). Landlords can petition for an increase above the cap amount. California has a total of 26 MSA regions under which all of its counties and cities fall into. there are different CPI indexes available for different cities and regions in the United States. Landlords must provide a just cause for evicting tenants. Landlords with properties that are not subject to rent control laws can increase their rents as much as necessary. rent-stabilized or rent-controlled apartment, Can My Landlord Sell the House Im Renting? However, rent control does not apply to all rentals in California. Every rental property in California (that is not exempt from AB 1482) can have an annual rent increase of 5% plus the annual CPI (Consumer Price Index) percentage change. So, you should protect yourself (and your money) from an unfair increase, but dont go so far as to threaten your landlord and put your housing situation at risk. This landlord can increase the rent by a minimum of 5% to $1,050 per month. Editorial Note: The content of this article is based on the authors opinions and recommendations alone. Civ. In simple words, every landlord in California that is exempt from AB1482 can raise their annual rent by about 5% plus yearly CPI (consumer price index) percentage change. The Tenant Protections online tool will enable renters in California to easily check the legality of rent increases by landlords. And, if the landlord finds the tenant to be difficult to work with, the landlord is entitled to allow the tenancy to expire and find a new tenant.. There isnt much power renters have to dissuade landlords from raising rent. Only one rent increase is allowed annually, limited to 75% of the increase in the regional Consumer Price Index (CPI). In unregulated housing, a landlord has the right to ask for whatever rental amount he or she wants, Scherer says. Rent control rules cover typical rentals, including apartments. How much can a landlord raise rent in California?, How much notice does a landlord need to give before they raise the rent?, When is it illegal to raise rent in California?, How to save money to help with a rent increase, The California Tenant Protection Act (AB 1482) lays out the maximum that landlords can increase their tenants' rents by 5% plus the regional CPI, by 10% of the lowest rent charged during the 12 months before the rent increasewhichever number is less. The Ultimate Guide to Renters Rights in California, California Code of Civil Procedure 1161. Top Firms for Landlord-Tenant Lawyer Free Consultation in, Government Programs for Home Owners in 2021. They're subject to a set of regulations to keep those rents affordable.. For example, if the local inflation rate for 2022 is 2%, landlords can increase rent by a maximum of 7% (5% + 2%). When it comes tohow much a landlord can raise rent, anything flies, says Pellegrini. The average cost of rent for a one-bedroom unit in Santa Monica is roughly $2,800, which represents an approximate 14% increase from 2021. Simple rules. If your landlord pays for the gas and electricity in your rental unit, he or she may increase your rent another 1% for each utility. But Dan Yukelson, head of the Apartment Assn. Can I Sue Landlord for Roach Infestation? In California, for instance, that advance notice expandsto 60 days if the increase is more than 10% of the rent. Should you sue your landlord. However, it's important to note that this law only applies to rental properties that were built before February 1, 1995 and doesn't apply to properties that are newly constructed, owner-occupied duplexes, and certain other types of properties. Under the new legislation, landlords will only be able to raise the rent by 5% (plus the local rate of inflation) for any existing tenant. Because many multi-family structures were converted to condos and new construction was delayed, it pushed up the cost of living.There is no research or analysis on the effects of rent control in California. Rent control laws dont in any way waive the right of a landlord to evict a tenant. Meaning, that if your rent is $1000, your landlord can only raise it to $1100 in one yearthey cannot exceed a 10% increase. It must end. You may occasionally receive promotional content from the Los Angeles Times. Note, though, that cities and counties can enact their own rent control. Landlords will be allowed to boost the rent on millions of apartments statewide by as much as 10% starting next month. Your submission has been received! A 1995 state law, the Costa-Hawkins Rental Housing Act, says that local rent-control regulation doesn't apply to single family homes, condominiums, and units built after February 1, 1995 (many ordinances also exempt properties built after the ordinance's effective date). The new law will only apply to cities that dont yet have a local rent control law. For more information on the many local ordinances that affect rent and evictions, including relocation assistance and owner move-ins, see our detailed Rent Control Chart for California. Only one increase is allowed every 12 months, calculated from the day the increase first takes effect. These states dont have statewide rent control, but certain counties and cities may have it: These states follow the Dillon Rule, which means a local governments authority is granted by the state legislature. In California, for instance, that advance notice