Goleta City Council
March 5, 2024

Agenda Item C.3

CPMS DISCUSSION/ACTION ITEM
Meeting Date: March 5, 2024
TO: Mayor and Councilmembers
SUBMITTED BY: Peter T. Imhof, Planning and Environmental Review Director PREPARED BY: Lucy Graham, Senior Housing Analyst
SUBJECT: Introduction and first reading, by title only, of a Tenant Protections Ordinance Amending Chapter 8. 19, Tenant Protections, of Title 8, Health and Safety, of the Goleta Municipal Code
RECOMMENDATION:

Introduce and conduct first reading (by title only) and waive further reading of Ordinance No. 24-__, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 8.19, Tenant Protections, of Title 8, Health and Safety, of the Goleta Municipal Code, and Determining the Ordinance to be Exempt from CEQA ,” and select one of two options to include in the ordinance regarding applicable rental rate for re-rental of a unit to a prior tenant exercising a right of first refusal following completion of a substantial remodel.

BACKGROUND:

The Tenant Protection Act of 2019 (Assembly Bill [“AB”] 1482; Civil Code Sections 1946.2 and 1947.12) established statewide just-cause eviction protections and rent stabilization for residential tenants, but it also authorized cities to enact more protective local regulations that supersede state law. In October 2023, the California State Legislature adopted Senate Bill 567 (“SB 567”), to add new eviction -notice requiremen ts and enforcement mechanisms to the Tenant Protection Act of 2019, but the provisions of SB 567 do not take effect until April 1, 2024.

Last December, the Council adopted a Tenant Protections Urgency Ordinance more protective than state law, which went into effect immediately to protect the public health, safety, and welfare of the community. The ordinance created just-cause requirements for termination of residential tenancy, payment of relocation assistance equal to two months’ rent in cases of no -fault just cause terminations of tenancy, a mandatory offer of a one - year lease, and a mandatory right of first refusal for tenants in certain circumstances to re-rent the rental unit they previously vacated. In addition to the adoption of the Urgency 1 Meeting Date: March 5, 2024

Ordinance, the Council directed staff to return at a later date with a non-urgency ordinance with additional research and information.

Ordinance No. 24 -__, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 8.19, Entitled Tenant Protections, of Title 8, Health and Safety, of the Goleta Municipal Code, and Determining the Ordinance to be Exempt from CEQA” is provided in Attachment 1. In addition , a redlined version of the Ordinance is provided in Attachment 2.

DISCUSSION:

During deliberation of the urgency ordinance in December, the City Council discussed certain aspects of the tenant protections proposed and directed staff to conduct additional research and return with ordinance revisions for consideration in early 2024.

Tenant Protections Effective December 2023
The current tenant-protection regulations in the Goleta Municipal Code require an owner or landlord to cite a just cause for terminating a tenancy and specify whether it is an at - fault or no -fault reason. The written notice of Termination of Residential Tenancy must state the full facts and circumstances of the situation. To qualify as a no-fault just cause, the owner must be seeking, in good faith, to recover possession to withdraw the units from the rental market, to comply with applicable laws/codes, to demolish or substantially remodel the unit, or so that the owner or their family can occupy the unit. When an owner or landlord issues a notice of Termination of Residential Tenancy for no -fault just cause, the ordinance requires the payment of relocation assistance equal to an amount set by the City Council or two (2) months’ rent, whicheve r is greater. Another tenant protection in the ordinance is the requirement for a landlord (as owner, lessee, sublessee , agent, representative, or successor) to offer a one -year lease for new and renewed residential tenancies, other than short-term rentals of 30 days or less. When the lease expires, the landlord must offer a new one-year lease, in compliance with the ordinance. If the landlord does not wish to continue the rental relationship, the tenant must be offered a one-session conciliation meeting using a publicly funded housing mediation service, if available, or a qualified mediator of mutual choice and provided at mutual expense . In cases where an owner or landlord issues a no-fault just-cause notice of Termination of Residential Tenancy to demolish (and rebuild) or substantially remodel the unit, the owner or landlord must provide the tenant with copies of permits and a notice of their Right of First Refusal, which gives the tenant the right to re-rent the unit once the remodel work is completed, at a rental rate equal to the rent on the date the tenant vacated the unit plus 5% plus the change in the cost of living, or 10%, whichever is less . T he tenant must submit an acceptance of the offer to re-occupy, in writing and within 30 days of receipt of the offer.

Proposed – Addition of Reference to Costa-Hawkins Rental Housing Act In consultation with the City Attorney, staff has added a reference to the Costa -Hawkins Rental Housing Act (“Costa-Hawkins Act”) to the proposed ordinance. Existing state law under the Costa -Hawkins Act places limits on municipal rent control ordinances. As drafted, the proposed ordinance explicitly states that the City’s tenant protections shall not apply where they conflict with requirements of the Costa-Hawkins Act. 2 Meeting Date: March 5, 2024

Proposed – Addition of Early Tenant Alert Notice Requirement Staff recommends that an “Early Tenant Alert Notice” be added to the notice requirements for a no -fault just cause Termination of Residential Tenancy. The Early Tenant Alert Notice is an additional 60 days’ notice, provided in writing, to a qualified tenant that the owner intends to issue a notice of termination, in order to provide the tenant with additional time to prepare for the loss of their rental unit and to secure new housing.

Proposed – Tenant Anti-Harassment Provisions
Following reports of harassment experienced by tenants on the South Coast, staff is recommending more specific language regarding the prohibition of tenant harassment related to residential tenancies. Added into Additional Tenant Protections (Section

8.19.070), the revisions have been made to protect tenants in cases of willful harassment by owners or landlords. Prohibited harassment activities are those that serve no lawful purpose but affect a tenant’s use or enjoyment of their rental unit, such as reducing or removing housing services that are in the lease, failing to make timely needed repairs, threatening physical harm, invading the tenant’s privacy, offering unwanted payments or inducements to get the tenant to move, re taliation for exercising rights or participating in tenants’ unions, and intentional misrepresentation of facts or rights. Remedies specific to tenant harassment have also been added to the ordinance.

For Council Consideration – Right of First Refusal After Substantial Remodel On December 19, several City Councilmembers and members of the public discussed the Right of First Refusal for tenants to re -occupy a unit following completion of a substantial remodel. In its deliberation, Council expressed a desire to consider this issue further. After further research and review, staff proposes that the Right of First Refusal be for a term of two years. In addition, regarding the monthly rental rate upon a Right of First Refusal re -rental, staff has drafted two pol icy options for Council consider ation and direction to staff as to which option should be included in the final language of the ordinance. Both options would retain a tenant’s Right of First Refusal to re-rent the unit after completion of a substantial remodel but would differ on the allowable rental rate upon re-rental, as follows:
 Option 1 for Section 8.19.060(C): “The monthly rental rate for the unit shall be set at no more than the total rental rate charged for the unit at the time of the notice of Termination of Residential Tenancy, plus annual adjustments that would have been allowed if the tenancy had not been terminated, which shall not exceed the allowed monthly rental rate multiplied by the lower of 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower.”  Option 2 for Section 8.19.060(C): “Where applicable, the monthly rental rate shall be established in accordance with the Costa -Hawkins Rental Housing Act (California Civil Code § 1950.50 et seq.).”
With both options , the owner would be required to offer in writing the unit to the tenant under a new rental agreement . The tenant would have to respond in writing within 30 days of receipt of the offer.
3 Meeting Date: March 5, 2024

Other Topics Reviewed
City Council directed staff to study two additional topics concerning tenant protections.

The first topic discussed was specifying a time period for wh ich a unit must be kept off the housing market in order to qualify as a no-fault just cause under the City’s ordinance.

As adopted, the City’s tenant protections ordinance is in line with state law and other tenant protections in nearby jurisdictions, such as the County and City of Santa Barbara.

The language allows for withdrawal of a rental unit from the rental market as one of the permissible no-fault just cause reasons to terminate a residential tenancy. In order to cite withdrawal from the rental market as just cause, an owner must be seeking “in good faith to recover possession to permanently withdraw the rental unit from the rental market in accordance with applicable State law.” However, exercising that option does not alter the allowable uses on the property or c reate long-term barriers to re -entry of the unit to the rental market, should circumstances change at some future date. In considering inclusion of a time period in the revised ordinance, staff concluded that it could be less protective than current state law which does not specify a time period and thus is not recommending adding a time frame.

The second topic involved exempting from the provisions of the ordinance all properties with four units or fewer . Staff obtained current County Assessor data to analyze the potential impact of such a change. The City maintains data on zoning districts, land use designations, and issued permits, whereas the Assessor data contains current information on the uses observed on properties including , among others, the categories of “Apartments, 5 or more units” and “Residential Income, 2-4 units.” Of all the Assessor parcels in the City of Goleta, 199 parcels are listed as “Apartments, 5 or more units,” and 173 parcels are list ed as “Residential Income, 2 -4 units .” Therefore, while larger apartment buildings comprise a majority of the multifamily units in the City, a not insignificant number of renter households in the City reside in multifamily structures with four units or fewer. This is in addition to the number of City residents who rent any of the single-family homes (5,317), condominiums (2,739), and mobile homes (648) that do not qualify as exempt from th e tenant protections ordinance. Therefore, staff is not recommending exemption of properties with four units or fewer.

Environmental Review
Pursuant to CEQA Guidelines Sections 15061(b)(3) and 15378(b)(5), the proposed ordinance does not qualify as a "project" for the purposes of CEQA, because the ordinance does not result in direct or indirect physical changes in the environment. The proposed ordinance does not, by itself, have the potential to cause a significant effect on the environment. As such, the proposed ordinance is exempt from CEQA review. A draft Notice of Exemption is provided in Attachment 3.

The staff presentation for this item is provided in Attachment 4.

GOLETA STRATEGIC PLAN:

City-Wide Strategy: Support Economic Vitality.

4 Meeting Date: March 5, 2024

 Strategic Goal: Promote a sustainable local economy.
 Strategic Goal : Increase the amount of City property that can be utilized for various community uses and benefits.
 Strategic Goal : Support organizations, programs, and policies that facilitate affordable housing for the Goleta workforce.

City-Wide Strategy : Support Community Vitality and Enhanced Recreational Opportunities.
 Strategic Goal : Support programs that enhance quality of life in the Goleta community such as recreation, public safety, human services, and cultural arts.

FISCAL IMPACTS:

There is no fiscal impact associated with this item. Existing staff will advise members of the public of protections under the ordinance. Through the City’s contract with the Rental Housing Mediation Program (RHMP) of the City of Santa Barbara, mediation staff would assist City residents in tenant-landlord disputes, so long as the City maintains its RHMP professional services contract. The City Attorney may have increased workload if they were to enforce the ordinance through administrative, civil, or criminal action or bring action for injunctive relief. In such cases, the City Attorney would seek recovery of costs, expenses, and attorneys’ fees as allowed by law.

ALTERNATIVES:

The Council could direct staff to make amendments to the proposed ordinance revisions.

The Council could also choose not to adopt revisions to GMC Chapter 8.19, T enant Protections, at this time.

