New Laws Updates 2022 – Part 1

New Laws Updates 2022 – Part 1

November 15, 2022

It is that time of year again. Seems like 2022 has flown by and I wonder where the time went. Anyway, the legislative cycle has been completed, bills passed and signed by the governor to go into effect. It was a busy year related to the real estate laws that have been enacted in California.

AB 2745 is a licensing related bill that was passed and will go into effect on January 1, 2023. Under this law applicants for a broker’s license will be required to show two years of general real estate experience in the preceding 5 years while holding a salesperson license. Alternatively, a person may file a written petition with the DRE setting forth the qualifications and one such method may be a degree from a four-year university with a major or minor in real estate. There has always been an experience requirement for obtaining a broker’s license, but the main change is that experience now should be within the last 5 years.

Over the last few years, the law has addressed HOA rules related to restrictions on leasing residential real estate. AB 1410 is another such law that goes into effect on January 1, 2023. For many years HOAs had been strengthening restrictions on rentals within the HOA communities. This law outright bans HOAs from placing restrictions on an owner that wants to rent out a portion of their property when the owner still lives at the residence. There has been an increase in owners renting rooms as a means to defray costs. Now, owners can do such a thing without worrying about rental restrictions the HOA may pursue. So long as the owner lives at the property, they can rent out rooms to others. However, this is designed to protect long term rentals, so HOAs are still likely able to restrict short-term rentals or vacation rentals. Where this can get interesting in the next couple years is how are ADUs treated for rental purposes in a HOA community.

Similar to HOAs, ADUs have been in the spotlight for the last several years. Five years ago, legislation was passed making permitting of ADUs and JADUs by right. During that time there have been procedural headaches and roadblocks. Some of which were directly from the lack of clarity in the statute. AB 2221, which will be effective on January 1, 2023 seeks to resolve some of these issues. Included are that all agencies and utilities required to act to approve a permit must provide either an approval or provide a full set of comments on what is deficient in the application or what needs to be fixed. By requiring all relative agencies to act, it should streamline the process on getting permit approvals for ADUs and JADUs.

On the theme of housing shortage, SB 6 was passed and goes into effect on January 1, 2023. This law referred to as the Middle Class Housing Act of 2022, provides statutory allowance for housing development projects on a parcel that is in a zone where parking, retail or office space are principally permitted. The benefit is that for some projects ministerial approval will be authorized which should in some situations reduce the red tape that CEQA puts on some housing projects. There is still a lot that needs to be worked on to accomplish the goals by this statute, but it is a good start.

One potentially big win for homeowners is passage of AB 916 that becomes effective on January 1, 2023. Homeowners that wanted to add a bedroom or two to their home often would be required to participate in public hearings to determine whether or not their improvement would be improved. Under this law, municipalities and counties are no longer allowed to require a homeowner to participate in a public hearing as part of the permitting process to add one or two bedrooms to an already existing dwelling. This is a benefit for California homeowners.

There are a lot more statutes that were passed and we will take these up at a later date.

The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.