1 COUNCILMEMBERS
Edi E. Birsan, Mayor
Carlyn S. Obringer, Vice Mayor
Dominic D. Aliano
Laura M. Hoffmeister
Laura M. Nakamura
Civic Center
1950 Parkside Drive
Concord, CA 94519
www.cityofconcord.org
Regular Meeting of the
Concord City Council
Tuesday,
February 13, 2024
6:30 p.m. - Open Session Council Chamber
1950 Parkside Drive
and/or Various
telephonic/electronic
locations
*IMPORTANT NOTICE ABOUT PUBLIC COMMENTS AND MEETING PARTICIPATION* Members of the public are invited to attend and participate at: Council Chamber, 1950 Parkside Drive, Concord, CA.
Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely pursuant to AB 2449, remote public comment will not be accepted. Public comment may be provided in-person or via email, as set forth below. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. prior to the meeting or to attend the meeting in person.
Spanish interpretation is available in the Council Chamber during the meeting.
HOW TO PARTICIPATE
The public is invited to participate in the City Council meeting using any of the following methods:
1. IN PERSON:
a.Members of the public can provide in-person comments in the Council Chamber.
Members of the public are encouraged, but not required, to fill out a speaker card. The Council Chamber will have seating available for members of the public to attend in person up to full seating capacity.
2 2. REMOTE: Remote public comment will not be accepted, except when a Councilmember participates remotely pursuant to AB 2449. At the time of the posting of this agenda, none of the Councilmembers have notified the City Clerk’s Office that they intend to participate remotely pursuant to AB 2449, and therefore no remote public comment will be accepted at the meeting. If, after publication of this agenda and before the meeting begins, any councilmember determines that they will need to participate remotely due to just cause or emergency circumstances under AB 2449, their remote participation will be announced at the outset of the meeting in connection with the Roll Call item. If a Councilmember participates in the meeting remotely pursuant to AB 2449, the public may participate and provide public comment remotely, as follows:
a. Zoom:
https://cityofconcord.zoom.us/j/88208491960?pwd=Zz4siGHYFSDjz9HnRX_fJfn6TXwW uA.EKNNJzWMjvNo9SOy or Zoom Webinar ID: 882 0849 1960 and Passcode:
754513
b.Zoom Phone Numbers. Dial Toll Free: (669) 900-6833 or (346) 348-7799 or (253) 215- 8782.
c.During the meeting, each period for public comment will be announced, and participants may use the “Raise Hand” feature on Zoom to request to speak. If calling in via Zoom use *9 to raise and lower your hand. The meeting host will call on you, by name, and promote you to panelist in the webinar so you can be seen via your camera. Please enable your microphone when it is your turn to speak. In order to ensure the orderly administration of the meeting using this method, providing your name is encouraged, but is not required. (If you need instructions on how to use this feature, please contact the City Clerk by 3:00 p.m. of the meeting date at [email protected]).
3. EMAIL:
a.Public comments can also be submitted via email to [email protected]. Please note that emailed comments will not be read aloud by staff. Any public comments received up until 3:00 p.m. of the meeting date will be:
1. distributed to the Council before the meeting,
2. posted online for public inspection at
https://stream.ci.concord.ca.us/OnBaseAgendaOnline/Meetings/Search, and
3. inserted into the meeting record.
b.As emails containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your email.
4. TO WATCH OR LISTEN ONLY:
a.Watch on TV on Comcast Channel 28, Astound/Wave Channel 1026, and AT&T U-verse Channel 99
b.Watch the TV broadcast through the City’s website by following THIS LINK c.Watch Live Streaming of the meeting by following THIS LINK d.Join the Zoom webinar by following THIS LINK
3 OPEN SESSION
1. OPENING
Roll Call – Announcements/Consideration and Approval of Requests by Councilmembers to Participate Remotely Pursuant to AB 2449 Pledge of Allegiance – Councilmember Aliano
2. PUBLIC COMMENT PERIOD
This is a 15-minute Public Comment Period for items within the City Council’s subject matter jurisdiction that are not on this agenda. Each speaker will be limited to approximately three minutes.
State law prohibits the City Council from acting at this meeting on any matter raised during the Public Comment Period. Please see “How to Participate” above.
a. Written Public Comment
3. PRESENTATION
a. Presentation – by Dr. Suzanne Tavano, Director, Contra Costa Behavioral Health, on the A3 Crisis Response Program. Introduction by Mayor Birsan.
4. CITY COUNCIL CONSENT CALENDAR
The public is entitled to address the City Council on items appearing on the Consent Calendar before or during the City Council’s consideration of the Consent Calendar. Adoption of the Consent Calendar may be made by one motion of the City Council, provided that any Councilmember, individual or organization may request removal of an item from the Consent Calendar for separate consideration.
If a request for removal of an item from the Consent Calendar has been received, the Mayor may defer action on the particular item and place the same on the regular agenda for consideration in any order s/he deems appropriate. Please see “How to Participate” above. a. Receiving – the Treasurer's Report for the period October 1 - December 31, 2023. Recommended by the City Treasurer.
b. Considering – adoption of Ordinance No. 24-1 entitled, "An Ordinance Amending Section 18.20.030 and Chapter 18.185 of the Concord Municipal Code to address updates to State Density Bonus Law and expand the City’s Inclusionary Housing Requirements." Ordinance No. 24-1 was introduced on January 23, 2024, by reading of the title only and waiving further reading.
Recommended by the City Clerk.
CEQA: Not a “project” under Public Resources Code 21065, CEQA Guidelines Sections 15060(c) or 15378 and, in the alternative, if deemed a “project,” exempt pursuant to CEQA Guidelines Section 15061(b)(3). 4 c. Considering – adoption of Ordinance No. 24-2 entitled, "An Ordinance Amending Concord Municipal Code, Title 18 (Development Code), Section
18.20 (General Terms) and adding Chapter 18.115 (Affordable Housing Overlay District) and Section 18.200.230 (Lot Consolidation Incentive Program)." Ordinance No. 24-2 was introduced on January 23, 2024, by reading of the title only and waiving further reading. Recommended by the City Clerk.
CEQA: Not a “project” under Public Resources Code 21065, CEQA Guidelines Sections 15060(c) or 15378 and, in the alternative, if deemed a “project,” exempt pursuant to CEQA Guidelines Section 15061(b)(3). d. Considering – rejection of all bids submitted for the East Downtown Concord PDA Access & Safe Routes to Transit Project (Project No. 2457), and directing staff to re-advertise the project for bids. Recommended by the Director of Community Development.
5. CITY COUNCIL PUBLIC HEARING
Persons who wish to speak on Public Hearings listed on the agenda will be heard when the public hearing is opened, except on public hearing items previously heard and closed to public comment.
After the public has commented, the item is closed to further public comment and brought to the Council level for discussion and action. Further comment from the audience will not be received unless requested by the Council. No public hearing shall commence after 10 p.m. unless approved by majority vote of the City Council. Please see “How to Participate” above. a. Considering:
1. Direction from Council on the following matters:
a. Percentage of ownership required to constitute an owner move-in. b. The length of time an owner is required to reside in the unit after moving in.
2. Introduction of an Ordinance amending the Concord Municipal Code by 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. (Continued from January 30, 2024; this item was opened on Tuesday, December 12, 2023, continued to Tuesday, January 9, 2024, further continued to Tuesday, January 30, 2024, and continued again to February 13, 2024. Please note that public comment on this item was taken on Tuesday, December 12, 2023, and reopened on Tuesday, January 30, 2024. The public comment period has been closed, and no public comment will be accepted tonight).
Report by Sophia Huckabay, Housing Manager.
CEQA: Not a project/exempt pursuant to Public Resources Code Section 21065, CEQA Guidelines Sections 15060(c), 15061(b)(3), and/or 15378. 5 6. CORRESPONDENCE
Correspondence received at the City Council meeting will be listed here on the Annotated Agenda. a. Letter – to Senator Alex Padilla re: Support for the Low-Income Household Water Assistance Program (LIHWAP) Establishment Act dated February 2, 2024.
b. Letter – to Administration for Children and Families, Office of Head Start, re:
Support for Contra Costa County's Head Start and Early Head Start program dated February 6, 2024.
7. REPORTS AND ANNOUNCEMENTS
Closed Session Announcements
City Manager or Staff Reports
Council Reports
8. ADJOURNMENT
Next Meeting: Special Meeting
Date: 2/20/2024 6:00 PM
NOTICE TO THE PUBLIC
There is a 90-day limit for the filing of a challenge in the Superior Court to certain City administrative decisions and orders which require a hearing by law, the receipt of evidence, and the exercise of discretion. The 90-day limit begins on the date the decision is final (Code of Civil Procedure §1094.6). Further, if you challenge an action taken by the City Council in court, you may be limited by California law to raising only those issues you or someone else raised in the hearing or in a written correspondence delivered to the City Council prior to or at the hearing.
In accordance with the Americans with Disabilities Act and California Law, it is the policy of the City of Concord to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the ADA Coordinator Tianjun Cao at (925) 671-3243 or [email protected], at least 24 hours in advance of the meeting. Advance notification within this guideline will enable the City to make reasonable arrangements to ensure accessibility.
From: Jason Pfister <[email protected]>
Sent: Saturday, February 10, 2024 9:42 PM
To: City Clerk <[email protected]>
Subject: Constituent comment: Zoom
AGENDA ITEM: 2
Dear City Council:
I would like to encourage you to please reinstate Zoom comments for city council meetings. Many residents cannot attend the meetings on Tuesdays at 6:30 p.m. for a myriad of reasons: work obligations, caretaking, looking after kids, etc. Having the option to offer Zoom is a nice privilege for the residents. Also, public speaking is daunting for a lot of individuals, too. Doing it on Zoom quells those fears. Do not let a few immature individuals take away this democratic, free speech perk. Please follow the lead of other cities, both in Contra Costa County & other nearby counties, in once again allowing Zoom comments at city council meetings. Thank you for your time.
-Jason Pfister
Written Public Comment
Agenda Item No. 2.a
February 13, 2024
2.a
From: Dea Smith <[email protected]>
Sent: Monday, February 12, 2024 10:51 AM
To: Concord City Council Email <[email protected]> Subject: Re: Upcoming decisions
City Clerk Joelle
In general -
Thank you
Dea
Sent from my iPhone
> On Feb 12, 2024, at 10:44 AM, Concord City Council Email <[email protected]> wrote:
>
> Hello Ms. Smith - are the comments you sent below for a specific item on Tuesday's City Council meeting agenda or are they in general?
>
> Joelle Fockler, MMC | City Clerk
> City of Concord | Website: www.cityofconcord.org
> w (925) 671-3390 | [email protected] >
>
> -----Original Message-----
> From: Dea Smith <[email protected]>
> Sent: Thursday, February 8, 2024 2:35 PM
> To: Concord City Council Email <[email protected]> > Subject: Upcoming decisions
>
>
> Hello
> My thoughts on the impactful upcoming decisions.
> I hope you will be thoughtful about taking us into the future - ALL of us, without the bias of yesterday and seeking anything but balance and fairness that will benefit everyone. > There is no need to “answer” for anything that is “water under the bridge”. Go boldly into our tomorrow with good, fair, and meaningful decisions.
> Thank you
> Dea Smith
> Canterbury Village.
>
> Sent from my iPhone
Suzanne Tavano, PhD
Behavioral Health Director
Concord City Counsel
Update on Oak Grove
Campus and A3
February 13, 2024
3.a
Oak Grove Site Plan
Annex Plan
Respite Center Plan
Submit
DCD and
ConFire
Permits
11/15/202
3 Submit
SHPO for
Fed
Funding
11/17/202
3 SHPO
Concurrenc
e
12/17/2023
Permits
Received
1/22/2024
Bid Process
Begins
1/22/2024
Bid Process
Closes
4/15/2024
Project
Labor
Agreement
Complete
4/29/2024
Constructio
n Kick-Off
4/30/2024
Construction
Complete
12/30/2024
Final
Inspection
by DCD and
Fire
Furniture
Installation
Move-In
Grand
Opening
Submit DCD
and ConFire
Permits
11/15/2023
Submit SHPO
for Fed
Funding
2/12/2024
SHPO
Concurrence
3/15/2024
Permits
Received
3/1/2024
Bid Process
Begins
3/1/2024
Bid Process
Closes
5/30/2024
Project Labor
Agreement
Complete
6/13/2024
Construction
Kick-Off
6/14/2024
Construction
Complete
2/14/2025
Final
Inspection by
DCD and Fire
Furniture
Installation
Move-In
Grand
Opening
Previous Construction Milestone Timeline
Revised Construction Milestone Timeline
Timeline TBD
Timeline TBD
Outstanding Item
Original
Estimate
Revised
Schedule Notes
Submit Department of Conservation and
Development (DCD) and ConFire Permits 11/15/2023 11/15/2023 The Fire District and DCD are continuing their reviews.
Permits Received 1/22/2024 3/1/2024 Estimates have slipped from January 2024 to March 2024 Bid Process Begins 1/22/2024 3/1/2024
Once the permit set is green lighted, and we have a permit, PW goes through a process with the design set, and it goes to bid for contractors. The process takes at least 90 days before a contractor can be selected
Bid Process Closes 4/15/2024 5/30/2024
All bids are sent to PW by interested contractors, these take time to review and vet, then a selection can be made.
Project Labor Agreement (PLA) Complete 4/29/2024 6/13/2024 PLAs typically require that employees hired for the project are referred through union hiring halls.
Construction Kick-Off 4/30/2024 6/14/2024
Contractor, project management and architects will hold a kickoff meeting. Construction is slated at this time to last 8 months..
Construction Complete 12/30/2024 2/14/2025
Final Inspection DCD and Fire - Certificate of
Occupancy TBD TBD
Furniture Installation TBD TBD
Move In TBD TBD
Grand Opening TBD TBD
Service Begins TBD TBD
The A3 Public Dashboard is an intuitive, graphical resource for anyone wanting immediate access to statistical data about the program. It provides current call and field visit statistics, grouped into common categories.
• Newly updated dashboard now includes:
• Two separate sections, one for calls received and one for mobile teams dispatched. • Number of calls and teams dispatched are both broken down by seven categories. • A3 Communication Meetings are being held to refine content and functionality to maximize the impact and effectiveness of the dashboard.
• Since expanding to 24/7 service on December 1, 2023, A3 has received 442 calls between 10 pm – 8 am.
A3 Public Dashboard
The available information on the Dashboard includes:
• Number of calls handled and resolved over the phone
• Average call wait time
• Number of crisis field visits
• Average response time of a field visit
• Number of calls and field visits broken down by the following:
• Referring party
• Crisis city
• Sex
• Gender identity
• Race & ethnicity
• Age
• Housing status
A3 Public Dashboard
Additional examples of charts that might be available on the Dashboard.
A3 Public Dashboard
The A3 Public Dashboard also provides interactive heat maps of Contra Costa County showing the number of calls received, and the number of mobile teams dispatched, by city.
A3 Public Dashboard
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
City Council
Patti Barsotti, City Treasurer
February 02, 2024
Treasurer’s Report: October 1, 2023 – December 31, 2023 The attached report presents the City’s investment portfolio as of the quarter ending December 31, 2023 and has been prepared in compliance with California Code Sec tion 53646. Market values have been provided by PFM Asset Management on the attached detail.
On April 1, 2013, the City contracted with investment advisor PFM Asset Management to manage the City’s portfolio. The City’s strategy is to re tain sufficient cash flow to manage day-to-day operations and have PFM focus on longer-term investment management. All investments are held by the City in safekeeping accounts through BNY Mellon and US Bank, except for investments held by trustees related to bond financings.
City Managed
(in millions)
PFM Managed
(in millions)
Total Unrestricted
Portfolio
(in millions)
Restricted
(in millions)
Cash LAIF CAMP Cal Trust Portfolio (Market Value)
LAIF
COP Proceeds
Portfolio
Balance $11.18 $34.89 $143.03 $23.52 $61.43 $274.05 $99.05 Effective
Yield N/A 4.00% 5.56% 4.51% 4.30% 4.56% 4.00%
Avg.
Weighted
Maturity N/A 1 Day 1 Day 1 Day 2.64 Years .44 Years 1 Day Treasurer Certification:
I certify that these reports accurately reflect all pooled investments, are in compliance with California Government Code Section 53646 and are in conformity with the investment policy adopted by City Council, June 27, 2023. This report will be posted to the Treasurer’s Website within 45 days of quarter end to comply with the City’s investment policy mandate.
As Treasurer of the City of Concord, I hereby certify that sufficient investment liquidity and anticipated revenue are available to meet the ne xt six month’s estimated expenditures (CA Code sec 53646(b)).
______________________________ ______________________________ E. Patricia Barsotti, CITY TREASURER Date
��
4.a
City of Concord
Cash and Investment Summary
as of December 31, 2023
Sector Average Maturity Par Amount Adjusted Cost Market Value Coupon Yield at
Market
Cash Equivalents
Cash on Hand* 1 Day 11,113,954.95 11,113,954.95 11,113,954.95 - - Portfolio Cash 1 Day 69,693.64 69,693.64 69,693.64 - 5.25% CAMP* 1 Day 143,027,789.97 143,027,789.97 143,027,789.97 - 5.56% LAIF* 1 Day 34,886,381.48 34,886,381.48 34,886,381.48 4.00% LAIF Restricted Financing Proceeds* 1 Day 99,055,745.86 99,055,745.86 99,055,745.86 - 4.00% Cash Equivalents Subtotal 1 Day 288,153,565.90 288,153,565.90 288,153,565.90 4.62% Other Investments
CalTrust Short Term Fund* 1 Day 3,550,000.00 4,571,406.19 4,588,414.48 - 4.94% CalTrust Medium Term Fund* 1 Day 17,050,000.00 19,313,876.12 18,935,415.08 - 4.41% Other Investments Subtotal 1 Day 20,600,000.00 23,885,282.31 23,523,829.56 4.51% PFM Managed Portfolio
U.S. Treasuries 3.17 Years 38,525,000.00 37,107,370.77 36,739,170.83 2.19% 4.01% Federal Agencies 1.69 Years 2,975,000.00 2,971,016.72 2,784,063.23 0.40% 4.39% Federal Agency CMBS 0.92 Years 394,245.18 398,066.27 386,353.13 3.06% 5.30% Municipal Obligations 1.56 Years 2,790,000.00 2,790,586.05 2,661,532.55 1.38% 4.85% Corporate Notes 1.96 Years 17,600,000.00 17,638,939.89 17,151,857.83 2.70% 4.68% Certificates of Deposit 1.83 Years 1,700,000.00 1,700,000.00 1,710,538.40 5.57% 5.17% PFM Managed Portfolio Subtotal 2.64 Years 63,984,245.18 62,605,979.70 61,433,515.97 4.30% Total 0.44 Years 372,737,811.08 374,644,827.91 373,110,911.43 4.56% Earnings Summary October 1, 2023 - December 31, 2023 (Accrual Basis) Portfolio Securities
Ending Amortized Value of Securities 62,605,979.70
Ending Accrued Interest 362,547.81
Plus Proceeds from Sales 8,641,536.42
Plus Proceeds of Maturities/Calls/Principal Payments 5,754.82 Plus Coupons Received 280,209.19
Less Cost of New Purchases (8,933,499.91)
Less Beginning Amortized Value of Securities (62,776,537.95) Less Beginning Accrued Interest (315,418.83)
Portfolio Securities Subtotal (129,428.75)
LAIF
LAIF Subtotal $1,345,498.38
CAMP
CAMP Subtotal $1,722,282.83
CalTrust
CalTrust Subtotal $233,120.65
Grand Total 3,171,473.11
*Values provided by the City of Concord
City of Concord
Cash and Investment Summary
as of December 31, 2023
U.S.
Treasuries
10%
Federal
Agencies
1%
Agency CMBS
<1%
Municipal
Obligations
1%
Corporate
Notes
5%
Certificates of
Deposit
<1%
LAIF
9%
LAIF
Restricted
Financing
Proceeds
27%
CAMP
38%
CalTrust
6%
Cash
3%
Sector Breakdown
AAA
<1%
AA
13%
A
3%BBB+
<1%
NR
<1%
Cash
3%
AAf
(CalTrust)
6%
NR (LAIF)
36%
AAAm
(CAMP)
38%
Credit Quality
84%
1% 4% 5% 6% 1% 0%
0%
20%
40%
60%
80%
100%
Less than
6 Months
6 to 12 Months 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years Over 5 Years Maturity Distribution
City of Concord
Cash and Investment Detail
as of December 31, 2023
Issuer
S&P
Rating Coupon Maturity Purchased
Days to
Maturity Par Amount Adjusted Cost Market Value
Yield at
Market
Operating Funds
Cash Equivalents
Cash on Hand* NR - 1/1/2024 12/31/2023 1 11,113,954.95 11,113,954.95 11,113,954.95 - Portfolio Cash Account AAAm 5.25% 1/1/2024 12/31/2023 1 69,693.64 69,693.64 69,693.64 5.25% LAIF-City of Concord* NR 4.00% 1/1/2024 12/31/2023 1 10,144,233.92 10,144,233.92 10,144,233.92 4.00% LAIF-COP 2021 - Restricted* NR 4.00% 1/1/2024 12/31/2023 1 99,055,745.86 99,055,745.86 99,055,745.86 4.00% LAIF-Sewer Enterprise District - Restricted* NR 4.00% 1/1/2024 12/31/2023 1 24,742,147.56 24,742,147.56 24,742,147.56 4.00% CAMP* AAAm 5.56% 1/1/2024 12/31/2023 1 143,027,789.97 143,027,789.97 143,027,789.97 5.56% Cash Equivalents Subtotal 1 288,153,565.90 288,153,565.90 288,153,565.90 4.62% U.S. Treasuries
U.S. Treasury AA+ 0.38% 12/31/2025 10/6/2021 731 25,000.00 24,788.02 23,171.88 4.23% U.S. Treasury AA+ 0.38% 12/31/2025 11/4/2021 731 1,425,000.00 1,406,288.73 1,320,796.87 4.23% U.S. Treasury AA+ 0.38% 12/31/2025 12/6/2021 731 1,700,000.00 1,674,880.92 1,575,687.50 4.23% U.S. Treasury AA+ 0.75% 4/30/2026 1/6/2022 851 1,750,000.00 1,726,979.17 1,619,023.35 4.15% U.S. Treasury AA+ 0.75% 4/30/2026 2/14/2022 851 150,000.00 146,079.83 138,773.43 4.15% U.S. Treasury AA+ 0.75% 4/30/2026 2/25/2022 851 475,000.00 463,603.16 439,449.20 4.15% U.S. Treasury AA+ 0.63% 7/31/2026 6/6/2022 943 1,600,000.00 1,510,561.26 1,465,500.00 4.09% U.S. Treasury AA+ 0.63% 7/31/2026 7/8/2022 943 825,000.00 780,711.71 755,648.44 4.09% U.S. Treasury AA+ 0.63% 7/31/2026 8/4/2022 943 1,425,000.00 1,351,870.95 1,305,210.94 4.09% U.S. Treasury AA+ 0.63% 7/31/2026 8/15/2022 943 2,675,000.00 2,519,252.01 2,450,132.81 4.09% U.S. Treasury AA+ 2.00% 11/15/2026 10/11/2022 1,050 1,000,000.00 945,054.16 945,625.00 4.02% U.S. Treasury AA+ 2.00% 11/15/2026 11/4/2022 1,050 475,000.00 445,407.52 449,171.88 4.02% U.S. Treasury AA+ 2.00% 11/15/2026 12/7/2022 1,050 2,675,000.00 2,539,489.03 2,529,546.88 4.02% U.S. Treasury AA+ 2.00% 11/15/2026 1/6/2023 1,050 1,925,000.00 1,825,182.52 1,820,328.12 4.02% U.S. Treasury AA+ 2.75% 4/30/2027 2/3/2023 1,216 1,575,000.00 1,529,047.72 1,515,445.31 3.97% U.S. Treasury AA+ 2.75% 7/31/2027 3/6/2023 1,308 1,725,000.00 1,631,289.41 1,656,269.45 3.95% U.S. Treasury AA+ 2.75% 7/31/2027 5/5/2023 1,308 3,150,000.00 3,060,134.84 3,024,492.03 3.95% U.S. Treasury AA+ 2.75% 7/31/2027 6/6/2023 1,308 1,200,000.00 1,152,070.56 1,152,187.44 3.95% U.S. Treasury AA+ 2.75% 7/31/2027 7/7/2023 1,308 1,350,000.00 1,281,958.03 1,296,210.87 3.95% U.S. Treasury AA+ 2.75% 7/31/2027 8/4/2023 1,308 1,100,000.00 1,041,951.13 1,056,171.82 3.95% U.S. Treasury AA+ 2.75% 7/31/2027 9/8/2023 1,308 2,150,000.00 2,026,492.18 2,064,335.83 3.95% U.S. Treasury AA+ 3.88% 11/30/2027 10/6/2023 1,430 950,000.00 917,853.61 948,367.14 3.92% U.S. Treasury AA+ 3.88% 11/30/2027 12/5/2023 1,430 7,200,000.00 7,106,424.30 7,187,624.64 3.92% U.S. Treasuries Subtotal 1,158 38,525,000.00 37,107,370.77 36,739,170.83 4.01% Federal Agencies
Federal Home Loan Mortgage Corporation AA+ 0.38% 7/21/2025 7/23/2020 568 750,000.00 748,838.96 704,738.25 4.43% Federal National Mortgage Association AA+ 0.38% 8/25/2025 8/27/2020 603 650,000.00 648,996.01 608,666.50 4.41% Federal Home Loan Bank AA+ 0.38% 9/4/2025 9/11/2020 613 275,000.00 274,722.43 257,425.03 4.37% Federal Home Loan Mortgage Corporation AA+ 0.38% 9/23/2025 9/25/2020 632 650,000.00 649,323.16 607,196.20 4.37% Federal National Mortgage Association AA+ 0.50% 11/7/2025 11/12/2020 677 650,000.00 649,136.16 606,037.25 4.34% Federal Agencies Subtotal 617 2,975,000.00 2,971,016.72 2,784,063.23 4.39% Federal Agency CMBS
Federal Home Loan Mortgage Corporation AA+ 3.06% 12/1/2024 3/25/2020 336 394,245.18 398,066.27 386,353.13 5.30%
City of Concord
Cash and Investment Detail
as of December 31, 2023
Issuer
S&P
Rating Coupon Maturity Purchased
Days to
Maturity Par Amount Adjusted Cost Market Value
Yield at
Market
Federal Agency CMBS Subtotal 336 394,245.18 398,066.27 386,353.13 5.30% Municipal Obligations
State of Connecticut AA- 2.00% 7/1/2024 6/11/2020 183 100,000.00 100,000.00 98,331.00 5.41% Chaffey Joint Union HS District CA AA- 2.10% 8/1/2024 12/5/2019 214 140,000.00 140,000.00 137,538.80 5.18% New York State Urban Development Corp. NR 0.87% 3/15/2025 12/23/2020 440 600,000.00 600,000.00 569,310.00 5.29% University of California AA 0.88% 5/15/2025 7/16/2020 501 160,000.00 160,000.00 151,867.20 4.74% Florida State Board of Administration AA 1.26% 7/1/2025 9/16/2020 548 300,000.00 300,000.00 284,895.00 4.77% Florida State Board of Administration AA 1.26% 7/1/2025 9/16/2020 548 115,000.00 115,254.28 109,209.75 4.77% Florida State Board of Administration AA 1.26% 7/1/2025 9/16/2020 548 160,000.00 160,331.77 151,944.00 4.77% Minnesota State AAA 0.63% 8/1/2025 8/25/2020 579 180,000.00 180,000.00 169,209.00 4.59% Los Angeles Community College District CA AA+ 0.77% 8/1/2025 11/10/2020 579 250,000.00 250,000.00 234,972.50 4.75% San Juan Unified School District CA NR 0.85% 8/1/2025 10/29/2020 579 250,000.00 250,000.00 235,842.50 4.59% California State University AA- 0.86% 11/1/2025 7/29/2021 671 170,000.00 170,000.00 158,705.20 4.68% New Jersey Transport Trust Authority AA- 1.05% 1/1/2026 2/4/2021 732 125,000.00 125,000.00 116,650.00 4.58% State of California AA- 4.85% 3/1/2027 3/15/2023 1,156 240,000.00 240,000.00 243,057.60 4.41% Municipal Obligations Subtotal 570 2,790,000.00 2,790,586.05 2,661,532.55 4.85% Corporate Notes
PNC Bank A- 3.50% 1/23/2024 2/15/2019 23 550,000.00 550,000.00 549,415.35 5.09% Charles Schwab A- 0.75% 3/18/2024 3/18/2021 78 195,000.00 194,993.15 192,926.18 5.71% Morgan Stanley A- 3.88% 4/29/2024 7/23/2019 120 550,000.00 552,152.49 546,661.50 5.71% Amazon.com Inc AA 0.45% 5/12/2024 5/12/2021 133 115,000.00 114,979.78 112,969.33 5.36% American Honda Finance A- 2.40% 6/27/2024 7/15/2019 179 575,000.00 574,719.37 566,419.28 5.52% Goldman Sachs BBB+ 3.85% 7/8/2024 7/11/2019 190 575,000.00 576,514.59 569,364.43 5.78% BB&T A- 2.50% 8/1/2024 8/5/2019 214 575,000.00 575,096.94 565,358.40 5.44% BMW Bank North America A 0.75% 8/12/2024 8/12/2021 225 130,000.00 129,997.61 126,434.62 5.33% Walt Disney A- 1.75% 8/30/2024 9/6/2019 243 600,000.00 599,674.50 585,708.00 5.43% Paccar Financial A+ 1.80% 2/6/2025 10/29/2020 403 335,000.00 338,891.71 324,061.25 4.88% Toyota Motor A+ 1.80% 2/13/2025 5/26/2020 410 285,000.00 285,660.58 275,414.03 4.92% Toyota Motor A+ 1.80% 2/13/2025 5/26/2020 410 65,000.00 65,214.65 62,813.72 4.92% Toyota Motor A+ 1.80% 2/13/2025 5/26/2020 410 100,000.00 100,231.78 96,636.50 4.92% American Express BBB+ 2.25% 3/4/2025 3/4/2022 429 155,000.00 154,938.87 150,015.98 5.09% Roche Holdings AA 2.13% 3/10/2025 3/10/2022 435 775,000.00 775,000.00 752,128.98 4.70% Home Depot A 2.70% 4/15/2025 3/28/2022 471 45,000.00 44,966.78 43,886.93 4.69% Cintas Corporation A- 3.45% 5/1/2025 5/3/2022 487 130,000.00 129,987.29 127,660.78 4.85% USAA Capital Corporation AA 3.38% 5/1/2025 5/26/2022 487 450,000.00 449,332.26 441,191.70 4.90% Apple Inc AA+ 1.13% 5/11/2025 5/13/2020 497 1,050,000.00 1,050,548.21 1,001,293.65 4.67% General Dynamics Corp A- 3.50% 5/15/2025 10/20/2020 501 425,000.00 439,059.88 417,364.45 4.86% JP Morgan Chase A- 0.82% 6/1/2025 6/1/2021 518 595,000.00 595,000.00 584,693.41 2.07% Amazon.com Inc AA 0.80% 6/3/2025 6/5/2020 520 725,000.00 724,898.92 686,912.13 4.65% National Australia Bank AA- 3.50% 6/9/2025 6/9/2022 526 485,000.00 485,000.00 476,798.65 4.73% National Rural Utilities Co Finance Corp A- 3.45% 6/15/2025 5/4/2022 532 100,000.00 99,987.40 97,936.10 4.93% IBM Corp A- 4.00% 7/27/2025 7/27/2022 574 450,000.00 450,000.00 444,986.55 4.74% Bank of America A- 3.88% 8/1/2025 8/20/2020 579 400,000.00 418,150.54 394,995.60 4.70% Abbott Laboratories AA- 3.88% 9/15/2025 9/28/2020 624 400,000.00 418,016.36 395,703.20 4.53% Bank of America A- 1.53% 12/6/2025 12/6/2021 706 500,000.00 500,000.00 480,656.50 3.62% JP Morgan Chase A- 2.60% 2/24/2026 2/24/2022 786 350,000.00 350,000.00 339,083.85 4.12%
City of Concord
Cash and Investment Detail
as of December 31, 2023
Issuer
S&P
Rating Coupon Maturity Purchased
Days to
Maturity Par Amount Adjusted Cost Market Value
Yield at
Market
