The Ellis Act is a provision in California Law (Government Code section 7060-7060.7) that provides landlords in California with a legal way to go out of the rental market business. The Ellis Act was adopted by the California Legislature in 1985 after the California Supreme Court decision in the case of Nash v. City of Santa Monica.
On April 18, 2017, the City Council recommended the approval of the Ellis Act Ordinance. This ordinance applies to all apartments four units or more covered by the Apartment Rent Ordinance and provides requirements for landlords removing these apartments from the rental housing market. In San José, the most frequent use of the Ellis Act Ordinance would be the demolition and redevelopment of existing rent controlled housing.
On Tuesday, April 24, 2018, the City Council took action to amend the Ellis Act Ordinance, Tenant Protection Ordinance (TPO), and Apartment Rent Ordinance (ARO). Over the past several months, we have worked with community and stakeholders to develop recommendations for these challenging issues. The following list the results from the City Council meeting regarding the Ellis Act Ordinance:
ELLIS ACT EVICTION PROCESS
What to Expect for Tenants
Removal from Rental Market - Tenants
A property owner may recover possession of a rental unit either to demolish it or to remove it permanently from rental housing use.
If you receive an eviction notice from your landlord because your landlord wishes to take over the rental unit, you can expect the following:
Your Rights and Responsibilities
You may be entitled to relocation assistance. The City’s Relocation Consultant will determine the amount of relocation benefits you are entitled to, otherwise the determination will be based on the information provided by your Landlord. To view more information about possible relocation amounts, please see the Ellis Act Fact Sheet for more details on the Ordinance.
Interested in returning to the rental unit should it become available?
For units re-rented within five years, rent will be set at the rent paid when the Notice of Intent to Withdraw is given, escalated by the annual allowable rate for the number of years the unit was not occupied. For units re-rented after 10 years, tenants will have the right to return only. If apartments were demolished and rebuilt, tenants do not have a right to return to the newly constructed apartments.
What to Expect for Property Owners
Removal from Rental Market – Property Owners
The Ellis Act Ordinance allows a property owner seeking in good faith to recover possession of a rental unit and remove units from rental housing use if the property owner plans on demolishing or permanently withdrawing the units from the rental housing market.
What You Must Do