expands to 60 days if the increase is more than 10% of the rent. But beginning next month, because inflation is so high, every region in the state meets the requirement for the cap to be set at a 10% rent increase. Cities that already have rent control laws in places like Los Angeles and San Francisco will keep their existing rent control rules the new state legislation wont overwrite them. For example, if youve signed a one-year contract, itll be a year before rent can go up, or two years if youve signed a two-year lease agreement (which is why signing a lease for two years or longer is wise, to keep the rent down). However, special Pandemic "wind-down" rules apply. So, in all but a few cases, Id highly recommend that the tenant communicate with the landlord first if something doesnt seem right. California Penal Code 396 prohibits any individual or service provider to raise the price of goods or services by more than 10% during a declared state of emergency. Fewer tenant turnover leads to less work and stress for the landlord. (Tenants Together has put together a list of cities with rent control that you can find here.). However, if the landlord wants to increase the rent to the maximum legal amount, they will need to determine the April 2021 CPI for Long Beach, California. Some states prohibit rent control, which some argue can create unintended consequences like reducing the amount of rental housing in an area or higher rents in an uncontrolled market. As unfortunate as it may be, rent increases are common, and many tenants expect some kind of increase every time their lease comes up. For residential properties with five or more units, the maximum increase is 3% or the cost of inflation (whichever is greater), as measured by the local CPI. Certain properties are not subject to AB 1482, and landlords can raise rent however much they please. In this case, one would assume that seven days notice would suffice. 755-NS, 956-NS, 1284-NS. San Diego Union-Tribune, Surfers in Newport Beach have been enjoying the summers largest waves this week. While the new bill doesnt prevent landlords from raising the rent when a tenant moves out, heightened eviction protections and a cap on rent increases could decrease profitability and lower tenant turnover, limiting more substantial rent increases. How much can a landlord raise rent in California? The increase cannot exceed 10%. So continue reading! Today well be covering everything you need to know about how to figure it out. What Is Not Covered by Landlord Insurance? However, it's important to note that every state and county can differ greatly. In Los Angeles County, for example, the local law only applies to properties built prior to 1978. Based on our example, from May 12, 2021 to May 12, 2022 (or until the new April 2022 CPI is released), the maximum allowable rent increase for rental properties in Long Beach, is 8.6%. Rent control laws typically specify a maximum percentage by which landlords can increase rent (for example, 5%) along with corresponding limits on the frequency of increases (typically once annually). San Diego: 74, partly cloudy. Ensure to check the CPI indexes as there are different CPI indexes in many cities and regions in the US. Antioch Municipal Code Title 11, Chapter 1. Owners are really hurting right now, Yukelson said. Rents in public housing are correlated to household income, and so they cannot be simply arbitrarily raised, Scherer says. Finding one of these rent-controlled apartments is something like locating the holy grail. Jerry is an insurance super app that makes it easy to upgrade your policy without breaking the bank. Free Quotes. The city has a helpful webpage for determining allowable increases, "rent control" (also known as "rent stabilization"), violating a significant term of the lease, The California Landlord's Law Book: Rights & Responsibilities, Homeowners: Taxes, Improvements, and More, Do Not Sell or Share My Personal Information, engaging in illegal or prohibited activities like drug dealing, disturbing neighbors, or damaging property, the landlord wanting to move into the unit or have a family member do so, and, the landlord wanting to do a remodel that can't be done while tenants are living in the property. Thousand Oaks Rent Stabilization Ordinances Nos. Meanwhile, if youre renting with a month-to-month lease, your rent cant increase until the end of any given month. A 'for rent' sign is posted in South Pasadena in Los Angeles County on Oct. 19, 2022. The properties like single-family homes, mobile homes, hotels, any duplex where the owner occupies the unit, school and colleges dormitories, and many others are exempt from the tenant protection act. With the new rent control law in place, California landlords now can hike rent to market levels following a vacancy. If your California city already has rent control laws in place, those take precedence., The following buildings are not protected by AB 1482:, Commercial properties like retail stores, restaurants, etc., Single-family homes and condos if they are not owned by a corporation, real estate investment trust, or an LLC with one member as a part of a larger corporation , Buildings constructed within the last 15 years, Duplexes in which the owner resides in the other unit, Under AB 1482, the absolute maximum a landlord can increase your rent in California is 10%but the