AGENDA
SPECIAL MEETING OF THE MAYWOOD CITY COUNCIL AND THE
SUCCESSOR AGENCY TO THE MAYWOOD COMMUNITY
REDEVELOPMENT AGENCY
MONDAY, FEBRUARY 6, 2023 AT 5:00 PM
Maywood City Council Chambers
4319 E. Slauson Avenue, Maywood, CA 90270
www.cityofmaywood.com
I. CALL TO ORDER/ROLL CALL
CALL TO ORDER
ROLL CALL
II. CITY OFFICIALS
MAYOR
Frank Garcia
MAYOR PRO TEM
Mayra Aguiluz
COUNCIL MEMBERS
Jessica Torres
Eduardo De La Riva
Heber Marquez
CITY CLERK
Andrea Aguilar
CITY TREASURER
Mary Mariscal
CITY MANAGER
Jennifer E. Vasquez
CITY ATTORNEY
Roxanne Diaz
III. MEETING PROCEDURES
PUBLIC ADVISORY:This meeting will be conducted in person and by video-conferencing pursuant to the provisions of Government Code Section 54953(e) (as amended by AB 361), which authorizes teleconferenced meetings under the Brown Act in compliance with Government Code Section 54953(e) during a proclaimed State of Emergency. For this meeting, it will be conducted through a hybrid combination of in-person and/or virtual attendance of the five members of the City Council and invited staff at City Hall in the City Council Chambers located at 4319 E. Slauson Avenue and via teleconference using the Zoom platform and broadcasted live on the City’s Facebook page. The public may participate in person and or by using the virtual platform (Zoom).
Public Participation options:
1. In-Person - Council Chambers located at 4319 E. Slauson Avenue, Maywood, CA
2. Zoom: Please click the link below to join the webinar:
https://us02web.zoom.us/j/83177761595?pwd=OHgxMDlCVllyY3dJc091ZWl3WU8yQT09 Passcode: 192674
Public Comment using a virtual platform: Join in through the link provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public participation period for agenda items . The Zoom Host will call on people to speak by name provided or by last 4 digits of the phone number.
3. Phone: 1-669-900-6833 Enter Meeting ID: 831 7776 1595 Passcode: 192674 Public Comment for those joining by phone, use the “raise hand” feature by pressing *9 during the public participation period for agenda items.
4. Before the Meeting: Public comment will be accepted for the record in advance by 1:30 pm the day of the meeting by email to [email protected]; or if you are unable to email, please call the City Clerk's Office at (323) 562-5714. Your comment will be made part of the written record but will NOT be read verbally at the meeting.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in the Council meeting, please contact the City Clerk’s Office, (323) 562-5714 within 48 hours of the meeting.
IV. MAYOR, COUNCILMEMBERS AND STAFF COMMENTS
V. PUBLIC PARTICIPATION (Agenda Items; Time allotted: 3 minutes) Speakers wishing to address the City Council on an item on the agenda may use the instructions provided in section III. MEETING PROCEDURES beginning on page 1 of this agenda.
VI. DISCUSSION/ACTION ITEMS
1. CONSIDERATION OF ADOPTION OF URGENCY ORDINANCE NO. 23-01-U, AN
UNCODIFIED URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MAYWOOD, CALIFORNIA ESTABLISHING AN INTERIM PROHIBITION OF RENT INCREASES ON CERTAIN RESIDENTIAL PROPERTIES FOR SIXTY (60) DAYS WITH THE ABILITY TO EXTEND FURTHER; AND FINDING THAT THE URGENCY
ORDINANCE IS NOT A PROJECT PURSUANT TO CALIFORNIA ENVIRONMENTAL QUALITY GUIDELINES SECTION 15060(C)(2) AND 15060(C)(3).
VII. ADJOURNMENT - The meeting will be adjourned In the Memory of Lorenzo Torres Nuñez and Guadalupe Flores to the next Adjourned Meeting of the Maywood City Council on Tuesday, February 21, 2023 at 7:00 p.m.
PUBLIC ACCESS TO MEETING AGENDA AND AGENDA PACKETS
I, _______________________________, Andrea Aguilar, City Clerk or Shirley Quinones, Deputy City Clerk, hereby certify that this agenda was duly posted by law at 4319 E. Slauson Avenue, Maywood, CA 90270 and the City Website. Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the Maywood City Hall, 4319 E.
