Rent Stabilization Frequently Asked Questions

Rent stabilization limits how much and how often rent can be increased for tenants who stay in their units. It is not a rent freeze, and it does not set rents at a fixed amount. Owners may still raise rent every year by the allowed amount, may set a new rent when a unit is lawfully vacated, and may petition for more when needed to earn a fair return or to recover the cost of qualifying improvements. 

The ordinance is intended to preserve existing housing that residents can afford, protect tenants from large and sudden rent increases, and protect owners’ right to fair return. The Rental Registry gives the City accurate information about rental housing so that the program can be administered fairly. 

Santa Barbara Municipal Code (SBMC) Chapter 26.90 (Residential Rent Stabilization) sets the rent limits, petition process, notice rules, and enforcement. SBMC Chapter 26.100 (Residential Rent Registry) requires registration of rental units and sets the registry free. Tenants are also protected by the City’s Just Cause Eviction Ordinance (SBMC Chapter 26.50) and by State law, including the Tenant Protection Act of 2019. 

The Rent Stabilization Program is administered by the City Administrator’s Office, Office of Housing and Community Vitality. A Program Administrator designated by the City Administrator oversees the day-to-day operations. A seven-member Rent Stabilization Board appointed by the City Council hears appeals and supports staff in reviewing and adopting regulations. 

A unit is covered unless it fits one of the exemptions in SBMC § 26.90.010 and 26.90.015. The two most common exemptions are (1) units first occupied on or after February 1, 1995 and (2) units that can be sold separately, such as most single-family homes and condominiums. 

No. It applies only to residential rental units. 

No. It applies only to rental units located within the City of Santa Barbara. Properties in unincorporated Santa Barbara County, Goleta, Montecito, and other jurisdictions are not covered. 

The State Tenant Protection Act (Civil Code Section 1947.12) limits annual increases for many units to 5 percent plus the change in CPI, up to 10 percent. For units covered by the City’s ordinance, the City’s lower limit applies. Units that are exempt from the City’s ordinance may still be subject to the State cap. Owners and tenants should check both. 

No. Units that received a certificate of occupancy or final building inspection on or after February 1, 1995 are exempt from the rent limits. This is required by the State Costa-Hawkins Rental Housing Act. The units must still be registered, and the owner must give tenants a written exemption notice. 

Building permit and certificate of occupancy records are available from the City’s Community Development Department. More specifically, you can request when the final building inspection was completed to allow occupancy. The County Assessor’s records also show a year built, but the date that controls is the date of the certificate of occupancy or final inspection, which may differ.

Usually not. Single-family homes and condominiums that can be sold separate from any other unit are exempt from the rent limits, with two exceptions: (1) if the owner ended the prior tenancy using a notice under Civil Code Section 1946.1 or by changing the terms of the tenancy under Civil Code Section 827, or (2) if the unit is a condominium that the developer has not yet sold to a genuine buyer. The house must still be registered, and the tenant must receive a written exemption notice. 

Yes, if the units were first occupied before February 1, 1995 and no other exemption applies. Multi-unit buildings on a single lot cannot be sold unit by unit, so the single-family/condominium exemption does not apply. 

Possibly. The ordinance defines a rental unit to include a unit rented for residential purposes with or without a valid certificate of occupancy (SBMC § 26.90.020). Coverage depends on the same exemption rules as any other unit. Being covered by the ordinance does not make an unpermitted unit legal under building or zoning codes. 

It depends on when the ADU was completed and whether it can be sold separately. Most ADUs built under recent State laws were completed after February 1, 1995 and are therefore exempt from rent limits. ADUs that are rented must still be registered unless the tenant shares a kitchen or bathroom with the owner who lives on site. 

A unit rented to a tenant using a Section 8 Housing Choice Voucher is exempt only while it participates in the program and only if the contract rent is at or below the Housing Authority of the City of Santa Barbara’s payment standard. If the contract rent exceeds the payment standard, or the unit the leaves the program, the unit is covered. 

Units owned or managed by a public agency or non-profit organization and restricted by a recorded covenant to very low, low or moderate-income households are exempt from rent limits. Their rents are governed by their affordability restrictions. 

• Mobile home and permanent recreation vehicle parks covered by SBMC Chapter 26.08. 
• Hotels, motels, inns, boarding and rooming houses, and lawful short-term vacation rentals, for stays of 30 days or less.
• Hospitals, convents, monasteries, extended medical care facilities, and non-profit homes for the elderly. 
• Treatment or recovery program housing, if residents were told in writing that the housing is temporary. 
• Government-owned housing of federal or State law exempts it from local rent control. 

No. The 30-day exemption for hotels and similar lodging counts days in which an occupant was required to switch rooms, check out and re-register, or sign back-to-back agreements to stay under 30 days (SBMC § 26.90.015 (A)(1)). 

