New Ordinance Amendments Regarding Tenant Buyout Agreements
The Board of Supervisors recently passed amendments to Rent Ordinance Section 37.9E (the “Buyout Ordinance”) that take effect on April 6, 2020. A copy of the legislation is available here [Ord No. 36-20]. A summary of the amendments is provided below.
- The term “Buyout Agreement” was broadened to include agreements to settle unlawful detainer actions, but only if the unlawful detainer action was filed within 120 days after buyout negotiations started.
- The legislation required the Rent Board to revise the Pre-Buyout Disclosure Form to include information regarding the impact of a Buyout Agreement on a tenant’s eligibility for the City’s affordable housing programs.
- The legislation required the Rent Board to revise the Landlord Declaration Regarding Buyout Disclosure Form for the landlord to indicate the date the Pre-Buyout Disclosure Form was served on the tenant(s), the method of service used (e.g., hand delivery, email, regular mail), and the Assessor’s parcel number (lot and block) of the building where the unit is located.
- After starting buyout negotiations, the landlord and tenant must now wait at least 30 days before executing the final Buyout Agreement.
- Additional statements must now be included in the Buyout Agreement, including a disclosure regarding the tenant’s right to cancel the agreement and the address of the unit and the assessor’s parcel number (lot and block) of the building where the unit is located.
- If the landlord does not file a copy of the Buyout Agreement with the Rent Board within 59 days after the agreement is executed, the tenant may now file a copy of the Agreement and any provision of the Agreement in which the tenant waived their rights or released claims is then voidable at the option of the tenant (but the tenant’s remedies would not include displacement of a subsequent tenant in the unit).
- The party who files the Buyout Agreement must now inform the Rent Board if the Buyout Agreement concerns an unlawful detainer action. If so, the Rent Board must redact from the posted Buyout Agreement any information concerning the unlawful detainer action that may be confidential under California Code of Civil Procedure 1161.2.