UnitedHealth Group A+ 1.15% 5/15/2026 5/19/2021 866 475,000.00 474,607.62 439,743.60 4.48% BMW Bank North America A 1.25% 8/12/2026 8/16/2021 955 325,000.00 324,948.95 297,548.88 4.72% Caterpilar Inc. A 1.70% 1/8/2027 1/13/2022 1,104 450,000.00 448,623.52 415,987.65 4.40% Target Corp A 1.95% 1/15/2027 1/24/2022 1,111 80,000.00 79,916.92 74,654.56 4.32% Bank OF New York Mellon Corp A 2.05% 1/26/2027 1/28/2022 1,122 925,000.00 923,737.95 860,384.13 4.51% Berkshire Hathaway AA 2.30% 3/15/2027 3/17/2022 1,170 900,000.00 889,179.06 848,730.60 4.22% National Australia Bank AA- 3.91% 6/9/2027 6/13/2022 1,256 400,000.00 397,536.84 391,332.40 4.59% Astrazeneca Finance LLC A 4.88% 3/3/2028 3/3/2023 1,524 450,000.00 449,242.25 458,798.40 4.36% Walmart, Inc. AA 3.90% 4/15/2028 4/18/2023 1,567 310,000.00 309,510.28 307,023.38 4.15% Lockheed Martin Corporation A- 4.45% 5/15/2028 5/25/2023 1,597 70,000.00 69,889.33 70,328.72 4.33% Merck & Co Inc A+ 4.05% 5/17/2028 5/17/2023 1,599 180,000.00 179,872.47 179,427.96 4.13% John Deere Capital A 4.95% 7/14/2028 7/25/2023 1,657 450,000.00 453,135.09 461,419.20 4.33% Citigroup Inc A+ 5.80% 9/29/2028 10/4/2023 1,734 900,000.00 895,725.95 936,987.30 4.82% Corporate Notes Subtotal 714 17,600,000.00 17,638,939.89 17,151,857.83 4.68% Certificates of Deposit
Toronto Dominion Bank NY A 5.60% 10/27/2025 10/31/2022 666 850,000.00 850,000.00 866,307.35 4.43% Nordea Bank AA- 5.53% 11/3/2025 11/3/2022 673 850,000.00 850,000.00 844,231.05 5.92% Certificates of Deposit Subtotal 669 1,700,000.00 1,700,000.00 1,710,538.40 5.17% Other Investments
CalTrust Short Term Fund* AAf 4.94% 1/1/2024 12/31/2023 1 3,550,000.00 4,571,406.19 4,588,414.48 4.94% CalTrust Medium Term Fund* NR 4.41% 1/1/2024 12/31/2023 1 17,050,000.00 19,313,876.12 18,935,415.08 4.41% Other Investments Subtotal 1 20,600,000.00 23,885,282.31 23,523,829.56 4.51% Operating Total 160 372,737,811.08 374,644,827.91 373,110,911.43 4.56% *Values provided by the City of Concord
Trade Date Settle Date Transaction CUSIP Issuer Coupon Maturity Par Value Yield at
Market
Purchases
10/2/2023 10/4/2023 Buy 17325FBB3 CITIBANK NA CORP NOTES (CALLABLE) 5.80% 9/29/2028 (900,000.00) 5.92% 10/3/2023 10/6/2023 Buy 91282CFZ9 US TREASURY NOTES 3.88% 11/30/2027 (950,000.00) 4.84% 12/1/2023 12/5/2023 Buy 91282CFZ9 US TREASURY NOTES 3.88% 11/30/2027 (7,200,000.00) 4.24% Sales
10/2/2023 10/4/2023 Sell 172967JP7 CITIGROUP INC CORP NOTES 3.30% 4/27/2025 400,000.00 10/2/2023 10/4/2023 Sell 91282CBC4 US TREASURY NOTES 0.38% 12/31/2025 500,000.00 10/3/2023 10/5/2023 Sell 459058JM6 INTL BK RECON & DEVELOP NOTES 0.25% 11/24/2023 940,000.00 12/1/2023 12/5/2023 Sell 3130AJHU6 FEDERAL HOME LOAN BANK NOTES 0.50% 4/14/2025 600,000.00 12/1/2023 12/5/2023 Sell 3135G03U5 FANNIE MAE NOTES 0.63% 4/22/2025 600,000.00 12/1/2023 12/5/2023 Sell 4581X0DZ8 INTER-AMERICAN DEVEL BK NOTES 0.50% 9/23/2024 1,170,000.00 12/1/2023 12/5/2023 Sell 91282CBC4 US TREASURY NOTES 0.38% 12/31/2025 550,000.00 12/1/2023 12/5/2023 Sell 91282CBC4 US TREASURY NOTES 0.38% 12/31/2025 1,600,000.00 12/1/2023 12/5/2023 Sell 91282CBC4 US TREASURY NOTES 0.38% 12/31/2025 950,000.00 12/1/2023 12/5/2023 Sell 91282CBC4 US TREASURY NOTES 0.38% 12/31/2025 725,000.00 12/1/2023 12/5/2023 Sell 91282CBC4 US TREASURY NOTES 0.38% 12/31/2025 850,000.00 12/1/2023 12/5/2023 Sell 91282CBC4 US TREASURY NOTES 0.38% 12/31/2025 325,000.00 Paydowns
11/1/2023 11/1/2023 Paydown 3137BGK24 FHMS K043 A2 3.06% 12/1/2024 646.32 12/1/2023 12/1/2023 Paydown 3137BGK24 FHMS K043 A2 3.06% 12/1/2024 686.95 City of Concord
Investments Transactions Detail
October 1, 2023 - December 31, 2023
City of Concord
Operating Funds Investment Policy Report
as of December 31, 2023
Credit Quality
Minimum Permitted Rating Lowest Rated Security
(S&P)
U.S. Treasuries N/A AA+
Federal Agencies N/A AA+
Supranationals "AA" Category by a NRSRO AAA
Municipal Obligations "A" Category by a NRSRO A+
Corporate Notes "A" Category by a NRSRO BBB+
Commercial Paper Highest Short-Term Category NA
Certificates of Deposit "A" Category by a NRSRO A-1/A
Maturity Limits
Maximum Maturity Limit Maximum Maturity
U.S. Treasuries 5 Years 3.92 Years
Federal Agencies 5 Years 1.85 Years
Federal Agency CMBS 5 Years 0.92 Years
Supranationals 5 Years 0.00 Years
Municipal Obligations 5 Years 3.17 Years
Corporate Notes 5 Years 4.75 Years
Commercial Paper 270 Days 0.00 Years
Certificates of Deposit 5 Years 1.84 Years
Sector Allocations
Maximum Allocation Current Allocation
U.S. Treasuries 100% 13.4%
Federal Agencies 100% 1.0%
Federal Agency CMBS* 0% 0.1%
Supranationals 30% 0.0%
Municipal Obligations 30% 1.0%
Corporate Notes 30% 6.3%
Commercial Paper 20% 0.0%
Certificates of Deposit 30% 0.6%
For informational purposes only and is not provided for compliance assurance, and is formatted for the City's use. *Effective August 18, 2020, federal agency securitized securities (including but not limited to mortgage-backed securities, collateralized mortgage obligations, commercial mortgage backed-securities are no longer authorized for purchase. Investments purchased before this date may be held in the portfolio until maturity.
The current allocation calculation excludes funds in the LAIF-COP 2021 account, as bond proceeds are not subject to the City's Investment Policy sector limits, per California Government Code.
City of Concord
Operating Funds Investment Policy Report
as of December 31, 2023
During the reporting period for the quarter ended December 31, 2023 the account(s) managed by PFM Asset Management ('PFMAM') were in compliance with the applicable investment policy and guidelines as furnished to PFMAM.
Acknowledged : PFM Asset Management LLC
Note: Pre- and post-trade compliance for the account(s) managed by PFM Asset Management is provided via Bloomberg Asset and Investment Management ("AIM").
Investment Portfolio Benefits all Funds
The City’s cash and investment portfolio represents money from all City funds, including the General Fund, Enterprise funds, Capital Projects funds, and other funds, which are restricted to specific purposes.
In general, monies held by the City are allocated by the City Council for spending or are purposefully retained in reserves. For example, the money in the Capital Projects fund has been identified to provide particular capital projects for the community and there is a plan for spending down the cash balance as the projects progress. In the General Fund, approximately $24.2 million is purposely held in reserve to meet the City’s reserve policy of a minimum of 17% and a goal of 30% of operating expenditures. Due to the schedule of when the City receives revenues throughout the year, cash reserves typically dip in the months of July through December until the first installment of Property Taxes are received in December. Typically, 33% of our General Fund revenues are received as of December 31. Compliance with Reserve Policy is measured at the end of the City’s fiscal year, June 30.
Below is a chart showing the composition of the cash and investment portfolio included in the December 31, 2023 Treasurer’s Report. It is important to understand that the only money not already allocated (but not yet spent) or restricted for a specific purpose is the General Fund Emergency Reserve, which is shown in the pie chart on the chart below in gray.
Fund Descriptions:
General Fund is the City’s operating fund that accounts for general purpose revenues and expenses and are by definition unrestricted. The Cash and Investments in the General Fund is comprised of the following categories: 1) Assignments and Restrictions for obligations already entered into but not yet paid; 2) Advances to Other funds which primarily represe nt advances to the Local Reuse Authority for the Naval Weapons Station redevelopment project and to the Golf Course for improvements at that facility; and 3) Emergency Reserve funds that are retained per Council Policy to address financial uncertainties.
Enterprise Funds report operations that are operating in a manner similar to a private business enterprise.
The Sewer Fund is the largest fund in this category and is legally restrict ed to be used only for sewer related
activities.
Special Revenue Funds account for funds where the source of revenue is dedicated and restricted to a specific purpose. Housing funds, State Gas Tax funds and Assessment District funds represent examples of these types of funds.
Capital Projects Funds are used to track the financial resources set aside to acquire and/or construct major capital assets.
Internal Service Funds (ISF) are established to account for special activities and services performed by a designated department for other departments on a cost ‐reimbursement basis or replacement of necessary equipment. Exampl
es include Worker’s Compensation, Fleet Maintenance/Replacement, Information Technology, and Building Maintenance fund. Funds are restricted by policy through the City Council and spent in accordance with the program/equipment they are designated to support.
Trust Funds are used to account for assets held by the City as a trustee agen t for individuals, private organizations, and other governments. Examples include the City of Concord Retirement System Pension Fund and the Successor Agency Private Purpose Trust Fund.
Ord. No. 24-1 1
ORDINANCE NO. 24-1
AN ORDINANCE AMENDING SECTION 18.20.030 AND CHAPTER
18.185 OF THE CONCORD MUNICIPAL CODE TO ADDRESS UPDATES TO STATE DENSITY BONUS LAW AND EXPAND THE CITY’S
INCLUSIONARY HOUSING REQUIREMENTS
WHEREAS, Government Code Section 65800 et seq. provides for the amendment of any and all adopted City of Concord (“City”) zoning laws, ordinances, rules, and regulations; and WHEREAS, the State of California has found that local governments have a responsibility to facilitate the development of housing for all economic segments of the community (Government Code Section 65580(d)); and
WHEREAS, the Regional Housing Needs Allocation (RHNA) assigned to the City of Concord by the Association of Bay Area Governments requires that the City plan for 5,073 units of new housing between 2023 and 2031, including 2,883 units affordable to very low-, low-, and moderate-income households; and
WHEREAS, the City has not produced a sufficient number of affordable units to meet its RHNA in prior Housing Element cycles; and
WHEREAS, the State of California has provided limited funding for affordable housing construction, thereby requiring the private sector to participate in meeting the City’s RHNA; WHEREAS, the City currently does not have mechanisms in place to compel developers to include housing affordable to very low-, low-, and moderate-income households in future residential rental projects; and
WHEREAS, the median sales price of a home in City exceeded $835,000 in 2022, and the median rent for a two-bedroom apartment was $2,378, prices that are not affordable to lower-income households; and
WHEREAS, the shortage of affordable housing in the City has also led to insufficient supply of housing for the local workforce and student population, leading to overcrowding in some units, placing a cost burden on households, and long commutes as workers seek affordable housing in other communities; and
4.b4.b4.b
Ord. No. 24-1 2
WHEREAS, a stated Goal of the City’s Housing Element is to achieve a balanced supply of housing for all income groups; and
WHEREAS, legislation adopted in 2017 (AB 1505; Government Code Sections 65850(g) and 65850.01) authorizes cities to adopt inclusionary requirements for rental residential developments, provided that such ordinances provide alternative means of compliance; and WHEREAS, this Ordinance provides such alternative means of compliance; and WHEREAS, additional legislation adopted in 2017 (SB 686) requires that every jurisdiction in California affirmatively further fair housing by distributing opportunities for very low-, low-, and moderate-income housing in multiple locations rather than concentrating it in a single location, an outcome that is supported by this Ordinance; and
WHEREAS, the City has adopted a 2023-2031 Housing Element in compliance with state law that includes a goal of providing a balanced supply of housing types, densities, and prices to meet the needs of all income groups residing or who wish to reside in Concord; and WHEREAS, the City reached out to the a developer community to solicit input regarding assumptions in the feasibility analysis, the inclusionary housing requirement, and in-lieu fee; and WHEREAS, the City engaged in these discussions with the developer community as part of an economic feasibility study to ensure the levels of affordability set forth in this inclusionary housing ordinance would not unduly constrain the production of housing; and WHEREAS, on June 15, 2022, the City Council Committee on Housing and Economic Development provided the following input on the City’s inclusionary housing requirements:
1. For the required inclusionary units, create a blend of income levels, rather than selection of one income level (e.g. low-income households), as currently established.
2. Support for removing the 600-unit threshold precluding the application of the inclusionary housing requirements on rental projects.
3. The inclusionary in-lieu fees should be the economical equivalent to providing units onsite.
4. Retain the current threshold of the inclusionary housing requirements applying to
Ord. No. 24-1 3
projects of five or more units.
WHEREAS, on November 29, 2022, the City Council Committee on Housing and Economic Development met again and provided the following input on the Affordable Housing Ordinance:
1. Amend the City’s Density Bonus regulation to conform to state law.
2. For ownership projects, provide a total inclusionary requirement of 15% with 7.5% low- and 7.5% moderate-income units.
3. For rental projects, provide a total inclusionary requirement of 6% with 1% very low-, 1% low, and 4% moderate-income units.
4. Include within the City’s regulations an alternative housing proposal that would provide the same value of providing the units onsite or payment of the in-lieu fee to provide flexibility to the development community.
WHEREAS, the City finds that the housing supply shortage for persons of very low-, low-, and moderate-incomes is detrimental to the public health, safety and welfare and that it is a public purpose of the City, and a public policy of the State of California, to make an adequate supply of housing available for persons of all income groups; and WHEREAS, on July 19, 2023, the Planning Commission held a duly noticed public hearing to consider the proposed amendments related to affordable housing, received the staff report and staff presentation, received comments from the public and interested parties, and after closing the public comments portion discussed the matter (the “Planning Commission Information”); and WHEREAS, following the July 19, 2023, public hearing, the Planning Commission adopted Resolution No. 23-09PC, recommending that the City Council adopt proposed amendments to City of Concord Municipal Code (“Municipal Code”) at Sections 18.20.030, Definitions and Chapter 18.185, Affordable Housing, as contained in Exhibits A and B; and WHEREAS, the City has made the economic feasibility study available for at least 30 days on its website prior to adoption of this ordinance; and
WHEREAS, the City has considered the economic feasibility study on the agenda at regularly scheduled City Council meeting on January 23, 2024, prior to consideration and approval; and
Ord. No. 24-1 4
WHEREAS, the City Council, after giving all public notices required by state law and the Municipal Code, held a duly noticed public hearing on January 23, 2024, to consider this Ordinance; and
WHEREAS, at such public hearing, the City Council considered all oral and written information, testimony, and comments and at the public hearing, the oral report from City staff, the written report from City staff dated January 23, 2024, attached materials, exhibits presented, the Planning Commission Information, and all other information that constitutes the record of proceedings relating to the proposed Ordinance, which are maintained at the offices of the City of Concord City Clerk (collectively, “City Council Information”), and declared their intent to approve and adopt the Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES ORDAIN AS FOLLOWS:
Section 1. All of the facts set forth in the Recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.
Section 2. The City Council has reviewed, considered, and evaluated all of the Planning Commission Information, City Council Information, all other pertinent plans, documents, and testimony prior to acting upon Ordinance.
Section 3. The documents and other materials that constitute the record of proceedings upon which the City Council has based its decision are located in an may be obtained from the City of Concord Clerk’s Office, 1950 Parkside Drive, Concord, CA 94519.
Section 4. CEQA
The City Council finds that the proposed Municipal Code amendments are exempt from CEQA pursuant to Public Resources Code 21065 and CEQA Guidelines Section 15060(c)(2) or 15378 in that they do not constitute a “project” as defined by CEQA since they do not have the potential to result in either a direct physical change to the environment or a reasonably foreseeable indirect physical change to the environment.
If the Ordinance did constitute a “project” under CEQA, the Ordinance falls within the
Ord. No. 24-1 5
“common sense” exemption set forth in 14 Cal. Code Regs. Section 15061(b)(3), excluding project where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment…” Therefore, the proposed Municipal Code amendments do not warrant further environmental review. This determination reflects the City’s independent judgement and analysis.
Section 5. Development Code Amendment Findings
1) The proposed amendment is consistent with the general plan.
The project consists of amendments to the existing Affordable Housing Ordinance, which is in conformance with the General Plan by providing a balanced supply of housing types and prices to meet the needs for all economic segments of the community. The Ordinance is also internally consistent with all other provisions and elements of the General Plan. 2) The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the city; and
The amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City because it would merely require units to be set aside in a housing project for lower-income households. The housing projects would be required to comply with all other federal, state, and local laws; therefore, will not be detrimental. 3) Zoning map amendments shall also find that the affected site is physically suitable, including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities, for the requested zoning designation and proposed or anticipated uses and/or development.
This amendment does not include any amendments to the zoning map.
Section 6. The City Council does hereby pass and adopt this Ordinance No. 24-1.
Section 7. Municipal Code, Title 18 (Development Code) Section 18.20.030 (Definitions) and Chapter 18.185, is hereby amended to revise the Affordable Housing Definitions therein as set forth in Exhibits A and B attached here to and made a part hereof.
Section 8. The City Council does hereby repeal Resolution 16-6042.5.
Ord. No. 24-1 6
Section 9. This Ordinance No. 24-1 shall become effective thirty (30) days following its passage and adoption. In the event a summary of said Ordinance is published in lieu of the entire Ordinance, a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to its adoption and within fifteen (15) days after its adoption, including the vote of the Councilmembers. Additionally, a summary prepared by the City Attorney’s Office shall be published once at least five (5) days prior to the date of adoption of this Ordinance and once within fifteen (15) days after its passage and adoption, including the vote of the Councilmembers, in the East Bay Times, a newspaper of general circulation in the City of Concord.
Edi E. Birsan
Mayor
ATTEST:
Joelle Fockler, MMC
City Clerk
(Seal)
//
//
//
//
//
//
//
//
//
Ord. No. 24-1 7
Ordinance No. 24-1 was duly and regularly introduced at a regular meeting of the City Council of the City of Concord held on January 23, 2024, and was thereafter duly and regularly passed and adopted at a regular meeting of the City Council of the City of Concord on February 13, 2024, by the following vote:
AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers -
I HEREBY CERTIFY that the foregoing is a true and correct copy of an ordinance duly and regularly introduced, passed, and adopted by the City Council of the City of Concord, California.
Joelle Fockler, MMC
City Clerk
Attachments:
Exhibit A: CMC Section 18.20.030 Definitions
Exhibit B: CMC Chapter 18.185 Affordable Housing (Redline)
Concord Municipal Code
Exhibit A
18.20.030 Definitions.
Affordable Housing Definitions.
“Affordable Housing Agreement” means a legally binding agreement between a developer and the City to ensure that the requirements of CDC Chapter 18.185 are satisfied. The agreement, among other things, shall establish: the number of affordable units, their size, location, terms, conditions of affordability, and production schedule.
“Affordable ownership cost” means a sale price that results in a monthly housing cost (including mortgage principal and interest, property taxes, utilities, property insurance and homeowners’ association fees, if any) that does not exceed one-twelfth of 35 percent of the maximum annual income for a household of the applicable income level (very low, low or moderate income). “Affordable ownership unit” means an ownership dwelling unit that is offered for purchase at an affordable ownership cost only to moderate-, low-, or very low-income household. “Affordable rent” means monthly rent (including utility costs based on utility allowances determined annually by the Contra Costa Housing Authority) that does not exceed one-twelfth of 30 percent of the maximum annual income for a household of the applicable income level (very low, low or moderate income).
“Affordable rental unit” means a rental dwelling unit that is offered for rent at an affordable rent only to a moderate-, low-, or very low-income household.
“Affordable unit” means a dwelling unit that has a sales price or rent restricted by CDC Chapter
18.185.
“Affordable sales price” means a sales price at which moderate-, low-, or very low-income households can qualify for the purchase of an affordable unit, calculated on the basis of underwriting standards of mortgage financing available for development, with appropriate adjustments for household size.
“Area median income” means the median income for Contra Costa County, adjusted for household size, as established pursuant to California Code of Regulations, Title 25, Section 6932 (or its successor provision).
“Child care facility,” as used in Chapter 18.185 CDC, means a child care facility other than a family day care home, including but not limited to infant centers, preschools, extended day care facilities, and school age child care centers.
“Density bonus” means an increase in the number of dwelling units authorized for a particular parcel of land above the maximum residential density as provided for in Density Bonus Law as incorporated into this code by CDC 18.185.050.
“Density Bonus Law” means Government Code Section 65915 et seq., as amended from time to time, and incorporated into this code by CDC 18.185.050. “Density bonus unit” means residential units which exceed the otherwise maximum residential density for the development site.
The Concord Municipal Code is current through Ordinance 22-13, passed December 6, 2022. “Economically feasible” means when a housing project can be built with a reasonable rate of return.
The housing developer’s financial ability to build the project shall not be a factor. “For-sale project” means a residential project, or portion thereof, that includes the creation of one or more residential living units that may be sold individually, including a condominium, stock cooperative, community apartment, or attached or detached single-family home. “Household income” means the combined adjusted gross income for all adult persons living in a living unit.
“Housing cost” means the sum of actual or projected monthly payments for all of the following associated with for-sale affordable units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowners’ association fees, and a reasonable allowance for utilities. “Inclusionary unit” means an affordable unit that has a sales price or rent restricted by Chapter
18.185 CDC.
“Low-income household” means a household whose combined annual income does not exceed the qualifying limit of 80 percent of area median income, adjusted for household size, for “lower income households” established pursuant to Health and Safety Code Section 50079.5. “Market-rate unit” means a dwelling unit that is not legally restricted in terms of price or rent. “Mixed income” means a project which includes a combination of affordable and market rate units.
At least 40 percent of the units in such a project must be affordable to very low-, low- or moderate-income households.
“Moderate-income household” means a household whose combined annual income does not exceed the qualifying limit of 120 percent of area median income, adjusted for household size, for “persons and families of low or moderate income” established pursuant to Health and Safety Code Section 50093.
“Ownership project” means a development project containing single-family detached dwelling units or multifamily dwelling units (e.g., condominiums, townhouses or duets) that will be offered for sale, not for rent.
“Qualified households” means a household which meets the specified eligibility criteria for a particular type of affordable housing unit.
Qualifying Affordable Housing (or Mixed Income) Project. For the purposes of CDC 18.185.060 (Affordable housing incentive program), this includes:
A. A rental project in which at least 40 percent of the units are affordable to low- or very low-income households. At least half of these units, or 20 percent of the units in the total project, must be affordable to very low-income households; or
B. A for-sale project in which at least 40 percent of the units are affordable to moderate-, low-, or very low-income households. At least half of these units, or 20 percent of the total units in the project, must be affordable to low- or very low-income households. “Rehabilitate (Rehabilitated Unit)” means rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value.
The Concord Municipal Code is current through Ordinance 22-13, passed December 6, 2022. “Rental project” means a development project containing single-family detached dwelling units or multifamily dwelling units (e.g., apartments, condominiums, townhouses, or duets) that will be offered for rent, not for sale.
“Residential development project” means any development project that includes the construction of one or more dwelling units, including exclusively residential and mixed-use projects. “Review authority” means the individual, department, commission, or elected body authorized to make the final decision on an application pursuant to Chapter 18.150 CDC. “Senior citizen” means persons who are:
A. At least 62 years of age; or
B. At least 55 years of age in a senior citizen housing development, as defined by state and federal law.
“Senior citizen housing” means residential development of one of the following types:
A. Assisted housing units for senior citizens; or
B. Housing intended for, and solely occupied by, persons at least 62 years of age; or C. Residential units developed, substantially rehabilitated, or substantially renovated for, senior citizens with at least 35 dwelling units and meets the reporting requirements of state and federal law.
Eligibility for a density bonus or other incentive for senior citizen units must be in conformity with state and federal laws governing senior housing projects. “Very low-income household” means a household whose combined annual income does not exceed the qualifying limit of 50 percent of area median income, adjusted for household size, for “very low-income households” established pursuant to Health and Safety Code Section 50105.
Exhibit B
Concord Municipal Code
Chapter 18.185 AFFORDABLE HOUSING
Chapter 18.185
AFFORDABLE HOUSING
Sections:
18.185.010 Purpose.
18.185.020 Applicability.
18.185.030 Review authority.
18.185.040 Inclusionary housing requirements.
18.185.050 Density bonus program.
18.185.060 Affordable housing incentive program.
18.185.070 Affordable housing agreements.
18.185.080 Application requirements and review.
18.185.090 Duration of affordability.
18.185.100 Compliance monitoring fees.
18.185.010 Purpose.
A. The purpose of this chapter is to facilitate and encourage the development of housing affordable to a broad range of households with varying income levels within the City. It is intended to implement the City’s general plan housing element policies and programs pertaining to providing housing to all economic segments, with specific focus on addressing the need for housing affordable to very low-, low-, and moderate-income households. In addition, this chapter is intended to ensure that at least a minimum percentage of units affordable to very low-, low-, and/or moderate-income households is included within new residential developments and that appropriate incentives are established to encourage the inclusion of affordable units beyond the stated minimum. This chapter is further intended to allow for density bonuses and related incentives consistent with state Density Bonus Law.
B. Terms referenced in this section are defined in CMC 18.20.030 under the subheading “Affordable Housing Definitions.” [Ord. 12-4. DC 2012 § 122-576].
