TL;DR
The Costa-Hawkins Rental Housing Act, enacted 1995 and codified at Civil Code §§1954.50-1954.535, is California's state-law preemption of local rent control. Costa-Hawkins does two principal things. First, it EXEMPTS three categories of residential rental property from any local rent control ordinance: (a) housing units with a certificate of occupancy issued after February 1, 1995 ("new construction"), (b) single-family dwellings and condominiums that are "separately alienable" from title to any other dwelling, and (c) housing already subject to certain forms of alternative regulation. Second, it PROHIBITS "vacancy control" — local ordinances that would restrict a landlord's right to set the initial rental rate for a new tenancy — while preserving VACANCY DECONTROL as a statewide mandate: the landlord may reset the rent to market rate when the prior tenant voluntarily vacates, is lawfully evicted, or dies. AB 1482 (Tenant Protection Act of 2019) layers a STATEWIDE rent cap of 5% plus regional CPI (with a hard 10% ceiling in any 12-month period) on most rental units not otherwise covered by local rent control, with a 15-year certificate-of-occupancy exemption that rolls forward each year. AB 1482 preserves vacancy decontrol and has its own exemption structure, including but not identical to Costa-Hawkins categories. Proposition 33 (November 2024 general election), which would have wholly repealed Costa-Hawkins, was rejected by California voters roughly 60% to 40% — the third statewide initiative in six years to attempt Costa-Hawkins repeal and the third to fail.
What Costa-Hawkins actually does
Costa-Hawkins is a state-law PREEMPTION statute. It does not itself impose rent control; instead, it tells local governments what they CANNOT do with local rent control ordinances. This is a critical framing point because Costa-Hawkins is often loosely described as a rent-control law when it is closer to an anti-rent-control law that carves out large categories of the state's housing stock from any local price restriction. Cities that had aggressive rent control before Costa-Hawkins — Santa Monica, Berkeley, San Francisco, Los Angeles, and West Hollywood among others — retained their pre-1995 ordinances but had to conform them to Costa-Hawkins's exemption categories and vacancy-decontrol mandate.
The two operative mechanisms are: (1) three EXEMPTION categories that no local ordinance may reach, and (2) a VACANCY-DECONTROL mandate that guarantees the landlord's right to set the initial rent for any new tenancy at market rate. Both mechanisms operate through express preemption; local ordinances that attempt to control rents on exempt units or that impose true vacancy control are invalid to the extent of the conflict. For related state-specific frameworks that interact with rent regulation, see our Davis-Stirling CID Act guide, our Unruh Civil Rights Act fair housing guide, and our DRE licensing structure guide.
The three Costa-Hawkins exemption categories
Under Civil Code §1954.52, three categories of residential rental property are exempt from local rent control ordinances:
| Exemption | Statutory Basis | What It Covers |
|---|---|---|
| New construction — certificate of occupancy after Feb 1, 1995 | §1954.52(a)(1) | Any housing unit that received its first certificate of occupancy after Feb 1, 1995; this is a fixed date, not a rolling window |
| Single-family dwellings and condominiums | §1954.52(a)(3) | Any unit that is "separately alienable" — i.e., transferable in fee simple separately from any other dwelling; single-family homes and condominiums qualify regardless of construction date |
| Certain alternative-regulation units | §1954.52(a)(2) | Housing already subject to specified alternative regulatory regimes (subsidized units, deed-restricted below-market-rate units, and comparable categories) |
The single-family and condominium exemption is the most consequential in practice because it removes a large share of the state's rental housing from any local rent control coverage regardless of construction date. A pre-1995 single-family home rented to a tenant in a rent-controlled city is exempt from that city's rent control ordinance because the unit has separately alienable title.
The new-construction exemption is fixed on the February 1, 1995 date and does NOT roll forward. A building constructed in 1980 is not exempt as new construction; a building with a first certificate of occupancy of February 15, 1995, is exempt as new construction. This fixed date has been reaffirmed by California courts — the exemption applies to certificates of occupancy issued PRIOR to residential use of the unit, so mere reclassification from apartment to condominium does not itself confer the exemption if the residential use predated Costa-Hawkins.
