New 2024 California Housing and Real Estate Laws Will Impact Landlords and Business Owners

US-CALIFORNIA-HOMELESSNESS-TECH-SANFRANCISCO — (Photo : (Photo credit should read JOSH EDELSON/AFP via Getty Images)) Downtown San Francisco, California is seen from above on February 6, 2019. - San Francisco, once home to flower power, hippies and dope, has changed dramatically: these days, it is all about Facebook, Twitter and Google, the multi-billion dollar tech giants who have turned it into one of the world's most expensive cities to live in. Average monthly rent for a two-room apartment in the city by the bay now runs to $3,700, the highest in the United States. And a household of four with annual earnings of less than $117,400 is officially officially considered "low income." "We see now a kind of homelessness that did not occur before, people who work, that is new, said Cary McClelland, author of the 2018 book "Silicon City" which examines how the city has changed.

A slew of housing bills from California's 2023 legislative session have gone into effect this year, many of which are designed to ease burdens in the state's real estate market.

The new laws are set to impact Californian renters, landlords, and restaurant and bar owners. Here are the biggest laws that took effect on Jan. 1.

For Businesses

Under AB 1217, California will now allow businesses to include outdoor, patio, and al fresco dining areas until July 1, 2026.

Businesses in the state are required to update the signage on all single-user restrooms. The signages should now identify them as "all-gender toilet facilities," which means they will become available to all genders, according to AB 783.

Restaurants and bars are now allowed to sell alcoholic beverages inside the "entertainment zone" of outdoor festival areas. The bill also allows music venues to sell alcohol at private events not open to the general public, per SB 76.

Under AB 416, bars and restaurants allowed to sell beer and wine can offer Japanese shochu. However, the spirit must not exceed 24% of alcohol by volume.

For Landlords

San Francisco Democratic Sen. Scott Wiener proposed SB 423, which is designed to expand a law that speeds up the approval of apartment buildings where some units are set aside for California residents with lower incomes.

Sen. Wiener also introduced SB 4, which allows churches, religious institutions, and non-profit colleges to build affordable housing on their land.

Starting April 1, SB 567 will require property owners or their family members to move into the property within 90 days and live there for at least 12 months if they evicted a tenant for an owner move-in.

For Tenants

Tenants also do not need to save up to two months' rent for a security deposit. Under the new AB 12, landlords can only charge just one month's rent as a security deposit.

Under AB 1418, tenants can no longer be penalized or evicted from their apartment by the city or county if they interact with law enforcement or have a criminal conviction.

Renters can now cancel a hotel or Airbnb reservation, without penalty, within 24 hours after the reservation is confirmed under SB 644. However, this only applies if the place they are staying at is in California and if the reservation is made at least 72 hours before check-in.