STAFF REPORT
Meeting Date: June 18, 2024
To: Honorable Mayor & City Council
From: Ryan Gohlich, Assistant City Manager
Subject: Recommendation of the Commission Standardization Ad Hoc Committee to Sunset the Rent Stabilization Commission
Attachments: 1. Commission Standardization Ad Hoc Committee Report
INTRODUCTION
This report requests that the City Council consider and provide direction regarding the Commission Standardization Ad Hoc Committee’s recommendation to sunset the Rent Stabilization Commission (RSC) and to change the manner in which Disruptive Tenant Applications are considered.
DISCUSSION
In 2019, the City Council adopted an ordinance to establish the RSC. The RSC is charged with making recommendations to the City Council concerning amendments to the Rent Stabilization Ordinance that have not been resolved by the Council, and performing any other functions that may be designated by resolution or motion of the Council.
The City Council charged the RSC with discussing and making recommendations on six specific topics. As detailed in the attached committee report, the RSC met regularly over the past four years to discuss the topics as directed by the Council (Attachment 1). The RSC has concluded its discussions and made recommendations on each of the topics.
Some recommendations have already been implemented and others are pending further consideration by the Liaisons and City Council.
With consideration of these topics completed, the RSC does not currently have specific matters to discuss or business to conduct. The RSC does not serve as a hearing body for any applications, appeals, or processes under the Rent Stabilization Ordinance. The Municipal Code charges a hearing officer with the authority to consider Registered Rent Appeals, Certified Rent Appeals, and Landlord Rent Adjustment Applications; while a City Council subcommittee appointed by the mayor is charged with considering Disruptive Tenant Applications.
On May 14, 2024, the Commission Standardization Ad Hoc Committee (Vice Mayor Nazarian and Councilmember Corman) discussed the RSC’s history, responsibilities, Meeting Date: June 18, 2024
and activities over the past four years. In light of the RSC having completed its discussion of the issues as directed by Council and having no other business to conduct, the committee voted to recommend that the City Council sunset the RSC as having fulfilled its purpose. The committee also noted the recent difficulty in recruiting to fill RSC vacancies and the challenges posed by the RSC’s unique member structure and quorum requirements. As a result of these factors, the RSC will be unable to meet after July 1, 2024, due to inability to achieve a quorum.
In addition to the recommendation to sunset the RSC, the committee recommended that the City Council consider amending the Rent Stabilization Ordinance to change the manner in which Disrputive Tenant Applications are considered. As noted above, such applications are currently considered by a City Council subcommittee appointed by the mayor. Due to the sensitive and personal nature of the testimony and deliberations for a Disruptive Tenant Application, the committee recommended that the applications be considered and decided upon by a hearing officer, consistent with other applications and appeals under the Rent Stabilization Ordinance, rather than by a City Council subcommittee. Staff concurs with this recommendation.
FISCAL IMPACT
Sunsetting the RSC would result in a positive fiscal impact by reducing the staff time, resources, and direct costs associated with the RSC including preparation and distribution of agenda packets, conducting and televising meetings, commissioner recruitment, and general commission administration.
Changing the manner in which Disruptive Tenant Applications are considered would incur the additional cost of paying a hearing officer. However, this cost would be offset by the reduction of staff time, resources, and direct costs associated with conducting a City Council subcommittee meeting including preparation and distribution of agenda packets and conducting and recording the meeting.
RECOMMENDATION
Pursuant to the recommendations of the Commission Standardization Ad Hoc Committee, staff recommends that the City Council direct staff to prepare an ordinance to amend the Beverly Hills Municipal Code to sunset the RSC and to have Disruptive Tenant Applications considered by a hearing officer rather than a City Council subcommittee.
Ryan Gohlich,
Assistant City Manager
Approved By
ATTACHMENT 1
CITY OF BEVERLY HILLS
COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
TO: Commission Standardization Ad Hoc Committee Liaisons FROM: Michael Forbes, Director of Community Development Nestor Otazu, Deputy Director of Rent Stabilization
Cameron Kesinger, Senior Management Analyst
DATE: May 14, 2024
SUBJECT: Overview of Rent Stabilization Commission
INTRODUCTION
This report is intended to provide a brief overview of the Rent Stabilization Commission (RSC) and its activities since its inception in 2019.
BACKGROUND
Between 2016 and 2019, Community Development Department staff and community partners conducted studies, outreach events, and facilitated sessions to seek feedback from the community on potential revisions to the Rent Stabilization Ordinance.
This outreach resulted in a variety of recommendations for revisions to the ordinance. Several of the recommended revisions were approved by the City Council through a series of ordinances, including extending Just Cause Eviction protections for Chapter 6 tenants and revising the calculations for allowable rent increases. The City Council determined that some of the recommended ordinance revisions were best discussed and resolved with the assistance and feedback of a commission that represented the interests of various community stakeholders.
On April 2, 2019, the City Council adopted an ordinance establishing the RSC, comprised of an equal number of landlords, tenants, and at-large residents, to act as an advisory body to the Council on all matters related to the Rent Stabilization Ordinance. Per the Beverly Hills Municipal Code, the RSC has the authority to 1) make recommendations to the City Council concerning amendments to Chapter 5 and 6 of Title 5 that have not been resolved by the City Council and 2) perform any other functions that may be designated by resolution or motion of the City Council.
The City Council charged the RSC with discussing the following topics related to the Rent Stabilization Ordinance:
1. Modification to the Major Remodel eviction category, which permitted tenants to be evicted for certain major remodeling projects meeting a minimum dollar threshold
2. Regulations regarding the Cash for Keys process, through which landlords attempt to negotiate with tenants for a voluntary vacancy arrangement
3. Evaluation of relocation fee amounts where tenants are evicted for any No Fault reason
4. Review of habitability standards and the implementation of a proactive inspection program for every rental unit
5. Review of allowable pass-through surcharges for Chapter 5 and 6 tenants, through which landlords are able to charge tenants for various items including refuse fees and the Rent Stabilization Administration Fee
6. Review of the Landlord Tenant Handbook, which landlords are required to provide to every new tenant at least 24 hours prior to the tenant’s execution of the lease
DISCUSSION
The RSC held its first meeting in June 2020. Over the past four years, the Commission has thoughtfully discussed each of the topics as charged by the Council and has approved resolutions to memorialize its recommendations. One of these recommendations, the modification of the Major Remodel eviction category, was ultimately adopted by the City Council. The Landlord Tenant Handbook was reviewed and revised per the RSC’s recommendations. RSC resolutions that reflect the RSC’s recommendations for the remaining topics have been completed, and the RSC’s recommendations on these topics are pending further consideration by the Liaisons and City Council.
With consideration of these topics as originally directed by the City Council completed, the RSC does not currently have specific matters to discuss or business to conduct. The RSC does not serve as a hearing body for any applications, appeals, or processes of the Rent Stabilization Ordinance. The Municipal Code charges a hearing officer with the authority to consider Registered Rent Appeals, Certified Rent Appeals, and Landlord Rent Adjustment Applications; while a City Council subcommittee appointed by the Mayor is charged with considering Disruptive Tenant Applications.
FISCAL IMPACT
Staff resources are required to support the RSC and its monthly meetings including administering and broadcasting meetings, and preparing meeting agendas and minutes, staff reports, and resolutions.
RECOMMENDATION
Staff recommends the Commission Standardization Liaison Committee provide direction regarding the RSC.