Agenda — Cudahy City Council, April 11, 2023

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Teleconference Phone Number:
1 (669) 900-6833
Meeting ID: 848 1660 0797
https://us06web.zoom.us/j/84816600797
AGENDA

A SPECIAL MEETING

OF THE CUDAHY CITY COUNCIL
and JOINT MEETING of the
CITY OF CUDAHY AS SUCCESSOR AGENCY and HOUSING SUCCESSOR AGENCY

TO THE CUDAHY DEVELOPMENT COMMISSION
Tuesday, April 11, 2023 – 6:30 P.M.

Written materials distributed to the City Council within 24 hours of the City Council meeting shall be available on the City’s website for public inspection at www.cityofcudahy.com.

In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting, you should contact the City Clerk’s Office at (323) 773-5143 at least 24 hours in advance of the meeting.

Rules of Decorum
Under the Government Code, the City Council may regulate disruptive behavior that impedes the City Council Meeting.

Disruptive conduct may include, but is not limited to:
• Screaming or yelling during another audience member’s public comments period; • Profane language directed at individuals in the meeting room; • Verbal altercations with other individuals in the meeting room; and • Going beyond the allotted three-minute public comment period granted.

When a person’s or group’s conduct disrupts the meeting, the Mayor or presiding officer will request that the person or group stop the disruptive behavior, and WARN the person or group that they will be asked to leave the meeting room if the behavior continues.

If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.) Daisy Lomelí, Mayor
Jose R. Gonzalez, Vice Mayor
Elizabeth Alcantar, Council Member
Martin U. Fuentes, Council Member
Cynthia Gonzalez, Council Member
This meeting will be conducted in
person, telephonically, and
electronically.

Council Chambers/Bedwell Hall
5240 Santa Ana Street
Cudahy, CA 90201

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City of Cudahy
City Council and Successor Agency
Special Meeting Agenda
April 11, 2023, at 6:30 P.M.

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1. CALL TO ORDER

2. ROLL CALL
Council / Agency Member Gonzalez
Council / Agency Member Fuentes
Council / Agency Member Alcantar
Vice Mayor / Vice Chair Gonzalez
Mayor / Chair Lomelí

3. PUBLIC COMMENTS
(Each member of the public may provide a public comment in person, telephonically or electronically.

In person participants must submit one comment card if they wish to address the City Council. Only speakers that submit a comment card within the first 20 minutes of the meeting will be permitted to speak. Remote participants may provide public comment by clicking the hand icon on Zoom or pressing star (*) nine (9) on the telephone, if they wish to address the City Council. Members of the public are permitted to speak for three (3) minutes concerning items on the council agenda. As provided under Government Code Section 54954.3(a), public comments for this special meeting shall be limited to matters listed on this special meeting agenda only.) (Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403).)

4. WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES (Consideration to waive full text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion.) (COUNCIL / AGENCY)
Recommendation: Approve the Waiver of Full Reading of Resolutions and Ordinances.

5. BUSINESS SESSION
A. Progress Report – Rent Stabilization Ad Hoc Committee (page 5) Presented by the Community Development Director
Recommendation: Staff recommends the City Council review the Rent Ad Hoc Committee “Ad Hoc” progress report and take one of the following actions:

1. With the recommended Ad Hoc policies summarized in this report, direct City staff to prepare a draft rent stabilization ordinance to bring back to the City Council for consideration at a future meeting.

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City of Cudahy
City Council and Successor Agency
Special Meeting Agenda
April 11, 2023, at 6:30 P.M.

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2. Provide City staff direction on the rent stabilization topic areas that remain unresolved by the Ad Hoc, and direct City staff to go back to the Ad Hoc and bring back a draft rent stabilization ordinance at a future date.

3. Should the City Council desire not to implement a rent stabilization ordinance, direct staff to continue aiding tenants and landlords through the City’s contracted fair housing rights consultant and implementation of existing State tenant protection regulations under AB 1482.

B. Consideration to Adopt a Proposed Urgency Ordinance of the City Council of the City of Cudahy Establishing an Interim Prohibition on Residential Rent Increases (page 27) Presented by the City Attorney
Recommendation: Staff Recommends that the City Council take one of the following actions:

1. Adopt Urgency Ordinance No. 735 extending the temporary prohibition on residential rent increases for a period of 90 additional days with the ability to extend further; or

2. Take no further action, thereby allowing the current rent increase moratorium to expire on April 17, 2023.

6. ADJOURNMENT
I, Richard Iglesias, hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City’s website, City Hall, Clara Park, and Lugo Park not less than 24 hours prior to the meeting. A copy of said Agenda is on file in the City Clerk’sOffice.

Dated this 6th day of April 2023
Richard Iglesias
City Clerk

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Blank Page

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
04/11/2023 Page 1 of 3

STAFF REPORT
Date: April 11, 2023
To: Honorable Mayor and City Council
From: Alfonso Noyola, City Manager
By: Juan Arauz, AICP, Community Development Director
Subject: Progress Report – Rent Stabilization Ad Hoc Committee

RECOMMENDATION
Staff recommends the City Council review the Rent Ad Hoc Committee “Ad Hoc” progress report and take one of the following actions:

BACKGROUND
• On September 6, 2022, the City Council introduced the first reading of Ordinance No. 725 (Attachment A) establishing a temporary prohibition on residential rent increase for 90- days.
• On September 20, 2022, the City Council held a second reading approving Ordinance No. 725.

Item Number
5A

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Staff Report
04/11/2023 Page 2 of 3

• On October 19, 2022, Ordinance No. 725 and the rent increase moratorium went into effect and set to expire on January 18, 2023.
• Between November 2022 and January 2023, the Ad Hoc held meetings to discuss rent stabilization policies to recommend to the City Council. • On January 17, 2023, and at the request of the Ad Hoc, City staff recommended the City Council extend the moratorium on rent increase for an additional 90-days. The extension was requested to allow the Ad Hoc additional time to discuss and develop a rent stabilization ordinance for City Council review. The City Council adopted Urgency Ordinance No. 731 (Attachment B) extending the rent increase moratorium for an additional 90-days, set to expire April 17, 2023.

DISCUSSION
Research and Evaluation
Since its inception, the Ad Hoc has met several times to discuss multiple rent stabilization policies. To facilitate discussions, City staff researched rent stabilization ordinances of cities within Los Angeles County and presented summary findings to the Ad Hoc. Cities within Los Angeles County with rent stabilization ordinances include Pomona, Los Angeles, Santa Monica, Beverly Hills, West Hollywood, and Bell Gardens. After evaluating preliminary data from these cities, the Ad Hoc agreed to use the neighboring city of Bell Gardens as a case study comparison seeing that the city similar demography and financial composition. The Ad Hoc also evaluated existing State regulations under California AB 1482 (Tenant Protection Act of 2019).

The Ad Hoc compared existing rent regulations applicable under State and Bell Gardens regulations in order to recommend policies for Cudahy. A summary of this report is provided as Attachment C.

Recommended Policies
Attachment C outlines Ad Hoc recommended rent stabilization policies, some of which are summarized below:

1. Landlords would only be allowed to increase rent one time in a 12-month period.

2. Maximum rent increase in 12-month period would be 4%.

3. Certain rental properties, including owner occupied multi-family units with four units or less would be exempt from rent stabilization.

