2026 New Laws
On March 3rd of this year, the Bar Association of San Francisco convened its annual “Hot Topics” in landlord-tenant law. This two-hour presentation is geared towards legal practitioners and highlights the legislative and case law developments that came down within the past twelve or so months. Below are the highlights.
The first topic was an update from the director of the Eviction Defense Collaborative pertaining to the Emergency Rental Assistance Program, or ERAP, which assists eligible San Francisco residents who (i) have incurred past due rent; (ii) cannot afford move-in costs for a new apartment they have identified and plan to lease; and/or (iii) need limited assistance with future rent to maintain their housing. To be eligible for assistance, the tenant must live in San Francisco, have a household income at or below 50% of the Area Median Income for the household size, and have experienced a recent financial hardship. Qualifying tenants may receive up to $10,000 or, if an eviction action is pending, up to $20,000. If you have a nonpayment of rent dispute with your tenant, please encourage your tenant to engage with ERAP before this program runs out of funding.
A new state law, AB 628, requires all rentals entered into, amended, or extended on or after January 1, 2026, to contain a working stove and refrigerator in order to be deemed as habitable. The stove must be maintained in good working order and capable of safely generating heat for cooking purposes. Likewise, the refrigerator must be maintained in good working order and capable of safely storing food. Housing providers must repair or replace a stove or refrigerator that is subject to a recall. Single-room occupancy units (SROs) are exempt from this requirement.
Another state law, AB 414, requires a housing provider who receives a security deposit or rental payments by means of electronic transfer to return the security deposit by electronic transfer, unless the landlord and tenant agree to a different method of returning the security deposit. Specifically: (1) The amendment to the security deposit law provides that if the landlord received the security deposit or rental payments from the tenant electronically, then the landlord shall furnish the remainder of the security deposit electronically to a bank account or other financial institution designated by the tenant, or by any electronic or virtual method available to the landlord. Alternatively, the landlord and tenant may, by written agreement, designate another method of return, including, but not limited to, by personal delivery or by a check made payable to the tenant and mailed to an address provided by the tenant. (2) The amendment also provides that upon mutual agreement between the landlord and tenant entered into at the commencement of the tenancy or at any time during or after the tenancy, the landlord may send the itemized statement by either: (a) email to an account provided by the tenant, or (b) mailed to an address provided by the tenant by first-class mail, postage prepaid.
If multiple adult tenants reside in the apartment, the landlord must return the remainder of the security deposit by check made payable to all adult tenants on the lease agreement at the time the tenancy terminates and furnish the itemized statement by personal delivery or first-class mail, postage prepaid, to any one of the adult tenants chosen by the landlord. Also, the landlord may enter into a mutual written agreement between the landlord and all adult tenants, at the commencement of the tenancy or at any time during or after the tenancy, that specifies both of the following:
- How any remaining portion of the security deposit will be returned, including whether it will be returned to a specific adult tenant or divided among multiple tenants, with the allocation percentages. If any remaining portion of the deposit is to be returned to multiple adult tenants, the landlord may return the deposit by either a check by first-class mail, postage prepaid, or an electronic deposit to a bank account or other financial institution designated by each adult tenant, as specified in the agreement.
- (ii) For each adult tenant, the agreement shall specify whether the landlord will furnish the itemized statement by email or first-class mail, postage prepaid, along with a forwarding address or email account.
Finally, if multiple adult tenants reside in an apartment and a tenant terminates the lease due to domestic violence and no written mutual agreement was entered into by the landlord and all adult tenants, and the tenant who terminates the lease due to domestic violence requests that the security deposit be disbursed in a manner other than by check made payable to all adult tenants, the landlord may return the deposit in a manner other than by check made payable to all adult tenants.
SB 610, also a state law, mandates that housing providers must clean up disaster related debris and remediate damage caused by a disaster. This regulation will apply in instances where the property has been impacted by a flood or fire. Remember, San Francisco has a local law that requires you to offer the rental unit back to any displaced resident on the same terms of tenancy that existed prior to the displacement. SB 610 reinforces the obligation to repair damage caused by the disaster.
State law AB 246 authorizes a tenant to assert Social Security hardship as an affirmative defense in an unlawful detainer proceeding based upon nonpayment of rent. “Social Security hardship” is defined as a loss of income due to an interruption in the payment of Social Security benefits due to the action or inaction of the federal government. If the tenant can substantiate this hardship, the court will be required to halt the eviction action. The tenant, however, would not be relieved of the obligation to pay past due rent, but would be required within 14 days of the Social Security benefits being restored to either paying all past due rent or entering into a mutually agreed upon payment plan with the owner.
State law AB 1414 prohibits a housing provider from requiring a tenant to use a particular internet service provider and allows a tenant to deduct the cost of the internet subscription from rent if the housing provider violates this law. Remember that in San Francisco we have a local law that permits tenants to choose their own internet provider and requires the building owner to reasonably cooperate with the installation of necessary hardware.
Lastly, state law AB 455 requires disclosure of thirdhand smoke residue in real estate sales (not rentals). “Thirdhand smoke” is defined as the toxic chemical residue left by tobacco smoke accumulating in carpets, walls, and furniture that became imbedded in building materials. This law requires the seller of a single-family residential property who has actual knowledge of the existence of any residue from smoking or vaping tobacco or nicotine products, or any history of occupants smoking or vaping tobacco or nicotine products on the property, to disclose that knowledge to the buyer in writing.
The panel that presented these topics included Andrew Westley of Signature Resolution, Ora S. Prochovnick, Director of Litigation and Policy for the Eviction Defense Collaborative, Kavita Sharma of the Sharma Law Group, and Nils Rosenquest along with Dave Wasserman.