This arrangement does not need to be registered in the Rental Registry (SBMC § 26.100.010 (B)). Whether it is subject to the rent limits depends on the specific circumstances, including when the home was built and whether it can be sold separately. Please contact the Rent Stabilization Program to confirm. 

When you offer a lease (including a renewal), you must give each tenant or prospective tenant a written notice that the unit is exempt and the specific reason for the exemption (SBMC §§ 26.90.010 (B) and 26.90.015 (B)). You must keep proof of this notice. You must also register the unit in the Rental Registry and identify the basis for exemption. 

Your landlord must give you a written notice stating the specific reason your unit is exempt. You may check building records for the year the unit was built, and after the Rental Registry is in place the City will have the owner’s declaration of exemption on file. If you believe the exemption claim is wrong, contact the Rent Stabilization Program. 

Base rent is the starting point for calculating future increases (SBMC § 26.90.020). If the tenancy began on or before December 16, 2025, base rent is the rent in effect on December 16, 2025. If the tenancy began after December 16, 2025, base rent is the rent lawfully set when the tenant moved in. Signing a new or amended lease does not raise the base rent of a tenancy that began on or before December 16, 2025. 

December 16, 2025 is the date fixed by the City Council in the ordinance and when the Rent Increase Moratorium Ordinance was adopted. Using this date prevents large increases in anticipation of the ordinance taking effect from becoming the new baseline.  

Yes. Rent includes all regular payments for the use of the unit and for housing services such as parking, storage, utilities paid through the owner, and similar charges. Rent does not include a refundable security deposit or avoidable fees such as late fees for returned-check fees (SBMC § 26.90.020).  

It is 60% of the annual change in the CPI, or 3%, whichever is less. If the CPI goes down, the adjustment is zero. The CPI change is measured April to April (or March to March if no April figure is published) and rounded to the nearest one-quarter of one percent (SBMC §§ 26.90.020 and 26.90.040). 

The City posts the adjustment on the Rent Stabilization Program webpage by October 1 each year. It applies starting January 1 of the following year.  

The Annual General Adjustment starting January 1, 2027 is 2.1%.  The change in CPI for 2026 is 3.4% and that is rounded to the nearest 0.25% which would be 3.5%. 60% of 3.5% is 2.1%.   

Per year. The Annual General Adjustment is calculated each year and can never be more than 3% for that year.  

No. Only one rent increase is allowed in any 12-month period (SBMC § 26.90.030(E)).  

At least 30 day’s written notice, given in the manner required by State law. The notice must also state that the Rent Stabilization Ordinance exists and that no increase will take effect until the ordinance’s requirements are met (SBMC § 26.90.030(G)).  

The City will make template notices and the program brochure available on the Rent Stabilization Program webpage.  

Yes. Any notice the ordinance or other law requires must be in writing in English and Spanish, or in another language you know or reasonably should know the tenant understands (SBMC § 26.90.110(E)). 

Keep proof that you gave each required notice, copies of leases and rent increase notices, rent payment records, records of the December 16, 2025 rent, repair and maintenance records, and your Rental Registry filings and receipts. You must provide proof of notice compliance to the Program Administrator within three days of a written request (SBMC § 26.90.110(C)). 

The ordinance defines “landlord” to include the owner and any agent or property manager entitled to collect rent. Both may be responsible. The owner remains responsible for registration and for accurate information. 

Violations may lead to enforcement by the City Attorney (civil or criminal), lawsuits by tenants for damages or injunctions, and attorney’s fees. Non-compliance is a complete defense for a tenant in an eviction or rent collection case. After January 1, 2028, owners may not collect rent, raise rent, or evict from units that are not properly registered (SBMC §§ 26.90.120 and 26.100.010(H)). 

Yes. The ordinance is designed to provide a fair return as required by the U.S. and California Constitutions. If the Annual General Adjustment does not provide a fair return, you may file a fair return petition. 

Yes, for qualifying capital improvements, through a capital improvement petition. You must first obtain an approved Capital Improvement Plan before starting the work. The pass-through is limited to 10 percent of the tenant’s monthly rent or $100, whichever is less (SBMC §§ 26.90.060 and 26.90.100). 

No. Improvements completed before December 31, 2025, or during the 2025 base year, do not qualify. 

No. Normal or routine maintenance, repair, or replacement does not quality, nor does work ordered by a government agency to correct a violation.  

If the work is part of a capital improvement and will displace tenants for fewer than 30 days, your Capital Improvement Plan must provide $150 per household per day for lodging and $30 per person per day for meals (adjusted annually). The tenant may instead choose to pay no rent while displaced. If the work will take 30 days or more, you must also follow the substantial remodel rules of the Just Cause Eviction Ordinance (SBMC Chapter 26.50). 

The rent limits stay with the units after a sale. The buyer must file an amendment to the Rental Registry within 30 days of taking ownership and send all tenants a City-prescribed notice of the change in ownership (SBMC § 26.100.010(D)). The Just Cause Eviction Ordinance may also require disclosures to tenants before and after the sale. 

