How do rent control laws affect TICs?
In some communities, rent control laws restrict the ability of TIC owners to evict tenants in order to occupy their new homes. In San Francisco for example, only one “Owner Move-In” eviction per building is allowed, and this type of eviction is limited to situations where the tenant is not a protected elderly, disabled or terminally ill person. The evicting owner must hold a specified minimum ownership interest and meet a variety of other qualifications. Where more than one eviction is necessary, the tenant is protected, or the owner does not qualify under “Owner Move-In” rules, all tenants in the building can be evicted under California’s “Ellis Act”, but subsequent rental of the property is restricted. Under a recent law, it is also more difficult to convert the TIC to condominiums if elderly or disabled tenants have were evicted after November 16, 2004. All of these laws are complex and anyone contemplating a TIC purchase of a tenant-occupied building should seek legal advice before