Slauson Avenue, Maywood CA 90270. If you challenge in court any discussion or action taken concerning an item on this Agenda, you may be limited to rising only those issues you or someone else raised during the meeting or in written correspondence delivered to the City at or prior to the City's consideration of the item at the meeting. In compliance with the ADA, if you need special assistance for the meeting, call (323) 562-5723 within 72 hours prior to the meeting so the City can make reasonable arrangements to ensure accessibility.
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 1.
DATE: February 6, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: ROXANNE DIAZ, CITY ATTORNEY
SUBJECT: CONSIDERATION OF ADOPTION OF URGENCY ORDINANCE NO. 23-01-U, AN
UNCODIFIED URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MAYWOOD, CALIFORNIA ESTABLISHING AN INTERIM PROHIBITION OF RENT INCREASES ON CERTAIN RESIDENTIAL PROPERTIES FOR SIXTY (60) DAYS WITH THE ABILITY TO EXTEND FURTHER; AND FINDING THAT THE URGENCY
ORDINANCE IS NOT A PROJECT PURSUANT TO CALIFORNIA ENVIRONMENTAL QUALITY GUIDELINES SECTION 15060(C)(2) AND 15060(C)(3).
RECOMMENDATION:
Staff Recommends that the City Council move to waive full reading of Urgency Ordinance No. 23-01-U, and adopt Urgency Ordinance No. 23-01-U imposing a temporary prohibition on residential rent increases for a period of 60 days with the ability to extend further.
BACKGROUND:
As the City Council is aware, three-quarters of Maywood’s household are renters and for many the cost of housing is unaffordable. During the peak of the COVID-19 pandemic, Los Angeles County adopted certain tenant protection measures that applied county-wide. While the County Board of Supervisors recently extended by two months its tenant protections against eviction for those impacted by COVID-19 and established a relief fund for certain landlords, the rent increase freeze that applied to rent stabilized units and mobile home spaces will cease on January 31, 2023. The proposed Urgency Ordinance, however, will put in place a prohibition on rent increases on rental units in the City for 60 days.
DISCUSSION:
The proposed Urgency Ordinance will prohibit rent increases for the next 60 days to protect tenants from potential rising rent costs while the City studies the issue of rent stabilization. Under the State’s Statewide Rent Stabilization law (AB 1482), landlords are permitted to increase rent by five (5) percent of the base rent plus the current CPI (Consumer Price Index), totaling no more than a 10 percent rate increase.
Notwithstanding, a city has the ability and legal authority to regulate above the State provision and may enforce a rent stabilization ordinance. Such an ordinance is distinct from a rental control ordinance, which is not permitted. Rent stabilization ordinances regulate subsequent rental increases.
In addition to the prohibition on the increase of rents, the Urgency Ordinance contains a petition process for landlords to undertake should they seek a residential rental rate increase during the 60-day moratorium period.
A landlord may file a petition with the City’s Community Development Department if they contend that the
moratorium will prevent them from receiving a fair and reasonable return with respect to the residential rental units they lease out. The tenant(s) shall be provided a copy of the petition and notice of the scheduled hearing before the City’s Hearing Officer. The tenant(s) and landlord can testify at the hearing, with a written decision subsequently issued. Parties can have the Hearing Officer’s written decision reviewed by the Superior Court.
As real estate costs continue to rise, rents are also increasing, which leads to a decrease in affordability for many. Vulnerable residents who are already rent burdened and struggling with high housing costs may be subject to displacement that can lead to homelessness to the detriment of public health, safety and welfare if they are subject to immediate rent increases. Accordingly, there is an urgent need for the immediate preservation of public peace, health and safety to enact this ordinance on an urgency basis. Such action will require a four-fifths vote, as required pursuant to Government Code Section 36937(b). If the Urgency Ordinance is adopted, it will become effective immediately for a period of 60 days (through April 7th) and will expire on April 8, 2023. This temporary stop-gap will allow the City to undertake the necessary studies regarding a rent stabilization program.
LEGAL REVIEW:
The City Attorney drated this report.
FISCAL IMPACT:
There is no fiscal impact in adopting this Urgency Ordinance. There may be some costs associated with enforcement or consideration of hardship appeals, if any, as well as staff time to undertake the studies for a rental stabilization program.
ATTACHMENT(S)
AGENDA ITEM No. 1.
