Costa Hawkins (California Civil Code §1954.50 et seq.) allows a residential property owner who’s rental property would otherwise be subject to local Rent Control Laws to establish the initial and all subsequent rental rates for all new tenancies beginning after December 31, 1995 if any of the following conditions exist:
- The rental unit has a certificate of occupancy issued after February 1. 1995 (Newly constructed units); or
- The rental unit was exempt from the residential rent control ordinance on or before February 1, 1995, pursuant to the local exemption for newly constructed units; or
- The rental unit has a separate title to any other dwelling unit or is a subdivided interest in a subdivision (e.g. Single Family Homes and Condominiums.)
Although Costa Hawkins exempts owners of certain real property from local rent control laws, Costa Hawkins does not affect local Eviction Control Laws. Therefore it is possible for a rental property to be exempt from local Rent Control Laws, but still be subject to local Eviction Control Laws.