember that you’re not alone. 

In California, we’re not looking back. We’re not moving back. 

We’re California! We’ll meet any challenges head on and rise to the occasion.

As is so often said, as California goes, so goes the nation.

In the days and months and years to come, all eyes will look west. 

In California, they’ll see: we’re still moving forward.

Thank you. 

La Habra Heights to update housing plan by July 2025 for development of 244 additional housing units

SACRAMENTO — California Attorney General Rob Bonta, California Governor Gavin Newsom, and California Department of Housing and Community Development (HCD) Director Gustavo Velasquez today announced a settlement that will bring the City of La Habra Heights into compliance with the state’s Housing Element Law. With dedicated technical support from the state, the city will adopt a housing plan no later than July 7, 2025, to allow for the development of 244 housing units, at least 164 of which must be affordable to low- and very low-income households. The agreement, which is in the form of a proposed stipulated judgment and must be approved by the court, is related to California’s sixth “housing element update cycle” for the 2021-2029 time period.   

Under the state’s Housing Element Law, every city and county in California must periodically update its housing plan to meet its Regional Housing Needs Allocation (RHNA), or share of the regional and statewide housing needs. Located in Los Angeles County and home to a total population of 5,682 residents, La Habra Heights was required to update its housing plan by October 15, 2021, to accommodate its 172-unit RHNA target. However, because the city did not identify adequate sites for lower- and moderate-income units during the fifth cycle for the 2013-2021 time period, an additional 72 units were added for a total of 244 units. After receiving a notice of violation from HCD, the city and state conferred in good faith to chart a course for the city to attain compliance.   

“The City of La Habra Heights has done the right thing. Instead of continuing to skirt California’s housing laws, it will finally be complying with its legal obligation to plan for 244 housing units,” said Attorney General Rob Bonta. “My office will not let up: no matter the size of the city or county, we will not rest until every local government in California plans for the future and does its part to tackle our housing crisis.” 

“No more excuses — every community has a responsibility to create housing and to help reduce homelessness,” said Governor Gavin Newsom. “I am pleased that La Habra Heights has come to the table and agreed to meet their housing goals for a community that desperately needs more affordable homes.” 

"This latest agreement is a key example of why it is so important that every city, big and small, is held accountable for doing its fair share to address the statewide housing need,” said HCD Director Gustavo Velasquez. “When La Habra Heights adopts a compliant housing element, it will — for the first time ever — make land available for multifamily and affordable housing, creating a path to opportunity for more families in this high-resource community."

Among other things, a compliant housing element must include an assessment of housing needs, an inventory of resources and constraints relevant to meeting those needs, and a program to implement the policies, goals, and objectives of the housing element. Once the housing element is adopted, it is implemented through zoning ordinances and other actions that put its objectives into effect and facilitate the construction of new homes for Californians at all income levels.  

The housing element is a crucial tool for building housing for moderate-, low-, and very low-income Californians and redressing historical redlining and disinvestment. State income limits for what constitutes moderate-, low-, and very low-income Californians vary by county and can be found here. In Los Angeles County, the median income for a one-person household is $68,750. A one-person household that earns less than $77,700 is defined as low-income, and a one-person household that earns less than $48,550 is defined as very-low income.  

Under the settlement:

• La Habra Heights will take several required actions to adopt a compliant housing element by July 7, 2025. The housing element process is typically lengthy — for example, local governments must meet certain public participation requirements, and HCD must review every local government’s housing element to determine whether it complies with state law and provides written findings back to each local government — but La Habra Heights has agreed to an expedited timeline and ensuring the public’s participation.
• La Habra Heights acknowledges that, until it has adopted a substantially compliant housing element, it may not deny certain low-, very low-, and moderate-income housing development projects based on the city’s current, outdated general plan and zoning code. This is known as the Builder's Remedy. 
• La Habra Heights could be subject to monetary penalties if it remains noncompliant 12 months after the effective date of the stipulated judgment.