18.185.020 Applicability.
A. The provisions of this chapter apply to residential development projects. More specific applicability provisions are noted below:
1. CMC 18.185.040 (Inclusionary housing requirements) requires the inclusion of a minimum percentage of affordable housing units in all projects with five or more units, with the exception of projects noted in CMC
18.185.040(B). Alternative measures for compliance with this section, including, but not limited to, the payment of in-lieu fees or providing off-site affordable units are provided in the event that development of inclusionary units as part of the project is not feasible.
2. CMC 18.185.050 (Density bonus program) allows increased housing densities with a corresponding increase in affordable housing units consistent with state of California density bonus requirements.
3. CMC 18.185.060 (Affordable housing incentive program) includes incentives for projects incorporating affordable units and permits density bonuses above those provided under CMC 18.185.050, in accordance with the Concord housing element. CMC 18.185.060 is only applicable in specified districts where high density multifamily housing and residential mixed-use development is permitted. The provisions of CMC 18.185.060 are intended as an alternative to those in CMC 18.185.050 for qualifying projects, and are not cumulative.
Projects using the density bonus provisions of CMC 18.185.060 are not eligible for additional bonuses under CMC 18.185.050.
B. Affordable housing units are units which are specifically designated for very low-, low-, or moderate-income households.
C. The standards in this chapter are supplemental to, and supersede when in conflict with, the standards in the applicable districts in Division II of this title (Zoning Districts – Uses and Standards) and in other divisions of the development code, except that the provisions of CMC Chapter 18.530 (Nonconforming Uses, Structures, and Parcels) and Chapter 18.535 (Nonconforming Physical Improvements/Property Upgrades) shall apply in all cases. [Ord. 12-4. DC 2012 § 122-577].
18.185.030 Review authority.
A. The Community Development Department shall be the review authority for residential development projects containing affordable housing units. All applications for density bonuses, concessions, incentives, and waivers shall be reviewed by the Community Development Director.
B. Design and site review, as described in CMC Chapter 18.415, is required unless exempted under Section
18.405.030 for all new affordable housing developments in all districts. This includes projects in which only a portion of the units are designated as affordable as well as those that are 100 percent affordable.
C. Projects containing affordable housing units are subject to all permit requirements and permitting procedures established by Division VII of this title (Permits and Permit Procedures). All predevelopment and public notice provisions established by that division shall apply.
D. The review authority for density bonuses and for the modifications to development standards identified in CMC
18.185.060 shall be the Community Development Department. The review authority may deny a density bonus by making those findings required by state Density Bonus Law. Such denials are appealable to the City Council. As indicated by Division VII of this title (Permits and Permit Procedures), Planning Commission and/or City Council approval shall only be required where a use permit or major subdivision approval is required, where a decision is being appealed, or where actions related to financial incentives or agreements are included. [Ord. 12-4. DC 2012 § 122-578].
18.185.040 Inclusionary housing requirements.
A. Applicability. The following requirements shall apply to all residential development projects of five or more units. No application for a general plan amendment, rezoning, tentative subdivision map, parcel map, use permit, design and site review, hillside development use permit, planned development use permit, or building permit for a new residential development project shall be approved, nor shall any such new residential development project be constructed or occupied, without compliance with this chapter, except as noted in subsection (B) of this section (Exemptions).
1. All residential ownership projects, including condominiums, and rental projects shall either include the minimum number of inclusionary units required under subsection (C) of this section (Required Number of Inclusionary Units), or provide an alternative means of compliance pursuant to subsection (D) of this section (Alternative Means of Compliance).
2. If inclusionary housing units are provided an Affordable Housing Agreement governing the number, size, and location of affordable units, and terms of their use, shall be required pursuant to CMC 18.185.070.
B. Exemptions. This chapter shall not apply to the following:
1. A residential project consisting solely of the construction of one to four single-family dwelling units; or
2. The reconstruction of any dwelling units that were destroyed by a fire, flood, earthquake, or other act of nature; or
3. A development project that is converting an existing office building that has been available for commercial uses for a minimum of five years to a residential use.
C. Required Number of Inclusionary Units.
1. Basic Requirement. The affordability and required number of inclusionary units to be provided shall vary depending upon the total number of dwelling units in the project in accordance with Table 18.185.040.
Table 18.185.040
Required Percentage of Inclusionary Units
Project Size and Type Inclusionary Requirement
Residential Ownership Projects 15% of the total number of ownership units within a residential development project shall be inclusionary units (7.5% of all units in the project shall be low-income units and 7.5% of all units in the project shall be moderate-income units). The first inclusionary unit shall be a moderate-income unit, the second shall be a low-income unit, and this pattern shall then repeat for all subsequent inclusionary units.
Residential Rental Projects 6% of the total number of rental units in a residential development project shall be inclusionary units (1% of all units in the project shall be very low-, 1% of all units in the project shall be low-, and 4% of all units in the project shall be moderate-income units). The first inclusionary unit shall be a moderate-income unit, the second inclusionary unit shall be a low-income unit, the third unit shall be a moderate-income unit, the fourth unit shall be a very-low income unit, the fifth and six units shall be moderate-income units, and this pattern shall then repeat for all subsequent inclusionary units.
2. Density Bonus Units. Affordable units under Density Bonus Law and meeting the levels of affordability in Table 18.185.040 shall count toward meeting the number of inclusionary units required under this section.
3. Fractional Units. When the application of the percentages set forth above (15% for residential ownership and 6% for residential rental) results in a number that includes a fractional unit, the fraction shall be rounded up to the next whole number if the fraction is one-half or more. If the result includes a fraction below one-half, the developer shall have the option of either rounding up to the next whole number and providing an additional inclusionary unit, or paying an in-lieu fee calculated by multiplying the fractional unit amount by the in-lieu fee set forth by that resolution per CMC 18.185.040(D)(1).
4. Projects of Five to Nine Units. The developer of a residential project containing from five to nine units, inclusive, shall have the option of either providing one inclusionary unit or selecting an alternative means of compliance. If a developer selects to pay an in-lieu fee, the amount shall be in conformance with subsection (C)(3) (Fractional Units) of this section.
D. Alternative Means of Compliance.
As an alternative to providing the required number of inclusionary units on-site, a developer may select an alternative below to achieve compliance with this section.
1. In-Lieu Fees.
a. Amount. For residential rental projects, Aa fee may be paid in lieu of providing inclusionary units onsite for a residential project. For residential ownership projects, payment of the in-lieu fee is only allowed for fractional units and for projects comprised of five to nine units. The fee shall be set by resolution of the City Council and shall be an amount sufficient to pay the proportionate cost of providing inclusionary units elsewhere in the City. The fee may be periodically reviewed and updated by the City. b. Use. All fee revenues shall be deposited in a restricted fund dedicated for the development of housing affordable to very low-, low-, and/or moderate-income households. Fees may also be used for administration of City affordable housing programs and to administer fair housing requirements for affordable units. c. Timing of Payment. In-lieu fees shall be paid prior to issuance of a building permit or as otherwise provided in the conditions of approval.
d. Purpose of In-Lieu Fees. Any in-lieu fee adopted by the City Council is an alternative to the provision of on- site inclusionary units as otherwise required by subsection (C) of this section to ensure a more balanced housing supply for the general welfare of the public. The in-lieu fee may only be combined with providing inclusionary units onsite when it is in lieu of providing a fractional unit below one-half.
2. Rental Alternative. As an alternative to providing ownership inclusionary units onsite in residential ownership projects as required by CMC 18.185.040, and pursuant to Government Code Section 65589.8, the developer of a residential ownership project may provide rental inclusionary units. In such cases, the number of rental inclusionary units shall be provided at the same percentage as required for residential rental projects, pursuant to Table
18.185.040. To ensure compliance with the Costa-Hawkins Act (Civil Code Sections 1954.51 through 1954.535), the City may only approve such a proposal if the developer agrees in an Affordable Housing Agreement with the City to limit rents in consideration for a direct financial contribution or other form of assistance specified in Density Bonus Law.
3. Off-Site Alternatives.
a. As an alternative to the provision of on-site inclusionary units pursuant to this chapter, a developer for a residential project may propose a plan for providing affordable housing units at an off-site location within the City of Concord, as follows:
i. Acquire existing unrestricted multifamily units located elsewhere within the City and substantially rehabilitate those dwelling units. At least two rehabilitated dwelling units shall be provided for each inclusionary unit required pursuant to this chapter.
ii. Construct new affordable residential dwelling units. At least two new dwelling units shall be provided for each inclusionary unit required pursuant to this chapter. b. Any new or rehabilitated dwelling units shall be regulated pursuant to an Affordable Housing Agreement, as applicable, between the developer and the City pursuant to CMC 18.185.070 (Affordable housing agreements). c. All off-site inclusionary units must be rehabilitated or constructed and occupied prior to or concurrently with the market-rate units for the related residential project. For phased residential projects, the required number of inclusionary units at each affordability level per phase shall be constructed and occupied in proportion to the total number of dwelling units in each phase of the project.
4. The developer may partner with a nonprofit affordable housing provider to meet its inclusionary housing obligations through one of the alternatives set forth in this subsection.
5. Authority to act on off-site alternative proposals shall rest with the final review authority regarding the underlying application.
E. Design Standards. The following design standards shall apply to all inclusionary units constructed pursuant to this chapter:
1. Inclusionary units shall be dispersed throughout the residential project and shall have access to all on-site amenities that are available to market rate units.
2. The construction quality and exterior design of inclusionary units shall be the same as the market-rate units by including the same exterior materials, roof forms and pitches, window treatments, and landscaping.
However, inclusionary units may be smaller in unit and lot size by 15% of the average square footage of the market-rate units and lot and have alternative interior finishes.
3. The average number of bedrooms for all inclusionary units must be equivalent to the average number of bedrooms for market rate units within the same residential project. When the average bedroom count results in a fraction, rounding shall occur pursuant to CMC 18.10.050(H).
F. Timing of Construction and Occupancy. All inclusionary units must be constructed and occupied prior to or concurrently with the market-rate units within the same residential development project. For phased residential
development projects, the required number of inclusionary units at each affordability level per phase shall be constructed and occupied in proportion to the total number of dwelling units in each phase of the project.
G. Development Incentives.
1. The City may grant one or more of the following affordable housing development incentives in order to mitigate the financial impact of this chapter’s requirements on a particular residential project:
a. Provision of housing set-aside funds, tax exempt financing, or other financial assistance, as approved by the City Council.
b. A density bonus, incentive, concession, and/or waiver authorized pursuant to Density Bonus Law. c. Modification of zoning or development standards as described in CMC 18.185.060 (Affordable housing incentive program) for projects seeking a density bonus above and beyond the inclusionary housing requirements, as negotiated with and approved by the City. Authority to act on a request for these development incentives shall rest with the final review authority regarding the underlying application. d. Expedited processing of a development application and/or deferral of development fees, as authorized by the City Manager or designee. The terms and payment schedule for any deferred development fees shall be subject to the approval of the City Manager or designee and shall be incorporated into an Affordable Housing Agreement. Fees shall not be deferred any later than occupancy of the first dwelling unit in the residential project.
2. No development incentive shall be provided by the City pursuant to this section unless the developer enters into an Affordable Housing Agreement consistent with CMC 18.185.070.
I. Waivers or Adjustments. The City Council may approve a reduction or waiver of the requirements of this chapter for residential projects which: (1) are the subject of a disposition and development agreement, owner participation agreement, acquisition agreement, or other arrangement with the City of Concord; and (2) are receiving assistance from the City of Concord, such as relocation of occupants, acquisitions and disposition of land for site assemblage, use of eminent domain, write-down of land costs, fee waivers, or other forms of direct City assistance. The City may also adjust or waive the requirements of this chapter if the developer demonstrates that its strict application would affect a taking of private property without just compensation or otherwise constitute a violation of the United States Constitution, California Constitution or other applicable federal or state laws. Any developer requesting a reduction or waiver must submit a pro forma and such other financial analysis sufficient to support a determination that the reduction or waiver is necessary to ensure the economic feasibility of the project. Consistent with its responsibilities under the Public Records Act, the City shall take reasonable steps to protect the confidentiality of any proprietary financial information submitted by the developer.
J. Allocation Priority. In the event that there exists a greater number of qualified persons than the number of available inclusionary units for any residential project subject to this chapter, then first priority for allocating available inclusionary units shall be given to qualified purchasers or renters who live or work within the City of Concord. [Ord. 12-4. DC 2012 § 122-579].
18.185.050 Density bonus program.
A. Purpose. The purpose of this chapter is to provide incentives for the production of housing for lower income households (which, as set forth in California Health and Safety Code Section 50079.5(b), includes very low and extremely low-income households) and senior citizen households in accordance with Density Bonus Law. Density Bonus Law directs the City to provide density bonuses and/or other concessions or incentives under certain circumstances, in order to encourage the construction of low income housing. Other concessions or incentives, for example, could include the reduction or waiver of permit fees and/or utility fees and/or the provision of financial assistance in constructing public improvements. Density Bonus Law also directs the City to adopt an ordinance specifying how the City will comply with these provisions.
B. Applicability. The City may grant a density bonus for projects meeting the requirements of Density Bonus Law.
C. Review Procedure.
1. The developer shall submit to the Community Development Department all materials as required by the checklist.
2. The review authority shall evaluate the application based on the following criteria:
a. The potential for the density bonus project to achieve the City's affordable housing goals as set forth in the housing element of the general plan;
b. The extent to which requested incentives or concessions are necessary to make the project economically feasible;
c. The compatibility of the project's development pattern with other land uses in the vicinity; and d. The project's compliance with the City's general plan, zoning, and development policies.
3. The review authority shall grant the incentives and concessions unless written findings can be made, based on substantial evidence, as specified in Density Bonus Law.
4. An executed Affordable Housing Agreement is required for all residential developments for which a density bonus and/or incentives, concessions, or waivers of development standards have been approved prior to the issuance of a building permit. The agreement shall be filed and recorded as a deed restriction on the property. The City shall provide periodic monitoring of compliance with the provisions of the deed restriction.
18.185.060 Affordable housing incentive program.
A. Purpose. The purpose of the affordable housing incentive program is to provide incentives above and beyond those offered by the density bonus program in CMC 18.185.050 (Density bonus program) in order to encourage the development of affordable and mixed income housing, consistent with the Concord housing element. The development standards listed in this section modify those established in other applicable divisions of the development code. The standards are intended to help Concord meet its fair share of the region’s affordable housing needs while improving and complementing the design of surrounding neighborhoods, protecting the use and enjoyment of neighboring properties, and promoting economic and environmental sustainability.
B. Applicability.
1. The provisions of this section shall apply to residential and mixed-use projects in the RM (residential medium density), RH (residential high density), community office (CO), NC (neighborhood commercial), CMX (commercial mixed-use), DMX (downtown mixed-use), and DP (downtown pedestrian) districts.
2. Where parcels within these districts are also covered by a transit station overlay designation and are proposed for qualifying affordable housing developments, the provisions in this section relating to additional density, additional floor area ratio, and reduced parking shall supersede those in Chapter 18.105 CMC (Transit Station Overlay District (TS)).
3. Where parcels within these zones are also covered by an airport overlay designation, all requirements of Chapter 18.100 CMC (Airport Overlay District (A)) shall apply.
4. Projects utilizing the density bonus provisions in this section are not eligible for additional density bonuses pursuant to CMC 18.185.050. The intent of the affordable housing incentive program is to provide an alternative to the density bonus program, and the bonuses are not additive.
C. Eligibility. The provisions of this section shall apply to all projects in eligible zoning districts meeting the following criteria:
1. For rental projects, at least 20 percent of the units in the project must be affordable to very low income households. Another 20 percent must be either affordable to low or very low income households. The total percentage of affordable units in the project must be at least 40 percent.
2. For for-sale projects, at least 20 percent of the units must be affordable to low or very low income households. Another 20 percent must be affordable to households earning up to the area wide median income (e.g., 100 percent AMI). The total percentage of affordable units in the project must be at least 40 percent.
3. Development projects exceeding the affordability thresholds identified in subsection (C)(1) and (2) of this section are eligible for the provisions of this section.
4. A minimum parcel area of at least 10,000 square feet (prior to any subdivision associated with the proposed project) is required for a project to be eligible for the provisions of this section.
D. Increased Density and Floor Area Ratio. Qualifying affordable and mixed income housing developments may utilize the density and FAR standards in Table 18.185.060(A), in lieu of the density and FAR standards in Division II of this title.
Table 18.185.060(A)
Increased Density and Floor Area Ratio (FAR) Provisions for Qualifying Affordable Housing and Mixed Income Developments (1) Zone Maximum Base Density (specified
in Division II of this title)
Modified Density for Qualifying
Projects
Maximum Base FAR
(specified in Division II
of this title)
Modified FAR for
Qualifying Projects(2)
RM 1 unit per 1,360 SF lot area (32
DU/AC)
1 unit per 970 SF lot area (40
percent bonus)
N/A N/A
RH 1 unit per 435 SF lot area (100
DU/AC)
1 unit per 300 SF lot area (45
percent bonus)
N/A N/A
NC 1 unit per 1,815 SF lot area (24
DU/AC)
1 unit per 1,300 SF lot area (40
percent bonus)
0.35 1.0
CO 1 unit per 1,360 SF lot area (32
DU/AC)
1 unit per 970 SF lot area (40
percent bonus)
1.0 1.4
CMX 1 unit per 1,090 SF lot area (40
DU/AC)
1 unit per 750 SF lot area (45
percent bonus)
1.0 1.5
DMX 1 unit per 435 SF lot area (100
DU/AC)
1 unit per 300 SF lot area (45
percent bonus)
6.0 6.0
DP 1 unit per 435 SF lot area (100
DU/AC)
1 unit per 300 SF lot area (45
percent bonus)
4.0 4.0
TS overlay Add 25 percent to base densities
above
Where 40 percent bonus is indicated
above, replace with 50 percent.
Where 45 percent bonus is indicated
above, replace with 55 percent.
Add 25 percent to base
FAR above
Add 20 percent to
base FAR above
(1) All densities are based on net developable area, excluding streets and unbuildable portions of the property. (2) FAR applies to mixed -use projects only. Projects that are 100 percent residential are not subject to an FAR requirement.
E. Lot Area and Dimension. Qualifying affordable and mixed income housing developments may utilize the lot area and dimension standards in Table 18.185.060(B), in lieu of the lot area and dimension standards in Division II of this title.
Table 18.185.060(B)
Modified Lot Area and Lot Dimension Standards for Qualifying Affordable Housing and Mixed Income Developments (*)
Zone
Base Minimum
Lot Size (as
specified in
Division II of this
title)
Modified
Minimum Lot
Size for
Qualifying
Projects
Base Minimum Lot
Width (as specified
in Division II of
this title)
Modified
Minimum Lot
Width for
Qualifying Projects
Base Minimum Lot
Depth (as specified
in Division II of
this title)
Modified
Minimum Lot
Depth for
Qualifying
Projects
RM 1,920 (detached)
1,440 (attached)
1,800 (detached)
1,200 (attached)
24 feet (detached)
18 feet (attached)
22 feet (detached)
16 feet (attached)
80 feet (detached)
60 feet (attached)
70 feet
(detached)
50 feet (attached)
RH 5,000 4,000 50 feet 40 feet 100 80 feet
NC 10,000 10,000 100 feet 100 feet 100 feet 100 feet
CO 10,000 5,000 100 feet 50 feet 100 feet 80 feet
CMX 10,000 5,000 100 feet 50 feet 100 feet 80 feet
DMX 10,000 5,000 100 feet interior
110 feet corner
50 feet interior
60 feet corner
100 feet 80 feet
DP 5,000 4,000 50 feet interior
60 feet corner
40 feet interior
50 feet corner
100 feet 80 feet
TS overlay N/A N/A N/A N/A N/A N/A
(*) Lots smaller than the standards listed here may be created within a multifamily development that is subdivided into individual fee-simple units.
F. Lot Coverage. Qualifying affordable and mixed income housing developments in the RM and RH districts may utilize the lot coverage standards in Table 18.185.060(C), in lieu of the lot coverage standards in Division II of this title.
Table 18.185.060(C)
Modified Lot Coverage Standards for Qualifying Affordable Housing and Mixed Income Developments(*)
Zone Base Maximum Lot Coverage (as specified in Division II of this title)
Modified Maximum Lot Coverage for Qualifying
Projects
RM 60 percent (detached)
80 percent (attached)
70 percent (detached)
85 percent (attached)
RH 75 percent 85 percent
(*) For RM and RH zones only. Development in NC, CMX, DP, and DMX is not subject to lot coverage standards. Lot coverage for RH is for the entire project site. Where an RH site is subdivided into small fee simple parcels (e.g., condominiums), there is no lot coverage limit for the individual units.
G. Height. Qualifying affordable and mixed income housing developments may utilize the height standards in Table
18.185.060(D), in lieu of the height standards in Division II of this title.
Table 18.185.060(D)
Modified Height Standards for Qualifying Affordable Housing and Mixed Income Developments
Zone Base Maximum Height (as specified in Division II of this title) Modified Maximum Height for Qualifying Projects RM 4 stories/40 feet 45 feet
RH 6 stories/60 feet 75 feet
NC 40 feet 45 feet
CO 30 feet 45 feet
CMX 30 feet 45 feet
DMX 200 feet 200 feet
DP 70 feet 85 feet
TS overlay N/A Add 20 percent to figures above
H. Setbacks. Qualifying affordable and mixed income housing developments shall be eligible for a 20 percent reduction in the setback standards that are otherwise required for each zone under Division II of this title, except as noted in subsection (I) of this section (Transitional Requirements). In the DMX zone, a 50 percent reduction in the required front setback shall be permitted (five feet instead of 10 feet).
I. Transitional Requirements. Qualifying affordable and mixed income housing developments shall be subject to all transitional requirements established by CMC 18.150.180 (Transitional requirements), including height limits and setbacks on properties abutting lower density residential zones.
J. Open Space. Qualifying affordable and mixed income housing developments may utilize the open space standards in Table 18.185.060(E), in lieu of the open space standards in CMC 18.150.100.
Table 18.185.060(E)
Modified On-Site Open Space Requirements for Qualifying Affordable Housing and Mixed Income Developments
Zone
Base On-Site Open Space Sq. Ft./Unit
(As Specified in Division II of This
Title)
Modified On-Site Open Space/Unit for
Qualifying Projects
Modified On-Site Open Space/Unit for
Qualifying Projects if within 500 Feet
of a Public Park One Acre or Larger
RM 200 SF/unit, 60 SF of which must be
private (*)
175 SF/unit, 60 SF of which must be
private
150 SF/unit, 60 SF of which must be
private
RH 200 SF/unit, 60 SF of which must be
private
125 SF/unit, 50 SF of which must be
private
100 SF/unit, 40 SF of which must be
private
NC 200 SF/unit, 60 SF of which must be
private
150 SF/unit (private and/or common) 125 SF/unit (private and/or common) CO 200 SF/unit, 60 SF of which must be
private
150 SF/unit (private and/or common) 125 SF/unit (private and/or common) CMX 200 SF/unit, 60 SF of which must be
private
150 SF/unit (private and/or common) 125 SF/unit (private and/or common) DMX 200 SF/unit, 60 SF of which must be
private
100 SF/unit (private and/or common) 75 SF/unit (private and/or common) DP 200 SF/unit, 60 SF of which must be
private
100 SF/unit (private and/or common) 75 SF/unit (private and/or common)
Zone
Base On-Site Open Space Sq. Ft./Unit
(As Specified in Division II of This
Title)
Modified On-Site Open Space/Unit for
Qualifying Projects
Modified On-Site Open Space/Unit for
Qualifying Projects if within 500 Feet
of a Public Park One Acre or Larger
TS overlay No further reduction beyond what is
specified above
No further reduction beyond what is
specified above
No further reduction beyond what is
specified above
(*) Higher standards apply in small lot subdivisions. See Chapter 18.155 CMC.
K. Parking.
1. Qualifying affordable and mixed income housing developments may utilize the parking standards in Table
18.185.060(F), in lieu of the parking requirements in Division IV of this title.
Table 18.185.060(F)
Modified Parking Standards for Qualifying Affordable Housing and Mixed Income Developments
Bedroom Count Base Parking Standards
Modified Parking Standards for
Qualifying Affordable Housing
Developments
Modified Parking Standards for
Qualifying Affordable Housing
Developments within 0.5 Mile of
BART
Studio 1 0.67 0.5
1 bedroom 1.5 1 0.75
2 bedroom 2 1.5 1
3+ bedroom 2.5 spaces, plus 0.5 space for each
additional bedroom above 3
1.75 spaces plus 0.25 spaces for each
additional bedroom above 3
1.25 spaces plus 0.25 spaces for each
additional bedroom above 3
Guest spaces 1 space for each four units None required None required TS overlay Can reduce above requirements
by 25 percent
Can reduce above requirements as
noted in the last column of this table
N/A
2. As indicated in Chapter 18.160 CMC (Parking, Loading, and Access), the review authority may grant further reductions for senior and special needs housing based on quantified information provided by the applicant that documents the need for fewer spaces.
3. Other parking standards prescribed by Chapter 18.160 CMC (Parking, Loading, and Access) continue to apply, to the extent they do not conflict with the numeric requirements of this table.
4. Pursuant to California Government Code Section 65915(p)(2), an affordable or mixed income housing development may meet a portion of its on-site parking requirement through tandem and/or uncovered spaces.
5. Affordable housing developments in the DP and DMX zones which are within an established vehicle parking district may pay an in-lieu parking fee as prescribed by CMC 18.160.060(B) (In-Lieu Fees) rather than providing required parking on site or off site.
L. Use Permit Requirements. As indicated in Table 18.185.060(G), the following adjustments to allowed uses and permit requirements shall be permitted for qualified affordable and mixed income housing developments:
Table 18.185.060(G)
Adjustments to Allowed Uses and Permit Requirements for Qualifying Affordable Housing and Mixed Income Developments
Zone
Use Allowances and Permit Requirements for
Multifamily Residential Use, as Specified in Division II of This Title
Use Allowances and Permit Requirements for Qualifying
Affordable Housing and Mixed Income Projects(1)
RM Zoning Clearance Only Zoning Clearance Only
RH Zoning Clearance Only Zoning Clearance Only
NC Major Use Permit Major Use Permit
CO Major Use Permit Minor Use Permit
CMX Zoning Clearance Only Zoning Clearance Only
DMX Major Use Permit Zoning Clearance Only
DP Major Use Permit Minor Use Permit
(1) Limitations on ground floor residential uses apply in the NC and DP zones, as noted in Division II of this title. Grou nd floor residential uses are not permitted in the NC zone and are not permitted on sites facing Todos Santos Plaza in the DP zone. At the discretion of the review authority, a project which meets the affordability criteria listed in this chapter located on a site of at least two acres in the NC zone may include ground floor residential uses, provided the ground floor street frontage is developed with commercial use and residential uses occupy less than 50 percent of the ground floor area.
M. Additional Incentives. Consistent with the density bonus provisions established by CMC 18.185.050, affordable and mixed income housing developments are eligible for additional incentives, including expedited permit processing, reduced or deferred fees, and direct financial aid through housing assistance programs.
N. Neighborhood Meeting. Consistent with CMC Chapter 18.405 (Permit Application Filing and Processing), a neighborhood meeting shall be required following submittal of an application to the planning division for any project requesting affordable housing incentives that is located within a residential zoning district or within 300 feet of a low density residential (RR, RS, RL) zoning district, as measured from the edge of the parcel. Public notification for this meeting shall comply with the city’s notification requirements and procedures, including mailed or delivered notices to all properties within 500 feet of the subject parcel.
O. Duration of Affordability. The term of affordability for units approved under this program shall comply with CMC 18.185.090 (Duration of affordability). [Amended during 2014 recodification; Ord. 12-4. DC 2012 § 122- 581].
18.185.070 Affordable housing agreements.
A. Any project subject to the inclusionary housing requirements of CMC 18.185.040 or utilizing the density bonus or development incentives of CMC 18.185.050 or 18.185.060 shall require the developer to enter into an Affordable Housing Agreement. The form and contents of the agreement shall be consistent with the provisions of Sections 65864 to 65869 of the California Government Code and shall be subject to review by the City Attorney in consultation with the Community Development Department. Affordable Housing Agreements shall be recorded against the property prior to the issuance of building permits in order to ensure implementation of the requirements of this chapter.
B. The agreement shall include, but is not limited to, the following:
1. The total number of units approved for the development, including the number of affordable housing units;
2. The location, unit sizes (in square feet), lot size (in square feet, if applicable), and number of bedrooms of the affordable housing units;
3. A description of the household income groups to be accommodated by the project and a calculation of the affordable rent or sales price;
4. The party responsible for certifying sales prices or annual rental rates, and the process that will be used for certification;
5. A schedule for the completion and occupancy of the affordable housing units;
6. Duration of affordability for the affordable housing units, including provisions for resale and deed restrictions on affordable housing units that are binding on property upon sale or transfer;
7. Provisions covering the expiration of the agreement, including notice prior to conversion to market-rate units and a right of first refusal for the City and/or the distribution of accrued equity for for-sale units;
8. A description of the remedies for breach of the agreement by either party.
C. Additional Agreement Provisions for For-Sale Housing. In the case of for-sale housing, the affordable housing agreement shall provide the following conditions governing the initial resale and use of affordable units:
1. Affordable units shall, upon initial sale, be sold to eligible low- or moderate-income households at an affordable sales price and housing cost, or to qualified households as defined by the development code.
2. The initial purchaser of each affordable unit shall execute an instrument or agreement approved by the City restricting the sale of the unit in accordance with this chapter during the affordability term. Such instrument or agreement shall be recorded against the parcel and shall contain such provisions as the City may require in order to ensure continued compliance with this chapter.
