B0785-0001\2652659v1.doc
AGENDA REPORT
Meeting Date: May 10, 2022
Item Number:
To: Honorable Mayor & City Council
From: Laurence S. Wiener, City Attorney
Subject: AN ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING ORDINANCE NO. 20-O-2818 IN CONNECTION WITH EMERGENCY
REGULATIONS RELATED TO RESIDENTIAL TENANT EVICTIONS
AND PROTECTIONS
Attachments: 1. Ordinance
RECOMMENDATION
It is recommended that the City Council move to waive the full reading and adopt the ordinance entitled: “AN ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING ORDINANCE NO. 20-O-2818 IN CONNECTION WITH EMERGENCY REGULATIONS RELATED TO RESIDENTIAL TENANT EVICTIONS AND PROTECTIONS.”
INTRODUCTION
This ordinance ends the eviction and rent increase moratoriums on May 31, 2022, and establishes May 31, 2023 as the end of the repayment period for COVID-19 back rent. The ordinance also establishes the maximum allowable rent increase following the end of the moratorium for the period June 1, 2022 through June 30, 2023.
DISCUSSION
At its meeting of April 12, 2022, the City Council introduced this ordinance. Subsequent to the meeting, staff identified several ambiguities in the ordinance that could potentially be interpreted differently than Council’s intent. Accordingly, an amended ordinance was reintroduced for first reading at the City Council meeting held on April 26, 2022. At that meeting, the City Council made further changes to the ordinance. These changes specified that for an allowable rent increase, that for any reason, was not imposed or was imposed at a rate of less than 3.10% for the period July 1, 2019 through June 30, 2020, the maximum allowable rent increase allowed pursuant to Beverly Hills Municipal Code Sections 4-5-303 (C) and 4-6-3 from June 1, 2022 through June 30, 2023 is 3.10%. Provided, further, if the rent increase was imposed at a rate of less than 3.10%, then the maximum allowable rent increase from June 1, 2022 through June 30, 2023 shall be reduced by the percent increase that was not imposed.
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Meeting Date: May 10, 2022
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These changes have now been incorporated into the ordinance being presented to the City Council for adoption.
FISCAL IMPACT
The revisions to the ordinance are unlikely to cause a greater fiscal impact to the City than the Urgency Ordinance, except that the fiscal impact will depend upon whether housing providers will file an inordinate amount of rent increase applications with the City.
Laurence S. Wiener
City Attorney
Approved By
Attachment 1
ORDINANCE NO. 22-0-
AN ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDINGORDINANCE NO. 20-0-28 18 IN CONNECTION WITH EMERGENCY
REGULATIONS RELATED TO RESIDENTIAL TENANT EVICTIONS
AND PROTECTIONS
THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:
WHEREAS, on March 15, 2020, the City Manager, in his role as the Director of Emergency Services, proclaimed the existence of a local emergency pursuant to Section 2-4-107ofthe Beverly Hills Municipal Code to ensure the availability of mutual aid and an effective Cityresponse to the novel coronavirus (“COVID-19”) and that state of emergency was ratified by theCity Council on March 16, 2020; and WHEREAS, as a result of the COVID-19 pandemic, many tenants in Beverly Hills experienced economic impacts, leaving tenants vulnerable to eviction; and WHEREAS, during the local emergency, and in the interest of protecting the public health and preventing transmission of COVID-19, it has been essential to avoid unnecessary housingdisplacement, to protect the City’s affordable housing stock, and to prevent housed individuals fromfalling into homelessness; and WHEREAS, in the interest of public peace, health and safety, as affected by the emergency caused by the spread of COVID-19, it has been necessaiy for the City Council to exercise its authorityto issue regulations related to the protection of the public peace, health or safety; and WHEREAS, pursuant to Ordinance No. 20-0-2805, as superseded from time to time, and the City’s current Ordinance No. 20-0-28 18 (“Ordinance”), the City Council imposed a temporarymoratorium during the period of local emergency on (1) evictions for non-payment of rent by residential tenants substantially impacted by the COVID-19 crisis; (2) no-fault evictions, unless necessary for the health and safety of tenants, neighbors, or the landlord, other than based on illnessof the tenant or any other occupant of the residential rental unit; and (3) the annual rent increasesauthorized by Sections 4-5-303(C) and 4-6-3 of the Beverly Hills Municipal Code with respect to anyrent increase scheduled to take effect on or after March 15, 2020; provided that nothing in theOrdinance shall alter the date of annual rent increases in future years; and WHEREAS, the Ordinance provides that nothing in the Ordinance relieves a tenant of liability for the unpaid rent, which the landlord may seek after the expiration ofthe local emergency, and which the tenant must pay in full within one year of the expiration of the local emergency; and WHEREAS, the City Council requested the Rent Stabilization Commission to make i-ecommendations to the City Council regarding possible amendments to the Ordinance related to theresidential moratoriums and pursuant to motions made on August 4, 2021 and September 13, 2021, asmemorialized its Resolution RSC 9, adopted on October 6, 2021, the Commission recommended that the City Council end the moratoriums on September 30, 2021 and require tenants to pay back rent in full within one year of the end of the moratoriums; and B0785-0023\2643667v3 .doc
WHEREAS, the City Council has determined to end the temporaly moratoriums prior to the end of the local emergency due to the availability of COVID-19 vaccines and the decline in theCOVID-l9 positivity rates, death rates and hospitalizations.
