California law requiring property owners to pay one month’s rent to legally evicted tenants is upheld

The owners' group who filed the lawsuit are evaluating their next options

A federal appeals court has upheld a 2020 California law forcing property owners who legally evict tenants to pay one month of their rent to reduce relocation costs. 

Under the law, AB 1482, rent increases are limited to 10% a year in areas without rent control. It also offers financial assistance to renters who are evicted because the owner decided to move or convert the property into a condo. 

San Francisco Apartments

FILE: Night view of apartment building on Van Ness Avenue in San Francisco, California, May 3, 2022.  (Smith Collection/Gado/Getty Images / Getty Images)

Better Housing for Long Beach, an owners’ group, filed a lawsuit against the state, arguing that requiring payments to legally evicted tenants amounted to confiscating their property, the San Francisco Chronicle reported. 

The courts dismissed the argument and said it was not ruling out government benefit to property owners or interfering in their control of the property. 

David Chu, who as a Democratic Assemblymember from San Francisco sponsored the law, praised its upholding, calling it "great news for tenants." 

CALIFORNIA TO RECEIVE MILLIONS IN INFLATION RELIEF UNDER BUDGET DEAL REACHED BETWEEN NEWSOM AND LAWMAKERS

"As an Assemblymember, I authored this common-sense law to help protect tenants from egregious rent hikes and predatory evictions," he tweeted. 

CLICK HERE TO GET THE FOX BUSINESS APP

Members of Better Housing for Long Beach are evaluating their next steps, including possibly appealing to the U.S. Supreme Court