LEGAL REVIEW BY: Megan Garibaldi, City Attorney
APPROVED BY: Robert Nisbet, City Manager
ATTACHMENTS:

1. Ordinance No. 24 -__, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 8.19, Entitled Tenant Protections, of Title 8, Health and Safety, of the Goleta Municipal Code, and Determining the Ordinance to be Exempt from CEQA”

2. Revisions in Strike -through/Underline for Ordinance No. 24 -__, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 5 Meeting Date: March 5, 2024

8.19, Entitled Tenant Protections, of Title 8, Health and Safety, of the Goleta Municipal Code, and Determining the Ordinance to be Exempt from CEQA”

3. CEQA Notice of Exemption for Ordinance

4. Staff Presentation
6 Attachment 1

Ordinance No. 24-__, entitled “An Ordinance of the City Council of the City of Goleta, California, A mending Chapter 8.19, Entitled Tenant Protections, of Title 8, Health and Safety, of the Goleta Municipal Code, and Determining the Ordinance to be Exempt from CEQA”
7 Ordinance No.24-__ Tenant Protections Ordinance
ORDINANCE NO. 24-__

AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF GOLETA, CALIFORNIA,
AMENDING CHAPTER 8.19, ENTITLED
TENANT PROTECTIONS , O F TITLE 8 ,

HEALTH AND SAFETY, OF THE GOLETA

MUNICIPAL CODE, AND DETERMINING THE

ORDINANCE TO BE EXEMPT FROM CEQA

WHEREAS decent, safe, and sanitary housing is a human necessity and right; and

WHEREAS there is a shortage of housing units on the South Coast of Santa Barbara County (the “County”) and in the City of Goleta (the “City” or “Goleta”), particularly for households in the moderate- and lower-income categories; and

WHEREAS, according to the most recent data from the US
Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy (CHAS) based on the 2016 -2020 American Community Survey (ACS) data, 48% of renter households in the City experience a cost burden of paying more than 30% of their income toward monthly housing costs; and

WHEREAS 71% of the cost-burdened renter households in the City are in the lower-income categories, earning less than 80% of area median income; and

WHEREAS, according to the City of Santa Barbara’s 2023 Rent Survey for the South Coast, the median advertised rental rate for a two - bedroom apartment was $3,981; and

WHEREAS the vacancy rate is less than 1%, according to 2017 - 2021 ACS data, making it difficult and expensive to find a housing unit; and

WHEREAS eviction creates particular hardships for individuals and households of limited means, due to the shortage of housing and intense competition for such housing units in Goleta and the County more generally; and

WHEREAS housing instability threatens the public peace, health, and safety as eviction from one’s home can lead to homelessness, increased residential mobility, loss of community, strain on household finances due to the necessity of paying rental application fees and security 8 Ordinance No.24-__ Tenant Protections Ordinance
deposits, increased stress and anxiety, longer commute times and adverse traffic impacts if displaced workers cannot find affordable housing within the city in which they work, and disruption of the education of children in the home; and

WHEREAS recent high profile headlines highlighting mass termination of tenancies at apartment complexes, sometimes comprising hundreds of units each, in Isla Vista within the County and nearby Los Angeles, have drawn attention to an urgent need to protect tenants at a time of scarce rental inventory and low vacancy rates in the City and County; and

WHEREAS the California State Legislature passed the Tenant Protection Act of 2019 (“AB 1482”), codified in pa rt in California Civil Code Section 1946.2 (“Section 1946.2”), which became effective by its own terms on January 1, 2020 and, with certain exceptions, established statewide just cause eviction protections and rent stabilization for residential tenants and authorized cities to enact more protective local regulations; and

WHEREAS, in October 2023, the California State Legislature adopted Senate Bill 567 (“SB 567”), amending sections of California Civil Code Section 1946.2 and Section 1947.12 (“Section 1947.12”) and adding new noticing requirements and enforcement mechanisms to the Tenant Protection Act of 2019, which is scheduled to take effect on April 1, 2024; and

WHEREAS the City wishes to provide stronger and more immediate tenant protections citywide than what is provided in state law, including AB 1482 and SB 567 , and enact local regulations to protect renters from displacement and homelessness and t hereby promote housing and neighborhood stability; and

WHEREAS City regulations are intended to provide additional tenant protections beyond state law requirements by making permanent the temporary protections provided under AB 1482, which would otherwise expire in 2030; and

WHEREAS, absent City regulations, owners may te rminate the tenancy of residential tenants under state law, including AB 1482, without oversight by the City, and the City wishes to exercise greater oversight over such terminations; and

WHEREAS City regulations enacted by this Ordinance are more protective than the provisions of AB 1482 because the City regulations provide additional protections and specific requirements for the exercise of no-fault just cause terminations of residential tenancies; and 9 Ordinance No.24-__ Tenant Protections Ordinance

WHEREAS the City Council finds and determines that regulating the relationship between residential landlords and tenants will increase certainty and fairness in the residential rental market, and be consistent with the stricter tenant protections that exist in neighboring localities; and

WHEREAS said tenant protection measures are in line with the City’s General Plan policies that support affordable housing, including but not limited to HE 1.4 (Preserve Mobile Home Parks and Facilitate Mobile Home Park Ownership Opportunities), HE 1.5 (Limit Conversion of Rental Housing to Condominiums and Housing Units to Nonresidential Use) , and HE 3.1 (Affirmatively Further Fair Housing Opportunities); and

WHEREAS said tenant protection measures are also consistent with existing City regulations aimed at preserving ren tal stock and affordable housing, such as Goleta Municipal Code (GMC) Chapter 17.29 Demolition, Relocation, and Loss of Dwelling Units.

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

SECTION 1. Recitals

The City Council hereby finds and determines that the foregoing recitals, which are incorporated herein by reference, are true and correct.

SECTION 2. Environmental Assessment

Pursuant to CEQA Guidelines Sections 15061(b)(3) and 15378(b)(5), the proposed Ordinance does not qualify as a "project" for the purposes of CEQA, because the Ordinance does not result in direct or indirect physical changes in the environment. The Ordinance proposed does not, by itself, have the potential to cause a significant effect on the environment because the tenant protections enacted herein do not require or authorize any physical change to the environment . As such, the proposed Ordinance is exempt from CEQA review.

SECTION 3. Tenant Protections

Chapter 8.19, entitled Tenant Protections, of Title 8 of the Goleta Municipal Code, Health and Safety, is replaced to read in its entirety:

10 Ordinance No.24-__ Tenant Protections Ordinance
Chapter 8.19 Tenant Protections

Sections:

8.19.010 Purpose.

8.19.020 Applicability.

8.19.030 Definitions.

8.19.040 Just Cause for Termination of Residential Tenancy.

8.19.050 Mandatory Offer of Residential Lease.

8.19.060 Mandatory Right of First Refusal.

8.19.070 Additional Tenant Protections.

8.19.080 Remedies.

8.19.010 Purpose.

The residential rental housing market on the South Coast of Santa Barbara County, including the City of Goleta, has experienced long -term low vacancy rates, partly due to an ongoing housing shortage in the City and on the South Coast generally, resulting in less security and stability in the housing choices of residential tenants due to rapid rent increases or eviction without cause. Evictions and h ousing instability can lead to increased residential displacement and commute times, loss of community, interrupted education of children, financial strain, and temporary or prolonged homelessness. Procuring rental housing in the City or on the South Coast is difficult, particularly on short notice following eviction or whenever multiple households are evicted at the same time. This ordinance is necessary to protect the public health, safety, and general welfare by reducing the displacement of tenants in to a rental housing market which affords them few and expensive options.

8.19.020 Applicability.

This Chapter applies to all Rental Units except:

A. An Owner-occupied unit that is rented to a Tenant for less than one year.

B. A Rental Unit occupied by a Tenant under a sublease that has a term less than one year.

C. A Rental Unit where tenancy is an express condition of, or consideration for, employment under a written rental agreement or contract.

D. Transient and tourist hotel occupancy as defined in Civil Code Section 1940(b) , or Hotels and Motels as defined in Section

17.72.030 of the Goleta Municipal Code.

E. Housing accommodations in a nonprofit 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 11 Ordinance No.24-__ Tenant Protections Ordinance
22 of the Manual of Policies and Procedur es published by the State Department of Social Services.

F. Housing accommodations rented by a medical institution, which are then subleased to a patient or patient’s family.

G. Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.

H. Housing accommodations in which the Tenant shares bathroom or kitchen facilities with the Owner, who maintains their principal residence at the Rental Unit.

I. Single-family Owner-occupied residences, including both o f the following: (1) a residence in which the Owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit; or (2) a mobilehome.

J. 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 to reside there, and neithe r unit is an accessory dwelling unit or a junior accessory dwelling unit.

K. Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobilehome.

L. Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of extremely low, very low, low, moderate, or above-moderate income up to 200% area median income, as defined in Section 50093 of the Health and Safety Code or Section 17.73.010 of the Goleta Municipal Code.

M. Residential real property , including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:

1. The Owner is not any of the following:
i. A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
ii. A corporation.
iii. A limited liability company in which at least one
member is a corporation.
iv. Management of a mobilehome park, as defined in Civil Code 798.2.

2. The Tenants have been provided written notice that the residential property is exempt from this section using the following statement:

“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the Just Cause requirements of Section 1946.2 of
the Civil Code or Section 8.19 of the Goleta Municipal
12 Ordinance No.24-__ Tenant Protections Ordinance
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 in 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.”

i. For tenancies existing before the effective date of this Chapter, the notice required under this Subsection (2)
of this Section may, but is not required to, be provided in the rental agreement.
ii. For any tenancy commenced or renewed on or after
the effective date of this Chapter, th e notice required under this Subsection (2) must be provided in the rental agreement.
iii. Addition of a provision containing the notice required under Subsection (2) to any new or renewed rental
agreement or fixed -term lease constitutes a similar
provision for the purposes of Section 8.19.040(B)(5).

N. Dwelling units in a condominium, community apartment, planned development or stock cooperative, or in a limited equity stock cooperative as defined in the California Business and Professions Code.

O. Dwelling units acquired by the City of Goleta or any other governmental unit, agency, or authority and intended to be used for a public purpose.

P. Lawfully operated short-term rentals (for 30 days or less).

Q. This Chapter shall not apply to the extent it conflicts with the requirements of the Costa -Hawkins Rental Housing Act (California Civil Code § 1950.50 et seq.).

8.19.030 Definitions.

The following words and phrases, whenever used in this chapter, shall be construed as defined in this section:

A. “Early Tenant Alert Notice” means an additional written notice provided to a tenant at least 60 days prior to serving a no-fault Just Cause notice of Termination of Residential Tenancy described in Section 8.19.040(E).

B. “Intended Occupant ” means the Owner of the residential re al property or the Owner’s spouse, domestic partner, child, grandchild, parent, or grandparent, who intends to occupy the Rental Unit for a minimum of 12 continuous months as that person’s primary residence.
13 Ordinance No.24-__ Tenant Protections Ordinance
C. “Just Cause” means any of the permissible reasons to issue a notice to terminate residential tenancy, as further described in Sections

8.19.040(B) and 8.19.040(C).

D. “Landlord” means an owner , lessor, or sublessor, or the agent, representative, or successor of any of th e foregoing person s or entities who receives, or is entitled to receive, rent for the use and occupancy of any Rental Unit or portion thereof.