Vacancy control vs vacancy decontrol
The clearest way to grasp Costa-Hawkins's second operative mechanism is to distinguish two historical regimes:
Vacancy control ("strict rent control"): The rent level of a unit is controlled irrespective of whether the tenant remains. If a unit was renting for $1,200 under rent control and the tenant moves out, the next tenant's initial rent is still capped near $1,200 subject to whatever cap the local ordinance permits. Some California cities had this regime prior to Costa-Hawkins.
Vacancy decontrol ("moderate rent control"): The rent level is controlled only while the existing tenant remains. When the tenant voluntarily vacates, is lawfully evicted, or dies, the landlord may set the initial rent for the next tenancy at market rate. During the new tenant's tenancy, local rent-increase caps then apply.
Costa-Hawkins abolished vacancy control statewide and mandated vacancy decontrol as the required regime. Under Civil Code §1954.53(a), the landlord may establish the initial rental rate for a dwelling or unit whenever the prior tenant no longer permanently resides at the premises. This is a state-law right that no local ordinance may abridge. Vacancy decontrol operates whenever the "original occupants" listed on the lease no longer permanently reside — including scenarios of voluntary vacation, eviction for cause, or death.
Two important edge cases have been litigated. In the "sub-tenant successor" scenario, a minor child who moved in with the parents at the commencement of the lease and remains after the parents vacate has been held to preserve the original tenancy for Costa-Hawkins purposes, blocking vacancy decontrol. In the master-tenant scenario, a 2006 amendment permits landlords to reset rents to market rate if the master tenant vacates and no remaining tenant has occupied the unit for more than 10 years, providing a pathway to vacancy decontrol in long-term subletting scenarios without requiring the sub-tenant's consent. And in 2023, AB 1620 added §1954.53(a)(4) (effective January 1, 2024) to accommodate transfers for tenants with permanent physical disabilities.
AB 1482 — statewide Tenant Protection Act of 2019
Assembly Bill 1482, effective January 1, 2020, is a statewide statute that overlays Costa-Hawkins with a rent cap on residential units NOT already covered by more protective local rent control ordinances. AB 1482 operates through Civil Code §§1946.2 (just cause eviction) and 1947.12 (rent cap). Its principal features:
Rent cap. During any 12-month period, the landlord may not increase the "gross rental rate" by any more than the LOWER of (a) 5% plus the percentage change in regional CPI from April 1 of the prior year to April 1 of the current year, or (b) 10% total. As of the 2024 CPI adjustment, the statewide cap in most Los Angeles-area jurisdictions was 8.8%; the cap floats with CPI and is adjusted annually.
Just cause eviction. After 12 months of continuous occupancy, the landlord must have "just cause" to terminate the tenancy under §1946.2. Just cause categories include tenant fault (nonpayment, breach, nuisance) and no-fault (owner-occupancy, withdrawal from the rental market, government-ordered vacate). No-fault just cause generally requires relocation assistance.
Exemptions preserve Costa-Hawkins categories AND add rolling new-construction protection. AB 1482 exempts (a) single-family homes NOT owned by corporations or institutional investors (so a mom-and-pop single-family rental is exempt if properly noticed), (b) condominiums, and (c) "new construction" defined as a tenancy with a certificate of occupancy issued within the past 15 years. The 15-year window ROLLS FORWARD annually — a unit that was 14 years old in 2020 becomes 15 years old in 2021 and enters AB 1482 coverage. This is different from Costa-Hawkins's FIXED February 1, 1995 date.
Vacancy decontrol preserved. Like Costa-Hawkins, AB 1482 allows the landlord to reset the rent to market rate when a tenant voluntarily vacates. Between-tenancy rate resets are not restricted by the annual cap.
Retroactive to March 15, 2019 baseline. AB 1482 pegged its cap to the gross rental rate in effect on March 15, 2019; any increase in excess of the AB 1482 cap between March 15, 2019, and January 1, 2020, had to be rolled back, though tenants could not sue for overpayments during that transitional period.
