City of PomonaLong Term Implementation of a Rent Stabilization Ordinance Study Session
Prepared by RSG, Inc.
Agenda
Today’s study session
Overview of Pomona’s rent stabilization ordinances
Work done to date
Rent stabilization topics
City Council questions
Community feedback
Report out
Next steps
Purpose of Today’s Study Session
Overview of Rent Stabilization in Pomona
Urgency Ordinance No. 4320 and 4329
Effective August 1, 2022
Urgency Ordinance No. 4329 amended relocation assistance amounts on April 17, 2023 Established rent stabilization and just cause protections Exempt properties include:
Housing constructed after February 1, 1995
Duplexes unless a unit is not occupied by owner
Single family homes, townhomes, and condominiums
Deed-restricted affordable housing
Urgency Ordinance No. 4320 and 4329
Rent increase limit: Lesser of 4% or change in CPI
Just cause protections
Property owners must cite a for cause or no fault reason to terminate tenancy No fault terminations receive relocation assistance ranging from $5,926 to $15,377 Established petition process
Petition for Relief - for property owners seeking fair return Petition for Noncompliance - for tenants who allege there is a violation
Work Done to Date
Work Done to Date
Urgency Ordinances:
Created program materials, responded to calls and emails, and reviewed submitted petitions Meetings to Date:
May 30th – online webinar presentation
June 15th – 1st in-person community meeting
July 12th – 2nd in-person community meeting
Today’s Session
Presenting topics to research and gathering community input
Rent Stabilization Research Topics
Rent Limits
Rent Increase Limit
The % amount that property owners are allowed to increase rents by.
Purpose:
Main element of rent stabilization programs
Provide stability/affordability for renters
Balance interests of property owners and tenants
Generally 2-8% or the change in CPI for the jurisdiction's region.
Rent Banking
Allows saving rent increases that property owners are allowed to use but choose not to.
Property owners can add what they saved to the annual rent increase.
Limits are placed on rent banking to prevent abrupt rent increases.
Vacancy Control/Decontrol
"Vacancy decontrol”:
Allows property owners to reset rents to market rates upon vacancy. "Vacancy control”:
Rent restrictions kept in place even after unit is vacated.
The 1995 Costa-Hawkins Rental Housing Act:
Allows "vacancy decontrol" of rent-controlled units
Questions
City Council
Petitions
Petition Review and Hearings
Petitioning Process
Most cities have a process to review petitions related to rent increases, fair returns, and violations.
Role of Hearing Officers/Examiners/Board
Appointed officers who review evidence and issue decisions.
In some cases, the Board hears items first.
Often filed to increase rents beyond the limits to ensure a fair return or cover capital improvement expenses, such as:
Major renovations
HVAC
Roof replacements
Petition Types
Landlord Petitions:
Capital improvements
Fair return
Petitions for exemptions
Tenant Petitions:
Improper rent increase
Decrease in housing services
Habitability issues
Undue burden from applying banked rent increase
Petition Fees
Fee paid by property owners or tenants when filing a petition.
Intended to cover the costs of administering the petition process and hearing.
Tenants are typically not required to pay a fee.
Petition Authority
Presides over the petition process, including hearings and appeals.
Some cities have a board while others utilize internal staff or contract hearing officers.
Appeals
Allow for any person aggrieved by the decisions of the hearing officer to appeal to the board.
Or in some case the reverse where a board decision is appealed to a hearing officer.
May include time restrictions to file an appeal.
May accept or change the decision of the hearing officer.
Questions
City Council
Administration and Enforcement
Rental Registry
Registration system for rental properties
Identifies rental units covered by the ordinance.
Tracks rent increase and vacancy data.
Rental Registry Fee
Fee paid by property owners when registering their unit(s).
Some cities allow 50% pass throughs to tenant
Collected to cover the cost of the program.
Amount varies but generally range from ~$20 to ~$250.
Determined through a fee study.
Inspections
Can include habitability inspections as part of Ordinance requirements before rent increases, petition decisions, and claims of exemption.
Board or Hearing Officer may request prior to making a decision on a petition.
Property owners and tenants may initiate inspections to ensure safety requirements.
Typically, in communities with voter approved initiatives.
May refer to City Code Enforcement, City Housing HQS inspectors, or utilize contractors to conduct inspections.
Administrative Fines and Penalties
Enforce violations and increase compliance.
Examples: non-compliance notices, citations, and forwarding cases the City prosecutor as needed.
Other Factors
Mediation Process
Parties present their case to a third-party whose goal is helping the two sides reach a settlement.
A few cities require mediation be utilized before petitions can be filed.
Can be voluntary or mandatory.
Relocation Assistance
Applies to the just cause eviction portion of the rent stabilization ordinance Financial compensation owed to tenants when terminating tenancy under a "no fault" reason.
Amounts vary widely by jurisdiction.
Intended to support tenants in finding housing.
Questions
City Council
Community Feedback
We want to hear from you
Questions for the Community
Group Exercise – 35 minutes
Breakout into groups
Each group has 5 large flip charts with the questions
Each individual in group should use sticky notes to brainstorm as many responses as they would like for each question and place them on flip chart (4minutes) After everyone has put down ideas, group will rank the responses with the dots labeled 1 and 2 (2minutes) 2 = Most Important
1 = Second Most Important
Groups have 6 minutes to complete this task for each question. Staff will prompt you when to move onto the next question.
Report Out
Group Exercise Report Out
What were the major outcomes in response to each question RSG will take the feedback and incorporate into our research and analysis
Next Steps
Next Steps