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(a) Applicability to residential rental units. This section shall apply to all residential rental units, except not any of the following:
(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940 of the California Civil Code.
(2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the California Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by California’s State Department of Social Services.
(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
(4) Housing accommodations in which the renter shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential rental unit.
(5) Single-family owner-occupied residences.
(6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
(7) A residential rental unit that is alienable separate from the title to any other dwelling unit, provided that both subparagraphs (A) and (B) below apply:
(A) The owner is not any of the following:
(i) A real estate investment trust, as defined in Section 856 of the California Internal Revenue Code.
(ii) A corporation.
(iii) A limited liability company in which at least one member is a corporation.
(iv) Management of a mobilehome park, as defined in Section 798.2 of the California Civil Code.
(B) The renters have been provided written notice that the residential property is exempt from this section.
(i) Notice must be given using the following statement:
“This property is not subject to the just cause eviction requirements of Chapter 9.68 of the Palo Alto Municipal Code. This property meets the requirements of Section 9.68.040(a)(7) of the Palo Alto Municipal Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the California Internal Revenue Code; (2) a corporation; (3) a limited liability company in which at least one member is a corporation; or (4) management of a mobilehome park, as defined in Section 798.2 of the California Civil Code.”
(ii) The notice required under clause (i) may, but is not required to, be provided in the rental agreement.
(8) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the California Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the California Health and Safety Code or comparable federal statutes.
(b) Protection for renters. Notwithstanding any other law, after a renter has continuously and lawfully occupied a residential rental unit for 6 months, the landlord of the residential rental unit shall not terminate the tenancy without just cause, which shall be stated with specificity in the written notice to terminate tenancy. If any additional adult renters are added to the lease before an existing renter has continuously and lawfully occupied the residential rental unit for 12 months, then this subdivision shall only apply if either of the following are satisfied:
(1) All of the renters have continuously and lawfully occupied the residential rental unit for 6 months or more.
(2) One or more renters have continuously and lawfully occupied the residential rental unit for 12 months or more.
(c) Opportunity to cure. Before a landlord issues a notice to terminate a tenancy for just cause that is a curable lease violation, the landlord shall first give notice of the violation to the renter with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the California Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy.
(d) Notice. A landlord subject to this section shall provide notice to the renter, which may take the form of a lease provision or an addendum to a lease, and which shall include the following, in no less than 12-point type: “California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. Local law also provides that after all of the renters have continuously and lawfully occupied the property for 6 months or more or at least one of the renters has continuously and lawfully occupied the property for 12 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Chapter 9.68 of the Palo Alto Municipal Code for more information.”
(e) Dispute resolution. Nothing in this chapter abrogates the responsibility of landlords to comply with the requirements of Chapter 9.72 (Mandatory Response to Request for Discussion of Disputes between Landlords and Tenants) of the Palo Alto Municipal Code. As applicable, a renter may request mandatory discussion of rental housing disputes by filing a written request for dispute resolution according to section 9.72.040 (Dispute Resolution Process).
(Ord. 5592 § 3, 2023: Ord. 5589 § 2 (part), 2023)