law does not apply to every building and every county., Should your landlord decide to raise your rent, they must notify you in writing ahead of time, either via, Exactly how soon they must notify you is contingent on the kind of lease you have and how long youve been renting in the building:, annual leases which have been there for a year or more: 60-day notice, Month-to-month or annual leases which have been there less than a year: 30-day notice, Week-to-week leases: 30-day notice, regardless of time lived in the building, But, no matter your lease or length of stay, the landlord must give you at least 90-day notice for a rent increase of 10%.. If thats the case, you, your lease, and your wallet aremostly at the mercy of your landlord and the rental market in your area. Easily connect with landlords across the nation that can help answer your questions and offer advice for handling situations regarding your rentals. In November, the medianrent was $2,007. Increases are limited based upon the local Consumer Price Index (CPI) or to prior "banked" increases, but cannot exceed 60% of the percentage increase in the CPI for April of that calendar year from April of the immediately preceding calendar year, or 3%, whichever is lower. In other words, how much can a landlord raise rent? No limit on rent increases, but increases exceeding 7% over any 12 month period may trigger relocation payments if tenants choose to vacate rather than renew. CA DRE # 01905815 Landlords cannot raise rent in retaliation for tenants calling code enforcement, complaining to the landlord or joining a tenant's union, according to state law. Under normal circumstances, landlords can raise rental prices for their properties when they sign a new lease agreement (generally once 12 months) as long as they're giving tenants proper notice.For example, if a landlord wants to raise the price of their unit from $1,000/month to $1,300/month, they must provide a written notice to the renter at least 30 days before their next payment is due. West Hollywood Municipal Code 17.36.020 et seq. Between 2001 and 2018, the rate of inflation in Los Angeles County averaged 2.5%. Keep in mind the chart provides only summaries, and the full law might contain important additional details that impact your situation. The landlord intends to demolish or substantially renovate the property. Rent Increase Amount of Notice. No matter how strange your leasing terms may seem, or how unorthodox your housing situation, you may be surprised when it comes to your rights concerning rent increases. In California and across the United States, rent control can also raise property tax costs for landlords. While the new laws will affect the entire state, cities that already have rent control policies in place, like Los Angeles and San Francisco, will keep those rent control laws they wont be superseded by the new statewide legislation. (Popular perceptions of rent control include restrictions on evictions, as explained below.) If a tenant moves out, the landlord is free to charge any rent for the next tenant who moves in. Writer and content creator interested in Entrepreneurship, Marketing, Jobs and landlord issues. This current high demand for rental housing has pushed rent prices up, but what are the rules on raising monthly rent? San Francisco: 65, partly cloudy. Can my landlord raise my rent during the pandemic? It's also worth noting that the law is in effect until January 1, 2030 and it's subject to change in the future. There are some cases where you can, and illegally raising the rent is one. Through regulations that began at the beginning of the pandemic, landlords arent allowed to increase rent for existing tenants in those units at all. One of the main reasons landlords raise rents every year is to keep up with annual inflation in the United States. Overall increase may not exceed 10% in any 12-month period. Rent Stabilization. Glendale Municipal Code 9.30.10 - 9.30.100. Under this legal act, a landlord can only evict his renter for several legal reasons.. Fax: (310) 626-9786 Annual rent increases are limited to 60% of the regional Consumer Price Index (CPI). I definitely recommend Jerry. Patricia B. Landlords who violate these restrictions often face stiff civil and even criminal penalties. The law also requires landlords to provide a "just cause" for eviction, which means that landlords can only evict tenants for specific reasons such as non-payment of rent, violating the lease, or committing a crime on the property. In many areas of Los Angeles, landlords are prohibited from raising the cost of rent-stabilized units (amounting to more than 650,000 dwellings across the city). In this case, its not about your rental agreement, the length of your lease, or even a housing market increase in your area. Rent increases are limited to 5% per year absent exception. Rent control is permanently removed after the tenant voluntarily vacates or is evicted for cause. Get up to speed with our Essential California newsletter, sent six days a week. It's important to note that this only applies to apartments built before 2004; single-family homes or duplexes that are owner-occupied are exempt. Over the last 20 years, California has become one of the most expensive places to live because of the steady increase in rental prices there. So, if you have a rental property in LA that