3. Affordable units which are initially owner-occupied may not be rented by the owner, except in cases of substantial hardship including, but not limited to, active military duty and illness, and on specified terms as provided in the Affordable Housing Agreement acceptable to the Community Development Director.
4. The maximum sales price permitted on resale of an affordable unit shall be the lower of: (a) fair market value or (b) the seller’s lawful purchase price, increased by the rate of increase of area median income during the seller’s ownership. The sales price may also be modified to account for capital improvements made by the seller, deferred maintenance, and the seller’s necessary costs of sale. The City shall enter into an equity sharing agreement in accordance with Government Code Section 65915(c) to address disposition of proceeds upon resale.
5. The City may suspend resale restrictions on for-sale units in the event they create an economic hardship for the owner due to periods of significant real estate market decline, based on the criteria defined in the City of Concord’s inclusionary housing program guidelines.
6. The resale restrictions shall provide an option to the City to purchase any affordable owner-occupancy unit at the maximum price which could be charged to a purchaser household, at any time the owner proposes sale.
D. Additional Agreement Provisions for Rental Housing. In the case of rental housing development, the affordable housing agreement shall provide for the following conditions governing the use of affordable units during the use restriction period:
1. The rules and procedures for qualifying households, establishing affordable rent rates, filling vacancies, and maintaining affordable units for qualified households;
2. Provisions requiring owners to verify household incomes and maintain books and records to demonstrate compliance with this section;
3. Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying affordable units, and which identifies the bedroom size and monthly rent or cost of each affordable unit; and
4. A requirement to apply the same rental terms and conditions to the households of affordable units as are applied to other households, except as required to comply with this chapter (for example, rent levels) or with other applicable government subsidy programs. Discrimination against persons receiving housing assistance is prohibited. [Ord. 12-4. DC 2012 § 122-582].
18.185.080 Application requirements and review.
A. Submittal Requirements. An developer seeking a density bonus, development concession or incentive, and/or other affordable housing program incentive pursuant to CMC 18.185.050 or 18.185.060 shall submit an application which complies with the submittal requirements set by Division VII of this title (Permits and Permit Procedures). If not already included in that submittal, the following additional information shall be required:
1. The total number of units in the project;
2. The number and affordability level of proposed affordable housing units or other units to be produced through density bonus provisions;
3. The zoning and general plan designations and assessor parcel number(s) of the project site;
4. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway, and parking layout;
5. If a concession or incentive is requested, the application shall describe each specific development concession or incentive sought, and why it is necessary to provide the affordable units;
6. If requesting a density bonus based on land donation, information sufficient for the City to determine that the proposed donation conforms with the requirements of Density Bonus Law;
7. If requesting an additional density bonus or incentive based on the inclusion of a child care facility in accordance with Density Bonus Law as specifically set forth in Government Code Section 65915(h), the application must:
a. Provide the location of the proposed child day care facility and the proposed operator; b. Agree to have contracted with a child day care facility operator for operation of the child day care facility before the first building permit is issued;
c. Agree that the child day care facility will be in operation when the first certificate of occupancy is issued; and
B. An application for a density bonus, development incentive or concession, or other affordable housing program incentive, shall be processed concurrently with any other application(s) required for the development project. Final approval or disapproval of an application shall be made by the review authority unless direct financial assistance is requested. If direct financial assistance is requested, the City Council shall have the sole authority to make the final decision on the application.
C. Following receipt of the application and in a manner consistent with the Permit Streamlining Act and CMC Chapter 18.405 (Permit Application Filing and Processing), the City shall provide to a developer a letter which identifies project issues of concern and the procedures for compliance with this chapter. The planning division shall inform the developer that the requested concession(s) or incentive(s) shall be recommended for consideration with the proposed housing development, or that alternative or modified concession(s) or incentive(s) shall be recommended.
D. The review authority provisions established by CMC 18.185.030 (Review authority) and Division VII (Permits and Permit Procedures) of this title shall apply to all applications for a density bonus or affordable housing incentive or concession. [Ord. 12-4. DC 2012 § 122-583].
18.185.090 Duration of affordability.
The duration of affordability for units created through the inclusionary housing, density bonus, or affordable housing incentive provisions of this chapter shall be as follows:
A. The affordable sales price for ownership units shall be restricted for a period of 45 years pursuant to an Affordable Housing Agreement recorded against the property. Resale restrictions may be released on a case by case basis by the City Manager or designee due to undue hardship or a severe downturn in the residential real estate market, as detailed in the Affordable Housing Agreement.
B. The monthly rent for affordable rental units shall be restricted for a period of 55 years pursuant to an Affordable Housing Agreement recorded against the property. [Ord. 12-4. DC 2012 § 122-584].
18.185.100 Compliance monitoring fees.
The City Council by resolution may establish compliance monitoring fees to recover the City’s actual, reasonable costs incurred for ongoing implementation of this chapter. For affordable ownership units, the fee shall be payable by the developer or future seller of the property at the time of each sale or transfer during the term of the applicable Affordable Housing Agreement. For affordable rental units, the property owner shall pay an annual fee each year during the term of the applicable Affordable Housing Agreement. [Ord. 12-4. DC 2012 § 122-585].
Ord. No. 24-2 1
ORDINANCE NO. 24-2
AN ORDINANCE AMENDING CONCORD MUNICIPAL CODE, TITLE
18 (DEVELOPMENT CODE), SECTION 18.20 (GENERAL TERMS)
AND ADDING CHAPTER 18.115 (AFFORDABLE HOUSING
OVERLAY DISTRICT) AND SECTION
18.200.230 (LOT CONSOLIDATION INCENTIVE PROGRAM)
WHEREAS, Government Code Section 65800 et seq. provides for the amendment of any and all adopted City of Concord (“City”) zoning laws, ordinances, rules, and regulations; and WHEREAS, the State of California has declared housing as a matter of statewide importance; and
WHEREAS, to address the housing shortage, the State of California has enacted laws to accelerate housing production by, among other things, requiring local governments to streamline approvals for certain types of residential and mixed-use housing developments; and WHEREAS, the State of California has found that local governments have a responsibility to facilitate the development of housing for all economic segments of the community (Government Code Section 65580(d)); and
WHEREAS, state Housing Element Law (Government Code Section 65580 et. seq) requires that jurisdictions adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City’s Regional Housing Needs Allocation (RHNA) of 5,073 units of new housing between 2023 and 2031, including 2,883 units affordable to very low-, low-, and moderate-income households; and WHEREAS, the City has not produced a sufficient number of affordable units to meet its RHNA in prior housing element cycles; and
WHEREAS, the shortage of affordable housing in the City has also led to insufficient supply of housing for the local workforce and student population, leading to overcrowding in some units, placing a cost burden on households, and long commutes as workers seek affordable housing in other communities; and
WHEREAS, the City finds that the housing supply shortage for persons of very low-, low-, and moderate-incomes is detrimental to the public health, safety and welfare and that it is a public
4.c4.c4.c4.c
Ord. No. 24-2 2
purpose of the City, and a public policy of the State of California, to make an adequate supply of housing available for persons of all income groups; and WHEREAS, the City has adopted, and the California Department of Housing and Community Development has certified, a 2023-2031 Housing Element in compliance with state law that includes goals for providing a balanced supply of housing types, densities, and prices to meet the needs of all income groups residing or who wish to reside in Concord, and promoting the expansion of housing opportunities for all groups with special housing needs; and WHEREAS, the 2023–2031 Housing Element includes Program 6.1 to permit by-right development on sites previously identified in past housing elements in which at least 20% of the units are affordable to lower income households in accordance with Government Code Section 65583.2(c), and Program 13.2 to provide financial or regulatory incentives and a density bonus to encourage lot consolidation for residential development; and
WHEREAS, on November 29 and December 6, 2023, the City of Concord Housing and Economic Development Council Committee (“HED Committee”) met and provided feedback on policy questions proposed by staff related to developing a Lot Consolidation Incentive Program (Program
13.2); and
WHEREAS, Program 6.1 did not require feedback from the HED Committee because it is mandated by state law; and
WHEREAS, amendments are proposed to Concord Municipal Code, Title 18 (Development Code), Section 18.20 (General Terms), and adding Chapter 18.115 (Affordable Housing Overlay District) and Section 18.200.230 (Lot Consolidation Incentive Program) for consistency with state law and implementation of 2023-2031 Housing Element Programs 6.1 and 13.2; and WHEREAS, the Planning Commission, after giving all public notices required by state law and the Concord Municipal Code, held a duly noticed public hearing on December 20, 2023, on the proposed amendments, received the staff report and staff presentation, received comments from the public and interested parties, and after closing the public comments portion discussed the matter (the “Planning Commission Information”); and
Ord. No. 24-2 3
WHEREAS, on December 20, 2023, the Planning Commission, after consideration of all pertinent plans, documents, testimony, and Planning Commission Hearing Information, recommended the City Council adopt and an Ordinance approving the Project; and WHEREAS, the City Council, after giving all public notices required by state law and the Municipal Code, held a duly noticed public hearing on January 23, 2024, to consider this Ordinance; and
WHEREAS, at such public hearing, the City Council considered all oral and written information, testimony, and comments and the public hearing, the oral report from City staff, the written report from City staff dated January 23, 2024, attached materials, exhibits presented, the Planning Commission Information, and all other information that constitutes the record of proceedings relating to the proposed Ordinance, which are maintained at the offices of the City of Concord City Clerk, 1950 Parkside Drive, Concord, CA (collectively, “City Council Information”).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES ORDAIN AS FOLLOWS:
Section 1. All of the facts set forth in the Recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.
Section 2. The City Council has reviewed, considered, and evaluated all of the Planning Commission Information, City Council Information, all other pertinent plans, documents, and testimony prior to acting upon Ordinance.
Section 3. The documents and other materials that constitute the record of proceedings upon which the City Council has based its decision are located in and may be obtained from the City of Concord Clerk’s Office, 1950 Parkside Drive, Concord, CA 94519.
Section 4. California Environmental Quality Act
The City Council finds that the proposed Municipal Code amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code 21065 and CEQA Guidelines Section 15060(c)(2) or 15378 in that they do not constitute a “project” as defined by CEQA since they do not have the potential to result in either a direct physical change to the
Ord. No. 24-2 4
environment or a reasonably foreseeable indirect physical change to the environment.
If the Ordinance did constitute a “project” under CEQA, the Ordinance falls within the “common sense” exemption set forth in 14 Cal. Code Regs. Section 15061(b)(3), excluding project where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment…” Therefore, the proposed Municipal Code amendments do not warrant further environmental review. This determination reflects the City’s independent judgement and analysis.
Section 5. Development Code Amendment Findings
1) The proposed amendment is consistent with the general plan. The proposed amendments to the Concord Municipal Code, Title 18 (Development Code), consist of updates to the City’s existing General Terms (Chapter 18.20) and the addition of a new chapter (18.115) and a new section (18.200.230) in order to implement state law and the 2023–2031 Housing Element. The amendments are in conformance with the General Plan by streamlining and incentivizing housing development that provides the City with a balanced supply of housing types and prices, and in particular lower income housing, to meet the needs for all economic segments of the community. The proposed amendments are also internally consistent with all other provisions and elements of the General Plan. 2) The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the city. In response to California’s housing shortage, the State has adopted laws to accelerate housing production by removing or limiting the City’s discretionary review on housing developments. The proposed amendments would implement state law in addition to the 2023-2031 Housing Element. Incentivizing lot consolidation will help facilitate residential and mixed-use projects to help the City meet its RHNA targets and increase opportunities for housing in the City. The proposed amendments would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. On the contrary, the proposed amendments will serve the City’s public interest by facilitating and streamlining the review of residential projects that will help
Ord. No. 24-2 5
alleviate the City of Concord’s housing shortage, and in particular housing affordable to lower-income households.
3) Zoning map amendments shall also find that the affected site is physically suitable, including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities, for the requested zoning designation and proposed or anticipated uses and/or development. This amendment implements state law by including a new Affordable Housing Overlay District that facilitates a by-right process for residential projects on sites identified for lower-income households within the Sites Inventory that had been previously identified in past Housing Elements. The Affordable Housing Zoning Overlay District does not change the underlying zoning district or land use; therefore, will not physically effect, change the land use compatibility of any the identified sites, or impact the provision of utilities. The Lot Consolidation Incentive Program (Program 13.2) does not include an amendment to the zoning map.
Section 6. The City Council does hereby pass and adopt this Ordinance No. 24-2.
Section 7. Municipal Code, Title 18 (Development Code), Section 18.20.030 (Definitions) is hereby amended to add that definition set forth in Exhibit A to the existing language in Section 18.20.030, and Chapter 18.115 and Section 18.200.230 are hereby added as set forth in Exhibits B and C attached hereto and made a part hereof. //
//
//
//
//
//
//
//
Ord. No. 24-2 6
Section 8. This Ordinance No. 24-2 shall become effective thirty (30) days following its passage and adoption. In the event a summary of said Ordinance is published in lieu of the entire Ordinance, a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to its adoption and within fifteen (15) days after its adoption, including the vote of the Councilmembers. Additionally, a summary prepared by the City Attorney’s Office shall be published once at least five (5) days prior to the date of adoption of this Ordinance and once within fifteen (15) days after its passage and adoption, including the vote of the Councilmembers, in the East Bay Times, a newspaper of general circulation in the City of Concord.
____________________________________
Edi E. Birsan
Mayor
ATTEST:
______________________________________
Joelle Fockler, MMC
City Clerk
(Seal)
//
//
//
//
//
//
//
Ord. No. 24-2 7
Ordinance No. 24-2 was duly and regularly introduced at a regular meeting of the City Council of the City of Concord held on January 23, 2024, and was thereafter duly and regularly passed and adopted at a regular meeting of the City Council of the City of Concord on February 13, 2024, by the following vote:
AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers -
I HEREBY CERTIFY that the foregoing is a true and correct copy of an ordinance duly and regularly introduced, passed, and adopted by the City Council of the City of Concord, California.
Joelle Fockler, MMC
City Clerk
Attachments:
Exhibit A: CMC Section 18.20.030, Definitions
Exhibit B: CMC Chapter 18.115, Affordable Housing Overlay District Exhibit C: CMC Section 18.200.230, Lot Consolidation Incentive Program
Concord Municipal Code
Chapter 18.20 GENERAL TERMS
The Concord Municipal Code is current through Ordinance 23-8, passed October 3, 2023.
Exhibit A
Chapter 18.20
GENERAL TERMS
Sections:
Article I. Use Classifications
18.20.010 Purpose and applicability.
18.20.020 Use classifications.
Article II. Definitions
18.20.030 Definitions.
“Housing element” means the housing element of the City’s general plan, as required pursuant to subdivision (c) of Government Code Section 65302.
Concord Municipal Code
Chapter 18.115 AFFORDABLE HOUSING OVERLAY DISTRICT Page 1/4 Exhibit B
Chapter 18.115
Affordable Housing Overlay District
Sections:
18.115.010 Purpose
18.115.020 Definitions
18.115.030 Affordable housing overlay district created
18.115.040 Requirements
18.115.050 Application
18.115.060 Review authority
18.115.070 Relationship with State Density Bonus Law and other laws
18.115.080 Conflict between regulations
18.115.090 Neighborhood meeting
18.115.100 Repeal
18.115.010 Purpose
In accordance with California Government Code Section 65583.2(c), the purpose of the affordable housing overlay district (AH) is to provide an alternative review process for housing development projects on sites identified for lower-income households in the City’s 2023-2031 Housing Element that had been previously identified in housing elements, and in which at least 20 percent of the units are affordable to lower income households.
18.115.020 Definitions
“Housing development project” has the same meaning as defined in paragraph (2) of subdivision (h) of Section 65589.5.
“Lower income household” means a household that is either a very low-income or a low- income household as established under the latest state income limits for Contra Costa County by the Department of Housing and Community Development. “By-right development” shall mean that the city’s review of the housing development project does not require a conditional use permit, planned unit development permit, or other discretionary review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the California Public Resources Code.
Any subdivision of sites shall be subject to the Subdivision Map Act, Title 17 of the CMC, and all provisions in Title 18 pertaining to minor and major subdivisions.
18.115.030 Affordable housing overlay district created
The following district is hereby created, which shall overlay any underlying zoning district or districts, as further illustrated in Figure 18.115.030(A):
Concord Municipal Code
Chapter 18.115 AFFORDABLE HOUSING OVERLAY DISTRICT Page 2/4 Figure 18.115.030(A) – Affordable Housing Overlay District
18.115.040 Requirements
All by-right development projects pursuant to this chapter must be entirely on a parcel or parcels as those parcels were constituted and identified at the time of adoption of the 2023-2031 Housing Element, which is reflected on the AH overlay district map, and shall comply with the following:
A. Provide at least 20 percent of the units as affordable to lower income households and provide a deed restriction ensuring affordability pursuant to section 18.185.090.
These units shall enter into an affordable housing agreement, pursuant to section
18.185.080.
B. Chapter 18.52 Concord Objective Design Standards (ODS). For housing development projects not in conformance with the City’s Objective Design Standards, they shall be subject to Design and Site Review pursuant to Chapter 18.415.
Concord Municipal Code
Chapter 18.115 AFFORDABLE HOUSING OVERLAY DISTRICT Page 3/4 C. Housing development projects requesting a major or minor subdivision are subject to the Subdivision Map Act, the applicable provisions of CMC Title 17 (Subdivisions), and application review pursuant to Table 18.400.020.
18.1 15.050 Application
A. Initial Meeting and Preliminary Application. Pursuant to CMC 18.402.020, the applicant shall schedule an initial meeting with staff prior to filing a permit application. A applicant may voluntarily submit a preliminary application for review, section
18.402.030(B).
B. Sub
mittal Requirements. Filed applications shall include the information identified in the checklist on file with the planning division, and all applicable fees in accordance with the currently adopted master fees and charges schedule.
If
an application for a density bonus, development incentive or concession, or other affordable housing program incentive, it shall be submitted and processed concurrently with any other application(s) required for the housing development project.
Final approval or disapproval of an application shall be made by the review authority.
C. Fol
lowing receipt of the application and in conformance with CMC 18.405 (Permit Application Filing and Processing), the City shall provide to an applicant a letter which identifies project issues of concern and the procedures for compliance with this chapter.
18.1 15.060 Review Authority
The planning division shall be the review authority for housing development projects pursuant to this chapter, except for the specific decision regarding an application for a minor or major subdivision map, which shall be decided by the review authority identified in CMC 18.400.020. The date of decision on a minor or major subdivision by the appropriate review authority under this chapter shall not be tied to the date of the hearing and action of that review authority, but shall instead be the date the planning division subsequently issues a decision on the application as a whole. Any appeal initiated on a decision including approvals of the planning division and another review authority shall be combined and heard by the next highest review authority identified under CMC 18.510.010 that did not participate in the decision.
18.1 15.070 Relationship with Density Bonus Law and other laws A. Eligibility for Density Bonus Law waivers, incentives and concessions, the City’s affordable housing incentive program and the Transit Station Overlay shall not be limited by the applicability of this section.
B. Subdivision Regulations. CMC Title 17 establishes regulations for the subdivision of land. Where conflict exists between the AH overlay district and the provisions of CMC Title 17, the provisions of CMC Title 17 shall govern.
Concord Municipal Code
Chapter 18.115 AFFORDABLE HOUSING OVERLAY DISTRICT Page 4/4
18.115.080 Conflict between regulations
Notwithstanding the regulations set forth in this chapter, if any section of this chapter conflicts with Government Code Section 65915 or other applicable state law, state law shall supersede this chapter.
Wher
e a conflict occurs between the AH overlay district and any other section of the development code or any provision of the CMC, the review authority of this chapter will determine which regulation prevails.
18.1 15.090 Neighborhood meeting
Projects shall conduct a neighborhood meeting in conformance with CMC section
18.405.050(B), Neighborhood meetings.
18.1 15.100 Repeal
Pursuant to Government Code Section 65583.2(m), this section shall only be effective until December 31, 2028, and shall be repealed thereafter, unless extended by the state.
Concord Municipal Code
Chapter 18.200 STANDARDS FOR SPECIFIC USES Page 1/3
Exhibit C
Chapter 18.200
STANDARDS FOR SPECIFIC USES
Sections:
18.200.010 Purpose.
18.200.020 Applicability.
18.200.030 Accessory structures.
18.200.040 Alcoholic beverage sales.
18.200.050 Child day care facilities.
18.200.060 Drive-through facilities.
18.200.070 Emergency and homeless shelters.
18.200.080 Entertainment uses.
18.200.090 Gas stations and car washes.
18.200.100 Home-based businesses.
18.200.110 Live/work or work/live units.
18.200.120 Manufactured homes.
18.200.130 Mechanical and electronic games.
18.200.140 Mixed-use projects.
18.200.150 Mobile home parks.
18.200.160 Outdoor sales and displays.
18.200.170 Recycling facilities.
18.200.180 Accessory dwelling units.
18.200.190 Sidewalk cafes and outdoor eating areas.
18.200.200 Temporary uses and structures.
18.200.210 Food vendor group sites.
18.200.220 Convenience stores.
18.200.230 Lot Consolidation Incentive Program
18.200.230 Lot consolidation incentive program
A. The following incentives and standards shall apply to residential or mixed-use projects at a site identified for lot consolidation (“Identified Sites”) in the Housing Element Sites Inventory. For the purposes of this section, a mixed-use project shall mean a project with at least two-thirds total square footage designed for residential use (including residential amenities) and that meets the minimum residential density required by the General Plan.
1. Priority or expedited processing for by-right projects from the time the application has been deemed complete by the planning division as set forth below:
a. For projects of 150 residential units or less, a decision shall be rendered by the City within 90 days.
Concord Municipal Code
Chapter 18.200 STANDARDS FOR SPECIFIC USES Page 2/3
b. For projects of more than 150 residential units, a decision shall be rendered by the City within 180 days.
2. Pri
ority placement on public meeting agendas.
3. Assi
stance in marketing affordable units, deed restricted to lower income households.
4. A 3 p
ercent increase of the base density, with the minimum of one additional unit, which shall be calculated based on the lot size and zoning district designation of the Identified Site at the time the Housing Element was adopted. For projects subject to Density Bonus Law, this 3 percent will be additive after Density Bonus Law calculation is completed and not compounded with it.
5. For
projects not subject to Density Bonus Law or making use of parking reductions through any other state law, a 10 percent reduction in required onsite residential parking. This incentive is intended to apply solely to the Identified Site as constituted at the time the Housing Element was adopted. If a project site includes additional acreage (e.g. as a result of a lot line adjustment, merger, or incorporation of other parcels into the project), the additional area shall not be included in calculating the reduction. The reduction shall therefore be calculated for the project by dividing the lot size of the Identified Site at the time the Housing Element was adopted by the area of the project site, and then multiplying that percentage by 10 percent of the required onsite residential parking for the project.
6. For
project sites comprised entirely of Identified Sites at the time the Housing Element was adopted, the required residential parking may be made up of 50% compact parking spaces and provided in any configuration. For project sites comprised of 50% or more of Identified Sites at the time the Housing Element was adopted, the required residential parking may be made up of 35% compact parking spaces and provided in any configuration. Project sites comprised of less than 50% of Identified Sites at the time the Housing Element was adopted are not eligible for this incentive. This incentive shall not apply to any projects electing to reduce their required parking through the application of any state law. To determine eligibility under this subsection, the planning division shall divide the lot size of the Identified Site at the time the Housing Element was adopted by the area of the project site.
B. The Cit
y will grant the incentives in 18.200.230(A), unless, on the basis of substantial evidence, it makes either of the following written findings:
1. The pr
oject incentives would have a specific adverse impact, as defined in California Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment or on any real property that is
Concord Municipal Code
Chapter 18.200 STANDARDS FOR SPECIFIC USES Page 3/3
listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households.
2. The pr
oject incentives would be contrary to state or federal law.
Staff Report
Date: February 13, 2024
To: City Council
From: Valerie J. Barone, City Manager
Reviewed by: Kevin Marstall, PE, Director of Community Development Carlton Thompson, PE, City Engineer
Bernard Enrile, PE, CIP Manager
Prepared by: Kevin Wheat, PE, Associate Civil Engineer
[email protected]
(925) 671-3422
Subject: Considering rejection of all bids submitted for the East Downtown Concord PDA Access & Safe Routes to Transit
Project (Project No. 2457), and directing staff to re-advertise the project for bids.
Report in Brief
The East Downtown Concord PDA Access & Safe Routes to Transit Project (Project No. 2457) is a federally funded project that aims to construct new concrete sidewalk filling existing “gaps” in sidewalk on The Alameda, 6th Street (from The Alameda to Willow Pass Road), Parkside Drive (between Concord Blvd and Willow Pass Road, and next to Civic Center), and Bonifacio Street (near Beach Street). The purpose is to provide better accessibility and safety improvements to the community. Project No. 2457 (Project) also installs new driveways, a fourth crosswalk leg at the intersection of 6th Street & Concord Blvd with signal upgrades, adds Class III bike routes on The Alameda and 6th Street, new storm drain facilities, and includes relocations/restorations of private property improvements such as landscaping and fencing to accommodate the new sidewalk. See attached location map (Attachment 1). The Federal project number is STPL-5135(063).
The Project has been designed and competitively bid (see Attachment 2 – Bid Summary); however, bids received were significantly higher than the Project’s construction budget. As a result, City of Concord (City) staff (Staff) worked to try and obtain additional federal funding from the Metropolitan Transportation Commission
4.d4.d4.d
City Council Agenda Report
Agenda Item No. 4.d
February 13, 2024
(MTC) & Contra Costa Transportation Authority (CCTA), but were unsuccessful. Staff was recommended by MTC & CCTA to reduce the scope of the Project, as needed, based on local funding available. Staff accepts this approach and is planning to re- advertise the Project with only two locations (The Alameda & 6th Street) being prioritized as the base bid. The other locations will remain in the Project, but as optional (“additive”) bids should bids come in lower than the initial advertisement period.
If approved, Staff will re-advertise the Project immediately with bid opening in mid- March 2024, and construction contract award in April 2024 with construction beginning May 2024.
Recommended Action
Reject all bids submitted for the East Downtown Concord PDA Access & Safe Routes to Transit Project (Project No. 2457) and direct Staff to re-advertise the Project for bids.
Background
The East Downtown Concord PDA Access and Safe Routes to Transit, Project No. 2457, was approved by the City Council (Council) as part of the FY 2018-2019 Capital Improvement Program (CIP) on May 8, 2018, with Measure J Local and Measure J Transportation for Livable Communities (TLC) grant funding.
On May 15, 2019, Contra Costa Transportation Authority (CCTA) approved Resolution 19-19-G which allocated $485,000 to the City (Measure J Transportation for Livable Communities TLC funds), funding the design phase of the Project. The City contributed $486,000 of Measure J Local funds as a match for the grant funds received for the Project.
On June 24, 2020, CCTA notified the City that, due to Covid-19 and potential negative long-term impact on sales tax revenues, the Authority Board temporarily suspended new appropriations of Measure J TLC grant funds to capital projects. This decision withdrew the City’s $1,846,000 of Measure J TLC grant funds programmed for the construction phase of the Project. This did not affect the $485,000 of Measure J TLC Grant funds already received for the Project, which provided funding for the design phase.
On May 11, 2021, Council adopted a resolution authorizing the filing of an application for funding assigned to the Metropolitan Transportation Commission (MTC) via OBAG 2 Quickstrike funds (for $2,164,000) and committing to fund the City’s local match of $280,369 and stating assurance to complete the East Downtown PDA Access and Safe Routes to Transit, Project No. 2457.
The City worked diligently towards filing of the funding application over the past two years, obtaining NEPA approval from Caltrans for the Project in January 2023, and right of way certification from Caltrans on July 11, 2023, which involved 60 temporary permit
City Council Agenda Report
Agenda Item No. 4.d
February 13, 2024
to enter and construct agreements with property owners fronting the new sidewalk improvements. The City submitted the funding authorization request for the $2,164,000 OBAG 2 Quickstrike funds to Caltrans on July 14, 2023, and received the Authorization to Proceed for the construction phase of the Project on September 7, 2023.
The City held one virtual public meeting on July 29, 2020, to present the Project scope of work and construction impacts to property owners impacted by the work, and those in the surrounding Project area. Staff had field meetings with property owners that wanted to meet in person to discuss any concerns they had with the new sidewalk.
The City also presented the Project to the City’s Bicycle and Pedestrian Advisory Committee (BPAC) on July 7, 2020.
Staff continued communication with property owners through 2022 and 2023, meeting in person and/or communicating via phone or email with all the property owners that had additional questions or concerns. Staff also met with property owners in person at the respective properties as part of developing and completing 60 signed temporary permit to enter and construct agreements with property owners.
On September 13, 2016, Council approved a Citywide Project Stabilization Agreement with the Contra Costa Building & Trades Council for projects with a construction contract valued at over $750,000. The Project will be subject to the requirements of the Project Stabilization Agreement (PSA). The prospective bidders for the Project were made aware of this requirement as part of the bid documents. Caltrans and the Federal Highway Administration (FHWA) approved the City’s use of the PSA for this project on November 16, 2023. The two agencies refer to the PSA as a Project Labor Agreement (PLA).