A copy of the petition and proposed judgment, which details the settlement terms and remains subject to court approval, can be found here and here, respectively.

OAKLAND — California Attorney General Rob Bonta today issued two consumer alerts regarding current legal limits on rent hikes. Entitled “Know Your Rights as a California Tenant,” the first consumer alert outlines, for each county, the maximum annual rent increase permitted under state law — specifically, the Tenant Protection Act (TPA). Under the TPA, most landlords cannot raise rent more than 10% total or 5% plus the percentage change in the cost of living — whichever is lower — over a 12-month period. The second consumer alert summarizes local rent control or rent stabilization laws throughout California. If Californians live in a city or county with stronger rent protections than the TPA, the local law applies. 

“At a time when rent prices continue to be a top concern for Californians, my office is publishing two consumer alerts to remind both landlords and tenants of the allowable rent-increase caps under the Tenant Protection Act and local law,” said Attorney General Bonta. “The bottom line is this: The Tenant Protection Act sets a floor — not a ceiling. If your city or county has stronger rent-increase protections than those provided by the Tenant Protection Act, that city or county’s protections take precedence.”

Statewide Rent-Increase Caps Under TPA 

The new limit on rent increases under the TPA took effect on August 1, 2024, and will remain in effect through July 31, 2025, when a new rent hike limit will take effect. The rent-increase caps apply to most rental housing in California that is more than 15 years old, including single-family homes and condos owned by corporations, mobilehomes rented from mobilehome park management, and housing rented by Section 8 Housing Choice Voucher recipients. 

The change in the cost of living is measured using April Consumer Price Index information published by the U.S. Bureau of Labor Statistics for the Los Angeles Area, Riverside Area, San Francisco Area, and San Diego Area. For all other counties, the change in the cost of living is measured using April California Consumer Price Index information published by the California Department of Industrial Relations. If no April data is available, March data is used. 

The consumer alert on rent-increase caps under the TPA is available in English, Spanish, Arabic, Armenian (Eastern), Chinese (Simplified), Chinese (Traditional), Farsi, French, German, Hindi, Hmong, Italian, Japanese, Khmer, Korean, Lao, Portuguese, Punjabi, Russian, Tagalog, Telugu, Thai, Ukrainian, and Vietnamese. 

Local Rent Control Laws 

Local laws vary — they set different rent-increase caps and can have different ways of calculating those caps, often based on changes in the Consumer Price Index. The California Attorney General’s Office is publishing a chart showing local rent stabilization laws, how they calculate their rent caps, and some key exemptions. 

The consumer alert on local rent control laws is available in English, Spanish, Chinese (Simplified), Korean, Tagalog, and Vietnamese.

Californians who are facing eviction or believe their landlord has violated their tenant rights should seek legal help immediately. If you cannot afford a lawyer, you may qualify for free or low-cost legal aid. To find a legal aid office near where you live, visit lawhelpca.org and click on the “Find Legal Help” tab. If you do not qualify for legal aid and need help finding a lawyer, visit the California State Bar webpage to find a local certified lawyer referral service, or visit the California Courts’ webpage for tenants facing evictions. 

The consumer alerts are available towards the end of the California DOJ webpage on Landlord-Tenant Issues.

SAN FRANCISCO — California Attorney General Rob Bonta today issued the following statement in response to Governor Gavin Newsom signing into law Senate Bill (SB) 1037, which will enhance the Attorney General’s ability to seek civil penalties in court against local governments that violate state housing law. SB 1037 was authored by Senator Scott Wiener (D-San Francisco) and sponsored by Attorney General Bonta. 

“When it comes to addressing our housing crisis, there is no time to waste. Governor Newsom understands that at his core, and I’m grateful he’s signed SB 1037 into law. I also want to thank Senator Wiener for making this moment possible,” said Attorney General Rob Bonta. “With SB 1037, violating our state housing laws, and delaying or denying the homes that Californians desperately need, can lead to more serious consequences than ever before. And let me be clear: my office will not hesitate to pursue those consequences when appropriate. Critically, the additional penalties will be used to fund local affordable housing.”

