CITY OF POMONA
COUNCIL REPORT
August 1, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Sonia R. Carvalho, City Attorney
SUBJECT: ADOPTION OF URGENCY ORDINANCE REGARDING RENT STABILIZATION AND JUST CAUSE EVICTION PROTECTIONS FOR RESIDENTS FACING HOUSING INSTABILITY RECOMMENDATION:
It is recommended that the City Council adopt the following urgency ordinance:
URGENCY ORDINANCE NO. 4320 – AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA AMENDING CHAPTER 30 OF THE POMONA CITY MUNICIPAL CODE TO ADD DIVISION 4 TO ARTICLE VIII PERTAINING TO “RESIDENTIAL RENT STABILIZATION” EXECUTIVE SUMMARY/DISCUSSION:
The Mayor and City Council have previously heard public comment from those expressing support for bringing forward, for Council consideration, an ordinance creating a regulatory framework and and other protections for residents facing housing instability. The City Attorney was asked to prepare a discussion draft of an urgency ordinance based on recommendations from the Council Housing Committee and comment provided at a special study session of the Council. As a result, the City Attorney has provides Council with the option to: Adopt an urgency ordinance now and direct staff to continue to study and develop the internal structure needed to adopt and implement a permanent ordinance at a later date. The proposed proposed Urgency Ordinance (Attachment No. 1) is attached.
FISCAL IMPACT: Establishing rent restrictions and just cause eviction regulations with enforcement mechanisms such as a rent review board or individual independent reviewer could cost several million dollars considering the necessary staff and legal support. As with other programs of this nature, the City may recover some or all of these costs through rent registration fees which would need to be studied.
PREVIOUS RELATED ACTION:
In 2020 and 2021 the City Manager and the City Council took actions to protect tenants using emergency powers and authorizations related to addressing impacts of the COVID Pandemic. Many of those emergency powers and authorizations have now expired. The City Council has also received correspondence and listened to many testifying at public meetings about the need for regulations to protect renters. The Council Housing Committee met to discuss a possible urgency ordinance and the City Council held a special meeting work study on Tuesday, July 26, 2022 to hear feedback from the community and city councilmembers.
DISCUSSION:
Details of Proposed Urgency Ordinance
The proposed ordinance:
(a) limits increases in rent on residential real properties as defined in the ordinance, in the City of Pomona, to three percent (3%) and allows for a cost of living adjustment of up to (5%) or the consumer price index CPI, whichever is less. More than one rent increase in any twelve (12) month period, are prohibited, unless expressly exempt under the Costa-Hawkins Rental Housing Act codified in California Civil Code section 1954.50; (b) addresses overpayments;
(c) allows for a reasonable rate of return for owners and a process for owners to follow; and (d) provides for “for-cause” terminations.
As an urgency ordinance the proposed Ordinance requires five affirmative votes of the City Council pursuant to Section 510 of the City Charter. An ordinance declared by the Council to be necessary for the immediate preservation of the public peace, health or safety, containing a declaration of the facts constituting the urgency, and passed by a five-sevenths (5/7) vote of those present.
Because AB1482, a state law, also provides rent stabilization and just-cause eviction protections in California we were asked to provide a comparison of the terms of AB1482 and the proposed Urgency Ordinance. The comparison is set forth below.
Subject: RE: AB1482
AB 1482
Terms
Proposed Urgency Ordinance
Allows a 5% rent increases
Allows a cost of living up to 5% or a maximum of 10%
No maximum rent or a limit on how much rents can be raised between one tenant and the next Rent Increases
Rent capped at August 1, 2022 level during term of urgency ordinance Allows a 5% rent increase or the change in the Consumer Price Index, whichever is less No more than one rent increase during any 12-month period Applies only to those residing in a unit for more than one year At-fault evictions are permitted for:
failure to pay rent
criminal activity
breaching the lease
but, only after owner provides notice and opportunity to cure No-fault evictions are permitted for:
owner moving into the unit
owner is converting an apartment into a condo project
owner is renovating or demolishing a unit
if, any of the above are exercised the landlord must offer relocation of one month’s rent Eviction Protections
Applies once urgency ordinance is adopted
For cause termination
Failure to pay rent
Material breach of rental agreement
Refusal to allow landlord to enter rental unit
Tenant or Tenant’s guest are creating a nuisance
Using rental unit for illegal activity
No-fault evictions permitted for:
Demolishing rental unit
Removal permanently from rental market
Perform work on rental unit
Owner of use or occupancy by resident manager or family member Compliance with government agency’s order to vacate
Tenant no longer qualifies for governmental assistance
No limit on rent increases between vacancies
Increases after Vacancies
No limit on rent increases between vacancies
None provided
Legal Assistance/Enforcement
Directs staff to explore additional legal resources for tenants and provides enforcement options for tenants as well as an administrative process January 1, 2030
Expires
Until permanent ordinance is adopted
Yes
Applies to Multi-Family Units
Yes
new units constructed until unit is 15 years old or older duplexes with one unit occupied by the owner
single family homes and condos, unless owned by a corporation or real estate investment trust Does not apply to
Units constructed after February 1, 1995
Single family residences, condos, or townhomes, unless corporate or REIT owned Dwelling unit with subdivides interest
Dwelling unit which receives housing assistance
Prepared by:
_____________________________
Sonia R. Carvalho
City Attorney
ATTACHMENT:
Attachment No. 1 – Urgency Ordinance No. 4320