In 2019, Gov. Gavin Newsom signed a law to and arbitrary evictions.
Nearly four years later, the state announced its first enforcement action against a landlord under the California rent control law.
Attorney General Rob Bonta today announced that San Jose-based developer and property manager Green Valley Corporation will be on the hook for hiking the rent on 20 Silicon Valley tenants by an average of 151% 鈥� far in excess of the cap set by the law. The settlement also states that the company unlawfully evicted six tenants without providing a 鈥渏ust cause,鈥� another violation.
鈥淲hen the Legislature writes a law and the governor signs it, it鈥檚 the law, it鈥檚 not a suggestion, it鈥檚 not a recommendation, it鈥檚 not a 鈥榠f you want to,鈥欌�� said Bonta.
The attorney general noted that this was a first for his office. 鈥淏ut it won鈥檛 be the last,鈥� he said
Under the terms of a settlement filed in Santa Clara County Superior Court, Green Valley, which also does business under the name . Of that, $331,130 will be refunded to tenants in overpaid back-rent.
鈥� the California Tenant Protection Act is the law of California and that law will be enforced,鈥� said San Francisco City Attorney David Chiu, who authored the 2019 law when he was in the Assembly.
The settlement concludes a year-and-a-half long investigation by the Attorney General鈥檚 office.
As San Jose Spotlight reported last year, Swenson increased the rent on nearly two dozen tenants living near San Jose鈥檚 Japantown in 2021. Some of those tenants reached out to local legal aid organizations, which brought the issue to the state鈥檚 Department of Justice. The and admitted in a letter that the rent hikes were 鈥渉igher than permitted by law.鈥�
Tenant rights groups have decried the 2019 law as toothless ever since it took effect. Bonta鈥檚 announcement of the state鈥檚 first-ever enforcement action amounts to a very public flashing of fangs.
鈥淚t鈥檚 been really frustrating that the Legislature passed [the rent cap law] and then appeared completely unwilling to actually enforce it,鈥� said Shanti Singh, a lobbyist and spokesperson for Tenants Together, a statewide renter advocacy organization. 鈥淭he Legislature has been doing tenants very few to no favors right now, so Bonta is picking up their slack and we鈥檙e very appreciative of that.鈥�
A rent cap in name only?
The 2019 law, introduced by Chiu and co-authored by then-Assemblymember Bonta, capped annual rent hikes to 5% plus inflation.
The law also requires landlords to put forward a 鈥渏ust cause鈥� before evicting a tenant without compensation. Justifiable reasons include not paying rent, breaching the terms of a lease agreement or engaging in criminal activity on the premises of the rental property.
State law has or expanding existing ones. When lawmakers agreed to implement a statewide cap in 2019, it was a historic break from a decades-long aversion to anything that even smelled of rent control.
But the law didn鈥檛 specify who would actually hold scofflaw landlords to account. Instead, it was left up to tenants, often short on cash and without a lawyer on speed dial, to challenge violations in court. Housing researchers have been is actually followed or enforced, but renter advocates like Singh say violations are 鈥渞ampant.鈥�
鈥淚 am hoping that seeing the attorney general working on this is going to really encourage landlords to be more careful about complying with these protections,鈥� said Madeline Howard, a staff attorney at Western Center on Law & Poverty, a legal service provider for low-income Californians. 鈥淟andlords should take note.鈥�
10% rent hikes allowed under California rent control law
In recent years, the maximum allowable rent under the law has ballooned across California. When the law went into effect, , translating to a cap of around 7%. Since then inflation has soared. Over the last two years, landlords in certain parts of the state have .
Earlier this year, Los Angeles Democratic Sen. Mar铆a Elena Durazo introduced a. Though an earlier version of the bill was watered down to remove language that would have lowered the rent cap to 5%, the bill still includes a provision setting financial damages for tenants who sue their landlords. It also explicitly empowers local and state prosecutors to sue on their behalf.
Durazo鈥檚 bill passed out of the Senate last month and is now awaiting consideration before the Assembly.
The bill is fiercely opposed by the California Apartment Association, a group that represents large landlords. Debra Carlton, a spokesperson for the group, applauded Bonta鈥檚 announcement on Wednesday.
鈥淲e certainly support the attorney general in enforcing the law,鈥� she said. 鈥淎nd this demonstrates that the law works.鈥�
is a nonprofit, nonpartisan media venture explaining California policies and politics.