Housing

Malibu to update housing plan by September 2024 for development of 79 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 with the city of Malibu that will enable the city to reach compliance with the state’s Housing Element Law. With dedicated technical support from the state, the city will adopt a housing plan by September 23, 2024, to allow for the development of 79 housing units, 47 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, Malibu was required to update its housing plan by October 15, 2021 to accommodate its 79-unit RHNA target. The city submitted a Housing Element Update in 2022, but was not found to substantially comply. After receiving a notice of violation from the state, the city and state conferred in good faith to chart a course for the city to attain compliance.  

“Our housing laws are not optional; they apply to all cities and counties in California. Today’s settlement with the City of Malibu underscores that basic principle,” said Attorney General Rob Bonta. “We are facing a housing crisis of epic proportions. When local jurisdictions like Malibu do their part and allow more homes to be constructed, all Californians benefit. My office will continue working closely with HCD to make sure that every single city and county comes into compliance and plans for the future." 

“To communities large and small, affluent, or otherwise – everyone must build their fair share of housing," said Governor Gavin Newsom. "Rather than further delay action through litigation, Malibu has decided to work with the state to plan for the development of more housing.” 

“Malibu is a community that holds both tremendous need for affordable housing, and tremendous opportunity. This agreement provides an enforceable contract to ensure those housing needs are met,” said HCD Director Gustavo Velasquez. “We are very appreciative to the City of Malibu for working with us to create this path to compliance with state housing law, and my team will provide every resource to help them be successful in that effort.” 

“We understand the importance of adhering to the State’s housing element law and are dedicated to fulfilling our obligations,” said Steve Uhring, Mayor of Malibu. “Despite the challenges we’ve encountered, such as the devastation of the Woolsey Fire and the issues caused by the COVID-19 pandemic and staff turnover, our partnership with HCD has been pivotal in guiding us toward a resolution. This settlement reflects the shared goal of the City and State of California to address housing needs effectively in our 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 $70,650 is defined as low-income, and a one-person household that earns less than $44,150 is defined as very-low income.  

Under the settlement:

• Malibu will take several required actions to adopt a compliant housing element by September 23, 2024. 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 Malibu has agreed to an expedited timeline and ensuring the public’s participation.
• Malibu 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. 
• Malibu 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.

SACRAMENTO — California Attorney General Rob Bonta today announced his sponsorship of a bill authored by Assemblymember Buffy Wicks (D-Oakland) that would facilitate the construction of housing in cities and counties that fail to adopt a compliant housing element on time. Under California’s Housing Accountability Act (HAA), failure to adopt a timely and compliant local housing plan triggers the so-called “builder’s remedy,” a provision in effect since 1990 that limits the ability of local governments to restrict the development of new affordable and mixed income housing development projects. If enacted, Assembly Bill 1893 (AB 1893) will modernize and improve the efficacy of the builder’s remedy.

“California is facing a housing crisis of epic proportions. That is why we have been acting with great urgency, and why I’m now proud to sponsor AB 1893,” said Attorney General Rob Bonta. “The builder’s remedy is meant to hold accountable jurisdictions that do not adopt a compliant housing element on time, because every Californian suffers when cities and counties fail to plan for the future. It has been over 30 years since the builder's remedy was enacted and it's remained in effect, largely unchanged, since then. With AB 1893, we are finally updating this important provision to be clearer for local governments, planners, developers, and courts, while ensuring that even cities without up-to-date housing plans continue to develop desperately needed housing that is affordable to middle-class and lower-income Californians.” 

“It’s going to take all of us to solve our housing crisis, and AB 1893 will require all cities and counties to be a part of the solution,” said Assemblymember Buffy Wicks. “The message to local jurisdictions is clear — the days of shirking your responsibility to your neighbors are over.”

"California Community Builders believes AB 1893 is essential, common sense legislation. Housing is a top concern for Californians throughout the state — and especially Californians of color who suffer disproportionately from high housing costs and a lack of homeownership options they can afford," said Adam Briones, CEO of California Community Builders. "AB 1893 will modernize the Housing Accountability Act for the 21st century and ensure clear, consistent, reasonable consequences when cities don’t follow the rules."

"Habitat for Humanity California and our 33 Habitat affiliates express our strong support for AB 1893," said Maureen Sedonaen, Board Chair of Habitat for Humanity California, and CEO of Habitat for Humanity Greater San Francisco. "We believe in using all the tools in our toolbox to build affordable housing, and this legislation calls on local governments to join us in these efforts. Let’s not spend time litigating, let’s spend our time building affordable housing together."