Ad Hoc Request for City Council Feedback
The Ad Hoc has agreed upon various rent stabilization policies, however, after various discussions, some rent stabilization topic areas remain unresolved. On March 29, 2023, the Ad Hoc requested City staff prepare a report to the City Council that would summarize the progress made by the Ad Hoc, and request City Council feedback on the following topic area:

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Staff Report
04/11/2023 Page 3 of 3

Fair Market Rent Adjustment / Concession Beyond Maximum Rent Increase • Some rent stabilization ordinances in other cities allow property owners to increase rent beyond the maximum rate through a concession process for units rented for considerably less than market rate. For example, if the City were to adopt a maximum rent increase cap of 4%, and the unit was rented at 50% below market rate, a property owner may apply for a concession of up to 2% to 5%. However, under no circumstances can a property owner increase rent more than the State maximum of 10% per year. - The Ad Hoc did not reach a consensus on whether or not to allow this type of fair market adjustment / concession.

STRATEGIC PLAN IMPACT
Goal C Housing Security and Affordability:

1. Implementation of a rent stabilization program may help provide affordable housing opportunities.

FINANCIAL IMPACT
Ad Hoc discussions included costs associated with the implementation of a rent stabilization ordinance. These include at least one (1) new full-time staff member and increased legal costs.

While it is anticipated that some costs would be recovered through collection of fees (ex. business license registration for multi-family units subject to rent stabilization), these fees would not fully cover all costs associated with the rent stabilization program.

ATTACHMENTS
A. Ordinance No. 725
B. Urgency Ordinance No. 731
C. Summary of State and City of Bell Gardens Rent Stabilization Policies

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ORDINANCE NO. 725

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CUDAHY, CALIFORNIA ESTABLISHING A PROHIBITION OF

RENT INCREASES ON CERTAIN RESIDENTIAL
PROPERTIES FOR NINETY (90) DAYS WITH THE ABILITY TO

EXTEND FURTHER
WHEREAS, the City of Cudahy ("the City") is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries that promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws; and WHEREAS, rents throughout Los Angeles County are continuing to rise despite the State's Tenant Protection Act of 2019 (Tenant Protection Act), and as housing costs rise, many local residents continue to struggle with a decrease in affordability, housing insecurity, and potential homelessness, particularly low-income households and those persons who continue to be negatively impacted by the ongoing COVID-19 pandemic; and WHEREAS, Los Angeles County and the cities within the County are experiencing a housing affordability crisis, which is driving homelessness and displacement of residents; and WHEREAS, many of the City's renters are rent-burdened, paying over 30 percent of their income on rent, and some renters are severely rent-burdened, paying over 50 percent of their income on rent, which leaves less money for families to spend on other necessitates like food, healthcare, transportation, and education; and WHEREAS, housing displacement due to rent increases hinders residents from weathering and surviving through the ongoing COVID-19 pandemic, including waves of infection, by preventing individuals from isolating as necessary at home due to infection or exposure; and
WHEREAS, there is an urgent need for the City to enact a temporary moratorium on rent increases to protect the health, safety, and welfare of its residents in light of the ongoing COVID-19 pandemic, including the need to keep residents in their homes to isolate or shelterin-place as necessary; and WHEREAS, pandemic-related tenant protections under the County of Los Angeles and State of California are gradually phasing out; and
WHEREAS, current State law allows increasing annual rent five percent (5%) plus the consumer price index (CPI), up to a maximum of ten percent (10%) for properties subject to the Tenant Protection Act of 2019; and
WHEREAS, the median monthly asking rent in the U.S. rose fifteen percent (15%) year over year in May 2022 while the Los Angeles-area median asking rent of $3,400 had risen 9.6%, according to real estate firm Redfin; and
Attachment A Page 8 of 36
Ordinance No. 725

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WHEREAS, this ordinance is intended to temporarily prohibit rent increases to protect tenants from rising rent costs while the City further considers and develops a permanent rent control program; and
WHEREAS, failure to adopt this ordinance may subject renters to economic hardship and potential displacement that may lead to homelessness to the detriment of the public health, safety and welfare; and
WHEREAS, on July 5, 2022, the City Council considered adoption of a proposed Urgency Ordinance establishing an Interim Prohibition on Residential Rent Increases and Creating an Ad Hoc Ren Control City Council subcommittee ("Urgency Ordinance"), the Urgency Ordinance did not receive the required 4/5 vote of the Council and failed to pass; and
WHEREAS, the City Council majority continues to believe that there is a need for the City to address the issue of Residential Rent Increases as expeditiously as may be reasonably possible under the circumstances
WHEREAS, on July 19, 2022, the City Council established the Rent Control Ad Hoc Committee, to analyze and study the issue of rent control and to advise and make recommendation(s) to the City Council on legislation in regards thereto; and WHEREAS, the Ralph M. Brown Act (Gov. Code, § 54950 et seq.) generally applies to meetings among a majority of the members of a legislative body when the subject relates to local agency business, however, meetings of temporary advisory, or ad hoc, committees, such as the Rent Control Ad Hoc Committee, as distinguished from standing committees with ongoing jurisdiction, made up solely of less than a quorum of a legislative body are not subject to the Brown Act; and
WHEREAS, the City Council intends that the Rent Control Ad Hoc Committee will be of a temporary duration to formulate a recommendation for full City Council consideration.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The recitals above are true and correct and incorporated herein by reference.

SECTION 2. Findings. Based on the findings set forth in the Recitals, the City Council finds and declares this ordinance to be necessary for the immediate preservation of the public health, safety and welfare.

SECTION 3. Definitions. For the purposes of this Ordinance, the following definitions shall apply:

A. "Base Rent" means the monthly Rent that was in effect on October 20, 2022.

B. "Covered Rental Unit(s)" means any Rental Unit except for:

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a. A dwelling unit which is alienable separate from the title to any other dwelling unit, or which is a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (f) of Section 11004.5 of the Business and Professions Code;
b. A dwelling unit for which a certificate of occupancy was issued after February 1, 1995; or
c. Any other dwelling unit exempt from the Costa-Hawkins Rental Housing Act (California Civil Code Section 1954.52) or any other applicable state or federal law.

C. "Hearing Officer" means the person designated by the City Manager to conduct a review hearing under Section 7 of this Ordinance. The Hearing Officer shall not be the enforcement officer that investigated the matter under Section 7 of this Ordinance that is the subject of the administrative hearing or the immediate supervisor of that enforcement officer.

D. "Housing Services" means all services provided by the Landlord related to the use or occupancy of a Covered Rental Unit, including but not limited to, insurance, repairs, replacement, maintenance, painting, utilities, heat, water, elevator service, laundry facilities, recreational areas and/or pools, janitorial service, refuse removal, furnishings, parking, storage, and security services.

E. "Landlord" means an owner, lessor, or sublessor who receives or is entitled to receive Rent of the use and occupancy of any Covered Rental Unit or Rental Unit or portion thereof, and the representative, agent, or successor of such owner, lessor, or sublessor. For purposes of this Ordinance, a Landlord does not include an individual whose primary residence is the same Covered Rental Unit as the Tenant.

F. "Protection Period" means the time period commencing on the effective date of this Ordinance (30 days after the City Council's adoption of this Ordinance) and shall terminate ninety (90) days thereafter on January 18, 2023, unless further extended or repealed by action of the City Council.

Rent includes without limitation, the fair market value of goods accepted, labor performed, or services rendered.

