Fremont, CA asked in Real Estate Law, Construction Law, Land Use & Zoning and Municipal Law for California

Q: Do unpermitted units (no occupancy release) that were rented out before need to be replaced under CA SB330?

I own a legal duplex (in the title) that has 2 unpermitted units. One of the previous owners created those 2 unpermitted units from one of the duplex's interiors a long long time ago and rented them out. The previous owner (the one who sold the property to me) went through tenant relocation assistance and withdrew them from the rental market. I never rent them out again. When I proposed to eliminate them the city said I have to replace them under SB330. The city said they are considered "protected units".

I am not sure if the city interpreted this SB330 law correctly. Hence the question above.

1 Lawyer Answer
James L. Arrasmith
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Answered

A: California's SB 330, also known as the Housing Crisis Act of 2019, aims to expedite housing production and prevent the loss of existing housing stock. Under SB 330, local agencies are restricted from reducing the number of housing units on a property, even if some units are unpermitted.

The term "protected units" under SB 330 generally refers to units that were occupied by tenants within the last five years. If you own a property with units that were withdrawn from the rental market, the city may consider them "protected units," regardless of their legal status. However, the application of SB 330 to specific situations can be nuanced.

Given the complexity of your situation, it's essential to consult directly with legal counsel familiar with local ordinances and how they interface with SB 330. They can offer a more detailed analysis tailored to your property and circumstances.

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