City of Pomona 505 S. Garey Ave
Pomona, CA 91766
Regular Meeting Minutes
City Council / Housing Authority / Successor Agency to the Redevelopment Agency
Vice Mayor Nora daria
Councilmember John Notte
Councilmember Victor Preciado
VISION STATEMENT
Pomona will be recognized as a vibrant, safe, beautiful community that is a fun and exciting destination and the home of arts and artists, students and scholars, business and industry.
Monday, July 15, 2024 7:00 PM Council Chambers
CALL TO ORDER
Mayor Sandoval called the City Council Closed Session to order at 5:31 p.m.
ROLL CALL
Present: Mayor Tim Sandoval
Vice Mayor Nora Garcia
Councilmember John Nolte
Councilmember Victor Preciado
Councilmember Elizabeth Ontiveros-Cole
Councilmember Steve Lustro
Absent: Councilmember Robert Torres
PUBLIC PARTICIPATION
Live Comments were as follows:
There were no live comments for closed session agenda items.
CLOSED SESSION
A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Pursuant to Government Code 54956.9(a) and (d) (1))
City Council / Housing Authority / Meeting Minutes July 15, 2024 Successor Agency to the
Redevelopment Agency
City of Pomona, et al. v. M & A Gabaee, et al.
Los Angeles County Superior Court
Case No. 22PSCV03011
City of Pomona v. SQM North America Corporation
U.S.D.C. No. 2:11-cv-00167-RGK-JEM
Vincent Terrell v. City of Pomona
Los Angeles County Superior Court
Case No. 20PSCV00677
CALL TO ORDER
Mayor Sandoval called the City Council Meeting to order at 7:00 p.m.
CITY ATTORNEY REPORT OUT FROM CLOSED SESSION
City Attorney Carvalho stated there was no reportable action.
PLEDGE OF ALLEGIANCE
Mayor Sandoval led the pledge of allegiance.
ROLL CALL
Present: Mayor Tim Sandoval
Vice Mayor Nora Garcia
Councilmember John Nolte
Councilmember Victor Preciado
Councilmember Elizabeth Ontiveros-Cole
Councilmember Steve Lustro
Councilmember Robert Torres
Absent: None
STAFF PRESENT
Anita Gutierrez, City Manager
Sonia Carvalho, City Attorney
Rosalia Butler, City Clerk
Karla Shipman, Assistant City Clerk
Michael Ellis, Police Chief
Yvonne Morgan, contracted by the City, provided translation services. )
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PRESENTATIONS
* A Proclamation by the City Council of the City of Pomona Proclaiming August 6, 2024 as "National Night Out" in the City of Pomona
Mayor Sandoval presented the proclamation to Sgt. Rios, Community Service Officers Denise Hernandez, Courtney Louie and Diana Ngo from the PD Community Programs Unit. Sgt. Rios invited the community to come out and participate in National Night Out, which would be held in the Civic Center on Tuesday, August 6.
MAYOR/COUNCILMEMBER COMMUNICATIONS
Councilmember Preciado attended the LA Care backpack giveaway and stated the Pomona Valley Pride Center celebrated their 5-year anniversary in the City.
Councilmember Preciado announced Conceptual Art Therapy held an event in their gallery to fundraise for its upcoming art program. Councilmember Preciado attended the Vietnamese Community's Graduation Steps celebration. Lastly, Councilmember Preciado highlighted the City's last Summer Concert in the Park and the Art Walk event held in downtown Pomona.
Councilmember Ontiveros-Cole attended the LA Care backpack giveaway, the Pomona Valley Pride Center's fifth anniversary celebration, and the Vietnamese Community's Graduation Steps celebration. Councilmember Ontiveros-Cole also commented on the importance of human life, and respecting differences of opinion.
Councilmember Nolte attended the LA Care backpack giveaway and described the other services available at that community center. Councilmember Nolte also attended the Conceptual Art Therapy gallery fundraising event. Councilmember Nolte participated in a ride-along to see the work completed for the gold line. Councilmember Nolte thanked Lt.
Haggerty for hosting District 1's Area Commander meeting, and discussed the impact the Office of Violence Prevention has had in the community.
Vice Mayor Garcia invited the community to attend the Pomona Library's summer program events on Wednesday afternoons, and thanked the Housing Dept. Staff for giving her a tour of the Sanctuary Apartments.
Councilmember Torres gave thanks to Police and LA County Fire Dept. for their responses on Fourth of July. Councilmember Torres attended the LA Care backpack giveaway, and stated he was looking forward to attending National Night Out.
Mayor Sandoval acknowledged the firefighter that lost his life over the weekend's event, and discussed the importance of respecting differences of opinions. Mayor Sandoval gave thanks to Parks and Recreation staff for successfully putting on the City's summer concerts. Mayor Sandoval gave thanks to the Housing Dept. staff as well for their work in:
supporting and assisting families find permanent housing.
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CITY MANAGER COMMUNICATIONS
City Manager Gutierrez advised Consent Calendar Item No. 4 needed to be continued pending information from staff. City Manager Gutierrez also announced there would be a City Council Special Study Session August 7, at 6 p.m. at Palomares Park regarding housing.
PUBLIC PARTICIPATION
At the direction of the City Council Emergency Sub Committee, beginning with the July 18, 2022 Council meeting, emailed comments will no longer be read into the record during Council meetings. However, they will be included as part of the record/meeting minutes.
Live Comments were as follows:
Teresa Lee invited the public to attend TAF's hosted event in which constituents will hear from the two candidates running for the Los Angeles District Attorney office in the November 2024 election. The event would take place on Sunday, July 21 at the AQMD Auditorium in Diamond Bar.
Virginia Villaseñor discussed the impacts her business experiences because of unpermitted sidewalk vendors operating without business license.
Yesenia Miranda Meza discussed the need for stronger tenant protections, to address the housing crisis and establish a permanent rent-stabilization ordinance.
Eunice Rollins discussed the senior community's need for affordable housing in the City of Pomona.
Evelia Rocha requested stronger tenant protections, and listed various other requests as ways in which the City could address the housing crisis.
Guadalupe Herrera discussed the challenges she faces as a senior looking for new housing in Pomona.
Sally Martin discussed the challenges she faced with eviction and the difficulty in finding affordable housing in Pomona.
Zé Ferreyra discussed the lack of affordable housing in Pomona and urged the City establish a permanent rent stabilization ordinance.
Miranda Sheffield urged the City pass a permanent rent stabilization ordinance to protect the most vulnerable tenants.
Josh Sanchez discussed high rents in the City being a prominent cause of more families falling into homelessness.
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Alejandra O. discussed lack of affordable housing in the City and the need for rent control.
Joe Boyer thanked the City for re-paving E. La Verne, but urged the re-striping of that street in order to establish stronger safety measures.
Beth Brooks discussed various concerns with trash hauling services, sidewalk vendors, street sweeping services, rent control and homelessness.
Lorraine Canales invited the City Council to attend the Optimist Club of Pomona's award ceremony for public safety officers.
Mayela Yibale discussed various safety concerns at Palomares Park and Washington Park.
Sean Holmes discussed concerns with Governor Newsom's proposed budget cuts.
Greg Estel discussed concerns with unpermitted sidewalk vendors operating in the City.
The following people submitted speaker cards in support of Pomona United for Stable Housing but did not wish to speak:
Gwendolyn Keys Juan Perez Tina Velasco
Graciela R. Conchas Martha Vargas Xiomara Barrera
Mike Suarez Jacqueline Patiño Melvin Harris
Abigail Perez Efrain Zamora Maria Galuan
Alexa Perez Josue Trujillo Anel Hernandez
Yessica Limon Wilbert Trujillo Emma Perez
Julianna Piña Jesus Sanchez Doming Rayo
Victor Piña Thomas Morales
Eder Blanco Natalie Perez
CONSENT CALENDAR
MOTION BY COUNCILMEMBER NOLTE, SECOND BY COUNCILMEMBER GARCIA, CARRIED 7-0, to approve the entire Consent Calendar except for Item No. 3 which was pulled by Vice Mayor Garcia, Item No. 4 which was continued to a future meeting, Item No. 5 which was pulled by Councilmember Lustro, Item No. 6 and Item No. 12 which were both pulled for public comment.
Approval of City Council/Housing Authority/Successor Agency to the Redevelopment Agency Meeting Minutes
It is recommended that the City Council approve the following City Council/Housing Authority/Successor Agency to the Redevelopment Agency Meeting Minutes:
June 17, 2024 Regular Meeting Minutes
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MOTION BY COUNCILMEMBER NOLTE, SECOND BY COUNCILMEMBER GARCIA, CARRIED 7-0, to approve the City Council/Housing Authority/Successor Agency to the Redevelopment Agency Regular Meeting Minutes of June 17, 2024.
