AgendaReport
TO:
HonorableMayor, CityCouncil &Membersof thePublic
FROM: Nikki FortunatoBasCouncil PresidentCouncilmember, District 2 KevinJenkinsCouncilmember, District 6
SUBJECT:
Just CauseAmendment RequiringActualInjuryFor BreachOf LeaseEvictions DATE: May25, 2023
RECOMMENDATION
Council President BasandCouncilmember JenkinsRespectfullyRequest That TheCityCouncil:ApproveAnOrdinanceAmendingTheJust CauseForEvictionOrdinance(OaklandMunicipalCOde8.22.360) ToRequireLandlordsToDemonstrateSubstantial Actual InjuryBeforeEvictingTenantsForBreachOf Lease
EXECUTIVESUMMARY
ThisproposedordinancewouldamendtheJust CauseFor EvictionOrdinancetorequireLandlordstodemonstratesubstantial actual injurybeforeevictingtenantsfor breachof lease. Thisproposal will helpavoidasurgeof evictionsleadingtoanincreaseinhomelessness. Thepurposeof thisamendment istolimit pretextual evictionsandevictionsbasedontrivial or technical violations, withtheunderstandingthatnot all leaseviolationsjustifyforfeitureof atenant’srental agreement.
BACKGROUND/ LEGISLATIVEHISTORY
On November 5, 2002, Oakland voters passed the Just Cause for Eviction Ordinance (Measure EE),codified in Chapter 8.22, Article II of the Oakland Municipal Code, establishing various tenantprotections and procedures pertaining to residential evictions in Oakland. The Just Cause for EvictionOrdinance plays a crucial role intheCity’songoingeffortstoslow, reduce, andprevent displacement andhomelessness within the City of Oakland and authorizes City Council to modify the Ordinance for thepurposeof addinglimitationsonalandlord'sright toevict.
MeetingOf TheOaklandCityCouncilJune6, 2023
Council President Bas, Councilmember JenkinsSubject: JustCauseAmendmentRequiringActualInjuryForBreachOfLeaseEvictionsDate: May25, 2023 Page2 Revisions to the Just CauseEvictionOrdinancehavebeenmadesincethen2002, includingMeasureJJin2016, which extended just cause protection to tenants in residential rental units first offered for rentbetween October 14, 1980, and December 31, 1995. On November 6, 2018, Oakland voters passedMeasure Y to amend the Just Cause for Eviction Ordinance. Measure Y removed the exemption forowner-occupied duplexes and triplexes and gave the City Council authority to add eviction protections.On November 8, 2022, voters passed Measure V, which expanded the Just Causefor EvictionOrdinanceto apply to all residential rental units built after December 31, 1995 and residential vehicular facilities,with the exception of ground-up new construction units that have received a Certificate of Occupancywithin the past 10 years. It also prohibited “no-fault” evictions fromgoing into effect during the schoolyear, if the householdincludesschool-agechildrenor educatorsemployedbytheOaklandUnifiedSchoolDistrict, and finallyit removedfailuretosignanewleaseasagroundfor eviction. TheCityCouncil mostrecently amendedtheJust Causefor EvictionOrdinanceonMay2, 2023, tofurther limit landlords' abilitytoevict tenants.
Theincreasedhousingpressuresfor residentsacrossarangeof lower andmiddleincomelevelswarrantsexpandedrent stabilizationandtenant protectionpolicies. Displacement throughevictionshasadirectimpact onthehealth, safetyand/or welfareof Oakland’sresidentsbyuprootingchildrenfromtheirschoolsandfriends, disruptinglongstandingcommunitynetworksthat areintegral toresidents’ welfare,forcinglower incomeresidentstopayunaffordablerelocationcosts, segregatinglow-incomeresidentsintolesshealthy, lesssafe, andmoreovercrowdedhousingthat isoftenfurther removedfromvital publicservicesandleavingresidentswithunhealthylevelsof stressandanxietyastheyattempt tocopewiththethreat of homelessness. Over60percent of occupiedhousingunitsinOaklandareoccupiedbyrenters, manyof whomwouldnot beabletolocateaffordablehousingwithinOaklandif displaced(U.S.CensusBureau, ACS2016).
Oakland continues to experience a severe housingshortageandanunprecedentednumber of unhousedormarginally housed residents. The City Council finds that reasonable regulation of aspects of thelandlord-tenant relationship is necessary to foster constructive communication, maintain an adequatesupply of a variety of rental housing options, and protect the health, safety, and general welfare of thepublic.
ANALYSISANDPOLICYALTERNATIVES
Forfeiture of a rental agreement or breachof leaseisadrasticlegal remedythat shouldbepursuedonlyindrastic circumstances. Rental agreements frequently contain a myriad of terms and restrictions, many ofwhich are not negotiated by tenants, andit isreasonabletolimit theextremeremedyof leaseforfeituretoviolationsthat aredirectlylinkedtoashowingof harm, asopposedtoleaseviolationsthat aretrivial or donot otherwiserisetoalevel that shouldtrigger thelossof housing.
MeetingOf TheOaklandCityCouncilJune6, 2023
Council President Bas, Councilmember JenkinsSubject: JustCauseAmendmentRequiringActualInjuryForBreachOfLeaseEvictionsDate: May25, 2023 Page3 ProposedAmendmenttoJustCauseOrdinance(JCO)
Tofurther protect tenantsandpromotehousingstability, theunderlinedlanguagewouldbeaddedtotherelevant sectionsof theJust CauseOrdinance. Seetheattachedlegislationfor thefull text.