“California has made great progress passing state laws that open the door to more housing. We need strong enforcement to back those laws up when cities flagrantly violate them,” said Senator Scott Wiener. “By providing the Attorney General better tools for swift accountability when cities engage in egregious violations, SB 1037 helps clear the path for California to meet its housing goals. I thank the Governor and the Attorney General for their focus on upholding our state housing laws and leading with innovative solutions to the crisis.”

SB 1037 targets local governments that refuse to adopt a compliant housing element and/or violate a law that requires a housing development application to be processed according to objective standards. Currently, when a court finds a locality in violation of state housing law, monetary penalties can only be imposed 60 days, or in some cases up to a year, after a court has ordered compliance. Effective January 1, 2025, SB 1037 will: 

• Allow the Attorney General to instead seek additional penalties that are assessed from the date that the housing law violation began.
• Subject violators to a minimum civil penalty of $10,000 per month, and not to exceed $50,000 per month, for each violation calculated from the date the violation started. Cities and counties that refuse to adopt a timely and legally compliant housing element and also ignore a court order directing them to do so for more than 120 days will be subjected to the maximum financial penalty and serious curtailment of their local land use authority. 
• Earmark the penalty money to support the development of affordable housing located in the affected jurisdiction. 

A copy of the legislation can be found here.

Court order protects consumers, requires removal of illegal liens statewide

OAKLAND — California Attorney General Rob Bonta today announced securing a preliminary injunction against MV Realty, a Florida-based company that engaged in a predatory scheme to lure vulnerable homeowners looking for financial help with an immediate payment and then locked them into so-called “Homeowner Benefit Agreements” — agreements that required homeowners to exclusively use MV Realty to sell their homes for the next 40 years or pay a penalty of 3% of the home’s value. MV Realty also placed illegal liens on homes and charged homeowners the 3% penalty to remove the lien. In addition to blocking home transfers, the lien could impede, delay, or prevent a homeowner from obtaining or refinancing home loans. The preliminary injunction, which offers important protections to affected consumers, was issued by the Los Angeles Superior Court and was sought by Attorney General Bonta and the Santa Barbara County and Napa County District Attorneys’ Offices as part of the lawsuit they filed against MV Realty on December 13, 2023. 

“To the nearly 1,500 California homeowners who were tricked into entering into the unlawful listing agreements with MV Realty, today is a good day,” said Attorney General Rob Bonta. “The court found that we are likely to prevail on our claim that those homeowners were intentionally misled by MV Realty. The court also found that MV Realty’s conduct imposed ‘imminent irreparable harm’ to homeowners. As a result, the company is being ordered to stop violating state law, once again allowing homeowners the freedom to do with their property what they wish. While our legal battle is not yet over, we will continue fighting to hold MV Realty accountable.” 

“This court order provides necessary protections to homeowners in Santa Barbara County, and the entire state, so they will not be further victimized during the course of this litigation,” said Santa Barbara County District Attorney John T. Savrnoch. “We strongly agree with the Court that affected homeowners would continue to suffer imminent irreparable harm in the absence of this injunction.” 

“I stand with Attorney General Bonta and my fellow prosecutors in condemning MV Realty’s deceptive business practices and will fight aggressively to hold them accountable and safeguard the rights of homeowners across California,” said Napa County District Attorney Allison Haley. “No family should be trapped in unlawful contracts or face illegal liens on their homes. This preliminary injunction is a critical step in ensuring justice for those impacted by this harmful business model.”  

The preliminary injunction requires MV Realty to: 

• Remove the liens it has recorded statewide within 30 days of the court’s order, or within 5 days of notification from a California homeowner, or his or her agent, who needs the termination to be able to move forward with a transaction related to the homeowner’s property. 
• Stop recording new liens. 
• Not enforce, during the pendency of the litigation, the “Homeowner Benefit Agreements” it signed with California homeowners.