2. A Resolution to Amend the FY 2024-25 CIP Budget; and Award of Construction Contract to California Professional Engineering, Inc. in the Amount of $377,225 for "Streetlights yv Citywide (CDBG) (FY 22-23 to FY 24-25)," Project No 428-2590-XXXXX-64777
It is recommended that the City Council approve the following actions:
1) Adopt the following resolution:
RESOLUTION NO. 2024-101 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE FY 2024-25 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET BY UNAPPROPRIATING $73,000 OF GENERAL FUNDS FROM "ADA CURB RAMPS AND PATH OF TRAVEL - CITYWIDE (CDBG) (FY 21-22)," PROJECT NO. 428-2590-XXXXX-67934 AND $17,775 OF MEASURE R FUNDS FROM "STREET PRESERVATION - LOCAL (FY 21-22)," PROJECT NO. 428-2590-XXXXX-68572, AND APPROPRIATING THOSE FUNDS TO "STREETLIGHTS - CITYWIDE (CDBG) (FY 22-23 TO FY 24-25), PROJECT NO. 428-2590-XXXXX-64777
2) Find that the Project referenced above is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (c) and that the proposed project will not have significant effect on the environment; 3) Find that the apparent low bidder, Metrocell Construction, Inc., is not responsive bidder;
4) Award a construction contract to California Professional Engineering, Inc. for "Streetlights - Citywide (CDBG) (FY 22-23 to (FY 24-25)," Project No. 428-2590-XXXXX-64777, to include all Base Bid items in the amount of $377,225; and
5) Authorize the City Manager, or her designee, to execute the construction contract/agreement and related documents (permits, etc.).
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MOTION BY COUNCILMEMBER NOLTE, SECOND BY COUNCILMEMBER GARCIA, CARRIED 7-0, to adopt Resolution No. 2024-101; and to find that the Project referenced above is categorically exempt from the California Environmental Quality : Act (CEQA) pursuant to Section 15301 (c) and that the proposed project will not have significant effect on the environment; and to find that the apparent low bidder, Metrocell Construction, Inc., is not responsive bidder; and to award a construction contract to California Professional Engineering, Inc. for "Streetlights - Citywide (CDBG) (FY 22-23 to (FY 24-25)," Project No. 428-2590-XXXXX-64777, to include all Base Bid items in the amount of $377,225; and authorize the City Manager, or her designee, to execute the construction contract/agreement and related documents (permits, etc.).
3. Adoption of a Resolution Amending the FY 2024-25 Operating Budget for the Outdoor & Active Youth Program and Accept Grant Funds from Pomona Unified School District
It is recommended that the City Council take the following actions:
1) Adopt the following resolution:
RESOLUTION NO. 2024-105 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE FY 2024-25
OPERATING BUDGET FOR THE OUTDOOR & ACTIVE YOUTH PROGRAM
GRANT FUND IN DECREASING REVENUE ESTIMATES AND
APPROPRIATION BY $250, 150 AND ACCEPTING FUNDS OF $676,100 FROM
POMONA UNIFIED SCHOOL DISTRICT IN GRANT FUNDING
2) Authorize the City Manager, or designee, to execute an agreement and any subsequent amendments subject to review by the City Attorney. *This item was pulled by Vice Mayor Garcia for comment.
Vice Mayor Garcia commented on the City's need for increased field space and requested the creation of a field use agreement with Pomona Unified School District.
Councilmember Preciado expressed support for Vice Mayor Garcia's suggestion and requested from staff an update on which community youth programs are active.
MOTION BY COUNCILMEMBER PRECIADO, SECOND BY VICE MAYOR GARCIA, CARRIED 7-0, to adopt Resolution No. 2024-105 and to authorize the City Manager, or designee, to execute an agreement and any subsequent amendments subject to review by the City Attorney.
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4. Resolution Approving the Submittal of Delinquent Solid Waste (Trash) Collection Accounts to the County Auditor-Controller to Be Included as a Special Assessment on the FY 2024-25 Property Tax Roll
It is recommended that the City Council take the following actions:
1) Adopt the following resolution:
RESOLUTION NO. 2024-107 - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF POMONA, CALIFORNIA, AUTHORIZING AND DIRECTING THE
LOS ANGELES COUNTY AUDITOR-CONTROLLER TO INCLUDE SOLID WAST
DELINQUENT SOLID WASTE (TRASH) COLLECTION ACCOUNTS FROM
ATHENS SERVICES AS A SPECIAL ASSESSMENT TO BE COLLECTED AT
THE SAME TIME AND IN THE SAME MANNER AS COUNTY TAXES
2) Approve the lien list of delinquent Solid Waste (Trash) collection accounts be submitted to the Los Angeles County Auditor-Controller no later than August 1, 2024, to be included as a special assessment for the respective affected parcel on the County property tax rolls.
THIS ITEM WAS CONTINUED TO A FUTURE MEETING, NO ACTION WAS TAKEN.
Amend the Fiscal Year 2024-25 Operating Budget by Appropriating $550,000 from the Refuse Administration Fund Balance to Allow for the Purchase and Installation of Additional New Citywide Street Sweeping Signs
It is recommended that the City Council take the following actions:
1) Adopt the following resolution:
RESOLUTION NO. 2024-109 - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF POMONA, CALIFORNIA, AMENDING THE FISCAL YEAR 2024-25 OPERATING BUDGET BY APPROPRIATING $550,000 FROM THE
REFUSE ADMINISTRATION FUND BALANCE TO ALLOW FOR THE
PURCHASE AND INSTALLATION OF ADDITIONAL NEW CITYWIDE STREET
SWEEPING SIGNS
2) Award a purchase order to Safety Network Traffic Signs, Inc. in the amount of $350,000 for the purchase of new Citywide street sweeping signs. *This item was pulled by Councilmember Lustro for questions.
Councilmember Lustro expressed support for the item but asked questions to staff regarding the enforcement of parking regulations during active street sweeping times.
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Public Works Director Rene Guerrero advised enforcement would begin in January 2025, and that Athens is letting residents know through phone calls and letters.
Councilmember Torres asked questions to staff and Public Works Director Guerrero answered his questions.
Vice Mayor Garcia commented on the approach Athens takes when communicating with residents and requested Athens take different approaches to spread the information of the street sweeping service.
Councilmember Ontiveros-Cole asked questions to staff and Public Works Director Guerrero answered her questions.
Mayor Sandoval commented on the street sweeping services in the City during the last few years and the upcoming changes to that service.
MOTION BY COUNCILMEMBER LUSTRO, SECOND BY MAYOR SANDOVAL, CARRIED 7-0, to adopt Resolution No. 2024-109 and to award a purchase order to Safety Network Traffic Signs, Inc. in the amount of $350,000 for the purchase of new Citywide street sweeping signs.
6. Amend the Fiscal Year 2024-25 Operating Budget by Appropriating $250,000 from the General Fund Reserves for Abatement Activities at Palm Lake Golf Course and for the Purchase of a Mower
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2024-108 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE FISCAL YEAR 2024-25 OPERATING BUDGET BY APPROPRIATING $250,000 FROM THE GENERAL
FUND RESERVES FOR ABATEMENT ACTIVITIES AT PALM LAKE GOLF
COURSE AND FOR THE PURCHASE OF A MOWER
*This item was pulled for public comment.
Public Speaker Frank Gutierrez spoke in support of the item.
Public Speaker Rhonda Belville spoke in opposition to the item.
Councilmember Preciado asked how the City could establish continued maintenance of the property so that it does not become dilapidated.
Mayor Sandoval asked questions about the future maintenance of this property.
Public Works Guerrero answered his questions.
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MOTION BY COUNCILMEMBER PRECIADO, SECOND BY MAYOR SANDOVAL, CARRIED 7-0, to adopt Resolution No. 2024-108.
7. Adoption of a Resolution Approving the Annual Report for the Downtown Pomona Property and Business Improvement District (PBID) and Levying the Assessments for FY 2024-2025
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2024-102 - A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF POMONA, CALIFORNIA, APPROVING THE DOWNTOWN POMONA
PROPERTY AND BUSINESS IMPROVEMENT DISTRICT (PBID) ANNUAL REPORT FOR FISCAL YEAR 2024-25 AND AUTHORIZING THE LEVYING OF THE FY 2024-25 ASSESSMENTS
MOTION BY COUNCILMEMBER NOLTE, SECOND BY COUNCILMEMBER GARCIA, CARRIED 7-0, to adopt Resolution No. 2024-102.
8. Authorize City Staff to Reject Bids for "Bus Stop Maintenance, Transit Centers Power and Pressure Washing Services," and Extend Agreement with Parkwood Landscape Maintenance, Inc.
It is recommended that the City Council take the following actions:
1) Authorize the rejection of a bid from Urban Graffiti Enterprises, Inc. for "Bus Stop Maintenance, Transit Centers Power and Pressure Washing Services," Invitation for Bid (IFB) No. 2024-23;
2) Approve a six-month extension to Parkwood Landscape Maintenance, Inc.'s contract for a not-to-exceed amount of $137,000 to allow for continued maintenance services and a new bidding process; and
3) Authorize the City Manager, or designee, to execute necessary documents and any extensions or amendments thereto on behalf of the City, subject to review by the City Attorney.
MOTION BY COUNCILMEMBER NOLTE, SECOND BY COUNCILMEMBER GARCIA, CARRIED 7-0, to authorize the rejection of a bid from Urban Graffiti Enterprises, Inc. for "Bus Stop Maintenance, Transit Centers Power and Pressure Washing Services," Invitation for Bid (IFB) No. 2024-23; and to approve a six-month extension to Parkwood Landscape Maintenance, Inc.'s contract for a not-to-exceed amount of $137,000 to allow for continued maintenance services and a new bidding process; and to authorize the City Manager, or designee, to execute necessary documents and any extensions or amendments thereto on behalf of the City, subject to review by the City Attorney.
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9. Approval of Right-of-Way Sales Contracts Totaling $19,200 for City-Owned Properties Associated with the State Route 71 Widening Project It is recommended that the City Council approve Right-of-Way Contracts (Contracts) with the State of California Department of Transportation (DOT) and authorize the City Manager to execute the contracts and all related amendments, subject to approval as to form by the City Attorney.
