Cal. Civ. Code § 17975.5
California Health and Safety Code
Operative Text
(a) If the owner or designated agent fails, neglects, or refuses to pay relocation payments to a displaced tenant or a tenant subject to displacement, except in the situations described in Section 17975.4, the local enforcement agency may advance relocation payments as specified in Section 17975.2. If the local enforcement agency, pursuant to locally adopted policies, offers to advance relocation payments in accordance with Section 17975.2, the local enforcement agency shall be entitled to recover from the owner any amount paid to a tenant pursuant to this section except payments made pursuant to subdivision (c) of Section 17975.4. The local enforcement agency shall also be entitled to recover from the owner or designated agent an additional amount equal to the sum of one-half the amount so paid, but not to exceed ten thousand dollars ($10,000), as a penalty for failure to make timely payment to the displaced tenant, and the local enforcement agency’s actual costs, including direct and indirect costs, of administering the provision of benefits to the displaced tenant. (b) Any amounts paid by the local enforcement agency, except pursuant to subdivision (c) of Section 17975.4, and any applicable penalties and actual costs may also be placed as a lien against the property by the local enforcement agency by recording the lien in the county recorder’s office of the county in which the real property is located. (c) Any local enforcement agency that elects, at its own option pursuant to subdivision (a), to advance relocation payments to displaced tenants when the owner or designated agent fails, neglects, or refuses to pay relocation payments to displaced tenants, shall prior to instituting any action to collect from the owner or designated agent relocation benefits paid pursuant to this section, or to impose a lien therefor, send to the owner or designated agent by first-class mail, postage prepaid, at the owner’s address as shown on the last equalized assessment roll, an itemized accounting of all benefits paid by the local enforcement agency to the owner’s tenants, and any penalties or costs the local enforcement agency is seeking to recover as authorized pursuant to subdivision (a). If the owner or designated agent contends that not all of the benefits are chargeable to the owner or designated agent because the recipients were not displaced tenants, no benefits were payable pursuant to Section 17975.4, or on other grounds, the owner or designated agent shall submit a written appeal to the director of the local enforcement agency within 20 days after receipt by the owner or designated agent of the itemized accounting. The director, or the director’s designee, shall hold an administrative hearing for the purpose of determining the amount of benefits paid that are chargeable to the owner or designated agent, and any penalties or costs the local enforcement agency may recover pursuant to subdivision (a). The local enforcement agency shall provide an administrative appeal process for any appeal of a decision of the director or the director’s designee. The final decision of the local appellate body shall be subject to Section 1094.5 of the Code of Civil Procedure. If the owner fails to obtain a more favorable decision than that set forth in the itemized accounting, the owner or designated agent shall be liable to the local enforcement agency for the costs of the administrative hearing and appeal, not to exceed five thousand dollars ($5,000). The failure to receive the itemized accounting shall not relieve the owner of any obligation to the city or county. (d) Nothing in this article shall be construed to require the local enforcement agency to pay any relocation benefits to any tenant, or assume any obligation, requirement, or duty of the owner pursuant to this article.
Cal. Health & Safety Code § 17975.5 establishes a backstop mechanism under which a local enforcement agency may step in and advance relocation payments to displaced tenants when an owner or their agent fails to make those payments. When the agency does so, it is entitled to recover the advanced amounts from the owner, plus a penalty of up to one-half the amount paid (capped at $10,000), along with the agency's actual administrative costs. The agency may also secure repayment by recording a lien against the property, and the statute sets out a formal notice and administrative appeal process before collection or lien actions can proceed.
Plain English — not legal advice.
Under Cal. Health & Safety Code § 17975.5, property owners and designated agents who fail to make required relocation payments risk having the local enforcement agency advance those funds on their behalf — and then seek full reimbursement plus a financial penalty and administrative costs. Compliant operators generally ensure relocation payments are made directly and on time, keeping documentation that payments were properly delivered to eligible tenants. When an owner receives an itemized accounting from the agency, § 17975.5(c) provides a 20-day window to submit a written appeal to the agency director if the owner believes some or all charges are not properly attributable to them.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Cal. Health & Safety Code § 17975.5 gives displaced tenants an additional layer of protection: if an owner or agent does not pay required relocation benefits, the local enforcement agency may choose to advance those payments directly to the tenant. Tenants who have not received relocation payments they believe are owed may contact their local enforcement agency to ask whether it has a policy of advancing such benefits under § 17975.5. Tenant-rights organizations can help explain how this provision interacts with local complaint processes and what documentation may be useful when engaging with the enforcement agency.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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