URGENCY ORDINANCE NO. 23-01-U
AN UNCODIFIED URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MAYWOOD, CALIFORNIA ESTABLISHING AN INTERIM PROHIBITION OF RENT INCREASES ON CERTAIN RESIDENTIAL PROPERTIES FOR SIXTY (60) DAYS WITH
THE ABILITY TO EXTEND FURTHER
THE CITY COUNCIL OF THE CITY OF MAYWOOD DOES ORDAIN AS FOLLOWS:
WHEREAS, the City of Maywood (“the City”) is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries that promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws; and WHEREAS, rents throughout Los Angeles County are continuing to rise despite the State’s Tenant Protection Act of 2019 (Tenant Protection Act), and as housing costs rise, many local residents continue to struggle with a decrease in affordability, housing insecurity, and potential homelessness, particularly low-income households and those persons who continue to be negatively impacted by the ongoing COVID-19 Pandemic; and WHEREAS, Los Angeles County and the cities within the County are experiencing a housing affordability crisis, which is driving homelessness and displacement of residents; and WHEREAS, many of the City’s renters are rent-burdened, paying over 30 percent of their income on rent, and some renters are severely rent-burdened, paying over 50 percent of their income on rent, which leaves less money for families to spend on other necessities like food, healthcare, transportation, and education; and WHEREAS, pandemic-related tenant protections under the County of Los Angeles and State of California have phased out and/or are gradually phasing out; and
WHEREAS, current State law allows increasing annual rent of five percent (5%) plus the consumer price index (CPI), up to a maximum of ten percent (10%) for properties subject to the Tenant Protection Act of 2019; and WHEREAS, this Urgency Ordinance is intended to temporarily stabilize the rental market and prohibit rent increases on a temporary basis to protect tenants from rising rent costs while the City studies the issue of rent stabilization and associated programs; and
WHEREAS, unless this ordinance takes effect immediately as provided herein, there is a high likelihood that residential renters will be subject to economic hardship and potential displacement that may lead to homelessness to the detriment of the public health, safety and welfare;
WHEREAS, Government Code Sections 36934 and 36937 authorize the City to adopt an Urgency Ordinance for the immediate preservation of the public peace, health and safety, provided that such Urgency Ordinance is passed by a four-fifths vote of the City Council; and
WHEREAS, for all these reasons, inter alia, the City Council finds there is a current and immediate threat to the public health, safety and welfare and that increases in rent for certain residential tenancies would result in that threat to the public health, safety or welfare absent implementation of the restrictions contained in this ordinance. Accordingly, there is an urgent need for the immediate preservation of the public peace, health, and safety to enact this ordinance on an urgency basis.
Section 1. Recitals. The recitals above are true and correct and incorporated herein by this reference as if set forth in full.
Section 2. Findings. Based on the findings set forth in the Recitals, the City Council finds and declares this Urgency Ordinance to be necessary for the immediate preservation of the public health, safety and welfare and upon that basis has determined that an urgency measure, pursuant to Government Code Section 36937(b) is warranted and shall take effect immediately upon adoption by a fourth-fifths vote of the City Council.
Section 3. Emergency Rent Regulations. The City Council of the City of Maywood does adopt the following emergency rent regulations which shall take effect immediately:
A. Definitions. For the purposes of this Urgency Ordinance, the following definitions shall apply:
1. “Base Rent” means the monthly Rent that was in effect on February 6, 2023.
2. “Covered Rental Unit(s)” means any Rental Unit except for:
a. A dwelling unit which is alienable separate from the title to any other dwelling unit, or which is a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (f) of Section 11004.5 of the Business and Professions Code;
b. A dwelling unit for which a certificate of occupancy was issued after February 1, 1995; or c. Any other dwelling unit exempt from the Costa-Hawkins Rental Housing Act (California Civil Code Section 1954.52) or any other applicable state or federal law.
3. “Hearing Officer” means the person designated by the City Manager to conduct a review hearing under Paragraph D of this Section 3 of this Urgency Ordinance. The Hearing Officer shall not be the enforcement officer that investigated the matter under Paragraph D of this Urgency Ordinance that is the subject of the administrative hearing or the immediate supervisor of that enforcement officer.
4. “Housing Services” means all services provided by the Landlord related to the use or occupancy of a Covered Rental Unit, including but not limited to, insurance, repairs, replacement, maintenance, painting, utilities, heat, water, elevator service, laundry facilities, recreational areas and/or pools, janitorial service, refuse removal, furnishings, parking, storage, and security services.
5. “Landlord” means an owner, lessor, or sublessor who receives or is entitled to receive rent for the use and occupancy of any Covered Rental Unit or Rental Unit or portion thereof, and the representative, agent, or successor of such owner, lessor, or sublessor. For purposes of this Urgency Ordinance, a Landlord does not include an individual whose primary residence is the same Covered Rental Unit as the Tenant.