MOTION BY COUNCILMEMBER NOLTE, SECOND BY COUNCILMEMBER GARCIA, CARRIED 7-0, to approve Right-of-Way Contracts (Contracts) with the State of California Department of Transportation (DOT) and authorize the City Manager to execute the contracts and all related amendments, subject to approval as to form by the City Attorney.
10. Resolution Amending the Fiscal Year (FY) 2024-25 Capital Improvement Program (CIP) Budget for "City Hall Complex Remodel & Flooring" Project No. 428-2590-XXXXX-74115
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2024-110 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE FY 2024-25 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET BY APPROPRIATING $14,460 OF LEASE PROCEEDS FUNDS FROM FUND 418 RESTRICTED CASH ACCOUNT TO THE "CITY HALL COMPLEX REMODEL & FLOORING," PROJECT NO. 428-2590-XXXXX-74115
MOTION BY COUNCILMEMBER NOLTE, SECOND BY COUNCILMEMBER GARCIA, CARRIED 7-0, to adopt Resolution No. 2024-110.
11. Award of Contract to GM. Sager Construction Company, Inc. for Citywide As-Needed Concrete and Pavement Repair Services at Prices Bid It is recommended that the City Council take the following actions:
1) Approve the award of a three-year contract with two (2) optional one-year extensions to GM. Sager Construction Company, Inc. (GM Sager) for Citywide as-needed concrete and pavement repair services at prices bid, effective August 1, 2024, through July 31, 2027; and
2) Authorize the City Manager, or designee, to execute necessary documents and any extensions or amendments thereto on behalf of the City, subject to review by the City Attorney.
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MOTION BY COUNCILMEMBER NOLTE, SECOND BY COUNCILMEMBER GARCIA, CARRIED 7-0, to approve the award of a three-year contract with two (2) optional one-year extensions to G.M. Sager Construction Company, Inc. (GM Sager) for Citywide as-needed concrete and pavement repair services at prices bid, effective August 1, 2024, through July 31, 2027; and authorize the City Manager, or designee, to execute necessary documents and any extensions or amendments thereto on behalf of the City, subject to review by the City Attorney.
12. Appeal of Planning Commission Decision to Approve a Housing Development Project housing development project (Case File: DPR 72-2024) to develop a 5.5 acre site with 289 dwelling units within two, four-story buildings with private and common open spaces, subterranean parking, garage parking, surface parking, covered parking, landscaping, trash facilities, and a privately owned public linear park at 3101-3191 North Garey Avenue.
It is recommended that the City Council uphold the decision of the Planning Commission
*This item was pulled for public comment.
Public Speaker Jean expressed concern with increased traffic should the development project be approved.
Public Speaker Andrew Fogg expressed support for the City Council to uphold the decision of the Planning Commission.
Public Speaker Chris Brazzill expressed concern that the City does not have enough police officers for the residents, and approving dense housing developments would further this strain.
Public Speaker M. Joyce Bakersmith spoke in opposition to the item and supported the decision being appealed
Public Speaker Kathie Conaway requested a traffic study be completed before this project is approved, and asked for the developer to provide information on what traffic mitigation efforts would be a part of this development.
Public Speaker Char Kane expressed concern with the strain on public safety services this housing development will cause.
Public Speaker Lorraine Canales discussed various concerns with traffic and public safety, and requested a traffic study.
Public Speaker Helen Caldwell spoke in opposition to the item.
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Public Speaker Marilyn Maria Hokanson discussed various concerns with traffic and public safety.
Public Speaker Miranda Sheffield suggested the City establish parking minimums for new housing projects as a way to mitigate the risk of lack of parking.
Public Speaker Lydia Myers requested an impact study for the area and for appropriate mitigations to those safety risks be added to the housing project.
Vice Mayor Garcia asked questions regarding how would a safe streets ordinance impact the project.
City Attorney Carvalho reminded the City Council that the item required them to decide either to set a public hearing for the appeal, or to uphold the Planning Commission decision that approved the project.
Councilmember Lustro asked questions to staff regarding state law's impact on the City's ability to require a study.
Development Services Department Deputy Director Ata Kahn answered his questions.
Councilmember Preciado suggested the administrative process for appeal hearings like this item be changed so that the Public Hearing is automatically scheduled.
Councilmember Torres expressed opposition to upholding the Planning Commission decision, and supported the scheduling of a public hearing for the appeal. Councilmember Torres also commented on the various concerns raised by the public speakers.
Mayor Sandoval commented on the importance of differentiating between the project itself and the mitigations the City could take to increase street safety in the area.
City Attorney Carvalho stated the role of City Council in the public hearing would be akin to a judge, to determine if the Planning Commission erred in approving the project, or not.
City Manager Gutierrez discussed the possibility of adding project conditions during a public hearing for this project.
DSD Deputy Director Kahn also gave comments on the project conditions already placed by the Planning Commission and the limitations the City faced for future conditions.
Councilmember Garcia summarized her understanding of the City Attorney's, City Manager's, and Deputy Director's comments regarding project conditions.
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MOTION BY COUNCILMEMBER TORRES, SECOND BY COUNCILMEMBER PRECIADO, CARRIED 7-0, to set a public hearing of the Planning Commission's decision to approve a housing development project (Case File: DPR 72-2024) at a future meeting.
DISCUSSION CALENDAR
13. Finding of Public Benefit to the Community at Large-Recommended Expenditure(s) and Recap of Expended Funds
It is recommended that the City Council take the following actions:
1) Approve the expenditure(s) recommended and make the finding that the community at large will receive a public benefit from the expenditure of funds for the recommended items); and
A) Amount to be determined to Assistance League of Pomona Valley in support of Operation School Bell (OSB) Fundraiser: Requested Amount: $3,500 B) Amount to be determined to Fox Theater Pomona & Tradición Dance Company in support of 2nd Annual DanzArte Dance Competition: Requested Amount: $3,000
C) Amount to be determined to Juneteenth Education Technology Mobile Arts Center in support of its 34lh Pomona Valley Juneteenth Jazz and Arts Festival - Requested Amount $3,000
2) Receive and file the recap of final amounts.
Public Speaker Trudy Coleman spoke in support of the Juneteenth Jazz and Arts Festival.
MOTION BY VICE MAYOR GARCIA, SECOND BY COUNCILMEMBER ONTIVEROS- COLE, CARRIED 7-0, to make a finding of public benefit for items A-C.
Mayor Sandoval called a recess at 9:52 p.m.
Mayor Sandoval resumed the meeting at 9:57 p.m.
14. Appeal of Staff Decision to Deny the Establishment of a Preferential Parking District on Randolph Street
It is recommended that the City Council discuss the appeal of the Staff decision to deny the establishment of a preferential parking district on Randolph Street from Park Avenue to Wisconsin Street. After discussion, the City Council can take one of two actions:
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1) Option 1: Uphold Staff's decision to deny the request; or 2) Option 2: Approve the establishment of a preferential parking district on Randolph Street from Park Avenue to Wisconsin Street.
Public Works Director Guerrero gave the staff presentation.
Public Speaker Alfred Deharo spoke in support of option 2.
Public Speaker Carol Anten spoke in support of option 2 and expressed opposition to the City approving a moratorium on establishments of preferential parking districts.
Public Speaker Mike Suarez spoke in support of option 2.
Vice Mayor Garcia commented on the public speakers requests for parking and safety, the complexity of preferential parking district, and expressed support for option 2.
Councilmember Nolte read sections of the ordinance pertaining to preferential parking district to highlight unclear standards, and stated the ordinance should be updated to provide a more clear process for both staff and residents.
Councilmember Ontiveros-Cole shared about the positive outcomes she has experienced on her street after the establishment of preferential parking districts, and expressed support for option 2.
Councilmember Preciado expanded on Councilmember Nolte's points of the standards being unclear, commented on the permit system not addressing the root causes of crime, and recommended the City invest more into local public transportation.
Councilmember Lustro expressed the challenges cities face by the state's mandate for additional housing without parking requirements, and commented in regards to safety concerns, the issue is a shortcoming of enforcement.
Mayor Sandoval stated the parking district would not solve the crime and safety concerns of the neighborhood; it would only alleviate them on this particular street. Mayor Sandoval also commented on the need for housing, and suggested other types of enforcement may work better at addressing the safety concerns of the residents.
MOTION BY VICE MAYOR GARCIA, SECOND BY COUNCILMEMBER NOLTE, CARRIED 6-1 (COUNCILMEMBER PRECIADO OPPOSED) to approve the establishment of a preferential parking district on Randolph Street from Park Avenue to Wisconsin Street.
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15. Appeal of Staff Decision to Deny the Establishment of Preferential Parking District on Hartford Place
It is recommended that the City Council discuss the appeal of the staff decision to deny the establishment of a preferential parking district on Hartford Place. After discussion, the City Council can take one of two actions:
1) Option 1: Uphold staff's decision to deny the request; OR
3) Option 2: Establish the preferential parking district on Hartford Place.
Public Works Director Guerrero gave the staff presentation.
Public Speaker Vickie Manning spoke in support of option 2.
Public Speaker Thomas Manning spoke in support of option 2.
Alberto Dik and Carol Anten submitted public speaker cards in support of option 2 but did not speak.
Councilmember Torres expressed support for Councilmember's Nolte earlier suggestion to review and update this parking preferential ordinance.
Councilmember Nolte expressed support for option 2.
Councilmember Ontiveros-Cole asked questions to staff.
Public Works Director Guerrero answered Councilmember Ontiveros-Cole's questions.
Councilmember Preciado asked questions to staff, and expressed support for increasing the number of Code Compliance staff.