H. "Responsible Person" is a person responsible for, or alleged to be responsible for, a violation of this Ordinance.

I. "Tenant" means a person entitled, by written or oral agreement, or by sufferance, to the use or occupancy of any Covered Rental Unit or Rental Unit.

J. "Rental Unit(s)" means any dwelling units as defined in California Civil Code section 1940, subsection (c), including joint living and work quarters used or

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occupied in consideration of payment of Rent. This definition 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, mobile homes rented by the owner of a mobile home to a Tenant, and accessory dwelling units.

For purposes of compliance with this Ordinance, Rental Unit does not mean any dwelling unit in which the Landlord or any member of his/her immediate family occupies one of the dwelling units on the property containing the Rental Unit and it is necessary for the Landlord or any member of his/her immediate family to use either a bathroom or kitchen facility common with the tenant.

SECTION 4. Rent Increases Temporarily Prohibited. Aresidential Landlord in the City of Cudahy shall not impose a Rent increase that would be effective during the Protection Period for a Covered Rental Unit occupied by an existing Tenant whose tenancy began before or on October 20, 2022. A decrease in Housing Services is considered an increase in Rent. This Ordinance does not regulate the initial Rent at which a unit is offered.

SECTION 5. Exceptions and Exemptions. The following are exempt from this Ordinance:

A. Accommodations in motels, hotels, inns, tourist houses, rooming houses, and boarding houses, provided that such accommodations are not occupied by the same tenant for thirty (30) or more days;
B. Commercial units; and
C. Housing accommodation in any hospital, convent, monastery, extended care facility, convalescent home, nonprofit home for the aged, or dormitory operated by an educational institution.

SECTION 6. Enforcement. In any action by a Landlord to recover possession of a Covered Rental Unit, the Tenant may raise as an affirmative defense any violation or noncompliance with the provisions of this Ordinance.

SECTION 7. Petition for Relief.

A. Petition Process. If a Landlord desires to increase the rent for a Covered Rental Unit during the Protection Period and the Landlord contends that the prohibition on Rent increases in Section 4 will prevent the Landlord from receiving a fair and reasonable return with respect to the operation of the property containing the Covered Rental Unit, the Landlord may file a petition with the Community Development Department by requesting a hearing, which will be heard by a Hearing Officer appointed by the City Manager. The Landlord shall mail a copy of the petition by first class mail, postage prepaid, to all Tenants whose Rents are the subject of the petition within five (5) calendar days after the date the petition is filed. Within ten (10) calendar days after the date the petition is filed, the Landlord shall file a proof of service signed under penalty of perjury stating that a copy of the petition was mailed to all such Tenants. The petition shall include a statement indicating the basis on which the Landlord contends that the limitations of this

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Ordinance on Rent increases will prevent the Landlord from receiving a fair and reasonable return, together with any evidence that the Landlord wants the Hearing Officer to consider. The Landlord shall bear the burden of proving by a preponderance of the evidence at the hearing that because of the implementation of this Ordinance, the Landlord is unable to obtain a fair and reasonable return.

B. Hearing Process.
a. A hearing before the Hearing Officer shall be set for a date no sooner than fifteen (15) days and no later than sixty (60) days after receipt of the request and proof of service on any request complying with the requirements of this Section 7, unless the Hearing Officer determines that good cause exists for an extension of time. The Hearing Officer shall send written notice to the Landlord and the Tenant of the date, time, and place set for the hearing. Upon receipt, the Landlord shall post such notice in a conspicuous place at the affected property including the Covered Rental Units that are the subject of the petition. Such notice shall be placed on a written instrument that is at least eleven (11) inches in width and seventeen (17) inches in length and shall be placed not less than four (4) feet above ground level in the common area, at the entry or entries to the building or units, or other similar location or locations as necessary to provide Tenants a reasonable opportunity to view the notice and be advised of the hearing. Within five (5) calendar days of receipt of the notice of hearing, the Landlord shall personally deliver a copy of the notice to each Tenant in the affected Covered Rental Units.
b. At the hearing the Landlord shall be given the opportunity to testify, call witnesses, and to present evidence concerning the petition. The Hearing Officer shall then hear testimony from the Tenants in the affected Covered Rental Units. The Hearing Officer may continue the hearing and request additional information from the Landlord or Tenant before issuing a written decision. The Hearing Officer shall have the power to issue orders to keep order and decorum during the hearing. All hearings conducted by the Hearing Officer shall be open to the public.
c. The Hearing Officer may, in his or her discretion, grant a continuance of the hearing date upon a request and a showing of good cause by the Landlord or Tenant. The request must be made in writing and be received by the Hearing Officer at least five (5) business days prior to the hearing date. In the instance of a Landlord's continuance request, the Landlord must personally deliver a copy of the request to the affected Tenant(s). In the instance of a Tenant's continuance request, the Tenant must personally deliver a copy of the request to the Landlord. In no event shall the continuance be longer than fifteen (15) calendar days from the originally scheduled hearing date.
d. The cost of the hearing, including but not limited to a Hearing Officer's fee, shall be borne by the petitioner.

C. Evaluation of Petitions. In evaluating the petitions from a Landlord or Tenant, the Hearing Officer shall consider all relevant factors that may potentially impact a

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Landlord's ability to obtain a fair and reasonable return and shall consider the basis for the calculation of any increase in Rent. Relevant factors may include, but are not limited to, changes in costs to the Landlord attributable to increased utility rates, trash collection rates, property taxes, insurance, advertising, variable mortgage interest rates, governmental assessments and fees, incidental services, employee costs, normal repair, maintenance, upgrading and addition of amenities or services, rent rolls, financial statements, expert analysis, and relevant studies.

The written decision shall be served by first-class mail, postage prepaid on the Landlord and any Tenants in the affected Covered Rental Unit. The Hearing Officer's decision shall be final.

E. Judicial Review of Hearing Officer Decision. Any person directly aggrieved by an administrative decision of a Hearing Officer pertaining to a Petition for Relief from this Ordinance may seek judicial review in the Superior Court pursuant to Government Code Section 53069.4 and/or Code of Civil Procedure Sections 1094.5 and 1094.6.

F. Timing of Petitions and Hearing. Any petition that is timely filed before the expiration of this Ordinance may continue to be adjudicated. Relief may be granted retroactively to the date the petition was filed.

SECTION 8. Ad Hoc Rent Control Committee. The City Council has already created an Ad Hoc Rent Control Committee, it is comprised of no more than two (2) members of the City Council, appointed by the entire City Council. The Ad Hoc Rent Control Committee shall be an advisory committee and shall not exercise ongoing jurisdiction. The Ad Hoc Rent Control Committee shall study, develop, and propose best practices for rent control within the City, and shall formulate legislative or other appropriate recommendations for full City Council consideration. The duration of the Ad Hoc Rent Control Committee shall be consistent with Section 11 and may be extended by action of the City Council.

SECTION 9. Inconsistent Provisions. Any provision of the Cudahy Municipal Code or appendices thereto that conflicts with the provisions of this Ordinance, to the extent of such conflict and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Ordinance.

SECTION 10. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase would be subsequently declared invalid or unconstitutional.

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SECTION 11. Sunset Date. This Ordinance shall expire by its own terms on January 18, 2023, unless otherwise extended by action of the City Council.

