Alhambra landlords handling certain no-fault residential terminations will face a higher relocation-assistance cost beginning September 6. Ordinance No. O2M26-4861 increases the required payment or rent waiver from one month to three months for cases already covered by California Civil Code Section 1946.2.

The City Council adopted the ordinance July 27. The signed measure says it takes effect 40 days from adoption, and the city's implementation page identifies September 6 as the effective date.

The ordinance does not create a new category of no-fault termination. It changes the amount owed when the state Tenant Protection Act already requires relocation assistance for a qualifying no-fault termination in Alhambra.

What the ordinance requires

For a covered termination, the owner must choose one of two forms of assistance:

  • Direct payment: relocation assistance equal to three months of the tenant's rent.
  • Rent waiver: waiver of rent for the final three months of the tenancy.

The rent used for the calculation is the amount in effect when the owner issues the termination notice. The owner selects which form of assistance to provide.

The state law underlying Alhambra's ordinance addresses no-fault terminations based on an owner's move-in, withdrawal of the property from the rental market, a government or court order requiring the tenant to leave, or an intent to demolish or substantially remodel the unit. Each category has its own conditions and notice requirements.

Alhambra's ordinance says it changes only the amount of relocation assistance. The other restrictions and obligations in the state Tenant Protection Act continue to control.

The four-unit boundary

The local increase does not apply to every rental property or every termination. The ordinance states that, except for a demolition or substantial remodel, its three-month requirement does not apply to a property containing four or fewer units.

That exception does not mean every demolition or remodel involving a small property automatically qualifies. The termination still must meet the state law's standards, including its definition and documentation requirements for a substantial remodel.

Other state exemptions also remain relevant. If California Civil Code Section 1946.2 does not require relocation assistance for a particular tenancy or property, Alhambra's ordinance does not independently create the three-month payment.

Landlords and property managers can use the Alhambra city reference page as a starting point, but the property, tenancy, reason for termination, and notice all affect whether the rule applies.

A defective notice can be void

The ordinance makes compliance part of the termination process. It states that failure to strictly comply with the three-month requirement renders the termination notice void. A tenant may raise the ordinance as a defense in an action by an owner to recover possession of a rental unit, in addition to other remedies available under state law.

That exposure makes the timing and content of the notice operationally important. State law separately governs when direct assistance must be paid and what the notice must say when an owner chooses a rent waiver. Alhambra's measure does not replace those requirements.

The ordinance is adopted but is not yet effective as of this article's August 27 publication date. The city says the increased amount begins September 6.

The practical takeaway

An Alhambra landlord or property manager preparing a no-fault termination should first determine whether California Civil Code Section 1946.2 applies to the property and tenancy. If it does, identify whether the four-unit boundary applies and whether the termination involves demolition or a qualifying substantial remodel.

For a covered notice issued under the new local rule, budget for three months' rent and document whether the owner will make a direct payment or waive the final three months. Because an error can make the termination notice void, owners should have the final notice, payment timing, and property-specific exemptions reviewed before acting.

This article summarizes the enacted ordinance and the city's published implementation date. It does not determine whether a particular property or termination is covered.