Rent Stabilization and Just
Cause for Eviction
CONCORD CITY COUNCIL
DECEMBER 12, 2023
1
Background
• January 12, 2023: Council committed to the adoption of Rent Stabilization and Just Cause for Eviction policies
• July & August 2023: City staff solicited and received policy input from stakeholders.
• September 5, September 12, and October 10, 2023: City Council received this input and provided policy direction to staff. • December 12, 2023: Staff is presenting Council with a draft Residential Tenant Protection Ordinance with policy options for Permanent Relocation Assistance.
2
Need for Housing Policy in Concord
• Renters occupy approximately 40% of all housing units in Concord • More than 48% of renters in Concord spend over 30% of their income on housing costs
• From 2011 to 2021, median gross rents increased by an average of 6% per year for all units
• From 2021 to 2022, average rents in Concord increased by 9% 3
Other Jurisdictions
• Local jurisdictions for comparison: Antioch, Alameda, Richmond
• 26 out of 538 cities and counties in California have enacted rent stabilization polices
• 43 out of 538 cities and counties in California include just cause for eviction polices beyond AB 1482
4
State Law The Costa Hawkins Act - 1995
Local rent stabilization ordinances may not cap
rents on:
• Buildings constructed after 1995
• Single-family dwellings and condos
• New tenancies following prior tenants vacating the
unit (“vacancy decontrol”)
There are existing
laws in California
that provide certain
protections and
limits relating to
rent stabilization
and just cause for
evition.
5
State Law
Tenant Protection Act (AB 1482) –
2019
• Rent increases limited to the lesser of 10% or
5% + Consumer Price Index (CPI)
• Property owners:
• Evictions: must provide a “just cause”
• Relocation assistance: greater of one
month’s rent or $1,000
• Exempts units built in last 15 years
• Sunsets January 1, 2030
There are existing
laws in California
that provide certain
protections and
limits relating to
rent stabilization
and just cause for
eviction.
6
State Law
SB 567 (April 2024)
No-Fault Just Cause Owner Move-In
• Owner must occupy the property for a minimum of 12
months and must move into the unit within 90 days after resident vacates
No-Fault Just Cause Substantial Remodel
• Owner must provide written notice that includes
expected scope of work and duration of time to
completion, or expected date by which the property will be demolished, and a copy of permits required to
undertake the substantial remodel or demolition.
• Right of Return if substantial remodel is not commenced or completed
Increased Penalties for Failure to Comply
There are existing
laws in California
that provide certain
protections and
limits relating to
rent stabilization
and just cause for
eviction.
7
State Law Limits City Options
Just Cause for Eviction
City Can, if More Protective than AB 1482:
• Impose just cause on all units- including single family homes • Impose additional relocation assistance for no-fault
• Further restrict just causes
• Impose additional requirements for no-fault evictions such as issuance of permits before substantial rehab or demolition evictions • Require additional relocation payments for Ellis Act evictions • Restrict when no-fault notices may be issued, e.g. during the school year 8
State Law Limits City Options
Just Cause for Eviction
•City Cannot:
• Extend state law noticing time periods, including for Ellis Act evictions
• Require City approval, petitions, mediation, or other administrative process prior to a tenancy termination
9
City of
Concord
Current Law
Current Residential Tenant
Protection Program
• Effective August 2020, expires January
2030
• Mirrors AB 1482
• Additional protections:
• Relocation assistance: 2x monthly rent or
$5,000
• Minimum lease term of 12 or 6 months to new
tenants
• Annual Rent Registry
Concord residents
are granted
additional
protections under
local law
10
City of
Concord
Proposed
Draft Policy
Units Covered
• Multi-family rental buildings constructed
prior to February 1, 1995:
• Buildings with 2 or more units
• Low Income Housing Tax Credit (LIHTC) units
• Mobile home units (versus spaces)
• Concord’s pre-existing Mobile Home Rent
Stabilization Program regulates space rents
Rent
Stabilization
11
City of
Concord
Proposed
Draft Policy
Exempt Units
• Units constructed after February 1, 1995
• All single-family homes/condominiums
• With the exception of LIHTC units which are covered, housing restricted by deed, regulatory agreement with a government agency, or other recorded document as affordable housing • Transient and tourist hotel occupancies
• Emergency shelters
• Residential and institutional facilities
• Institutional facilities
• Dormitories
• Government-owned housing accommodations
• Accessory Dwelling Units
• Unit where tenant shares kitchen or bathroom with the owner Rent
Stabilization
12
City of
Concord
Proposed
Draft Policy
Rent Increase Limit
• Lesser of 60% of CPI or 3%
Retroactivity
• January 12, 2023
Rent
Stabilization
13
City of
Concord
Proposed
Draft Policy
Petitions
• Tenant Petition
• Downward rent adjustments
• Owner petition for Fair Return on
Investment
• Upward rent adjustments
• Able to recoup costs of capital improvements
Petition Costs
• No cost to tenant for tenant petition
• Owner covers cost of Fair Return Petition
Rent
Stabilization
14
City of
Concord
Proposed
Draft Policy
Units Covered
• Multi-family rentals with 2 or more units
• Rented single-family homes and
condominiums
• Low Income Housing Tax Credit (LIHTC)
units
• Mobile home units (versus spaces)
• State law extends just cause protections to
mobile home space rents.