Section 1. The City Council of the City of Beverly Hills does adopt the recitals and the following amendments to the Ordinance:
A. Section 1 of Ordinance No. 20-0-2818 is hereby amended to read as follows:
“I. A temporary moratorium on eviction for non-payment of rent by residential tenants substantially impacted by the COVID-l9 crisis is imposed as follows:
a. During the period March 15, 2020 through May 3 1, 2022, no landlord shall endeavor to evict a tenant in either of the following situations: (1) for nonpayment of rent if the tenant demonstrates that the tenant is unable to pay rent due to substantial financial impacts related to COVID-19, or (2) for a no-fault eviction, unless necessary for the health and safety of tenants, neighbors, or the landlord, other than based on illness of the tenant or any other occupant of theresidential rental unit. A landlord who receives notice that a tenant cannot pay some or all of therent temporarily for the reasons set forth above shall not serve a notice pursuant to Code of Civil Procedure Section 1161(2), file or prosecute an unlawful detainer action based on a 3-day pay or quit notice, or otherwise seek to evict for nonpayment of rent. A landlord receives notice of a tenant’s inability to pay rent within the meaning of this Ordinance if the tenant, within seven (7) days after the date that rent is due, notifies the landlord in writing, of lost income or extraordinaryexpenses related to COVID-19 and inability to pay full rent due to substantial financial impactsrelated to COVID-19, and within thirty (30) days after the date the rent is due, provides writtendocumentation to the landlord to support the claim, using the form provided by the City. A copy ofboth the seven-day notice and the documentation to support the claim shall also be provided by email(or if email is not feasible by mail along with notification by telephone) to the City’s Rent Stabilization office. For purposes of this Ordinance, “in writing” includes email or text communications to a landlord or the landlord’s representative ifthat is the method of written communication that has been used previously, or correspondence by regular mail, if that is the method of written communication that has been used previously and the parties have not agreed to use email or text messaging. Any medical or financial information provided to the landlord shall be held in confidence, and shall beused only for evaluating the tenant’s claim. b. Nothing in this Ordinance shall relieve the tenant of liability for the unpaid rent, which the tenant must pay in full by May 31, 2023. After May 31, 2023, unless if the rent is paid in full, a landlord may charge or collect a late fee for rent that is delayed for the reasons stated in this Ordinance; or a landlord may seek rent that is delayed for the reasons stated in this Ordinance through the eviction or other appropriate legal process. No fee for the late payment of such unpaid rent shall be charged by a landlord during the period March 15, 2020 through May 31,2023. If a landlord makes an accommodation with respect to rent forbearance from a tenant pursuant to subsection I. a, and the tenant is in conformance with the tenant’s obligations under that subsection,then the landlord shall not make a negative report to a credit bureau so long as the tenant remains in compliance with those obligations.