Sunset — January 1, 2030. AB 1482's rent cap provisions are currently scheduled to sunset on January 1, 2030, unless extended by the Legislature.
How Costa-Hawkins and AB 1482 fit together
Costa-Hawkins and AB 1482 are complementary rather than conflicting. Costa-Hawkins tells local governments what they cannot do with rent-control ordinances; AB 1482 imposes a statewide rent cap on units that neither Costa-Hawkins nor a local ordinance protects. The layering produces four categories of California rental housing:
| Category | Local Rent Control | AB 1482 Cap | Costa-Hawkins Vacancy Decontrol |
|---|---|---|---|
| Older multi-unit in a rent-controlled city (e.g., pre-1995 apartments in SF or LA) | Yes — local ordinance applies | No — local ordinance controls if more protective | Yes — landlord may reset at vacancy |
| Post-Feb 1, 1995 new construction anywhere | No — exempt under Costa-Hawkins | Depends — subject to AB 1482 if certificate of occupancy is more than 15 years old | Yes — landlord may reset at vacancy |
| Single-family home or condo anywhere (individually-owned) | No — exempt under Costa-Hawkins | No — if not corporation/institutional-owned and properly noticed | Yes — landlord may reset at vacancy |
| Older multi-unit in a NON-rent-controlled city | No — no local ordinance exists | Yes — AB 1482 applies once building is over 15 years old | Yes — landlord may reset at vacancy |
Proposition 33 (2024) and the pattern of Costa-Hawkins repeal attempts
Proposition 33, on the November 2024 California general election ballot as the "Justice for Renters Act," would have wholly repealed Costa-Hawkins and returned to local governments the authority to enact rent control on any residential property regardless of type or age. California voters rejected Proposition 33 by roughly 60% to 40%. Prop 33 was the third statewide initiative in six years to attempt Costa-Hawkins repeal — following Proposition 10 (2018, rejected 59% to 41%) and Proposition 21 (2020, rejected 60% to 40%). The consistent 60-40 rejection pattern reflects public and political reluctance to open the door to broad local rent controls despite the state's ongoing rental affordability crisis. Costa-Hawkins remains in force with the same structural features it has had since 1995. For related state-specific frameworks, see our Davis-Stirling CID Act guide and our Unruh Civil Rights Act fair housing guide.
Frequently Asked Questions
- Is a single-family home rented to a tenant subject to any rent cap?
- Under Costa-Hawkins, single-family homes (with separately alienable title) are exempt from local rent control ordinances regardless of construction date. Under AB 1482, single-family homes owned by non-corporate/non-institutional owners (i.e., mom-and-pop landlords) are exempt from the AB 1482 rent cap if properly noticed in the lease. Corporation-owned or institutional-investor-owned single-family rentals ARE subject to the AB 1482 cap. In non-rent-controlled cities, the landlord of an individually-owned single-family rental faces neither local rent control nor AB 1482 caps and may set rent increases as the market permits, subject to notice requirements.
- What is the difference between vacancy control and vacancy decontrol?
- Vacancy control caps the initial rent for the next tenancy regardless of turnover — the rent stays low even when the tenant changes. Vacancy decontrol caps the rent only during the current tenancy; when the tenant voluntarily vacates, is lawfully evicted, or dies, the landlord may reset the rent for the next tenancy to market rate. Costa-Hawkins prohibits vacancy control and mandates vacancy decontrol statewide. AB 1482 also preserves vacancy decontrol. Between-tenancy rent resets are a critical mechanism through which market rates gradually reach California rental housing over time.
- Does AB 1482 apply to buildings that are Costa-Hawkins-exempt?
- Not automatically. AB 1482 preserves Costa-Hawkins exemptions for single-family homes owned by individuals (if properly noticed) and for condominiums. New construction is treated differently: Costa-Hawkins fixes the exemption at February 1, 1995 (permanent), while AB 1482 applies a 15-year certificate-of-occupancy exemption that rolls forward. So a post-1995 apartment building may be exempt from local rent control under Costa-Hawkins but subject to AB 1482 once the building is more than 15 years old. Both statutes must be evaluated separately for any given property.
