(a) A landlord of a commercial real property shall not charge a qualified commercial tenant a fee to recover building operating costs unless all of the following apply: (1) The building operating costs are allocated proportionately per tenant, by square footage, or another method as substantiated through supporting documentation provided by the landlord to the qualified commercial tenant. (2) The building operating costs have been incurred within the previous 18 months, or are reasonably expected to be incurred within the next 12 months based on reasonable estimates. (3) Before the execution of the lease, the landlord provides the prospective qualified commercial tenant a paper or electronic notice stating that the tenant may inspect any supporting documentation of building operating costs upon written request pursuant to paragraph (4). (4) Within 30 days of a written request, the landlord provides the qualified commercial tenant supporting documentation of the previously incurred or reasonably expected building operating costs. (5) The costs do not include expenses paid by a tenant directly to a third party. (6) The costs do not include expenses for which a third party, tenant, or insurance reimbursed the landlord. (b) A landlord of a commercial real property shall not charge a fee to recover any building operating costs from the qualified commercial tenant until the landlord provides the qualified commercial tenant supporting documentation. (c) During the course of a commercial tenancy, the landlord shall not alter the method or formula used to allocate building operating costs to the qualified commercial tenant in a way that increases the qualified commercial tenantâs share of those costs, unless the qualified commercial tenant is provided with written notice of the change in the method or formula with supporting documentation of the basis of the alteration. (d) In an action for an unlawful detainer, ejectment, or other action to recover possession based on a failure to pay a fee to recover building operating costs, a qualified commercial tenant may raise, as an affirmative defense, that the landlord violated this section. (e) A landlord of a commercial real property who violates this section shall be liable to a qualified commercial tenant in a civil action for all of the following: (1) Actual damages. (2) In the courts discretion, reasonable attorneyâs fees and costs. (3) Upon showing that the landlord, lessor, or their agent has acted willfully or with oppression, fraud, or malice both of the following: (A) Three times the amount of actual damages. (B) Punitive damages. (f) The district attorney, city attorney, or county counsel in the jurisdiction in which the commercial real property is located, in the name of the city or county, may seek injunctive relief based on a violation of this section. (g) Any waiver of a right under this section by a qualified commercial tenant shall be void as a matter of public policy. (h) For the purposes of this section, the following definitions apply: (1) âBuilding operating costsâ means costs that are incurred on behalf of a tenant for the operation, maintenance, or repair of the commercial real property, including, but not limited to, maintenance of common areas, utilities that are not separately metered, and taxes or assessments charged to the landlord pursuant to property ownership. (2) âCommercial real propertyâ means all real property in this state, except dwelling units subject to this chapter, mobilehomes, as defined in Section 798.3, and recreational vehicles, as defined in Section 799.29. (3) âMicroenterpriseâ has the same meaning as that term is defined in subdivision (a) of Section 18000 of the Business and Professions Code. (4) âNonprofit organizationâ means any private nonprofit organization that qualifies under Section 501(c)(3) of the United States Internal Revenue Code of 1986. (5) âQualified commercial tenantâ means a tenant of commercial real pr
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