1 STAFF REPORT
DATE: January 30, 2024
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA: Simone McFarland, Assistant Community Development Director, Housing and Economic Development
BY: Maribel Leyland, Housing Authority Manager
SUBJECT: Update on the Landlord and Tenant Ad Hoc Roundtable Meeting and Direction Regarding the Proposed Solutions
RECOMMENDATION
1. Note and file this summary report for the Landlord Tenant Ad Hoc Roundtable Meeting held on January 18, 2024.
2. Provide direction on analyzing the supported solutions for the second step report.
BACKGROUND
At the Council Meeting on January 31, 2023, staff presented a first step report on information related to tenant protections and rent control, including Measure RC and the Burbank Just Cause Eviction and Regulation Measure on the November 2020 ballot that failed with 63.79% of voters voting “no”. Staff also presented current tenant protections in place through Assembly Bill (AB) 1482, also known as the California Tenant Protection Act, that went into effect on January 1, 2020. The Council direction that evening included a Study Session on AB 1482 and a second step report on tenant protections that includes data on V acancy Rates , t he role of the Landlord Tenant Commission, successful strategies in other cities (including programs, policies, education, outreach, and other programmatic components), and a plan for community meetings that would follow the second step report.
The AB 1482 Study Session was held on August 8, 2023. The presentation was given by Karen M. Tiedemann, a partner with Goldfarb Lipman Attorneys, an experienced firm with an emphasis of practice in community economic development, real estate transactions, affordable housing, nonprofit organization , and environment al law. Ms. Tiedemann provided an overview of AB 1482 and policy options to C ouncil to begin the discussion
COMMUNITY
DEVELOPMENT
2 on a possible local tenant protection ordinance that could promote tenant stability and increase rental market stability. The options were built upon AB 1482 as well as additional supplemental measures to be considered such as anti -discrimination and retaliation provisions that were discussed by the Council.
At the end of the study session, Council provided short -term, medium-term, and long- term direction to staff on the next steps. The short-term direction is to develop an Urgency Tenant Protection Ordinance to provide further protections beyond what is included in AB 1482 for two areas: 1) address just cause evictions for “substantial renovations”; and 2) additional relocation assistance beyond the one month required by state law . O n September 12, 2023, Council approved Urgency Ordinance No. 23-3999, prohibiting the termination of certain residential tenancies without “Just Cause” in the City of Burbank and increasing the relocation assistance for certain terminations (Attachment 1). The ordinance is posted on the City’s website and staff has been working with the Landlord Tenant Commission to educate the community on the requirements of the Urgency Ordinance.
The medium-term direction is to return with a second step report that addresses options for tenant projections through a comparison of local ordinances . The long-term direction is to return with a proposal on the purview , limitations and assistance provided by the Landlord Tenant Commission. In addition, Council Member Mullins asked for landlords and tenants to hold an Ad Hoc meeting to develop solutions to the several concerns raised during the study session. She encouraged both landlords and tenants to “sit at the table” and have a dialogue to develop results and solutions that have not yet been identified.
Vice Mayor Perez and Council Member Takahashi were assigned to an Ad Hoc group to meet with invited landlords and tenants . This report summarizes the discussion and feedback of that Ad Hoc meeting.
DISCUSSION
The “Landlord-Tenant Roundtable Small Group Discussion” (Ad Hoc Group) was held on Thursday, January 18, 2024. Selected by Vice Mayor Perez and Council Member Takahashi, five tenant and five landlord representatives were invited to participate in discussion on potential solutions and ideas in several areas including evictions, rent and cost increases, and landlord and tenant responsibilities. Vice Mayor Perez and Council Member Takahashi observed and listened to the discussion. Three members of the public, who were not part of the invited Ad Hoc Group, attended and listened, but did not participate. The selected landlords and tenants were divided into two groups , with a mix of landlords and tenants in each group. These groups participated in three exercises facilitated by staff as summarized below. Groups were rearranged for the second exercise to provide all participants an opportunity to share their opinions with different participants.
The final exercise focused on prioritizing solutions and provided all participants an opportunity to voice individual opinions as summarized later in the report.
Exercise No. 1 – Concerns for both Landlords and Tenants The first exercise was the opportunity to voice and develop a set of concerns (Attachment 2). Both groups raised concerns during the discussion with overlapping themes. Staff has summarized these five overlapping themes for purposes of this report i n no order of priority. These five themes could be utilized in a future implementation plan. 3 Summary of Concerns in five themes:
1) Enforcement of laws and fairness in process and eviction of long-term tenants (No-Fault Evictions).
2) Corporate housing in-lieu of “Mom and Pop” landlords. 3) High rent increases and balancing rent stability (tenants) and costs (landlords). 4) Education needed on landlord and tenant responsibilities and resources; and 5) Lack of communication between landlords and tenants.
It is important to note that groups only had 30 minutes for this exercise and were asked to prioritize concerns to report on only five concerns even if more than five concerns were identified during the discussion. Therefore, there are likely more concerns that were not voiced during the discussion. As the community outreach process continues for the proposed second step report, additional concerns and solutions may be identified.
Exercise No. 2 – Possible Solutions to Concerns
In the second exercise, t he groups were asked to brainstorm creative solutions without considering feasibility of the solutions. This exercise generated more discussion than the previous exercise as there were several conflicting ideas group members did not all agree on. A list of the solutions as stated by the groups is attached (Attachment 3) . The summary below highlight s some of the solutions for each concern identified in the first exercise (similar solutions were combined and in some cases a solution was recategorized). Solutions that may not be legally possible were not included in the summary.