Just Cause
for Eviction
15
City of
Concord
Proposed
Draft Policy
Exempt Units
• With the exception of LIHTC units which are
covered, housing restricted by deed, regulatory
agreement with a government agency, or other
recorded document as affordable housing
• Transient and tourist hotel occupancies
• Emergency shelters
• Residential and institutional facilities
• Institutional facilities
• Dormitories
• Government-owned housing accommodations
• Accessory Dwelling Units
• Unit where tenant shares kitchen or bathroom
with the owner
Just Cause
for Eviction
16
City of
Concord
Proposed
Draft Policy
At-Fault Reasons for Evictions
• Default in the payment of rent
• Breach of a material term of the lease
• Nuisance
• Committing waste
• Tenant refusal of written lease
• Criminal activity
• Subletting in violation of lease
• Tenant’s refusal to allow owner to enter unit
• Unit use for unlawful purposes
• Failure to vacate
• Tenant Failure to deliver possession of unit
Just Cause
for Eviction
17
City of
Concord
Proposed
Draft Policy
No-Fault Reasons for Evictions
• Owner intent to occupy unit
• Withdrawal from rental market
• The owner complying with any of the following:
• (a) An order issued by a government agency or court
relating to habitability that necessitates vacating the residential real property.
• (b) An order issued by a government agency or court to vacate the residential real property.
• (c) A local ordinance that necessitates vacating the
residential real property.
• (d) If it is determined by any government agency or
court that the tenant is at fault for the condition or
conditions triggering the order or need to vacate, the
tenant shall not be entitled to relocation assistance
• Intent to demolish or substantially remodel the
residential property
Just Cause
for Eviction
18
City of
Concord
Proposed
Draft Policy
Substantial Renovation Definition (AB 1482
and SB 567)
“The replacement or substantial modification of any
structural, electrical, plumbing, or mechanical system
that requires a permit from a governmental agency,
or the abatement of hazardous materials, including
lead-based paint, mold, or asbestos, in accordance
with applicable federal, state, and local laws, that
cannot be reasonably accomplished in a safe manner
with the tenant in place and that requires the tenant
to vacate the residential real property for at least 30 days. Cosmetic improvements alone, including
painting, decorating, and minor repairs, or other
work that can be performed safely without having
the residential real property vacated, do not qualify
as substantial rehabilitation.”
Just Cause
for Eviction
19
City of
Concord
Proposed
Draft Policy
Temporary Relocation Options During
Substantial Renovation and Right of
Return
For a relocation of 30 days or fewer
• Property owner pays tenant per diem rate for
lodging and meals
For a relocation of 31 days or greater
• Tenants receive temporary relocation
assistance and retain right to return at same
base rent with any authorized annual increases
• Tenant must continue to pay their lease rate rent
with any allowed adjustments
Just Cause
for Eviction
20
City of
Concord
Proposed
Draft Policy
Temporary Relocation Options
During Substantial Renovation and
Right of Return (Continued)
For a relocation of 31 days or greater
Property Owner Options:
• Relocate tenant to a hotel, and pay for
necessary services and incidentals
• Relocate tenant to a comparable or
superior Dwelling Unit or temporary
housing accommodations.