SECTION 12. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act pursuant to Section 15060(c)(2), constituting an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment, and pursuant to Section 15060(c)(3) constituting an activity that is not a project as defined in Section 15378.

SECTION 13. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published or posted as required by law, which shall take full force and effect 30 days upon its adoption by a majority vote of the City Council for a period of 90 days, unless extended.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 20th day of September 2022.

Elizabe�0
Mayor
ATTEST:

City Clerk

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CERTIFICATION

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY
SS:

I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Ordinance No. 725 was introduced for a first reading on the 6 th day of September 2022 and
approved for a second reading and adopted by said Council at its regular meeting held on the 20th day of September 2022 by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Gonzalez, Lomeli, and Alcantar
Lozoya and Guerrero
None
None
Ri
City Clerk

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URGENCY ORDINANCE NO. 731

AN UNCODIFIED URGENCY ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA

ESTABLISHING AN INTERIM PROHIBITION OF RENT

INCREASES ON CERTAIN RESIDENTIAL PROPERTIES
FOR NINETY (90) DA VS WITH THE ABILITY TO EXTEND

FURTHER
WHEREAS, the City of Cudahy ("the City") is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries that promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws; and WHEREAS, rents throughout Los Angeles County are continuing to rise despite the State's Tenant Protection Act of 2019 (Tenant Protection Act), and as housing costs rise, many local residents continue to struggle with a decrease in affordability, housing insecurity, and potential homelessness, particularly low-income households and those persons who continue to be negatively impacted by the ongoing COVID-19 Pandemic; and
WHEREAS, Los Angeles County and the cities within the County are experiencing a housing affordability crisis, which is driving homelessness and displacement of residents; and
WHEREAS, many of the City's renters are rent-burdened, paying over 30 percent of their income on rent, and some renters are severely rent-burdened, paying over 50 percent of their income on rent, which leaves less money for families to spend on other necessitates like food, healthcare, transportation, and education; and WHEREAS, housing displacement due to rent increases hinders residents from weathering and surviving through the ongoing COVID-19 Pandemic, including waves of infection, by preventing individuals from isolating as necessary at home due to infection or exposure; and
WHEREAS, there is an urgent need for the City to extend the temporary moratorium on rent increases to protect the health, safety, and welfare of its residents in light of the ongoing COVID-19 Pandemic, including the need to keep residents in their homes to isolate or shelter-in-place as necessary; and
WHEREAS, pandemic-related tenant protections under the County of Los Angeles and State of California are gradually phasing out; and
Attachment B Page 16 of 36
Ordinance No. 731

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WHEREAS, current State law allows increasing annual rent of five percent (5%) plus the consumer price index (CPI), up to a maximum of ten percent (10%) for properties subject to the Tenant Protection Act of 2019; and
WHEREAS, this Urgency Ordinance is intended to extend the temporary prohibition on rent increases to protect tenants from rising rent costs while the City further considers and develops a permanent rent control program; and WHEREAS, failure to adopt this extension to the temporary moratorium may subject renters to economic hardship and potential displacement that may lead to homelessness to the detriment of the public health, safety and welfare; and WHEREAS, Government Code Sections 36934 and 36937 authorize the City to adopt an Urgency Ordinance for the immediate preservation of the public peace, health and safety, provided that such Urgency Ordinance is passed by a four-fifths vote of the City Council.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The recitals above are true and correct and incorporated herein by reference.

SECTION 2. Findings. Based on the findings set forth in the Recitals, the City Council finds and declares this Urgency Ordinance to be necessary for the immediate preservation of the public health, safety and welfare and upon that basis has determined that an measure, pursuant Government Code Section 36937(b) is warranted and shall take effect immediately upon adoption by a fourth-fifths vote of the City Council.

SECTION 3. Definitions. For the purposes of this Urgency Ordinance, the following definitions shall apply:

A. "Base Rent" means the monthly Rent that was in effect on January 17, 2023.

B. "Covered Rental Unit(s)" means any Rental Unit except for:
a. A dwelling unit which is alienable separate from the title to any other dwelling unit, or which is a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (f) of Section 11004.5 of the Business and Professions Code;
b. A dwelling unit for which a certificate of occupancy was issued after February 1, 1995; or
c. Any other dwelling unit exempt from the Costa-Hawkins Rental Housing Act (California Civil Code Section 1954.52) or any other applicable state or federal law.

C. "Hearing Officer" means the person designated by the City Manager to conduct a review hearing under Section 7 of this Urgency Ordinance. The Hearing

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Officer shall not be the enforcement officer that investigated the matter under Section 7 of this Urgency Ordinance that is the subject of the administrative hearing or the immediate supervisor of that enforcement officer.

E. "Landlord" means an owner, lessor, or sublessor who receives or is entitled to receive Rent of the use and occupancy of any Covered Rental Unit or Rental Unit or portion thereof, and the representative, agent, or successor of such owner, lessor, or sublessor. For purposes of this Urgency Ordinance, a Landlord does not include an individual whose primary residence is the same Covered Rental Unit as the Tenant.

F. "Protection Period" means the time period commencing on the effective date of this Urgency Ordinance and shall terminate ninety (90) days thereafter on April 17, 2023, unless further extended or repealed by action of the City Council.

G. "Rent(s)" is the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Covered Rental Unit, including tenant's access to and use of Housing Services. Rent includes without limitation, the fair market value of goods accepted, labor performed, or services rendered.

H. "Responsible Person" is a person responsible for, or alleged to be responsible for, a violation of this Urgency Ordinance.

I. "Tenant" means a person entitled, by written or oral agreement, or by sufferance, to the use or occupancy of any Covered Rental Unit or Rental Unit.

J. "Rental Unit(s)" means any dwelling units as defined in California Civil Code Section 1940, subsection (c), including joint living and work quarters used or occupied in consideration of payment of Rent. This definition 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, mobile homes rented by the owner of a mobile home to a Tenant, and accessory dwelling units. For purposes of compliance with this Urgency Ordinance, Rental Unit does not mean any dwelling unit in which the Landlord or any member of his/her immediate family occupies one of the dwelling units on the property containing the Rental Unit and it is necessary for the Landlord or any member of his/her immediate family to use either a bathroom or kitchen facility common with the tenant.

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Ordinance No. 731

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SECTION 4. Rent Increases Temporarily Prohibited. As of the effective date of this Urgency Ordinance, and through the Protection Period, a residential Landlord in the City of Cudahy shall not increase Rent for a Covered Rental Unit occupied by an existing Tenant whose tenancy began before or on January 17, 2023. A decrease in Housing Services is considered an increase in Rent. This Urgency Ordinance does not regulate the initial Rent at which a unit is offered.

SECTION 5. Exceptions and Exemptions. The following are exempt from this Urgency Ordinance:

SECTION 6. Enforcement. In any action by a Landlord to recover possession of a Covered Rental Unit, the Tenant may raise, as an affirmative defense, any violation or noncompliance with the provisions of this Urgency Ordinance.

SECTION 7. Petition for Relief.