Under the HAA's builder's remedy provision, local governments subject to the builder’s remedy may not deny certain housing projects — in particular, those that include certain thresholds of low- or moderate-income units — for inconsistency with zoning or land use designation. This is a limitation placed on cities and counties to encourage them to act in good faith and follow the state's housing element law. Under the housing element law, every city and county must periodically update its housing plan to meet its Regional Housing Needs Allocation (RHNA), or share of the regional and statewide housing needs. The housing element process is a critical part of California’s housing strategy because it allows cities and counties to plan for their regional fair share while addressing specific local needs and conditions. When a jurisdiction fails to adopt a compliant housing element on time, it prejudices residents and neighboring jurisdictions and impairs statewide planning. While developers have submitted dozens of builder’s remedy applications in the past year alone, many noncompliant jurisdictions have not been processing those applications in a timely fashion.

If enacted, AB 1893 would provide more guidance and certainty as to the applicable standards, reducing the prospect of disputes and litigation that impede the development of additional housing. For example, AB 1893 would:

• Designate sites appropriate for residential development, including housing, retail, and office space. Sites that have an existing industrial use or are adjacent to an industrial use would be precluded from the builder’s remedy. Industrial uses can pose environmental threats to housing that is located nearby.
• Provide clear objective standards, such as upzoning by doubling, or in high resource areas tripling, the density allowed under current zoning. Upzoning is where the amount of development allowed on a parcel of land is increased.
• Make technical amendments to clarify how the builder’s remedy interacts with other state law.
• Incentivize housing construction by making more development projects feasible, and enabling smaller developers to compete. By exempting sites 10 units and fewer from affordability requirements and by reducing the affordability requirement for mixed-income projects from 20% to 10%, many more builder's remedy projects will be financially feasible, including small-scale “missing middle” projects. “Missing middle” projects are relatively small multifamily development projects, like duplexes and townhomes, that are more affordable than similarly located single-family homes, and serve the needs of more diverse households.
• Allow city planning staff to quickly process builder’s remedy applications, since they will be required to utilize the baseline development standards set forth in the bill. Existing law is less certain.  

A copy of the legislation can be found here.

SACRAMENTO – California Attorney General Rob Bonta today announced a settlement resolving allegations that Arnel Management Company (Arnel) illegally withheld security deposits from tenants in Southern California. Specifically, Arnel — a corporate landlord that operates 19 apartment complexes in Orange and Los Angeles counties — is alleged to have automatically deducted pre-set cleaning charges from security deposits in violation of California law and an existing injunction. Under the terms of today’s settlement, Arnel will pay over $1 million and be subject to more stringent injunctive terms to deter future misconduct.

“California tenants have rights, and my office is committed to protecting those rights,” said Attorney General Bonta. “For many renters, especially those from lower income backgrounds, affording a security deposit entails a great deal of sacrifice. We are holding Arnel accountable because, in some cases, the company failed to return to tenants the entire security deposit that they were legally entitled to and worked hard to save up for.”

In 2001, the California Attorney General’s Office reached a separate settlement with Arnel related to its security deposit withholding practices. Today’s settlement is the result of a new investigation into Arnel and will replace and refine the terms of the 2001 judgment. The new investigation revealed that in some buildings Arnel was deducting pre-set cleaning fees from tenants’ security deposits, irrespective of the condition of the unit. Tenants could only avoid the pre-set cleaning fees by having their unit professionally cleaned when they moved out. 

Under the settlement, Arnel will, among other things:  

• Pay $500,000 in additional civil penalties.
• Pay $650,000 that will go to tenant rights-related legal aid organizations in Orange and Los Angeles counties.
• Be prohibited from requiring a tenant to repair any damages or defective conditions that preexisted the tenancy or that resulted from ordinary wear and tear.
• Be prohibited from imposing any pre-set or predetermined deductions, or treating any portion of a security deposit as nonrefundable, including, without limitation, by charging a standard cleaning fee, a standard carpet cleaning fee, a standard painting fee, or any other standard fees or deductions not tied to the condition of the unit.
• Be required to provide clear notice to tenants of their rights.
• Be required to respond to tenant complaints in writing, and support security deposit deductions with pictures. 

