On January 1, 2020 California’s Tenant Protection Act AB 1482 took effect and will remain in effect until January 1, 2030. We find that this new law will have a minimum effect on The Schroeder Companies properties. We are not anticipating any financial hardship to our investors or investments as a result of this law.

The main points of this law are:

• • Prohibit an owner over the course of 12 month period to increase gross rental rate more than 5% plus CPI (3.33%). Which limits rent raises to 8.33%
• • Prohibits an owner for terminating tenancy without just cause