1 STAFF REPORT
DATE: July 16, 2024
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA: Simone McFarland, Assistant Community Development Director, Housing and Economic Development
Maribel Leyland, Housing Authority Manager
Iain MacMillan, Senior Assistant City Attorney
BY: Shipra Rajesh, Housing Development Manager
SUBJECT: Introduction of an Ordinance Modifying Residential Tenant Protections within the City of Burbank
RECOMMENDATION
Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BURBANK, CALIFORNIA, AMENDING CHAPTER 4 (“RESIDENTIAL TENANT PROTECTIONS”) OF TITLE 5 (“POLICE AND PUBLIC SAFETY”) OF THE BURBANK MUNICIPAL CODE,
BY INCREASING RELOCATION ASSISTANCE FOR CERTAIN NO -FAULT
EVICTIONS, ADDING A SMALL LANDLORD EXEMPTION FROM THE RELOCATION
ASSISTANCE PAYMENT OBLIGATION, AND ADDING ANTI-RETALIATION TENANT PROTECTIONS (ATTACHMENT 1).
BACKGROUND
The purpose of this staff report is to introduce an Ordinance modifying residential tenant protections within the City of Burbank, by requiring increased relocation assistance for all forms of no-fault just cause evictions as outlined in California Civil Code § 1946.2, with an exemption from the increased relocation assistance requirement for small “mom and pop” landlords, and to include provisions on anti-retaliation.
A study session on Assembly Bill (AB) 1482, also known as the California Tenant Protection Act (effective January 1, 2020), was presented to Council on August 8, 2023.
At the end of the study session, Council provided short -term, medium-term, and long-
COMMUNITY
DEVELOPMENT
2 term direction1 to staff on next steps. Short-term direction included the development of a Tenant Protection Urgency Ordinance to provide further protections beyond what was included in AB 1482. Subsequently, on 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 3). Further, during the Fiscal Year 2023-2024 budget process, Council approved an appropriation for a Renter Relocation Assistance Interim Program, with limited funds of $500,000, to provide financial assistance to eligible extremely low to moderate-income households who had received a no-fault notice to vacate as of April 1, 2023.2
Medium-term direction was a synopsis of landlord tenant strategies and associated regulations adopted by eight different jurisdictions identified by Council under four categories: Cap on Rent Increases, Tenant Protection Measures, Access to Legal/Professional Resources, and Enforcement Mechanisms. On April 23, 2024, staff presented a synopsis of landlord tenant strategies for eight jurisdictions including the cities of Bell Gardens, Beverly Hills, Claremont, Culver City, Glendale, Long Beach, Pasadena, and Los Angeles County. After deliberation, Council directed staff to introduce an ordinance requiring increased relocation assistance for all forms of no-fault just cause evictions as outlined in California Civil Code § 1946.2, with a n exemption from the increased relocation assistance requirement for “mom and pop” landlords, and to include provisions on anti-retaliation.
Based on Council’s direction, the proposed Ordinance establishes an increase relocation assistance fee for all no-fault just cause evictions, while carving out exceptions for small landlords, and includes provisions on anti-retaliation to strengthen local tenant protection regulations beyond the requirements of state law. Approval of the proposed Ordinance will supersede the existing Urgency Ordinance No. 23- 3,999 by mandating increased relocation assistance for all types of no-fault just cause evictions including evictions due to substantial remodel of a real residential unit. Further, approval of the proposed Ordinance would terminate the Renter Relocation Assistance Interim Program that was approved by Council on June 13, 2023.
DISCUSSION
California Tenant Protection Act (AB 1482)
AB 1482 provided regulations on statewide rent cap and required owners of real residential properties to provide just cause statement to tenants who have continuously and lawfully occupied the unit for 12 months or more. Additionally, the law established
1 The long-term direction is to review the purview, limitations, and assistance provided by the Landlord-Tenant Commission. This is a separate discussion and report as outlined during the Fiscal Year 2024-25 budget study sessions. More information to follow in the coming months.
2 The Renter Relocation Program will end when program funds are exhausted or a permanent tenant protection ordinance with relocation assistance parameters is adopted by Council as proposed this evening. 3 relocation assistance or a rent waiver equal to one month of the tenant’s rent in effect when the owner issued a notice to terminate tenancy for all no-fault just cause evictions.
