1 STAFF REPORT
DAT
E: October 6, 2020
TO: Ju
stin Hess, City Manager
FR
OM: Patrick Prescott, Community Development Department Director SUBJ
ECT: Review of Elections Code Section 9212 Report on Impacts of an Initiative Ordinance on Rent Stabilization and Tenant Protections
RECOMMENDATION
Note and file.
BACKGROUND
At the August 7, 2020, City Council meeting, City Council received information on Elections Code §9212 Preliminary Report on the potential effects and concerns of the 2020 Burbank Just Cause Eviction and Rent Regulation Measure (Measure RC).
Th
e Measure is on the November 3, 2020, ballot and if approved, would create additional rent control regulations within the City of Burbank. As the City Council had additional questions about the potential effects of Measure RC, they directed staff to return at a later date with a more in-depth report on Measure RC’s effects within the following areas: fiscal, land use, housing, regional housing needs, use of vacant land, business retention and conflicts with the City’s Charter. City Council also directed staff to obtain the services of an outside consultant to write the report. Toward this end, staff engaged Management Partners to prepare the §9212 Report (Attachment 1).
DISCUSSION
Measure RC , if approved, would add a new chapter to the Burbank Municipal Code establishing a rent stabilization program in the City of Burbank. The “Burbank Rent Stabilization and Tenant Protection Act” would add just cause eviction provisions, rent regulations, and a revised Landlord- Tenant Commission with autonomous authority to implement and administer a rent stabilization program.
COMMUNITY
DEVELOPMENT
ATTACHMENT 2
ATTACHMENT 2-1
2 State law allows the City Council to request and receive a report about various impacts of the proposed measure to help inform staff, policy makers and the electorate as they consider the measure . M ajor elements of this measure are listed on pages 14-20 of Attachment 1.
T
he report also includes analysis on impacts on renters and property owners; land use; availability of housing; rental housing development; location of housing; and the City’s ability to meet its Regional Housing needs.
FISCAL IMPACT
While there is no fiscal impact to receiving this report, should Measure RC be approved, the City’s estimated annual operating cost of providing the program proposed by Measure RC is approximately $4,000,000, with a startup cost of at least $1,800,000 for personnel, professional services, software systems, and office space. While the City would be required to provide the startup costs, these may or may not be paid back to the City. The report assumes the basic profile of the City of Burbank is close to the median of the mid- sized rent programs in terms of service population, rental units potentially to be under rent stabilization, and rental units under the provisions of just -cause eviction ordinances.
Detailed information about the budget is contained within the report on pages 21-26.
T
here is no rent stabilization program in the state that operates with what would be considered minimal staffing level or budget. All these programs represent significant policy commitments and require substantive and comprehensive administrative structures to implement and sustain them. The implementation and operating cost are substantial. The full analysis of the fiscal impact is included in the attached report.
CONCLUSION
Staff recommends Council note and file the report. The “Burbank Rent Stabilization and Tenant Protection Act” Measure RC on the November 3 ballot would add just cause eviction provisions, rent regulations, and a revised Landlord- Tenant Commission with autonomous authority to implement and administer a rent stabilization program.
ATTACHMENT
Attachment 1 – California Elections Code Section 9212 Report on Impacts of an “Initiative to Add a New Chapter to the City of Burbank Municipal Code Establishing a Rent Stabilization and Tenant Protection Program in the City” by Management Partners
ATTACHMENT 2-2