Analysis
The Project was first created to be part of the CIP in 2018 (see Background for more specific timeline). The Project’s funding has been significantly impacted over the last five years, delaying the delivery of the Project. Due to COVID-19 impacts in 2019 and 2020 referenced in the Background section of this report, and delays in in the project over the past 2 years from lengthy environmental and Right of Way certification processes with Caltrans (which included coordinating with 60 different property owners and obtaining fully executed temporary permit to enter agreements, as well as lengthy Caltrans review periods) to obtain these federal funds, construction costs continued to increase over these past 5 years. In total, the Project currently has a shortfall of $950,000 in funding (based on the low bid amount) to proceed with construction of all locations currently included in the Project (see Attachment 1) and cover the construction contract recommended 10% contingency for contract change orders.
Although the City received bids within the Engineer’s Estimate, Staff had been aware of the budget shortfall and attempted to work with both MTC & CCTA during design to
City Council Agenda Report
Agenda Item No. 4.d
February 13, 2024
pursue additional federal funding opportunities, potentially from other agencies’ OBAG 2 projects behind schedule that may be forced to give up their funding. After receiving bids and having a follow up meeting with both CCTA and MTC in December 2023, there were no additional federal funds that had become available to help the City cover the Project’s budget shortfall. All OBAG 2 funding was obligated to other agencies or projects, and no additional funding could be provided to the City. In this same follow up meeting, the City was advised by MTC and CCTA to re-scope (downsize and remove locations from the Project) and re-advertise the Project, if enough local funds could not cover the Project budget shortfall.
For re-advertisement, Staff has elected to focus on two of the Project’s proposed sidewalk locations that fit within the current budget; The Alameda (Location 2 shown on Attachment 1 - Project Location Map) and 6th street (Location 5). These two locations will be included in the base bid and will be constructed first. The other locations, including Parkside Drive (Locations 3 & 4), Bonifacio Street (Location 6), the library parking lot bioretention area (Location 8), and the corner of Cordova Way and the Alameda (Location 1), will become “Additive” bids, and will only be constructed if bids come in low enough or other local funding becomes available, which is unlikely. The reason for prioritizing The Alameda and 6th Street locations is that they do not currently have any existing sidewalk on either side of the street, and they are the largest segments of new sidewalk in the Project by far. The other locations in the Project have at minimum existing sidewalk on one side of the street. Based on the bids received during previous advertisement and the Engineer’s Estimate, these two locations fit within the current construction budget. Staff is recommending rejecting all bids received, and re-advertising the Project, as advised by both MTC and CCTA.
Procurement Process
Construction Contract: The Project was advertised for construction bids as required by State law and City policy. The Engineer’s Estimate for the Total Bid (all locations) is $3,000,000. Bids were opened on December 14, 2023. Three (3) bids were received in the amount ranging from $2,829,070.35 to $3,620,451.00. The basis of award for the Project is the Total Base Bid (does not include Additive Bid 1 – a bioretention facility in the Concord Library parking lot off of Parkside Drive). The lowest bid was received from Ghilotti Bros, Inc. (GBI) of San Rafael, CA. A summary of the three lowest bids is as follows:
BID
SCHEDULE
Engineer's
Estimate
Ghilotti Bros
Inc.
(GBI)
Kerex
Engineering
Redgwick
Construction
Co.
Total Base
Bid $ 3,000,000 $2,829,070.35 $3,329,589.25 $3,620,451.00
City Council Agenda Report
Agenda Item No. 4.d
February 13, 2024
GBI was the low bidder and submitted a responsive and responsible bid. A Disadvantaged Business Enterprise (DBE) Goal of 21% was established for this construction contract. None of the three bids received met this goal. GBI was not able to meet this goal, with a DBE participation rate of 12.7% of the Project cost allocated to qualified DBE subcontractors. However, GBI submitted a timely Good Faith Effort which was reviewed by Staff and deemed acceptable. Despite this, without additional federal funding available to assist the City, and insufficient local funds available to cover the shortfall, there is not enough funding in order to proceed with construction of all the locations in the Project.
One bid protest was received from Sposeto Engineering. The protest was rejected for multiple reasons, including not following the bid protest requirements stated in the contract documents, as well as attempting to submit a bid after the City Clerk announced bids were closed.
The bid from Kerex Engineering was deemed nonresponsive after further evaluation, due to Kerex not meeting the contract’s DBE goal, and not submitting a Good Faith Effort to the City within 5 days after bid opening.
The City’s Purchasing Ordinance (Concord Municipal Code Chapter 3.10) allows the City to reject all bids and re-advertise. Before rebidding, Staff will revise the bid to clarify items identified as confusing by the bidders. To maintain schedule as much as possible, advertising the Project for rebid bid will occur this month, in February 2024.
Financial Impact
The current total budget for the Project is $3,135,000 and is funded by federal One Bay Area Grant (OBAG 2) Quickstrike funds (Fund 402), Measure J Transportation for Livable Communities TLC funds (Fund 479), and Measure J Local funds (Fund 475).
There are insufficient funds to award the construction contract and construction management contract needed to provide for construction management, inspection and materials testing services, and staff oversight. Given that there are no additional funding opportunities, the Project currently has a shortfall of $950,000 (based on GBI’s low bid) to proceed with construction of all locations in the Project.
Rejecting all bids and re-bidding the Project, as Staff recommends, will result in an estimated cost of $5,000. There are sufficient funds in the Project to cover this cost of re-bidding.
As currently estimated, there is sufficient budget to cover Location 2 – The Alameda, Location 6 – 6th Street, and construction management fees. Should bids come in lower after re-advertisement, paired with re-negotiations of construction management fees, it
City Council Agenda Report
Agenda Item No. 4.d
February 13, 2024
may also be possible to proceed with one or two of the additive bid locations, within the current budget.
Environmental Determination
The rejection of a bid is not considered a project under CEQA guidelines. If the Project is re-bid and awarded in the future, the CEQA determination would be affirmed at that time.
Public Contact
The City Council Agenda was posted.
Attachments
1. Location Map (Showing all Project locations)
2. Bid Summary
ATTACHMENT 1
PROJECT LOCATION MAP
EAST DOWNTOWN PDA ACCESS & SAFE ROUTES TO TRANSIT PROJECT CITY PROJECT NO. 2457
FEDERAL AID PROJECT NO. STPL-5135(063)
City of Concord
Bid Sheet
PROJECT #2457 Bid Opening:
East Downtown Concord PDA Access and
Safe Routes to Transit
Thursday,
December 14, 2023
2:00 p.m.
City Manager's Conference Room
Engineer’s Estimate: $3 million
COMPANY TOTAL BID
Ghilotti Bros., Inc
525 Jacoby Street
San Rafael, CA 94901
$2,829,070.35
Kerex Engineering
PO Box 23831
Pleasant Hill, CA 94523
$3,329,589.25
Redgwick Construction Co.
21 Hegenberger Ct.
Oakland, CA 94621
$3,620,451.00
Co
ntact: Kevin Wheat x3422
Attachment 2
Intent to reject all bids on 2/13/2024
(NONRESPONSIVE)
City of Concord
MEMORANDUM
February 13, 2024
TO: Concord City Council
FROM: Valerie Barone, City Manager
WRITTEN BY: Sophia Huckabay, Housing Manager
SUBJECT: Considering:
1. Direction from Council on the following matters:
a. Percentage of ownership required to constitute an owner move-in.
b. The length of time an owner is required to reside in the unit after moving in.
2. Introduction of an Ordinance amending the Concord Municipal Code by 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. (Continued from January 30, 2024; this item was opened on Tuesday, December 12, 2023, continued to Tuesday, January 9, 2024, further continued to Tuesday, January 30, 2024, and continued again to February 13, 2024. Please note that public comment on this item was taken on Tuesday,
December 12, 2023 and reopened on Tuesday, January 30, 2024.
The public comment period has been closed, and no public comment will be accepted tonight).
CEQA: Not a project/exempt pursuant to Public Resources Code Section 21065, CEQA Guidelines Sections 15060(c), 15061(b)(3), and/or 15378.
Executive Summary
Council and the public reviewed a revised draft ordinance on Rent Stabilization and Just Cause for Eviction (Attachment 1) on Tuesday, January 30, 2024. After hearing from approximately 83 speakers, Council closed the public comment period, requested specific information on the
5.a5.a5.a5.a5.a5.a5.a5.a5.a5.a
eviction process and tracking eviction notices (which is provided in the body of the staff report) and continued the item to February 13, 2024.
The draft ordinance is proposed to apply as follows:
Rented single-family homes and rented condominium units would NOT be subject to the proposed rent stabilization regulations but would be subject to the just cause for eviction regulations.
Rented multi-family units built after February 1, 1995 would NOT be subject to the proposed rent stabilization regulations but would be subject to the just cause for eviction regulations.
Accessory dwelling units would NOT be subject to either rent stabilization or just cause for eviction regulations.
Duplexes in which the owner lives in one of the units would NOT be subject to either rent stabilization or just cause for eviction regulations.
Staff is seeking final decisions on two Just Cause for Eviction topics that Council deferred providing direction on until this meeting:
a. Percentage of ownership required to constitute an owner move-in. b. The length of time an owner is required to reside in the unit after moving in.
In addition, Council is being asked to give staff any additional direction they deem necessary on the draft Ordinance and to introduce the Ordinance, as amended, at the February 13, Council meeting.
Background
This item was opened on Tuesday, December 12, 2023, continued to Tuesday, January 9, 2024, further continued to Tuesday, January 30, 2024, and continued again to February 13, 2024.
Please note that public comment on this item was taken on both Tuesday, December 12, 2023 and Tuesday, January 30, 2024, and the public comment period has been closed. The City Council (Council) meeting dates above have been hyperlinked so the public may review all materials shared at each of these meetings and view the Council meeting recording.
On November 21, 2023, the City released draft revisions to Concord Municipal Code Chapter 19.40 “Residential Tenant Protection Program” which reflected Council direction to increase just cause eviction protections, expand the City’s rent registry, and establish a rent stabilization program. Council received a public presentation on the draft Ordinance and heard over three (3) hours of public testimony on December 12, 2023; and continued the item until January 9, 2024, for Council deliberation and decision making. At the January 9, 2024, meeting, Council directed staff to make various modifications to the draft ordinance, requiring the production of a revised draft ordinance, and continued the public hearing to a special meeting on January 30, 2024, to enable additional public input on the revised draft ordinance and continue Council deliberation.
At its meeting on January 30, 2024, after hearing from 83 speakers spanning approximately 4.5 hours of public testimony, Council continued this item to its meeting on Tuesday, February 13, 2024. Council will deliberate on the item at the February 13th Council meeting, provide direction to staff, and is being asked to take action by introducing the Ordinance.
As this is a continued item, the staff report and all attachments from the December 12, 2023, January 9, 2024, and January 30, 2024 meeting are still under consideration by the Council on February 13, 2024.
In addition to the staff report, written and verbal public comments received and attachments to these meetings (all of which are linked above), staff has provided additional information as requested by Council during its January 30, 2024 meeting. The information requested pertains to the collection of eviction data, rent increase caps across California in jurisdictions with rent stabilization/rent control provisions, and just cause for eviction unit coverage and relocation payments within Bay Area jurisdictions with these provisions. These are included as attachments to this memo under the Attachments heading, with the exception of the eviction data, which is included under the Eviction Notices and Proceedings section of this report.
Number of Units Covered
Concord has approximately 18,100 residential rental units, 9,200 of which are fully-covered units that would be subject to both the rent stabilization and the just cause for eviction provisions, and 8,900 of which are partially-covered units that would be subject to just cause for eviction provisions only. All 18,100 rental units would need to be registered in Concord’s Residential Rent Registry Program.
Rented single-family homes and rented condominium units would NOT be subject to the proposed rent stabilization regulations but would be subject to the just cause for eviction regulations. Rented multi-family units built after February 1, 1995 would NOT be subject to the proposed rent stabilization regulations but would be subject to the just cause for eviction regulations.
Accessory dwelling units would NOT be subject to either rent stabilization or just cause for eviction regulations. Duplexes in which the owner lives in one of the units would NOT be subject to either rent stabilization or just cause for eviction regulations.
See Attachment 4 for a chart of units covered by the proposed rent stabilization and just cause for eviction provisions.
Eviction Notices and Proceedings
At its meeting held on January 30th, Council expressed interest in better understanding the possibility of collecting eviction notices as part of the just cause for eviction requirements.
Eviction notices can range from termination notices to the serving of an unlawful detainer. To legally evict the tenant through the process of an unlawful detainer, the property owner typically has to:
Serve the tenant with the appropriate written notice
Wait for the time period in the notice to end
File an unlawful detainer action in Superior Court if the tenant does not either do what the notice asks or vacate the rental unit.
The property owner begins the eviction process by providing the tenant with an appropriate written termination notice stating the cause for termination and what, if anything, the tenant can do to correct it (see the specific notices below for more information). This notice may either be a 3-day, 30-day or 60-day depending on the reason for eviction. If the tenant does not correct the reason for the notice or vacate the unit by the end of the period stated in the notice, the property owner may begin the legal process by filing a complaint with the court.
Current State law provides the following:
3 Day Notice to Pay Rent or Quit: Legal notice to pay rent within 3 days or vacate the property.
3 Day Notice to Comply or Quit: Legal notice allowing the tenant a chance to correct a breach of their rental agreement. Notice must specify the violation and what the tenant must do to correct it. It must be written in the alternative (i.e. comply or vacate). 3 Day Notice to Quit: Legal notice for tenant to move out when the tenant commits a serious breach of the rental agreement; causes a nuisance; uses the premises for illegal activity (e.g. selling drugs, prostitution); threatens the health and safety of other tenants or the general public; or causes significant damage to the property. Notice must specify the cause for the notice. The tenant does not have the opportunity to correct the breach. 30 Day Notice to Quit: Used to terminate a month-to-month or periodic tenancy when the tenant lived in the property less than one year. Current State Law provides that no reason is needed when issuing this notice if the unit is not protected under AB 1482. Concord’s draft Residential Tenant Protection Program Ordinance requires that a reason for termination be included.
60 Day Notice to Quit: Used to terminate a month-to-month or periodic tenancy when the tenant lived in the property one year or more.
A notice is almost always required before filing an unlawful detainer case in the court. However, there are a few exceptions:
The property owner accepts the tenant’s notice to end the lease. If the tenant provides the property owner with a notice that they will be vacating the unit, but the tenant does not vacate, then the property owner can immediately file an unlawful detainer case.
Fixed term leases: If the tenant has a lease for a fixed period of time, the lease expires, and the property owner does not extend the lease, current State Law provides that the owner can file an unlawful detainer case without providing notice first. However, the property owner cannot take any rent after the lease runs out or they will be creating a month-to-month tenancy, which requires a notice to terminate.
Concord’s draft ordinance would not allow an expiration of a lease alone to be a reason or “just cause” for terminating a tenancy; an at-fault or no-fault reason would need to be provided to terminate a tenancy.
After the specified time period on a notice has expired, and after the property owner has filed a formal complaint with the court to begin the unlawful detainer process, the tenant is served with a court summons and the formal complaint. Usually, the tenant has 5 days to file a response. If an answer is filed, a trial is held expeditiously. Although trials are supposed to happen within 20 days, as a result of court backlogs most cases take longer to come to trial.
After court trial if the landlord prevails, the court clerk will prepare a formal judgment and mail notices of entry of judgment to all parties. The Sheriff's Department will post a lockout notice which provides the tenant with (5) days to vacate the property.
Council asked staff to provide information on how to collect useful and reliable eviction data.
Staff reviewed San Francisco’s methodology. San Francisco collects initial termination notices (except for 3-Day Pay or Quit Notices). San Francisco does report on the 3-Day Pay or Quit notices received, however, since some property owners choose to submit these to the city even though they are not required to do so.
If Council desires a basic report on the number of termination notices issued by rental properties (see the attached example under Attachment 5 from the City of San Francisco), this could be done by adding the requirement to the Just Cause for Eviction section of the draft ordinance for the property owner to file a copy of the notice within the City’s Rent Registry Program within seven days following service of the notice to the tenant. If this type of simple report on evictions is the only task that Council desires the rent registry to fulfill in respect to collecting termination notices, it would not require an increase in staff beyond the 2.5 additional staff members currently being proposed; rather staff would need to work with the software vendor to ensure the new rent registry system can support the effort.
Further staff researched how the City might obtain useful and reliable data on unlawful detainers.
Currently, the only method for doing so would be through a formal public records request with the Contra Costa County Sherriff’s Office pursuant to the California Public Records Act (CPRA). Note that staff consulted with the cities of San Francisco, Mountain View and Alameda and none of them take this step.
Direction Sought by Staff
19.40.070(d)(1) Just Cause for Eviction: No-Fault Termination of Tenancy: Owner Move Ins.
Up until its meeting held on January 9, 2024, Council had directed staff to include language in the City’s just cause for eviction owner move-in provisions that were consistent with State Law.
On January 9, 2024, after considering public input on this matter, Council expressed a desire to update the below provisions involving owner move-ins. As such, staff is seeking direction from Council on: a) percentage of ownership required to constitute an owner move-in, and b) the length of time an owner is required to reside in the unit after moving in. a. Percentage of ownership required to constitute an owner move-in Consistent with Council direction, the original proposed language in the draft ordinance mirrors the language in SB 567-Civil Code 1946.2(b)(2)(A)(viii), stating that a landlord, as defined in the draft ordinance, is:
“a natural person that has at least 25 percent recorded ownership interest in the Property.” Council has expressed a desire to change the ownership interest percentage from 25 percent, but has not agreed on a percentage for inclusion in the revised draft Ordinance.
This language appears in two sections of the ordinance under 19.40.070.d.1- Just Cause for Evictions- Owner Move-Ins.
b. The length of time an owner is required to reside in the unit after moving in Consistent with Council direction, the original proposed language in draft ordinance mirrors that in SB 567-Civil Code 1946.2(b)(2)(A), and states that if a tenant is evicted for an owner move-in, an owner or owner’s family member, as defined in the draft ordinance, must occupy the rental unit as a primary residence for at least 12 consecutive months.
Council has expressed a desire to change the length of time required for a landlord to reside in the unit from 12 consecutive months, but staff is unclear as to what timeframe Council desires.
Additional Edits to Ordinance
Provide any other changes to the draft ordinance desired by the Council and, after receiving confirmation from the City Attorney on the specific and necessary changes needed to the draft Ordinance to reflect the Council’s direction, introduce the Ordinance with the directed changes.
Next Steps
Should council introduce the draft Ordinance on February 13, then the second reading/adoption of the Ordinance would occur at the March 5, meeting, which would create an Ordinance effective date of April 4, 2024 (i.e. 30 days after adoption).
Attachments:
1. Draft Revised Ordinance Amending the Concord Municipal Code by amending Chapter
19.40 “Residential Tenant Protection Program”
Exhibit A: Amendment to Chapter 19.40, Residential Tenant Protection Program
2. Table of current rent increase caps and just cause for eviction relocation assistance and unit coverage from CA cities with rent control/rent stabilization and just cause for eviction provisions
3. Chart of Permanent Relocation Assistance Payments Applied
4. Covered Units Chart
5. San Francisco Rent Board Annual Eviction Report 22-23
6. Correspondence Received
Ord. No. 24-XX 1
ORDINANCE NO. 24-XX
AN 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
WHEREAS, on October 7, 2019, the Governor of the State of California signed AB 1482 into law. AB 1482 addresses a number of rental housing policies, including maximum rent increases, just cause eviction protections, and relocation assistance; and WHEREAS, on July 7, 2020, the City Council adopted Ordinance No. 20-7 adding Concord Municipal Code Chapter 19.40 "Residential Tenant Protection Program" to establish a Residential Tenant Protection Program that became effective August 28, 2020, and requires, among other things, relocation assistance for no-fault just cause evictions, and that tenants be provided a written lease with minimum lease terms; and
WHEREAS, on January 12, 2021, the City Council adopted Ordinance No. 20-10 amending Concord Municipal Code Chapter 19.40 "Residential Tenant Protection Program" by adding Section
19.40.110 "Rent Registry" establishing a Rent Registry Program that became effective July 1, 2021, and requires property owners to provide information on tenancy and rents; and WHEREAS, there presently exists a critical shortage of rental housing in the City. Due to this shortage, it is very difficult to find adequate, safe, and habitable rental housing at reasonable rents; and
WHEREAS, due to the shortage of rental units, rents in the City are increasing excessively. A substantial number of persons in the City who reside in rental units spend a high percentage of their income on rent, and many have been forced to move out because they could no longer afford to pay the increase in rent; and
WHEREAS, low- and moderate-income tenants have difficulty finding affordable housing after being displaced due to a rent increase; and
WHEREAS, the City Council desires to promote long-term stability and certainty for tenants Attachment 1
Ord. No. 24-XX 2
in the rental market while providing landlords an ability to receive a fair return on their property; and.
WHEREAS, at a duly noticed public meeting held on January 12, 2023 as part of the City’s 6th Cycle Housing Element Update efforts, the City Council directed staff to prioritize development of a just cause for eviction and rent stabilization ordinance; and WHEREAS, based on such direction, City staff solicited and received input from property owner representatives on July 26, 2023 and from tenant representatives on July 27, 2023 (collectively, “Community Meetings”); and
WHEREAS, City staff also solicited responses from a broader group of tenants and property owners through the use of online surveys, from July 31 through August 20, 2023 (collectively, “Community Surveys”); and
WHEREAS, City staff further corresponded with affordable housing providers to better understand the potential impact of rent stabilization and just cause for eviction ordinances on these entities; and
WHEREAS, the City Council held duly noticed public meetings on September 5, September 12, and October 10, 2023 (collectively, “Study Sessions”), received input from the public, tenants and advocates, property owners and property owner representatives, City staff and consultants, and provided policy direction on development of a just cause for eviction and rent stabilization ordinance; and
WHEREAS, the City Council, after giving all public notices required by state law and the Concord Municipal Code, held a duly noticed public hearing on December 12, 2023, which public hearing was then continued to January 9, 2024, further continued to January 30, 2024, and further continued to February 13, 2024 on the proposed amendment of 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 as set forth in Exhibit A attached hereto and incorporated by reference (“Ordinance”), and declared their intent to approve, introduce, and adopt the Ordinance; and
WHEREAS, the City Council, after giving all public notices required by state law and the
Ord. No. 24-XX 3
Concord Municipal Code, will hold a duly noticed continued public hearing on February 13, 2024, to further consider the Ordinance, and declare their intent to adopt the Ordinance; and WHEREAS, at such public hearings, the City Council considered all oral and written information, testimony, and comments received during the public review process, including oral and written staff reports, materials, documents, exhibits, reports, studies, memoranda, testimony, and community input received at the Community Workshops, Community Surveys, Study Sessions, and the public hearings on this Ordinance, the City of Concord Municipal Code, applicable City laws and regulations, and all other information that constitutes the record of proceedings upon which the City Council has based its decision and which are maintained at the offices of the City Clerk, 1950 Parkside Drive, MS/3 Concord, CA 94519 (collectively, “Ordinance Information”).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES ORDAIN AS FOLLOWS:
Section 1. Recitals. The City Council finds that the above recitals (which are hereby incorporated by reference) are accurate and constitute findings in this matter and, together with the Ordinance Information, serve as an adequate and appropriate evidentiary basis for the findings and actions set forth in this Ordinance and further makes the following findings:
Section 2. Binding Findings. Pursuant to Civil Code Section 1946.2(g)(1)(B), the City Council hereby makes the following binding findings within this Ordinance that this Ordinance is more protective than the provisions of Civil Code Section 1946.2 because:
(a) The just cause for termination of a residential Tenancy under the Ordinance is consistent with and more protective than Civil Code Section 1946.2; and (b) The Ordinance provides additional tenant protections that are not prohibited by any other provision of law, because it provides for earlier and higher relocation assistance amounts than those available to tenants covered by Civil Code Section 1946.2, requires certain minimum lease terms, limits the exemptions listed in Civil Code Section 1946.2 and in particular applies just cause for termination of a Tenancy to Dwelling Units regardless of when a certificate of occupancy is issued for the Dwelling Unit and protects Tenants upon commencement of the Tenancy; and
Ord. No. 24-XX 4
(c) As provided in Civil Code Section 1946.2(g)(2), a residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential Tenancy and Civil Code Section 1946.2. The Ordinance intends to cover those dwelling units defined as Covered Rental Units and to the extent such units are covered by the Ordinance, such units will not be subject to Civil Code Sections 1946.7 and 1947.12.
Section 3. CEQA. Adoption of this Ordinance is not subject to environmental review under the California Environmental Quality Act (CEQA) of 1970, as amended, because the adoption of the Ordinance does not constitute a “project,” and will not result in a direct or reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines Sections 15060(c), 15378 and Public Resources Code Section 21065. In addition, the proposed Ordinance is categorically exempt pursuant to Section 15061(b)(3), the common sense exception of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the ordinance may have a significant effect on the environment. No unusual circumstances are present. This determination reflects the City’s independent judgment and analysis.
Section 4. Ordinance Information. The City Council has reviewed, considered, and evaluated all of the Ordinance Information prior to acting on the Ordinance. The Ordinance Information is located in and may be obtained from the City of Concord Clerk’s Office, 1950 Parkside Drive, Concord, CA 94519.
Section 5. Municipal Code Amendment. The City Council hereby approves and adopts the amendment to Concord Municipal Code Chapter 19.40 as set forth in Exhibit A, attached hereto and incorporated by reference.
Section 6. Severability. If any section, subsection, clause, or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, or its application to any other person or circumstance. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause, or phrase be declared invalid.
Ord. No. 24-XX 5
Section 7. Publication and Effective Date. This Ordinance shall take effect thirty (30) days following passage and adoption. In the event a summary of said Ordinance is published in lieu of the entire Ordinance, a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to its adoption and within fifteen (15) days after its adoption, including the vote of the Council members. Additionally, a summary prepared by the City Attorney’s Office shall be published once at least five (5) days prior to the date of adoption of this Ordinance and once within fifteen (15) days after its passage and adoption, including the vote of the Councilmembers, in the East Bay Times, a newspaper of general circulation in the City of Concord. __________________________________
Edi E. Birsan
Mayor
ATTEST:
Joelle Fockler, MMC
City Clerk
(Seal)
//
//
//
//
//
//
//
//
Ord. No. 24-XX 6
Ordinance No. 24-XX was duly and regularly introduced at a regular meeting of the City Council of the City of Concord held on February 13, 2024, and was thereafter duly and regularly passed and adopted at a regular meeting of the City Council held on March 5, 2024, by the following vote:
AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers -
I HEREBY CERTIFY that the foregoing is a true and correct copy of an ordinance duly and regularly introduced, passed, and adopted by the City Council of the City of Concord, California.
Joelle Fockler, MMC
City Clerk
Attachment: Exhibit A – Ordinance (Amendment to Chapter 19.40, Residential Tenant Protection Program)
1 Chapter 19.40
Residential Tenant Protection Program
Sections
19.40.010 Binding Findings; Definitions ; Citation.
19.40.020 General Applicability of Chapter; Exemptions.
19.40.030 Rent Stabilization.
19.40.040 Permitted Rent Increases for Covered Rental Units.
19.40.050 Rent Adjustment Petitions.
19.40.060 Annual Rental Registration.
19.40.070 Just Cause for Eviction.
19.40.080 Relocation Assistance For No-Fault Termination Of Tenancy; Moving Stipend.
19.40.090 Requirement to Offer Written Lease, Minimum Lease Terms.
19.40.100 Notice of Tenant Rights.
19.40.110 Procedures and Guidelines.
19.40.120 Remedies.
19.40.130 Waiver Prohibited.
19.40.140 Severability.
19.40.010 B
inding Findings; Definitions; Citation.
(a) Binding Findings. Pursuant to Civil Code Section 1946.2(g)(1)(B), the City Council hereby makes the following binding findings within this Chapter, that this Chapter is more protective than the provisions of Civil Code Section 1946.2 because:
(1) T
he just cause for termination of a residential Tenancy under this Chapter is consistent with and more protective than Civil Code Section 1946.2; and (2) Th
is Chapter provides additional tenant protections that are not prohibited by any other provision of law, because it provides for earlier and higher relocation assistance amounts than those available to Tenants covered by Civil Code Section 1946.2, requires certain minimum lease terms, limits the exemptions listed in Civil Code Section 1946.2 and in particular applies just cause for termination of a Tenancy to Dwelling Units regardless of when a certificate of occupancy is issued for the Dwelling Unit and protects Tenants upon commencement of the Tenancy; and
(3)
As provided in Civil Code Section 1946.2(g)(2), a residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential Tenancy and Civil Code Section 1946.2. This Chapter intends to cover those Dwelling Units defined as Covered Rental Units and to the extent such Dwelling Units are covered by this Chapter, such Dwelling Units will not be subject to Civil Code Sections 1946.2 and 1947.12. (b) T
he City Council finds that there presently exists a critical shortage of rental housing in the City. Due to this shortage, it is very difficult to find adequate, safe, and habitable rental housing at reasonable rents.
(1)
Due to the shortage of rental units, rents in the City are increasing excessively. A substantial number of persons in the City who reside in rental units spend a high percentage of their income on rent, and many have been forced to move out because they could no longer afford to pay the increase in rent. Further, low- and moderate-income Tenants have difficulty finding affordable housing after being displaced due to a rent increase. (2)
The purposes of this Chapter are to promote long-term stability and certainty for Tenants in the rental market while providing Landlords an ability to receive a fair return on their Exhibit A to Attachment 1
2 Property. This Chapter regulates Rents and terminations of Tenancy, including requiring relocation assistance and affording a Tenant the right to return under certain circumstances. It requires Landlords to register Covered Rental Units, establishes an administrative hearing process, and provides for procedures and guidelines for the implementation of this Chapter.
(c) Definitions. The following terms shall have the meaning provided below when used in this Chapter, whether plural or singular.
