POTENTIAL ADDITIONS TO THE TPO AND RSO
The items below are potential new items to consider adding to the TPO and RSO, which also reflect recommendations by the Advisory Committee on Housing and Homelessness (ACOHH).
1. Add Ellis Act Regulations
Background
The Ellis Act is a provision in California Law (Government Code section 7060-7060.7) that provides landlords in California with a legal way to go out of the rental market business. For an Ellis Act eviction, the landlord must remove all of the units in the building from the rental market, i.e., the landlord must evict all the tenants and cannot single out one tenant (for example, with low rent) and/or remove just one unit out of several from the rental market.
Local entities are permitted to place various restrictions on the landlord's ability to go out of business. For instance, cities may require landlords to file a "notice of intent to withdraw" and provide the city with information about the tenancy (such as names of tenants, dates of commencement, and rental rates). Cities may require a payment of relocation assistance "to mitigate any adverse impact on persons displaced" or an extension of the termination date of tenancies from the standard 120 days to a full year from the commencement of the withdrawal process if tenants claim to be at least 62 years old or are disabled.
A city may also impose restrictions against the future rental use of the property. It may require that if the landlord offers the withdrawn units for lease within ten years of withdrawal, the unit must be offered to the displaced tenant(s), and that if the unit is offered within the first five years, it must be offered to the displaced tenant(s) at the former rental rate.
In order to be applicable within Culver City, the City would need to adopt Ellis Act regulations.
Staff recommendation: Consider adding Ellis Act protections.
ACOHH recommendation: Members were unable to provide a recommendation on whether to adopt the Ellis Act, but has recommended the City Council consider the tradeoffs with adopting an Ellis Act ordinance, including its interplay with SB 8/SB 330.
2. Establish a Minimum Evictable Rent
Background
A Minimum Evictable Rent ordinance provides that landlords may not evict a tenant who falls behind in rent unless the tenant owes an amount higher than a specified amount.
SHHS recommendation: The SHHS recommends the economic threshold for eviction be an amount equal to one month’s Fair Market Rent (FMR) for the unit. The FMR depends on the bedroom size of the rental unit. This is consistent with the City of Los Angeles economic threshold.
ACOHH recommendation: In support of the SHHS recommendation.
3. AB 1620 Permanent Disabilities: Comparable or Smaller Units Background
Consistent with state law, this would permit a tenant who is not subject to eviction for nonpayment of rent and who has a permanent physical disability related to mobility to move to an available comparable or smaller unit located on an accessible floor of the property if certain conditions are met. This would require an owner who grants a request pursuant to these provisions to allow the tenant to retain their lease at the same rental rate and terms of the existing lease if certain conditions are met, including, among others, the move is determined to be necessary to accommodate the tenants disability related to mobility and the new dwelling or unit is in the same building or on the same parcel with at least 4 other units.
Staff recommendation: Add reference to this law into TPO.
ACOHH recommendation: In support of staff’s recommendation.
4. Prohibit Increase of Security Deposits
Background
Effective July 1, 2024, state law (Civil Code section 1950.5) limits the permissible amount of a security deposit to one month’s rent. However, landlords who are natural persons (or an LLC in which all members are natural persons) and who own no more than two rental properties with a total of four units or less may demand two months’ rent as a security deposit unless the prospective tenant is a service member. The owner may require the tenant to pay this deposit in addition to the first month's rent.
SHHS recommendation: Revise the RSO and TPO to prohibit landlords from increasing the security deposit being held during a tenancy.
Staff is seeking direction as to whether this would apply where an existing security deposit is below the existing rent.
If passed, tenants can work with an attorney and/or Bet Tzedek, who is currently contracted with the City's Housing and Human Services Department to enforce this protection.
ACOHH recommendation: Security deposits increases should not be allowed during tenancy. However, consider an increase in pet deposits for new pets, if State law permits.
5. Prohibition on Algorithmic Rent Setting
Effective January 1, 2026, Algorithmic Rent Setting is prohibited in California. No revisions to the RSO and TPO are recommended.
ACOHH recommendation: In support of the recommendation of no revisions to the RSO or TPO for this item.
REVISIONS TO TPO AND RSO
The items below are potential revisions to the TPO and RSO. They are organized by topic.
1. Application of RSO and TPO
a) 12-month mark for tenancy
Evictions protections for tenants only apply after at least one tenant has continuously and lawfully occupied the rental unit for more than 12 months.
Staff is seeking direction about whether evictions protections should apply earlier.
