v . 0 03 P a g e | 1
February 20, 2024
ITEM TITLE
Tenant Protection Ordinance: Updates to the Chula Vista Residential Tenant Protection Ordinance, CVMC Chapter 9.65, to Remain Consistent with Recently Adopted California Senate Bill 567 Report Number: 24-0044
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Place an ordinance on first reading amending Chapter 9.65 of the Chula Vista Municipal Code entitled “Residential Tenant Protections” (First Reading).
SUMMARY
City Council adopted Chapter 9.65 of the Chula Vista Municipal Code establishing “Residential Tenant Protections”, on October 25, 2022 via Ordinance No. 2022-3527, to provide greater protections than the State of California’s Tenant Protection Act of 2019. Specifically, Chapter 9.65 aimed to address no-fault terminations of tenancy related to substantial remodels of rental properties, removal of rental properties from the rental market, demolition of rental properties, government/court order, and owner or family move- ins. The adopted provisions in Chapter 9.65 further define and prohibit harassment and retaliation against tenants and provide remedies and tools for enforcement.
On September 30, 2023 the State adopted further protections via Senate Bill 567 that take effect April 1, 2024. This item amends Chapter 9.65 to incorporate changes to state law changes and continues providing additional protections beyond state law.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA. The activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposal P a g e | 2
consists of a reporting action, is not for a site -specific project(s) and will not result in a direct or indirect physical change in the environmental. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
At the October 25, 2023 meeting of the Housing & Homeless Advisory Commissio n, an update on implementation of the Residential Tenant Protection Ordinance and new state law was provided.
DISCUSSION
Local Tenant Protections
On October 25, 202 2 City Council adopted Chula Vista Municipal Code Chapter 9.65 - Residential Tenant Protection (CVMC 9.65 or the “Ordinance” ) to require just cause for termination of residential tenancies consistent with Civil Code Section 1946.2 under the T enant Protection Ac t of 2019 , Assembly Bill 1482 (AB1482), to further limit the reasons for termination of a residential tenancy, to require greater tenant relocation assistance in specified circumstances, and to provide additional tenant protections.
Since the effective date of the Ordinance on March 1, 2023, the City has been notified by owners/landlords of no-fault terminations of tenancy for 63 units subject to CVMC 9.65, mainly citing substantial rehabilitation or demolition as the reason for termination. In all cases, the City provided a follow-up voluntary information package to impacted tenants and the City has received one response to date, which is currently being assessed for resource referral. In addition, the City has assessed no fines to property owners during this time.
A dashboard has been established on the City’s dedicated webpage for Landlord and Tenants to provide real time information on impacts at http://www.chulavistaca.gov/landlordtenant.
State Tenant Protections
On September 30, 2023 California Senate Bill 567 (SB567), Termination of tenancy: no-fault just causes: gross rental rate increases , was adopted, amending AB1482. SB567 adds additional requirements related to the termination of tenancy for the following no-fault bases through the amendment of Section 1946.2:
Owner or Family Move-In: Requires that written notice terminating the tenancy contain the name(s) and relationship to the owner of the intended occupant. The notice must inform the tenant that they may request proof the intended occupant is an owner or related to the owner, and such proof must then be provided. Also requires that the intended occupant move in within 90 days after the tenant vacates, at the rate of the terminated tenancy if a new lease is entered into, and then continues to occupy the unit as their primary residence for a minimum of 12 continuous months. In the event that the intended occupant does not move in within 90 days or continuously occupy the rental unit for 12 consecutive months, the owner must offer the unit to the tenant who was forced to vacate at the same rent and lease terms in effect when the tenant vacated, and the owner must reimburse the tenant for reasonable moving expenses incurred in excess of any relocation assistance paid.
Demolition or Substantial Remodel: Requires that written notice to the tenant include a description of the substantial remodel to be completed , expected duration of the repairs or the expected date by which the property will be demolished, and either a copy of the permit( s) required to undertake the substantial remodel or demolition or, if the landlord is abating hazardous materials and a permit is not required, a copy of the signed contract with the contractor hired to complete the substantial remodel that details the work that will be undertaken.
P a g e | 3
Significantly, SB567 increases the penalties with respect to violations of the law, including making an owner potentially liable to the tenant for damages of up to three times the actual damages in addition to punitive damages. SB567 further a uthorizes the Attorney General and the local city attorney or county counsel to enforce the law’s provisions through an action for injunctive relief.
Chapter 9.65 Amendments
SB567’s provisions will become effective on April 1, 2024. To maintain consistency with state law, staff is bringing forward amendme nts to Chula Vista Municipal Code Chapter 9.65 to reflect the new state law provisions, as provided in Attachment 1. If CVMC 9.65 is not amended prior to April 1, 2024, local tenant protections may revert back to State law minimums, which would not include the additional protection measures for tenants.
In addition, staff recognizes some community concern regarding potential civil penalties for violations of Chapter 9.65. Staff is proposing to update Section 9.65.080(C)(2) to specify that civil penalties for violations of section 9.65.050, “Harassment and Retaliation Against Tenant Prohibited” may be assessed at a rate of up to $5,000 per violation per day; however other civil penalties would be issued in accordance with Chapter
1.41, which allows a rate not to exceed $2,500 per violation per day. It is anticipated that most minor clerical errors could be rectified with a warning and without issuance of any penalties.
Other minor non-substantive administrative updates have also been incorporated into this amendment.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not a site - specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Mayor McCann may, however, have a conflict of interest given his ownership interest in rental property and property management business. Otherwise, Staff is not independently aware, and has not been informed by any other City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact to the General Fund as a result of this action. With only a few terminations reported to date, the budget has been able to absorb the increased costs of administration.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the General Fund as a result of this action as currently presented.
Implementation of the Ordinance is anticipated to continue to have minor indirect costs for staff time to collect data, respond to and educate resident s. Staff will continue to evaluate impacts and provide City Council with updates related to administrative changes and/or budgetary impacts.
ATTACHMENTS
1. Redline Amendments to CVMC Chapter 9.65
Staff Contact: Stacey Kurz, Director of Housing & Homeless Services Carlos Rodriguez, Management Analyst