E. “Owner” means the owner of record for a Rental Unit.

F. “Percentage change in the cost of living” means the percenta ge change from April 1 of the prior year to April 1 of the current year in the regional Consumer Price Index for the region where the residential real property is located, as published by the United States Bureau of Labor Statistics. If a regional index is not available, the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations, shall apply.

G. “Qualified Tenant ” means a Tenant who has continuously and lawfully occupied a Rental Unit for 12 months or who otherwise qualifies as a Tenant meriting Just Cause eviction protection under Civil Code Section 1946.2, Subdivision (a).

H. “Rent” means the total consideration , including any bonus, benefit, or gratuity, charged or received by a Landlord in exchange for or connection with the use or occupancy of a Rental Unit and any separately charged amenities available to Tenants such as parking, storage, or other similar charges.

I. “Rent Increase” means any addition al rent charged to or paid by a Tenant for a Rental Unit.

J. “Rental Unit” means any dwelling unit in any real property located within the City , regardless of zoning status, including the land and buildings appurtenant thereto and all housing services, privileges, and facilities, that is rented or available for rent for residential use or occupancy (regardless of whether the unit is also used for other purposes).

K. “Residential Real Property” means any dwelling or unit that is intended for human habitation, including any dwelling or unit in a mobilehome park.

L. “Substantially Remodel ” or “Substantial Remodel” means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous ma terials, including lead -based paint, mold, or asbestos, in accordance with applicable federal, State, and local laws, that cannot be reasonably accomplished in a safe manner with the Tenant in place and that requires the Tenant to vacate the Rental Unit for at least 30 days. To qualify, the Substantial Remodel must be for the primary purpose of bringing the Rental Unit into compliance with applicable health and 14 Ordinance No.24-__ Tenant Protections Ordinance
safety codes. A Substantial Remodel does not include cosmetic improvements, including painting, decorating, minor repairs, routine maintenance, or other work that can be performed safely without having the Rental Unit vacated.

M. “Tenant” means any renter, tenant, subtenant, lessee, or sublessee, or person entitled by written or oral agreement to occupy a Rental Unit to the exclusion of others.

N. “Termination of Residential Tenancy ” or “Terminate a Residential Tenancy” means, for purposes of this Chapter only, a termination of residential tenancy, as described in California Civil Code Sections 1946 to 1946.2, inclusive.

8.19.040 Just Cause for Termination of Residential Tenancy.

A. Just Cause Required.

1. Any Termination of Residential Tenancy of a Qualified Tenant requires Just Cause, which must be stated in full in a written notice as required by this Chapter. No Landlord of a Rental Unit shall Terminate a Residential Tenancy of a Qualified Tenant without complying with the requirements of th is Chapter.

2. Just Cause includes at-fault Just Cause or no-fault Just Cause as defined in Subsections 8.19.040(B) and 8.19.040(C).

B. At-Fault Just Cause.

At-Fault Just Cause includes any of the following:

1. Default in the payment of Rent.

2. A breach of a materia l term of the lease, 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 lease after being issued a written notice to correct the violation.

3. Maintaining, committing, o r permitting the maintenance o r 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 l ease that terminat ed on or after January 1, 2020, or January 1, 2022 , if the lease is for a tenancy in a mobilehome, and , after a written request or demand from the Landlord, the Tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions , provided that those terms do not violate this section or any other provision of law.

6. Criminal activity by the Tenant on the Rental Unit, including any common areas, or any criminal activity or criminal threat, as defined in Subdivision (a) of Section 422 of the Penal 15 Ordinance No.24-__ Tenant Protections Ordinance
Code, on or off the Rental Unit premises, that is directed at the Landlord for the Rental Unit; provided that criminal activity or criminal threat directed at a Tenant who is a victim of domestic violence shall not be the basis for at-fault or no-fault Just Cause eviction of the Tenant who is a victim of domestic violence.

7. Assigning or subletting the Rental Unit in violatio n of the Tenant’s lease, 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 Rental Unit as authorized by Section 1101.5 and 1954 of the Civil Code, and Section 13113.7 and 1 7926.1 of the Health and Safety Code.

9. Using the Rental Unit 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, a gent, or 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 Rental Unit after providing the Landlord written notice as provided in Civil Code Section 1946 of the Tenant’s intention to terminate the hiring of the Rental Unit, or makes a written offer to surrender 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.

C. No-Fault Just Cause.

No-Fault Just Cause includes any of the following:

1. The Owner seeks in good faith to recover possession of the Rental Unit for use and occupancy by the Owner or the
Owner’s Intended Occupant.
i. For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause ( 1) shall apply only if the Tenant agrees, in
writing, to the Termination of Residential Tenancy, or if a provision of the lease allows the Owner to terminate
the lease , if the Owner, or the Intended Occupant,
unilaterally decide (s) to occupy the Rental Unit.

Addition of a provision allowing the Landlord to
terminate the lease as described in this clause to a new or renewed rental agreement or fixed -term lease
constitutes a similar provision for the purposes of
Section 8.19.040(B)(5).
16 Ordinance No.24-__ Tenant Protections Ordinance
ii. Subparagraph (1) does not apply if the Intended
Occupant occupies a Rental Unit on the property or if
a vacancy of a similar unit already exists at the
property.
iii. The written notice of Termination of Residential
Tenancy for a Just Cause pursuant to this
subparagraph shall contain the name or names and
relationship to the Owner of the Intended Occupant.

The written notice shall additionally include notification that the Tenant may request proof that the Intended
Occupant is an Owner or related to the Owner as
defined herein. The proof shall be provided upon
request and may include an operating agreement and
other non-public documents.
iv. Subparagraph (1) applies only if the Owner or Intended Occupant moves into the Rental Unit within 90 days
after the Tenant vacates and occupies the Rental Unit
as a primary residence for at least 12 consecutive
months.
a. If the Intended Occupant fails to occupy the
Rental Unit within 90 days after the Tenant
vacates or fails to occupy the Rental Unit as
their primary residence for at least 12
consecutive months, the Owner shall offer the
unit to the Tenant who vacated it at the same
rent a nd lease terms in effect at the time the
Tenant vacated and shall reimburse the Tenant
for reasonable moving expenses incurred in
excess of any relocation assistance that was
paid to the Tenant in connection with the written
notice.
b. If the Intended Occupant moves into the Rental
Unit within 90 days after the Tenant vacates but
dies before having occupied the Rental Unit as
a primary residence for 12 months, as required
by subclause (iv), this will not be considered a
failure to comply with this section or a material
violation of this section by the Owner as
provided in subdivision 8.19.080.

2. The Owner seeks in good faith to recover possession to permanently withdraw the Rental Unit from the rental market in accordance with applicable state law.

3. The Owner seeks in good faith to comply with any of the following:
17 Ordinance No.24-__ Tenant Protections Ordinance
i. An order issued by a government agency or court
relating to habitability that necessitates vacating the Rental Unit.
ii. An order issued by a government agency or court to
vacate the Rental Unit.
iii. A local ordinance that expressly requires vacating the Rental Unit.

4. The Owner seeks in good faith to recover possession to totally demolish or to Substantially Remodel the Rental Unit,
provided the Owner has done all of the following:
i. Served the tenants with an Early Tenant Alert Notice advising the tenants of the Owner’s intent to serve a
notice of T ermination of Residential T enancy in
reliance on this subsection.
ii. Obtained all permits necessary to carry out the
demolition or Substantial Remodel from applicab le
governmental agencies.
iii. Given the Tenants an appropriate notice of
Termination of Residential Tenancy as required by
Section 8.19.040(E) , advising the Tenants of the
Owner’s intent to terminate the tenancy in reliance on
this subsection, which must include all of the following information:
a. A statement informing the tenant of the Owner’s
intent to demolish the Rental Unit or
Substantially Remodel the Rental Unit and
providing the reason why the work cannot be
reasonably accomplished in a safe manner with
the Tenant in place and why the work requires
the Tenant to vacate the Rental Unit for at least
30 days.
b. 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 Owner at
the rental rate that was in effect at the time you
vacated. Yo u 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
18 Ordinance No.24-__ Tenant Protections Ordinance
thirty (30) days of notifying the Owner of your
acceptance of the offer.”

c. 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:

I. A copy of the permit or permits required
to undertake the substantial remodel or
demolition.

II. Only if a notice is issued for the
abatement of hazardous materials,
including lead -based paint, mold, or
asbestos, in accordance with applicable
federal, state, and local laws, and if the
remodel does not require any permit, a
copy of the signed contract with the
contractor hired by the Owner to
complete the Substantial Remodel,
which reasonably details the work that
will be undertaken to abate the
hazardous materials.
d. A notification that, in accordance with Section

8.19.060, if the Tenant is interested in
reoccupying the Rental Unit following the
Substantial Remodel, the Tenant shall inform
the Landlord of the Tenant’s interest in
reoccupying the Rental Unit fol lowing the
Substantial Remodel and provide to the
Landlord the Tenant’s address, telephone
number, and email address.
iv. Filed with the Planning and Environmental Review
Department, within five (5) calendar days after service of the notice of Termination of Residential Tenancy, a
copy of the documents served on the Tenant and proof
of such service, signed by the Owner under penalty of
perjury, on the Tenant. The Owner shall maintain proof
of service to the City as evidence that the Owner has
complied with this section. The Owner’s failure to
provide proof of service shall create a rebuttable
presumption that the Owner did not comply with this
section.

D. Relocation Assistance Payments Required.
19 Ordinance No.24-__ Tenant Protections Ordinance

1. The Landlord of a Rental Unit who issues a notice of Termination of Residential Tenancy based upon no-fault Just Cause shall , within 15 calendar days after service of the notice, make a relocation assistance payment to each
Qualified Tenant in an amount established by resolution of the City Council or two months’ Rent that was in effect when the Landlord issued the notice of Termination of Residential Tenancy, whichever is greater.

2. When more than one Qualified Tenant occupies a Rental Unit, the Landlord shall divide the relocation assistance payment equally among the Qualified Tenants and make the divided relocation assistance payment to each Qualified Tenant.

3. The Landlord of the Rental Unit may elect to make one-half of the relocation assistance payment required by this Chapter to each Qualified Tenant within 15 calendar days after service of the notice of Termination of Residential Tenancy , and the remaining one half of the relocation assistance payment to each Qualified Tenant no later than the time that Qualified Tenant surrenders possession of the Rental Unit.

4. If a Qualified Tenant fails to vacate after the expiration of the notice of Termination of Residential Tenancy, the actual amount of any relocation assistance paid to the Qualified Tenant shall be recoverable as damages from that Qualified Tenant.

5. A Qualified Tenant is not entitled to relocation assistance , if any government agency or court determines that the tenant is at fault for the condition or conditions triggering an eviction order or need to vacate for reasons listed in but not limited to those in Section 8.19.040(B).

6. Any relocation assistance or rent waiver required by State law shall be credited against the relocation assistance payment required by this Chapter, but only to the extent such credit is required by State law.

E. Notice Requirements.

1. For a no-fault Just Cause Termination of Residential Tenancy, at least 60 days before the Landlord serves a notice of Termination of Residential Tenancy, the Landlord must serve the tenant with an Early Tenant Alert Notice stating the Landlord’s intent to issue a notice of Termination of
Residential Tenancy.