2. Thetenant hascontinued, after writtennoticetocease, tosubstantiallyviolateamaterial termof thetenancyother thantheobligationtosurrender possessiononproper noticeasrequiredbylaw. Toestablishasubstantial violationof amaterial termof thetenancy, thelandlordmustdemonstrateall of thefollowing: (1) that theviolationcausedsubstantial actual injurytothelandlordor toother residents; (2) that thetenant’sconduct wasunreasonable; and(3) that thetermof tenancyisreasonable, legal, andwasacceptedinwritingbythetenant. d. Actual injurymust beadirect result of thetenant’slease. Injuryisnot limitedtopersonal or physical injury. Substantial actual injuryincludesbut isnot limitedtotheharmcausedbyatenant’sfailuretocomplywithincomerecertificationrequirementsfordeed-restrictedaffordablehousingunits. e. Anoticetoceasemust stateallegationsinsufficient detail sothat areasonablepersonwouldunderstandtheallegedviolationandresultant injury, includingthetermof theleaseallegedlyviolated, thedateof theviolation, andtheinjurythat occurredasaresultof theviolation.
FISCALIMPACT
TheCityneedstopreparefor theendof theevictionmoratorium. Thoughwedon’t knowthetrueimpactonlow-incomehouseholds, wecanassumeandhaveseendata, suchastheCaliforniaDivide 1 , thatpredictsawaveof evictionsandtheneedfor financial support andservicestoprevent homelessness.
OnMay24, 2023, theOaklandsidearticleEvictionscasesarerisingfast afterendof AlamedaCountymoratoriumreportedthat “AlamedaCounty’sevictionbanexpiredApril 29. The243evictionlawsuitsfiledinthefirst 19daysof Mayareroughlyquadruplethe65filedinApril, andthe57inMarch.”Andnotethat Oakland, BerkeleyandSanLeandrostill haveour evictionmoratoriumsinplace.
Staff ImplementationOakland’sHousingandCommunityDevelopment Department’sRental Adjustment ProgramisalreadyconductingoutreachandeducationontheJuly15, 2023endof theevictionmoratoriumandthenewtenant protections, passedbyCityCouncil onMay2, 2023. Thisworkincludes:● Websiteupdatessuchasthispage:https://www.oaklandca.gov/news/2023/oakland-eviction-moratorium-phase-out● UpdatedFAQandinfosheets 1 https://calmatters.org/projects/late-on-rent-how-california-renters-are-bracing-for-an-eviction-tsunami/ MeetingOf TheOaklandCityCouncilJune6, 2023
Council President Bas, Councilmember JenkinsSubject: JustCauseAmendmentRequiringActualInjuryForBreachOfLeaseEvictionsDate: May25, 2023 Page4 ● Mailerstopropertyowners● Digital notificationcampaignbetweenJunethroughAugust● Videoonrightsandresponsibilitiesof tenantsandlandlords● Workshopswill increasethroughtheendof theyear● Outreachwithnewsoutlets, stakeholders, andOaklandofficials
PUBLICOUTREACH/ INTEREST
Council President BasandCouncilmember Jenkinshaveheldmeetingswithconstituents, small propertyowners, propertyowner associations, andtenant rightsorganizationssincetheintroductionof thelastroundof tenant protectionsinMarch2023. Tofurther developthispieceof legislationtheytooktheirfeedbackintoaccount andhavemet againwithsomeof thesesameorganizations, andwill continuetolistentoinput andfeedback.
COORDINATION
Council President Basand Councilmember JenkinshaveworkedwiththeOfficeof theCityAttorneyonthislegislationandwill consult withtheHousingandCommunityDevelopment Department.
SUSTAINABLEOPPORTUNITIES
Economic: Thislegislationwill protect Oakland’slow-incomerenterstoimprovetheir housingstabilityandavoiddisplacement therebycreatingeconomicstability.
Environmental: Therearenodirect environmental impactsassociatedwiththeCityCouncil actionrequestedinthisagendareport, however thislegislationcanresult inincreasedenvironmentalsustainabilityfor Oaklandersimpactedbyclimatechangeasoftenthecommunitiesmost impactedbyracial andeconomicinequitiesarethosethat benefit themost fromremaininghousedandincommunity.
Race&Equity: Thislegislationcanresult inincreasingracial equityfor Oaklandersasdemographicdataindicatesthat theCOVID-19healthpandemicdisproportionatelyimpactsOakland’slower-incomeresidentsandinparticular theAfricanAmericanandLatinxcommunities. Theassociateddual crisesofhomelessnessandhousinginstabilityalsodisproportionatelyimpact thesesamecommunities.
ACTIONREQUESTEDOFTHECITYCOUNCIL
Council President BasandCouncilmember JenkinsRespectfullyRequest That TheCityCouncil:ApproveAnOrdinanceAmendingTheJust CauseForEvictionOrdinance(OaklandMunicipalCOde8.22.360) ToRequireLandlordsToDemonstrateSubstantial Actual InjuryBeforeEvictingTenantsForBreachOf Lease MeetingOf TheOaklandCityCouncilJune6, 2023
Council President Bas, Councilmember JenkinsSubject: JustCauseAmendmentRequiringActualInjuryForBreachOfLeaseEvictionsDate: May25, 2023 Page5 For questionsregardingthisreport, pleasecontact CinthyaMunoz-Ramos, Chief of Staff toCouncilPresident Nikki FortunatoBas, District 2at [email protected].
Respectfullysubmitted,
Nikki FortunatoBas KevinJenkinsCouncil President, District 2 Councilmember, District 6 Preparedby:CinthyaMunoz-Ramos, Chief of StaffCouncil District 2 Attachment:● Legislation
MeetingOf TheOaklandCityCouncilJune6, 2023