City Manager Gutierrez answered Councilmember Preciado answered his questions.
MOTION BY VICE MAYOR GARCIA, SECOND BY COUNCILMEMBER NOLTE, CARRIED 7-0, to establish the preferential parking district on Hartford Place.
PUBLIC HEARINGS
16. Public Hearing Regarding the Levy of Fiscal Year 2024-25 Assessments for the Consolidated Citywide Street Lighting and Landscaping Maintenance District It is recommended that the City Council take the following actions:
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1) Conduct a Public Hearing regarding the levy of assessments for the Consolidated Citywide Street Lighting and Landscaping Maintenance District for FY 2024-25; and
2) After receiving public comments and testimony, close the Public Hearing and adopt the following Resolution:
RESOLUTION NO. 2024-93 - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF POMONA, CALIFORNIA, CONFIRMING THE ASSESSMENT
DISTRICT DIAGRAMS, ZONE BOUNDARIES, AND THE LEVY OF FISCAL YEAR 2024-25 ASSESSMENTS FOR THE CONSOLIDATED CITYWIDE
STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT
Public Works Director Guerrero gave a brief presentation of the item.
Mayor Sandoval opened the Public Hearing, and with no public speakers, Mayor Sandoval closed the Public Hearing.
MOTION BY VICE MAYOR GARCIA, SECOND BY COUNCILMEMBER ONTIVEROS- COLE, CARRIED 7-0, adopt Resolution No. 2024-93
ADJOURNMENT
The City Council meeting adjourned at 10:54 p.m. on July 15, 2024.
Respectfully submitted, ATTEST:
POIN
ROSALIA A. BUTLER; MMC TIM SANDOVAL
City Clerk/Secretary of the Pomona Mayor/Chair of the Pomona Housing Authority/Successor Agency to the Housing Authority/Successor Agency to the Redevelopment Agency Redevelopment Agency
City of Pomona Page 17
From: Butler, Rosalia
To: Robles, Diana
Subject: FW: Public Comment Permanent Rent Stabilization Ordinance Emergency Needs Letter Date: Monday, July 15, 2024 5:37:42 PM
Attachments: 7 15 24 PUSH Emergency Needs Letter pdf
CITY COPY PUSH Rent Control Ordinance. FINAL, pdf
Add this to tonight's minutes. Thank you!
From: Pomona PUSH <[email protected]> Sent: Monday, July 15, 2024 3:52 PM
To: Sandoval, Tim <[email protected]>; Garcia, Nora <[email protected]>; Preciado, Victor «Victor. [email protected]›; Lustro, Steve ‹[email protected]>; Nolte, John <[email protected]>; Butler, Rosalia <[email protected]>; Ontiveros-Cole, Elizabeth <Elizabeth. [email protected]>; Torres, Robert <Robert. [email protected]>
Subject: Public Comment Permanent Rent Stabilization Ordinance Emergency Needs Letter CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or on clicking links from unknown senders.
Good Day Mayor Sandoval, Council Members & Pomona City Clerk Rosalia, Here attached is an Emergency Needs Letter from concerned leaders, community stakeholders, organizers, tenants, and community members that are reaching out to ask for your support of our collective vision to eliminate the housing crisis in Pomona. We hope you all take the time to read this very important Emergency Needs Letter that our community is in desperate need of.
We will also have hard copies for you during tonight's council meeting, thank you in advance for your attention to this urgent matter. We look forward to hearing from you all soon.
In Community,
Pomona United For Stable Housing
PUSH
[email protected]
United a
OPUSH Stabl
July 15, 2024
Mayor Tim Sandoval and Councilmembers,
We are concerned leaders, community stakeholders, organizers, tenants, and community members that are reaching out to ask for your support of our collective vision to eliminate the housing crisis in Pomona. Although the families in Pomona and even some of us personally are facing serious challenges such as housing insecurities, lack of work opportunities, displacement, harassment, gentrification and homelessness, we also feel that there are some existing housing and community assets to build on that can transform the city and community to off-set some of these dilemmas. We are proposing that the City of Pomona go deeper in its implementation of the proposed PRSO, which we have attached, as a means to address some of the systemic challenges faced by our community. The following outlines our vision for a deeper implementation of a comprehensive permanent rent stabilization ordinance and housing stability for Pomona residents.
Emergency Needs
The initiatives below are proactive and holistic efforts that address the systemic challenges that present as obstacles to tenants' stability and livelihood. According to the Housing Element of Pomona 2021 to 2029, the median household income in Pomona is $60,598, which is $7,446 below Los Angeles County's median household income of $68,044. Based on these income categories, nearly two out of three households (61.9 percent) in Pomona are considered lower income and may not be able to afford housing within the immediate area. Moreover, nearly one out of five households in Pomona (19.2%) are headed by a single female parent. Pomona's single-parent female households face poverty levels twice as high as the Los Angeles County average. Evictions and displacement impose an especially high burden on school aged children and their families, including increased absences from school, homelessness, and other educational disruptions that can have long lasting mental effects, all of which may continue to have long-term adverse mental and physical effects on children from our communities. The Pomona Unified School District reported as part of a U.S. Department of Education grant application that in 2018-2019 it served at least 2,500 to 5,000 homeless youth. Additionally, minority, elderly, and disabled households in Pomona are disproportionately represented in the low income group, which subsequently leads to a lack of housing choice. Further, Pomona's population is aging, while its youth population is declining. The number of young adults in Pomona under the age of 19 continues to decline year after year, representing 35.2 percent of the population in 2010 to 29 percent in 2019. Meanwhile, the population over the age of 50 increased from 21 percent in 2010 to 27.1 percent in 2019, the average age of a City's population is relevant in determining housing type necessities. According to the disability pay chart, state disability insurance is only 60-70% of your wages, average supplemental social security income is $578.62 and average social security disability income is $1,524.99 making it nearly impossible for a retired, veteran, or disabled individual to afford housing. We are requesting the following; • Improve and strengthen URSO with a PRSO at 3% place it as a Charter Ordinance • Create a Rent board
• Tenant/Landlord registry
• Allocate 2 million of ARPA funding to Tenant Landlord Registry & Rent Board • Partner with us to repeal state laws that limit consumer protections for renters like Costa Hawkins & Ellis Act (CLAUSE: if Justice for Renters Act (Prop 33) passes in Nov 2024 Election, there is language in the ordinance that automatically adopts it/ including protections for single family homes)
• Stronger enforcement for uninhabitable conditions- Tenant Anti Harassment Ordinance (TAHO)
• Rent Escrow Account Program (REAP)
• Pomona Inspection Ordinance (Budget to Expand Code Enforcement for Accountability of Slumlords)
Long Term Needs
The initiatives below are designed to promote community, neighborhood, and household stability for generations to come. According to the Housing Element of Pomona 2021 to 2029, in asking the community where additional housing could be built, respondents cited surplus Pomona Unified School district property, City-owned parking lots, underused houses of worship, empty motels, vacant land, and existing building conversions in Downtown as examples of suitable land for additional housing options. The community is also interested in exploring alternative models of property ownership as a means to prevent displacement and gentrification in Pomona's neighborhoods. The most popular alternative cited is a "community land trust." Community land trusts ensure but are not limited to: community based and democratic decision making with an anti-displacement as a strategy for homeowners and renters, stabilizing neighborhoods by increasing housing affordability, lessening the risk of gentrification, prioritizing BIPOC diversity, rectifying historically unjust real estate practices. Additionally, the City embarked on extensive community outreach efforts as a part of the 2021-2029 Housing Element update process.
Through outreach and market analysis, the City identified a community land trust as a potential tool in increasing opportunity and development of affordable housing. Further, we understand that all housing discrimination does not address income. Historically, disenfranchised groups, the vast majority of residents in the city of Pomona, are People of Color (POC), largely women. Therefore we believe that addressing income levels in Pomona is imperative. We are requesting the following;
• Social Housing: Land recast as a community resource, not a commodity • Community Land Trusts
• Greater public investment in producing permanently affordable housing(with no sunsets) • Enshrine Housing as a Human Right in the City of Pomona • Historically disenfranchised groups, like single female heads of households, should automatically qualify for additional assistance such as but not limited to:
• direct housing assistance in collaboration with the Pomona Housing Authority and relevant Pomona unhoused people programs and Pomona Housing Services • Ist month and deposit assistance
• Relocation assistance not dependent on current criteria We are excited to share our vision for transformation with you that is grounded in a genuine implementation of tenant protections that will bring forth stability for children, families, elderly, and other vulnerable tenants. In alignment with Pomona's Mission and Core Values, protecting low income residents and their homes protects economic and cultural diversity within the city, which is necessary for the city's stability. Our vision is informed by the experiences and dreams of our leaders, community stakeholders, organizers, tenants, and community members. We urge the city of Pomona to act on these emergency needs proposed. Can we count on your support of this vision?
We thank you for your time and consideration and request meeting dates with the Mayor and City Council members individually. We look forward to hearing back from you soon. We can be contacted for a follow up using the contact information below.
In community,
Graciela, Yesenia, Elinor, Evelia, Eunice, Gwen, Allison, Connie Pomona United for Stable Housing Coalition
[email protected]
IN SUPPORT: Alliance of Californians for Community Empowerment (ACCE), California Democratic Renters Council (CADEM), Latino/a Round Table, Pomona Valley NAACP, LA Forward, San Gabriel Valley Tenants Alliance, Poor People's Campaign, Integrative Development Initiative, Just Us For Youth, Gente Organizada, Center Street Tenants Union, Pasadena Tenants Union, Angela/Chanslor Tenants Union, Curran Place Tenants Union, San Gabriel Valley Community Land Trust, Food Cycle Collective, Cal Poly Pomona YDSA, Elevating Equity Collective, Housing Now, Housing Is A Human Right, Trevoli Tenants Union, Inland Equity Partnership/ IE Tenants Union, Inland Equity Community Land Trust.