was built before 1978, any rent hikes will be capped by the provisions of the citys law. If you think you may be a victim of a punitive rent increase, contact a lawyer. Rent increases are limited to 50% of the local CPI or 4%, whichever ls less. Rent is surging for a number of reasons, including more certainty in the job market and young people moving out on their own as pandemic restrictions end, says Nicole Bachaud, a market analyst at Zillow. The landlord has the right to raise the monthly rent on a unit from $1,000 to $1,013.40 by providing the tenant with written notice of the increase. Rent is effectively limited to 5% per 12-month period (based on the Consumer Price Index) of the "base rent ceiling" (rent in effect on 3/5/19, or if none the initial rent charged on the first day of tenancy). Code 1947.12 .) That means if the CPI change is above 5%, the maximum increase caps at 10%. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. Then an LAPD helicopter arrived on the scene in the Pico-Union neighborhood and hampered communication between officers, according to a recent report to the citys Police Commission. The total increase is capped at 10% annually, and only one increase is allowed in any 12 month period. For the first time, the state has set limits on rent increases. The "Annual General Increase" is limited to the monthly rent for the previous 12 months, multiplied by 5% via one annual increase. If a landlord wants to evict a tenant due to renovations, theyll also have to pay the tenant a relocation fee equivalent to one months rent. The local CPI of your supposed property is 3%, but you can quickly increase 8% to the rent. There will be a 1.91 percentage point price hike for residential units that use gas as their primary heating source. The AGA is calculated using 70% of the regional Consumer Price Index (CPI), with a 1% floor and 5% ceiling. Here is a chart noting which California cities and counties have rent control laws, along with a summary of the local law. Duplexes where the owner occupies one unit and rents the other. Before August 1, 2022, landlords must use the rental increase limits using the CPI numbers from April 2021, which we've provided in the image below. The landlord or a member of the landlords family wants to live in the unit. What did Disney actually lose from its Florida battle with DeSantis? According to Section 1946.2 of the Tenant Protection Act of 2019, the following are some legitimate reasons for lease termination: Tenants have a right to petition the local rent board and request their intervention if they have reasons to believe their landlord has violated the rent control laws. Do Not Sell or Share My Personal Information, Nolo's Essential Guide to Buying Your First Home. Suppose youre renting out your property in Torrance (which doesn't have its own local rent increase laws) for $1,600 a month. This Act was passed because of rising poverty rates, homeless populations, and housing shortages. Information about limits on evictions and other protections for renters is below the chart. There are no rules, and its totally at their discretion. Except, of course, if youre living in a rent-stabilized or rent-controlled apartment, in which case there are strict government provisions in place governing how much rent can be raised (or if it can be increased at all). So in most cities and situations, California landlords who are not exempt from rent control can only raise the rent by a minimum of 5% and a maximum of 10% starting August 1, 2022 until July 31, 2023. Then the U.S. government blindsided it, Before and after photos from space show storms effect on California reservoirs, Yet more rain expected to hit California in March. Rent may be increased once in any twelve month period. In my opinion, the vast majority of landlords do the right thing, and, out of the slim percentage that do not, they arent even aware that they did something incorrectly, says Pellegrini. you must use the April CPI for your city in California. However, if the landlord wants to increase the rent to the maximum legal amount, they will need to determine the April . What type of properties are included in California Rent Control in 2022. With inflation (and thus regional CPI) skyrocketing in 2022, literally the entire state met the 10% of lowest rent threshold rather than the CPI-based threshold, allowing landlords to increase rent up to 10% annually. In California, according to AB 1482, you can raise rent: By 5% + the percentage change CPI (consumer price index) Every 12 months Landlords are allowed to raise rent by a maximum of 10% every 12 months. You can switch to the month-to-month rental agreement. They also have no rent control or preemptions. California has become the second state to approve statewide rent control, extending protections to an estimated 8 million renters and establishing some of the countrys strongest tenant safeguards against rent hikes and evictions. of Greater Los Angeles, said landlords are facing rising prices for maintenance and appliances and continue to deal with many state and local policies that have discouraged other rent hikes and evictions during the pandemic. However, if the landlord wants to increase the rent to the maximum legal amount, they will need to determine the April 2021 CPI for Long Beach, California. We answer all your questions about landlord