c. For purposes of this Section 1, “financial impacts related to COVID 19” include, but are not limited to, lost household income or extraordinary expenses as a result of any of the following: (I) being sick with COVID-19, or caring for a household or family member who issick with COVID-19; (2) lay-off, loss of hours, or other substantial income reduction resulting from business closure or other economic or employer impacts of COVID-l9 including for tenants who are salaried employees or self-employed; (3) compliance with a recommendation from a government B0785-0023\2643667v3.doc
health authority to stay home, self-quarantine, or avoid congregating with others during the state of emergency; (4) extraordinary out-of-pocket medical expenses related to COVID-19; or (5) childcare needs arising from school closures related to COVID-19. d. For purposes of this Ordinance, “no-fault eviction” refers to any eviction for which the notice to terminate tenancy is not based on alleged fault by the tenant, including but not limited to, eviction notices served pursuant to Code of Civil Procedure sections 1161(1), 1161(5), or I 161b, use by landlord or relatives as specified in Beverly Hills Municipal Code Chapters 5 and 6, demolition or condominium conversion, major remodeling, and the Ellis Act, which is called withdrawal of residential rental structure from the rental market in theBeverly Hills Municipal Code. e. During the period March 15, 2020 through May 31, 2022, any notice served by a landlord on a tenant under Section 4-5-5 13 or Section 4-6-6 L of the Beverly HillsMunicipal Code is hereby tolled. f. This Ordinance applies to nonpayment eviction notices, no-fault eviction notices, and unlawful detainer actions based on such notices, served or filed on or after thedate on which a local emergency was proclaimed on March 15, 2020. g. For purposes of this Section 1, “substantial” shall be defined as a material decrease of monthly income, the incurring of extraordinary expenses related to COVID-19, or any other circumstance which causes an unusual and significant financial impact on the tenant. h. Because some tenants may not be aware of this Ordinance’s provisions, the Deputy Director of the Rent Stabilization may extend the seven (7) day deadline for notifying the landlord for up to thirty (30) days.
2. If a landlord disagrees with the residential tenant’s assertion regarding: (I) whether a substantial financial impact exists; (2) whether the substantial financial impact is relatedto COVID-l9; or (3) the amount of rent that the tenant will pay, then the landlord shall notify thetenant ofthe disagreement in writing within ten (10) days ofreceipt ofthe written documentation fromthe tenant. The residential tenant may file a written appeal to the City, on a form provided by the City, within ten (10) days of receipt ofthe landlord’s written determination and shall provide a copyof the appeal to the landlord. Appeals will be heard by the Standing Committee of the City Councilappointed to hear disruptive tenant hearings or other Members of the City Council as designated by the Mayor, to make a final determination of the dispute, until fifteen (15) days after the Rent Stabilization Commission is appointed and sworn into office, in which case the Rent Stabilization Commission shall make a final determination of the dispute. If the Rent Stabilization Commissioncannot render a decision by a majority vote, then the Standing Committee or other Members of the City Council, as designated by the Mayor, will make a final determination of the dispute. Final Decisions of the Subcommittee, Council Members designated by the Mayor, or the Rent Stabilization Commission are subject to judicial review filed pursuant to Section I 094.6 of the California Code ofCivil Procedure. The hearing procedures shall be established by the City Attorney.” B. Section 4 of Ordinance No. 20-0-28 18 is hereby amended to read as follows:
“Section 4. During the period March 15, 2020 through May 3 1, 2022 a temporary moratorium is hereby imposed on the annual rent increases authorized by Sections 4-5-303 (C) and 4-6-3 of the Beverly Hills Municipal Code. Nothing in this Ordinance shall alter the date of annual rent increases in future years; provided, however, that notwithstanding the provisions of Sections 4-5-303 (C) and 4-6-3, for an allowable rent increase, that for any reason, was not imposed or was imposed at arate of less than 3.10% forthe period July 1,2019 through June 30, 2020, the maximum allowable rent B0785-0023\2643 667v3 .doc
increase allowed pursuant to Section 4-5-303 (C) and 4-6-3 from June 1, 2022 through June 30, 2023 is 3.10%. Provided, further, if the rent increase was imposed at a rate of less than 3.10%, then the maximum allowable rent increase from June 1, 2022 through June 30, 2023 shall be reduced by the percent increase that was not imposed.”
Section 2. Uncodified. This Ordinance shall not be codified.Section 3. Severability. If any provision of this Ordinance is held invalid by a court of competent jurisdiction, such provision shall be considered a separate, distinct and independent provision and such holding shall not affect the validity and enforceability ofthe other provisions of this Ordinance.
Section 4. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen(15) days after its passage in accordance with Section 36933 of the Government Code,shall certify to the adoption ofthis Ordinance and shall cause this Ordinance and the City Clerk’scertification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.
Section 5. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 am. on the thirty-first (3 1st) day after its passage.
II’
I/I
I/I
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Section 6. Duration. This Ordinance shall remain in effect until it is superseded by another Ordinance adopted by the City Council.
Adopted:Effective:
LILI BOSSE
Mayor of the City ofBeverly Hills, California
ATTEST:
__________________________(SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
LAURENCE S. WIENER GEORG EZ
City Attorney City Manager
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