In 2019, Governor Gavin Newsom took steps to protect renters in California from exorbitant rent increases and unjust evictions. Recently, the state made its first move to enforce this rent control law by taking action against a landlord.
Attorney General Rob Bonta announced that Green Valley Corp., a San Jose-based developer and property manager, had violated the rent control law by raising the rent on 20 Silicon Valley tenants by an average of 151%, well above the cap set by the law. Additionally, the company unlawfully evicted six tenants without providing a valid reason. Bonta emphasized that this enforcement action was not an isolated incident and that the state would continue to hold landlords accountable for violating tenant protections.
As part of the settlement filed in Santa Clara County Superior Court, Green Valley, also known as Swenson Builders, will be required to pay $391,130. Out of this amount, $331,130 will be refunded to tenants who paid excessive back rent.
This landmark enforcement action marks a significant moment in the implementation of the California Tenant Protection Act. San Francisco City Attorney David Chiu, who authored the 2019 law, reaffirmed that the law will be enforced. The settlement concludes an extensive investigation conducted by the Attorney General’s office.
Last year, Swenson increased the rent for tenants in San Jose’s Japantown, prompting legal aid organizations to intervene. The company admitted to overcharging rent and reimbursed three tenants. Tenant rights groups have long criticized the effectiveness of the 2019 law, viewing it as insufficient. Bonta’s public enforcement action symbolizes a much-needed commitment to protecting tenants.
The 2019 law, introduced by Chiu and co-authored by Bonta, included a cap on annual rent hikes of 5% plus inflation. The law also required landlords to provide a valid reason for evicting tenants without compensation. However, the law did not specify who would enforce these provisions, leaving tenants to challenge violations in court.
Experts have been unable to determine the extent to which the law is followed or enforced, but reports suggest widespread violations. Bonta’s involvement in this case is expected to encourage landlords to comply with tenant protections.
In recent years, the maximum allowable rent has increased significantly due to inflation, allowing landlords in certain parts of California to raise rates up to 10% within the bounds of the law. Senator María Elena Durazo introduced a bill to strengthen the 2019 rent cap law, which passed the Senate and is now awaiting consideration in the Assembly. The bill aims to provide financial damages to tenants who sue their landlords and grants authority to local and state prosecutors to sue on their behalf. The California Apartment Association, representing large landlords, opposes the bill.
Overall, this recent enforcement action serves as an important reminder that tenant protections in California are indeed the law and will be enforced. It signifies a step forward in ensuring fair treatment for renters and holding landlords accountable for their actions.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