Under state law, withholding cleaning fees from a security deposit is allowed only when the unit is not left in the same level of cleanliness as when the tenant moved in. Tenants may clean their unit themselves, and landlords may not deduct for repairing ordinary wear and tear. In addition, tenants may ask their landlord to inspect their unit before they move out and identify any issues, so that the tenant has the chance to fix or clean them in order to avoid security-deposit deductions. Earlier this year, Attorney General Bonta issued five consumer alerts advising California tenants of their rights and protections under state law, and alerting property managers and landlords of their obligations to tenants. The consumer alert on security deposits can be found here. It is also available in Spanish, Chinese, Korean, Tagalog, and Vietnamese. 

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

SACRAMENTO – California Attorney General Rob Bonta today issued the following statement in response to the ruling by the California Second District Court of Appeal affirming a lower court opinion, which found that Senate Bill 10 (SB 10) was constitutional. SB 10 empowers local governments to allow for denser housing, irrespective of local restrictions, if the local government so chooses.

“All along, we have been arguing that SB 10 is constitutional. Today, the California Second District Court of Appeal ruled in our favor,” said Attorney General Rob Bonta. “Up and down our state, Californians are struggling to afford housing. Our legislature passed SB 10 to help address that problem by allowing for the construction of denser housing. I would like to thank Senator Wiener for authoring SB 10, and thank my team for successfully defending this important law.”

“This ruling is a big win for all Californians struggling under our housing affordability crisis,” said Senator Scott Wiener. “The court’s recognition that our housing crisis is best tackled at the state level is a historic step forward for pro-housing policy. The Department of Justice’s excellent work on this case has paved the way for much more progress to come.” 

Attorney General Bonta is committed to advancing housing access, affordability, and equity in California. Just last week, he announced his sponsorship of a bill authored by Senator Wiener that would enhance the Attorney General’s ability to seek civil penalties in court against local governments that violate state housing law. Earlier this month, Attorney General Bonta also secured a court order requiring La Cañada Flintridge to process the approval of a mixed-use affordable housing project under the Housing Accountability Act’s so-called “builder’s remedy” because the city did not have a compliant housing element in place when the project was proposed.

A copy of the appellate court’s decision can be found here.

SACRAMENTO — California Attorney General Rob Bonta today announced his sponsorship of a bill authored by Senator Scott Wiener (D-San Francisco) that would enhance the Attorney General’s ability to seek civil penalties in court against local governments that violate state housing law. 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. Under Senate Bill 1037 (SB 1037), the Attorney General could instead seek new penalties that are assessed from the date that the housing law violation began.

“In recent years, California has passed numerous laws to speed up the construction of affordable housing. Unfortunately, some local governments have flouted those laws because they know that monetary penalties only kick in weeks or even months after a court order is issued, if ever,” said Attorney General Rob Bonta. “We are in a housing crisis and cannot afford to waste any more time. Senator Wiener and I are announcing SB 1037 to ensure that we can quickly hold accountable those who refuse to follow the law and act in good faith.”

“In a housing crisis as severe as California’s, cities that violate state law to avoid doing their share should not skate by scot-free,” said Senator Scott Wiener. “The state housing laws we’ve passed in recent years rely on swift and effective enforcement from officials such as the Attorney General. I’m happy to be working with Attorney General Bonta to provide a new tool to allow more housing to be built in California.” 

SB 1037 targets local governments that refuse to adopt a compliant housing element and/or violate a ministerial approval law. If enacted, SB 1037 would 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. The penalty money would be earmarked to support the development of affordable housing located in the affected jurisdiction.

Under the state’s Housing Element Law, every city and county in California must periodically update its housing plan to meet its share of the regional and statewide housing needs. Laws requiring “ministerial,” or streamlined, approval include Government Code sections 65852.2 and 65852.22, which allow homeowners to add accessory dwelling units, as well as Assembly Bill 2011 concerning affordable housing projects located in commercial zones. Ministerial review is where public officials, such as local planning staff, ensure that a proposed development meets all applicable objective standards for a proposed action. 

A copy of the legislation can be found here.

OAKLAND – In recognition of National Consumer Protection Week, California Attorney General Rob Bonta today highlighted ongoing efforts to protect California consumers and urged Californians to report misconduct or violations of state consumer protection laws to the California Department of Justice (DOJ) at oag.ca.gov/report. Complaints submitted by the public provide DOJ with important information about potential misconduct to help determine whether to investigate a business or individual.

