San Diego implements rent cap and just cause eviction rules under Tenant Protection Act

The City of Carlsbad's Housing Commission meeting on April 10, 2025, focused on the implications of the Tenant Protection Act (TPA), which introduces significant changes to rental regulations in the region. With rising housing costs and increasing demand for affordable housing, the discussions highlighted the importance of understanding these new regulations for both landlords and tenants.

One of the key topics was the implementation of a rent cap, which limits annual rent increases to either 5% plus the regional Consumer Price Index (CPI) or 10%, whichever is lower. Currently, in San Diego, this limit stands at 8.6% until July 30, 2025. This means landlords cannot issue rent increase notices exceeding this percentage within a 12-month period. Additionally, landlords are restricted to a maximum of two rent increases in a year, further protecting tenants from sudden financial burdens.

However, the TPA does include several exemptions. Notably, single-family homes that are not owned by corporations, owner-occupied homes, and certain types of accessory dwelling units (ADUs) are not subject to the rent cap. This exemption extends to mobile homes and properties built within the last 15 years, which will gradually lose their exempt status as they age.

The meeting also addressed the "just cause" eviction requirements under the TPA. Landlords must provide a lawful reason to evict tenants, which is determined by the duration of the tenant's residency. Similar to the rent cap, there are exemptions for certain housing types, including hotels, motels, and nonprofit facilities, which may complicate the application of these regulations.

The discussions at the Housing Commission meeting underscored the ongoing challenges of balancing tenant protections with the rights of landlords. As Carlsbad navigates these new regulations, the implications for housing stability and affordability in the community remain a critical concern. The commission's next steps will likely involve monitoring the impact of these regulations and considering additional measures to address the housing crisis in the region.