A copy of the preliminary injunction can be found here. The motion for preliminary injunction was supported in part by a declaration from the California Department of Real Estate.

SACRAMENTO — California Attorney General Rob Bonta, California Governor Gavin Newsom, California Department of Housing and Community Development (HCD) Director Gustavo Velasquez, and California Business, Consumer Services, and Housing Agency (BCSH) Secretary Tomiquia Moss today announced a settlement with the City of Elk Grove, resolving the lawsuit that the state filed on May 1, 2023 against Elk Grove over its unlawful denial of a proposed 66-unit supportive housing project for lower-income households at risk of homelessness (plus one manager’s unit). Initially proposed as studio apartments in Elk Grove’s historic district by developer Excelerate Housing Group, the supportive housing project was ultimately relocated to city-owned property under a separate settlement reached by Elk Grove and Excelerate Housing Group on February 22, 2024. Under that separate settlement, the supportive housing project will now provide 80 one-bedroom apartments for lower-income households at risk of homelessness (plus one manager’s unit). Supportive housing refers to affordable housing that is paired with intensive services meant to promote housing stability, including medical and mental health care. As part of today’s settlement with the state, Elk Grove agrees to be subject to reporting requirements to monitor its future compliance with state housing law, identify an additional site for low-income housing development, and pay the State of California $150,000 in attorneys’ fees and other costs.

“This settlement reflects what I’ve said all along: California’s housing laws are not optional. Local governments that violate our laws to deny affordable housing opportunities to Californians will be held accountable,” said Attorney General Rob Bonta. “While I am pleased that this is now behind us, and that Elk Grove ultimately approved even more homes for those most in need, the city’s refusal to do the right thing over and over again cannot be swept under the rug. These are not ordinary times. Millions of Californians are struggling to keep a roof over their heads or lack housing altogether. Every local government therefore has both a legal and moral responsibility to help us meet the moment. If other cities believe they are exempt from that task, Governor Newsom, HCD Director Velasquez, BCSH Secretary Moss, and I will continue reminding those cities that they are in the wrong.” 

“We can’t solve California’s homelessness crisis without creating new housing and supportive services,” said Governor Gavin Newsom. “Elk Grove is not immune to this challenge, and the city's decision to block these efforts — wasting valuable time and resources — is especially shameful. We expect Elk Grove to follow the law — continued refusal will not be tolerated.”

“This is a victory in the state’s efforts to expand the availability of much needed supportive housing, consistent with California’s strong legacy upholding fair housing rights for people with disabilities and for those experiencing or at risk of homelessness,” said HCD Director Gustavo Velasquez. “We are resolute to see that every community in our state affirmatively furthers fair housing and expands integrated communities of opportunities. Our team will work with the City of Elk Grove to ensure this settlement is the first step in a lasting commitment to housing residents in need.”

“California needs a broad spectrum of housing solutions to address decades of inaction and underinvestment. This agreement reaffirms the importance of working together — at all levels of government and community — to provide affordable and dignified housing options that Californians deserve,” said BCSH Secretary Tomiquia Moss. “I am proud of HCD’s Housing Accountability Unit’s commitment to working in partnership with local jurisdictions to achieve results that impact the lives of so many Californians.” 

The terms of today’s settlement are as follows: 

• Reporting Requirements: 
• For a period of five years, Elk Grove must provide HCD with a copy of any preliminary application or full project application for a housing development that includes affordable or supportive housing within 30 days of receipt of the application. Elk Grove must also submit monthly reports to HCD with the status of proposed housing projects that include affordable or supportive housing. Further, Elk Grove agrees to meet with HCD to discuss the monthly reports. 
• For a period of five years, any time that Elk Grove disapproves an application for housing development that would include affordable or supportive housing, Elk Grove must make factual findings, with analysis, that the disapproval is consistent with the city’s obligation to affirmatively further fair housing, or put differently, combat historic patterns of segregation and foster more inclusive communities.
• Additional Housing Site: No later than July 1, 2025, Elk Grove must identify a new site for affordable housing in a highest resource area within the city that has equivalent development capacity to the original location. This new site must not currently be identified in Elk Grove’s housing element for low-income housing development, nor can it be currently zoned to accommodate housing for lower-income households. Highest resource areas provide greater opportunities for children to thrive because they are neighborhoods with the most positive economic, educational, and health outcomes in the region. The state’s Opportunity Map shows the highest resource areas and can be found here. 
• Settlement Payment: Within 30 days, Elk Grove must provide payment of $150,000 to the California Department of Justice. The payment serves as a reimbursement for the attorneys’ fees, expert fees, and costs incurred by the California Department of Justice as a result of the 2023 lawsuit. 

