Eviction - Just Cause: Policy Issue
Overview
Under a just cause eviction (JCE, also referred to as "good cause eviction") policy, a housing provider is permitted to evict a resident only for reasons explicitly stated under law. Reasons allowed may include:
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Nonpayment of rent;
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A lease violation that remains uncorrected after notice is given by the owner; engaging in criminal activity on the property;
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Nuisance or causing substantial damage to the property;
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Interfering with the safety or enjoyment of the owner or other residents; or
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Because the owner seeks to demolish, substantially rehabilitate or remove the unit from the rental market.
Across the country, JCE remains relatively uncommon. NAA is currently tracking only ten states with the policy in place and roughly fifty localities, the vast majority of which are in California and New York.
While seemingly straightforward, JCE policies create extensive challenges for housing providers and renters. They significantly curtail a housing provider’s ability to manage risks to rental communities and eliminate only providers’ right to nonrenewal of a lease contract.
Industry Position
The National Apartment Association (NAA) opposes adverse policy changes to eviction laws, such as JCE, that can impede housing providers’ ability to manage risks to their rental communities. These policies fail to address the core issues that leave cost-burdened renters at risk of eviction and often restrict housing providers’ right to nonrenewal, potentially forcing them to rent in perpetuity.
As an Owner or Operator, How Does this Affect My Business?
JCE laws restrict housing providers’ capacity to act on resident complaints in a timely manner and delay the removal of disruptive or dangerous residents from communities. These policies can foster an adversarial relationship between providers and their residents as they become frustrated with the inability of providers to address their concerns.
Under JCE laws, owners and managers must keep detailed records and rely on resident testimony to evict disruptive, or even dangerous, residents. Residents may have concerns in testifying against their neighbors. Moreover, these laws eliminate a housing provider’s right to serve a nonrenewal notice on a resident, which signifies the conclusion of their contractual relationship at the end of the lease term.
Ultimately, JCE laws have negative consequences for both renters and their rental communities, make it even harder to own and operate rental housing in tight markets and can encourage housing providers to move investments to jurisdictions with more balanced housing policies, Limiting supply and harming affordability.
Contact Information
To learn more about this issue, please contact NAA's Public Policy team.