Further, the law established a statewide rent cap of 5% plus the increase in the Consumer Price Index (CPI), or 10%, whichever is lower3.
Current Local Regulations on Tenant Protections for Burbank On September 12, 2023, Council adopted Urgency Ordinance No. 23- 3,999, that built upon the substantial remodel no-fault just cause eviction provision contained in AB 1482 by including additional requirements for evictions based on intent to demolish or substantially remodel a property that are more restrictive than the provisions of AB 1482.
The Urgency Ordinance established the following additional requirements for no- fault just cause evictions due to substantial remodel of a real residential unit:
i. Prior to terminating tenancy, an owner shall provide the tenant with copies of building permits (for a substantial remodel), demolition permits (for a demolition), and/or any required abatement permits (for abatement of hazardous materials).
ii. A n owner shall provide the tenant with a written detailed account of the scope of work, why the work cannot be reasonably accomplished in a safe manner with the tenant in place, and why the work cannot be completed within 30 days.
iii. T ermination of tenancy based on the owner’s intent to demolish or to substantially remodel the residential real property will trigger an increased relocation assistance fee of three months of the tenant’s rent that was in effect at the time of issuance of notice of termination, beyond the state mandated relocation assistance of one month of the tenant’s rent in effect at the time of issuance of notice of termination.
iv. F ailure to comply provision was included, which states that the notice of termination of a tenancy is void and such failure shall be an affirmative defense to an unlawful detainer action in civil court.
Senate Bill (SB) 567: Update to California Tenant Protection Act SB 567, effective April 1, 2024, amends several provisions in AB 1482 by imposing additional parameters to just cause evictions and expressly providing remedies to tenants for any violations of AB 1482’s just cause eviction and rent cap provisions. One critical change to the law is related to the substantial remodel provision that the Burbank Urgency Ordinance addressed when adopted on September 12, 2023.
Specifically, SB 567 made the following updates.
i. In case of no- fault just cause eviction due to intent to occupy a residential real property by owner’s relatives (California Civil Code § 1946.2(b)(2)(A)): the state
3 Effective August 1, 2024, the rent cap for Tenant Protection Act-covered properties in the LA County area will be 8.9% (5% plus current 3.9% CPI).
4 law requires an owner’s relative to move in within 90 days after a tenant vacates the unit and occupy the unit as their primary residence for 12 consecutive months.
If the intended occupant does not move in within 90 days or does not occupy the unit for a year , then the owner must both offer the unit to the prior tenant at the same rent and lease terms that they had prior to vacating and reimburse the prior tenant for any reasonable moving expenses in returning to their prior unit. Further, the written notice terminating the tenancy shal l contain the names and relationship of relatives and a notification that the tenant may request proof that intended occupant is owner’s relative.
ii. In case of no- fault just cause eviction due to substantial remodel or demolition (California Civil Code § 1946.2(b)(D)): the state law specifies that a qualifying “substantial remodel” must be of a nature that can’t be reasonably accomplished in a safe manner without the tenant vacating the unit for at least 30 consecutive days, and that a tenant is not required to vacate their unit on any days where the tenant could continue living in their unit without violating applicable health, safety, and habitability laws. State law requires an owner of a residential real property to provide notice to tenants informing them of intent to demolish/substantially remodel the unit, a description of the proposed work and approximate expected duration of the work, and that the tenants can re-rent the residential real property with the same rental agreement and rental rate that was in effect at the time the tenant vacated the unit if substantial remodel work or demolition is not commenced or completed. Additionally, the owner is required to provide copies of permits for the proposed substantial remodel or demolition. iii. A uthorizes local government enforcement mechanisms in seeking injunctive relief for any property owner violation of the just cause and/or rent cap provisions contained in California Civil Code §§ 1946.2 and 1947.12, respectively .
Additionally, California Civil Code §§ 1946.2(h) and 1947.12(k) authorize tenants to file a civil action for actual damages, injunctive relief, and reasonable attorney’s fees and costs on just cause eviction and rent cap provisions, respectively.