The People of the City of Pomona do hereby create Chapter 20 of the Pomona City Code, which may be referred to as: "The Pomona Ordinance to Promote Community and Housing Stability through Fair Rent Regulation, Tenant Protections, and Tenant and City Opportunities to Purchase," and which shall read as follows:
Chapter 20 - COMMUNITY AND HOUSING STABILITY THROUGH FAIR RENT
REGULATION, TENANT PROTECTIONS, AND TENANT AND CITY
OPPORTUNITIES TO PURCHASE
ARTICLE I. - IN GENERAL
Sec. 20-1. - Title and purpose.
Sec. 20-2. - Findings.
Sec. 20-3. - Definitions.
Sec. 20-4. - Exemptions.
ARTICLE II. - EXEMPTIONS FOR LOCAL HOMEOWNERS
Sec. 20-5. - Certain single-family homes and accessory dwelling units exempt.
Sec. 20-6. - Temporary rentals allowed.
Sec. 20-7. - Renting of a room unregulated.
ARTICLE III. - TENANT PROTECTIONS
Sec. 20-8. - Just cause for eviction protections.
Sec. 20-9. - Tenant protections during foreclosure.
Sec. 20-10. - Relocation assistance.
Sec. 20-11. - Right of return and first right of refusal.
Sec. 20-12. - Required notice for withdrawal of rental units from rental housing and regulation of property on re-offer of rent or lease after withdrawal.
Sec. 20-13. - Posting of notice.
Sec. 20-14. - Security deposits.
Sec. 20-15. - Retaliation is barred.
Sec. 20-16. - Harassment is prohibited.
Sec. 20-17. - Notice to specify basis for termination.
Sec. 20-18. - Notice of the existence of this chapter required at commencement of tenancy.
Sec. 20-19. - Landlord compliance with this chapter:
Sec. 20-20. - Filing termination notices with Rent Board.
Sec. 20-21. - Non-waivability.
Sec. 20-22. - Failure to comply.
ARTICLE IV. - STABILIZATION OF RENTS
Sec. 20-23. - Rents stabilized.
1 Sec. 20-24. - Rent increases regulated.
ARTICLE V. - RENT INCREASES PURSUANT TO ANNUAL GENERAL
ADJUSTMENT
Sec. 20-25. - Annual general adjustment.
Sec. 20-26. - One rent increase per year.
Sec. 20-27. - Notice of rent increase required.
Sec. 20-28. - Required notice to increase rent or change other terms of tenancy.
Sec. 20-29. - Conditions under which rent increase not permitted.
ARTICLE VI. - INITIAL RENTS FOR NEW TENANCIES
Sec. 20-30. - Setting of initial rents without restriction.
Sec. 20-31. - Restrictions on initial rent for new tenancies.
Sec. 20-32. - Rent increases after setting an initial rent.
ARTICLE VII. - TENANT BUYOUT NOTIFICATION PROGRAM Sec.
20-33. - Purpose.
Sec. 20-34. - Disclosure notice.
Sec. 20-35. - Buyout agreement requirements.
Sec. 20-36. - Cancellation of buyout agreement.
Sec. 20-37. - Filing executed disclosure notice and buyout agreement. Sec. 20-38. - Affirmative defense.
Sec. 20-39. - Private right of action.
ARTICLE VIII. - POMONA RENTAL HOUSING BOARD
Sec. 20-40. - Created
Sec. 20-41. - Appointment, composition, and eligibility.
Sec. 20-42. - Application.
Sec. 20-43. - Powers and duties.
Sec. 20-44. - Rules and regulations.
Sec. 20-45. - Meetings.
Sec. 20-46. - Quorum.
Sec. 20-47. - Voting.
Sec. 20-48. - Compensation.
Sec. 20-49. - Financing.
Sec. 20-50. - Rental housing fee.
Sec. 20-51. - City to advance initial funds.
Sec. 20-52. - Integrity and autonomy of the Rent Board
Sec. 20-53. - Rent Board legal work.
Sec. 20-54. - Conforming regulations.
Sec. 20-55. - Conflict of interest.
Sec. 20-56. - Initial appointment and interim authority for implementation.
ARTICLE IX. - PETITIONS FOR INDIVIDUAL RENT ADJUSTMENT Sec. 20-57. - In general.
Sec. 20-58. - Petition for upward adjustment—fair return. Sec. 20-59. - Petition for downward adjustment.
Sec. 20-60. - Procedures for petitions.
ARTICLE X. - TENANT AND CITY OPPORTUNITIES TO PURCHASE Sec. 20-61. - Tenant opportunity to purchase; "sale" defined. Sec. 20-62. - Registration of a tenant organization.
Sec. 20-63. - Offer of sale.
Sec. 20-64. - Third party rights.
Sec. 20-65. - Contract negotiation.
Sec. 20-66. - Exercise or assignment of rights.
Sec. 20-07. - Waiver of rights.
Sec. 20-68. - Right of first refusal.
Sec. 20-69. - Single-family accommodations.
Sec. 20-70. - Housing accommodations with 2 through 4 rental units. Sec. 20-71. - Housing accommodations with 5 or more rental units. Sec. 20-72. - Coverage of article.
Sec. 20-73. - City's opportunity to purchase.
Sec. 20-74. - Implementation and enforcement.
ARTICLE XI. - JUDICIAL REVIEW, RIGHTS TO ACTION, REMEDIES,
DEFENSES, JURISDICTION
Sec. 20.75 - Judicial review.
Sec. 20-76. - Civil suit.
Sec. 20-77. - Rent Board or City Attorney enforcement action. Sec. 20-78. - Enforcement and injunctive relief.
Sec. 20-79. - Remedies.
Sec. 20-80. - Defenses to actions to recover possession.
Sec. 20-81. - Remedies not exclusive.
Sec. 20-82. - Jurisdiction.
ARTICLE XII. - GENERAL PROVISIONS
Sec. 20-83. - Severability.
Sec. 20-84. - Supersession.
Sec. 20-85. - Codification.
Sec. 20-86. - Duty to defend.
Sec. 20-87. - Majority approval, effective date, execution. 3 ARTICLE I. - IN GENERAL
Sec. 20-1. - Title and purpose.
This Ordinance shall be known as The Pomona Ordinance to Promote Community and Housing Stability through Fair Rent Regulation, Tenant Protections, and Tenant and City Opportunities to Purchase. The purposes of this ordinance are, in the City of Pomona, to (I) promote community, neighborhood and household stability by discouraging the displacement of tenants; (2) strengthen the rights and increase the bargaining position of tenants so that they can better resist displacement; (3) maintain and increase the availability of healthy and affordable housing for lower income tenants; and, (4) in concert with the other purposes, create homeownership opportunities for tenants. The ordinance aims to achieve those purposes by: regulating excessive rent increases and arbitrary evictions to the maximum extent permitted under California law while guaranteeing landlords a fair return; ensuring fair protections for renters and exemptions for local homeowners; and providing an opportunity for tenants to purchase their homes or for the City to purchase them and maintain them as affordable housing when they are for sale or at risk of being removed from the rental market, while respecting owners' property rights and the due process of law.
Sec. 20-2. - Findings.
The People of Pomona find and declare as follows:
(a) There is a shortage of decent, safe, affordable, healthy housing in the City of Pomona, with the result that tenants do not have genuine freedom of contract and cannot bargain for fair, reasonable rent prices on an equitable playing field. Valuable, long-time residents are being pushed out of their homes and the City, disrupting their lives, and diminishing Pomona's community and culture.
(b) Tenants should not have to fear eviction, displacement, and sometimes homelessness merely because rental property owners can dramatically increase rents. Robust protections against arbitrary evictions along with accessible means to enforce them are needed in the City to preserve diversity and protect long-time and low-income residents from disruptive, predatory landlord tactics in tight rental markets.
(c) Over the 5 years from 2013 to 2018, multifamily housing rents Pomona rose annually, on average, at about twice the rate of the rise in Pomona renters' household income, and at about 2.5 to 3 times the rate of regional inflation. (Zillow rent Zestimate Time Series, rent Jungle rent Trend data, U.S. Census Bureau, U.S. Labor Department.) Pomona renters
simply cannot keep up with this degree of rent escalation. AB 1482, the state-level tenant Protection Act of 2019, while important for curbing the worst rent gouging, does not set rates low enough to allow Pomona renters— especially low income families, seniors, and people with disabilities—-to stay in their homes and in the City. This ordinance is required to stabilize our housing and our communities and is more protective than the tenant Protection Act of 2019 (Section 1946.2 of the California Civil Code) -for example, it further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, and provides additional tenant protections that are not prohibited by any other provision of law.