Just Cause
for Eviction
21
City of
Concord
Proposed
Draft Policy
Temporary Relocation Options
During Substantial Renovation and
Right of Return (Continued)
Per Diem Amounts for Relocation of 30 days
or Fewer:
• Lodging: $165/day
• Meals: $74/day
Based on the Federal General Services Administration per diem rate for lodging and meals (M&IE Total)
Just Cause
for Eviction
22
City of
Concord
Proposed
Draft Policy
Permanent Relocation Assistance
Amount for No-Fault Evictions
Options that Council is Considering
1) 3x HUD FMR Rent or $8,500
2) 3x HUD FMR Rent + $3,000
3) 3 x HUD FMR Rent
1 month of increased assistance at HUD Fair
Market Rent for protected (vulnerable)
populations
Just Cause
for Eviction
23
City of
Concord
Proposed
Draft Policy
Permanent Relocation Assistance
Amount for No-Fault Evictions
Current State Policy
Greater of one month’s rent or $1,000
Average Asking Rent vs. 2023 HUD FMR for
Contra Costa County Just Cause
for Eviction
24 Average Rent in
Concord
2023 HUD FMR for Contra
Costa County
Studio 1,767$ 1,658$
1BR 1,700$ 1,969$
2BR 2,434$ 2,405$
3BR 2,933$ 3,144$
4BR 3,752$ 3,706$
City of
Concord
Proposed
Draft Policy
Effective Period
• Effective upon move-in
Ellis Act
• Property owner records a memorandum
encumbering the property for the ten years
that it is off-market
• Property owner pays tenants permanent
relocation assistance
• Tenant has right to return to property if
property is re-rented during ten years after
withdrawal
Just Cause
for Eviction
25
City of
Concord
Proposed
Draft Policy
Enforcement
• Civil Remedies
• Hearing Officer
Rent Registry Fees and Pass-Through
•Rent Registry Fees are anticipated to be as
follows with no allowable pass-through to
tenants:
• Fully-Covered Units: $49-$52 per unit
• Partially-Covered Units: $29-$32 per unit
Both Policies
26
Requested Policy Direction
• Hear Public Comment
• Provide Direction on Permanent Relocation
Assistance policy options
• Introduce the ordinance amending Concord
Municipal Code Chapter 19.40 “Residential Tenant
Protection Program” to increase “just cause”
eviction protections, expand the City’s rent registry,
and establish a rent stabilization program, by
reading of the title only and waiving further reading
27
Questions?
28
Staff Report
Date: December 12, 2023
To: City Council
From: Valerie J. Barone, City Manager
Prepared by: Joelle Fockler, MMC, City Clerk
[email protected]
(925) 671-3390
Subject: Considering appointing Councilmembers to represent the City Council on Council committees and regional bodies and
boards of various external organizations of which the City is a member.
Report in Brief
These proposed appointments, which will be considered during the December 12, 2023, City Council meeting, establish Council representation on the Council committees shown on Attachment 1, and Council representation on regional bodies and the boards of various external organizations of which the City is a member, as shown on Attachment 2. Newly appointed representatives will be seated effective December 13, 2023. Attachment 3 is informational only and does not require Council action.
Attachment 3 represents the liaison and interview functions between standing Council committees and the City’s appointed citizen boards, commissions, and committees.
Recommended Action
1. Mayor to appoint Councilmembers to represent the City Council on Council committees. (Attachment 1)
2. Mayor to appoint Councilmembers to regional bodies on the boards of various external organizations of which the City is a member. (Attachment 2)
3. Council as a whole to ratify by a vote of the membership composition of its standing committees and confirm representation on external agencies.
Public Contact
The City Council Agenda was posted.
7.a7.a7.a7.a
City Council Agenda Report
Agenda Item No. 7.a
December 12, 2023
Attachments
1. Council Committees
2. External Council Appointments
3. Function of Existing Boards, Commissions, and Committees
Attachment 1
2024 Standing Committees
Effective December 13, 2023
Each Councilmember is a chair of one committee and a member of a second committee. City Council Standing Committees meet as needed. Note: The Policy Development and Internal Operations Committee is chaired by the Mayor and its member is the Vice Mayor by adopted Council policy.
APPOINTEES
CHAIR MEMBER
Standing Committees
Policy Development and Internal Operations Birsan Obringer Housing and Economic Development Obringer Nakamura
Infrastructure and Franchise Hoffmeister Aliano
Recreation, Cultural Affairs & Community Services Nakamura Birsan Youth and Education Aliano Hoffmeister
2023 Committees
Committees Chair Member
Policy Development & Internal Operations Hoffmeister Birsan Housing & Economic Development Birsan Obringer
Infrastructure & Franchise Obringer Hoffmeister
Recreation, Cultural Affairs & Community Services Aliano Nakamura Youth & Education Nakamura Aliano
Attachment 2
2024 EXTERNAL COUNCIL APPOINTMENTS
Effective December 13, 2023
ORGANIZATION MEETING SCHEDULE MEMBER
SECOND
MEMBER OR
ALTERNATE
Association of Bay Area
Governments (ABAG)
General Assembly
The General Assembly must be held
by April 1 of each year, the Spring
Meeting is usually held in March,
and the Fall General Assembly is
held in October or November.