Proposed Ordinance to Strengthen Local Tenant Protection Regulations During the April 23, 2024, hearing, Council directed staff to expand the scope of Urgency Ordinance No. 23-3,999 to mandate an increased relocation assistance fee for all no- fault just cause evictions , in addition to no -fault just cause eviction due to substantial remodeling of a residential rental unit, while creating an exemption for small “mom & pop” landlords. Additionally, Council directed staff to incorporate local regulations on anti-retaliation. Consistent with the state law, the proposed Ordinance incorporates enforcement mechanisms outlined in SB 567 and includes the following:
i. Increased Relocation Assistance for all No-Fault Just Cause Evictions: The current ordinance mandates a higher relocation assistance fee of three months of the tenant’s rent in effect at the time of issuance of notice of termination, 5 beyond the one- month rent requirement by the state law, for termination of tenancy due to substantial remodel of a real residential unit. With the proposed change, termination of tenancy based on all no-fault just cause evictions in the state law shall trigger an increased relocation assistance fee of three months of the tenant’s rent that was in effect at the time of issuance of notice of termination.
ii. Exception from increased relocation assistance fee: The proposed Ordinance would exempt residential tenancies in a rental complex with four or fewer rental units from the requirement of increased relocation assistance for all no- fault just cause eviction. For the purpose of this section "rental complex" would mean one or more commonly -owned buildings used in whole or in part for residential purposes, located on a single lot, contiguous lots, or lots separated only by a street or alley. However, such tenancies will still be subject to state mandated relocation assistance of one month of the tenant ’s rent in effect at the time of issuance of notice of termination for all no-fault just cause evictions.
Small Landlord Exemption – Jurisdiction Research and Comparison Staff reviewed the current exemptions for small “mom & pop” landlords for five different jurisdictions within the County of Los Angeles. As indicated in Table 1, implementation of such an exemption differs for each jurisdiction based on availability of resources as well as the needs of their community. Table 1 provides an overview of definitions and exemptions for small landlords/residential tenancies for different jurisdictions.
Table 1: Definition and exemptions created for small landlords/residential tenancies Jurisdiction Exception
Glendale Excludes rental units in a rental complex of four units or less on a parcel from the requirement of offering one- year written leases [Glendale Municipal Code (GMC) § 9.30.025(I)].
Claremont Residential tenancies in a building or in a complex of commonly owned buildings with nine or fewer rental units are exempt from requirements of Chapter 8.34 Just Cause Evictions that includes higher relocation assistance for no- fault just cause evictions [Claremont Municipal Code (CMC) § 8.34.010(B)].
Culver City Reduces the relocation fee established by Culver City Municipal Code (CCMC) § 15.09.325 shall be reduced by 50% for a small landlord, only in the case where the no fault termination is based on grounds set forth in CCMC § 15.09.320(B)(1) pertaining to owner’s relative occupying the real residential unit [CCMC § 15.09.325(A)]. - CCMC § 15.09.305 defines small landlord as “A landlord who has no direct or indirect economic interest in more than three rental units located within or outside of Culver City. S mall landlord shall not include any of the following: (i) a real estate investment trust, as defined in § 856 of the Internal Revenue Code; (ii) a corporation; (iii) a limited liability company in which 6 at least one member is, or is controlled by, a corporation; or (iv) a partnership in which at least one partner is, or is controlled by, a corporation.”
City of Los
Angeles
Requires reduced relocation assistance fees for no -fault just cause eviction due to owner’s relatives occupying a real residential unit as provided in Los Angeles Municipal Code (LAMC) § 151.09(A)(8) if the following four conditions exist [LAMC § 151.30(E)]:
i. the building containing the rental unit contains four or fewer rental units;
ii. within the previous three years the landlord has not paid the fee authorized by LAMC Subsection 151.30(E) to any tenant who resided in the building;
iii. the landlord owns, in the City of Los Angeles, no more than four units of residential property and a singl e-family home on a separate lot; and
iv. any eligible relative for whom the landlord is recovering possession of the rental unit does not own any residential property in the City of Los Angeles.
County of
Los Angeles
Uses the term “small landlords” in the context of safe, clean water act parcel tax pass -through, wherein a small landlord is allowed to pass through the safe, clean water act parcel tax to tenants. For the purposes of § 8.52.070 (F) only, small landlords are defined as an owner that owns, or has common ownership or common control of, 50 or fewer Fully Covered Rental Units in the County [LA County Municipal Code (LACMC) § 8.52.070].
