Rent Control.

A landlord converted a rent-controlled apartment building to condominiums, obtained a new certificate of occupancy in 2009 based on the change in use, and raised the rent. When a tenant objected, the landlord sought a declaration from the court that the unit was exempt from local rent control ordinances under the Costa-Hawkins Rental Housing Act (Civil Code section 1954.50, et seq.). The trial court found the unit was not exempt and entered judgment in favor of the tenant. Section 1954.52, subdivision (a), provides three exemptions from local rent control laws, any of which allow an owner to establish the initial and subsequent rental rates for a unit. The first exemption is for a unit that has “a certificate of occupancy issued after February 1, 1995.”  On appeal, the landlord contends the unit is exempt from rent control under section 1954.52, subdivision (a)(1), which provides an exemption for units that have a certificate of occupancy issued after 1995.“ In 2002, in order to curb abuse of section 1954.52 through false condominium conversions, the Legislature carefully excluded condominium units which have not been sold separately to a bona fide purchaser. The appellate court was not persuading, concluding: “In this case, Tenant’s unit is not exempt under subdivision (a)(1) of section 1954.52, because Tenant occupied the unit prior to the issuance of the 2009 certificate of occupancy. The 2009 certificate of occupancy did not precede the residential use of the property. The trial court properly determined Tenant’s unit was subject to rent control and not exempt. We affirm the judgment.” (Burien, LLC v. Wiley (Cal. App. Second Dist., Div. 5; October 22, 2014)  230 Cal.App.4th 1039, [179 Cal.Rptr.3d 14].)