B. Hearing Process.

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Ordinance No. 731

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i. A hearing before the Hearing Officer shall be set for a date no sooner than fifteen ( 15) days and no later than sixty (60) days after receipt of the request and proof of service on any request complying with the requirements of this Section 7, unless the Hearing Officer determines that good cause exists for an extension of time. The Hearing Officer shall send written notice to the Landlord and the Tenant of the date, time, and place set for the hearing. Upon receipt, the Landlord shall post such notice in a conspicuous place at the affected property including the Covered Rental Units that are the subject of the petition. Such notice shall be placed on a written instrument that is at least eleven (11) inches in width and seventeen (17) inches in length and shall be placed not less than four (4) feet above ground level in the common area, at the entry or entries to the building or units, or other similar location or locations as necessary to provide Tenants a reasonable opportunity to view the notice and be advised of the hearing. Within five (5) calendar days of receipt of the notice of hearing, the Landlord shall personally deliver a copy of the notice to each Tenant in the affected Covered Rental Units. ii. At the hearing the Landlord shall be given the opportunity to testify, call witnesses, and to present evidence concerning the petition. The Hearing Officer shall then hear testimony from the Tenants in the affected Covered Rental Units. The Hearing Officer may continue the hearing and request additional information from the Landlord or Tenant before issuing a written decision. The Hearing Officer shall have the power to issue orders to keep order and decorum during the hearing. All hearings conducted by the Hearing Officer shall be open to the public. iii. The Hearing Officer may, in his or her discretion, grant a continuance of the hearing date upon a request and a showing of good cause by the Landlord or Tenant. The request must be made in writing and be received by the Hearing Officer at least five (5) business days prior to the hearing date. In the instance of a Landlord's continuance request, the Landlord must personally deliver a copy of the request to the affected Tenant(s). In the instance of a Tenant's continuance request, the Tenant must personally deliver a copy of the request to the Landlord. In no event shall the continuance be longer than fifteen (15) calendar days from the originally scheduled hearing date.
iv. The cost of the hearing, including but not limited to a Hearing Officer's fee, shall be borne by the petitioner.

C. Evaluation of Petitions. In evaluating the petitions from a Landlord or Tenant, the Hearing Officer shall consider all relevant factors that may potentially impact a Landlord's ability to obtain a fair and reasonable return and shall consider the basis for the calculation of any increase in Rent. Relevant factors may include, but are not limited to, changes in costs to the Landlord attributable to increased utility rates, trash collection rates, property taxes, insurance, advertising, variable mortgage interest rates, governmental assessments and fees, incidental services, employee costs, normal repair, maintenance,

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Ordinance No. 731

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upgrading and addition of amenities or services, rent rolls, financial statements, expert analysis, and relevant studies.

D. Hearing Office Decision. After considering all the testimony and evidence submitted at the hearing, within twenty (20) calendar days after the conclusion of the hearing, the Hearing Officer shall issue a written decision denying, affirming or modifying the petition and shall adopt written findings in support of that decision. The written decision shall be served by first-class mail, postage prepaid on the Landlord and any Tenants in the affected Covered Rental Unit.

The Hearing Officer's decision shall be final.

E. Judicial Review of Hearing Officer Decision. Any person directly aggrieved by an administrative decision of a Hearing Officer pertaining to a Petition for Relief from this Urgency Ordinance may seek judicial review in the Superior Court pursuant to Government Code Section 53069.4 and/or Code of Civil Procedure Sections 1094.5 and 1094.6.

F. Timing of Petitions and Hearing. Any petition that is timely filed before the expiration of this Urgency Ordinance may continue to be adjudicated. Relief may be granted retroactively to the date the petition was filed.

SECTION 8. Inconsistent Provisions. Any provision of the Cudahy Municipal Code or appendices thereto that conflicts with the provisions of this Urgency Ordinance, to the extent of such conflict and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Urgency Ordinance.

SECTION 9. Severability. If any section, subsection, sentence, clause, or phrase of this Urgency Ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Urgency Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase would be subsequently declared invalid or unconstitutional.

SECTION 10. Sunset Date. This Urgency Ordinance shall expire by its own terms on April 17, 2023, unless otherwise extended by action of the City Council.

SECTION 11. Compliance with California Environmental Quality Act. The City Council finds that this Urgency Ordinance is not subject to the California Environmental Quality Act pursuant to Section 15060(c)(2), constituting an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment, and pursuant to Section 15060(c)(3) constituting an activity that is not a project as defined in Section 15378.

SECTION 12. The City Clerk shall certify to the passage and adoption of this Urgency Ordinance and shall cause this Urgency Ordinance to be published or posted as

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Ordinance No. 731

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required by law, which shall take full force and effect immediately upon its adoption by a four-fifths vote of the City Council for a period of 90 days, unless extended.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 17th day of January 2023.

ATTEST:

Daisy Lomeli
Mayor

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Ordinance No. 731

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STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

CITY OF CUDAHY

CERTIFICATION
SS:

I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Urgency Ordinance No. 731 was introduced on the 17th day of January 2023 and adopted by said City Council at its regular meeting by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

C. Gonzalez, Fuentes, Alcantar, J. Gonzalez, and Lomeli None
None
None

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KEY PROVISIONS STATE OF CA CITY OF BELL GARDENS CITY OF CUDAHY (PROPOSED) WHEN DID STATE AB 1482
AND ORDINANCE NO. 925

TAKE EFFECT & WHEN

DOES IT EXPIRE
1/1/2020 - 1/1/2030 10/12/2020 - no expiration date Sunset concurrent with State law? yes/no yellow Unresolved Topics green Ad Hoc
Recommendation
RENT INCREASE AMT.
annual rent increase limit is the lessor of 5% plus the percentage change in the cost of living according to
the Consumer Price Index (CPI), or 10%
annual rent increase limit is the lesser of 50% of the
change in the Consumer Price Index (CPI) or 4% (Current max allowable increase = 4% through 10/31/23)
Annual rent increase limit is the lesser of the change in the Consumer Price Index (CPI) or 4%

TYPE OF NOTICE REQUIRED

FOR RENT INCREASE
increases less than 10%, require a 30 day written
notice & increases over 10% require a 90 day written
notice
30 day written notice as required by State law 30 day written notice as required by State law

UNITS EXEMPT
(1) deed restricted affordable housing, (2) condos and
single family-homes not owned by a real estate
investment trust (REIT), or corporation-owned LLC,
(3) commercial properties, (4) hotels, (5) duplexes
where the landlord lives in one of the rental units, (6) college dorms and schools, (7) rental property
managed by a non-profit org., (8) buildings
constructed in the past 15 yrs, (9) rental properties
that are subject to pre-existing rent control
ordinance. If there are no other local laws that the
landlord must abide by, they are free to increase the
rent as much as they want on properties that are
exempt from rent control. However, they must
inform their tenants of the exemption under AB 1482
by giving them notice.
(1) any rental unit with a certificate of occupancy or
equivalent issued after Feb. 1, 1995, (2) any unit
separately alienable [i.e. single family residence, condos, townhomes], (3) housing restricted by a deed,
regulatory limitations, or other recorded document
limits affordability to low-or modest income
households, (4) a rental unit on a property with a max. of 3 units that is owner-occupied, (5) hotels, motels,
transient occupancy accommodations, (6) nonprofit
hospitals, religious facilities, other care facilities.

BG equivalent with exemption for a rental unit on a
property with a max. of 4 units that is owner-occupied.

MOBILEHOMES Not Addressed
Mobilehomes and spaces included in definition if rental unit and subject to rent stabilization and eviction
protections. Note: City may explore adopting separate
mobilehome rent stabilization ordinance at a future
date modeled after LA County.