“In California, we have strong consumer protection laws and a tremendous team working around the clock to protect Californians online, in their financial lives, in their efforts to find and keep housing and education, and across the marketplace. And we need your help,” said Attorney General Bonta. “This National Consumer Protection week I urge Californians to stand up with me and know their rights as consumers, and to let us know if they see misconduct in the market. Whether protecting data privacy, tenant protections, or stopping egregious bank fees, as the People’s Attorney, I am committed to enforcing consumer protections in the state of California and speaking out for consumer protections nationwide.”

STANDING UP FOR CONSUMER FINANCIAL PROTECTION:

In February, Attorney General Bonta issued letters to banks and credit unions not subject to the Consumer Financial Protection Bureau’s supervision warning that overdraft and returned deposited item fees may violate California’s Unfair Competition Law (UCL) and the federal Consumer Financial Protection Act (CFPA). Some financial institutions charge up to $36 or more for each overdraft. California consumers paid an estimated $200 million in overdraft fees in 2022, with the financial burden disproportionately falling on low-income consumers and consumers of color.

In December 2023, Attorney General Bonta joined a bipartisan multistate coalition of attorneys general in submitting an amicus brief to the U.S. Supreme Court defending states’ rights to enforce state consumer financial protection in Cantero v. Bank of America.

In May 2023, Attorney General Bonta, and a coalition of 24 attorneys general, filed an amicus brief in the U.S. Supreme Court supporting the Consumer Financial Protection Bureau’s (CFPB) contention that the agency’s funding structure is constitutional and arguing that the court should not invalidate the CFPB’s past and ongoing regulatory and enforcement actions. Those regulatory and enforcement actions cover all aspects of consumer financial markets; if allowed to stand, the Fifth Circuit’s decision threatens to upend over a decade of enforcement and regulatory work by the CFPB and would be detrimental to consumers across the country.

HIGHER EDUCATION: 

There is a $1.7 trillion student loan debt crisis in the United States. DOJ is committed to supporting the efforts of the U.S. Department of Education to ease the burden of federal student loans and is committed to protecting California student loan borrowers and those seeking higher education from predatory colleges and lending.  

In February, Attorney General Bonta celebrated the decision by the California Court of Appeal affirming a lower court’s decision which found in the state’s favor in its lawsuit against Ashford University, an online, for-profit college, for violating California’s unfair competition and false advertising laws. In 2017, DOJ filed a lawsuit alleging that Ashford University and Zovio provided false and misleading information to students about career outcomes, cost and financial aid, pace of degree programs, and transfer credits, in order to persuade them to enroll to persuade them to enroll in the school and then used illegal debt collection practices when students struggled to pay their bills. As part of the decision, the court ordered Ashford University and Zovio to pay more than $21 million in penalties.

If you believe you have been the victim of a predatory loan, deceived by a for-profit college, or otherwise taken advantage of, you can file a complaint at oag.ca.gov/report. 

HOUSING: 

California is facing a housing shortage and affordability crisis of epic proportions. Almost 17 million Californians – 44% of all state residents – live in homes that are rented and over half of California renter households are housing cost-burdened, placing them at increased risk of housing instability and homelessness. Co-authored by Attorney General Bonta during his time as a state assemblymember, the Tenant Protection Act (TPA) limits rent increases and prohibits landlords from evicting tenants without just cause.

In February, Attorney General Bonta announced a settlement with two separate Bakersfield landlords and their property management company, Clemmer & Company, for multiple violations of the TPA and, in the case of the management company and one landlord, for violation of the Fair Employment and Housing Act.

Also in February, Attorney General Bonta issued five housing consumer alerts advising California tenants of their rights and protections under state law, and alerting property managers and landlords of their obligations to tenants. One of the alerts, a Know Your Rights alert that notifies tenants of the TPA’s statewide rent increase cap, is available in 24 languages. The remaining four consumer alerts are available in English, Spanish, Chinese (Simplified), Korean, Tagalog, and Vietnamese. All of the alerts are available here, near the bottom of the page.

In January, Attorney General Bonta announced a settlement with Invitation Homes to resolve allegations that the company violated the TPA and California’s price-gouging law by unlawfully increasing rents on approximately 1,900 households.

In June 2023, Attorney General Bonta announced a settlement against Green Valley Corporation, a San Jose-based housing developer and property manager to resolve allegations that the company violated the TPA by issuing unlawful rent increases to nearly 20 of its employee tenants and serving unlawful eviction notices to six of those employee tenants.