ACOHH recommendation: The 12-month vesting period should remain unchanged. b) Exemption from RSO and TPO for PSH and ISH sites run by the City The RSO is inapplicable to “Any dwelling unit for which the landlord receives federal, state, or local housing subsidies, including, but not limited to, federal housing assistance vouchers issued under Section 8 of the United States Housing Act of 1937 line 9 (42 U.S.C.
Sec. 1437f).
Staff recommends adding language to provide express notice that the RSO and TPO are inapplicable to PSH and ISH
ACOHH recommendation: In support of staff’s recommendation. c) Application of RSO and TPO to hotels and motels
Staff is seeking direction about whether to apply the RSO and TPO to hotels and motels where management staff requires occupants to periodically move rooms, but the occupants live in the motel or hotel long term.
ACOHH recommendation: Research other cities to determine if protections are extended in this instance. Additionally, consider any financial implications and general impacts on motel owners, if this were to pass.
d) Add definition of rental complex
Staff recommends adding a definition of rental complex and clarifying that staff can enter into an agreement with City of LA establishing jurisdiction over a cross-jurisdictional rental complex.
Rental Complex. One or more buildings, used in whole or in part for residential purposes, located on a single lot, contiguous lots, or lots separated only by street or alley.
ACOHH recommendation: In support of staff’s recommendation.
2. Rent Adjustment Applications
Currently there is no cap on the maximum annual rent change after an approved rent adjustment. This could lead to substantial rent increases for tenants.
Staff is seeking direction on whether to place a cap on the maximum annual rent change or use of a phased in approach for rent increases that exceed a certain limit.
ACOHH recommendation: Consider any legal challenges and what other cities have in place for more substantial increases.
3. Landlord Occupancy (Section 15.09.320.B)
a) Percentage ownership in trusts to recover possession for landlord occupancy During the last TPO clean up the City added the language below
4. A landlord may only recover possession of a rental unit pursuant to the provisions of § 15.09.320.B.1 if the landlord is (i) a natural person, (ii) a trust that is recovering possession for use of a natural person trustee or the trustee's eligible relative, (iii) a limited liability company, in which no member is or is controlled by a corporation, that is recovering possession for use of a natural person member or a member's eligible relative; or (iv) a partnership, in which no partner is or is controlled by a corporation, that is recovering possession for use of a natural person partner or a partner's eligible relative.
The City Council asked whether a percentage ownership should be added to the ownership in trust language. Staff is seeking direction about what percentage ownership, if any, should be required.
ACOHH recommendation: Undecided, as the members were split between no position on this item and establishing a percentage.
b) Alternatives to the landlord occupancy notice
The landlord occupancy rules only allow a landlord occupancy when a rental agreement was entered into on or after July 1, 2020 if (1) the tenant agrees in writing to the termination for landlord occupancy or (2) if a provision of the rental agreement allows the landlord to terminate the rental agreement if the landlord, or their spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the rental unit.
Staff requests direction on whether tenant agreement should remain an option.
Staff recommends adding a third option for the landlord to give the tenant 6 months’ notice of the landlord occupancy. This would apply on a going-forward basis.
ACOHH recommendation: In support of adding the third option of a 6-month notice on a going-forward basis.
c) Landlord occupancy during school year
The landlord occupancy rules state that a landlord may not recover possession of a rental unit for landlord occupancy if:
(d) The rental unit is the primary residence of a school-aged (grades Pre-K-12) child enrolled in a school located in the public school district to which the rental unit is assigned, and the notice of termination requires that the rental unit be vacated during the current school term.
Staff recommends revising the language to apply “during the current school year.” Staff is seeking direction about whether this should apply to summer school.
ACOHH recommendation: In support of changing “school term” to “school year. ”
4. Capital Improvements
Staff recommends the definition of capital improvements be expanded to apply to substantial renovations. Staff is seeking guidance as to what should be considered a “substantial renovation. ”
ACOHH recommendation: Define “substantial renovation” to align with state law.
5. Demolishing Rental Unit
Staff recommends adding more clarification about what steps need to occur before a landlord terminates a tenancy in order to demolish the rental unit. Staff suggests adding language that the landlord would need to submit a Replacement Unit Determination and follow the requirements of state law regarding tenant occupancy prior to demolition.
ACOHH recommendation: In support of adding references to Replacement Unit Determinations.
6. Housing Services
If a tenant contends that a proposed or actual rent increase is not in compliance with the RSO or that there has been a reduction in housing services, the tenant may file a petition with the housing services division. Staff is seeking direction about whether a loss of a space, such as a bedroom or bathroom, should be considered a reduction in housing services for the purposes of a Tenant Petition for Noncompliance.
ACOHH recommendation: In support of considering the loss of space as a reduction in housing services and will defer to staff to determine how the loss is quantified.