(1) "Accessory Dwelling Unit" shall mean an accessory dwelling unit or a junior accessory dwelling unit as those terms are defined in Code Section 18.200.180, which has received a valid accessory dwelling unit or a junior accessory dwelling unit permit from the City or Contra Costa County.
(2) “Accommodations” shall be as defined in the Government Code Section 7060(b)(1), which, for convenience, reads as follows:
(1) “Accommodations” means either of the following:
(A) The residential rental units in any detached physical structure containing four or more residential rental units.
(B) With respect to a detached physical structure containing three or fewer residential rental units, the residential rental units in that structure and in any other structure located on the same parcel of land, including any detached physical structure specified in subparagraph (A).
(3) “Allowable Annual Rent Increase” shall mean the annual rent increase as set forth in Section 19.40.040.
(4) “Base Rent” shall mean as follows: For tenancies commenced on or before January 12, 2023, the Rent in effect on January 12, 2023 plus the Initial Allowable Annual Rent Increase. For tenancies commenced after January 12, 2023, but prior to the effective date of this Chapter, the Rent charged upon initial occupancy plus the Initial Allowable Annual Rent Increase. For tenancies commenced after the effective date of this Chapter, the Rent charged upon initial occupancy. The foregoing amounts are subject to the assumption that such amounts are not in violation of this Chapter or any provision of State law. Nothing in this definition is intended to alter the requirement that a Landlord provide a Tenant with valid, written notice of any change in the terms of the Rental Agreement (including any Rent decrease or Rent increase) as required by Civil Code Section 827.
(5) “Base Year” shall mean the 2022 calendar year.
(6) "City Council" shall mean the City Council of the City of Concord.
(7) "City" shall mean the City of Concord.
(8) "Code" shall mean the Concord Municipal Code.
(9) "Covered Rental Unit" shall mean a Dwelling Unit located within the City not specifically exempted under Section 19.40.020(a) or 19.40.020(b).
(10) "CPI" shall mean Consumer Price Index for all urban consumers for the San Francisco-Oakland-Hayward, California area, or any successor designation of that index that may later be adopted by the U.S. Department of Labor for April of each year. Calculation of the CPI percentage will be determined by the City and set forth in its procedures and guidelines.
3 (11) “Disabled” shall mean any mental or physical disability as defined in Government Code Section 12955.3. A “Disabled Tenant” is a Tenant who is disabled.
(12) "Dwelling Unit" shall mean a dwelling unit, as defined under California Civil Code Section 1940(c), including joint living and work quarters, that is used or occupied in consideration of payment of Rent, and applies to any dwelling space that is actually used for residential purposes, whether or not the residential use is legally permitted, including live-work spaces, mobilehomes rented to a Tenant, and any Accessory Dwelling Unit in the City.
(13) "Ellis Act" shall mean California Government Code Sections 7060 – 7060.7.
(14) “Fair Return Petition” shall mean a petition filed by a Landlord seeking a Fair Return Rent Increase pursuant to Section 19.40.050.
(15) “Fair Return Rent Increase” shall mean the amount by which Base Rent plus any Allowable Annual Rent Increase may be increased in accordance with an approved Fair Return petition submitted pursuant to Section 19.40.050.
(16) “Hearing Officer” shall mean an official appointed by the City Attorney to conduct an administrative hearing pursuant to this Chapter.
(17) "Housing Services" include, but are not limited to, repairs, maintenance, painting, providing light, heat, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, access to exterior doors, entry systems and gates, utilities (unless separately metered and billed to the Tenant by the utility company since the inception of the Tenancy, as provided in the Rental Agreement), refuse removal, furnishings, telephone, parking, the right to have a specified number of occupants or tenants, the right to have pets, utility infrastructure, and any other benefit, privilege or facility connected with the use or occupancy of any Dwelling Unit.
(18) “HUD FMR Rent” shall mean the fair market rent published by the U.S.
Department of Housing and Urban Development for the applicable year for Contra Costa County.
(19) “Initial Allowable Annual Rent Increase” shall mean sixty percent (60%) of the CPI increase for the twelve-month period from April 2022 to April 2023, which equals 2.52%.
(20) "Landlord" or “Owner” shall mean any person, acting as principal or through an agent, having the right to offer a Dwelling Unit for rent, and includes a sublessor, except that this term does not include the Owner or operator of a mobile home park or his or her agent, but does include the Owner of a mobile home if the mobile home is offered for rent.
(21) "Landlord's Family Member" shall mean a Landlord's parent, child, spouse or registered domestic partner, grandparent, grandchild.
(22) “Lawful Rent” shall mean the Base Rent for a Covered Rental Unit as such Base Rent may be increased by any Annual Allowable Rent Increase and any Fair Return Rent Increase permitted by this Chapter. Lawful Rent expressly excludes any Unlawful Rent.
(23) “Lawful Rent Increase” shall mean the Annual Allowable Rent Increase together with any Fair Return Rent Increase permitted for the Covered Rental Unit as specified in this Chapter. Lawful Rent Increase expressly excludes any Unlawful Rent increase.
(24) “Lower-Income Tenant” shall mean a person and family whose income does not exceed the qualifying limits for lower income families as established and amended from time to
4 time pursuant to Section 8 of the United States Housing Act of 1937, or as otherwise defined in California Health and Safety Code Section 50079.5.
(25) “Moving Stipend” is defined in Section 19.40.080(a)(2)d.
(26) “Property” shall mean the real property on which the Dwelling Unit or Units are located. For purposes of the Ellis Act evictions only, “Property” shall mean the parcel on which the Accommodations are located.
(27) “Protected Tenant” shall mean any Lower-Income Tenant, Disabled Tenant, Senior Tenant, Terminally Ill Tenant, and any Tenant whose household contains School-Aged Children.
(28) "Rent" shall mean all payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor performed or services rendered to or for the benefit of the Landlord under a Rental Agreement concerning the use or occupancy of a Dwelling Unit and premises and attendant Housing Services, including all payment and consideration demanded or paid for parking, utility charges, pets, furniture, and other benefits, privilege or facility connected with the use or occupancy of the Dwelling Unit.
(29) "Rental Agreement" shall mean an oral or written lease, sublease, or similar agreement between a Landlord and a Tenant for the lawful occupancy of a Dwelling Unit.
(30) “School-Aged Child” or “School-Aged Children” shall mean any dependent child under the age of eighteen (18) living in the Tenant’s Covered Rental Unit and who attends a Mount Diablo Unified School District public school.
(31) “School Year” shall mean the first day of instruction for the fall semester through the last day of instruction for the Spring semester, as posted on the Mount Diablo Unified School District website.
(32) “Senior Tenant” shall mean a Tenant who is at least sixty-two (62) years of age or older as defined in Government Code Section 7060.4.
(33) "State" shall mean the State of California.
(34) “Substantial Remodel” or “Substantially Remodel” shall mean either of the following that cannot be reasonably accomplished in a safe manner that allows the Tenant to remain living in the Covered Rental Unit and that requires the Tenant to vacate the Covered Rental Unit for at least thirty (30) consecutive days: (i) the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency; or (ii) the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, State, and local laws. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the Covered Rental Unit vacated, do not qualify as substantial remodel.
(35) "Tenancy" shall mean the lawful occupation of a Dwelling Unit and includes a lease or a sublease.
(36) "Tenant" shall mean a tenant, subtenant, lessee, sublessee, or any other person entitled under the terms of a Rental Agreement to the use or occupancy of any Dwelling Unit.
(37) “Terminally Ill Tenant” shall mean a Tenant who has a terminal disease as defined in California’s End of Life Option Act as any “incurable and irreversible disease that has been
5 medically confirmed and will, within reasonable medical judgment, result in death within six months” pursuant to Health and Safety Code Section 443.1 and which is verified in writing by the Tenant’s medical care provider.
(38) “Unlawful Rent” shall mean any Rent charged by a Landlord to or paid by a Tenant for a Covered Rental Unit which exceeds the Tenant’s Base Rent together with any Lawful Rent Increase.
(d) Citation. This Chapter may be referred to as the “Residential Tenant Protection Program” of the City. The words “this Chapter” and “this Ordinance” are used interchangeably herein.
19.40.020 General Applicability of Chapter; Exemptions.
This Chapter shall apply to all Landlords and Tenants in Dwelling Units within the jurisdictional limits of the City, unless otherwise exempted by State law or the provisions of this Chapter. (a) Fully Exempt (Exempt from Both Rent Stabilization and Just Cause for Eviction). The following Dwelling Units are exempt from all provisions of this Chapter:
(1) Units in Hotels as defined in Code Section 18.20.010 which, for convenience, reads as follows:
“Hotel” or “motel” means a facility that provides guest rooms or suites, with or without kitchen facilities, rented to the public for transient lodging. These facilities typically include a variety of services in addition to lodging, such as restaurants, meeting facilities, spas or other personal services, and accessory guest facilities including swimming pools, sport courts, exercise facilities, and accessory retail sales.
This classification does not include rooming houses, boardinghouses, or private residential clubs (see “Group housing” under “Residential Facility,” and “Bed and breakfast inn”)
For purposes of this Chapter only, “Hotel” or “motel” does not include short-term rentals arrangements in which a Dwelling Unit is hired or occupied by reason of concession, permit, right of access, license, or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days.
(2) Institutional Facilities. Housing accommodations in a hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.
(3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12 inclusive, school.
(4) Government Owned. Housing accommodations which are owned by a public agency or authority, or which are specifically exempted under State or federal law or administrative regulation.
(5) Dwelling Units in which the Tenant shares bathroom or kitchen facilities with the Owner who maintains their principal residence at the Property.
(6) Emergency shelters, and homeless shelters as defined in Code Section 18.200.070.
(7) Residential facility/ies, as defined in Code Section 18.20.020.
6 (8) Accessory Dwelling Units.
(9) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.
(b) Partially Exempt (Exempt from Rent Stabilization but subject to Just Cause for Eviction).
The following Dwelling Units are exempt from all Rent Stabilization provisions of this Chapter:
(1) Dwelling Units that are expressly exempt under State or federal law. This includes any Dwelling Unit that has a certificate of occupancy or equivalent permit for residential occupancy issued after February 1, 1995. For this purpose, a certificate of occupancy is the certificate issued before the Property is used for any residential purposes.
(2) Any Dwelling Unit that is alienable separate (i.e., separately transferrable) from the title to any other Dwelling Unit, or is a subdivided interest in a subdivision, as specified in California Business and Professions Code Section 11004.5(b), (d), or (f), including without limitation single family residences and condominiums, but excluding mobile homes offered for rent.
(3) Dwelling Units that are either restricted by the City or other governmental agency as affordable housing for persons or families of very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code to the extent that such Dwelling Units are subject to rent increase restrictions equal to or less than five percent (5%) annually and enforceable by the City or other governmental agency pursuant to a deed, regulatory restriction contained in an agreement, or other recorded document.
19.40.030 Rent Stabilization.
(a) Subject to Section 19.40.020, no Landlord shall charge Rent in an amount that exceeds the Base Rent plus any Lawful Rent Increases permitted by this Chapter.
19.40.040 Permitted Rent Increases for Covered Rental Units. (a) A Landlord may, but shall not be obligated to, impose the Initial Allowable Annual Rent Increase or any other an annual Rent increase for any Covered Rental Unit, as allowed in this Section 19.40.040 after providing prior written notice to the Tenant of the Rent increase pursuant to California Civil Code Section 827, as may be amended.
(b) Notwithstanding the foregoing, a Landlord shall be prohibited from imposing an Allowable Annual Rent Increase, unless the Covered Rental Unit is registered with the City pursuant to Section 19.40.060, and the Landlord is not delinquent in registry fees, accrued interest, fines, and penalties pursuant to former Section 19.40.110 (Rent Registry) and/or Section
19.40.060, as applicable.
(c) Allowable Annual Rent Increases. This Chapter shall limit annual Rent increases on Covered Rental Units to no more than sixty percent (60%) of the percentage increase in CPI published and reported for the twelve-month period ending as of April of the immediately- preceding year, provided however in no event shall the Allowable Annual Rent Increase exceed three percent (3%). In the event that the percentage change in the CPI is negative, the Allowable Annual Rent Increase shall be zero percent (0%) The Allowable Annual Rent Increase shall be
7 rounded to the nearest one-quarter of a percent (0.25%). Nothing in this subsection is intended to alter the requirement that a Landlord provide a Tenant with valid, written notice of any Rent increase as required by Civil Code Section 827.
(d) Only one Allowable Annual Rent Increase and one Fair Return Rent Increase (if and to the extent approved by the Hearing Officer) may be imposed on a Covered Dwelling Unit in any twelve (12) month period, unless otherwise permitted by this Chapter.
(e) Rent Increase Following Vacancy (Vacancy Decontrol). When a Tenant has voluntarily vacated, abandoned, or been legally evicted from a Covered Rental Unit, the Landlord may set the initial Rent for the next Tenant, without restriction, at the commencement of the new Tenancy.
(f) Allowable Annual Rent Increase Banking Prohibited. A Landlord who seeks to raise Lawful Rent by the Allowable Annual Rent Increase must do so within the twelve-month period between August 1 of the current year and July 31 of the following year. A Landlord who does not impose an Allowable Annual Rent Increase or any portion thereof in the applicable twelve month period automatically waives that Allowable Annual Rent Increase or the remaining portion of that Allowable Annual Rent Increase for the remainder of the Tenancy.
19.40.050 Rent Adjustment Petitions.
(a) Fair Return Petitions. Landlords who believe they are not receiving a fair return on their Property may submit a Fair Return Petition to the City to request an increase in Rent beyond that which is permitted under Section 19.40.040.
(1) Nothing in this Section 19.40.050 shall be interpreted to authorize any Lawful Rent Increase in any twelve month period for a Covered Rental Unit in excess of the amount authorized pursuant to California Civil Code Section 1947.12, as may be amended. If a Hearing Officer awards a Landlord a Fair Return Rent Increase in excess of the maximum allowable Rent increase pursuant to Civil Code Section 1947.12, the Landlord may carry forward any portion of the Fair Return Rent Increase that could not be taken to a subsequent year until the full Fair Return Rent Increase is imposed.
(2) No Fair Return Petition shall be deemed submitted or accepted until the Landlord has registered the Property and paid all current and past-due registration fees for the Property pursuant to former Section 19.40.110 (Rent Registry) and/or current Section 19.40.060, as applicable.
(3) No Fair Return Rent Increases shall become effective until all of the following have occurred:
a. The Landlord has provided written notice of the Fair Return Rent Increase for the Covered Rental Unit in accordance with California Civil Code Section 827, as may be amended;
b. After a hearing is held, the Hearing Officer, in a written decision, grants the Fair Return Rent Increase; and
c. All amounts due and payable to the City in connection with the Fair Return Petition and hearing have been paid in full.
(4) Standard for Approving a Fair Return Petition.
8 a. Fair Return. The Landlord has the right to obtain a net operating income equal to the Base Year net operating income adjusted by the percentage increase in the CPI since the Base Year. It shall be presumed that this standard provides a fair return. The current year CPI shall be the annual CPI for the calendar year preceding the calendar year the Fair Return Petition is filed. The Hearing Officer shall make a determination whether the Landlord will receive a fair return under this standard. In evaluating whether or not the Landlord is receiving a fair return on their investment, the Hearing Officer may consider other relevant factors without limitation.
b. Base Year Net Operating Income. The Base Year and current year net operating income shall be determined by subtracting the actual operating expenses for the Base Year from the gross income realized during the Base Year. The Landlord shall provide evidence of gross income, operating expenses, and the determination of net operating income for the Base Year and current year. All figures shall be certified by the Landlord under penalty of perjury as true and correct and with respect to expenses and income used to determine gross income, as permitted pursuant to Section 19.40.050(a).
c. Rebuttal Of Base Year Net Operating Income Presumption. Any party to the hearing may present evidence to rebut the presumption of fair return based upon the Base Year net operating income, and the Hearing Officer may adjust said net operating income accordingly if at least one of the following findings is made:
(i) The Landlord’s operating expenses in the Base Year were unusually high or low in comparison to other years. In such instances, adjustment may be made in calculating operating expenses so the Base Year operating expenses reflect average expenses for the Property over a reasonable period of time. The Hearing Officer shall consider the following factors in making this finding:
(a) Extraordinary amounts were expended for necessary
maintenance and repairs;
(b) Maintenance and repair was below accepted standards so as to cause significant deterioration in the quality of services provided;
(c) Other expenses were unreasonably high or low in
comparison to prudent business practices;
(d) Costs of debt service paid during the Base Year, where the proceeds of the debt were used for capital improvements or rehabilitation in the Property.
(ii) T he gross income during the Base Year was disproportionate. In such instances, adjustments may be made in calculating gross income consistent with the purposes of this section. The Hearing Officer shall consider the following factors in making this finding:
(a) The gross income during the Base Year was lower than it might have been because some Tenants were charged reduced Rent;
(b) The gross income during the Base Year was significantly lower than normal because of the destruction of the premises and/or Page 21 of 262 9 temporary eviction or vacancies for a Substantial Remodel, construction, or repairs.
(iii) T he Rent charged by the Landlord in the Base Year were significantly below the HUD FMR Rent for the most similar unit type.
d. Determination Of Current Net Operating Income. The net operating income as of the date of filing a Fair Return Petition shall be determined by:
(i) Annualizing the Rent in effect as of the date of filing to determine the annualized gross income;
(ii) Determining the operating expenses during the immediately preceding calendar year;
(iii) Subtracting the operating expenses determined pursuant to Subsection (ii) from the annualized gross income.
e. Calculation Of Gross Income.
(i) For the purposes of determining the net operating income, gross income shall be the sum of the following:
(a) Gross Rent calculated as gross rental income at one hundred percent (100%) occupancy, adjusted for uncollected Rent as provided in Section 19.40.050(a)(4)e.(ii);
(b) Income from any laundry facilities and parking fees;
(c) All other income or consideration received or receivable in connection with the use or occupancy of the Covered Rental Unit. (ii) G ross Rent shall be adjusted for uncollected Rent due to vacancy and bad debts to the extent such are beyond the control of the Landlord.
No such adjustment shall be greater than three percent (3%) of gross Rent unless justification for a higher rate is demonstrated by the Landlord. f. Calculation Of Operating Expenses.
(i) For the purposes of determining net operating income, operating expenses shall include the following:
(a) Reasonable costs of operation and maintenance.
(b) Utility costs to the extent they are not paid by the Tenants.
(c) Landlord-performed labor compensated at reasonable
hourly rates. No Landlord-performed labor shall be included as an operating expense unless the Landlord submits documentation showing the date, time and nature of the work performed. There shall be a maximum allowed under this provision of five percent Page 22 of 262 10 (5%) of gross income unless the Landlord shows greater services were performed for the benefit of the Tenants.
(d) Real property taxes and assessments.
(ii) O perating expenses shall not include the following:
(a) Mortgage principal or interest payments or other debt service costs or lease payments;
(b) Any penalties, fees or interest assessed or awarded for violation of any provision of this Chapter or of any other provision of law;
(c) Legal fees except as specified in Section
19.40.050(a)(4)f.(iii);
(d) Political contributions;
(e) Any expenses for which the Landlord has been or will be reimbursed by any discount, security deposit, insurance payment or settlement, judgment for damages, settlement or any other method or device;
(f) Avoidable and unnecessary expense increases since the Base Year;
(g) Depreciation;
(h) Expenses which are excessive in relation to the customary and reasonable costs of such items;
(i) The costs of capital improvements associated with the purchase and/or installation of separate meters or service unless the Landlord can demonstrate that such improvements benefit the Tenants;
(iii) L egal expenses allowed in the calculation of operating expenses shall include: attorneys’ fees and costs incurred in connection with successful good-faith attempts to recover Rent owing, successful good- faith unlawful detainer actions not in derogation of applicable law, and legal expenses necessarily incurred in dealings with respect to the normal operation of the Property to the extent such expenses are not recovered from adverse or other parties. Attorneys’ fees incurred in relation to the administrative or judicial proceedings in connection with Section
19.40.050(a) are not allowable as operating expenses.
g. Determination of Fair Return Rent Increase.
(i) The Hearing Officer shall set the Fair Return Rent Increase in the amount required to provide the Landlord with a fair return. (ii) In determining the Fair Return Rent Increase required to provide the Landlord with a fair return, the following shall be determined:
11 (a) The fair return in accordance with Section
19.40.050.a.(4)(a);
(b) The gross income required to produce the fair return;
(c) The rent increase needed to produce the required gross income.
(5) N otices Upon Submitting Petition.
a. Within five (5) calendar days after submission of a Landlord's Fair Return Petition to the City, the Landlord shall serve each affected Tenant with a notice of the Fair Return Petition via personal service or certified mail.
b. Within ten (10) calendar days after service on each affected Tenant, the Landlord shall file with the City a proof of service, signed under penalty of perjury, stating that a copy of the petition was served upon each affected Tenant.
(b) Tenant Petitions. If a Landlord demands or retains Unlawful Rent for a Covered Rental Unit, a Tenant may file a petition to adjust the Rent to its lawful level.
(1) Unlawful Rent. If a Tenant believes that the Landlord is demanding Unlawful Rent for a Covered Rental Unit, then the Tenant may submit a Tenant petition to the City.
(2) Decrease in Housing Services. A decrease in Housing Services of a Covered Rental Unit, without a corresponding reduction in Rent, is considered an increase in Rent.
Before filing a petition with the City, a Tenant shall provide the Landlord all of the following (copies of which must be submitted with the Tenant petition):
a. Prior written notice identifying the decrease in Housing Services of a Covered Rental Unit; and
b. A reasonable opportunity to correct the issue(s).
(3) Notices Upon Submitting Petition.
a. Within five (5) calendar days after submission of a Tenant petition for rent adjustment to the City, the Tenant shall serve the Landlord with said petition via personal service or certified mail.
b. Within ten (10) calendar days after service on the Landlord, the Tenant shall file with the City a proof of service, signed under penalty of perjury, stating that a copy of the petition was served on the Landlord.
(c) Petition Forms. Fair Return and Tenant petitions must be filed on petition forms prescribed by the City and accompanied by such supporting material as the City may require.
Each petition shall be made under penalty of perjury.
(d) Petition Fees.
(1) Fair Return Petitions.
a. Landlords filing a Fair Return Petition shall be responsible for all City costs associated with such petition, including, but not limited to the cost of the
12 Hearing Officers, any costs associated with experts, inspection fees, and any other costs. The City shall provide the Landlord with an estimate of the costs at least 45 calendar days prior to the first date set for the hearing. The Landlord shall deposit with the City the full estimated cost of the hearing at least 30 calendar days prior to the first date set for the hearing. If the deposit is not timely received by the City, the hearing will be postponed, and the hearing shall not be rescheduled until such time as the deposit is received. City shall have the right to deduct costs incurred from the deposit. Upon the completion of the hearing, the City shall prepare a final invoice of hearing costs.
b. To the extent that the final invoice amount exceeds the amount deposited by the Landlord, the Landlord shall pay the difference to the City within 10 days of receipt of the final invoice. To the extent the final invoice amount is less than the amount deposited by the Landlord, the City shall issue a refund to the Landlord for the difference.
c. The City will not issue the Hearing Officer’s final decision until the City has received full payment of the final invoice, and no Fair Return Rent Increase, if approved, may be imposed until full payment is received by the City.
(2) Tenant Petitions. There shall not be any fee charged for Tenants filing a petition for a downward adjustment of Rent.
(e) Hearing Process.
(1) Upon receipt of a Fair Return or Tenant petition and the proof(s) of service that the petition has been served as provided above, the City shall appoint a Hearing Officer to conduct a hearing on the petition and to render a final decision on the merits of the petition, subject to this Chapter and any procedures, regulations, and guidelines promulgated by the City Manager.
(2) Each party to a petition shall receive sufficient advance notice of the time, date, and place of any hearing regarding the petition.
(3) The Hearing Officer may require either party to a petition to provide any books, records, and papers deemed pertinent.
(4) If the Hearing Officer finds good cause to believe that a building or other inspection would assist in resolving the issues raised in the petition, the Hearing Officer may conduct an inspection and/or request that the City conduct an inspection. Any party submitting a petition shall be required to cooperate with the City to grant and/or secure permission to conduct such inspection, within the constraints of applicable law; failure to do so shall be considered an automatic and voluntary withdrawal of that party’s petition upon written notice by the City thereof. The parties to the petition may be present during the inspection.
(5) All hearings conducted pursuant to this Chapter shall be open to the parties and their designated representatives, but shall not be open to the public.
(f) Assistance or Representation Authorized. All parties to a petition may seek assistance from attorneys, recognized tenant organization representatives, or any other person designated by said parties.
13 (g) Consolidation. All Fair Return Petitions pertaining to Tenants in the same Property shall be consolidated for determination. Tenant petitions for Rent adjustment from Tenants residing in the same Property may be consolidated at the election of the City, in its sole discretion.
(h) Quantum of Proof and Notice of Decision. No petition shall be granted unless supported by the preponderance of the evidence submitted prior to and at the hearing. All parties to the petition shall be sent notice of the decision.
(i) Finality of Decision. The decision of the Hearing Officer shall be the final decision and shall not be appealable to the City Council. Any party disputing the final conclusions and findings of the Hearing Officer may seek review pursuant to Code of Civil Procedure Sections 1094.5 and 1094.6.
(j) Time of Hearing and Decision. The City shall not be required to accept petitions until September 1, 2024. The City shall endeavor, but shall not be required, to schedule a hearing on a petition within ninety (90) days after submittal to the City of the petition and the proof(s) of service. A final decision on a petition shall be made within a reasonable time after the conclusion of the hearing.
19.40.060 Annual Rental Registration.
(a) Registration of Covered Rental Unit. On or before July 1 of each year, a Landlord shall register any Covered Rental Unit through the City’s designated rent registry portal, shall provide all required information, shall pay the required rent registry fees, and shall annually submit reports. To the extent that a Landlord has previously complied with the requirements of former Section 19.40.110 (Rent Registry), the Landlord shall on or before July 1, 2024, update the registration previously completed pursuant to former Section 19.40.110 to comply with the requirements of this Chapter.
(b) Rent Registry Fees. A Landlord shall pay the required rent registry fees as set forth in the City Council adopted Resolution Establishing Fees and Charges for Various Municipal Services.
The fees will be used to finance the cost of the rent registry and implementation and enforcement of this Chapter including, but not limited to, administrative time and costs, legal fees and costs, and any other expense incurred to implement, administer, or enforce this Chapter.
(c) Late Fees, Penalty For Late Payment; Penalty For Incomplete Or False Information.
Should a Landlord fail to pay all or a portion of the rent registry fees, or provide incomplete or false information, the City may recover the outstanding amounts, plus accrued interest, fines, and penalties, utilizing any remedies provided by law or in equity, including municipal tax lien procedures established by ordinance or State law. Such sums shall be calculated as set forth in the Resolution Establishing Fees and Charges for Various Municipal Services and applicable law, may be applied on a per-unit basis, and may be subject to adjustment by the City Attorney or Hearing Officer.
(d) Past Due Amounts. To the extent that a Landlord owes rental registry fees, accrued interest, fines, or penalties incurred prior to the effective date of this Ordinance, such amounts shall continue to be owed and continue to accrue. See also Sections 19.40.040(b) and
19.40.050(a)(2).
14 19.40.070 Just Cause for Eviction.
(a) This Section 19.40.070 shall apply to all Landlords and Tenants in Dwelling Units within the jurisdictional limits of the City, unless otherwise exempted by State law or the provisions of this Chapter.
(b) When terminating a Tenancy For Cause or No-Fault, a Landlord must comply with all of the following:
(1) The Landlord must serve a written notice, to the Tenant that, in addition to any information required by federal or State law, the Landlord will terminate the Tenant's Tenancy because of at least one For Cause or No-Fault reason and state the ground(s) for such termination as described in Section 19.40.070(c) and/or (d);
(2) The Landlord has not accepted and will not accept Rent or any other consideration in return for the continued use of the Covered Rental Unit beyond the term of the terminated Tenancy; and
(3) The Landlord qualifies the termination as For Cause or No-Fault, as specified in this Section 19.40.070.
(c) For Cause Termination of Tenancy. If a Landlord can show any of the following circumstances with respect to a termination of Tenancy in a Covered Rental Unit, the termination qualifies as a For Cause Termination:
(1) Default in the payment of Rent.
(2) A breach in the material term of the Rental Agreement, as described in paragraph (3) of Section 1161 of the Code of Civil Procedure, including, but not limited to, violation of a provision of the Rental Agreement after being issued a written notice to correct the violation.
(3) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(4) Committing waste as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(5) The Tenant had a written Rental Agreement, and after a written request or demand from the Landlord, the Tenant has refused to execute a written extension or renewal of the Rental Agreement for an additional term of similar duration with similar provisions, provided that those terms do not violate this Chapter or any other provision of law.
(6) Criminal activity by the Tenant in the Covered Rental Unit or on the Property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the Penal Code, or criminal activity by the Tenant on or off the Property that is directed at other Tenants or the Landlord.
(7) Assigning or subletting the Covered Rental Unit in violation of the Rental Agreement, as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(8) The Tenant’s refusal to allow the Landlord to enter the Covered Rental Unit as authorized by Sections 1101.5 and 1954 of the Civil Code, and Sections 13113.7 and 17926.1 of the Health and Safety Code.
15 (9) Using the Covered Rental Unit or any portion of the Property for an unlawful purpose as described in paragraph (4) of Section 1161 of the Code of Civil Procedure.
(10) The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the Code of Civil Procedure.