In addition to statewide protections, some cities and counties have additional rental protections, including stricter limits on rent increases than the TPA and additional just cause requirements. Californians should check what protections are in place where they live. For more information and resources, visit the Resources for Tenants tab here.

PROTECTING CHILDREN ONLINE:  

In January, Attorney General Bonta, Assemblymember Buffy Wicks, and Senator Nancy Skinner introduced the California Children’s Data Privacy Act (AB 1949 (Wicks)), and the Protecting Our Kids from Social Media Addiction Act (SB 976 (Skinner)), landmark legislation seeking to protect youth online. These two bills would, respectively, limit the harms associated with social media addiction and provide more robust protections for kids’ data privacy.

In October 2023, Attorney General Bonta co-led a bipartisan coalition of 33 attorneys general in filing a federal lawsuit against Meta Platforms, Inc. and affiliates (Meta), alleging that Meta designed and deployed harmful features that addict children and teens to their mental and physical detriment. Unredacted documents from this lawsuit demonstrate Meta is aware and purposefully utilizing algorithmic content delivery to target and addict children to social media — actions that they know is causing harm. 

DATA PRIVACY:

The California Consumer Privacy Act (CCPA) provides consumers with groundbreaking rights over their personal information, including:

• Right to Know – Consumers may request that a business tell them what specific personal information they have collected, shared, or sold about them, and why it was collected, shared, or sold.
• Right to Delete — Consumers may request that a business delete personal information that the business collected from the consumer, subject to some exceptions.
• Right to Opt-Out — If a business sells their personal information, consumers may request that it stop doing so.
• Rights for Minors — A business cannot sell the personal information of minors under the age of 16 without their permission and, for children under 13, without parental consent.
• Right to Non-Discrimination — A business may not discriminate against consumers who exercise their rights under the CCPA.

Earlier this year, as part of ongoing efforts to enforce the CCPA, Attorney General Bonta announced an investigative sweep, and sent letters to businesses with popular streaming apps and devices, alleging that they fail to comply with the CCPA. The sweep focused on the compliance of streaming services with CCPA’s opt-out requirements for businesses that sell or share consumer personal information, including those that do not offer an easy mechanism for consumers who want to stop the sale of their data.  

In February Attorney General Bonta announced a settlement with DoorDash, resolving allegations that the company violated the CCPA and the California Online Privacy Protection Act (CalOPPA) by selling its California customers’ personal information without providing notice or an opportunity to opt out of that sale.

For more information about the CCPA, visit oag.ca.gov/ccpa. To report a violation of the CCPA to the Attorney General, submit a complaint at oag.ca.gov/report.

TELEMARKETING:

Telephone scams, like robocalls and robotexts, can result in people losing millions through phishing texts, imposter scams, and links containing ransomware. In 2023 alone, consumers reported losing more than $10 billion to fraud, this marks a 14% increase over reported losses in 2022. 

In February, Attorney General Bonta joined a coalition of 51 bipartisan attorneys general in issuing a warning letter to Life Corporation, a company that allegedly sent New Hampshire residents scam election robocalls during the New Hampshire primary election. The calls allegedly used artificial intelligence to impersonate the president and discourage voters from participating in the primary. 

In January, Attorney General Bonta joined a coalition of 26 attorneys general in filing a comment letter responding to the Federal Communications Commission’s (FCC) notice of inquiry related to the potential impact of emerging artificial intelligence (AI) technology on efforts to protect consumers from illegal robocalls or robotexts. 

For more tips and information on consumer protection, please visit https://oag.ca.gov/consumers.

OAKLAND — California Attorney General Rob Bonta today issued the following statement after a court decided that La Cañada Flintridge is required to process the approval of a mixed-use affordable housing project under the Housing Accountability Act’s so-called “builder’s remedy” because the city did not have a compliant housing element in place when the project was proposed. The court determined that the Housing Element Law does not allow cities to certify their own housing element as compliant with the law. The City’s “self-certification” therefore did not allow it to disapprove the development application. Further, the court clarified that cities must promptly provide housing project applicants with an “exhaustive list” of any information that is missing from their applications and addressed how the Housing Accountability Act intersects with a local agency’s environmental review obligations under California Environmental Quality Act.