For a covered unit, check that: (1) it is the only increase in the past 12 months; (2) it is no more than the Annual General Adjustment posted by the City (unless a petition was approved); (3) you received at least 30 days’ written notice; and (4) the notice states that the Rent Stabilization Ordinance exists and that no increase takes effect until its requirements are met. 

If you moved in on or before December 16, 2025, it is the rent you were paying on that date. If you moved in later, it is your move-in rent. Look at your lease, rent receipts, or bank records to confirm. 

A new or amended lease cannot raise your base rent if your tenancy began on or before December 16, 2025, and any increase is still limited by the ordinance. If you have questions about signing a lease, contact the Rent Stabilization Program or seek legal advice.

First, request the repairs in writing and keep a copy. If they are not made, you may file a petition for a rent reduction based on the loss in rental value (SBMC § 26.90.070(A)). Your landlord also may not take the Annual General Adjustment while the unit is not habitable. You may also contact the City’s Building and Safety Division to request an inspection. 

File a petition to adjust your rent to its lawful level. If granted, the landlord will be ordered to repay the overcharge, either within 30 days or by allowing you to deduct part of your rent each month. If the landlord fails to repay on time, you may withhold the overcharge from future rent. The petition decision is a defense if your landlord tries to evict you for withholding as allowed (SBMC § 26.90.070(C)–(D)).

Withholding rent without a petition decision is risky and may lead to an eviction case. The safer course is to contact the Rent Stabilization Program and file a petition. You may still raise an illegal increase or overpayment as a defense if an eviction case is filed. 

The rules about when you can be evicted are mainly in the City’s Just Cause Eviction Ordinance (SBMC Chapter 26.50) and State law. The Rent Stabilization Ordinance adds protections: a landlord’s failure to comply with the ordinance is a complete defense to an eviction, a landlord who tries to evict in violation of the ordinance may owe you damages and attorney’s fees, and after January 1, 2028 a landlord may not evict you from an unregistered unit. 

State law (Civil Code Section 1942.5) prohibits retaliation against tenants for lawfully exercising their rights. If you believe you are experiencing retaliation, contact the Rent Stabilization Program or seek legal advice.

Yes, up to 50 percent of the annual fee for your unit, but only if the landlord paid on time. It must be spread over 12 equal monthly payments, listed separately from rent, and not counted as rent for future increases. You cannot be charged late fees or penalties, and you don’t owe unpaid installments after you move out. Tenants in deed-restricted or subsidized affordable housing cannot be charged any part of the fee (SBMC § 26.100.020(D)). 

No. Your base rent and protections continue with the new owner. The new owner must send you a notice with their contact information within 30 days. 

No. When you move into a new unit, the owner may set the starting rent, subject to State law. After that, increases are limited if the unit is covered. 

Contact the Rent Stabilization Program. The City may request proof of compliance from the landlord, who must provide it within three days. Failure to give required notices is a violation of the ordinance. 

Owners of all residential rental units in the City, whether or not the units are covered by rent limits. The only exception is a unit inside an owner-occupied home where the owner and tenant share kitchen or bathroom facilities (SBMC § 26.100.010(B)). 

The Registry is the City’s record of all rental housing. Registering exempt units allows the City to confirm exemptions, communicate with all owners, and administer the program accurately. Exempt units have a later deadline (October 1, 2027). 

Covered units: by April 1, 2027, or 30 days after the City makes the form available, whichever is later. Exempt units: by October 1, 2027, or 30 days after the form becomes available, whichever is later. Registration must be renewed annually on a schedule set by the Program Administrator. 

The City will announce the launch of the Rental Registry on the Rent Stabilization Program webpage and by mail to property owners.  

The ordinance requires the tenants’ move-in dates; the Program Administrator may require additional information by regulation. 

No. You may submit one form for all units on a property, as long as it includes all required information for each unit and the fee for each covered unit is paid (SBMC § 26.100.010(C)(5)). 

If the unit is rented or offered for rent for residential purposes, it is a rental unit and must be registered. Use the information as of the filing date and amend the registration within 30 days after a new tenant moves in. 

Yes. However, the registration must include the owner’s information, and the owner is responsible for its accuracy and for payment of the fee. 

Yes. Every registration and exemption form must include your declaration, under penalty of perjury, that the information is true and correct (SBMC § 26.100.010(G)). 

Within 30 days after: a new tenant moves in following a vacancy; you buy the property (the new owner files); your property manager or authorized agent changes; or your address or your agent’s address changes (SBMC § 26.100.010(D)–(E)). 

Beginning January 1, 2028, the City may begin enforcement. Late charges and penalties will apply. In addition, you may not advertise the unit, demand or accept rent, evict a tenant, take a rent increase, file a rent increase petition, or begin a no-fault eviction until the unit is properly registered (SBMC § 26.100.010(H)). 

Registry information will be handled in accordance with applicable privacy and public records laws. Information that is confidential by law will be protected.