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lives on site, or to a tenant who is looking for a roommate.

Credit Reports

SB 267 by Senator Susan Eggman (DStockton) would limit a landlord’s use of credit reports when screening prospective tenants with Section 8 housing vouchers or other government rent subsidies.

The bill would only allow the use of credit reports when a voucher or other government rent subsidy is present if the landlord offers the applicant a chance to show other evidence of their ability to pay the rent. If the applicant does so, the landlord would have to consider that evidence in lieu of the applicant’s credit history in deciding whether to proceed with the tenancy.

Last year, a nearly identical bill by Eggman died in the Assembly Housing Committee amid opposition from the California Apartment Association.

Security Deposits

Upcoming Classes

Monthly SFAA member meetings and classes are held virtually and in-person. For member meeting topics and schedules, go to www.sfaa.org. For a list of virtual SFAA classes, turn to the calendar on page 44.

Sfaa Office Closure

As the SFAA continues a hybrid in-office work model, members are welcome to make an appointment. However, please refrain from coming in person if you have tested positive for, were exposed to, or have symptoms of COVID-19. The best way to have your questions answered is through email at MemberQuestions@sfaa.org.

AB 12 from Assemblymember Matt Haney (D-San Francisco) would further limit the amount of money a landlord can collect for a security deposit in California. AB 12 would cap security deposits at an amount equal to one month’s rent for all types of housing.

At present, an owner can collect an amount equal to two months’ rent for an unfurnished unit, and three months’ rent for a furnished unit.

The California Apartment Association has expressed serious concerns with the bill, which comes on the heels of a pandemic that forced countless rental housing owners to provide housing without compensation.

Today, when tenants don’t fulfill their obligations, even the current caps on security deposits don’t cover the owner’s costs. Security deposits are even more important these days, as recently passed California laws have restricted what a property owner can see when reviewing a prospective tenant’s credit history. This forces owners to enter rental agreements with fewer assurances that the rent will be paid.

Screening Fees

Amid opposition from the California Apartment Association, a State Assemblymember has withdrawn a pair of bills that together would have placed new limits on tenant screening fees and required that landlords provide further notice before raising rents.

AB 485 by Assemblymember Laurie Davies (R-Dana Point) would have changed California’s tenant-screening law by capping the fee a rental property owner can collect from a tenant-applicant at $40. Moreover, it would have eliminated annual adjustments based on inflation.

In 1996, CAA sponsored California’s tenant screening law, which standardized the cost of screening fees. The law initially capped the screening fee at $30 for each applicant, although that fee has increased annually based on changes in the Consumer Price Index. Today, the cap is $55.58; however, a rental property owner may not charge more than the cost of the consumer credit report and the owner’s time to validate, review, or otherwise process an application.

The other bill shelved by Davies, AB 500, would have required property owners to provide tenants with at least 90 days’ notice before raising the rent, regardless of the amount. At present, landlords must provide 30 days’ notice for rent increases of 10% or less, and 90 days’ notice for increases above 10%.

For more information about these bills and other bills introduced by the California legislature, go to CAA’s website at www.caanet.org