“We are pleased that the court agrees with us that La Cañada Flintridge must follow state housing laws to facilitate affordable housing and alleviate our housing crisis,” said Attorney General Bonta. “The California Department of Justice is committed to enforcing state laws that increase housing supply and affordability.”

In December 2023, Attorney General Bonta and the California Department of Housing and Community Development (HCD) filed a request to intervene and a proposed writ of mandate in Cal. Housing Defense Fund v. City of La Cañada Flintridge. In the filings, Attorney General Bonta and HCD request that the court allow them to intervene in the case to uphold California’s housing laws and reverse the City of La Cañada Flintridge’s denial of a mixed-use affordable housing project that would bring 80 mixed-income residential dwelling units, 14 hotel units, and 7,791 square feet of office space to the community.

A copy of the decision is available here.

OAKLAND — California Attorney General Rob Bonta today announced a settlement with two separate local Bakersfield landlords and their property management company, Clemmer & Company, for multiple violations of the Tenant Protection Act (TPA) and for violation of the Fair Employment and Housing Act. Co-authored by Attorney General Bonta during his time as a state assemblymember, the TPA was signed into law by Governor Gavin Newsom in 2019. It created significant new protections for most tenants, including limiting rent increases and prohibiting landlords from evicting tenants without just cause. As part of the settlement, the owners and property manager will collectively pay restitution and penalties totaling $213,000 and must comply with strong injunctive terms. 

“When it comes to protecting tenants and ensuring that all Californians have a place to call home, the California Department of Justice is all in. Today's settlement sends a strong message: The Tenant Protection Act is the law—and it must be followed by everyone, everywhere in California,” said Attorney General Bonta. “If you are interested in getting into the renting business, as a landlord or property manager, you are responsible for knowing and abiding by state and local laws and regulations. Property management companies are responsible for complying with the TPA and related laws, even when acting on the requests of landlords. California law also protects renters from discrimination based on their source of income, such as if they use a Section 8 Housing Choice Voucher. Keeping people housed is a top priority for my office and I am committed to enforcing violations of people’s rights to housing. Full stop.”

An investigation by California Department of Justice (DOJ) found that the two individual landlords, each of whom own over a hundred units, and property manager Clemmer & Company unlawfully issued eviction notices in violation of the TPA. One landlord issued over 40 eviction notices on the basis that the landlord intended to substantially remodel the units, but the remodeling work performed did not meet the standards required under the TPA to justify eviction. The other landlord issued at least two eviction notices targeting tenants with Section 8 Housing Choice Vouchers on the same basis but performed no remodeling work. These two eviction notices violated the TPA and constituted unlawful discrimination against Section 8 Housing Choice Voucher recipients. The property manager facilitated many of these unlawful evictions. Separately, the second landlord also unlawfully increased rent for dozens of tenants, including by issuing multiple rent increases within a single year that combined to exceed the TPA’s 12-month rent cap, and failed to return security deposits within 21 days of move-out and to provide documentation of deductions as required under California’s security-deposit law.

The settlement terms include payments totaling $213,000, consisting of $93,000 in civil penalties and $120,000 in restitution to be paid to approximately 85 current and former tenants. This restitution will help affected families recover financially from rent hikes or displacement. The settlement also imposes strong injunctive terms, including the following:

• Reset rental rates for current tenants who paid unlawful rent.
• Comply with Senate Bill 567, which takes effect April 1 and strengthens the TPA’s eviction protections. Among other things, eviction notices based on substantial remodels must include a description of the work to be completed, copies of required permits, the date the owner expects to complete the work, and notification that if the substantial remodel is not commenced or completed, the tenant must be offered the opportunity to re-rent the unit at the same rent and lease terms as when the tenant left.
• Provide annual reports to California DOJ with copies of all of substantial remodel eviction notices, with other required documentation varying by defendant. 
• Clemmer & Company will provide annual trainings to all employees about landlord-tenant and fair housing laws 

Today’s settlement represents California DOJ’s third enforcement settlement under the TPA. To date, the TPA has been enforced against a large housing developer and property manager, a large landlord with statewide rental operations, and now, smaller, local landlords and a property management company.