2. The written notice to terminate tenancy shall state in full the facts and circumstances constituting the at -fault Just Cause or no-fault Just Cause for Termination of Residential Tenancy.

3. A written notice of Termination of Residential Tenancy based upon no-fault Just Cause must be provided at least 60 days 20 Ordinance No.24-__ Tenant Protections Ordinance
before the date of termination and must inform each Qualified Tenant of their right to and the amount of a relocation assistance payment required by this Chapter.

4. Before a Landlord of a Rental Unit issues a notice of Termination of Residential Tenancy for Just Cause that is a curable lease violation, the Owner shall first give notice of the violation to each Qualified Tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three -day notice to quit without an opportunity to cur e may thereafter be served in accordance with California law to terminate the tenancy.

8.19.050 Mandatory Offer of Residential Lease.

A. If a Tenant or prospective Tenant wishes to rent a Rental Unit from a Landlord and if the Landlord wishes to rent the Rental Unit to the Tenant or prospective Tenant, the Landlord must offer to the Tenant or prospective Tenant a written lease which has a minimum term of one year. The offer must be made in writing. The Landlord’s signing of a lease which has a minimum term of one year shall be considered an offer in writing.

B. If the Tenant or prospective Tenant accepts the offer of a written lease which has a minimum term of one year, this acceptance must be in writing, dated, and signed by the Tenant. The Tenant or prospective Tenant’s signing of a lease signed by the Landlord, which has a minimum term of one year , will be considered an acceptance. The Tenant shall bear the burden of proving that they accepted the lease offer.

C. If the Tenant or prospective Tenant rejects the o ffer for a written lease which has a minimum term of one year, this rejection must be in writing and signed by the Tenant on a dated single -page form which is either:

1. made available through the City’s website; or

2. prepared by the Landlord or Tenant to commu nicate the rejection.

On or after the date the rejection is signed and deliver ed, the Landlord and Tenant or prospective Tenant may then enter into an agreement that provides for a rental term of less than one year. The Landlord shall have the burden of proving that the lease offer was made to the Tenant and whether the Tenant accepted or rejected the offer.

D. If the Landlord and Tenant enter into a written lease which has a minimum term of one year, such lease must set the Rent for the Rental Unit at a rate or rates certain , and these rates shall not be otherwise modified during the initial term of such lease. 21 Ordinance No.24-__ Tenant Protections Ordinance
E. If both the Landlord and the Tenant wish to continue the rental relationship, upon the expiration of the initial leas e which has a minimum term of one year, a lease shall be offered again in accordance with the procedures of this section.

1. Leases with a term of one year shall be offered annually.

2. Leases with a term longer than one year shall be renewable at the expiration of each lease period for a minimum term of one year.

3. A Landlord shall offer annually a written lease with a minimum term of one year to a Tenant who rejected an initial offer of a written lease with a minimum term of one year but who has rented a unit from the Landlord for a period of at least twelve months.

F. If the Landlord does not wish to continue the rental relationship, then at the time the Landlord delivers notice of such Termination of Residential Tenancy , the Tenant shall be offered a one -session conciliation meeting with the Landlord using a publicly funded housing mediation service, if available, or a qualified mediator of mutual choice and provided at mutual expense. The results of any conciliation meeting shall not be binding unless agreed to by the Landlord and Tenant. A Tenant need not participate in a conciliation meeting. The remedies available under this chapter shall not be affected by a Tenant’s inability or refusal to participate in conciliation.

G. If a Rental Unit is rented subject to a written lease, when the lease in effect for such a unit expires, the ordinance codified in this Section shall then apply . If a Rental U nit is rented without a written lease, within ninety days after the effective date of this Chapter, the Landlord shall offer a written lease to the Tenant in accordance with this Section.

8.19.060 Mandatory Right of First Refusal.

A. For Termination of Residential Tenancy pursuant to Section

8.19.040(C)(4), the Landlord shall provide the Tenant of the unit at the time of termination a written Right of First Refusal to re-occupy the Rental Unit when it is ready to be occupied , for up to two years following the date the Tenant vacated the Rental Unit, provided the following:

1. The Tenant must provide to the Landlord current contact information, including address, telephone number, and email address, at which to receive a notification related to the Right of First Refusal to re-occupy the unit.

2. When the Rental Unit is ready for occupancy, the Landlord must make an offer to the Tenant to return and rent the Rental Unit under a new rental agreement.

B. The written offer to re -occupy the unit shall include the rental price, the proposed terms, and any security deposit required. Where 22 Ordinance No.24-__ Tenant Protections Ordinance
applicable, the lease term offered shall be in accordance with Section

8.19.050.

C. [PLACEHOLDER]
D. The Tenant must return to the Landlord an affirmative written acceptance of the offer to return to and rent the unit within thirty (30) days of receipt of the offer. If the Tenant declines the offer or the offer expires, the Landlord may lease the Rental Unit to any applicant.

8.19.070 Additional Tenant Protections.

A. The City Manager may adopt administrative procedures and regulations to implement the provisions of this Chapter.

B. It is illegal for a Landlord to retaliate against a Tenant for lawfully and peaceably exercising their legal rights, including but not limited to the right to file a complaint with Code Compliance staff at the City or other responsible agency.

C. It is a violation of this Section for a Landlord to willfully engage in, aid, or incite a course of conduct that serves no lawful purpose, and which adversely affects a Tenant’s use or enjoyment of a Rental Unit, a housing opportunity, or housing -related services or facilities, including but not limited to the following:

1. Reducing or eliminating housing services required by a lease, contract, or law, including the elimination of parking if provided in the Tenant’s lease or contract, or access to common are as or amenities, except as necessary to
comply with a court order or local or state law, or to lawfully create an accessory dwelling unit or additional housing without violating a lease or contract with a Tenant.

2. Failing to perform and timely complete nece ssary repairs and maintenance required by local or state law.

3. Failing to exercise due diligence in completing repairs and maintenance once undertaken or failing to follow
appropriate industry repair, containment or remediation protocols designed to minimiz e exposure to noise, dust, lead paint, mold, asbestos, or other building materials with potentially harmful health impacts.

4. Abusing the Landlord’s right of access into a Rental Unit as established and limited by California Civil Code Section 1954, includin g entering or photographing portions of a rental unit that are beyond the scope of lawful entry or inspection.

5. Threatening a Tenant, by word or gesture, with physical harm.

6. Misrepresenting to a Tenant that the Tenant is required to vacate a Rental Unit or enticing a Tenant to vacate a
Rental Unit through intentional misrepresentation or the concealment or omission of a material fact. This includes 23 Ordinance No.24-__ Tenant Protections Ordinance
misrepresenting a Tenant’s rights under Chapters 8.08 or

8.19 of this Code.

7. Offering payments or other induceme nts to a Tenant to vacate more than once in any six -month period, after the Tenant has notified the Landlord in writing that the Tenant does not desire to receive further offers of payments or other inducements to vacate.

8. Threatening to report a Tenant or other person known to the Landlord to be associated with a Tenant to any local, state, or federal agency on the basis of their perceived or actual immigration status. The prohibition shall not be construed as preventing communication with such
agencies regarding an alleged immigration violation.

9. Inquiring as to the immigration or citizenship status of a Tenant, prospective Tenant, occupant, or prospective
occupant of a Rental Unit, or requiring any of these people to make any statement, representation, or certification concerning their immigration or citizenship status.

10. Refusing to acknowledge or accept receipt of lawful rent payments as set forth in a lease agreement or as
established by the usual practices of the parties or
applicable law.

11. Engaging in act ivity prohibited by federal, state, or local housing antidiscrimination laws.

12. Retaliating, threatening, or interfering with tenant organizing activities, including forming or participating in tenant associations and unions.

13. Retaliating, threatening, or interfering with a Tenant’s right to petition the government for redress of grievances.

14. Interfering with a Tenant's right to privacy. This includes, but is not limited to: video or audio recording that captures the interior of a Tenant's bedroom, bathroom, ch anging room, fitting room, dressing room, or the interior of any other area in which the occupant has a reasonable
expectation of privacy with the intent to invade the privacy of a person or persons inside, entering or photographing portions of a Rental Un it that are beyond the scope of a lawful entry or inspection, unreasonable inquiry into a Tenant's relationship status or criminal history, or
unreasonable restrictions on or inquiry into overnight
guests.

D. A Landlord, in the course of the leasing or offering to lease a Rental Unit, is prohibited from requesting information that violates a Tenant's right to privacy, including but not limited to residence or citizenship status or social security number, except as required by law or, in the case of a social se curity number, for the purpose of 24 Ordinance No.24-__ Tenant Protections Ordinance
obtaining information for the qualifications for a tenancy, provided the Landlord does not release such information except as required or authorized by law. A Landlord shall accept equivalent alternatives to information or documentation that does not concern immigration or citizenship status, e.g., an Individual Taxpayer Identification Number (ITIN).

E. A Landlord is prohibited from retaliating against a Tenant because of the Tenant's exercise of rights under Chapters 8.08 or 8.19 of this Code, state or federal law, or other applicable regulations. This includes but is not limited to the right to file a complaint with Code Compliance staff at the City or other responsible agency.

F. Nothing in this Section shall be construed as to prevent a Landlord from lawfully exercising the Landlord’s rights under Chapters 8.08 or

8.19 of this Code or applicable law.

G. Any provision of a lease or rental housing agreement that purports to waive any provision of this Chapter is void as against public policy.

8.19.080 Remedies.

A. Failure to comply with any provision of this Chapter shall render void a notice of Termination of Residential Tenancy, and any other notice by a Landlord to terminate a residential tenancy as described in California Civil Code Sections 1946 to 1946.2.

B. Failure to include all required information in the notices required by this Chapter shall be a defense to any unlawful detainer action.

C. Failure of a Landlord to comply with any of the provisions of this Chapter shall provide the Tenant with an affirmative defense in any legal action brought by the Landlord to collect Rent Increases made in violation of this Chapter.

D. Failure of a Landlord to plead and prove compliance with any of the provisions of this Chapter shall provide the Tenant a defense in any action to recover possession of the Rental Unit.

E. Any violation of this Chapter shall entitle the aggrieved Tenant to:

1. Actual damages according to proof.

2. Attorneys’ fees and costs.

3. Upon a showing that the Landlord has acted willfully or with oppression, fraud, or malice, up to three times the actual damages. An award may also be entered for punitive
damages for the benefit of the Tenant against the Landlord.

4. A Tenant may seek injunctive relief on behalf of Tenant or on behalf of other affected Tenants to enjoin a Landlord’s violation of this Chapter.

5. In case of any violation of Section 8.19.070(B), an aggrieved Tenant may institute civil proceedings against a landlord for alleged violations of this Chapter, regardless of whether the Rental Unit remains occupied or has been vacated due to the alleged violation(s). A tenant may be awarded actual
25 Ordinance No.24-__ Tenant Protections Ordinance
damages or a minimum amount of $1,000 per violation,
whichever is greater, and the court may impose civil penalties up to $10,000 per violation, in addition to any other civil remedies authorized by law.

F. Remedies provided in this Section are in addition to any other existing legal remedies and not intended to be exclusive.

G. The City Attorney is authorized to enforce this Chapter through administrative, civil, or criminal action. The City Attorney is further authorized to bring actions for injunctive relief on behalf of the City.