Birsan Nakamura
Central Contra Costa Transit
Authority (The County
Connection)
3rd Thursday of each month, 9 a.m. Hoffmeister Nakamura Contra Costa Mayors
Conference
1st Thursday of each month, 6:30
p.m. Birsan Obringer
League of CA Cities Board of
Directors (East Bay Division) 3rd Thursday of each month, 6 p.m. Aliano Birsan Transportation Partnership
and Cooperation Regional
Committee (TRANSPAC)
2nd Thursday of each month, 9 a.m. Obringer Nakamura
Marin Clean Energy Board 3rd Thursday of the month, 7 p.m. quarterly or as needed Nakamura Birsan
Green Empowerment Zone TBD Obringer Birsan
Innovate 680 PAC Obringer Hoffmeister
Other Appointments Appointing Entity Appointee Term Expires Local Agency Formation
Commission Mayors Conference Birsan
(Alternate) 5/4/27
Airport Land Use Commission Mayors Conference Birsan 5/4/24 Airport Land Use Commission Mayors Conference Obringer 5/4/26 Hazardous Materials
Commission Mayors Conference Birsan
(Alternate) 12/31/23
East Bay Regional Parks
District Advisory Commission Mayors Conference Obringer 12/31/24 East Bay Economic
Development Alliance
Executive Committee
Mayors Conference Obringer 6/30/25
Attachment 2
2023 EXTERNAL COUNCIL APPOINTMENTS
ORGANIZATION MEETING SCHEDULE MEMBER
SECOND
MEMBER OR
ALTERNATE
Association of Bay Area
Governments (ABAG)
General Assembly
The General Assembly must be held
by April 1 of each year, the Spring
Meeting is usually held in March,
and the Fall General Assembly is
held in October or November.
Nakamura Aliano
Central Contra Costa Transit
Authority (The County
Connection)
3rd Thursday of each month, 9 a.m.
Hoffmeister Nakamura
East Bay Division of League
of CA Cities
3rd Thursday of each month, 6 p.m. Aliano Birsan
Transportation Partnership
and Cooperation Regional
Committee (TRANSPAC)
2nd Thursday of each month, 9 a.m.
Obringer Hoffmeister
Marin Clean Energy Board
3rd Thursday of the month, 7 p.m.
quarterly or as needed Birsan Nakamura
Contra Costa Mayors
Conference 1st Thursday of the month, 6:30 p.m. Hoffmeister Birsan Green Empowerment Zone Nakamura Obringer
Innovate 680 PAC Obringer Hoffmeister
Other Appointments Appointing Entity Appointee Term Expires Local Agency Formation
Commission Mayors Conference Birsan
(Alternate) 5/4/27
Airport Land Use Commission Mayors Conference Birsan 5/4/24 Airport Land Use Commission Mayors Conference Obringer 5/4/26 Hazardous Materials
Commission Mayors Conference Birsan
(Alternate) 12/31/23
East Bay Regional Parks
District Advisory Commission Mayors Conference Obringer 12/31/24 East Bay Economic
Development Alliance
Executive Committee
Mayors Conference Obringer 6/30/25
2024
Standing Boards/Commissions/Committees
Standing
Council
Committees
Example
of Issues
Reviewed
Board of Appeals
Commission on Aging
Community Services
Commission
Concord Pavilion
Community Outreach
Committee
Concord Pleasant Hill
Health Care Dist
Grant Committee
Design Review Board
Parks, Recreation &
Open Space
Commission
Personnel Board
Planning
Commission1
Measure V Oversight
Committee
Community Health
Fund
Bike, Pedestrian &
Safe Route Plan
Policy Development and
Internal Operations
Birsan, Chair
Obringer, Committee member
Council budget, policy
development, facilities use,
community relations, Concord
Community Reuse Project
• •
Housing and Economic
Development
Obringer, Chair
Nakamura, Committee member
Downtown, housing, mobile
homes, development
permitting
•
Infrastructure and
Franchise
Hoffmeister, Chair
Aliano, Committee member
Transportation, cable,
communications/technologies,
solid waste, public works,
sewer; franchises
• •
Recreation, Cultural
Affairs & Community
Services
Nakamura, Chair
Birsan, Committee member
Neighborhoods, social
services, ADA, programs for
elderly, Arts, special events,
parks, golf course, trails, youth
programs, Sister City • • • •
Youth and Education
Aliano, Chair
Hoffmeister, Committee member
Education and Youth matters
• •
• Primary Relationship: Council Committee to act as liaison to Council and to conduct interviews of applicants for designated board/commission membership. 1 City Council conducts interviews for Planning Commission.
Attachment 3