November 27, 2023 www.cityofpaloalto.org
Palo Alto
Rental Registry Program
Purpose of Tonight's Meeting
2 Review staff recommendations to:
• Adopt an ordinance that would establish a new rental registry program
• Feedback on rental registry program implementation strategy Background
3 • Council direction from November 2021 to prepare rental registry program
• Staff research and engagement with renters and landlords • Discussions with the Council Housing Ad Hoc Committee, Planning & Transportation Commission, and Human Relations Commission
• Above effort informed program recommendations
Why a Rental Registry?
4 A rental registry allows the City to:
▪ Learn more about the Palo Alto
rental landscape
▪ Support Council policy
considerations related to renter
protections through additional
data
▪ Support the implementation of
the City’s Housing Element goals
to maintain and support
landlord / tenant programs
There are approximately
11,400 rental units in Palo Alto:
• 70% of rental units are
multifamily housing,
properties with 3-units or
more.
• 30% of rental units are
includes nearly 3,400 single
family residential
units, J/ADUs and duplexes.
Draft Ordinance Overview
5 Types of Rental Units Included in Draft Ordinance
6 Any housing structure offered for rent or lease in
Palo Alto, including:*
▪ Multi-family apartment buildings
▪ Single family homes, ADUs/JADUs, duplexes**
*Excludes rentals of attached bedrooms of a landlord -occupied dwelling where the landlord and renter(s) share living facilities **Staff proposes phasing participation: multi-family for the first two years, then participation of single family rentals, ADUs/JADUs, and duplexes
Ordinance Requirements
7 ▪ Initial registration
▪ Including: landlord contact information, rental unit
characteristics, rent information, and tenant information* ▪ Annual registration renewal
▪ Affidavit
▪ Event-based reporting
▪ Ability to collect fees, administer penalties, issue waivers *Data collected in the registry is subject to Public Records Act Proposed PAMC Chapter 9.72 Minor Amendments
8 Rental units would be registered only in one registry, instead of two Residential Rental Registry
Program
(new PAMC Chapter 9.65)
• Establishes new
Rental Registry Program
• RRP would collect the
information required by
existing PAMC Chapter 9.72
Landlord/Tenant Dispute
Response
(existing PAMC Chapter 9.72)
• Currently requires rental unit
registration
• Minor amendments refer
reader to new PAMC Chapter
9.65 for registration
information and fee
information
Rental Registry Program Implementation
9 Phased implementation
▪ Collect data on 70% of rental housing stock for two
years (300 registrants)
▪ Expand to all landlords in third year (single family
homes, J/ADUs (3000+ registrants)
Rental Registry Implementation Strategy
10 Why a phased approach?
✓ Allows for program
development & opportunity
to address system or
technology issues;
✓ More timely launch;
✓ Benefit from experience before
significant expansion;
✓ Minimize user frustration; and,
✓ Enables more thoughtful
resource impact analysis
Fees & Fee Waivers
▪ ~$40 / unit participation fee
▪ Year 1: Waive participation fees
▪ Year 2: Fees required for multi-family property owners (3 or more units) ▪ Year 3: Collect multi-family fees; waive first year fees for single family homes J/ADUs ▪ Year 4: All fees paid, no waivers, program costsrecovered through fees Data Collection (Attachment E)
▪ Contact Information
▪ Rental Unit Characteristics
▪ Tenancy & Rental Information
Rental Registry Implementation Strategy
11 Event Based Reporting
▪ Notice to Quit
▪ Eviction Notice
Enforcement / Penalties
▪ $50 fee / unit for not registering a qualifying unit, with fee escalation ▪ Enforcement limited to complying with registration requirements ▪ Private party action through civil court for violation to renter protection ordinances Rental Registry Implementation Strategy
12 Resources
▪ Estimated two FTE at full program implementation
▪ 1 FTE initially with proposed phased approach
▪ Initial program implementation costs ~$70K /Annual costs ~68K Rental Registry Implementation Strategy
13 Key Considerations
13 Program Elements Considerations
Program Phasing Phased program implementation by rental type over 3 years Fee Waivers & Funding
Impacts
Fee waivers in year 1 (multifamily) and year 3 (single family); supports phased implementation with all fees applied in program year 4 Resource Needs and
Cost Estimate
Program requires additional staff resources. The three-year cost estimate is $1.24M - $1.42M (or approximately $414,000 - $474,000 per year) which includes staffing (up to 2 FTEs) and RRP software and consultant contract.
Rental Unit Registration Registration form requires landlord contact information, rental unit characteristics, rent information, and tenancy information.
Annual Reporting and
Event-Based Updates
Program requires annual registration and updates for qualifying events (e.g., evictions or quit notices)
Enforcement/Penalties Program establishes financial penalties for not registering a property and supports the City's ability to enforce program implementation Timeline
15 Rental Registry Program Components
12 1. Adopt Ordinance in Municipal Code
2. Select Consultant / Allocate Staff Reources
3. Publish Administrative Regulations
4. Establish Fee / Implement the Program
Development
Rental Registry Program Milestones and Timeline
14 • Released RFP for
Consultant Services
• Community Meeting
• HRC & PTC Meetings
Spring 2023
• Complete Evaluation
of Consultant
Proposals
• Issued Notice of
Intent to Award
Consultant Contract
• Housing Ad Hoc
Meeting
Summer 2023 • City Council
Review
• Ordinance
• Program
Development
Feedback
Fall 2023
• City Council
Review
• Consultant
Contract
• Fee
Establishment
• City staffing
Winter/Spring
2024
Council directed exploration of this program (Nov. 2021) and staff conducted research and outreach in 2022
▪ Adopt an Ordinance establishing a mandatory rental registry program that collects rental unit information for multifamily units and single-family rental units, enables cost recovery fees, and allows for enforcement.
▪ Direct staff to commence with a three-year implementation phasing initially with multifamily housing (3-units) and above, expanding to all rental properties including single family homes in year three.
▪ Return to Council with a contract for professional services, authorization for one new full-time position in FY 2024-2025, and resolutions as detailed in the staff report.
Staff Recommendations
15 Rebecca Atkinson
Planner
[email protected]
(650) 329-2596