(d) Rent burdens hit lower income households harder. The median income in Pomona is about 17% lower than the median income for Los Angeles County. In 2018, about 80% of renting households in Pomona had incomes that would have qualified as Low Income for a family of four under U.S. Department of Housing and Urban Development (HUD) limits. Over 60% of renters had incomes that would have qualified a family of four as Very Low Income. (The average household size of renter-occupied housing in 2017 was 3.79.) In 2017, at least 29% of renter households (and likely a lot more) were Extremely Low Income in HUD terms. In 2018, the annual income of 31% of renting Pomona families was below the federal poverty line (U.S. Census Bureau; HUD) (e) Sixty-six percent (66%) of Pomona tenant households are considered cost burdened by HUD, meaning they pay 30% or more of their income for housing and therefore may have difficulty affording necessities such as food, clothing, transportation and medical care. The situation is worse for households with lower incomes: 89% of Pomona tenant households with income under $50,000 per year are rent-burdened (comprising 59% of all tenant households); and 96% of households with income under $35,000 per year are rent-burdened (comprising 42% of all tenant households). More than half of Pomona's housing is renter-occupied. (U.S. Census Bureau, 2018 ACS 1-Year Estimates.) (f) Thirty-two percent (32%) of Pomona tenant households are severely cost burdened, meaning they spend more than 50% of their income on rent. Eighty-nine percent (89%) of those households (5,264 households) have incomes below $35,000 per year (99% have incomes below $50,000 per year). Assuming the average 3.79 people per household, about 20,000 people in Pomona live in a household with an income less than $35,000 per year that spends at least $17,500 on housing, leaving very little to cover everything else—-food, clothing, transportation, health care, etc. (U.S. Census Bureau, 2018 ACS 5-Year Estimates and 2017 1-Year 5 Estimates re household size.)
(g) Tenants in Pomona are being displaced because they cannot afford excessive, rapidly increasing rents. They are often unable to find decent, safe and sanitary housing at affordable rent levels within the City. (The rental vacancy rate in Pomona is 1.5%, compared to 3.8% in Los Angeles County (U.S. Census Bureau, 2018)). Displaced residents are then forced to look to the wider Los Angeles County rental market, which is facing the same market pressures.
Aware of the difficulty they would face trying to find alternative decent housing, many cost-burdened renters opt to stay and pay exacted rent increases. Consequently, those households must spend less on other necessities of life, such as food, transit, and healthcare. (h) The rental housing situation has a detrimental effect on the health, safety, and welfare of substantial numbers of renters in the City, creating especially heavy burdens for senior citizens, persons with disabilities, persons on fixed incomes and other vulnerable tenants.
(i) Rising housing costs are causing overcrowding within dwelling units, which degrades residents' health and quality of life. In Pomona, 23% of rental housing is overcrowded (more than one occupant per room), and 10.5% is severely overcrowded (more than 1.5 occupants per room). (U.S. Census Bureau, 2018.)
) Rising housing costs are pushing low-income workers out of the city, forcing them to drive further to work, which is bad for the environment and for their own quality of life.
(k) Rising housing costs are forcing extended families apart, disrupting social support systems that promote the welfare of children, the elderly and the disabled, forcing people to rely more on already-over-stretched government services, and often forcing people into homelessness. As reported by the Los Angeles Homeless Services Authority: "The affordable housing crisis is driving a regional increase in homelessness" (2019).
(1) Evictions and displacement impose an especially high burden on school aged children and their families, including increased absences from school, homelessness, and other educational disruption that can have long-lasting effects. The Pomona Unified School District reported as part of a U.S.
Department of Education grant application that in 2018-19 it served at least 2,500 to 5,000 homeless youth.
(m) High rental costs also make it increasingly difficult, if not impossible, for rental households to become first-time homeowners, a fact recognized by the California Legislature.
(n) Coupled with high student debt and a lack of new affordable housing construction, potential new homeowners are being priced out of the homeowners' market in Pomona altogether. Instead of welcoming back young professionals and new families into the Pomona community, they are increasingly priced out of the community from which they came and to which they hope to contribute again.
(o) In alignment with Pomona's Mission and Core Values, protecting low income residents and their homes protects economic and cultural diversity within the City, which is necessary for the city's stability. Pomona's residents need access to skilled and unskilled laborers as well as professionals for the community to be as self-sufficient and stable as possible. (p) Landlords have greater incentives to induce tenants in rent-stabilized units to move out. In jurisdictions with rent stabilization ordinances, many landlords offer cash buyouts in exchange for tenants vacating rental units. Many of these buyout negotiations are not conducted at arms-length and landlords sometimes employ high-pressure tactics or intimidation to induce tenants to sign agreements. Legislation is needed to promote fairness in buyout negotiations and agreements by requiring landlords to provide tenants with a statement of rights and allowing tenants to rescind a buyout agreement within 30 days to provide tenants sufficient time to seek advice. (q) Tenants who are evicted in Pomona are forced to incur substantial costs to relocate to new housing. These costs include, but are not limited to, move-in costs to a new apartment, actual moving costs, new utility hookups, payment for temporary housing while new permanent housing is sought, and lost work time seeking housing. tenants who find acceptable new housing commonly must pay first and last month's rent plus a security deposit equal to one month's rent. No-fault evictions without adequate relocation benefits impose a great hardship on the health and well-being of all evicted tenants, but the impacts are particularly severe for long-time tenants and those who are most vulnerable—i.e., those who are low-income, elderly, disabled, or who have minor children.
(r) California law protects the right of owners of rental property to "go out of business" by withdrawing their property from the rental market (Ca. Gov. Code § 7060 et seq.) The experience of other jurisdictions in California and across the country that have implemented rent stabilization ordinances makes clear that, in reaction, property owners often attempt to convert their rental properties into for-sale developments, or demolish their rental buildings so that for-sale development can take their place, or sell their rental properties to developers who can afford to convert or demolish the rental units. This activity thwarts the purposes of rent control, reduces the supply of affordable housing, and leads to
displacement of residents and families with all of the consequent social damage described elsewhere in these findings. In order to preserve affordable rental housing in the City, prevent displacement, and protect against foreseeable owner reactions to rent control, tenants, tenant organizations, tenants' assignees, and/or the City must have a fair and first opportunity to purchase rental property when it is for sale or at risk of being removed from the rental market.
(s) A recent study at the Centers for Disease Control and Prevention found that "adult children of mothers who were homeowners 20 years earlier had significantly greater educational attainment, were less likely to receive public assistance, and were 1.6 times more likely to own homes than children of mothers who were not homeowners .... [S]trategies that promote and enable homeownership in families with children may affect future generations' ability to build wealth through homeownership" (See Rostad, W., Ports, K., & Tang, S. (2019), "Mothers' homeownership and children's economic success 20 years later among a sample of US citizens," Children and Youth Services Review, 99, 355-359). Homeownership decreases housing instability and is therefore likely to improve children's outcomes. For the same reason, it is likely to improve outcomes for elderly tenants, tenants with disabilities, and lower income tenants in general. In concert with, and balancing the other goals of this ordinance, the City of Pomona wants to promote the stability of homeownership for lower income tenants to improve their families' outcomes and help break the cycle of poverty. Providing tenants a fair opportunity to purchase their homes when they are for sale is a critical step in that direction. (t) The City of Pomona currently does not regulate, with respect to residential housing, rental amounts, rent increases, or evictions, nor does it currently ensure tenants, their assignees, or the City an opportunity to purchase the tenants' homes when they are for sale or at risk of being withdrawn from the rental market.
Sec. 20-3. - Definitions.
Unless further defined elsewhere in this article, the following words or phrases as used in this article shall have the following meanings:
8 (a) Accessory Dwelling Unit. The term "accessory dwelling unit" has the same meaning as it does in Cal. Govt. Code § 65852.2 (j)(1). (b) Annual General Adjustment. The percentage by which the rent for existing tenancies in covered rental units may be increased each year, subject to the limitations of this chapter:
(c) Base Rent. The reference point from which the lawful rent shall be determined and adjusted in accordance with this chapter:
(1) Tenancies that commenced before the day this chapter was created.
The base rent for tenancies that commenced before the day this chapter was created shall be the rent in effect on the day before this chapter was created.
(2) Tenancies commencing on or after the day this chapter was created. The base rent for tenancies that commence on or after the day this chapter was created shall be the initial rental rate charged upon initial occupancy, provided that amount is not a violation of this chapter or any provision of state law. The term "initial rental rate" means only the amount of rent actually paid by the tenant for the initial term of the tenancy. (d) Bona Fide Offer of Sale. An offer of sale for a housing accommodation or interest in the housing accommodation that is either
(1) For a price and other material terms that are at least as favorable as those accepted by a purchaser in an arm's length third-party contract; or (2) In the absence of an arm's length third-party contract, an offer of sale with a price and other material terms comparable to that at which a willing seller and a willing buyer would sell and purchase the housing accommodation, or the appraised value.
(e) Buyout Agreement. A written agreement where a landlord pays a tenant money or offers a tenant other consideration to voluntarily vacate a rental unit. (1) Buyout Offer. An offer; written or oral, by a landlord to a tenant to pay money or other consideration to vacate a rental unit.
(g) City Council. The City Council of the City of Pomona. (h) City Manager. The City Manager of the City of Pomona or the designated representative of the City Manager.
(i) Community Tenant Organization. Any at-large organization that represents the interests of tenants.
(i) Covered Rental Unit. All rental units not specifically exempted under section 20-4 or article II herein.
(k) Disabled. A person with a disability. The term "disability" is defined in California Government Code Section 12955.3.
(1) Fair Return. A fair return shall be determined by using the maintenance of net operating income (MNOI) standard as outlined in section 20-58 herein. (m) Hearing Officer. An official appointed by the Rent Board to conduct an investigation or administrative hearing pursuant to this chapter. (n) Highest and Best Use. The reasonably probable and legal use of a property that is physically possible, appropriately supported, financially feasible, and that results in the highest value.
(o) Housing Accommodation. A structure in the City of Pomona containing 1 or more rental units and the appurtenant land.
