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recontrol. Section 7060.2 provides, “If a public entity, by valid
exercise of its police power, has in effect any control or system of
control on the price at which accommodations may be offered for
rent or lease, that entity may, notwithstanding any provision of
this chapter, provide by statute or ordinance, or by regulation
. . . , that any accommodations which have been offered for rent
or lease and which were subject to that control or system of
control at the time the accommodations were withdrawn from
rent or lease, shall be subject to” recontrol under specified
circumstances. For example, if accommodations are offered for
rent within 10 years of withdrawal, the public entity may require
the landlord to offer the accommodations first to displaced
tenants. (§ 7060.2, subd. (c).) If the accommodations are offered
for rent within five years of withdrawal, they must be offered at
the rents in place at the time of withdrawal, plus annual
adjustments authorized under the rent control law. (Id.,
subd. (a).) And if the accommodations are offered for rent within
two years of withdrawal, they are treated as if they were not
withdrawn, and the landlord must offer the accommodations to
displaced tenants and may be liable for actual and exemplary
damages for displacement of the tenants. (Id., subd. (b).)
Section 7060.2(d) applies when withdrawn accommodations
are demolished. Section 7060.2(d) provides, “If the
accommodations are demolished, and new accommodations are
constructed on the same property, and offered for rent or lease
within five years of the date the accommodations were
withdrawn from rent or lease, the newly constructed
accommodations shall be subject to any system of controls on the
price at which they would be offered on the basis of a fair and
reasonable return on the newly constructed accommodations,