(11) When the Tenant fails to deliver possession of the Covered Rental Unit after providing the Landlord written notice as provided in Section 1946 of the Civil Code of the Tenant’s intention to terminate the hiring of the Covered Rental Unit, or makes a written offer to surrender the Covered Rental Unit that is accepted in writing by the Landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the Code of Civil Procedure.
(d) No-Fault Termination of Tenancy. If a Landlord can show any of the following circumstances with respect to a termination of Tenancy in a Covered Rental Unit, the termination qualifies as a No-Fault termination. See Section 19.40.070(e) for Right of Return provisions.
See Section 19.40.080 for Rental Assistance and Moving Stipend provisions.
(1) Owner Move Ins. Intent to occupy the Covered Rental Unit by the Landlord or the Landlord’s Family Member.
a. A Landlord may not terminate a Tenancy based on intent to occupy the Covered Rental Unit by the Landlord or the Landlord’s Family Member if the intended occupant already occupies a Dwelling Unit on the Property or if a vacancy of a similar Dwelling Unit already exists at the Property.
b. The written notice terminating a Tenancy pursuant to this subparagraph shall contain the name or names and relationship to the Landlord of the intended occupant. The written notice shall additionally include notification that the Tenant may request proof that the intended occupant is a Landlord or the Landlord’s Family Member. The proof shall be provided upon request and may include an operating agreement and other non-public documents.
c. This subparagraph (1) only applies if the intended occupant moves into the Covered Rental Unit within ninety (90) days after the Tenant vacates and occupies the Covered Rental Unit as a primary residence for at least __________(__) consecutive months.
d. A Landlord shall only be allowed to terminate a Tenancy pursuant to this Subsection 19.40.070(d)(1) if the Landlord meets one of the following:
(i) is a natural person that has at least __ percent recorded ownership interest in the Property;
(ii) is a natural person who has any recorded ownership interest in the Property if one hundred percent (100%) of the recorded ownership interest is divided among owners who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild; or
(iii) is a natural person whose recorded interest in the Property is owned through a limited liability company or partnership.
e. Owner Move-In Protections for Senior, Disabled, and Terminally Ill Tenants. A Landlord may not evict a Tenant in order to occupy the Covered
16 Rental Unit by the Landlord or the Landlord’s Family Member, if the Tenant has resided in the Dwelling Unit for at least three years and is either a Senior Tenant, a Disabled Tenant, or a Terminally Ill Tenant, unless the Landlord or Landlord’s Family Member who will occupy the Covered Rental Unit is either a Senior Tenant, a Disabled Tenant, or a Terminally Ill Tenant, and no other Covered Rental Units are available at the Property.
f. As used in this Subsection 19.40.070(d)(1):
(i) “Natural person” includes any of the following:
(a) a natural person who is a settlor or beneficiary of a family trust; or
(b) if the Property is owned by a limited liability company or partnership, a natural person with a __-percent ownership interest in the Property.
(ii) “Family trust” shall mean a revocable living trust or irrevocable trust in which the settlors and beneficiaries of the trust are persons who are related to each other as sibling, spouse, domestic partner, child, parent, grandparent, or grandchild.
(2) Ellis Act Evictions. Withdrawal of all Accommodations at the Property from the rental market is subject to the following conditions and requirements pursuant to the Ellis Act:
a. Landlord complies with all provisions of the Ellis Act, unless otherwise indicated in Section 19.40.070(d)(2).
b. Not less than one hundred twenty (120) days from the date the Landlord intends to withdraw the Accommodations, and after completion of all required proceedings, if any, the Landlord shall provide written notice of termination of Tenancy to all affected Tenants.
c. Landlord's notice to all affected Tenants shall contain the following information:
(i) That the Landlord is evicting the Tenant pursuant to this Section
19.40.070(d)(2);
(ii) That within thirty (30) days of receipt of notice to terminate, the Tenant may notify the Landlord in writing that the Tenant would be interested in re-renting the Covered Rental Unit if any of the Covered Rental Units are re-offered for rent at a future time and advising the Tenant to notify the Landlord of future address changes;
(iii) A general description of the Tenant's rights to relocation assistance and any other rights set forth in this Chapter and the Ellis Act (relocation assistance and any additional special assistance shall be paid in accordance with Section 19.40.080);
(iv) Any other information required pursuant to Civil Code Sections 7060.4 and
17 (v) A self-addressed stamped postcard on which the Tenant may indicate, under penalty of perjury, whether they or another Tenant in the Covered Dwelling Unit are a Disabled Tenant or Senior Tenant.
d. A Senior Tenant or a Disabled Tenant who has resided in the Covered Rental Unit for at least one (1) year prior to the Landlord's notice of intent to withdraw the Covered Rental Unit in a Property from the residential rental market, and after receiving one hundred twenty (120) days written notice, may within sixty (60) days of receipt of the written notice of termination submit a written notice to the Landlord of Tenant’s status as a Senior or Disabled Tenant, in which event the notice of termination shall be extended to one year from the date of delivery of the notice pursuant to 19.40.070(d)(2)(c).
e. To the fullest extent permitted by law, the City adopts all tenant protections authorized by the state legislature in the following provisions of the Ellis Act: California Government Code Sections 7060.2, 7060.3, 7060.4, 7060.6, and this subdivision shall be interpreted to implement all available tenant protections in the aforementioned sections of the Government Code, as they exist as of the effective date of this Chapter. See also Section 19.40.070(e)(2) for Ellis Act right of return provisions. See Section 19.40.120(a)(3) for Ellis Act remedies, including exemplary damages.
f. Recordation of Notice:
(i) The City shall prepare a form notice consistent with Government Code Section 7060.3, and which shall specifically describe the Property where the Covered Rental Units are located, the dates applicable to the constraints and the name of the owner of record of the Property.
(ii) Any Landlord withdrawing a Property containing Covered Rental Units from the rental market shall complete such notice and shall serve such notice on the City concurrent with providing notice to the Tenants of the Landlord's intent to withdraw the Covered Rental Units from the residential rental market. The notice shall be executed by the fee owner(s) of the Property, and all such signatures shall be duly notarized.
(iii) City shall record the notice with the County Recorder. Such notice encumbers the Property for ten (10) years from the date the Accommodations are withdrawn from rent or lease.
(3) Government Orders. The Landlord is complying with any of the following:
a. An order issued by a government agency or court relating to habitability that necessitates vacating the Covered Rental Unit; or
b. An order issued by a government agency or court to vacate the Covered Rental Unit; or
c. A local ordinance that necessitates vacating the Covered Rental Unit.
(4) Intent to Demolish/Substantially Remodel. Intent to demolish or to Substantially Remodel the Covered Rental Unit.
a. For purposes of this subparagraph, a Tenant is not required to vacate the Covered Rental Unit on any days where a Tenant could continue living in the
18 Covered Rental Unit without violating health, safety, and habitability codes and laws.
b. In order to terminate a Tenancy based on intent to demolish or to Substantially Remodel the Covered Rental Unit pursuant to this subparagraph, a Landlord must provide the Tenant with written notice pursuant to Civil Code Section 1946.1 which notice shall be in no less than 12-point type, shall be in English and Spanish and include all of the following information:
(i) A statement informing the Tenant of the Landlord’s intent to demolish the Property or Substantially Remodel the Covered Rental Unit or Property.
(ii) The following statement: “If the substantial remodel of your unit or demolition of the property as described in this notice of termination is not commenced or completed, the Landlord must offer you the opportunity to re-rent your unit with a rental agreement containing the same terms as your most recent rental agreement with the Landlord at the rental rate that was in effect at the time you vacated. You must notify the Landlord within thirty (30) days of receipt of the offer to re-rent of your acceptance or rejection of the offer, and, if accepted, you must reoccupy the unit within thirty (30) days of notifying the Landlord of your acceptance of the offer.”
(iii) A description of the Substantial Remodel to be completed, the approximate expected duration of the Substantial Remodel, or if the Property is to be demolished, the expected date by which the Property will be demolished, together with one of the following:
(a) A copy of the permit or permits (or a written commitment from the applicable governmental agency that such permits are ready to be issued subject only to conditions requiring the Property or Covered Rental Unit to be vacant) required to undertake the Substantial Remodel or demolition; or
(b) I f the notice is issued to abate hazardous materials and the remodel does not require any permit, a copy of the signed contract with the contractor hired by the Landlord to complete the Substantial Remodel, that reasonably details the work that will be undertaken to abate the hazardous materials.
(iv) A notification that the Tenant has the right to return to the Covered Rental Unit upon completion of the Substantial Remodel at the same Rent and the same lease terms subject to any Lawful Rent Increases.
(e) Tenant's Right of First Return to a Covered Rental Unit; Rent Upon Return.
(1) Owner Move In Right of Return. If the intended occupant fails to occupy the Covered Rental Unit within ninety (90) days after the Tenant vacates, or if the intended occupant fails to occupy the Covered Rental Unit as their primary residence for at least __________(__) consecutive months. If Tenant re-occupies such Covered Rental Unit, Landlord shall reimburse the Tenant for reasonable moving expenses incurred. Such payment shall be in addition to any relocation assistance that was paid to the Tenant in connection with the termination notice. To the extent permitted by State law, for a new Tenancy commenced during the time periods described in this Section 19.40.070(e)(1), the Covered Rental Unit shall be offered and rented or
19 leased at the Lawful Rent in effect at the time any notice of termination of Tenancy is served, subject to any Lawful Rent Increases.
(2) Ellis Act Right of Return.
a. If within two (2) years after withdrawing a Covered Rental Unit from the rental market pursuant to Section 19.40 070(d)(2) a Landlord offers for Rent such Covered Rental Unit, in addition to any right of return that the Tenant may have pursuant to this Chapter, the Landlord shall be liable to the Tenant who was displaced from the Covered Rental Unit actual and exemplary damages provided the Tenant brings an action against the Landlord within three (3) years of the withdrawal of the Covered Rental Unit from the rental market.
b. Return Within Five (5) Years. A Tenant of a Covered Rental Unit whose Tenancy was terminated in accordance with Section 19.40.070(d)(2) is entitled to receive notice of the first right to return to the same Covered Rental Unit at the Rent previously charged for the Covered Rental Unit, subject to any Lawful Rent Increases, and subject to the Rental Agreement terms in effect at the time the Tenant vacated. A Tenant may return to the Covered Rental Unit if:
(i) The Tenant has provided the Landlord a current mailing address and/or email address and keeps those addresses updated, at which to receive notice from Landlord that Covered Rental Unit is available; and
(ii) The Landlord returns the Covered Rental Unit to the residential rental market within five (5) years after the effective date of withdrawal of a Property containing the Covered Rental Unit from the residential rental market.
c. Return Within Ten (10) Years. A Landlord of a Property containing a Covered Rental Unit that was withdrawn from the residential rental market within the previous ten (10) years must provide one hundred twenty (120) days written notice to the previous Tenants of the Landlord's intent to return the Covered Rental Unit to the residential rental market.
d. Any Tenant displaced from a Covered Rental Unit in connection with the withdrawal of a Property containing a Covered Rental Unit from the residential rental market may request the first right of return from the Landlord within thirty (30) days of receipt of a Landlord's written notice of intent to return the Covered Rental Unit to the residential rental market.
(3) Government Order Right of Return. The Landlord must give advance notice to the Tenant of the Tenant’s right to reoccupy the Covered Rental Unit if the and when the Covered Rental Unit is found to be in compliance with the order. The Tenant shall notify the Landlord, in writing, within thirty (30) days after the receipt of such notice of the Tenant’s interest to reoccupy the Covered Rental Unit and shall provide the Landlord with their contact information.
(4) Substantial Remodel Right of Return. Tenant shall have the right to return to the Covered Rental Unit upon completion of the Substantial Remodel. The Tenant shall notify the Landlord, in writing, within thirty (30) days after the receipt of such notice of the Tenant’s interest to reoccupy the Covered Rental Unit and shall provide the Landlord with their contact information.
20 (5) Rent Upon Return. In each such instance, the Landlord shall offer and Tenant shall have the right return to the same Covered Rental Unit at the Rent previously charged for the Covered Rental Unit, subject to any Lawful Rent Increases, and subject to the Rental Agreement terms in effect at the time the Tenant vacated.
(f) School Year Evictions.
(1) It shall be a defense to a no-fault eviction if a School-Aged Child resides in the Covered Rental Unit, if the effective date of the notice of termination of Tenancy falls during the School Year.
(2) Within thirty (30) days of service of the notice of termination of Tenancy, the Tenant must submit a statement with supporting evidence to the Landlord if the Tenant claims to have a School-Aged Child residing in the Covered Dwelling Unit; this information is required in addition to Tenant’s return of the postcard referenced in Section 19.40.080(a)(1). The notice of termination of Tenancy shall contain a warning that a Tenant’s failure to submit such statement within thirty (30) days of receipt of the notice shall be deemed an admission that the Tenant is not protected from eviction pursuant to this Section 19.40.070(f). (3) A Landlord may challenge a Tenant’s claim of protected status pursuant to this Section 19.40.070(f) through commencement of the eviction proceeding.
19.40.080 Relocation Assistance For No-Fault Termination Of Tenancy; Moving Stipend.
(a) Relocation Assistance for No-Fault Terminations.
(1) For a Tenancy for which just cause is required to terminate the Tenancy under Section 19.40.070, if a Landlord issues a termination notice for a no-fault reason the Landlord shall, regardless of the Tenant’s income, assist the Tenant to relocate by providing a direct payment to the Tenant as described in Subsection (a)(3), below, and (except to the extent prohibited by applicable law) the Landlord shall notify the Tenant in writing of the Tenant’s right to relocation assistance at the time the Landlord issues the notice of termination. Each termination notice shall be accompanied by a self-addressed stamped postcard (in a format approved by the City) on which the Tenant may indicate, under penalty of perjury, whether they or another Tenant in the Covered Dwelling Unit are a Protected Tenant and under which category (i.e., Lower-Income Tenant, Disabled Tenant, Senior Tenant, Terminally Ill Tenant, School- Aged Child/ren) they claim Protected Tenant status.
(2) Permanent Relocations. When relocation assistance is required by this Section
19.40.080(a)(2) to Tenants who are evicted pursuant to Section 19.40.070(d), the Landlord must make relocation assistance payments as follows:
a. Non-Protected Tenant Relocation Assistance. If the Tenancy is terminated pursuant to Section 19.40.070(d)(1)-(3) (i.e. Owner Move-Ins, Ellis Act Evictions, Governmental Orders), or pursuant to Section 19.040.070(d)(4) (i.e. Intent to Demolish/Substantially Remodel) with the intent to demolish the Covered Rental Unit, the Landlord shall pay to the Tenant relocation assistance in the amount of three times the HUD FMR Rent for the most similar unit type based on the number of bedrooms plus the Moving Stipend. Such payment shall be calculated on a per-Covered Dwelling Unit basis, without reference to the number of Tenants in the Covered Dwelling Unit.
21 b. Protected Tenant Relocation Assistance. If one of the Tenants living in the Covered Rental Unit from which the Tenants are displaced is a Protected Tenant, then all Tenants living in the Covered Rental Unit are collectively entitled to receive supplemental relocation assistance in the amount of one additional month of the applicable HUD FMR Rent. Such payment shall be calculated on a per- Covered Dwelling Unit basis, without reference to the number of Tenants and Protected Tenants in the Covered Dwelling Unit.
c. Payment Process. For permanent relocation assistance, the Landlord shall provide one-half of the relocation assistance owed to the Tenant within 15 calendar days of service of the notice of termination. The remaining relocation assistance shall be paid to the Tenant in cash no later than the date the Tenant vacates the Covered Rental Unit.
d. Moving Stipend. The Landlord shall pay to Tenant the amount of $3,000 (“Moving Stipend”), which shall be paid to the Tenant in cash no later than the date the Tenant vacates the Covered Rental Unit. Such payment shall be calculated on a per-Covered Dwelling Unit basis, without reference to the number of Tenants in the Covered Dwelling Unit.
e. Refund of Security Deposit. A Landlord must refund to the Tenant any security deposit paid by the Tenant. A Landlord may withhold any properly itemized deductions from the security deposit in accordance with California Civil Code Section 1950.5.
(3) Temporary Relocations. A Landlord must pay temporary relocation assistance to Tenants of a Covered Rental Unit who are temporarily displaced due to Substantial Remodel of Covered Rental Unit:
a. Thirty (30) Days or Fewer. A Landlord must provide the Tenant a per diem payment if the Tenant will be temporarily displaced for thirty (30) days or fewer. The Landlord shall pay to the Tenant the full amount of the per diem payment when the Tenant temporarily vacates the Covered Rental Unit.
b. Thirty-One (31) Days or More. A Landlord must provide the Tenant either a per diem payment or, at the Landlord’s election, comparable or superior temporary housing, if available.
c. Duration Extended. In the event the duration of the temporary relocation is longer than anticipated, the Landlord shall continue to pay to the Tenant the per diem relocation assistance payments on a weekly basis or continue to provide the Tenant with the comparable or superior temporary housing until the Tenant is able to return to the Covered Rental Unit.
d. Per-Diem Amount. The per diem payment amount shall be based on the Federal General Services Administration per diem rate for lodging and meals (M&IE total) in Concord, Contra Costa County, which is updated on a yearly basis. Per diem payments for meal shall be on a per Tenant basis. Per diem payments for lodging shall be on a per-Covered Dwelling Unit basis assuming a household size of four.
e. Rent Due. For temporary relocation assistance where the Landlord is providing comparable or superior temporary housing or making a per diem payment, the Tenant shall continue to pay the Lawful Rent to the Landlord for the Covered Rental Unit.
22 f. Refund of Security Deposit. A Landlord shall not be required refund to the Tenant any security deposit paid by the Tenant in connection with a temporary relocation.
g. The phrase “comparable or superior” when used in connection with a Dwelling Unit or temporary housing shall mean a Dwelling Unit or temporary housing that is similar in size or larger, has the same number of bedrooms or additional bedrooms, is located in the City, has similar amenities as the Covered Rental Unit, such as parking, laundry facilities or exercise facilities, allows pets if the displaced Tenant has a pet, and as to a Disabled Tenant, is disability accessible and ADA compliant. The Tenant, in the Tenant’s reasonable discretion may waive any of these factors in deciding whether the Dwelling Unit or temporary housing offered is comparable or superior.
(b) No Waiver. In the event the Tenant accepts an offer to temporarily or permanently move to an available comparable or superior vacant Dwelling Unit owned by the Landlord at the same Rent, the Tenant shall not be entitled to relocation assistance pursuant to Section 19.40.080 herein, but shall be eligible for the Moving Stipend. Except as expressly provided in this Subsection 19.40.080(b), a Tenant cannot waive their right to receive relocation assistance required by this Chapter.
(c) Coordination With Other Relocation Benefits. If a Tenant receives, as part of the termination of Tenancy, relocation assistance pursuant to the California Relocation Assistance Act (Government Code Sections 7260-7277), then the amount of that relocation assistance shall operate as a credit against any relocation assistance to be paid to the Tenant under this Section
19.40.070.
19.40.090 Requirement to Offer Written Lease; Minimum Lease Terms. Tenants shall have the right to written leases and minimum lease terms, as provided herein. (a) One-Year Lease Term. If a prospective Tenant wishes to rent a Dwelling Unit from a Landlord and if said Landlord wishes to rent said Dwelling Unit to said prospective Tenant, the Landlord must offer to the prospective Tenant a written lease which has a minimum term of one year. Such offer must be made in writing. If the prospective Tenant accepts the offer of a written lease which has a minimum term of one year, this acceptance must be in writing. Signing a lease which has a minimum term of one year will be considered an offer if signed by the Landlord, and an acceptance if countersigned by the prospective Tenant. If the prospective Tenant rejects the offer for a written lease which has a minimum term of one year, such rejection must be in writing.
(b) Six-Month Lease Term. If the prospective Tenant rejects the offer for a written lease which has a minimum term of one year as provided in Section 19.40.090(a), but the prospective Tenant continues to wish to rent said Dwelling Unit from said Landlord, said Landlord must offer to said prospective Tenant a written lease which has a minimum term of six months. Such offer must be made in writing. If said prospective Tenant accepts the offer of a written lease which has a minimum term of six months, this acceptance must be in writing. Signing a lease which has a minimum term of six months will be considered an offer if signed by said Landlord, and an acceptance if countersigned by said prospective Tenant. If said prospective Tenant rejects the offer for a written lease which has a minimum term of six months, such rejection must be in writing.
(c) Shorter Term. If said prospective Tenant rejects the offer for a written lease which has a minimum term of six months as provided in Section 19.40.090(b), said Landlord and said
23 prospective Tenant may then enter into a written lease that provides for a term of fewer than six months.
(d) Renewal of Lease. If both the Landlord and Tenant wish to continue the Tenancy, upon the expiration of a Rental Agreement which has a minimum term of one year or six months, a written Rental Agreement shall be offered again in accordance with the procedures set forth in Sections 19.40.090(a)-(c). The Landlord shall have no obligation to re-offer a Tenant a one-year or six-month lease term if the Tenant has previously rejected such offers in accordance with the procedures set forth in Sections 19.40.090(a)-(c), and has a Rental Agreement with a term of fewer than six months.
(e) Existing Tenancies. Any Tenant renting a Dwelling Unit may request a written lease with a minimum term of either one year or six months, provided such Tenant has not previously received a written notice of Rental Agreement violation pursuant to Code of Civil Procedure Section 1161 and such violation remains uncured. The Tenant shall do so via written notice to the Landlord. The Landlord shall, upon receipt of such notice, offer to said Tenant a written Rental Agreement on terms substantially similar to those of the existing rental arrangement (except as to length of term) in accordance with the procedures set forth in this Section
19.40.090, as applicable.
19.40.100 Notice of Tenant Rights.
(a) A Landlord subject to this Chapter shall provide notice to the Tenant as follows:
(1) For any Tenancy commenced or renewed on or after the effective date of this Ordinance, as an addendum to the Rental Agreement, or as a written notice signed by the Tenant, with a copy provided to the Tenant.
(2) For any Tenancy existing prior to the effective date of this Ordinance, by written notice to the Tenant no later than 180 days after the effective date of the Ordinance adopting this Chapter, or as an addendum to the Rental Agreement.
(b) The notification and Rental Agreement provision shall be in no less than 12-point type, shall be in English and Spanish, and shall include the following:
Concord law limits the amount your rent can be increased. See Chapter 19.40 of the Concord Municipal Code for more information. Concord law also provides that, a Landlord must provide a statement of cause in any notice to terminate a Tenancy. See Section 19.40 070 of the Concord Municipal Code for more information. In addition, City of Concord Municipal Code Sections 19.40.070(e) and 19.40.080 provide tenants evicted on a no-fault basis with the right to return to the Tenant’s original Covered Rental Unit if such Covered Rental Unit is returned to the market, and the right to relocation assistance and a moving stipend; see City of Concord Municipal Code Sections
19.40.070(e) and 19.40.080 for more information.
City of Concord Municipal Code Section 19.40.090 provides tenants with the right to written leases and minimum lease terms. Landlords must offer tenants the option to enter into a one (1) year written lease. If a tenant declines a one (1) year written lease, the landlord must offer that tenant the option to enter into a six (6) month written lease. It is the tenant’s choice whether or not to enter into such a written lease with a landlord. If tenant rejects the initial offers of a written lease with a minimum lease term of 12 or 6 months, the tenant and landlord may enter into a written lease with a term of fewer than 6 months. See City of Concord Municipal Code Section 19.40.090 for more information.
24 (c) Manner. Landlords must provide the notice to Tenants in writing if the application and Rental Agreement are processed in writing, electronically if the application and/or Rental Agreement are processed electronically, or both if both methods are utilized. The provision of the notice shall be subject to Civil Code Section 1632.
19.40.110 Procedures and Guidelines.
The City Manager is hereby delegated the authority to promulgate procedures, regulations, and guidelines to aid in the implementation of this Chapter.
19.40.120 Remedies.
(a) Remedies and penalties.
(1) If a Landlord violates the terms of this Chapter, an aggrieved Tenant may institute a civil action for injunctive relief, actual, statutory, or direct money damages, and any other relief that the court deems appropriate, which shall include a civil penalty of no less than $2,000, and no more than $5,000, per violation, at the discretion of the court. If the aggrieved Tenant is a Senior Tenant or a Disabled Tenant, the court may award an additional civil penalty of up to $5,000 per violation, at the discretion of the court.
(2) Any person who violates, aids, abets, or incites another person to violate this Chapter is liable in a court action for each and every such offense for money damages of not less than three times actual damages suffered by an aggrieved Tenant (including damages for mental or emotional distress), or for minimum damages in the sum of $1,000, whichever is greater, and whatever other relief the court deems appropriate. In the case of an award of damages for mental or emotional distress, said award shall only be tripled if the trier of fact finds that the defendant Landlord acted in knowing violation of or in reckless disregard of this Chapter.
(3) If within two (2) years after withdrawing a Covered Rental Unit from the rental market pursuant to Section 19.40 070(d)(2) a Landlord offers for Rent such Covered Rental Unit, in addition to any right of return that the Tenant may have pursuant to this Chapter, the Landlord shall be liable to the Tenant who was displaced from the Covered Rental Unit actual and exemplary damages provided the Tenant brings an action against the Landlord within three (3) years of the withdrawal of the Covered Rental Unit from the rental market.
(b) The court may award punitive damages in a proper case as set out in Civil Code Section 3294 and pursuant to the standards set forth in that code section or any successor thereto, but may not award both punitive damages and triple damages.
(c) The court shall award reasonable attorneys’ fees and costs to a Tenant who prevails in any such action. The court shall award reasonable attorneys’ fees and costs to a Landlord who prevails in any such action if the court determines that the Tenant’s action was frivolous.
(d) The remedies available under this Section 19.40.120 shall be in addition to any other existing remedies which may be available to the residential tenant under applicable federal, State, county, or local law.
(e) Except in connection with a Fair Return Petition or a Tenant Petition, no administrative remedy need be exhausted prior to filing suit pursuant to this Chapter.
(f) Authorization of City Attorney to enforce the Ordinance. The City Attorney shall have the right and authority, but not the obligation, to enforce this Chapter, including bringing actions
25 for injunctive relief, equitable relief, restitution, and/or penalties to ensure compliance with this Chapter.
(g) To the extent permitted by law, any violation of this Chapter shall be a defense to an unlawful detainer action.
19.40.130 Waiver Prohibited.
Any waiver of rights under this Chapter shall be void as contrary to public policy.
19.40.140 Severability.
If any section, subsection, sentence, clause or phrase of this Chapter is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this Chapter. The City Council declares that it would have adopted this Chapter and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause, or phrase be declared invalid.
Concord City Council Meeting 2/13/2024 Attachment 2 1 | Page
City of Concord
Rent Increase Caps in California, and Just Cause for Eviction Unit Coverage and Relocation Amounts Note: Various jurisdictions use CPI dates other than April of each year, as is proposed in Concord’s draft rent stabilization provisions.
As a result, the current allowable rent increases may vary between jurisdictions despite the rent increase formulas being similar.
City % of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase (1/1/24)
Just Cause for Eviction in Bay Area
Single-
Family
Homes
Covered
Permanent Relocation
Assistance Amount
State of CA - AB
1482 Tenant
Protection Act
5% +
local CPI 10% N/A Varies per region No Greater of one month of the tenant’s rent or $1,000
Alameda City 70% of
CPI 5% 1% 2.90% Yes
2 X FMR, moving and
packing expenses, storage
costs, applicable taxes
Antioch 60% of
CPI 3% N/A 1.68% Yes N/A
Baldwin Park 100% of
CPI 3% 1% 3.80%
Berkeley 65% of
CPI 7% 0% 4.40% Yes
$18,533 for each household
$6,177 extra for qualifying
households (increased by
CPI annually)
Beverly Hills
(Chapter 6
tenancies)
100% of
CPI N/A 3% 3.20%
Commerce 5% +
local CPI 10% N/A 8.80%
2 | Page
City % of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase (1/1/24)
Just Cause for Eviction in Bay Area
Single-
Family
Homes
Covered
Permanent Relocation
Assistance Amount
Culver City 100% of
CPI 5% 2% 4.25%
East Palo Alto 80% of
CPI 10% 0% 4.20% Yes
$9,444.11 for each tenant
residing in the property for
less than 2 years.
$12,591.14 for each tenant
residing in the property for
2 years or longer.
Additional $3,148.04
Tenant with qualifying
condition
(increased by CPI annually)
3 | Page
City % of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase (1/1/24)
Just Cause for Eviction in Bay Area
Single-
Family
Homes
Covered
Permanent Relocation
Assistance Amount
Fairfax
75% of
CPI 5% 0% 2.52%
Hayward 5% 5.00% Yes One month rent or waiver
of last month rent
Inglewood
(5+ units)
100% of
CPI 10% 3% 3.80%
Inglewood
(1-4 units) 5% +
local CPI 10% 8.80%
Larkspur 5% +
local CPI 7% 7.00% No
3 months of the tenant's
rent or $5,000, whichever is
greater.
Additional $3,000 for
elderly, disabled, terminally
ill.
