Ellis Act

 

The Ellis Act is a California state law which gives landlords the right to evict tenants to "go out of business." For an Ellis Act eviction, the landlord must remove all of the units in the building from the rental market. When a landlord exercises the Ellis Act, the apartments can not be re-rented, except at the same rent the evicted tenant was paying, for five years following the evictions, While there are restrictions on ever re-renting the units, there are no such restrictions on converting them to ownership units (e.g., condos).

To read more about the Ellis Act, please see the Ellis Act, CA Government Code Section 7060-7060.7.