1) Concern: Enforcement of laws and fairness in process and eviction of l ong-term tenants (No-Fault Evictions)
Proposed Solutions:
a. A ccess to information and education on laws for both landlords and tenants. b. R educe complexity of laws.
c. Carve out rules for government orders (clarity and transparency to both parties). d. Letter of enforcement from City Attorney’s office for non-compliance with laws. e. Addendum to lease with a summary of tenant’s rights and responsibilities with supplemental resource sheets.
f. Payment for relocation regarding renovation.
g. Disallow eviction for substantial remodel.
h. Provide “right to return” after renovation.
i. More time to leave (four months) and more money to leave (three months fair market rent).
j. Require a penalty of perjury form (example: for owner move-in).
2) Concern: Corporate housing in-lieu of “Mom and Pop” landlords Proposed Solutions:
a. Require a license to become a housing provider in the City. b. Incentivize smaller landlords to keep their properties. c. Expansion of Burbank Housing Corporation development. 4 d. Create land trusts or co-operative housing options. e. Extension of AB 1482 or local laws to corporate owned properties (differentiate “Mom and Pop” landlords).
3) Concern: High Rent Increases; Balancing rent stability (tenants) and costs (landlords) Proposed Solutions:
a. Increase housing supply especially affordable housing. b. City to provide resources for tenants who qualify for subsidized rent. c. Provide an emergency rent/assistance fund.
d. Rent cap at 2% a year.
e. Possible rent board.
f. Capping rent increase with vacancy de-control.
g. Petition process to approve rent increase above an approved rent cap.
4) Concern: Education needed on landlord and tenant responsibilities and resources Proposed Solutions:
a. Q ualified staff to provide answers to landlords and tenants. b. City to have orientation & videos to provide comprehensive information on legal rights.
c. Educating landlords and tenants regarding programs and policies.
5) Concern: Lack of communication between landlords and tenants Proposed Solutions:
a. Hire qualified City staff or a system to mediate between landlords and tenants. b. Strengthen Landlord Tenant Commission with a licensed mediator.
Exercise No. 3 – Prioritizing Solutions
Since feasibility was not a consideration during the solution identification process, th e third exercise was to identify those solutions that could be prioritized as feasible and most impactful. However, after a lengthy discussion on feasibility versus impact and the group’s concern with knowledge in those areas, the group decided to vote on the listed solutions indicating their support of or opposition to a solution. While a complete list of responses is included (Attachment 4), the list below s ummarizes the proposed solutions that received “support votes,” and did not receive any “oppose” votes.
1. A ccess to information and education on laws for both landlords and tenants.
2. Reduce complexity of laws (City to provide comprehensive information to landlords and tenants with pamphlets).
3. Carve out rules for government orders (clarity and transparency to both parties).
4. Letter of enforcement from City Attorney’s office for non-compliance with laws.
5. Addendum to lease with a summary of tenant’s rights and responsibilities with supplemental resource sheets.
6. Payment for relocation regarding renovation.
7. Provide right to return after renovation.
8. Require a penalty of perjury form (example: for owner move-in).
9. Expansion of Burbank Housing Corporation development.
10. Increase housing supply; especially affordable housing.
11. City to provide resources for tenants who qualify for subsidized rent. 5 12. Qualified staff to provide answers to landlords and tenants.
13. Educating landlords and tenants regarding programs and policies.
14. Hire qualified city staff or a system to mediate between landlords and tenants.
While these proposed solutions did not receive an “oppose” vote, not all solutions were equally supported. In other words, some solutions received two “votes of support” while others received six or more “votes of support.” Critical to the next phase of the process will be analyzing the legality, feasibility, and impact of these supported solutions, as well as additional direction provided by the Council.
Next Steps
As directed by Council, the feedback received during the Ad Hoc Group meeting will be utilized for the development of a proposed Tenant Protection Ordinance. The next step is to present the second step report that addresses options for tenant projections through a comparison of local ordinances, information on the Ad Hoc Group recommended solutions, and a proposed implementation plan.
As staff proceeds with the development of a proposed Tenant Protection Ordinance, information will be posted on the City’s website for the public to access information on the City’s progress; announcements made during Council meetings inviting members of t he public to participate in public meetings; and community outreach efforts from staff utilizing a variety of platforms including social and print media to invite community members to participate in the process.
ENVIRONMENTAL ASSESSMENT
This report is not subject to the California Environmental Quality Act (CEQA) under State CEQA Guidelines Section 15060(c)(2), in that the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment, and is further and independently exempt from the CEQA under State CEQA Guidelines Section 15061(b)(3), in that it can be seen with certainty there is no possibility the activity will have a significant effect on the environment. This report to Council summarizing the discussion on Landlord Tenant Ad Hoc Roundtable Meeting held on January 18, 2024, is statutorily exempt from review under the CEQA because it is a feasibility or planning study for possible future actions that have not yet been adopted or approved (CEQA Guidelines, Section 15262).
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund with this report.
CONCLUSION
The Ad Hoc Group was asked to participate in a discussion on potential solutions and ideas in several areas including evictions, rent and cost increases , along with landlord and tenant responsibilities. The meeting attendees collaborated with each other to develop possible solutions as outlined in this report. While attendees were informed that these solutions may not be adopted, it gave an opportunity for both landlords and tenants to hear both sides and hopefully, bring some clarity on housing issues and concerns to be addressed in a future second step report for a proposed Tenant Protection Ordinance.
Staff recommends the “supported” solutions outlined in this report be analyzed for legality, 6 feasibility, and impact. Staff will include the supported solutions presented during the Ad Hoc Group meeting held on January 18, 2024, for consideration with the second step report and a proposed implementation plan.
ATTACHMENT
Attachment 1 – Ordinance No. 23-3,999 Tenant Protections Attachment 2 – Concerns for both Landlords and Tenants
Attachment 3 – Proposed Solutions to Concerns
Attachment 4 – Summary of Support and Opposition to Solutions