Los Angeles City 100% of
CPI 8% 0% 4.00%
Los Angeles County
(Unincorporated)
100% of
CPI
8%
0% 4.00%
4 | Page
City % of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase (1/1/24)
Just Cause for Eviction in Bay Area
Single-
Family
Homes
Covered
Permanent Relocation
Assistance Amount
Los Gatos 70% of
CPI 5% N/A N/A N/A
Mountain View 100% of
CPI 5% 2% 5.00% No
Displacement of 1 or 2
rental units:
Per rental unit if household
income does not exceed
120% AMI + $5,000:
1) Full refund of security
deposit, and
2) 3 months median market
rent for similar sized
apartment, and
3) Additional $8,000 for
special circumstance
tenants
5 | Page
City % of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase (1/1/24)
Just Cause for Eviction in Bay Area
Single-
Family
Homes
Covered
Permanent Relocation
Assistance Amount
Mountain View
Continued
Displacement of 3 or more
rental units:
Rent differential payment if
household income does not
exceed 80% AMI. Rent
differential is calculated by
lesser of 42 months of
(1) 30% of household
income or
(2) current rent for unit
being demolished
Additional $5,250 for
qualifying households
(households living in
affordable residential rental
units - income does not
exceed 80% of the AMI)
Oakland 60% of
CPI 10% 3% 2.50% Yes
Studio/1-Bed: $7,861.52
2-Bed:
$9,675.72
3+ B ed: $11,943.47
+ $2500 (single payment
per unit) for qualifying
tenants
6 | Page
City % of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase (1/1/24)
Just Cause for Eviction in Bay Area
Single-
Family
Homes
Covered
Permanent Relocation
Assistance Amount
Oxnard 4% N/A 4.00%
Palm Springs 75% of
CPI
Pomona 100% of
CPI 4% N/A 4.00%
Richmond 60% of
CPI 3% 0% 3.00% Yes
Owner Move In
Studio - $4,293.97 (if
qualified tenant $4,988.74)
1-Bed: - $6,630.33 (if
qualified tenant $7,639.88)
2+ Bed: $9,029.40 (if
qualified tenant
$10,354.97)
Ellis Act/Substantial
Rehab/Government Order
Studio - $8,650.66 (if
qualified tenant $9,913.52)
1-Bed: - $13,260.66 (if
qualified tenant
$15,280.99)
2+ Bed - $17,996. 08 (if
qualified tenant
$20,711.17)
7 | Page
City % of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase (1/1/24)
Just Cause for Eviction in Bay Area
Single-
Family
Homes
Covered
Permanent Relocation
Assistance Amount
Sacramento 5% +
local CPI 10% 9.20%
San Francisco 60% of
CPI 3.60% Yes
Owner Move
In/Demolition/Ellis/Capital
Improvement
Work/Substantial Rehab
3/1/23 to 2/29/24 =
$7,540/tenant or
$22,618/unit (additional
$5,027 for EACH elderly,
disabled or household with
minor)
3/1/24 to 2/28/25 =
$7,912/tenant or
$23,733/unit (additional
$5,275 for EACH elderly,
disabled or household with
minor)
8 | Page
City % of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase (1/1/24)
Just Cause for Eviction in Bay Area
Single-
Family
Homes
Covered
Permanent Relocation
Assistance Amount
San Francisco
Continued
Relocation for Ellis
3/1/23 to 2/29/24 =
$10,160/tenant or
$30,480/unit (additional
$6,807.20 for EACH elderly,
disabled or household with
minor)
3/1/24 to 2/28/25 =
$10,660.89/tenant or
$31,982.66/unit (additional
$7,142.95 for EACH elderly,
disabled or household with
minor)
San Jose 5% 5.00% No
Studio:
$6,925
1-Bed: $8,400
2-Bed: $10,353
3-Bed: $12,414
9 | Page
City % of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase (1/1/24)
Just Cause for Eviction in Bay Area
Single-
Family
Homes
Covered
Permanent Relocation
Assistance Amount
San Jose Continued
Ellis Act
Studio: $6,925 (+ qualified
assistance $2,770) (+
special assistance $1,200)
1-Bed: $8,400 (+ qualified
assistance $3,360) (+
special assistance $1,400)
2-Bed: $10,353 (+ qualified
assistance $4,141) (+
special assistance $1,700)
3-Bed: $12,414 (+ qualified
assistance $4,966) (+
special assistance $2,000)
Santa Ana 80% of
CPI 3% 2.54%
Santa Monica 75% of
CPI 3% 0% 2.80%
West Hollywood 75% of
CPI 3% 0% 2.50%
10 | Page
% of CPI
cap
% +/- CPI
cap Max Cap Min Cap
(floor)
Current
Allowable Rent
Increase
(12/18/23)
Average 81.2% 5.0% 6.19% 1% 4.33%
Count (out of 29
listed jurisdictions) 21 5 26 15 26
1 Permanent Relocation Assistance Applied
3X HUD
FMR + $3,000 Moving Stipend Protected Tenants: 4X HUD FMR + $3,000 Moving Stipend
Studio: 3 X $1,825 + $3,000 = $8,475 Studio: 4 X $1,825 + $3,000 = $10,300 1- Bed: 3 X $2,131 + $3,000 = $9,393 1-Bed: 4 X $2,131 + $3,000 = $11,524 2- Bed: 3 X $2,590 + $3,000 = $10,770 2- Bed: 4 X $2,590 + $3,000 = $13,360 3-Bed: 3 X $3,342+ $3,000 = $13,026 3- Bed: 4 X $3,342+ $3,000 = $16,368 4- Bed: 3 X $3,954 + $3,000 = $14,862 4- Bed: 4 X $3,954 + $3,000 = $18,816 Attachment 3
City of Concord
Concord City Council Meeting
2/13/2024
Attachment 4
Appl
icability of the Proposed Ordinance by Housing Type
Revised: 1/
24/24
Type of Unit
Rent
Stabilization
Just Cause
for Eviction
Single Family Homes/Condominiums
Multi Family Complex 2 or more units (built before
Feb 1, 1995)
Multi Family Complex 2 or more units (built after
Feb 1, 1995)
Accessory Dwelling Units
Mobile Home Units
Low Income Housing Tax Credit (LIHTC) Units (built
before Feb 1, 1995)
Low Income Tax Credit (LIHTC) Housing Units (built
after Feb 1, 1995)
Affordable housing with annual rent increases
capped at a 5% as indicated through regulatory or
deed-restriction agreements
Transient and tourist hotel occupancy
Institutional Facilities 1
Dormitories
Owner-occupied duplexes
Units where owner and tenant share kitchen and
bathroom
Emergency Shelters
Residential Facilities 2
1 Institutional Facilities include housing accommodations in a hospital, religious facility, extended care facility, licensed residential care facility for the elderly, or an adult residential facility as defined in City Municipal Code Chapter 19.40 Residential Tenant Protection Program.
2 Residential Facilities include group housing, residential care facilities, assisted living facilities, supportive housing, and transitional housing.
City and County of San Francisco Residential Rent Stabilization and Arbitration Board
Printed on 100% post-consumer recycled paper
25 Van Ness Avenue #320 sf.gov/rentboard Phone 415.252.4600 San Francisco, CA 94102-6033 [email protected]
June 7, 2023
Angela Calvillo
Clerk of the Board
Board of Supervisors, Room 244
1 Carlton B. Goodlett Place
San Francisco, CA 94102
Re: 2022-2023 Rent Board Annual Report on Eviction Notices (Revised) Dear Ms. Calvillo:
Pursuant to Section 37.6(j) of the Rent Ordinance, Chapter 37 of the San Francisco Administrative Code, the Rent Board is providing its annual report on the number of eviction notices filed with the Department. During the period from March 1, 2022 through February 28, 2023, a total of 1,197 eviction notices were filed with the Department. This figure includes 288 notices given due to failure to pay rent, which are not required to be filed with the Department. Some categories of notices saw increased filings while the largest categories saw modest decreases. The largest percentage increase was in demolish or remove from housing use eviction notices which increased from 15 to 65 notices. Capital improvement eviction notices increased from 25 to 85 notices. Owner move-in eviction notices increased from 45 to 89. Nuisance eviction notices decreased from 452 to 378. Notices for breach of rental agreement decreased from 161 to 131. The largest percentage decrease was in eviction notices for roommate eviction which went down from 21 to 14 notices, followed by Ellis Act eviction notices which decreased from 74 to 54 notices. The 1,197 total notices filed with the Department this year represents a 14% increase from last year’s total of 1,048.
The list on the following page gives the total number of eviction notices filed with the Department, the stated reason for the eviction and the applicable Ordinance section.
DAVID GRUBER
PRESIDENT
DAVE CROW
JULIET HALEY
RICHARD HUNG
ASHLEY KLEIN
CATHY MOSBRUCKER
KENT QIAN
KION SAWNEY
ARTHUR TOM
DAVID WASSERMAN
London N. Breed
Mayor
Christina A. Varner
Executive Director
Attachment 5
Number Reason Ordinance Section
288 non-payment of rent 37.9(a)(1)
3 habitual late payment of rent 37.9(a)(1)
131 breach of rental agreement 37.9(a)(2)
378 committing a nuisance 37.9(a)(3)
7 illegal use of rental unit 37.9(a)(4)
0 failure to renew agreement 37.9(a)(5)
4 failure to permit landlord access 37.9(a)(6)
31 unapproved subtenant 37.9(a)(7)
89 owner/relative move-in 37.9(a)(8)
2 condo conversion sale 37.9(a)(9)
65 demolish or remove from housing use 37.9(a)(10)
85 capital improvement work 37.9(a)(11)
0 substantial rehabilitation 37.9(a)(12)
54 Ellis (withdrawal of unit) 37.9(a)(13)
0 lead remediation 37.9(a)(14)
1 development agreement 37.9(a)(15)
0 good Samaritan 37.9(a)(16)
14 roommate eviction 37.9(b)
45 other or no reason given
1197 Total Eviction Notices
The increase or decrease since last year for each just cause (excluding categories for which filing is not required or where the department did not receive at least 10 notices in 2022-23) is as follows:
Just Cause Reason 2021/22 2022/23 Change
Demolish or remove from housing 15 65 +333%
Capital improvement 25 85 +240%
Owner/relative move-in 45 89 +98%
Other 24 45 +88%
Unapproved subtenant 36 31 -14%
Nuisance 452 378 -16%
Breach of rental agreement 161 131 -19%
Ellis withdrawal of unit 74 54 -27%
Roommate eviction 21 14 -33%
During the period March 1, 2022 - February 28, 2023, tenants filed a total of 152 Reports of Alleged Wrongful Eviction with the Rent Board. Of the 152 reports filed, 31 involved school-age children, with 16 of these 31 reports relating to evictions occurring during the school term. Of the 152 total reports, 16 specifically objected to no-fault evictions, and 4 of these 16 reports involved school-age children, with 1 report relating to evictions occurring during the school term.
This eviction report and eviction reports from prior years can also be found on our web site under “Rent Board Statistics and Reports,” under the section “Annual Eviction Reports.” A monthly breakdown of all eviction filings by category is also enclosed with this report. Please contact me at [email protected] or 415-252-4650 should you have any questions.
Sincerely,
Christina Varner
Executive Director
Residential Rent Stabilization and Arbitration Board
Mayor London N. Breed
Supervisor Aaron Peskin
Supervisor Connie Chan
Supervisor Catherine Stefani
Supervisor Joel Engardio
Supervisor Dean Preston
Supervisor Matt Dorsey
Supervisor Myrna Melgar
Supervisor Rafael Mandelman
Supervisor Hillary Ronen
Supervisor Shamann Walton
Supervisor Ahsha Safaí
Commissioner David G. Gruber
Commissioner Dave Crow
Commissioner Juliet Haley
Commissioner Richard Hung
Commissioner Ashley Klein
Commissioner Cathy Mosbrucker
Commissioner Kion Sawney
Commissioner Arthur Tom
Commissioner Kent Qian
Commissioner David Wasserman
Library Documents Dept.
From: SBC Properties <[email protected]>
Sent: Wednesday, January 31, 2024 7:37 PM
To: Concord City Council Email <[email protected]>; City Clerk <[email protected]>
Cc: SBC Properties <[email protected]>
Subject: rent stabilizaton
1/31/24
Dear Mayor Birsan and Members of the City Council,
I am extremely concerned about your strict rent control proposal and urge you to vote no.
I maintain my position that the development of this disastrous ordinance has been predicated on false allegations that Concord housing providers gouge renters and terminate tenancies in mass numbers. Don’t ignore the fact that your own rent registry data shows that in 2022 rent increases were at or below the state-mandated rent cap outlined in the Tenant Protection Act of 2019, passed as AB 1482, and that 93.8% of tenancy terminations were due to renters voluntarily moving out and not due to an owner-initiated termination.
Your revised rent control ordinance has gone too far by capping rents so low that a housing provider will struggle to maintain the property. The relocation fees are excessive and will deter housing providers from keeping their units in the rental market.
The new attempt to require a percentage of ownership to constitute an owner move-in -- plus residency requirements and a 1:1 provision -- is more government overreach.
Please look at the data and reject this ordinance. Do not subject Concord to a damaging housing environment.
-WE WERE AT THE MEETING YESTERDAY. AND AS SMALL BUSINESS OWNER, WE FOUND THE ISSUE TO BE VERY BURDENSOME FOR US.
-SINCE WE CANNOT GET A FIXED RATE LOAN FOR OUR SMALL APARTMENT, WE HAD
TO HAVE ADJUSTABLE MORTGAGE, AND THE INTEREST RATE HAD GONE UP QUITE A LOT FOR THE LAST FEW YEARS. ON TOP OF THAT, INSURANCE COST HAS RISEN 4-5 TIMES FROM THE PREVIOUS 2YEARS DUE TO MANY HOME INSURANCES LEAVING CALIFORNIA DUE TO DROUGHT, WILD-FIRE IN THE REGION. OTHERS SUCH AS WATER, CITY FEES, ETC... HAS GONE UP SO MUCH.
Attachment 6
-SO THE CITY PROPOSAL IS GOING TO MAKE US, ESPECIALLY SMALL OWNER
LANDLORD, TO TRY TO GET OUT OF THE AREA BECAUSE OF THE CITY RESTRICTION ON RENT CONTROL.
-I HOPE YOU WILL NOT PASS THIS PROPASAL. THE STATE HAS ALREADY HAVE A LIMIT ON RENT ALREADAY.
-tHANKS.
Trisha Tran of SBC Properties
January 29, 2024
Dear Mayor Birsan and Members of the Ci1y Council,
I am extremely concerned about your strict rent control proposal and urge you to vote no.
I maintain my position that the development of this disastrous ordinance has been predicated on false allegations that Concord housing providers gouge renters and terminate tenancies in mass numbers. Don't ignore the fact that your own rent registry data shows that in 2022 rent increases were at or below the state-mandated rent cap outlined in the Tenant Protection Act of 2019, passed as AB 1482, and that 93.8% of tenancy terminations were due to renters voluntarily moving out and not due to an owner-initiated termination.
Your revised rent control ordinance has gone too far by capping rents so low that a housing provider will struggle to maintain the property. The relocation fees are excessive and will deter housing providers from keeping their units in the rental market. The new attempt to require a percentage of ownership to constitute an owner move-in -- plus residency requirements and a 1 :1 provision - is more government overreach.
Please look at the data and reject this ordinance. Do not subject Concord to a damaging housing environment.
'I •
1§6 years in Concord
Owner of 3 Concord homes.
From: Alexandra Price <[email protected]>
Sent: Wednesday, January 31, 2024 4:58 PM
To: Concord City Council Email <[email protected]> Subject: Rent increase cap
Please please vote for the Concord rent increase limit. The older I get the more afraid I become that I will not be able to afford a home. I have lived in Concord for almost 30 years. Every increase is devastating.
Thank you,
Alexandra Price
Sent from my iPhone
From: Emerald Properties <[email protected]>
Date: January 30, 2024 at 2:58:14 PM PST
To: "Birsan, Edi" <[email protected]>, "Obringer, Carlyn" <[email protected]>, "Hoffmeister, Laura" <[email protected]>, "Aliano, Dominic" <[email protected]>, [email protected], "Barone, Valerie" <[email protected]>
Subject: Concord Rent Control
Mayor Birsan and Council Members,
Good evening,
I am John Sullivan, a longtime Housing Provider here in Concord. Once this 60% CPI surfaced, I and other longtime Housing Providers became very concerned. How could we ever cope with restrictions and still provide adequate services? Longtime Concord Businessmen – as longtime Housing Providers (over 30 years for me) we have gained a genuine respect and closeness to our city. As Housing providers with over 20 large complexes, we are also employers here. We provide dozens of good paying jobs.
We pay city business licenses, huge County and City Real Estate Taxes. We also generate, for our city, considerate sales tax by purchasing appliances, kitchen cabinets, flooring, construction, and maintenance materials. We respect our tenants; many are long-term and benefit from rents below market. For the years prior to Covid-19 we rarely initiated evictions. For me, managing 300 apartments, we had many years of no evictions and I’m sure my colleagues’ records would show the same.
I ask “Why Penalize Us” – Handcuffing us to this 60% CPI, while we have to contend with inflating prices – insurance, workers comp premiums, employer health insurance, construction, and renovation materials etc. All at double digit percentage inflation.
Understand our apartments are older, requiring high renovation expenses.
Five Percent Rent Cap – Scuttle this CPI connection. It’s not relative to our shelter and renovations services, as others will explain. It’s like sitting down with our Police Chief and Fire Chief and explaining that their budgets will big time, be cut but the same services will be expected. Common sense tells us this CPI proposal won’t work, so why waste time with it. Instead adopt a cap of 5%. Our state regulations are at 10%. Our Tenants will be protected they will not receive a 5% every year and we can avoid a lot of turmoil and get back to business.
The Disastrous Fallout – Expect constant Legal challenges with 60% CPI, which will generate a huge workload for our City Legal Department. Do you want to impose that and expect our Concord Taxpayers to pay the bill? The reality is under todays Fair Return laws, The housing Providers will prevail at a legal challenge. So why invite this division and burden our taxpayers with the expense just adopt the 5%.
Wrong Message – Housing Providers, as businesspersons contribute to our local economy. With other Cities competing for employers – sales taxes, etc. – by hitting us in the gut, you send the wrong message.
From us Longtime Concord Businessmen with a genuine attachment to our city please, we respectfully ask each of you to do what’s right for our city – your constituents – over the long haul.
Thank you,
John Sullivan
510-538-4898
From: [email protected] <[email protected]>
Sent: Friday, February 2, 2024 3:14 AM
To: Concord City Council Email <[email protected]>; City Clerk <[email protected]>
Subject: Regarding rent control in concord
Dear Mayor Birsan and Members of the City Council,
I am extremely concerned about your strict rent control proposal and urge you to vote no.
I maintain my position that the development of this disastrous ordinance has been predicated on false allegations that Concord housing providers gouge renters and terminate tenancies in mass numbers. Don’t ignore the fact that your own rent registry data shows that in 2022 rent increases were at or below the state-mandated rent cap outlined in the Tenant Protection Act of 2019, passed as AB 1482, and that 93.8% of tenancy terminations were due to renters voluntarily moving out and not due to an owner-initiated termination.
Your revised rent control ordinance has gone too far by capping rents so low that a housing provider will struggle to maintain the property. The relocation fees are excessive and will deter housing providers from keeping their units in the rental market.
The new attempt to require a percentage of ownership to constitute an owner move-in -- plus residency requirements and a 1:1 provision -- is more government overreach.
Please look at the data and reject this ordinance. Do not subject Concord to a damaging housing environment.
Thank you.
Regards,
Jim yan
Concerned rental property owner in concord
Sent from my iPhone
From: Patti Parke <[email protected]>
Sent: Saturday, February 3, 2024 1:45 PM
To: City Clerk <[email protected]>
Subject: Rent Control proposal
To Whom I May Concern:
Being a Property Manager in the local area for the past 35 years (now retired) and investing in several rentals planning for our retirement, I can say that there were no words to express my lack of understanding that this proposed rental control program is so one sided. I have seen it all over the years and yes, there are bad owners, but there are also bad tenants. Owners paid me to manage their properties as property management is a very difficult profession and many owners simply could not deal with the problems that many tenants cause. To take so much control out of the owners and managers, limiting their ability to not only make a profit but sending them into financial chaos. If owners cannot keep up with inflation by increasing rents, how do they keep up with necessary improvements and repairs and management fees? Just recently I paid $89 for one gallon of paint. I understand the need for housing but it should be shared by all citizens of the community not penalize only those who own rentals. Think about this: an employee who has been promised a pension. They are counting on that pension when retiring and plan accordingly. Upon retirement they are told their pension is going to be less than expected as part of their pension is needed to help those more unfortunate. Many count on this income/rent and have put dollars, time, effort, into “their pension”. One of the most punitive proposals is limiting the owner to move into their rental property without paying horrific fees or if the tenant claims they are disabled the owner must be disabled if over 65? Paying moving costs, month’s rent to moving tenants is way off the mark.
Perhaps it would be beneficial if the members of the board who are responsible for this one sided proposal would take a course in Property Management and then go in the field for six months and find out what the real story is regarding the rental market. Then come back to the drawing board and I think their attitude would be very different.
Patricia Parke-Bishop
Sent from Mail for Windows
From: Daniel Kroos <[email protected]>
Sent: Saturday, February 3, 2024 1:24 PM
To: Concord City Council Email <[email protected]> Subject: Opposition to Rent Control
Dear City Council,
I would like to express my opposition to the recently proposed rent controls in Concord. As a Concord property tax payer (973 Honister Ln Concord CA 94518) I want to let my representatives know I believe in a free market economy to dictate the cost of housing not local governments.
Respectfully,
Daniel Kroos
2/5/2024
Anonymous left voicemail and stated opposition to rent control.
Stefanie Ananthan
Deputy City Clerk
From: Jim and Ginny Harrington <[email protected]> Sent: Monday, February 5, 2024 4:26 PM
To: City Clerk <[email protected]>
Subject: Rent Stabilization
Dear City Clerk:
We strongly oppose the Rent Stabilization law that the City of Concord is trying to pass.
My husband and I are RPOs in Concord. We have worked very hard to pay off our house and have been renting it for many years. We are both retired and this has been a source of income for us. We have had the same renters for many years and have not increased the rent for quite a while because they are taking care of the property and are good renters. We don't need the government stepping in trying to control the rental market. If this passes, you are disincentivizing anyone from having single family rental property. Rent stabilization does not make housing more affordable for new renters who will face higher market-driven prices.
James and Virginia Harrington
From: Barone, Valerie <[email protected]> Sent: Tuesday, February 6, 2024 9:56 AM
To: Jay McCoy <[email protected]>; City Clerk <[email protected]>; Huckabay, Sophia <[email protected]>
Subject: RE: Comments on Rent Control from Jay McCoy
Jay,
Thank you for taking the time to share your ideas.
I do want to clarify that the current Council proposed language for the Rent Stabilization elements of the new Ordinance would exempt single family homes that are being rented from local control over how much they raise their rents.
Single family homes that are rented would still be subject to the Just Cause for Eviction provisions in the ordinance, which do allow for evictions with cause (i.e., failure to pay rent, significant violation of the lease, etc.) without any relocation payment. However, an eviction for a “just cause,” (i.e., owner move-in, etc.) would require payment of a relocation payment per the draft Ordinance.
Here is a link to the last meeting on the topic. You may find it useful to review the staff report, the draft ordinance, and view the meeting.
Please also know that Council will be deliberating on the item at their meeting on February 13, but that public comment during the meeting has been closed. I will, of course, share your e- mail and this response with the full Council and it will be part of the public record for the meeting on February 13th.
Valerie
Valerie Barone, City Manager (she/her/hers)
City of Concord | Website: www.cityofconcord.org
(925) 671-3150 | [email protected]
1950 Parkside Drive, MS/01, Concord, CA 94519
Subscribe to our City News e-newsletter to stay informed about what's happening in your community!
From: Jay McCoy <[email protected]>
Sent: Tuesday, February 6, 2024 8:50 AM
To: Barone, Valerie <[email protected]>
Subject: Comments on Rent Control from Jay McCoy
Hi Valerie
I’ve been following the Rent Control activities because I’m a landlord.
I own 3 rental homes in Concord and 2 in Antioch.
I’d say I’m neutral on the creation of new, Rent Control rules.
However, I have some thoughts the new rules.
If I were in charge of writing a Rent Control ordinance, this would be my approach:
KEEP THE CONTENT SIMPLE
For existing tenants that have been in the same unit or house for 2 years or more:
Roll back the rental amount to what it was 2 years ago.
Cap future rent increases at $60 per year.
For new tenants who are renting a unit or house for the first time:
Cap the rental increase at $500 over the previous rental amount.
As a landlord, I am concerned about the dollar impact rental increases have on tenants.
I have no sympathy for landlords who are in it for the money with little compassion.
I think the best solution to the current controversy is for the City to give landlords and tenants, each, a portion of what they want.
Thanks for listening.
Jay
From: Barone, Valerie <[email protected]> Sent: Tuesday, February 6, 2024 10:28 AM
To: Jim and Ginny Harrington <[email protected]> Cc: City Clerk <[email protected]>; Huckabay, Sophia <[email protected]> Subject: RE: Rent Stabilization
Dear Jim and Virginia,
Thank you so much for sending in your thoughts on the draft Rent Stabilization and Just Cause for Eviction Regulations being considered by the Concord City Council on February 13th .
I do want to clarify that the current Council proposed language for the Rent Stabilization elements of the new Ordinance would exempt single family homes that are being rented from local control over how much they raise their rents.
If the Ordinance is adopted by Council as currently proposed, single family homes that are rented would be subject to the Just Cause for Eviction provisions in the draft ordinance, which allows for evictions with cause (i.e., failure to pay rent, significant violation of the lease, etc.) without any relocation payment. However, an eviction for a “just cause,” (i.e., owner move-in, etc.) would require payment of a relocation payment per the draft Ordinance.
Here is a link to the last meeting on the topic. You may find it useful to review the staff report, the draft ordinance, and view the meeting.
Please also know that Council will be deliberating on the item at their meeting on February 13, but that public comment during the meeting has been closed as it occurred on January 30th.
I will share your e-mail and this response with the full Council as part of the public record for the meeting on February 13th. The staff report for the February 13th meeting will be posted on the City’s website no later than 5pm on Friday February 9th.
Again, thanks for writing in.
Valerie
Valerie Barone, City Manager (she/her/hers)
City of Concord | Website: www.cityofconcord.org
(925) 671-3150 | [email protected]
1950 Parkside Drive, MS/01, Concord, CA 94519
Subscribe to our City News e-newsletter to stay informed about what's happening in your community!
From: Jim and Ginny Harrington <[email protected]> Sent: Monday, February 5, 2024 4:27 PM
To: Barone, Valerie <[email protected]>
Subject: Rent Stabilization
Dear City Manager Barone:
We strongly oppose the Rent Stabilization law that the City of Concord is trying to pass.
My husband and I are RPOs in Concord. We have worked very hard to pay off our house and have been renting it for many years. We are both retired and this has been a source of income for us. We have had the same renters for many years and have not increased the rent for quite a while because they are taking care of the property and are good renters. We don't need the government stepping in trying to control the rental market. If this passes, you are disincentivizing anyone from having single family rental property. Rent stabilization does not make housing more affordable for new renters who will face higher market-driven prices.
James and Virginia Harrington
From: [email protected] <[email protected]> Sent: Tuesday, February 6, 2024 11:37 AM
To: City Clerk <[email protected]>
Subject: Oppose Rent Control
When I was looking to purchase rental property, I did not look in any city with rent control. Instead, I purchased a four-unit building in Concord. It was a nice building and above average in condition and amenities. Each unit has a back yard and inside laundry.
If the rent control passes as more restrictive than already exists under the State law, the rents will lag behind the market. Over time, my options will be to incur the loss, reduce my expense or sell the property. Reducing expenses would involve getting rid of the professional gardener and cutting back on maintenance. This would impact the community by loss of a job to the gardener, my handyman and be an increase in blight.
I understand the desire to control housing costs. If you wanted to implement these measures, why stop at rental housing? Limit the annual appreciation on all housing to 3%. If someone wants to sell, it would be unfair to profit off a person just wanting to buy a house. The seller would get 3% annual appreciation for the time they owned their house. Of course this makes no sense. It is a ridiculous idea to limit the price of something that an individual owns. Besides, homeowners would revolt, and there are way too many of them.
Regards,
Keith Erickson
408-406-8396
From: Barone, Valerie <[email protected]> Sent: Tuesday, February 6, 2024 1:04 PM
To: Jim and Ginny Harrington <[email protected]> Cc: City Clerk <[email protected]>; Huckabay, Sophia <[email protected]> Subject: Re: Rent Stabilization
Thank you for sharing your thoughts. I will make sure they are shared with the City Council.
Valerie.
Valerie Barone
City Manager
City of Concord
Sent from my iPhone
On Feb 6, 2024, at 12:16 PM, Jim and Ginny Harrington <[email protected]> wrote:
Why would an RPO have to pay a renter to move? This is insane. If I choose to sell my rental to cover expenses that may incur (medical bills, etc.) why should I have to pay the renter? This is completely unfair to the RPO!!!
On Tue, Feb 6, 2024 at 10:28 AM Barone, Valerie <[email protected]> wrote:
Dear Jim and Virginia,
Thank you so much for sending in your thoughts on the draft Rent Stabilization and Just Cause for Eviction Regulations being considered by the Concord City Council on February 13th .
I do want to clarify that the current Council proposed language for the Rent Stabilization elements of the new Ordinance would exempt single family homes that are being rented from local control over how much they raise their rents.
If the Ordinance is adopted by Council as currently proposed, single family homes that are rented would be subject to the Just Cause for Eviction provisions in the draft ordinance, which allows for evictions with cause (i.e., failure to pay rent, significant violation of the lease, etc.) without any relocation payment. However, an eviction for a “just cause,” (i.e., owner move-in, etc.) would require payment of a relocation payment per the draft Ordinance.
Here is a link to the last meeting on the topic. You may find it useful to review the staff report, the draft ordinance, and view the meeting.