When was the Ellis Act implemented?
The Ellis Act was adopted by the California Legislature in 1985 after a California Supreme Court ruling.
The court found that a landlord who wanted to go out of business had the same recourse that any other business owner did: sell the business. Selling the property would accomplish the goal of going out of business, without evicting tenants.
Because of this ruling, the California Legislature created Ellis Act with the intent to let landlords evict tenants for the purpose of going out of business. The legislature further strengthened that intention by including provisions in the Ellis Act which severely restrict the landlord’s ability to evict and then re-enter the land lording business.