DATE: September 19, 2024
TO: Housing Policy & Resource Committee
FROM: Acting Assistant City Manager
SUBJECT: Discussion on the Simplification of the Tenant Relocation Assistance Ordinance (TRAO)
RECOMMENDATION
That the Housing Policy & Resource Committee provides feedback regarding staff’s proposals to simplify the Tenant Relocation Assistance Ordinance.
SUMMARY
On June 4, 2024, the City Council adopted the FY 2025 Strategic Plan, which includes a proposed special project to simplify the Tenant Relocation Assistance Ordinance. The current Tenant Relocation Assistance Ordinance (TRAO) has layers of complexities that have made the ordinance difficult for stakeholders to understand and for staff to administer. Through this report staff have outlined several areas within the ordinance for simplification. Staff recommend making the following modifications to the TRAO:
Modifying the temporary relocation assistance from per diem requirements to a one-time flat rate of three times the Fair Market Rate (FMR) (prorated if relocation lasts fewer than 30 days) Explicitly stating that relocation assistance for governmental agency’s order to vacate requires relocation assistance owed by state law in addition to City’s requirements Aligning the timeframes for relocation assistance based on a governmental agency’s order to vacate with state law Cross referencing defined terms shared by the Residential Rent Stabilization and Tenant Protection Ordinance (RRSO) and the TRAO Changing timeframes references to consistently indicate “calendar days” Implementing a fee for appeal hearings except in cases of hardship and modifying assessment process to only conduct hearings consistent with these processes referenced elsewhere in the Hayward Municipal Code (HMC) Staff recommends that the Housing Policy & Resource Committee (HPRC) deliberate on the proposed simplifications of the ordinance and provide feedback for consideration of full Council for additional feedback.
BACKGROUND
On July 14, 2020, the City Council adopted the TRAO to ensure Hayward residents had the same protections that were afforded under California’s Tenant Protection Act (TPA). The TRAO requires that landlords pay permanent relocation in cases of no-fault termination of tenancy consistent with state law, temporary relocation if the unit has to be vacated to complete repairs or required to be vacated by the City. The TRAO also authorizes the City, when orders to vacate are issued and the landlord fails to pay relocation assistance, to pay relocation assistance to the tenant and recover the cost from the landlord. Attachment II includes a detailed summary of the TRAO. Furthermore, on July 13, 2021, the City Council authorized the use of $250,000 of American Rescue Plan Act (ARPA) stimulus funds to help with relocation assistance for emergency relocation assistance (e.g., displacement due to natural disasters like fires and floods or landlord’s failure to pay relocation assistance when there is a City issued notice to vacate).
DISCUSSION
The TRAO has been a useful tool to mitigate the impacts of no-fault housing loss and in some cases has been a homelessness diversion tool. Table 1 below summarizes the number of relocation cases managed by the Housing Division FY 2021 through FY 2024.
Table 1. Number of Households that Received Relocation Assistance Fiscal Year
Relocation Assistance from Landlord
City-funded Relocation Assistance*
2021
9 -
2022
6 6
2023
6 4
2024
1 10
*Funded by allocations received from the American Rescue Plan Act However, not all relocation cases are managed by the City, and the property owner is required to navigate the TRAO with the assistance of City published summaries and forms. Some provisions of the TRAO are complex making it difficult for landlords to understand despite the materials created. The complexities include the number of variables required to calculate that amount of temporary relocation assistance and varying compliance timeframes based on the type of relocation assistance. These complexities make it challenging for property owners to comply with the TRAO.
Staff have identified several categories for which the implementation of the TRAO should require simplification: timeframes & definitions, administrative hearings, and payments. Staff have provided suggested improvements and proposals in this report to simplify the TRAO and requests that the HPRC provides feedback regarding these improvements or proposals.
Payments
Temporary Relocation Assistance
To determine the amount of temporary relocation under the TRAO, there are a set of variables that must be determined based on the tenants’ existing housing amenities and preferences for receiving payment. Establishing the amount of relocation assistance requires multiple exchanges between tenant and landlord. In cases where the City is required to determine the amount of the payment, staff collect supporting documentation and make determinations about disputed information. Additionally, the amount of the payment changes based on the length of the termination. The complexity makes it difficult for landlords to comply and for tenants to advocate for their rights.
Staff recommends simplifying the provisions for the Temporary Relocation Assistance to be a flat rate of three times the FMR based on the unit size (e.g., one-bedroom, two-bedroom, three-bedroom, four-bedroom). A flat rate based on this amount would be the equivalent to one-month of per-diem payment schedule. Moreover, the flat rate would eliminate the monitoring for ongoing payment, in which there is no guarantee that a landlord would pay obligated relocation assistance. Importantly, if the duration of the temporary relocation lasts fewer than 30 days, the landlord would be responsible for paying the prorated flat rate based on the number of days the tenant is displaced. Tenants would have no obligation to pay rent during the time they are displace and the amount of money provided would be sufficient to cover hotel costs for a short-term displacement or establish a new temporary tenancy for longer-term displacement. Furthermore, staff recommends stating that permanent relocation assistance no longer applies because the proposed flat rate amount would provide tenants with sufficient funds to find alternative, permanent housing. Table 2 provides the amount of relocation assistance based on 2025 Fair Market Rents.