The City Attorney shall seek recovery of cost s, expenses, and attorneys’ fees as allowed by law.

SECTION 4. Severability.

If any section, s ubsection, 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 affec t 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, subsectio n, sentence, clause, or phrase be declared invalid.

SECTION 5. Certification of City Clerk.

The City Clerk shall certify to the adoption of this ordinance and, within 15 days after its adoption, shall cause it to be published in accordance with California Government Code section 36933.

SECTION 6. Effective Date and Termination.

This Ordinance shall take effect on the 31 st day following adoption by the City Council.

26 Ordinance No.24-__ Tenant Protections Ordinance
INTRODUCED ON the ___ day of ________, 2024.

PASSED, APPROVED, AND ADOPTED this ________day of ______ 2024.

_________________________

PAULA PEROTTE
MAYOR

ATTEST: APPROVED AS TO FORM:

__________________________ _________________________
DEBORAH S. LOPEZ MEGAN GARIBALDI

CITY CLERK CITY ATTORNEY
27 Ordinance No.24-__ Tenant Protections Ordinance

STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )

I, DEBORAH S. LOPEZ , City Clerk of the City of Goleta, California, do hereby certify that the foregoing Ordinance No. 24-__ was introduced on _______, and adopted at a regular meeting of the City Council of the City of Goleta, California, held on the _______, by the following roll-call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

(SEAL)

_________________________
DEBORAH S. LOPEZ

CITY CLERK

28 Attachment 2

Revisions in Strike-through/Underline for Ordinance No. 24-__, entitled “An Ordinance of the City Council of the City of Goleta, California, A mending Chapter 8.19, Entitled Tenant Protections, o f Title 8, Health and Safety, of the Goleta Municipal Code, and Determining the Ordinance to be Exempt from CEQA”
29 Ordinance No.24-__ Tenant Protections Ordinance
ORDINANCE NO. 24-__

AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF GOLETA, CALIFORNIA,
AMENDING CHAPTER 8.19, ENTITLED
TENANT PROTECTION S, OF TITLE 8,

HEALTH AND SAFETY, OF THE GOLETA

MUNICIPAL CODE, AND DETERMINING THE

ORDINANCE TO BE EXEMPT FROM CEQA

WHEREAS decent, safe, and sanitary housing is a human necessity and right; and

WHEREAS there is a shortage of housing units on the South Coast of Santa Barbara County (the “County”) and in the City of Goleta (the “City” or “Goleta”), particularly for households in the moderate- and lower-income categories; and

WHEREAS, according to the most re cent data from the US Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy (CHAS) based on the 2016-2020 American Community Survey (ACS) data, 48% of renter households in the City experience a cost burden of paying more than 30% of their income toward monthly housing costs; and

WHEREAS 71% of the cost-burdened renter households in the City are in the lower-income categories, earning less than 80% of area median income; and

WHEREAS, according to the City of Santa Barbara’s 2023 Rent Survey for the South Coast, the medi an advertised rental rate for a two- bedroom apartment was $3,981; and

WHEREAS the vacancy rate is less than 1%, according to 2017- 2021 ACS data, making it difficult and expensive to find a housing unit; and

WHEREAS eviction creates particular hardships for individuals and households of limited means, due to the shortage of housing and intense competition for such housing units in Goleta and the County more generally; and

WHEREAS housing instability threatens the public peace, health, and safety as eviction from one’ s home can lead to homelessness, increased residential mobility, loss of community, strain on household finances due to the necessity of paying rental application fees and security 30 Ordinance No.24-__ Tenant Protections Ordinance
deposits, increased stress and anxiety, longer commute times and adverse traffic impacts if displaced workers cannot find affordable housing within the city in which they work, and disrupti on of the education of children in the home; and

WHEREAS recent high profile head lines highlighting mass termination of tenancies at apartment complexes, sometimes comprising hundreds of units each, in Isla Vi sta within the County and nearby Los Angeles, have drawn attention to an urgent need to protect tenants at a time of scarce rental inventory and low va cancy rates in the City and County; and

WHEREAS the California State Legislature passed the Tenant Protection Act of 2019 (“AB 1482”), codified in part in California Civil Code Section 1946.2 (“Section 1946.2”), which became effective by its own terms on January 1, 2020 and, with certain exceptions, established statewide just cause eviction protections and rent st abilization for residential tenants and authorized cities to enact more protective local regulations; and

WHEREAS, in October 2023, the California State Legislature adopted Senate Bill 567 (“SB 56 7”), amending sections of California Civil Code Section 1946.2 and Section 1947.12 (“Section 1947.12”) and adding new noticing requirement s and enforcement mechanisms to the Tenant Protection Act of 2019, which is schedul ed to take effect on April 1, 2024; and

WHEREAS the City wishes to provide stronger and more immediate tenant protections citywide than what is provided in state law, including AB 1482 and SB 567, and enact loca l regulations to pr otect renters from displacement and homelessness and thereby promote housing and neighborhood stability; and

WHEREAS City regulations are intended to provide additional tenant protections beyond state law requi rements by making permanent the temporary protections provided under AB 1482, which would otherwise expire in 2030; and

WHEREAS, absent City regulations, owners may terminate the tenancy of residential t enants under state law, in cluding AB 1482, without oversight by the City, and the City wishes to exercise greater oversight over such terminations; and

WHEREAS City regulations enacted by this Ordinance are more protective than the provisions of AB 1482 because the City regulations provide additional protections and specific requirements for the exercise of no-fault just cause terminations of residential tenancies; and 31 Ordinance No.24-__ Tenant Protections Ordinance

WHEREAS the City Council finds and determines that regulating the relationship between residential landlords and tenants will increase certainty and fairness in the residential rental market, and be consistent with the stricter tenant protections that exist in neighboring localities; and

WHEREAS said tenant protection measures are in line with the City’s General Plan policies that support affo rdable housing, including but not limited to HE 1.4 (Preserve Mobile Home Parks and Facilitate Mobile Home Park Ownership Opportunities), HE 1.5 (Limit Conversion of Rental Housing to Condominiums and Housing Units to Nonresidential Use), and HE 3.1 (Affirmatively Further Fair Housing Opportunities); and

WHEREAS said tenant protection measures are also consistent with existing City regulations aimed at pr eserving rental stock and affordable housing, such as Goleta Municipal Code (GMC) Chapter 17.29 Demolition, Relocation, and Loss of Dwelling Units.

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

SECTION 1. Recitals

The City Council hereby finds and dete rmines that the foregoing recitals, which are incorporated herein by reference, are true and correct.

SECTION 2. Environmental Assessment

Pursuant to CEQA Guidelines Sect ions 15061(b)(3) and 15378(b)(5), the proposed Ordinance does not qualify as a "project" for the purposes of CEQA, because the Ordinance does not result in direct or indirect physical changes in the environment. The Ordi nance proposed does not, by itself, have the potential to cause a significant effect on the environment because the tenant protections enacted herein do not require or authorize any physical change to the environment. As such, the proposed Ordinance is exempt from CEQA review.

SECTION 3. Tenant Protections

Chapter 8.19, entitled Tenant Protections, of Title 8 of the Goleta Municipal Code, Health and Safety, is replaced to read in its entirety:

32 Ordinance No.24-__ Tenant Protections Ordinance
Chapter 8.19 Tenant Protections

Sections:

8.19.010 Purpose.

8.19.020 Applicability.

8.19.030 Definitions.

8.19.040 Just Cause for Termi nation of Residential Tenancy.

8.19.050 Mandatory Offer of Residential Lease.

8.19.060 Mandatory Right of First Refusal.

8.19.070 Additional Tenant Protections.

8.19.080 Remedies.

8.19.010 Purpose.

The residential rental housing market on the South Coast of Santa Barbara County, including the Cit y of Goleta, has experienced long-term low vacancy rates, partly due to an ongoing housing shortage in the City and on the South Coast generally, resulting in less security and stability in the housing choices of residential tenants due to rapid rent increases or eviction without cause. Evictions and housing instability can lead to increased residential displacement and commu te times, loss of community, interrupted education of children, financial strain, and temporary or prolonged homelessness. Pr ocuring rental housing in the City or on the South Coast is difficult, particularly on short notice following eviction or whenever multiple households are evicted at the same time. This ordinance is necessary to protect the public health, safety, and general welfare by reducing the displacement of tenants into a rental housing market which affords them few and expensive options.

8.19.020 Applicability.

This Chapter applies to all Rental Units except:

A. An Owner-occupied unit that is rented to a Tenant for less than one year.

B. A Rental Unit occupied by a Tenant under a sublease that has a term less than one year.

C. A Rental Unit where tenancy is an express condition of, or consideration for, employment under a written rent al agreement or contract.

D. Transient and tourist hotel occupancy as defined in Civil Code Section 1940(b), or Hotels and Motels as defined in Section

17.72.030 of the Goleta Municipal Code.

E. Housing accommodations in a nonprofit 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 33 Ordinance No.24-__ Tenant Protections Ordinance
22 of the Manual of Policies and Procedures published by the State Department of Social Services.

F. Housing accommodations rented by a medical institution, which are then subleased to a patient or patient’s family.

G. Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.

H. Housing accommodations in whic h the Tenant shares bathroom or kitchen facilities with the Owner, who maintains their principal residence at the Rental Unit.

I. Single-family Owner-occupied residences, including both of the following: (1) a residence in wh ich the Owner-occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or a junior accessory dwelling unit; or (2) a mobilehome.

J. A property containing two separate dwelling units within a single structure in which the Owner occ upied one of the units as the Owner’s principal place of residence at the beginning of the tenancy, so long as the Owner continues to reside there, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.

K. Housing that has been issued a ce rtificate of occupancy within the previous 15 years, unless the housing is a mobilehome.

L. Housing restricted by deed, regula tory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of extremely low, very low, low, moderate, or above-moderate income up to 200% area median income, as defined in Section 50093 of the Health and Safety Code or Section 17.73.010 of the Goleta Municipal Code.

M. Residential real property, including a mobilehome, that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:

1. The Owner is not any of the following:
i. A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
ii. A corporation.
iii. A limited liability company in which at least one
member is a corporation.
iv. Management of a mobilehome park, as defined in Civil Code 798.2.

2. The Tenants have been provi ded written notice that the residential property is exempt from this section using the following statement:

“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the Just Cause requirements of Section 1946.2 of
the Civil Code or Section 8.19 of the Goleta Municipal
34 Ordinance No.24-__ Tenant Protections Ordinance
Code. This property meet s 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 in 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.”

i. For tenancies existing before the effective date of this Chapter, the notice required under this Subsection (2)
of this Section may, but is not required to, be provided in the rental agreement.
ii. For any tenancy commenced or renewed on or after
the effective date of this Chapter, the notice required under this Subsection (2) must be provided in the rental agreement.
iii. Addition of a provision containing the notice required under Subsection (2) to any new or renewed rental
agreement or fixed-term lease constitutes a similar
provision for the purposes of Section 8.19.040(B)(5).

N. Dwelling units in a condominiu m, community apar tment, planned development or stock cooperative, or in a limited equity stock cooperative as defined in the Cali fornia Business and Professions Code.

O. Dwelling units acquired by the City of Goleta or any other governmental unit, agency, or authority and intended to be used for a public purpose.

