Written
Communications
Item # Al Name
C
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CHULA VISTA, CA 91910
Honorable Mayor & City Council 02/ 20/ 24
Chula Vista' s renters can receive a huge financial benefit with the addition of the following Clause to The " Tenant Protection Ordinance ":
The Logic behind such a clause is simple. City Staff' s presentation at the December 12 2023 Council meeting revealed that 1YQ fines were issued during the first year of the TPO' s enforcement.
Obviously, with so few " Bad Actors", there is no need to threaten hundreds of good intention Landlords and Tenants with massive $ 5, 000. 00 daily fines. Such a threat forces Mom & Pop property owners to take the precaution of raising rents on thousands of Tenants. Remember... It is not only the fine which causes a rent increase but also the THREAT of a fine which triggers such an action.
Obviously, upon receiving a warning, the vast majority of good intention individuals would gladly come into compliance, while the few unscrupulous Tenants and Landlords will attempt to circumvent the law. An added bonus of such a notification procedure is that a warning simplifies the process of identifying and levying fines against " Bad Actors".
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The Logic behind such a clause is simple. City Staff's
presentationat the December12 2023 Council meeting revealedthat 1YQ fines were issued duringthe first year of the TPO's enforcement.
Obviously, with so few " Bad Actors", there is no need to threaten hundredsof good intention Landlords and Tenants with massive $ 5, 000.00 daily fines. Such a threat forces Mom & Pop property ownersto take the precautionof raising rentson thousands of Tenants. Remember... It is not only the fine which causes a rent increase but also the THREAT of a fine which triggers such an action.
Obviously, upon receivinga warning, the vast majority of good intention individuals would gladly come into compliance, while the few unscrupulous Tenants and Landlordswill attemptto circumvent the law. An added bonus of such a notification procedure is that a warning simplifies the process of identifyingand levying fines against " Bad Actors".
Huge Negative Side Effects If No Warning Is Issued:
The lack of a warning virtually guarantees a procedural error will be committed by someone. When a tenant relocates out of the area, the last thing on their mind is filling out forms for the City.
With no warning Mom & Pop Landlords will be forced to raise rents to accommodate for such a contingency. Additionally, when owners of large complexes become aware no warning will be issued, you can bet they will prepare by " Jacking" rents again.
Do not be mislead by some City Staff members claiming it is not their intention to levy fine for inadvertent mistakes. Such a claim is incorrect. Staff levies fines when the City needs money.
Example: when our Downtown sidewalk widening project went over budget, Staff sent La Bella a bill for $ 39, 000. 00.
Another example of City Staff issued fines: In 2008 a tenant of ours requested permission to install a Garden Window. I said " Sure... just make sure to secure all required permits". He informed me his company ( The Window Factory) had installed hundreds of windows in Chula Vista. He assured me as long as the size of the retrofitted window is not altered, no permit was required. Unbeknownst to the tenant ( Mark Wilson), Chula Vista was short on funds because of the 2008 construction slow down. The Building Department moved most inspectors over to " Code Enforcement" to generate income.
An inspector passing by noticed the crew installing the garden window and issued at fine in excess of $ 500. 00 for lack of permits. Mr.
Wilson politely informed the inspector that a permit was not required.
The inspector was adamant. Obviously it was cheaper to pay the 500. 00 fine then hire and attorney at a cost of thousands. I can, go on forever detailing Staff' s selective interpretation of city codes.
A Quick Analogy.:
Many years ago, my son secured every teenager' s dream job.
Tony obtained employment with Mammoth Mountain Ski Resort which came the coveted benefit of FREE LIFT TICKETS. One day everyone received a notice all employees would soon be
administered a drug test. The reason for the notice was quite simple. Management did not want to catch employees taking drugs, MANAGEMENT WANTED EMPLOYEES NOT TO DO DRUGS.
Likewise... the Purpose of The " Tennant Protection
Ordinance"' is to protect tenants. It' s purpose is NOT to force Landlords to raise rents.
Please Include in the TPO the Clause " 11Totice to cure must first be given before an administrative citation or civil nenab mai be issued". Such an addition would provide the dual benefit of separating reputable Landlords and Tenants from unscrupulous individuals while simultaneously slowing the ever rising rents which is devastating the tenants and homeless of our community.
Thank You.