In January, Attorney General Bonta announced a settlement with Invitation Homes to resolve allegations that the company violated the TPA and California’s price-gouging law by unlawfully increasing rents on approximately 1,900 homes. In June 2023, Attorney General Bonta announced a settlement against Green Valley Corporation, a San Jose-based housing developer and property manager to resolve allegations that the company violated the TPA by issuing unlawful rent increases to nearly 20 of its employee tenants and serving unlawful eviction notices to six of those employee tenants. Earlier this month, Attorney General Bonta issued five housing consumer alerts advising California tenants of their rights and protections under state law, and alerting property managers and landlords of their obligations to tenants. The Know Your Rights alert is available in 24 languages. The remaining four consumer alerts are available in English, Spanish, Chinese (Simplified), Korean, Tagalog, and Vietnamese. All of the alerts are available here.

 A copy of the complaints and proposed judgments for all three parties are available here: 1a, 1b, 2a, 2b, 3a, 3b. 

OAKLAND — California Attorney General Rob Bonta today issued the following statement in response to the decision by the U.S. District Court for the Central District of California to dismiss with prejudice Huntington Beach's lawsuit, which sought to exempt the city from state housing laws:
 
"We filed a motion to dismiss Huntington Beach's federal lawsuit because we believed it was meritless. We are pleased that the court agreed," said Attorney General Bonta. "With this behind us, we look forward to prosecuting our state case against Huntington Beach. Everyone must do their part to address California's housing crisis."
 
A copy of the court's decision can be found here.

OAKLAND – California Attorney General Rob Bonta today, on the two-year anniversary of the Housing Justice Team within the California Department of Justice, highlighted the critical work done to fight for equitable, affordable housing:

“Two years ago today, I launched the Housing Justice Team to advance housing access, affordability, and equity in California. Since then, our talented attorneys have delivered real results,” said Attorney General Bonta. “From protecting renters from unlawful evictions to ensuring that local governments allow for the building of their fair share of housing, I am immensely proud of what the Housing Justice Team has accomplished already. Tackling California’s housing crisis remains a top priority — and with the work of the past two years, we are just getting started.” 

Formerly called the Housing Strike Force, the Housing Justice Team draws on the expertise of attorneys from the California Department of Justice’s Land Use and Conservation Section; Consumer Protection Section; Civil Rights Enforcement Section; and the Environment Section’s Bureau of Environmental Justice. Among the Housing Justice Team’s accomplishments are the following:

• Securing a settlement with the City of Coronado that will allow for the development of 912 housing units.
• Securing a settlement with the City of San Bernardino that will allow for the development of 8,123 housing units.
• Securing a settlement against Green Valley Corporation, a San Jose-based housing developer and property manager also known as Swenson Builders, to resolve allegations that the company violated the California Tenant Protection Act by issuing unlawful rent increases to nearly 20 of its employee tenants and serving unlawful eviction notices to six of those employee tenants.
• Securing a $3.5 million settlement against Wedgewood, a Los Angeles county-based real estate investment company, resolving allegations that Wedgewood unlawfully evicted tenants from properties purchased at foreclosure sales.
• Filing a lawsuit against the City of Elk Grove over its failure to approve a housing proposal that would create 66 apartments for lower-income households at risk of homelessness.
• Filing a lawsuit against the City of Huntington Beach over its failure to adopt a compliant housing element. The housing element is a crucial tool for building housing for moderate-, low-, and very low-income Californians.
• Successfully defending state laws, like the Regional Housing Needs Allocation (RHNA), from local governments challenging their obligation to plan and zone for more housing.
• Sponsoring and supporting housing bills, such as Assembly Bill 1485, which was signed into law by Governor Gavin Newsom and will permit the Attorney General to automatically intervene without court permission in lawsuits brought by third parties for alleged violations of state housing laws.
• Reminding local governments of the strict requirements for “urgency zoning ordinances,” and discouraging the abuse of such ordinances to limit or circumvent state housing laws.
• Issuing letters to all housing authorities in the state, reminding them that tenants who receive Section 8 Housing Choice Vouchers are protected under California’s Tenant Protection Act.
• Issuing legal guidance about steps law enforcement officers should take to prevent and respond to unlawful lockouts and self-help evictions.
• Reminding California’s tenants of their rights and protections under state law, including limits on rent increases.
• Announcing statewide guidance to address Crime-Free Housing policies that disproportionally discriminate against people of color, survivors of domestic violence, people with disabilities, and justice-involved individuals.

For more information about the Housing Justice Team and its work, as well as resources for homeowners and tenants, visit www.oag.ca.gov/housing. The Housing Justice Team reminds Californians that they can send complaints or tips related to housing to housing@doj.ca.gov. Tenants who need legal help can find legal aid resources in their area at www.LawHelpCA.org.