P. Lawfully operated short-term rentals (for 30 days or less).

P.Q. This Chapter shall not apply to th e extent it conflicts with the requirements of the Costa-Hawkins Rental Housing Act (California Civil Code § 1950.50 et seq.).

8.19.030 Definitions.

The following words and phrases, whenever used in this chapter, shall be construed as defined in this section:

A. “Early Tenant Alert Notice” means an additional written notice provided to a tenant at least 60 days prior to serving a no-fault Just Cause notice of Termination of Residential Tenancy described in Section 8.19.040(E).

A.B. “Intended Occupant” means the Owner of the residential real property or the Owner’s spouse, domestic partner, child, grandchild, parent, or grandparent, who intends to occupy the Rental Unit for a minimum of 12 continuous mont hs as that person’s primary residence.
35 Ordinance No.24-__ Tenant Protections Ordinance
B.C. “Just Cause” means any of the permissible reasons to issue a notice to terminate residential tenancy, as further described in Sections 8.19.040(B) and 8.19.040(C).

C.D. “Landlord” means an owner, lesso r, or sublessor, or the agent, representative, or successor of any of the foregoing persons or entities who receives, or is entitled to receive, rent for the use and occupancy of any Rental Unit or portion thereof.

D.E. “Owner” means the owner of record for a Rental Unit.

E.F. “Percentage change in the co st of living” means the percentage change from April 1 of t he prior year to April 1 of the current year in the r egional Consumer Price Index for the region where the residential real property is located, as published by the United States Bureau of Labor Statistics. If a regional index is not available, the California Consum er Price Index for All Urban Consumers for all items, as det ermined by the Department of Industrial Relations, shall apply.

F.G. “Qualified Tenant” means a Tenant who has continuously and lawfully occupied a R ental Unit for 12 months or who otherwise qualifies as a Tenant meriting Just Cause eviction protection under Civil Code Section 1946.2, Subdivision (a).

G.H. “Rent” means the total consider ation, including any bonus, benefit, or gratuity, charged or re ceived by a Landlord in exchange for or connection with the use or occupancy of a Rental Unit and any separately charged amenities available to Tenants such as parking, storage, or other similar charges.

H.I. “Rent Increase” means any additional rent charged to or paid by a Tenant for a Rental Unit.

I.J. “Rental Unit” means any dwelling unit in any real property located within the City, regardless of zoni ng status, including the land and buildings appurtenant t hereto and all housing services, privileges, and facilities, that is rented or available for rent for residential use or occupancy (regardless of whether t he unit is also used for other purposes).

J.K. “Residential Real Property” means any dwelling or unit that is intended for human habitation, includ ing any dwelling or unit in a mobilehome park.

K.L. “Substantially Remodel” or “Substantial Remodel” means the replacement or substantial modifica tion of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatem ent of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, State, and local laws, that cannot be reasonably accomplished in a safe manner wit h the Tenant in place and that requires the Tenant to vacate the Rental Unit for at least 30 days. To qualify, the Substantial Remodel must be for the primary purpose of bringing the Rental Unit into co mpliance with applicable health and 36 Ordinance No.24-__ Tenant Protections Ordinance
safety codes. A Substantial Re model does not include cosmetic improvements, including painting, decorating, minor repairs, routine maintenance, or other work that can be performed safely without having the Rental Unit vacated.

L.M. “Tenant” means any renter, t enant, subtenant, lessee, or sublessee, or person entitled by written or oral agreement to occupy a Rental Unit to the exclusion of others.

M.N. “Termination of Residential Tenancy” or “Terminate a Residential Tenancy” means, for pur poses of this Chapter only, a termination of residential tenancy, as described in California Civil Code Sections 1946 to 1946.2, inclusive.

8.19.040 Just Cause for Termination of Residential Tenancy.

A. Just Cause Required.

1. Any Termination of Residentia l Tenancy of a Qualified Tenant requires Just Cause, which must be stated in full in a written notice as required by this Chapter. No Landlord of a Rental Unit shall Terminate a Resident ial Tenancy of a Qualified Tenant without complying with the requirements of this
Chapter.

2. Just Cause includes at-fault Just Cause or no-fault Just Cause as defined in Subsections 8.19.040(B) and 8.19.040(C).

B. At-Fault Just Cause.

At-Fault Just Cause includes any of the following:

1. Default in the payment of Rent.

2. A breach of a material term of the lease, 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 lease 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 descri bed in paragraph (4) of Section 1161 of the Code of Civil Procedure.

5. The Tenant had a written leas e that terminated on or after January 1, 2020, or January 1, 2022, if the lease is for a tenancy in a mobilehome, and, after a written request or demand from the Landlord, the Tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with simi lar provisions, provided that those terms do not violate this section or any other provision of law.

6. Criminal activity by the Tenant on the Rental Unit, including any common areas, or any criminal activity or criminal threat, as defined in Subdivision (a) of Section 422 of the Penal 37 Ordinance No.24-__ Tenant Protections Ordinance
Code, on or off the Rental Unit premises, that is directed at the Landlord for the Rental Unit; provided that criminal activity or criminal threat directed at a Tenant who is a victim of domestic violence shall not be the basis for at-fault or no-fault Just Cause eviction of the Tenant who is a victim of domestic violence.

7. Assigning or subletting the Re ntal Unit in violation of the Tenant’s lease, 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 Rental Unit as authorized by Sect ion 1101.5 and 1954 of the Civil Code, and Section 13113.7 an d 17926.1 of the Health and Safety Code.

9. Using the Rental Unit 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, agen t, or 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 Rental Unit after providing the Landlord written notice as provided in Civil Code Section 1946 of the Tenant’s intention to terminate the hiring of the Rental Unit, or makes a written offer to surrender that is accepted in writing by t he 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.

C. No-Fault Just Cause.

No-Fault Just Cause includes any of the following:

1. The Owner seeks in good faith to recover possession of the Rental Unit for use and occu pancy by the Owner or the
Owner’s Intended Occupant.
i. For leases entered into on or after July 1, 2020, or July 1, 2022, if the lease is for a tenancy in a mobilehome, clause (1) shall apply only if the Tenant agrees, in
writing, to the Termination of Residential Tenancy, or if a provision of the lease allows the Owner to terminate
the lease, if the Owner , or the Intended Occupant,
unilaterally decide(s) to occupy the Rental Unit.

Addition of a provision allowing the Landlord to
terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease
constitutes a similar provision for the purposes of
Section 8.19.040(B)(5).
38 Ordinance No.24-__ Tenant Protections Ordinance
ii. Subparagraph (1) does not apply if the Intended
Occupant occupies a Rental Unit on the property or if
a vacancy of a similar unit already exists at the
property.
iii. The written notice of Termination of Residential
Tenancy for a Just Cause pursuant to this
subparagraph shall contain the name or names and
relationship to the Owner of the Intended Occupant.

The written notice shall additionally include notification that the Tenant may reques t proof that the Intended
Occupant is an Owner or related to the Owner as
defined herein. The proof shall be provided upon
request and may include an operating agreement and
other non-public documents.
iv. Subparagraph (1) applies only if the Owner or Intended Occupant moves into the Rental Unit within 90 days
after the Tenant vacates and occupies the Rental Unit
as a primary residence for at least 12 consecutive
months.
a. If the Intended Occupant fails to occupy the
Rental Unit within 90 days after the Tenant
vacates or fails to occ upy the Rental Unit as
their primary residence for at least 12
consecutive months, the Owner shall offer the
unit to the Tenant who va cated it at the same
rent and lease terms in e ffect at the time the
Tenant vacated and shall reimburse the Tenant
for reasonable moving expenses incurred in
excess of any relocation assistance that was
paid to the Tenant in connection with the written
notice.
b. If the Intended Occupant moves into the Rental
Unit within 90 days after the Tenant vacates but
dies before having occupied the Rental Unit as
a primary residence for 12 months, as required
by subclause (iv), this will not be considered a
failure to comply with this section or a material
violation of this sect ion by the Owner as
provided in subdivision 8.19.080.

2. The Owner seeks in good faith to recover possession to permanently withdraw the Rental Un it from the rental market in accordance with applicable state law.

3. The Owner seeks in good faith to comply with any of the following:
39 Ordinance No.24-__ Tenant Protections Ordinance
i. An order issued by a government agency or court
relating to habitability that necessitates vacating the Rental Unit.
ii. An order issued by a gov ernment agency or court to vacate the Rental Unit.
iii. A local ordinance that expressly requires vacating the Rental Unit.

4. The Owner seeks in good faith to recover possession to totally demolish or to Substantially Remodel the Rental Unit,
provided the Owner has done all of the following:
i. Served the tenants with an Early Tenant Alert Notice advising the tenants of the Owner’s intent to serve a
notice of Termination of Residential Tenancy in
reliance on this subsection.
i.ii. Obtained all permits necessary to carry out the
demolition or Substantial Remodel from applicable
governmental agencies.
ii.iii. Given the Tenants an appropriate notice of
Termination of Residential Tenancy as required by
Section 8.19.040(E), advising the Tenants of the
Owner’s intent to terminate the tenancy in reliance on
this subsection, which must include all of the following information:
a. A statement informing t he tenant of the Owner’s
intent to demolish the Rental Unit or
Substantially Remodel the Rental Unit and
providing the reason why the work cannot be
reasonably accomplished in a safe manner with
the Tenant in place and why the work requires
the Tenant to vacate the Rental Unit for at least
30 days.
b. The following statement:

"If the Substantial Rem odel 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 Owner at
the rental rate that was in effect at the time you
vacated. You must notify the Landlord within
thirty (30) days of receip t of the offer to re-rent
of your acceptance or rejection of the offer, and,
if accepted, you must reoccupy the unit within
40 Ordinance No.24-__ Tenant Protections Ordinance
thirty (30) days of notif ying the Owner of your
acceptance of the offer.”

c. A description of the S ubstantial 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 demo lished, together with
one of the following:

I. A copy of the permit or permits required
to undertake the substantial remodel or
demolition.

II. Only if a notice is issued for the
abatement of hazardous materials,
including lead-based paint, mold, or
asbestos, in accordance with applicable
federal, state, and local laws, and if the
remodel does not require any permit, a
copy of the signed contract with the
contractor hired by the Owner to
complete the Substantial Remodel,
which reasonably details the work that
will be undertaken to abate the
hazardous materials.
d. A notification that, in accordance with Section

8.19.060, if the Tenant is interested in
reoccupying the Rental Unit following the
Substantial Remodel, the Tenant shall inform
the Landlord of the Tenant’s interest in
reoccupying the Rental Unit following the
Substantial Remodel and provide to the
Landlord the Tenant’s address, telephone
number, and email address.
iii.iv. Filed with the Planning and Environmental Review Department, within five (5) calendar days after service of the notice of Termination of Residential Tenancy, a
copy of the documents served on the Tenant and proof
of such service, signed by the Owner under penalty of
perjury, on the Tenant. The Owner shall maintain proof
of service to the City as evidence that the Owner has
complied with this section. The Owner’s failure to
provide proof of service shall create a rebuttable
presumption that the Owner did not comply with this
section.

