Legal Question in Real Estate Law in California

"Organized collusion by owners". if it existed, might be unlawful depending upon its objectives and extent, but would be very difficult and expensive to prove. As to resisting a switch from month-to-month to an annual lease on the basis that the wiring isn't up to code, I think your risk is simply being terminated and evicted. Your knowledge that the wiring is illegal doesn't help your case; that could show a court that you accepted the conditions.