(p) Housing Services. Housing services include, but are not limited to, repairs, maintenance, painting, providing light, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, utility charges that are paid by the landlord, refuse removal, furnishings, telephone, parking, the right to have a specified number of occupants, and any other benefit, privilege, arrangement or facility provided or contracted for in connection with the use or occupancy of any rental unit. housing services to a rental unit shall include a proportionate part of services provided to common facilities of the building in which the rental unit is contained.
(q) Indexing Ratio. The percent by which the percent increase in the Consumer Price Index (CPI) is multiplied in the calculation of the annual general adjustment. (r) Individual Rent Adjustment. An adjustment to the otherwise lawful rent that is authorized by a hearing officer or the Rent Board pursuant to this chapter:
10 (s) Junior Accessory Dwelling Unit. The term "junior accessory dwelling unit" has the same meaning as it does in Cal. Govt. Code § 65852.22 (h)(1). (t) Landlord. An owner, lessor, sublessor or any other person entitled to receive rent for the use and occupancy of any rental unit, or an agent, representative, predecessor, or successor of any of the foregoing. (1) Owner. An individual, corporation, association, joint venture, and/or business entity and its respective agents, who hold title to a housing accommodation.
(v) Petition. A petition for an individual rent adjustment pursuant to this chapter.
(W) Primary Residence. The occupant's usual place of return. To classify a unit as an occupant's primary residence does not require that the occupant be physically present in the unit at all times or continuously, but does require that the unit be the occupant's usual place of return. Factors that are indicative of primary residence include but are not limited to:
(1) The occupant carries on basic living activities at the subject premises for extended periods;
(2) The subject premises are listed with public agencies, including but not limited to federal, state and local taxing authorities, as the occupant's primary residence;
(3) utility charges and other charges and fees associated with usage of the structure are billed to and paid by the occupant at the subject premises; (4) The occupant does not file for a homeowner's tax exemption for any different property;
(5) The occupant is not registered to vote at any other location; and (6) Ownership is held in the name of the occupant claiming primary residence and not held by a Limited Liability Corporation or other corporate or business entity structure.
(x) Property. All rental units on a parcel or lot or contiguous parcels or contiguous lots under common ownership.
11 (y) Qualified tenant. Any tenant who satisfies any of the following criteria on the date of service of the written notice of termination described in Cal. Civil Code § 1946: has attained age 62; is handicapped as defined in Section 50072 of the Cal.
Health and Safe Code; is disabled as defined in Title 42 United States Code § 423; has a developmental disability as defined in Cal. Welfare and Institutions Code § 4512; is a child with a disability as defined in Title 20 United States Code § 1401(3); or is a person residing with and on whom is legally dependent (as determined for federal income tax purposes) one or more minor children. (z) Relocation Assistance. Financial assistance in the amounts set forth in section 20-10 (a) or amounts set forth by the Rent Board pursuant to section 20-10 (b). (aa) Rent. All periodic payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor performed or services rendered to or for the benefit of the landlord under a rental housing agreement concerning the use or occupancy of a rental unit and premises and attendant housing services, including all payment and consideration demanded or paid for parking, utility charges, pets, furniture, and/or subletting. (bb) Rent Board. The term "Rent Board" refers to the Pomona Rental Housing Board established by this chapter:
(cc) Rental Housing Agreement. An agreement, oral, written, or implied, between a landlord and tenant for use or occupancy of a rental unit and for housing services. For the purposes of this chapter, the terms "rental housing agreement" and "lease" are interchangeable.
(dd) Rental Housing Fee. The fee described in section 20-50 herein. (ee) Rental Unit. Any building, structure, or part thereof, or land appurtenant thereto, or any other rental property rented or offered for rent for residential purposes, whether or not the unit possesses a valid Certificate of Occupancy for use as rental housing, together with all housing services connected with use or occupancy of such property, such as common areas and recreational facilities held out for use by the tenant. For the purposes of this chapter, the terms "rental unit" and "unit" are interchangeable.
(ft) Security Deposit. Any payment, fee, deposit, or charge as defined in Section 1950.5 of the California Civil Code.
(gg) Single-Family Accommodation "Single-family accommodation" means:
12 (1) A housing accommodation, whether detached or attached, and the appurtenant land that contains:
(A)One single family dwelling; or
(B)One single-family dwelling with one accessory dwelling unit and/or one junior accessory dwelling unit; or
(2) A single rental unit in a common interest development as that term is defined in Cal. Civil Code § 4100.
(hh) Single-Family Dwelling. A structure, whether detached or attached, that contains a room or group of rooms forming a single living space, which includes a kitchen, that is used or intended to be used for living, eating, and sleeping, and the structure's appurtenant land.
(ii) Single-Family Home. A detached building containing a single residential dwelling unit separately alienable from any other dwelling unit. (i) Tenant. A tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a rental housing agreement or this chapter to the use or occupancy of any rental unit. The singular term "tenant" includes the plural. (kk) Tenant Association. Any group of tenants residing in rental units in the same building or in different buildings owned or operated by the same management company, agent, owner, or landlord, who choose to be so designated.
(II) Tenant Organization. An organization that represents at least a majority of the heads of household in the housing accommodation excluding those households in which no member has resided in the housing accommodation for at least 90 days and those households in which any member has been an employee of the owner or landlord during the preceding 120 days.
(mm) Utility Charges. Any charges for gas, electricity, water, garbage, sewer, telephone, cable, internet, or other service relating to the use and occupancy of a rental unit.
(nn) Written Notice to Cease. A written notice provided by a landlord that gives a tenant an opportunity to cure an alleged violation or problem prior to initiating legal proceedings to terminate tenancy. Any written notice to cease must:
13 (1) Provide the tenant a reasonable period to cure the alleged violation or problem;
(2) Inform the tenant that failure to cure may result in the initiation of eviction proceedings;
(3) Inform the tenant of the right to request a reasonable accommodation; (4) Inform the tenant of the contact number for the Rent Board; (5) Include a specific statement of the reasons for the written notice to cease with specific facts to permit a determination of the date, place, witnesses and circumstances concerning the reason for the eviction; (6) Where a breach of lease is alleged, inform the tenant what lease provision has been breached and what the tenant must do in order to cure the breach.
Sec. 20-4. - Exemptions.
(a) Fully exempt. The following rental units, and housing accommodations containing such rental units, are exempt from all provisions of this chapter:
(1) units in hotels, motels, inns, tourist homes and rooming and boarding houses which are rented primarily to transient guests for a period of fewer than thirty (30) days;
(2) rental units in any hospital, convent, monastery, extended medical care facility, asylum, non-profit home for the aged, or dormitory owned and operated by an accredited institution of higher education; (3) rental units owned or operated or managed by a not-for-profit organization pursuant to a tax credit program;
(4) rental units which a government unit, agency or authority owns, operates, or manages, or in which government-subsidized tenants reside, if applicable federal or state law or administrative regulation specifically exempt such units from municipal rent control; (5) rental units additionally exempted pursuant to article II. (b) Partially exempt, ie, exempt from rent stabilization. The following rental 14 units are exempt from articles IV, V, and VI of this chapter (regarding stabilization of rents), from article IX (regarding petitions for individual rent adjustment), and from article X (regarding tenant and City opportunities to purchase), but are not exempt from article III (tenant protections) and article VII (tenant buyout notification program):
(1) For fifteen (15) years from issuance of its first certificate of occupancy, any rental unit that is not a single-family home and that is issued its first certificate of occupancy after the effective date of this chapter. After the fifteen years, such rental units shall no longer be exempt from articles IV, V, VI, IX and X of this chapter to the extent allowed by law; (2) To the extent required by changes to state law after the effective date of this Chapter, rental units exempt from rent control pursuant to the Costa Hawkins Rental Housing Act (California Civil Code Section 1954.52. et seq.). Where rent restrictions are permitted by state law, the Rent Board may issue rules and regulations to govern the
restrictions on rental units identified in this paragraph.
ARTICLE II. - EXEMPTIONS FOR LOCAL HOMEOWNERS
Homeownership is of great importance to the residents of the City of Pomona. In addition to the rental units exempted in section 20-4(a) of this chapter, and notwithstanding any other provision of this chapter, the rental units meeting the requirements described in the sections of this article are also exempt from all provisions of this chapter.
Sec. 20-5. - Certain single-family homes and accessory dwelling units exempt.
(a) A homeowner whose primary residence is in the City of Pomona may submit to the Rent Board, for approval for exemption, provided it is not a rental unit at the time of submission, one single-family home (that is not the homeowner's primary residence) or one permitted accessory dwelling unit ("ADU") or one permitted junior accessory dwelling unit ("JADU"), which shall be approved and thereafter exempt from this chapter if, and only for so long as, the following conditions are met:
(1) The homeowner is a natural person, or a group of two or more natural persons, whose primary residence is in the City of Pomona, that has an ownership interest of at least fifty percent (50%) in the home, ADU or JADU being submitted, and that obtained written permission to seek 15 exemption for the home, ADU or JADU from everyone else that has an ownership interest in it; and
(2) No one with an ownership interest in the home, ADU or JADU has an ownership interest in any other home, ADU, or JADU that is exempt from this chapter under this section.
(b) Notwithstanding the foregoing, when a rental unit that has been exempt under section 20-5 (a) transfers ownership through foreclosure, section 20-9 herein applies.
Sec. 20-6. - Temporary rentals allowed.
