Cal. Codes » Civil Code / DIVISION 3. OBLIGATIONS / PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS / TITLE 5. HIRING / CHAPTER 2. Hiring of Real Property
California Codes

Cal. Civil Code § 1947.7 (2026)

Hiring of Real Property

✓ current as of May 2026
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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.

Notes of Decisions
Cited in 6 cases, 1987–2003 · leading case: People Ex Rel. Kennedy v. Beaumont Inv., Ltd., 3 Cal. Rptr. 3d 429 (Cal. Ct. App. 2003).
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People Ex Rel. Kennedy v. Beaumont Inv., Ltd., 3 Cal. Rptr. 3d 429 (Cal. Ct. App. 2003). · cites it 7× “) The statutory remedies include civil penalties. (Bus. & Prof. Code, §§ 17206 [$2,500 civil penalty may be assessed for each violation of § 17200], 17536 [$2,500 civil penalty may be assessed for each violation of § 17500].”
Sego v. Santa Monica Rent Control Bd., 57 Cal. App. 4th 250 (Cal. Ct. App. 1997). · cites it 5× “) Civil Code section 1947.7, subdivision (b), provides: “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…”
Minelian v. Manzella, 215 Cal. App. 3d 457 (Cal. Ct. App. 1989). · cites it 3× “7 is unavailable to the appellant in the instant case in view of the existence of substantial evidence that appellant failed to substantially comply with the SMRCCA.”
Richman v. Santa Monica Rent Control Bd., 7 Cal. App. 4th 1457 (Cal. Ct. App. 1992). · cites it 4× “(Civ. Code, § 1947.7 et seq.) The Board’s motion for reconsideration was denied.”
Tri Cnty. Apt. Ass'n v. City of Mountain View, 196 Cal. App. 3d 1283 (Cal. Ct. App. 1987). “(Civ. Code, §§ 1947.7 and 1947.8, which were added in 1986, after the Ordinance was enacted, illustrate the type of municipal legislation which is viewed as local rent control; the administrative structures described there differ materially from the notification procedures…”
Vill. Trailer Park, Inc. v. Santa Monica Rent Control Bd., 124 Cal. Rptr. 2d 857 (Cal. Ct. App. 2002). “(Civ. Code, § 1947.7, subd. (b).) “Substantial compliance” means that the landlord “has made a good faith attempt to comply” with the law and has, after receiving notice of a deficiency, “cured the defect in a timely manner .”
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