On Tuesday, April 22nd, the Santa Barbara City Council voted on a series of amendments to the tenant protection ordinance that was first passed in 2024. These new provisions introduce significant changes that affect both rental housing providers and tenants, especially in cases involving substantial remodels of rental units.
As President of the Santa Barbara Association of REALTORS®, I want to ensure our community understands the proposed changes and what they mean in practice.
Rent Cap Following Substantial Remodel
If a tenant is displaced due to a no-fault just cause eviction for substantial remodeling, the unit’s rental rate upon return will be capped. The new rent can be no more than the original rent at the time of the termination notice, plus either five percent (5%) plus the change in the California Consumer Price Index (CPI), or ten percent (10%), whichever is lower.
Additionally, this provision treats the eviction as a temporary interruption of tenancy and links the tenant’s right of first refusal to the original lease, effectively maintaining continuity of tenancy under a new, limited rent increase.
Third-Party Construction Expert Requirement
Before a landlord can proceed with a substantial remodel that requires a tenant to vacate, they must now obtain a written report from an independent, licensed, construction expert. They must provide a detailed explanation, signed under penalty of perjury, stating that the work cannot safely be completed with the tenant in place and that the tenant must vacate for at least 30 consecutive days.
This report must be filed at the same time as the building permit application and cannot be prepared by anyone with a financial interest in the project.
One-Year Waiting Period for New Property Owners
For properties with five or more rental units, a new owner must now wait one year from the date of acquisition before initiating any no-fault just cause evictions for the purpose of demolishing or substantially remodeling a unit.
While the Santa Barbara Association of REALTORS® disagrees with these amendments and the burdens they place on rental housing providers, we continue to respect the legislative process and will always advocate for balanced solutions. We remain steadfast in our belief that the path forward must include meaningful efforts to increase the supply of housing for all who live and work in Santa Barbara. The ongoing housing crisis requires creative and collaborative approaches, not policies that discourage investment or delay much-needed improvements to our housing stock. Civic engagement is critical as we work together toward a housing future that is affordable, fair, and sustainable.
Summer Knight is a Santa Barbara native and top producing Realtor at Sun Coast Real Estate. Summer has been a member of the Santa Barbara Association of Realtors for over 20 years and currently serves as the President of the Board of Directors. Reach Summer at 805-886-1261 or summer.k.knight@gmail.com.