Table 2. FY 2025 FMRs and Proposed Flat Rates
Unit Type
FMR
Proposed Flat Rate (3x FMR)
Proposed Flat Rate (Daily Amount)
Efficiency
$1,937
$5,810
$190
1-Bed
$2,201
$6,600
$220
2-Bed
$2,682
$8,050
$270
3-Bed
$3,432
$10,300
$340
4-Bed
$4,077
$12,230
$410
*Values are rounded to the nearest ten
Governmental Agency’s Order to Vacate
Under the TRAO, Governmental Agency’s Order to Vacate is a type of temporary relocation that the City directly enforces to ensure that tenants displaced due to habitability concerns have resources to find immediate emergency housing. Tenants that are eligible for relocation assistance under this section are also eligible for relocation assistance under state law, which requires that landlords pay the tenants two times the FMR, a utility deposit and the tenants’ deposit. The relocation assistance obligated by both the City and the State is necessary to provide tenants the financial resources needed to quickly relocate. While that has been the current practice, staff recommend making an explicit reference to requirements under state law. Additionally, to simplify the implementation, staff also recommends using the same deadlines established in state law for consistency.
Definitions
Currently the ordinance relies on some definitions established in the RRSO to interpret the TRAO. Staff recommends adding an explicit cross reference to the defined terms shared by the RRSO and the TRAO.
Timeframes
Currently, the Ordinance prescribes timeframes for certain obligations for the landlord, tenant, and staff. These timeframes vary by the nature of the action, and they can cause confusion for staff to enforce. For instance, some areas of the ordinance clarify a deadline contingent on “calendar days” whereas other areas discuss “business days” or simply “days”. Thus, staff is proposing changing these deadlines to consistently mention “calendar days” (adjusting the number of days as appropriate). The following list includes major timeframes and deadlines that staff proposes modifying:
Allowing the Hearing Office to provide a written appeal decision to the City within 30 calendar days unless otherwise agreed to by all parties to the City as opposed to mailing the decision within 20 days of the conclusion of the hearing.
If applicable, including an additional 14 calendar days to mail out a translated appeal decision after mailing out the original decision Administrative Hearings
Appeal Hearing
Under the TRAO, landlords can appeal the City’s determination that relocation assistance is required, and tenants can appeal the decision that relocation assistance is not required. There is no corresponding fee for this appeal hearing to ensure that parties have access to due process; however, this is inconsistent with other sections of the HMC. Staff recommends modifying the TRAO to be consistent with other sections of the HMC. Staff would propose using the Code Enforcement Administrative Hearing Fee established in the Master Fee Schedule. To address concerns related to accessibility, a hardship policy could be implemented to ensure that the cost would not deny access to due process.
Assessment Hearing
When the City pays relocation assistance on behalf of the landlord because of a landlord’s failure to pay, staff are required to hold an administrative hearing before initiating cost recovery through an assessment. This process is inconsistent with other City cost recovery processes that require the property owner to request a hearing and pay the applicable hearing fee. Staff recommends making the process consistent with other City collection processes and only conducting the hearing upon request.
Conclusion
Staff have proposed modifying the TRAO to simplify components while maintaining the level of benefit that tenants are entitled to under the current TRAO. The following changes pertain to payments, definitions, timeframes, and administrative hearings:
Modifying the temporary relocation assistance from per diem requirements to a one-time flat rate of three times the FMR (prorated if relocation lasts fewer than 30 days) Explicitly stating that relocation assistance for governmental agency’s order to vacate requires relocation assistance owed by state law in addition to City’s requirements Aligning the timeframes for relocation assistance based on a governmental agency’s order to vacate with state law Cross referencing defined terms shared by the RRSO and the TRAO Changing timeframes references to consistently indicate “calendar days” Implementing a fee for appeal hearings except in cases of hardship and modifying assessment process to only conduct hearings consistent with these processes referenced elsewhere in the HMC
ECONOMIC IMPACT
There is no immediate economic impact with consideration of this report.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority of Preserve, Protect & Produce Housing. Specifically, this item relates to the implementation of the following project:
Project HP10: Simplify the Relocation Assistance Ordinance to improve compliance and increase funding for Emergency Relocation Assistance
FISCAL IMPACT
This work session report does not propose any changes that would create a fiscal impact on the City’s General Fund.
PUBLIC CONTACT
The Housing Division has proposed these changes based on feedback received and experiences in day-to-day implementation of the TRAO. Staff receives inquiries from tenants and landlords regarding the provisions of the ordinance. No additional stakeholder engagement has been conducted.
NEXT STEPS
After receiving and incorporating feedback from the HPRC, staff will schedule a work session with the full City Council by the end of calendar year 2024 or early 2025. Depending on feedback from the City Council, staff anticipates scheduling the item for City Council during the fourth quarter of FY 2025.
Prepared by: Ayush Patel, Management Analyst I
Recommended by: Adam Kostrzak, Acting Assistant City Manager Sara Buizer, AICP, Director of Development Services
Christina Morales, Deputy Director of Development Services Approved by:
_________________________________
Dustin Claussen, Interim City Manager
June 4, 2024 City Council Staff Report and Materials:
https://hayward.legistar.com/LegislationDetail.aspx?ID=6712541&GUID=FC1C8272-3788-4EEE-B855-19B21D44EFAE&Options=&Search= July 14, 2020 City Council Staff Report and Materials:
https://hayward.legistar.com/LegislationDetail.aspx?ID=4590663&GUID=ADB12ECB-15EB-4DB2-B096-5A6D9877359A&Options=&Search= July 13, 2021 City Council Staff Report and Materials:
https://hayward.legistar.com/LegislationDetail.aspx?ID=5028015&GUID=E0215022-6A47-486F-81C4-9BFB2583AE10&Options=&Search= Adopted FY 2025 Master Fee Schedule:
https://www.hayward-ca.gov/sites/default/files/documents/fs-adopted-fy2025-master-fee-schedule.pdf