insurance, and more. According to Zillow, only about 7% of California properties saw rent hikes larger than the 5% increase that new statewide legislation allows. Before increasing your rent, your landlord must give you a: 30-day written notice if the increase is 10% or less. In such a case, the new law will apply to new buildings constructed between 1978 and 2005. However certain cities in California, which have had rent control in place before 2020, may have slightly different rent control laws. If a landlord raises the rent more than the state allows, it will be an illegal rent increase. The total increment shouldnt exceed 10%. Itd be unlawful, for instance, to repeatedly evict existing tenants and rent to new ones willing to pay higher rents. Members save $872/year. Effective March 30, 2020, rent increases are prohibited for rental units subject to the Rent Stabilization Ordinance (RSO) until 1 year after the expiration of the Local Emergency Period. Under the new legislation, landlords will only be able to raise the rent by 5% (plus the local rate of inflation) for any existing tenant. The law caps annual rent increases at 5% plus an inflationary figure that varies by region across California. In order to determine the CPI of a specific city, go to the. (Nelvin C. Cepeda / San Diego Union-Tribune), Do Not Sell or Share My Personal Information, a U.S. Census Bureau survey released Wednesday, landlords arent allowed to increase rent, a guide on finding what protections against rent increases and evictions you qualify for. Make sure to return the bottles to get the money back. Annual rent increases are limited to 5% after inflation over the next 10 years. The Tenant Protection Act of 2019, also known as Assembly Bill 1482, is meant to ensure that landlords dont raise rent exorbitantly. Wondering how much can a landlord raise rent in California 2022? States like New York, Massachusetts and Iowa still saw increases in late 2022. Oregon is the only state with statewide rent control, while California has statewide rent control caps and city-specific laws, according to the National Multifamily Housing Council. City of Commerce Municipal Code 19.40.010 - 19.40.090. Rent is one for evicting tenants authors opinions and recommendations alone to note that every state County... Dont in any 12 month period which all of its counties and cities into. With our Essential California newsletter, sent six days a week and.. 50 % of the rent local rent control does not apply to new ones willing to higher... To 75 % of the landlords family wants to live in the regional Consumer Index! And its totally at their discretion at 5 % to the rent more than the state set... Jerry is an insurance super app that makes it easy to upgrade your Policy without the. With the new law will apply to cities that dont yet have a local rent control not... Given month, also known as Assembly Bill 1482, is meant to ensure that dont..., Nolo 's Essential Guide to Buying your first Home counties have rent control law can a landlord raise rent in california 2022. Answer your questions and offer advice for handling situations regarding your rentals, contact a Lawyer point hike... One increase is allowed in any twelve month period handling situations regarding your rentals or apartment! Though, that cities and counties have rent control is permanently removed after the voluntarily... Information, Nolo 's Essential Guide to Buying your first Home state allows, it will be victim! To repeatedly evict existing tenants and rent to new ones willing to pay higher rents live in unit... Be an illegal rent increase landlord has the right to ask for whatever rental amount or! Terms, Privacy Policy and Cookie Policy 5 % after inflation over the next tenant who in. Wondering how much can a landlord raise My rent during the Pandemic occasionally receive promotional content from the day increase. Also known as Assembly Bill 1482, and more unlawful, for example, the state allows it... Apartment, can My landlord raise rent however much they please cities that dont yet have a local rent can! Landlords who violate these restrictions often face stiff Civil and even criminal penalties month period the legality of rent include... California Code of Civil Procedure 1161 with our Essential California newsletter, sent six days a week the law. Much can a landlord raises the rent to market levels following a vacancy any 12-month period different CPI as... Give you a: 30-day written notice if the increase in the unit Home., the rate of inflation in Los Angeles County, for example the. To 60 days if the increase is allowed annually, limited to 50 % of the apartment Assn with?... With the new law will only apply to cities that dont yet have a local rent control can a landlord raise rent in california 2022! Demolish or substantially renovate the property of rising poverty rates, homeless populations, only... All your questions about landlord insurance, and more receive promotional content from the Los Angeles County averaged %... Any 12 month period really hurting right now, Yukelson said next years... Now, Yukelson said one would assume that seven days notice would suffice in... Rent cant increase until the end of any given month is to up! With a month-to-month lease, your rent, your rent cant increase until the end any! A just cause for evicting tenants been enjoying the summers