As indicated in Table 1, only a few jurisdictions have exempt ed small rental complexes or small landlords from requirements of increased relocation fees or have established leniency from compliance with certain aspect of local regulations on tenant protection for such residential tenancies.
Burbank’s proposed Ordinance includes an exemption from higher relocation assistance fees for all no-fault just cause evictions for residential tenancies in a rental complex with four or fewer rental units to ensure effective monitoring and enforcement of the proposed regulation based on availability o f data. Currently, the City of Burbank’s Building and Safety Division requires business tax registration for rental properties with three or more units and the Community Development Department maintains a record of such properties. In a review of records from business tax information and city property data, there are 1,696 properties with two to four units that would be eligible for an exemption from requirements of an increase relocation fee pursuant to the proposed Ordinance . 7 Table 2 summarizes the number of properties with two to ten units in the City of Burbank.
Table 2: Rental Complex With 10 or Less Multi-Family Units
Number of Units Number of Rental Complexes
2 881
3 399
4 416
Subtotal: 4 or Less Units 1,696
5 145
6 126
7 48
8 113
9 51
Subtotal: 9 or Less Units 2,179
10 86
Total: 10 or Less Unis 2,265
iii. Local Regulations on Anti-Retaliation: The proposed Ordinance incorporates regulations on anti -retaliation and prohibit s retaliatory action by a landlord including decrease in services, increase in rent, and termination or tenancy, in response to a tenant’s assertion or exercise of rights pursuant to applicable local, state, or federal law. These regulations authorize an impacted tenant to seek civil damages or injunctive relief through a civil action or serve as an affirmative defense in an action filed against the impacted tenant. Additionally, the proposed Ordinance allows administrative citations as a potential local enforcement mechanism pursuant to Burbank Municipal Code (BMC) § 1-1-108.1. iv. Local Enforcement Mechanism 4 : C onsistent with SB 567, the proposed Ordinance establishes an enforcement mechanism by authorizing the City Attorney’s Office to seek injunctive relief in case of violation of local regulations relating to no-fault just cause protections. As mentioned above, violation of local regulations on anti -retaliation would be punishable by administrative citation pursuant to BMC § 1-1-108.1.
ENVIRONMENTAL REVIEW
The adoption of this Ordinance is not subject to the California Environmental Quality Act (CEQA) under State CEQA Guidelines § 15060(c)(2), in that the adoption of this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment, and is further and independently exempt from the California
4 The proposed Ordinance does not include enforcement action for violation of at-fault just cause evictions.
8 Environmental Quality Act under State CEQA Guidelines § 15061(b)(3), in that it can be seen with certainty there is no possibility the adoption of this Ordinance will have a significant effect on the environment.
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund by adopting the proposed Ordinance.
However, additional staffing will be necessary to enforce the provisions of the proposed Ordinance. During the budget hearing on May 21 st, 2024, Council approved funding for five new positions, three with the Community Development Department and two with the City Attorney’s Office, for creating a Housing Enforcement Unit to facilitate implementation and enforcement of the proposed Ordinance.
CONCLUSION
The proposed Ordinance would implement local regulations to strengthen tenant protections within the City of Burbank. Specifically, the changes include increasing the amount of relocation assistance fees for all no- fault just cause evictions as defined in subsection (b)(2) of § 1946.2 of the California Civil Code to 3 months of the tenant’s rent in effect at the time of issuance of notice of termination, beyond the one- month rent requirement by the state law, while creating an exception for residential tenancies in a rental complex with four or fewer rental units. Additionally, the proposed Ordinance would establish local regulations on anti-retaliation and would enable a tenant to contest against a landlord’s retaliatory actions in a court of law. Finally, maintaining consistenc y with the state law, the proposed Ordinance establishes enforcement mechanism authorizing City Attorney’s Office to seek injunctive relief in case of violation of local regulations on tenant protection relating to no-fault just cause eviction.
ATTACHMENTS
Attachment 1 – Proposed Ordinance
Attachment 2 – Red Lined Ordinance
Attachment 3 – Urgency Ordinance No. 23-3,999
Attachment 4 – Changes to California Civil Code Sections 1946.2 and 1947.12 (SB 567) Attachment 5 – April 23, 2024, Discussion on Potential Landlord and Tenant Strategies Staff Report and Attachments