D. Relocation Assistanc e Payments Required.
41 Ordinance No.24-__ Tenant Protections Ordinance

1. The Landlord of a Rental Unit who issues a notice of Termination of Residential Tenancy based upon no-fault Just Cause shall, within 15 calend ar days after service of the notice, make a relocation assistance payment to each
Qualified Tenant in an amount established by resolution of the City Council or two months’ Rent that was in effect when the Landlord issued the notice of Termination of Residential Tenancy, whichever is greater.

2. When more than one Qualified Tenant occupies a Rental Unit, the Landlord shall divide the relocation assistance payment equally among the Qualified Te nants and make the divided relocation assistance payment to each Qualified Tenant.

3. The Landlord of the Rental Unit may elect to make one-half of the relocation assistance payment required by this Chapter to each Qualified Tenant within 15 calendar days after service of the notice of Termination of Residential Tenancy, and the remaining one half of the relocation assistance payment to each Qualified Tenant no later than the time that Qualified Tenant surrenders possession of the Rental Unit.

4. If a Qualified Tenant fails to vacate after the expiration of the notice of Termination of Resi dential Tenancy, the actual amount of any relocation assi stance paid to the Qualified Tenant shall be recoverable as damages from that Qualified Tenant.

5. A Qualified Tenant is not entit led to relocation assistance, if any government agency or court determines that the tenant is at fault for the condition or cond itions triggering an eviction order or need to vacate for reasons listed in but not limited to those in Section 8.19.040(B).

6. Any relocation assistance or r ent waiver required by State law shall be credited against the relocation assistance payment required by this Chapter, but only to the extent such credit is required by State law.

E. Notice Requirements.

1. For a no-fault Just Cause Termination of Residential Tenancy, at least 60 days before the Landlord serves a notice of Termination of Residential Tenancy, the Landlord must serve the tenant with an Early Tenant Alert Notice stating the Landlord’s intent to issue a notice of Termination of
Residential Tenancy.

1.2. The written notice to terminate tenancy shall state in full the facts and circumstances c onstituting the at-fault Just Cause or no-fault Just Cause for Termination of Residential Tenancy.
42 Ordinance No.24-__ Tenant Protections Ordinance

2.3. A written notice of Termination of Residential Tenancy based upon no-fault Just Cause must be provided at least 60 days before the date of termi nation and must inform each Qualified Tenant of their ri ght to and the amount of a relocation assistance payment required by this Chapter.

3.4. Before a Landlord of a Rental Unit issues a notice of Termination of Residential Tenancy for Just Cause that is a curable lease violation, the Owner shall first give notice of the violation to each Qualified Tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the violation is not cured within the time period set forth in the notic e, a three-day notice to quit without an opportunity to cure may thereafter be served in accordance with California law to terminate the tenancy.

8.19.050 Mandatory Offer of Residential Lease.

A. If a Tenant or prospective Tenant wis hes to rent a Rental Unit from a Landlord and if the Landlord wishes to rent the Rental Unit to the Tenant or prospective Tenant, the Landlord must offer to the Tenant or prospective Tenant a written l ease which has a minimum term of one year. The offer must be made in writing. The Landlord’s signing of a lease which has a minimum term of one year shall be considered an offer in writing.

B. If the Tenant or prospective Ten ant accepts the offer of a written lease which has a minimum term of one year, this acceptance must be in writing, dated, and signed by the Tenant. The Tenant or prospective Tenant’s signing of a lease signed by the Landlord, which has a minimum term of one year, will be considered an acceptance. The Tenant shall bear the burden of proving that they accepted the lease offer.

C. If the Tenant or prospective Tenant rejects the offer for a written lease which has a minimum term of one year, this rejection must be in writing and signed by the T enant on a dated single-page form which is either:

1. made available through the City’s website; or

2. prepared by the Landlord or Tenant to communicate the rejection.

On or after the date the reject ion is signed and delivered, the Landlord and Tenant or prospective Tenant may then enter into an agreement that provides for a rental term of less than one year. The Landlord shall have the burden of prov ing that the lease offer was made to the Tenant and whether the Tenant accepted or rejected the offer.

D. If the Landlord and Tenant enter into a written lease which has a minimum term of one year, such lease must set the Rent for the 43 Ordinance No.24-__ Tenant Protections Ordinance
Rental Unit at a rate or rates certain, and these rates shall not be otherwise modified during the initial term of such lease.

E. If both the Landlord and the Tenant wish to continue the rental relationship, upon the expiration of the initial lease which has a minimum term of one year, a lease shall be offered again in accordance with the procedures of this section.

1. Leases with a term of one year shall be offered annually.

2. Leases with a term longer t han one year shall be renewable at the expiration of each lease period for a minimum term of one year.

3. A Landlord shall offer annually a written lease with a minimum term of one year to a Tenant who rejected an initial offer of a written lease with a minimum term of one year but who has rented a unit from the Landlord for a period of at least twelve months.

F. If the Landlord does not wish to cont inue the rental relationship, then at the time the Landlord delivers notice of such Termination of Residential Tenancy, the Tenant shall be offered a one-session conciliation meeti ng with the Landlord using a publicly funded housing mediation service, if available, or a qualified mediator of mutual choice and provided at mut ual expense. The results of any conciliation meeting shall not be binding unless agreed to by the Landlord and Tenant. A Tenant need not participate in a conciliation meeting. The remedies available under this chapter shall not be affected by a Tenant’s inability or refusal to participate in conciliation.

G. If a Rental Unit is rented subject to a written lease, when the lease in effect for such a unit expires, th e ordinance codified in this Section shall then apply. If a Rent al Unit is rented wit hout a written lease, within ninety days after the effective date of this Chapter, the Landlord shall offer a written lease to the Tenant in accordance with this Section.

8.19.060 Mandatory Right of First Refusal.

A. For Termination of Residentia l Tenancy pursuant to Section

8.19.040(C)(4), the Landlord shall provide the T enant of the unit at the time of termination a written Right of First Refusal to re-occupy the Rental Unit when it is ready to be occupied , for up to two years following the date the Tenant vacated the Rental Unit, provided the following:

1. The Tenant must provide to the Landlord current contact information, including address, telephone number, and email address, at which to receive a notification related to the Right of First Refusal to re-occupy the unit.

2. When the Rental Unit is ready for occupancy, the Landlord must make an offer to the Tenant to return and rent the Rental Unit under a new rental agreement containing substantially 44 Ordinance No.24-__ Tenant Protections Ordinance
the same terms as the Tenant’s most recent rental agreement with the Landlord.

B. The written offer to re-occupy the unit shall include the rental price, the proposed terms, and any security deposit required. The rental price for the unit shall be set at no more than the total rental rate charged for the unit at the time of the notice of Termination of Residential Tenancy plus 5 percent plus the percentage change in the cost of living, or 10 per cent, whichever is lower. Where applicable, the lease term offered shall be in accordance with Section

8.19.050.

B.C. [PLACEHOLDER]
C.D. The Tenant must return to the Landlord an affirmative written acceptance of the offer to return to and rent the unit within thirty (30) days of receipt of the offer. If the Tenant declines the offer or the offer expires, the Landlord may lease the Rental Unit to any applicant.

8.19.070 Additional Tenant Protections.

A. The City Manager may adopt adm inistrative procedures and regulations to implement the provisions of this Chapter.

B. It is illegal for a Landlord to retaliate against a Tenant for lawfully and peaceably exercising their legal rights, including but not limited to the right to file a complaint with Co de Compliance staff at the City or other responsible agency.

C. It is a violation of this Sect ion for a Landlord to willfully engage in, aid, or incite a course of conduct that serves no lawful purpose, and which adversely affects a Tenant’s use or enjoyment of a Rental Unit, a housing opportunity, or housing-related services or facilities, including but not limited to the following:

1. Reducing or eliminating hous ing services required by a lease, contract, or law, including the elimination of parking if provided in the Tenant’s lease or contract, or access to common areas or amenities, except as necessary to
comply with a court order or local or state law, or to lawfully create an accessory dwelling unit or additional housing without violating a lease or contract with a Tenant.

2. Failing to perform and timely complete necessary repairs and maintenance required by local or state law.

3. Failing to exercise due dili gence in completing repairs and maintenance once undertaken or failing to follow
appropriate industry repair, c ontainment or remediation protocols designed to minimize exposure to noise, dust, lead paint, mold, asbestos, or other building materials with potentially harmful health impacts.

4. Abusing the Landlord’s right of access into a Rental Unit as established and limited by California Civil Code Section 1954, including entering or photographing portions of a 45 Ordinance No.24-__ Tenant Protections Ordinance
rental unit that are beyond t he scope of lawful entry or inspection.

5. Threatening a Tenant, by word or gesture, with physical harm.

6. Misrepresenting to a Tenant t hat the Tenant is required to vacate a Rental Unit or enticing a Tenant to vacate a
Rental Unit through intenti onal misrepresentation or the concealment or omission of a ma terial fact. This includes misrepresenting a Tenant’s rights under Chapters 8.08 or

8.19 of this Code.

7. Offering payments or other inducements to a Tenant to vacate more than once in any six-month period, after the Tenant has notified the Landlord in writing that the Tenant does not desire to receive further offers of payments or other inducements to vacate.

8. Threatening to report a T enant or other person known to the Landlord to be associated with a Tenant to any local, state, or federal agency on the basis of their perceived or actual immigration status. The prohibition shall not be construed as preventing communication with such
agencies regarding an alleged immigration violation.

9. Inquiring as to the immigration or citizenship status of a Tenant, prospective Tenant, occupant, or prospective
occupant of a Rental Unit, or requiring any of these people to make any statement, repres entation, or certification concerning their immigration or citizenship status.

10. Refusing to acknowledge or accept receipt of lawful rent payments as set forth in a lease agreement or as
established by the usual pr actices of the parties or
applicable law.

11. Engaging in activity prohibit ed by federal, state, or local housing antidiscrimination laws.

12. Retaliating, threatening, or interfering with tenant organizing activities, including forming or participating in tenant associations and unions.

13. Retaliating, threatening, or interfering with a Tenant’s right to petition the government for redress of grievances.

14. Interfering with a Tenant's right to privacy. This includes, but is not limited to: video or audio recording that captures the interior of a Tenant's bedroom, bathroom, changing room, fitting room, dressing r oom, or the interior of any other area in which the occupant has a reasonable
expectation of privacy with the intent to invade the privacy of a person or persons in side, entering or photographing portions of a Rental Unit t hat are beyond the scope of a lawful entry or inspection, unreasonable inquiry into a 46 Ordinance No.24-__ Tenant Protections Ordinance
Tenant's relationship status or criminal history, or
unreasonable restrictions on or inquiry into overnight guests.

D. A Landlord, in the course of the l easing or offering to lease a Rental Unit, is prohibited from requesti ng information that violates a Tenant's right to privacy, includ ing but not limited to residence or citizenship status or social secu rity number, except as required by law or, in the case of a social security number, for the purpose of obtaining information for the qualifications for a tenancy, provided the Landlord does not release such info rmation except as required or authorized by law. A Landlord shall accept equivalent alternatives to information or documentation that does not concern immigration or citizenship status, e.g., an Individual Taxpayer Identification Number (ITIN).

E. A Landlord is prohibited from retaliating against a Tenant because of the Tenant's exercise of rights under Chapters 8.08 or 8.19 of this Code, state or federal law, or other applicable regulations. This includes but is not limited to the ri ght to file a complaint with Code Compliance staff at the City or other responsible agency.