The 80-unit supportive housing project for lower-income households at risk of homelessness is known as the Coral Blossom Apartments. The state’s 2023 lawsuit alleged that the City of Elk Grove's denial of the 66-unit supportive housing project — known as the Oak Rose Apartments — violated numerous state laws, including Senate Bill 35 (SB 35) (Wiener, 2017), the Housing Accountability Act (HAA), the Nondiscrimination in Land Use Law, and the Affirmatively Furthering Fair Housing statute (AFFH). SB 35 requires local governments to provide streamlined, nondiscretionary approval of some projects when they are consistent with objective zoning standards. The HAA also prohibits local governments from enforcing zoning standards that are not objective. The Nondiscrimination in Land Use Law and AFFH prohibit local governments from making land use decisions that are based on discriminatory intent or that have a discriminatory effect. Over the public recommendation of city staff, which referenced the state’s lawsuit, Elk Grove on September 27, 2023 decided to postpone the vote on the Oak Rose Apartments. Attorney General Bonta issued a statement the following day, September 28, 2023, criticizing the postponement.  

Prior to the filing of the lawsuit, HCD issued a Notice of Violation on October 12, 2022, warning the city that its denial of the Oak Rose Apartments violated state law, and Attorney General Bonta sent a letter on March 16, 2023 urging the city to reconsider its unlawful denial of the Oak Rose Apartments or face the legal consequences.  

A copy of the settlement agreement can be found here.

Pricing alignment schemes contributed to higher rent prices throughout Southern California 

OAKLAND — California Attorney General Rob Bonta today, alongside the U.S. Department of Justice, and a bipartisan coalition of eight attorneys general, filed a lawsuit against RealPage, a revenue management software company used by landlords to price multifamily rental housing units. The lawsuit alleges RealPage enabled landlords to artificially raise rents by participating in a pricing alignment scheme that increased their rent revenue across the board, enabled by the illegal sharing of confidential pricing and supply information. This harmed consumers by decreasing competition, limiting price negotiation, and increasing prices in the rental housing industry. Pricing alignment schemes affected rental housing throughout California, especially in multifamily buildings in Southern California including in Orange County, Anaheim, Santa Ana, Irvine, Riverside, San Bernardino, Ontario, Rancho Cucamonga, Temecula, Murrieta, San Diego, and Carlsbad.

“Anticompetitive agreements are illegal, whether done by a human or software program. RealPage misused private and sensitive consumer data to take the competition out of the rental industry, leaving renters no other choice but to pay the intentionally high prices that landlords agreed to set,” said Attorney General Bonta. “This means that even if rental home supply was high, rent prices stayed the same, and in some cases, rents went up. This conduct is unacceptable and illegal, and given California’s current housing shortage and affordability crisis, it is causing real harm. Every day, millions of Californians worry about keeping a roof over their head and RealPage has directly made it more difficult to do so.”

RealPage is in the business of generating rent increases and growing revenue for landlords by using algorithmic models to recommend price increases to subscribers. It does so by amassing competitively sensitive data from competing landlords through its pricing algorithms and sharing this data among subscribers. Landlords understand that their nonpublic data will be used to recommend prices not just for their own units, but also for competitors who use the programs. Landlords agree to provide this information because they understand they will benefit from the information of their rivals. In other words, RealPage knows what competing landlords are charging and can increase profits for landlords by using that information to recommend landlords set or raise their prices uniformly, thereby eliminating competition, and leaving renters no choice but to pay artificially high prices.

