State Assembly Approves Hall Legislation

The California State Assembly today approved AB 331 by Assistant Speaker pro Tempore Isadore Hall, III (D- Compton), which would require property owners to provide written disclose to a prospective tenant if a notice of default has been filed against a residential property.

The measure was approved by a vote of 68 to 0.

The rental housing market has experienced great challenges as a result of California's ongoing housing crisis. Some tenants have entered into a new rental agreement only to discover the home or apartment they have just rented is being foreclosed. The owners of these properties provide no warning to potential tenants about the pending foreclosure.

Although there are times when the property can be saved from foreclosure, in many of these cases the property owner simply pockets the security deposit and rent. The tenant is then forced to relocate at significant personal cost.

AB 331 will help tenants make an informed decision when renting a home or apartment and will protect tenants from being victimized by unscrupulous property owners.

"While there have been several legislative efforts to assist tenants impacted by the housing crisis, AB 331 is unique in that it seeks to help potential tenants before they enter into a rental agreement with a distressed property," said Assemblymember Hall. "AB 331 will provide tenants with important information when seeking to lease a residential property and encourage property owners to act in good faith when making a residential property available for lease."

AB 331 now moves to the State Senate for further consideration.

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