B.F. Nothing in this Section shall be construed as to prevent a Landlord from lawfully exercisi ng the Landlord’s rights under Chapters 8.08 or 8.19 of this Code or applic able law. No Landlord may take any action increasing any Rent, reducing any service, causing the Tenant to involunt arily quit the premises, or discriminating against the Tenant because of the Tenant’s use of any remedy provided by this Chapter.

C.G. Any provision of a lease or rental housing agreement that purports to waive any provision of this Chapter is void as against public policy.

8.19.080 Remedies.

A. Failure to comply with any provisi on of this Chapter shall render void a notice of Termination of Residential Tenancy, and any other notice by a Landlord to terminate a re sidential tenancy as described in California Civil Code Sections 1946 to 1946.2.

B. Failure to include all required in formation in the notices required by this Chapter shall be a defense to any unlawful detainer action.

C. Failure of a Landlord to comply wit h any of the provisions of this Chapter shall provide the Tenant with an affirmative defense in any legal action brought by the Landlord to collect Rent Increases made in violation of this Chapter.

D. Failure of a Landlord to plead an d prove compliance with any of the provisions of this Chapter shall provide the Tenant a defense in any action to recover possession of the Rental Unit.

E. Any violation of this Chapter shall entitle the aggrieved Tenant to:

1. Actual damages according to proof.
47 Ordinance No.24-__ Tenant Protections Ordinance

2. Attorneys’ fees and costs.

3. Upon a showing that the Landlor d has acted willfully or with oppression, fraud, or malice, up to three times the actual damages. An award may also be entered for punitive
damages for the benefit of the Tenant against the Landlord.

4. A Tenant may seek injunctive relief on behalf of Tenant or on behalf of other affected Tenan ts to enjoin a Landlord’s violation of this Chapter.

4.5. In case of any violation of Section 8.19.070(B), an aggrieved Tenant may institute civil proceedings against a landlord for alleged violations of this Chapter, regardless of whether the Rental Unit remains occupied or has been
vacated due to the alleged viol ation(s). A tenant may be awarded actual damages or a minimum amount of $1,000 per violation, whichever is greater, and the court may impose civil penalties up to $10,000 per violation, in addition to any other civil remedies authorized by law.

F. Remedies provided in this Se c tion are in addition to any other existing legal remedies and not intended to be exclusive.

G. The City Attorney is authorized to enforce this Chapter through administrative, civil, or criminal action. The City Attorney is further authorized to bring actions for injunctive relief on behalf of the City.

The City Attorney shall seek re covery of costs, expenses, and attorneys’ fees as allowed by law.

SECTION 4. 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 th e remaining portions of this Chapter. The City Council decla res that it would have adopted this Chapter and each section, subsecti on, sentence, clause, and phrase thereof, irrespective of t he fact that any one or mo re section, subsection, sentence, clause, or phrase be declared invalid.

SECTION 5. Certificat ion of City Clerk.

The City Clerk shall c
ertify to th e adoption of this ordinance and,
within 15 days after its adoption, shall cause it to be published in accordance with California Government Code section 36933.

SECTION 6. Effective Date and Termination.

This Ordinance shall take effect on the 31 st day following adoption by the City Council.
48 Ordinance No.24-__ Tenant Protections Ordinance
INTRODUCED ON the ___ day of ________, 2024.

PASSED, APPROVED, AND ADOPTED this ________day of ______ 2024.

_________________________

P A U L A P E R O T T E

M A Y O R

ATTEST: APPROVED AS TO FORM:

__________________________ _________________________
DEBORAH S. LOPEZ MEGAN GARIBALDI

CITY CLERK CITY ATTORNEY
49 Ordinance No.24-__ Tenant Protections Ordinance

STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )

I, DEBORAH S. LOPEZ, City Clerk of the City of Goleta, California, do hereby certify that the foregoing Ordinance No. 24-__ was introduced on _______, and adopted at a r egular meeting of the City Council of the City of Goleta, California, held on the _______, by the following roll-call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

(SEAL)

_________________________
DEBORAH S. LOPEZ

C I T Y C L E R K

50 Attachment 3

CEQA Notice of Exemption
for Ordinance
51 NOTICE OF EXEMPTION (NOE)

1 To: Office of Planning and Research From: City of Goleta P.O. Box 3044, 1400 Tenth St. Rm. 212 130 Cremona Drive, Suite B Sacramento, CA 95812-3044 Goleta, CA 93117

Clerk of the Board of Supervisors
County of Santa Barbara
105 E. Anapamu Street, Room 407
Santa Barbara, CA 93101

Subject: Filing of Notice of Exemption

Project Title:

Adoption of Revised Tenant Protections Ordinance

Project Applicant:

City of Goleta Planning and Environmental Review Department

Project Location (Address and APN):

Citywide

Description of Nature, Purpose, and Beneficiaries of Project:

Adoption of a revised ordinance entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 8.19, Entitled Tenant Protections, of Title 8, Health and Safety, of the Goleta Municipal Code, and Determining the Ordinance to be Exempt from CEQA”

Name of Public Agency Approving the Project:

City Council of the City of Goleta

Name of Person or Agency Carrying Out the Project:

City of Goleta

Exempt Status: (check one)
 Ministerial (Sec. 15268)
 Declared Emergency (Sec. 15269 (a))
 Emergency Project (Sec. 15269 (b) (c))
 Categorical Exemption: (Insert Type(s) and Section Number(s))  Other Statutory Exemption: Sec. 15378(b)(5) (not a project), 15061(b)(3) (general rule)

Reason(s) why the project is exempt:

Pursuant to California Environmental Quality Act (Public Resources Code Sections 21000 et seq., “CEQA”) and the regulations promulgated thereunder (14 California Code of Regulations Sections 15000 et seq., the “CEQA Guidelines”), the proposed ordinance does not constitute a “project” for the purposes of CEQA because it does not result in direct or indirect physical changes in the environment, and it can be seen with certainty to have no possibility for causing a significant effect on the environment (CEQA Guidelines Section 15378(b)(5) and Section 15061(b)(3)).

52 NOTICE OF EXEMPTION (NOE)

2 City of Goleta Contact Person, Telephone Number, and Email:

Lucy Graham, Senior Housing Analyst
805-961-7546
[email protected]

Peter Imhof, Director, Planning and Environmental Review Dept. Date

If filed by the applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project?
Yes No

Date received for filing at OPR: ____________________________________________

Note: Authority cited: Section 21083 and 211110, Public Resources Code Reference: Sections 21108, 21152.1, Public Resources Code 53 Attachment 4

Staff Presentation
54 Revised
Tenant Protections
Ordinance
City Council
March 19, 2024
Presentation by:

Peter Imhof, PER Director
Lucy Graham, Senior Housing Analyst
55 Consideration of Revised Ordinance
•December 2023
•Adopted Urgency Tenant Protections Ordinance
•Requested staff return with any recommended revisions
•March 2024
•Discussion of draft revised ordinance
•Introduction/First reading
•April 2024
•Second reading for adoption
•Effective 31st day after adoption
2 56
Recommended Action
A. Introduce and conduct first reading (by title only) and waive further reading of Ordinance No. 24-__, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 8.19, Tenant Protections, of Title 8, Health and Safety, of the Goleta Municipal Code, and Determining the Ordinance to be Exempt from CEQA.”
3 57

TENANT PROTECTIONS ORDINANCE -

CURRENT REGULATIONS
Month Day, Year City Council/Committee Meeting Name 4
58 Tenant Protections in GMC 8.19
•Just Cause req’d
•At fault or no fault
•Owner move-in, withdrawal from market, comply with laws/codes, demolish
or substantial remodel
•2 mos. relocation assistance for no-fault
5 59
Tenant Protections in GMC 8.19 (cont’d)
•Substantial remodel must be for health & safety
•Notice must include permits
•Copy PER w/in 5 days
•Mandatory offer of 1-year lease
•Right of First Refusal to re-rent after Sub. Remodel
•Rent limited to lesser of: previous rate + 5% + CPI, or 10% 6 60

TENANT PROTECTIONS ORDINANCE -

PROPOSED REVISIONS
Month Day, Year City Council/Committee Meeting Name 7
61 Applicability
•Clarify that the regs do not supersede Costa-Hawkins
•This Chapter shall not apply to the extent it conflicts with the requiremen
ts of the Costa-Hawkins Rental Housing Act
(California Civil Code § 1950.50 et seq.).
8 62
Early Alert Tenant Notice
•Additional notice requirement to tenant
•At least 60-day advance written notice
• Total 120-day notice before tenant must vacate
•Prior to no-fault Just Cause Notice of Termination
9 63
Mandatory Right of First Refusal (ROFR)
•Notice of Termination must notify tenant of right to return •After Substantial Remodel, offer to re-rent in writing •For 2-year period after tenant vacates
•Must include lease terms & rental rate*
•Tenant must give owner current address, phone, email
•Tenant must accept in writing w/in 30 days
*Options for rental-rate language for Council consideration… 10 64
Right of First Refusal (ROFR) – Council Direction
•Section 8.19.060(C):
•Option 1 - “The monthly rental rate for the unit shall be set at no more
than the total rental rate charged for the unit at the time of the notice of Termination of Residential Tenancy, plus annual adjustments that would have been allowed if the tenancy had not been terminated, which shall not exceed the allowed monthly rental rate multiplied by the lower of 5 percent plus the percentage change in the cost of living, or 10 percent, whichever is lower.”
•Option 2 - “Where applicable, the monthly rental rate shall be est
ablished in accordance with the Costa-Hawkins Rental
Housing Act (California Civil Code § 1950.50 et seq.).” 11 65
Tenant Anti-Harassment Provisions
•Prohibited activities w/no lawful purpose that affect
tenant
’s use or enjoyment of their rental unit
•Examples:
•Reducing/removing services in the lease
•Failing to make/complete needed repairs
•Threatening harm
•Invading tenant’s privacy
•Retaliating for exercising rights
•Remedies added: actual damages or $1,000+ per violation, civil
penalties up to $10,000, other civil remedies by law
12 66
TENANT PROTECTIONS ORDINANCE –

OTHER TOPICS REVIEWED
Month Day, Year City Council/Committee Meeting Name 13
67 Not Recommended
•Specific timeframe for “Withdrawal from Rental Market” (no-fault
Just Cause)
•Current language in line w/state law and common practice, inc.
local jurisdictions’ ordinances
•Does not create outright prohibition on future rental if circums
tances change
14 68
Not Recommended
•Exemption of properties with 4 units or fewer
•County Assessor data show:
• 199 parcels w/5+ apartments
• 173 parcels w/2-4 rented units
•Many houses/condos/mobilehomes in City
• Most may qualify as exempt
• But some may not
15 69

QUESTIONS/DISCUSSION
Month Day, Year City Council/Committee Meeting Name 16
70 Recommended Action
A. Introduce and conduct first reading (by title only) and waive further reading of Ordinance No. 24-__, entitled “An Ordinance of the City Council of the City of Goleta, California, Amending Chapter 8.19, Tenant Protections, of Title 8, Health and Safety, of the Goleta Municipal Code, and Determining the Ordinance to be Exempt from CEQA.”
17 71
THANK YOU!
March 19, 2024 City Council 18
72