Yes, mobilehomes are covered by RSO. BG equivalent.

May revisit as separate ordinance at future date.

NUMBER OF INCREASES

ALLOWED PER YEAR
2 every 12 mths if the owner gives adequate notice
and do not so throughout the lease term. If increased
twice in a calendar year, the total increase cannot go
over the yearly cap.
1 1
VACANCY DECONTROL Landlord may reset rents upon vacancy Landlord may reset rents upon vacancy Landlord may reset rents upon vacancy

LANDLORD PETITION FOR

FAIR AND REASONABLE

RETURN ADJUSTMENT
Not Addressed
Yes. Landlord may file petition to increase rent greater than annual limit up to max allowed by State law.

Rebuttable presumption that annual net operating
income earned prior to RSO adoption plus annual
increases allowed by RSO is fair and reasonable return
on property.

Yes. Allow fair and reasonable return petition by
landlord BG equivalent

BELOW FAIR MARKET RENT
ADJUSTMENT Not Addressed
Yes, if the current rent is less than 80% of Fair Market Rents (FMR) based on HUD small area rents in BG zip
code, landlord may increase rent by no more than
allowable limit by an amount not to exceed 3%.

Landlords must file an application and obtain approval
from the Community Develop. Depart. (CCD)
Seek Council Direction.

Option 1: Do not allow. Landlord can apply for
adjustment per fair return petition process.

Option 2: Allow "catch-up" provision for units with far below market rents based on HUD for comparable units
in City of Cudahy. Lower threshold to less than 70% of
FMR and limit additional increase to 1-2%. Landlords
must file an application and obtain approval from the
City at staff level. No hearing required.

CAN LANDLORDS "BANK"
UNUSED RENT INCREASES? Not Addressed No No

TENANT PETITION/APPEAL
PROCESS Yes, tenant has to file civil court case.

Yes, tenant can file an "Application for Adjustment" if they believe the rent increase is in violation of the RSO with the CCD.

Yes, allow tenant petition process BG equivalent

DOES UNIT NEED TO BE
REGISTERED Not Addressed Yes. All units, including exempt rental, will be required to be registered. Yes, require all rental units to be registered

RENTAL UNIT
REGISTRATION & FEE Not Addressed
Yes, for each rental unit registered starting Sept. 30, 2023. The fee will be set by City Council resolution
following a fee study. Landlords can pass-through half of the fee to tenants. The fee will be waived if the property is owner-occupied and has 4 or fewer rental units.

Yes, to be established by Council resolution following
fee study. Allow pass through fee up to 50% to tenant
and fee waiver for owner-occupied properties with four
or fewer units.

CAPITAL IMPROVEMENT

PASS-THROUGH COST

RECOVERY
Not Addressed
Yes, landlords may pass through 50% of costs related to certain capital improvements with CCD approval.

Allowable pass-throughs are not considered rent and
should be listed as a separate line item and cannot
exceed 5% of rent.

Yes, allow pass through 50% of costs related to certain capital improvements with City approval.

SECURITY DEPOSIT

INCREASE
Yes, if you have not already paid the max. security
deposit allowed by law (2 mths. rent for unfurnished
units & 3 mths. rent for furnished units), you live in a rent controlled unit, you have a lease that prevents
your rent from being increased.

Yes, may increase security deposit at the time of the
annual rent increase. It should be clearly stated in the notice of increase and cannot exceed the max. amount
authorized by State law.

Not permitted in excess of amount charged or received
at initiation of tenancy

NOTICES TO TENANTS
Properties that are exempt from the law must provide
renters with written notice stating: “This property is
not subject to the rent limits imposed by Section
1947.12 of the Civil Code and is not subject to the justcause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of
Sections 1947.12 (d) (5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a
real estate investment trust, as defined by Section
856 of the Internal Revenue Code; (2) a corporation;
or (3) a limited liability company in which at least one member is a corporation.” This notice must be
included in rental agreements that begin on or after
July 1, 2020. For tenancies that started prior to July 1, 2020, the rent agreement may but does not have to
include the notice provision.

Landlord must provide to reach tenant, prior to or at
time of agreeing to rent or lease a rental unit, a notice of tenants rights. The CCD is to publish a form notice of
tenants rights in English and other frequently spoken
languages. Landlord must provide the form notice in the following circumstances: (1) when entering into a rental agreement, by including a copy of the form notice as an exhibit or attachment to the written rental agreement;
(2) when renewing a rental agreement; & if the rental
agreement is negotiated or written in a language other
than English, the landlord must provide the form notice of tenant rights in English and the language in which the rental agreement was negotiated or written.

Notice requirements BG equivalent; ensure notices are
in language Tenant understands.

ENFORCEMENT/APPEALS Not Addressed
Community Development Department authority to
administer and enforce. Decisions subject to admin
appeal process.

Similar to moratorium
RENT BOARD Not Addressed No No

RENT STABILIZATION
Attachment C Page 24 of 36
REMEDIES Civil remedies
Tenant may bring civil action. Civil penalties for
violation. Right to assert landlord vioilations of RSO as affirmative defense in eviction proceedings.

BG equivalent

APPLICABILITY
12 months continuous lawful occupancy any rental
unit. If tenants added, then all must occupy at least
24 mo or at least one has lawfully occupied for at
least 24 mo
12 mo continuous lawful occupancy - at least one
tenant, any rental unit BG equivalent

AT-FAULT EVICTIONS
Landlords may evict a tenant for the following “for
cause” or “at fault” reasons: (1) failure to pay rent, (2) violation of material term of rental agreement, (3)
nuisance, (4) waste (5) tenant had rental agreement
that terminated on or after 1/1/2020 and refuses to
sign substantially similar lease, (6) criminal or illegal activity conducted by tenant, (7) assignment or
subletting in violation of lease, (8) refuse access, (9) property used for unlawful purpose, (10) failure to
vacate after termination of employment, (11) failure
to vacate after termination of lease.

Landlords may evict a tenant for the following “for
cause” or “at fault” reasons: (1) failure to pay rent, (2) violation of material term of rental agreement, (3)
waste, (4) nuisance or illegal purpose, carve out for
domestic violence victims (5) failure to sign substantially similar lease, (6) assignment or subletting in violation of lease, (7) refuse access, (8) failure to vacate after
termination of employment, (9) failure to vacate after
termination of lease.

BG equivalent (mirrors State law)

NO-FAULT EVICTIONS
Landlords may evict a tenant for the following “AtFault” reasons: (1) intent to occupy the residential real property by the owner or their spouse, domestic
partner, children, grandchildren, parents, or
grandparents, (2) withdrawal of the residential real
property from the rental market, (3) To comply with a
government order; (4) Intent to demolish or
substantially remodel the property
Landlords may evict a tenant for the following “NoFault” reasons: (1) demolish unit, (2) withdraw the rental unit permanently from rental housing use
pursuant to Ellis Act & other applicable State laws, (3) landlord or their immediate family wishes to move into
the rental unit for use as primary residence, (4) To
comply with a government order
BG equivalent - does not allow eviction for "substantial remodel". Add language that if Ellis Act changes, then
related no-fault reasons are nullified

TENANT RIGHT OF FIRST
RETURN Not addressed
If Landlord family no longer lives in unit within three years, then Tenant has right of first return at same rent plus allowable increases.