6. “Protection Period” means the time period commencing on the effective date of this Urgency Ordinance and shall terminate after a period of sixty (60) days on April 8, 2023, unless further extended or repealed by action of the City Council.
7. “Rent(s)” is the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Covered Rental Unit, including tenant’s access to and use of Housing Services. Rent includes without limitation, the fair market value of goods accepted, labor performed, or services rendered.
8. “Responsible Person” is a person responsible for, or alleged to be responsible for, a violation of this Urgency Ordinance.
9. “Tenant” means a person entitled, by written or oral agreement, or by sufferance, to the use or occupancy of any Covered Rental Unit or Rental Unit.
10. “Rental Unit(s)” means any dwelling units as defined in California Civil Code Section 1940, subsection (c), including joint living and work quarters used or occupied in consideration of payment of Rent. This definition applies to any dwelling space that is actually used for residential purposes, whether or not the residential use is legally permitted, including live-work spaces, mobile homes rented by the owner of a mobile home to a Tenant, and accessory dwelling units. For purposes of compliance with this Urgency Ordinance, Rental Unit does not mean any dwelling unit in which the Landlord or any member of his/her immediate family occupies one of the dwelling units on the property containing the Rental Unit and it is necessary for the Landlord or any member of his/her immediate family to use either a bathroom or kitchen facility common with the tenant.
B. Rent Increases Temporarily Prohibited. As of the effective date of this Urgency Ordinance, and through the Protection Period, a residential Landlord in the City of Maywood shall not increase Rent for a Covered Rental Unit occupied by an existing Tenant whose tenancy began before or on February 6, 2023. A decrease in Housing Services is
considered an increase in Rent. This Urgency Ordinance does not regulate the initial Rent at which a unit is offered.
C. Exceptions and Exemptions. The following are exempt from this Urgency Ordinance:
1. Accommodations in motels, hotels, inns, tourist houses, rooming houses, and boarding houses, provided that such accommodations are not occupied by the same tenant for thirty (30) or more days;
2. Commercial units; and
3. Housing accommodation in any hospital, convent, monastery, extended care facility, convalescent home, nonprofit home for the aged, or dormitory operated by an educational institution.
D. Petition for Relief.
1. Petition Process. If a Landlord desires to increase the rent for a Covered Rental Unit during the Protection Period and the Landlord contends that the prohibition on Rent increases in Paragraph B of this Section 3 will prevent the Landlord from receiving a fair and reasonable return with respect to the operation of the property containing the Covered Rental Unit, the Landlord may file a petition with the Community Development Department by requesting a hearing, which will be heard by a Hearing Officer appointed by the City Manager. The Landlord shall mail a copy of the petition by first class mail, postage prepaid, to all Tenants whose Rents are the subject of the petition within five (5) calendar days after the date the petition is filed. Within ten (10) calendar days after the date the petition is filed, the Landlord shall file a proof of service signed under penalty of perjury stating that a copy of the petition was mailed to all such Tenants. The petition shall include a statement indicating the basis on which the Landlord contends that the limitations of this Urgency Ordinance on Rent increases will prevent the Landlord from receiving a fair and reasonable return, together with any evidence that the Landlord wants the Hearing Officer to consider. The Landlord shall bear the burden of proving by a preponderance of the evidence at the hearing that because of the implementation of this Urgency Ordinance, the Landlord is unable to obtain a fair and reasonable return.
2. Hearing Process.
a. A hearing before the Hearing Officer shall be set for a date no sooner than fifteen (15) days and no later than sixty (60) days after receipt of the request and proof of service on any request complying with the requirements of this Paragraph D , unless the Hearing Officer determines that good cause exists for an extension of time.
The Hearing Officer shall send written notice to the Landlord and the Tenant of the date, time, and place set for the hearing. Upon receipt, the Landlord shall post such notice in a conspicuous place at the affected property including the Covered Rental Units that are the subject of the petition. Such notice shall be placed on a written instrument that is at least eleven (11) inches in width and seventeen (17) inches in length and shall be placed not less than four (4) feet above ground level in the common area, at the entry or entries to the building or units, or other similar location or locations as necessary to provide Tenants a reasonable opportunity to view the notice and be advised of the hearing. Within five (5) calendar days of receipt of the notice of hearing, the Landlord shall personally deliver a copy of the notice to each Tenant in the affected Covered Rental Units.
