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A. General Application. Except as provided in subsection B of this section, the provisions of this chapter shall apply to tenants and tenant households on the first day of the term of rental agreements for dwelling units:

1. That contain a separate bathroom, kitchen, and living area in a multifamily or multipurpose dwelling;

2. In single-room occupancy residential structures; or

3. In a structure that is being used for residential uses whether or not the residential use is a conforming use permitted under the Zoning Ordinance, that is hired, rented, or leased to a household within the meaning of California Civil Code Section 1940. This includes any dwelling unit that is actually used for residential purposes, including live-work spaces, whether or not the residential use is legally permitted.

B. Exceptions. Notwithstanding subsection A of this section, the provisions of this chapter shall not apply to:

1. Tenant Protection Act Exceptions.

a. Transient and tourist occupancies as defined in California Civil Code Section 1940(b).

b. Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the California Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.

c. Dormitories owned and operated by an institution of higher education or a kindergarten and grades one to twelve, inclusive, school.

2. Small Property Owners. Residential rental units of property owners that are not a real estate investment trust, as defined in Section 856 of the Internal Revenue Code, or a corporation, or a limited liability company in which at least one member is a corporation, that own three or fewer such units in the city, and that have provided written notice to the tenants in the rental agreement that the residential property are exempt from this chapter. The notice must read as follows:

This dwelling unit is not subject to the just cause requirements of Section 1946.2 of the Civil Code and is not subject to the just cause or other requirements of Chapter 6.60 entitled "Residential Tenancy Protections" of the Petaluma Municipal Code. The owner is not a real estate investment trust, as defined in Section 856 of the Internal Revenue Code, or a corporation, or a limited liability company in which at least one member is a corporation, and owns 3 or fewer residential units in Petaluma.

3. Temporary Tenancies. Temporary tenancies as defined in this chapter.

4. Tenant Property Managers. Any dwelling unit occupied by a tenant who is employed by a landlord for the purpose of managing the property or by a tenant who is permitted to reside in the dwelling unit in consideration of managing the property.

5. Units Shared With Owner. Any dwelling unit in which the owner resides with a tenant or tenant household as the owner’s primary residence and in which the owner shares a bathroom or kitchen with the tenant or tenant household.

(Ord. 2848 NCS §2, 2023; Ord. 2823 NCS §2, 2022.)