- What triggers vacancy decontrol under Costa-Hawkins?
- Voluntary vacation by the original occupants listed on the lease, eviction for cause (nonpayment, nuisance, breach), or death of all original occupants. When a minor child who moved in with the parents at the commencement of the lease remains after the parents vacate, courts have held the child's continued residence preserves the original tenancy — blocking vacancy decontrol. Master-tenant scenarios receive specific statutory treatment allowing decontrol after 10 years of subletting under 2006 amendments. And AB 1620 (effective January 1, 2024) added §1954.53(a)(4) to accommodate transfers for tenants with permanent physical disabilities.
- How does the AB 1482 rent cap actually get calculated?
- During any 12-month period, the landlord may not increase the gross rental rate by more than the LOWER of: (1) 5% plus the percentage change in the regional Consumer Price Index (CPI) from April 1 of the prior year to April 1 of the current year, or (2) 10% total. The regional CPI figures are published by the U.S. Bureau of Labor Statistics and are region-specific. As of the 2024 adjustment, the LA-area cap sat at 8.8%; caps vary by region. The landlord may raise rent no more than twice per year, and only within the total cap. Local rent control ordinances that impose stricter caps prevail over AB 1482 for units they cover.
- Was Proposition 33 the only recent attempt to repeal Costa-Hawkins?
- No. Prop 33 (November 2024) was the third statewide repeal attempt in six years. Proposition 10 (November 2018) was rejected 59% to 41%. Proposition 21 (November 2020) was rejected 60% to 40%. Prop 33 was rejected roughly 60% to 40%. All three initiatives followed a similar structure — wholesale repeal of Costa-Hawkins and restoration of unlimited local rent-control authority. The consistent 60-40 rejection pattern suggests that despite California's ongoing affordability crisis, statewide majorities have consistently declined to open the door to broad local rent controls. Attempts at Costa-Hawkins repeal by legislative amendment (e.g., SB 466 in the 2023-24 session) have similarly stalled without receiving legislative hearings.
Bottom Line
The Costa-Hawkins Rental Housing Act (Civil Code §§1954.50-1954.535), enacted 1995, is California's state-law preemption of local rent control. It exempts three categories of residential rental property from any local rent control ordinance — new construction with a certificate of occupancy after February 1, 1995 (fixed date, not rolling), single-family dwellings and condominiums with separately alienable title (regardless of age), and certain alternatively-regulated units. It also mandates vacancy decontrol statewide, guaranteeing the landlord's right to set the initial rent for any new tenancy at market rate when the prior tenant voluntarily vacates, is lawfully evicted, or dies. The 2006 master-tenant amendment allows decontrol after 10-year subletting; AB 1620 (effective January 1, 2024) added disability-accommodation transfer language. AB 1482 (Tenant Protection Act of 2019, effective January 1, 2020) overlays a STATEWIDE rent cap of the lower of 5% plus regional CPI or 10% in any 12-month period, plus just-cause eviction after 12 months of occupancy, on residential units not otherwise covered by local rent control. AB 1482 preserves vacancy decontrol and has its own exemption structure — including but not identical to Costa-Hawkins categories; its "new construction" exemption is a rolling 15-year window (distinct from Costa-Hawkins's fixed February 1, 1995 date). Proposition 33 (November 2024), which would have wholly repealed Costa-Hawkins, was rejected roughly 60% to 40% — the third statewide initiative in six years to attempt repeal and the third to fail. For related state-specific frameworks, see our Davis-Stirling CID Act guide and our Unruh Civil Rights Act fair housing guide.
Source: California Civil Code §§1954.50-1954.535 — Costa-Hawkins Rental Housing Act · California AB 1482 (2019) — Tenant Protection Act · California Attorney General — Tenant and Landlord Rights Resources