Mill Creek Apartments $1M Milpitas Rent Settlement — Paid Automatically

What Changed Recently?

Equity Residential agreed to pay $1,000,000 to settle Kachadoorian v. Equity Residential Management, L.L.C., et al., Case No. 25CV460326, in the Superior Court of California for Santa Clara County. The lawsuit claims Equity and the property’s on-site management did not follow the Milpitas Rent Review Ordinance at Mill Creek Apartments, including by not giving tenants required notices of their rights or written explanations for rent increases over 5%. Equity denies doing anything wrong.

The parties reached the settlement after two mediation sessions in spring 2026 and signed the agreement on June 22, 2026. The court granted preliminary approval in September 2026, and notices went to tenants by email.

Who Qualifies?

The class covers people who signed a lease with Equity at Mill Creek Apartments in Milpitas and either received or responded to a rent renewal notice between March 4, 2021 and June 22, 2026, or had a rent increase that took effect between March 4, 2021 and May 2, 2023. The court order puts the class at 671 people.

How Much Can You Get?

After deductions, about $627,000 is expected to go to tenants. The deductions are attorneys’ fees of up to one-third of the fund ($333,333), up to $30,000 in litigation expenses, up to $25,000 for administration and a $15,000 service award to the tenant who brought the case. No money goes back to Equity.

The net fund is split among three groups, and a tenant in more than one group receives each group’s payment. The court order gives these figures:

• Ordinance group (99 tenants with a qualifying renewal event between March 4 and early May 2023): about one month’s rent each, averaging about $2,877.27

• Notice group (670 tenants who may not have received all required notices between March 4, 2021 and May 2, 2023): $100 each

• Restitution group (362 tenants with a renewal notice by May 2, 2023 and a matching rent increase through June 22, 2026): about $760.08 on average

A tenant in all three groups is estimated to receive about $3,737.35 on average. These are estimates; final amounts depend on the fees and costs the court approves. Each tenant’s notice says which groups Equity’s records place them in.

The settlement also requires Equity to state the reason for a rent increase in notices issued under the Milpitas ordinance, in the same language as the rest of the notice. Any unclaimed money goes to the California State Bar’s Greg E. Knoll Justice Gap Fund.

What Proof or Notice ID Is Required?

None to be paid. Payment goes automatically to the PayPal account tied to the email address Equity has on file. Tenants who would rather be paid by Venmo or paper check make that choice on the settlement website, which asks for the CPT ID and Passcode printed on the notice. If PayPal is not claimed within 60 days, the payment moves to Venmo, and if that is not claimed within another 60 days it goes to the Justice Gap Fund.

What Is the Deadline?

December 14, 2026 is the deadline to opt out, to object and to choose Venmo or a check instead of PayPal. There is no claim deadline because there is no claim form.

How Do You Take Action?

Class members who want to be paid by PayPal do nothing. Payment-method elections, opt-out instructions and court documents are on the Mill Creek Apartment Settlement website, run by CPT Group, Inc. Tenants unsure whether they are in the class can contact the administrator through that site.