Over the last four decades, housing needs have significantly outpaced housing production in California. Housing costs have skyrocketed, making it harder for Californians to keep a roof over their heads. California's 17 million renters spend a significant portion of their paychecks on rent, with an estimated 700,000 Californians at risk of eviction.   

The lawsuit filed today alleges RealPage violated Sections 1 and 2 of the Sherman Antitrust Act, which prohibits anticompetitive agreements, monopolization, and attempted monopolization. Monopolization offenses occur when a single firm maintains a monopoly unlawfully, by using its control of the market to exclude rivals and harm competition. RealPage’s unlawful sharing of nonpublic, competitively sensitive data aligns landlords’ pricing and effectively removes the competitive pressure that benefits renters. Without competitive pressure, landlords have no incentive to decrease prices or offer discounts common in rental markets, like a free month or waived fees. RealPage’s rivals who lawfully compete on merits cannot guarantee landlords the increased profits that RealPage can provide, this maintains and protects RealPage’s monopoly power. 

The lawsuit seeks to end:

• The anticompetitive agreements between RealPage and its landlord customers to share confidential, competitively sensitive information.
• A pricing alignment scheme to raise rents for the American public.
• RealPage’s illegal monopoly in revenue management software built on the competitors’ data that it collects and uses.

In filing the lawsuit, Attorney General Bonta joins the U.S. Department of Justice and the attorneys general of Colorado, Connecticut, Minnesota, North Carolina, Oregon, Tennessee, and Washington.

A copy of the complaint can be found here. 

OAKLAND — California Attorney General Rob Bonta today issued an information bulletin to city attorneys and county counsel, reminding them of new and important state law requirements regarding inspections of apartments and other multi-family properties. Authored by Assemblymember Tasha Boerner (D-Encinitas) and signed into law in 2023, Assembly Bill 548 (AB 548) requires local enforcement agencies to develop policies and procedures by January 1, 2025 to inspect all relevant portions of a building when a building inspection uncovers substandard conditions or violations of State Housing Law in one unit that have the potential to affect other units in the building, so that all violations may be corrected. City attorneys and county counsel play a critical role in advising building inspectors and local code enforcement in their work to protect tenants and property owners. 

“The real-world implications of AB 548 are significant: unsafe housing conditions — like mold, pests, and lead hazards — will be more quickly and comprehensively addressed in apartments and other multi-family properties,” said Attorney General Bonta. “I urge city attorneys and county counsel to ensure that these policies and procedures are implemented expeditiously, particularly in light of the state’s ongoing affordable housing shortage. The displacement of families can be devastating, and faithful implementation of AB 548 will keep people in their homes by incentivizing proactive maintenance.”

"Healthy and affordable housing conditions for renters are essential to solving our housing crisis and reducing the disproportionate exposure to unhealthy housing conditions in low-income communities and communities of color," said Assemblymember Tasha Boerner. "I want to thank the Attorney General for urging our local enforcement agencies to catch these problems, which often go unreported, before they become serious health hazards."

In today’s information bulletin, Attorney General Bonta adds that:  

• AB 548 builds on other recent state legislation regarding city and county responses to complaints of unsafe or substandard housing conditions. For example, since July 2022, state law has required local enforcement agencies to conduct inspections, including of the interior of units, in response to resident complaints, and to do so within the same timeframe as the local jurisdiction conducts final inspections of construction work necessitating permits. 

• A tenant who must vacate a substandard unit is typically eligible for relocation benefits, unless the tenant “substantially contributed to” the conditions necessitating the order to vacate, or unless the conditions were caused by a natural disaster such as a fire, earthquake, or flood. Enforcement agencies are responsible for determining whether a tenant is eligible for relocation benefits, and for communicating that determination to the tenant and owner. 