BG equivalent

RELOCATION ASSISTANCE
Yes. If a tenant is evicted for a "No-Fault" reason, the landlords are required to pay relocation assistance or
a rent waiver equal to the tenant's 1 month's rent
amount. Relocation assistance is not required for "AtFault" reasons.

Yes. If a tenant is evicted for a “No-Fault” reason,
landlords are required to pay relocation assistance for permanent displacement in an amount equal to 3 times
the tenant's monthly rent. Certain “qualified tenants”
(seniors, families with children, low-income households and tenancies of five years of more) are entitled to 4
times the monthly rent. If a tenant is temporarily
displaced to complete repairs that cannot be done while the tenant remains in the unit, landlords are required to provide a per-diem payment or comparable
accommodations. Relocation assistance is not required
for "At-Fault" reasons.

BG equivalent
BUY-OUT AGREEMENTS Not Mentioned
Yes, landlords may pay a tenant to vacate a unit, so long as they provide the following disclosures of tenant rights: (1) has right not to enter into buyout negotiations/agreement, (2) may consult with attorney, (3) may rescind agreement up to 30 days after signing, & (4) may contact depart. for information. All noticing must be in a language the tenant understands.

BG equivalent

RETALIATORY EVICTION
AND ANTI-HARASSMENT Retaliatory eviction prohibited Retaliatory eviction prohibited; harassment prohibited BG equivalent

TENANT EVICTION PROTECTIONS

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Blank Page

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
04/11/2023 Page 1 of 2

STAFF REPORT
Date: April 11, 2023
To: Honorable Mayor and City Council
From: Alfonso Noyola, City Manager
By: Juan Arauz, AICP, Community Development Director
Cecilia Madrigal-Gonzalez, Senior Planner
Subject: Consideration to Adopt a Proposed Urgency Ordinance of the City Council of the City of Cudahy Establishing an Interim Prohibition on Residential Rent Increases

RECOMMENDATION
Staff Recommends that the City Council take one of the following actions:

1. Adopt Urgency Ordinance No. 735 extending the temporary prohibition on residential rent increases for a period of 90 additional days with the ability to extend further; or

2. Take no further action, thereby allowing the current rent increase moratorium to expire on April 17, 2023.

BACKGROUND
On September 20, 2022, the City Council adopted Ordinance No. 725 by second reading, which temporarily froze residential rent increases for a 90-day period and created an Ad Hoc City Council subcommittee focusing on the issue. Ordinance No. 725 was set to expire on Wednesday, January 18, 2023.

On January 17, 2023, the City Council adopted Urgency Ordinance No. 731 extending the rent increase moratorium for an additional 90-days, this most recent extension is set to expire on April 17, 2023. Urgency Ordinance No. 731 contains a petition process for landlords to undertake should they seek a residential rental rent increase during the 90-day moratorium period. This petition process allows a landlord to file a petition with the City’s Community Development Department if they contend that the moratorium will prevent them from receiving a fair and reasonable return with respect to the residential rental units they lease out.

The tenant(s) shall be provided a copy of the petition and notice of the scheduled hearing Item Number
5B

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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
04/11/2023 Page 2 of 2

before the City’s Hearing Officer. The tenant(s) and landlord can testify at the hearing, with a written decision subsequently issued. Parties can have the Hearing Officer’s written decision reviewed by the Superior Court.

The ad hoc committee that was created under Ordinance No. 725 had met over the last six months to discuss the proposed rent stabilization language to present to the City Council. The City Council has not yet had a chance to review or discuss the recommendations by the ad hoc committee with regard to rent stabilization.

Adopting proposed Urgency Ordinance No. 735, by a four-fifths vote as required pursuant to Government Code Section 36937(b), would extend the temporary moratorium for an additional 90 days, expiring on July 10, 2023, by its terms. This will allow an additional 90 days for the City Council to hear and consider the recommendations from the ad hoc committee and make a decision on the matter themselves. Urgency Ordinance No. 735 contains the same petition process previously included in Ordinance Nos. 725 and 731.

CONCLUSION
Staff recommends the City Council adopt Urgency Ordinance No. 735 by a 4/5 vote as required and extend the temporary moratorium on rent increases to give the City Council an additional 90 days to make a decision on rent stabilization.

STRATEGIC PLAN IMPACT
None.

FINANCIAL IMPACT
Not applicable.

ATTACHMENTS
A. Urgency Ordinance No. 735

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1 URGENCY ORDINANCE NO. 735

AN UNCODIFIED URGENCY ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA

ESTABLISHING AN INTERIM PROHIBITION OF RENT

INCREASES ON CERTAIN RESIDENTIAL PROPERTIES
FOR NINETY (90) DAYS WITH THE ABILITY TO EXTEND
FURTHER.

WHEREAS, the City of Cudahy (“the City”) is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries that promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws; and WHEREAS, rents throughout Los Angeles County are continuing to rise despite the State’s Tenant Protection Act of 2019 (Tenant Protection Act), and as housing costs rise, many local residents continue to struggle with a decrease in affordability, housing insecurity, and potential homelessness, particularly low-income households and those persons who continue to be negatively impacted by the ongoing COVID-19 pandemic; and
WHEREAS, Los Angeles County and the cities within the County are experiencing a housing affordability crisis, which is driving homelessness and displacement of residents; and
WHEREAS, many of the City’s renters are rent-burdened, paying over 30 percent of their income on rent, and some renters are severely rent-burdened, paying over 50 percent of their income on rent, which leaves less money for families to spend on other necessitates like food, healthcare, transportation, and education; and WHEREAS, housing displacement due to rent increases hinders residents from weathering and surviving through the ongoing COVID-19 pandemic, including waves of infection, by preventing individuals from isolating as necessary at home due to infection or exposure; and
WHEREAS, there is an urgent need for the City to enact a temporary moratorium on rent increases to protect the health, safety, and welfare of its residents in light of the ongoing COVID-19 pandemic, including the need to keep residents in their homes to isolate or shelter-in-place as necessary; and
WHEREAS, pandemic-related tenant protections under the County of Los Angeles and State of California are gradually phasing out; and
Attachment A

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2 WHEREAS, current State law allows increasing annual rent five percent (5%) plus the consumer price index (CPI), up to a maximum of ten percent (10%) for properties subject to the Tenant Protection Act of 2019; and
WHEREAS, this urgency ordinance is intended to extend the temporary prohibition on rent increases to protect tenants from rising rent costs while the City further considers and develops a permanent rent control program; and
WHEREAS, failure to adopt this extension to the temporary moratorium may subject renters to economic hardship and potential displacement that may lead to homelessness to the detriment of the public health, safety and welfare; and WHEREAS, Government Code Sections 36934 and 36937 authorize the City to adopt an Urgency Ordinance for the immediate preservation of the public peace, health and safety, provided that such Urgency Ordinance is passed by a four-fifths vote of the City Council.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUDAHY, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The recitals above are true and correct and incorporated herein by reference.

SECTION 2. Findings. Based on the findings set forth in the Recitals, the City Council finds and declares this Urgency Ordinance to be necessary for the immediate preservation of public health, safety and welfare and upon that basis has determined that an urgency measure, pursuant to Government Code Section 36937(b) is warranted and shall take effect immediately upon adoption by a fourth-fifths vote of the City Council.