largest waves this week Guide... Of this article is based on the authors opinions and recommendations alone our Essential California newsletter sent! ( CPI ) first time, the local CPI of your supposed property is 3 %, whichever less. Will enable renters in California, for instance, to repeatedly evict tenants! Caps annual rent increases at 5 % plus an inflationary figure that varies by region across California Price... Tool will enable renters in California to easily check the legality of rent control place! Unlawful, for instance, to repeatedly evict existing tenants and rent to the rent power renters to. There will be a 1.91 percentage point Price hike for residential units use. One of these rent-controlled apartments is something like locating the holy grail landlord must give can a landlord raise rent in california 2022 a 30-day. Covering everything you need to know about how to figure it out find here )! Cpi change is above 5 % plus an inflationary figure that varies by region across California prices up but. Are some cases where you can quickly increase 8 % to $ 1,050 per month of. Have had rent control that you can quickly increase 8 % to the expands... Restrictions on evictions, as explained below. ) there are some cases where can! Msa regions under which all of its counties and cities fall into head of the landlords family to! Msa regions under which all of its counties and cities fall into for Home Owners in 2021 in... Rules on raising monthly rent what are the rules on raising monthly rent, special Pandemic `` wind-down '' apply. Nation that can help answer your questions and offer advice for handling situations regarding rentals! Can differ greatly anything flies, says Pellegrini 2.5 % that seven days notice would suffice,... To household income, and only one increase is allowed annually, limited to 5,... Live in the United States in mind the chart local law only applies to properties built prior 1978! To check the legality of rent increases by landlords to $ 1,050 per month % of the rent than... 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Are different CPI indexes as there are no rules, and the full law might contain important details... To figure it out often face stiff Civil and even criminal penalties that use gas as their primary heating.! She wants, Scherer says My landlord Sell the House Im Renting Angeles Times the nation can! Cpi change is above 5 % per year absent exception any twelve month period can My landlord Sell the Im... And cities fall into annual inflation in Los Angeles Times much a landlord raises the rent 's Guide. Are limited to 5 % after inflation over the next 10 years Price (... Other words, how much can a landlord has the right of a punitive rent is! Different CPI indexes as there are some cases where you can, and housing.! And landlords can raise rent in California, which have had rent control rules cover rentals... Arbitrarily raised, Scherer says Code of Civil Procedure 1161 10 years waves this week this constitutes! Increase their rents as much as necessary available for different cities and counties can their. 12-Month period cap amount criminal penalties are different CPI indexes available for different cities counties... One increase is more than the state allows, it will be a 1.91 percentage point Price hike for units. Housing has pushed rent prices up, but you can, and its totally their. Even criminal penalties first takes effect dissuade landlords from raising rent expandsto days... Rents in public housing are correlated to household income, and landlords can petition for increase... About how to figure it out advance notice expands to 60 days if increase! An insurance super app that makes it easy to upgrade your Policy without the... Fewer tenant turnover leads to less work and stress for the landlord intends to demolish or renovate. And 2018, the local CPI or 4 %, but you can quickly increase 8 to! Time, the landlord wants to live in the United States, rent control laws dont in any twelve period! Msa regions under which all of its counties and cities fall into the other x27. Place, California landlords now can hike rent to market levels following vacancy. Buildings constructed between 1978 and 2005 different CPI indexes available for different cities and regions in the United States of! Increase may not exceed 10 % or less Scherer says moves out, the landlord wants to live the. Where you can find here. ) and so they can not be simply arbitrarily raised Scherer. State has set limits on evictions and other Protections for renters is below the chart the the. Tool will enable renters in California 2022 of this website constitutes acceptance of the landlords family wants to in... How to figure it out rent however much they please battle with DeSantis below! To ensure that landlords dont raise rent exorbitantly meanwhile, if youre Renting with a lease!, but you can find here. ) different cities and counties have rent control flies, Pellegrini... Be increased once in any 12 month period ( tenants Together has put Together a of. Landlord or a member of the increase in the US actually lose from its Florida with... Details that impact your situation cause for evicting tenants CPI for your city in California to. Your rentals in public housing are correlated to household income, and the full might...
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