• Cities and counties are encouraged to consult with their jurisdiction’s legal counsel to address any questions about these statutory requirements and about the implementation of policies and procedures consistent with them. For other information, or to discuss other tenant-protection matters of statewide concern, please contact housing@doj.ca.gov.

A copy of the information bulletin is available here.

OAKLAND — Joining a coalition of 18 attorneys general, California Attorney General Rob Bonta today filed an amicus brief in support of the U.S. Department of Housing and Urban Development’s (HUD) Discriminatory Effects Rule. The rule was adopted by HUD to implement the federal Fair Housing Act (FHA), which aims to root out racial and other forms of prohibited discrimination from housing and housing-related services. Currently being challenged by the insurance industry, the Discriminatory Effects Rule says insurers and other parties are liable for housing practices that may appear neutral but in reality are discriminatory and have a “disparate impact” on certain populations.

“Housing discrimination is no longer what it once was: explicit and obvious for all to see. Instead, housing discrimination remains alive and well in mostly implicit ways. The U.S. Department of Housing and Urban Development’s rule recognizes that unfortunate reality and empowers individuals to do something about it,” said Attorney General Bonta. “I fully support the Biden Administration as it defends the rule in court. At the California Department of Justice, we are committed to eliminating racial, ethnic, and other unlawful disparities in housing and every other aspect of society.”  

In the amicus brief, Attorney General Bonta and other members of the coalition argue that: 

• Despite the enactment of the FHA, vestiges of residential segregation persist in American social life, and the discriminatory effects doctrine, including disparate-impact liability, is a crucial tool to fight ongoing housing discrimination — whether intentional or unintentional.
• Discrimination in homeowner’s insurance can take many forms — such as offering insurance policies with inferior coverage, ignoring interested customers, and imposing different terms and conditions based on neighborhood — and disparate-impact claims have helped to redress discrimination in the homeowner’s insurance market. 
• For instance, Black plaintiffs recently brought a class action lawsuit against State Farm for its use of algorithms that “allegedly resulted in statistically significant racial disparities in how the insurer processed claims.” According to the plaintiffs, Black claimants had to wait longer to receive payouts as compared to white claimants. The court ruled in the plaintiffs’ favor, finding that they successfully stated a disparate-impact claim under the FHA. 
• State law does not categorically shield homeowner’s insurers from federal disparate-impact liability. Indeed, federal law and state law work together to prohibit both intentional and disparate-impact discrimination.
• The availability of a disparate-impact claim under the FHA was reinforced by the U.S. Supreme Court’s 2015 decision in Texas Department of Housing & Community Affairs v. Inclusive Communities Project, Inc.

After the insurance industry challenged the rule, the U.S. District Court for the District of Columbia granted summary judgment in favor of HUD. The insurance industry has appealed the decision to the U.S. Court of Appeals for the District of Columbia. In filing today’s amicus brief, Attorney General Bonta joins the attorneys general of Arizona, Colorado, Delaware, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington, and the District of Columbia. 

A copy of the amicus brief can be found here.

OAKLAND — California Attorney General Rob Bonta today filed a notice of appeal to reverse a judgment by the Los Angeles County Superior Court that would prevent the California Department of Justice from enforcing Senate Bill 9 (SB 9) against five charter cities on the basis that it violates their state constitutional authority. Under SB 9, local agencies must provide a “ministerial," or streamlined, approval process for homeowners to build a duplex on, or subdivide into two lots, a lot zoned for single-family homes.

"We firmly believe that SB 9 is constitutional as to every city in the state," said Attorney General Bonta. "As the California Second District Court of Appeal recently held, ensuring housing availability and affordability in California is a matter of statewide importance. My office has vigorously defended the Legislature’s efforts to provide dignified housing to every Californian, and we will continue doing just that with SB 9."

The underlying lawsuit challenging SB 9 was filed on March 29, 2022 by four Southern California cities — Redondo Beach, Carson, Torrance, and Whittier. The City of Del Mar joined the lawsuit on February 7, 2023. A copy of the notice of appeal can be found here.