b. At the hearing the Landlord shall be given the opportunity to testify, call witnesses, and to present evidence concerning the petition. The Hearing Officer shall then hear testimony from the Tenants in the affected Covered Rental Units. The Hearing Officer may continue the hearing and request additional information from the Landlord or Tenant before issuing a written decision. The Hearing Officer shall have the power to issue orders to keep order and decorum during the hearing. All hearings conducted by the Hearing Officer shall be open to the public. c. The Hearing Officer may, in his or her discretion, grant a continuance of the hearing date upon a request and a showing of good cause by the Landlord or Tenant. The request must be made in writing and be received by the Hearing Officer at least five (5) business days prior to the hearing date. In the instance of a Landlord's continuance request, the Landlord must personally deliver a copy of the request to the affected Tenant(s). In the instance of a Tenant's continuance request, the Tenant must personally deliver a copy of the request to the Landlord. In no event shall the continuance be longer than fifteen (15) calendar days from the originally scheduled hearing date. d. The cost of the hearing, including but not limited to a Hearing Officer’s fee, shall be borne by the petitioner.
3. Evaluation of Petitions. In evaluating the petitions from a Landlord or Tenant, the Hearing Officer shall consider all relevant factors that may potentially impact a Landlord's ability to obtain a fair and reasonable return and shall consider the basis for the calculation of any increase in Rent. Relevant factors may include, but are not limited to, changes in costs to the Landlord attributable to increased utility rates, trash collection rates, property taxes, insurance, advertising, variable mortgage interest rates, governmental assessments and fees, incidental services, employee costs, normal repair, maintenance, upgrading and addition of amenities or services, rent rolls, financial statements, expert
analysis, and relevant studies.
4. Hearing Officer Decision. After considering all the testimony and evidence submitted at the hearing, within twenty (20) calendar days after the conclusion of the hearing, the Hearing Officer shall issue a written decision denying, affirming or modifying the petition and shall adopt written findings in support of that decision. The written decision shall be served by first-class mail, postage prepaid on the Landlord and any Tenants in the affected Covered Rental Unit. The Hearing Officer's decision shall be final.
5. Judicial Review of Hearing Officer Decision. Any person directly aggrieved by an administrative decision of a Hearing Officer pertaining to a Petition for Relief from this Urgency Ordinance may seek judicial review in the Superior Court pursuant to Government Code Section 53069.4 and/or Code of Civil Procedure Sections 1094.5 and 1094.6.
6. Timing of Petitions and Hearing. Any petition that is timely filed before the expiration of this Urgency Ordinance may continue to be adjudicated. Relief may be granted retroactively to the date the petition was filed.
E. Violations and Enforcement. This Ordinance shall be punishable as set forth in Section 1-2.01 of Chapter 1 of Title 1 of the Maywood Municipal Code. In any action by a Landlord to recover possession of a Covered Rental Unit, the Tenant may raise, as an affirmative defense, any violation or noncompliance with the provisions of this Urgency Ordinance.
Section 4. Uncodified. This Ordinance shall not be codified.
Section 5. Inconsistent Provisions. Any provision of the Maywood Municipal Code or appendices thereto that conflicts with the provisions of this Urgency Ordinance, to the extent of such conflict and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Urgency Ordinance.
Section 6. Severability. If any section, subsection, sentence, clause, or phrase of this Urgency Ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Urgency Ordinance. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
Section 7. Sunset Date. This Urgency Ordinance shall expire by its own terms on April 8, 2023, unless otherwise extended or repealed by action of the City Council.
Section 8. California Environmental Quality Act. The City Council finds and determines that this Urgency Ordinance is not subject to the requirements of California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2), constituting an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment, and pursuant to Section 15060(c)(3) constituting an activity that is not a project as defined in Section 15378.
Section 9. Effective Date. This Ordinance is an urgency ordinance for the immediate preservation of the public peace, health, and safety within the meaning of Government Code Section 36937(b), and therefore shall be passed immediately upon its introduction and shall become effective immediately upon its adoption.
Section 10. Certification and Publication. The City Clerk shall certify to the passage and adoption of this Urgency Ordinance and shall cause the same to be published or posted in the manner prescribed by law.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Maywood at the special meeting of this 6th day of February 2023.
_______________________
Frank Garcia, Mayor
ATTEST: APPROVED AS TO FORM:
__________________________ ___________________________
Andrea Aguilar, City Clerk Roxanne Diaz, City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
CITY OF MAYWOOD )
I, Andrea Aguilar, City Clerk of the City of Maywood, do hereby certify that the foregoing Urgency Ordinance No. 23-01-U was adopted at a regular meeting of the City Council of the City of Maywood held on the 6th day of February, 2023 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
____________________________________
Andrea Aguilar, City Clerk