California Legislative Update (2016): Amendment to Petris Act with Respect to Costa-Hawkins Exempt Tenancies

california state seal

The Petris Act (Cal. Civ., §§1947.7,1947.8), adopted in 1986, requires administrative certification of rent levels by rent control agencies that require the registration of rent.

SB 775 amends Section 1947.8 to exclude tenancies exempted from rent registration by Costa-Hawkins, adopted in 1996 and phased in by 1999. The California Legislature was concerned about savvy and unscrupulous landlords/tenants applying for certification of incorrect rent levels and creating a state-sanctioned rental rate estoppel certificate. By limiting the exclusion to post-1999 tenancies, the amendments serve as a compromise between vacancy decontrol and the rights conferred by the Petris Act.