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PS: Supporting Data:
A) Areas where we all can agree:
1) Threatening Landlords and Tenants who have made inadvertent mistakes with $ 5, 000. 00 daily fines is causing the most harm to tenants. Clause 9. 65. 080C2 states: " Civil penalties for violations of this chapter may be assessed at a rate not to exceed S5,Q00 der vioLadanner day., When a violation occurs it is not required that a warning or notice to cure must first be given before an administrative citation or civil penalty may be issued." and clause
9. 65. 060E states: Reporting Requirements. Owners and Tenant shall provide City with information regarding termination 4f Tenancies at such time( s) and with such details as shall be required by City in the attendant Administrative Regulations. Translation:
Tenant makes a mistake, Landlord gets a $ 5, 000. 00 daily fine. 2) Landlords of the * 36, 033 rental units (* Staff supplied data.) must raise rents in order impound funds to pay the potential fines of those who have made inadvertent errors.
B) The City Council is probably unaware that City Staff is not required receive Council' s direction when modifying The TPO' s Administrative Regulations:
City Staff is authorized to change rules at will regarding the enforcement of the " Tenant Protection Ordinance" without consulting The City Council. Most tenants who voluntarily move away may be unaware they may required to complete forms ' Informing city staff the details of a relocation. See Clause 9. 65. 060E above. Such an absent of action a tenant' s part forces landlords to substantially raise rents in preparation of potential $ 5, 000. 00 daily fines to follow.
Q City Council was warned a year ago the Tenant Protection Ordinance would cause a massive increase in homelessness. Although there are many causes for homelessness in our community, most can agree, high rents is a huge contributing factor. I can state unequivocally The Tenant Protection Ordinance is what is forcing this Landlord to raise rents.
D) City Staff Supplied Data Supporting Conclusions:
1) Chula Vista Population: 283, 972 ( Chula Vista - U. S. Census Bureau QuickFacts)
2) Average number of individuals in each household: 3. 31 ( Chula Vista - U. S. Census Bureau QuickFacts)
3) Percentage Chula Vista housing which are rentals. 42% ( Data compiled by City Staff )
4) Number of Chula Vista Rental Units: 36, 033
Population of Chula Vista ( 283, 072) divided by the average number of people residing zn each Residence ( 3. 31) equals 85, 792 multiplied the percentage of residences which are rentals ( 42° 0} equals the approximate number of Chula Vista rental units. ( 36, 033) 5} Approximate number of Chula Vista renters: 119, 268 ( CV Population 283, 972 x . 42% — 1191,268)
6) Approximate Average Monthly Chula Vista Rent: $ 3, 047. 00 ( See attached CV Staff provided " Relocation Assistance" Pic below - Average of Line 2nd from bottom)
7) With no right to cure, amount of daily fine levied if Landlord or Tenant inadvertently makes a paperwork error when Tenant terminates lease and moves: $ 5, 000. 00 ( Clauses 9. 65. 060 E and 9. 65. 080 C2 of Residential Landlord and Tenant Ordinance" )
8) Maxim average monthly rent increase allowed .. $ 304. 70 ($ 3047. 00 x 10%. California AB - 1482 S% plus inflation Max 10%)
9) Average number of months required for Landlord to impound a I day fine: 16. 41 ($ 5000. 00 divided by $304. 70)
10) $ 10, 979, 255. 00: The approximate total monthly maximum rent increase levied on Chula Vista Renters if Landlords are forced to impound funds to the pay daily fines: ( 36, 033 Rental Units multipliedIP by the 10% mcg allowed rent adjustment $ 304. 70 = $ 10, 979, 255. 00) 11 ) 596 New Homeless: Approximate number of Homeless created if one half of one percent of Chula Vista renters are forced out of their homes by the rent increases caused by the Tenant Protection Ordinance:
CV Population 283, 972 x 42% — 119, 268 x . 5% — 596)
U. S. DepartinentM Of 1-10usingand UrbanDevelopmentSmallArea Fair Market Rent (April 2022) Exhibit ' z
Comparisoll OfSurveyDatavs, SA NIH
3 32
33 Vi 2, 130 51
1, 48
S
SSW
Efficlenc 1.
Y Bedroonj
2 Bedroom
3 Bedroom l d,-Oorr
2, 040 3. 640 4, 450
1, 430 5,1,580 2, 030 2, 820 3,,150
1, 440 51, 600 2, 050 2, 850 3, 490
2, 110 2, 340 3, 000 4, 170 5, 100
2, 360 2, 610 3, 350$ 4, 650 70 0
7,:360 2, 010 X3,350 4. 650 55, 700
1, 925) 2, 130 2- 733 3, 797 4,; y7181
51, 628 1,80? 52, 311 53,,} 1, 0
Exhibit 'z
ComparisollOf SurveyDatavs, SA NIH
3 32
33 Vi 2, 130 51
1, 48
S
SSW
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