SECTION 3. Definitions. For the purposes of this Urgency Ordinance, the following definitions shall apply:

A. “Base Rent” means the monthly Rent that was in effect on April 11, 2023.

B. “Covered Rental Unit(s)” means any Rental Unit except for:
a. A dwelling unit which is alienable separate from the title to any other dwelling unit, or which is a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (f) of Section 11004.5 of the Business and Professions Code;
b. A dwelling unit for which a certificate of occupancy was issued after February 1, 1995; or
c. Any other dwelling unit exempt from the Costa-Hawkins Rental Housing Act (California Civil Code Section 1954.52) or any other applicable state or federal law.

B. “Hearing Officer” means the person designated by the City Manager to conduct a review hearing under Section 7 of this Urgency Ordinance. The Hearing

Page 30 of 36 ends

3 Officer shall not be the enforcement officer that investigated the matter under Section 7 of this Urgency Ordinance that is the subject of the administrative hearing or the immediate supervisor of that enforcement officer.

C. “Housing Services” means all services provided by the Landlord related to the use or occupancy of a Covered Rental Unit, including but not limited to, insurance, repairs, replacement, maintenance, painting, utilities, heat, water, elevator service, laundry facilities, recreational areas and/or pools, janitorial service, refuse removal, furnishings, parking, storage, and security services.

D. “Landlord” means an owner, lessor, or sublessor who receives or is entitled to receive Rent of the use and occupancy of any Covered Rental Unit or Rental Unit or portion thereof, and the representative, agent, or successor of such owner, lessor, or sublessor. For purposes of this Urgency Ordinance, a Landlord does not include an individual whose primary residence is the same Covered Rental Unit as the Tenant.

E. “Protection Period” means the time period commencing on the effective date of this Urgency Ordinance shall terminate ninety (90) days thereafter on July 10, 2023, unless further extended or repealed by action of the City Council.

F. “Rent(s)” is the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Covered Rental Unit, including tenant’s access to and use of Housing Services. Rent includes without limitation, the fair market value of goods accepted, labor performed, or services rendered.

G. “Responsible Person” is a person responsible for, or alleged to be responsible for, a violation of this Urgency Ordinance.

H. “Tenant” means a person entitled, by written or oral agreement, or by sufferance, to the use or occupancy of any Covered Rental Unit or Rental Unit.

J. “Rental Unit(s)” means any dwelling units as defined in California Civil Code section 1940, subsection (c), including joint living and work quarters used or occupied in consideration of payment of Rent. This definition 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, mobile homes rented by the owner of a mobile home to a Tenant, and accessory dwelling units. For purposes of compliance with this Urgency Ordinance, Rental Unit does not mean any dwelling unit in which the Landlord or any member of his/her immediate family occupies one of the dwelling units on the property containing

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4 the Rental Unit and it is necessary for the Landlord or any member of his/her immediate family to use either a bathroom or kitchen facility common with the tenant.

SECTION 4. Rent Increases Temporarily Prohibited. As of the effective date of this Urgency Ordinance, and through the Protection Period, a residential Landlord in the City of Cudahy shall not increase Rent for a Covered Rental Unit occupied by an existing Tenant whose tenancy began before or on April 11, 2023. A decrease in Housing Services is considered an increase in Rent. This Urgency Ordinance does not regulate the initial Rent at which a unit is offered.

SECTION 5. Exceptions and Exemptions. The following are exempt from this Urgency Ordinance:

SECTION 7. Petition for Relief.

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5 shall bear the burden of proving by a preponderance of the evidence at the hearing that because of the implementation of this Urgency Ordinance, the Landlord is unable to obtain a fair and reasonable return.

B. Hearing Process.

1. A hearing before the Hearing Officer shall be set for a date no sooner than fifteen (15) days and no later than sixty (60) days after receipt of the request and proof of service on any request complying with the requirements of this Section 7, unless the Hearing Officer determines that good cause exists for an extension of time. The Hearing Officer shall send written notice to the Landlord and the Tenant of the date, time, and place set for the hearing. Upon receipt, the Landlord shall post such notice in a conspicuous place at the affected property including the Covered Rental Units that are the subject of the petition. Such notice shall be placed on a written instrument that is at least eleven (11) inches in width and seventeen (17) inches in length and shall be placed not less than four (4) feet above ground level in the common area, at the entry or entries to the building or units, or other similar location or locations as necessary to provide Tenants a reasonable opportunity to view the notice and be advised of the hearing. Within five (5) calendar days of receipt of the notice of hearing, the Landlord shall personally deliver a copy of the notice to each Tenant in the affected Covered Rental Units.

2. At the hearing the Landlord shall be given the opportunity to testify, call witnesses, and to present evidence concerning the petition. The Hearing Officer shall then hear testimony from the Tenants in the affected Covered Rental Units. The Hearing Officer may continue the hearing and request additional information from the Landlord or Tenant before issuing a written decision. The Hearing Officer shall have the power to issue orders to keep order and decorum during the hearing. All hearings conducted by the Hearing Officer shall be open to the public.

3. The Hearing Officer may, in his or her discretion, grant a continuance of the hearing date upon a request and a showing of good cause by the Landlord or Tenant. The request must be made in writing and be received by the Hearing Officer at least five (5) business days prior to the hearing date. In the instance of a Landlord's continuance request, the Landlord must personally deliver a copy of the request to the affected Tenant(s). In the instance of a Tenant's continuance request, the Tenant must personally deliver a copy of the request to the Landlord. In no event shall the continuance be longer than fifteen (15) calendar days from the originally scheduled hearing date.

4. The cost of the hearing, including but not limited to a Hearing Officer’s fee, shall be borne by the petitioner.

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6 consider the basis for the calculation of any increase in Rent. Relevant factors may include, but are not limited to, changes in costs to the Landlord attributable to increased utility rates, trash collection rates, property taxes, insurance, advertising, variable mortgage interest rates, governmental assessments and fees, incidental services, employee costs, normal repair, maintenance, upgrading and addition of amenities or services, rent rolls, financial statements, expert analysis, and relevant studies.

D. Hearing Officer Decision. After considering all the testimony and evidence submitted at the hearing, within twenty (20) calendar days after the conclusion of the hearing, the Hearing Officer shall issue a written decision denying, affirming or modifying the petition and shall adopt written findings in support of that decision. The written decision shall be served by first-class mail, postage prepaid on the Landlord and any Tenants in the affected Covered Rental Unit.

The Hearing Officer's decision shall be final.

SECTION 10. Sunset Date. This Urgency Ordinance shall expire by its own terms on July 10, 2023, unless otherwise extended by action of the City Council.

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7 pursuant to Section 15060(c)(3) constituting an activity that is not a project as defined in Section 15378.

SECTION 12. The City Clerk shall certify to the passage and adoption of this Urgency Ordinance and shall cause this Urgency Ordinance to be published or posted as required by law, which shall take full force and effect immediately upon its adoption by a four-fifths vote of the City Council for a period of 90 days, unless extended.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cudahy at the regular meeting of this 11th April 2023.

Daisy Lomelí
Mayor
ATTEST:

Richard Iglesias
City Clerk

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8 STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF CUDAHY )
I, Richard Iglesias, City Clerk of the City of Cudahy, hereby certify that the foregoing Urgency Ordinance No. 735 was introduced on the 11th day of April, 2023 and adopted by said City Council at its regular meeting by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

Richard Iglesias, City Clerk

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Cudahy City CouncilApril 11, 2023

Cudahy City Council
April 11, 2023