Assembly Bill 3182 (Civil Code Section 4740 and Civil Code Section 4741) limits the restrictions common interest developments may impose on offering units for rent. It took effect Jan 1, 2021.
- A common interest development may cap the number of rentals to 25% or more.
- ADUs and junior accessory dwelling units (JADUs) can not be included in the cap.
- The cap must not end the right of an individual owner who was renting out prior to Jan 1, 2021.
A JADU is typically an area within a home which has been allocated to house a separate individual or family. It may contain a mini-kitchen which uses plug-in appliances. Thus a condo or townhouse owner can rent out part of his unit irrespective of rental restrictions if he meets the JADU requirements.
View details of rent restrictions for common interest developments.
Learn more about ADUs and JADUs.
