SB 567, two years in: what the no-fault reform actually changed

What SB 567 actually changed

SB 567 was signed September 30, 2023 and took effect April 1, 2024. It amended Civil Code §1946.2 — AB 1482's just-cause framework — to bolt teeth onto the no-fault grounds. The target was the pre-2024 norm where owner move-in and substantial remodel were soft enough that some landlords used them as pretextual ways to clear AB 1482-protected tenants.

The five changes that mattered:

• 12-month occupancy floor on OMI. Owner or qualifying relative has to occupy as a primary residence for 12 continuous months. No minimum existed before.
• 90-day move-in deadline. The qualifying person has to be in the unit within 90 days of the tenant vacating. Hard deadline, no grace period.
• Family member definition narrowed. Owner, spouse or registered domestic partner, child or stepchild, parent or stepparent, grandchild, grandparent. Siblings, in-laws, and cousins don't qualify.
• Substantial remodel narrowed. Requires a real building permit, work that genuinely cannot be done with the unit occupied, and good-faith execution.
• Penalty floor: actual damages or $10,000 per tenant, whichever is greater. Plus attorney's fees.

What the 12-month rule looks like in practice

This is the biggest single change. Serving an OMI termination notice now commits the owner to 12 continuous months of primary occupancy. If circumstances change — job relocation, family situation, change of mind — and the owner moves out before the year is up, the original tenant collects:

• Actual damages — typically rent differential at the replacement unit, moving costs, search costs
• Or $10,000 per tenant, whichever is greater
• Mandatory attorney's fees
• Right of return at the prior rent if the unit gets re-rented inside 12 months

The decision rule: if you're not 95% certain the qualifying person will be in the unit for a full year, don't use OMI as the termination ground. Pick a different ground or wait.

The 90-day move-in deadline

Miss the 90 days and the entire termination is presumptively pretextual. Tenant attorneys file public-records requests at day 60 and physically drive by at day 91. The same penalty package applies.

Practical move: confirm the qualifying person's move-in date before serving the termination notice. Aim for occupancy inside the first 60 days of vacancy to leave a buffer. Last-minute scrambles end up in court.

Substantial remodel — the tightened test

SB 567 closed the back-door use of "substantial remodel" too. Pre-2024, the term was loose enough that some landlords used it for cosmetic refresh. Now the work has to clear all of these:

• Require a permit from the local building department
• Include replacement or substantial modification of plumbing, electrical, HVAC, or structural elements (not just cosmetic refresh)
• Cause the unit to be vacant for at least 30 days
• Include a written notice to the tenant with: scope of work, expected start and end dates, contractor information, and the tenant's right of first refusal

Cosmetic remodels — paint, flooring, new appliances, kitchen and bath updates that don't require building permits — no longer qualify as substantial remodels under SB 567.

What this means for OC landlords

SB 567 reaches only the no-fault grounds. At-fault terminations — non-payment, lease violations, nuisance — are unaffected. Most owners running clean portfolios rarely touch the no-fault side anyway, but when they do, this is the checklist that needs to be true before notice goes out:

• Is this for owner move-in? Confirm: the family member qualifies under the narrowed definition, the move-in will happen within 90 days, and occupancy will continue for 12 months.
• Is this for substantial remodel? Confirm: building permits are pulled or applied for, the work involves systems (not cosmetics), the vacancy will exceed 30 days, and you're prepared to offer right of first refusal.
• Have you given proper written notice with the SB 567-required disclosures?
• Have you computed and offered relocation assistance (typically one month's rent in AB 1482-covered units)?

If any answer is uncertain, consult a California real estate attorney before serving notice. A defective notice + a lawsuit easily costs more than the rent differential the landlord was trying to capture.

Common questions