AB 1143

This bill requires a landlord to disclose to a prospective tenant whether a residential rental agreement includes utility service charges and explain the structure by which the prospective tenant would be expected to pay for any utility service charged to the tenant, before entering into the rental agreement or accepting any money from the prospective tenant. A “utility service” is defined as the furnishing of electricity, water, gas, or sewer service. The bill also requires that if a residential rental agreement is for premises that are not separately metered from common areas or other premises in a building and the rental agreement does not include all utility services charges in the rent, the landlord must disclose in the rental agreement how charges for utilities will be allocated. A landlord may allocate a utility service charge among tenants by the number of individuals residing in a building, but may not allocate a charge among tenants by the number of dwelling units or premises in a building. A landlord that violates these provisions may not charge a tenant for any utility service during the period of the residential rental agreement.

Additionally, the bill requires that if a landlord charges a residential tenant for a utility service in an amount that is subject to variation during different periods of the rental agreement a tenant may, at any time during the tenancy, request a landlord to provide a written and detailed accounting of how the landlord calculated the amount charged. The landlord must respond to the tenant’s request within 14 calendar days and, if the landlord fails to do so, the tenant may withhold future utility service payments until the landlord complies. The bill also requires all residential rental agreements to provide notice that a tenant may request such information.

The bill also requires that, if a residential rental agreement does not include all utility services charges in the rent and the landlord allocates a charge for a utility service among the tenants, the landlord must ensure that the tenant has the opportunity to pay the charge for the utility service in the same transaction in which the tenant makes the tenant’s rent payment. The bill also prohibits the landlord and any of its affiliates from charging a separate fee for the processing of the utility service payment.

Under the bill, a cooperative or public utility that furnishes electricity, water, gas, or sewer service at retail to a multiple-unit residential property must provide to a tenant of that property, upon request, a copy of the charges for the property. The bill allows a cooperative or public utility to require proof of an active rental agreement in order for a tenant to receive this information.