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California Civil Code Section 1947.7

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(a) The Legislature finds and declares that the operation
of local rent stabilization programs can be complex and that disputes
often arise with regard to standards of compliance with the
regulatory processes of those programs.  Therefore, it is the intent
of the Legislature to limit the imposition of penalties and sanctions
against an owner of residential rental units where that person has
attempted in good faith to fully comply with the regulatory
processes.
   (b) An owner of a residential rental unit who is in substantial
compliance with an ordinance or charter that controls or establishes
a system of controls on the price at which residential rental units
may be offered for rent or lease and which requires the registration
of rents, or any regulation adopted pursuant thereto, shall not be
assessed a penalty or any other sanction for noncompliance with the
ordinance, charter, or regulation.
   Restitution to the tenant or recovery of the registration or
filing fees due to the local agency shall be the exclusive remedies
which may be imposed against an owner of a residential rental unit
who is in substantial compliance with the ordinance, charter, or
regulation.
   "Substantial compliance," as used in this subdivision, means that
the owner of a residential rental unit has made a good faith attempt
to comply with the ordinance, charter, or regulation sufficient to
reasonably carry out the intent and purpose of the ordinance,
charter, or regulation, but is not in full compliance, and has, after
receiving notice of a deficiency from the local agency, cured the
defect in a timely manner, as reasonably determined by the local
agency.
   "Local agency," as used in this subdivision, means the public
entity responsible for the implementation of the ordinance, charter,
or regulation.
   (c) For any residential unit which has been registered and for
which a base rent has been listed or for any residential unit which
an owner can show, by a preponderance of the evidence, a good faith
attempt to comply with the registration requirements or who was
exempt from registration requirements in a previous version of the
ordinance or charter and for which the owner of that residential unit
has subsequently found not to have been in compliance with the
ordinance, charter, or regulation, all annual rent adjustments which
may have been denied during the period of the owner's noncompliance
shall be restored prospectively once the owner is in compliance with
the ordinance, charter, or regulation.
   (d) In those jurisdictions where, prior to January 1, 1990, the
local ordinance did not allow the restoration of annual rent
adjustment, once the owner is in compliance with this section the
local agency may phase in any increase in rent caused by the
restoration of the annual rent adjustments that is in excess of 20
percent over the rent previously paid by the tenant, in equal
installments over three years, if the tenant demonstrates undue
financial hardship due to the restoration of the full annual rent
adjustments.  This subdivision shall remain operative only until
January 1, 1993, unless a later enacted statute which is chaptered by
January 1, 1993, deletes or extends that date.
   (e) For purposes of this subdivision, an owner shall be deemed in
compliance with the ordinance, charter, or regulation if he or she is
in substantial compliance with the applicable local rental
registration requirements and applicable local and state housing code
provisions, has paid all fees and penalties owed to the local agency
which have not otherwise been barred by the applicable statute of
limitations, and has satisfied all claims for refunds of rental
overcharges brought by tenants or by the local rent control board on
behalf of tenants of the affected unit.
   (f) Nothing in this section shall be construed to grant to any
public entity any power which it does not possess independent of this
section to control or establish a system of control on the price at
which accommodations may be offered for rent or lease, or to diminish
any power to do so which that public entity may possess, except as
specifically provided in this section.
   (g) In those jurisdictions where an ordinance or charter controls,
or establishes a system of controls on, the price at which
residential rental units may be offered for rent or lease and
requires the periodic registration of rents, and where, for purposes
of compliance with subdivision (e) of Section 1954.53, the local
agency requires an owner to provide the name of a present or former
tenant, the tenant's name and any additional information provided
concerning the tenant, is confidential and shall be treated as
confidential information within the meaning of the Information
Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of
Title 1.8 of this part).  A local agency shall, to the extent
required by this subdivision, be considered an "agency" as defined in
subdivision (b) of Section 1798.3.  For purposes of compliance with
subdivision (e) of Section 1954.53, a local agency subject to this
subdivision may request, but shall not compel, an owner to provide
any information regarding a tenant other than the tenant's name.

Last modified: January 12, 2009