A homeowner who is the primary resident of a single-family home may create a temporary tenancy in their primary residence that is exempt from this chapter. The temporary tenant must be provided, in writing at the inception of the tenancy, a statement of the length of the tenancy and a statement that the tenancy may be terminated at the end of the temporary tenancy and relocation assistance shall not be provided. This section only applies to tenancies that last no more than twelve (12) consecutive months.
Sec. 20-7. - Renting of a room unregulated.
The tenancy where the tenant shares a bathroom or kitchen with the homeowner shall be exempt from this chapter if the home is the primary residence of the homeowner.
ARTICLE III. - TENANT PROTECTIONS
Sec. 20-8. - Just cause for eviction protections.
No landlord shall take action to terminate any tenancy, or endeavor to recover possession of a rental unit, including but not limited to making a demand for possession of a rental unit, threatening to terminate a tenancy orally or in writing, serving any written notice to cease or other eviction notice, or bringing any action to recover possession, or be granted recovery of possession of a rental unit unless at least one of the following conditions exists:
(a) Failure to pay rent. The tenant has failed, after receiving a written notice to cease, to pay the rent to which the landlord is legally entitled under the rental housing agreement, this chapter, state, and any other local law. This condition does not include a failure to pay any separately charged fees. 16 (b) Breach of lease.
(1) A breach of lease occurs if the tenant has, after receiving a written notice to cease, continued to substantially violate any of the material terms of the rental housing agreement, other than a violation based on the following terms or any terms elaborated in regulations established by the Rent Board:
(A)The obligation to surrender possession upon proper notice; or (B)The obligation to limit occupancy, provided that the additional tenant who joins the occupants of the unit thereby exceeding the limits on occupancy set forth in the rental housing
agreement is either the first or second dependent child to join the existing tenancy of a tenant of record, the sole additional adult enant, or is a replacement tenant who moved in after an approve enant vacated the rental unit. For purposes of this paragraph, multiple births shall be considered as one child.
The landlord, however, has the right to approve or reasonably disapprove the prospective additional or replacement tenant, who is not a minor dependent child, provided that the approval is not unreasonably withheld. If the landlord fails to respond to the tenant in writing with a description of valid reasons for the denial of the request within 14 days of receipt of the tenant's written request, the tenant's request shall be deemed approved by the landlord; or
(C)A change in the terms of the tenancy that is not the result of an express written agreement signed by both parties. The
tenant must knowingly consent, without threat or coercion, to each change in the terms of the tenancy. A landlord is not required to obtain a tenant's written consent to a change in the terms of the tenancy if the change in the terms of the tenancy is authorized by this chapter, or if the landlord is required to change the terms of the tenancy pursuant to federal, state, or local law.
Nothing in this paragraph shall exempt a landlord
from providing legally required notice of a change in the terms of the tenancy.
(2) Protections for children, families, and other vulnerable tenants. The protections in subparagraph (b)(1)(B) herein shall be considered minimum protections. The Rent Board shall enact regulations that, to the extent permissible under law, promote stability for school-aged children and further protect families, people with disabilities, and the
elderly from disruptive eviction.
(c) Nuisance. The tenant is committing or permitting to exist a nuisance in, or is causing damage to, the rental unit or to the unit's appurtenances, or to the common areas of the property containing the rental unit, or is creating an unreasonable interference with the comfort, safety, or enjoyment of any of the other residents of the property or within a 1,000-foot radius extending from the boundary line of the property.
(d) Illegal purpose. The tenant is using, or permitting a rental unit, the common areas of the property containing the rental unit, or an area within a 1,000 foot radius from the boundary line of the property to be used for any illegal purpose.
The term "illegal purpose" as used in this subsection does not include the use of housing accommodations lacking a legal approved use or which have been cited for occupancy or other housing code violations.
(e) Refusal to execute new lease. The tenant, who had a rental housing agreement which terminated on or after the effective date of this chapter, has refused, after written request or demand by the landlord, to execute a written extension or renewal thereof for a further term of like duration with terms which are materially the same as in the previous agreement and provided that such terms do not conflict with any provision of this chapter or any other provision of law. (f) Failure to give access. The tenant, after service of proper notice, has refused the landlord reasonable access to the rental unit for the purpose of making repairs or improvements, or for the purpose of inspection as permitted or required by law, or for the purpose of showing the rental unit to any prospective purchaser or mortgagee. The notice shall inform the tenant that if they are unable to comply based on a disability-related reason, they have the right to request a reasonable adjustment or change in the landlord's policies or practices to accommodate the tenant's disability.
(g) Subtenant in sole possession. The person in possession of the rental unit at the end of a lease term is a subtenant in sole possession, not approved by the landlord.
(h) Owner move-in. The landlord seeks, after providing written notice to the tenant pursuant to state law, to recover possession of the rental unit in good faith for use and occupancy as a primary residence by the landlord, or the landlord's spouse, domestic partner, children, grandchildren, parents or grandparents. 18 (1) As used in subsection (h) herein, landlord shall only include a landlord that is a natural person and has at least a fifty percent (50%) recorded ownership interest in the property.
(2) No eviction may take place under this subsection if the same landlord or enumerated relative already occupies a unit on the property, or if a vacancy already exists on the property. If a comparable unit does become vacant and available before the recovery of possession, the landlord shall rescind the notice to vacate and dismiss any action filed to recover possession of the rental unit.
(3) Any notice terminating tenancy pursuant to this subsection shall contain the name, address and relationship to the landlord of the person intended to occupy the rental unit and the rights pursuant to paragraph (5) herein.
(4) The landlord or enumerated relative must intend in good faith to move into the rental unit within sixty (60) days after the tenant vacates and to occupy the rental unit as a primary residence for at least thirty-six 36) consecutive months. The Rent Board may adopt regulations governing the determination of good faith.
(5) If the landlord or relative specified on the notice terminating tenancy fails to occupy the rental unit within sixty (60) days after the tenant vacates, the landlord shall:
(A)Offer the rental unit to the tenant who vacated it at the same rent in effect when the tenant vacated; and
(B)Pay to said tenant all reasonable expenses incurred in moving to and from the rental unit.
(6) Eviction protection for elderly or disabled tenant. A landlord may not evict a tenant pursuant to subsection (h) herein if the tenant (A) has resided in the rental unit for at least five (5) years and is either at least sixty-two (62) years old or disabled; or (B) is certified as being terminally ill by the tenant's treating physician. Notwithstanding the above, a landlord may evict a tenant who qualifies for the exemption herein if the landlord or enumerated relative who will occupy the rental unit also meets the criteria for this exemption and no other units are available. (7) Notwithstanding paragraph (6) herein, at all times a landlord may 19 request a reasonable accommodation if the landlord or enumerated relative is disabled and another unit in Pomona is necessary to accommodate the person's disability.
(1) Necessary and substantial repairs requiring temporary vacancy. The landlord, after having obtained all necessary permits from the City of Pomona, and having provided written notice to the tenant, seeks in good faith to undertake substantial repairs that are necessary to bring the rental unit into compliance with applicable codes and laws affecting the health and safety of tenants of the building, provided that:
(1) The repairs necessitate that the tenant vacate the rental unit because the work will render the rental unit uninhabitable for a period of not less than thirty (30) days;
(2) The landlord gives advance notice to the tenant of the right to elect between:
(A)Moving into a comparable vacant rental unit owned by the exists dat the same rent, if such comparable vacant unit (B)The first right of return to reoccupy the rental unit upon completion of the repairs at the same rent charged to the tenant before the tenant temporarily vacated the rental unit. (3) In the event that the tenant elects subparagraph (i)(2)(A) above, i.e., to move into a comparable vacant rental unit at the same rent, the tenant is not eligible for any relocation assistance pursuant to section 20-10 herein, however the length of tenancy shall continue to be calculated from the date the tenant first entered into a rental housing agreement at the property.
(4) In the event the landlord files a petition for individual rent adjustment within six (6) months following the completion of the work, the tenant shall be party to such proceeding as if he or she were still in possession, unless the landlord submits with such petition a written waiver by the tenant of his or her right to reoccupy the rental unit pursuant to this subsection.
(j Withdrawal of the unit permanently from rental market. To the extent Cal.
Government Code § 7060 et seq. requires this chapter to permit the landlord to withdraw all rental units of an entire property from the rental market, the landlord may seek in good faith to recover possession of such
20 rental units. The landlord first must have filed the requisite documents with the Rent Board initiating the procedure for withdrawing rental units from rent or lease under Cal. Government Code § 7060 et. seq. and all regulations passed by the Rent Board, with the intention of completing the withdrawal process and going out of the rental business or demolition of the property. If demolition is the purpose of the withdrawal, then the landlord must have received all needed permits from the City of Pomona before serving any notices terminating a tenancy based on this subsection. Tenants shall be entitled to a minimum of 120-day notice or 1 year in the case tenants are defined as senior or disabled and are otherwise eligible for such notice under Cal. Government Code § 7060.4(b).
Notice times may be increased by regulations if state law allows for additional time. The Rent Board or the City Council may further restrict or remove the ability of a landlord to utilize this paragraph in the event the state law is amended.
(k) Government order. The landlord seeks in good faith to recover possession of the rental unit in order to comply with a governmental agency's order to vacate, order to comply, order to abate, or any other order that necessitates the vacating of the building housing the rental unit as a result of a violation of the Pomona City Code or any other provision of law.
Sec. 20-9. - Tenant protections during foreclosure.
Notwithstanding anything to the contrary in section 20-4 or article II herein, a landlord who obtains title through foreclosure to property containing rental units subject to this chapter may bring an action to recover possession of the rental unit from a tenant whose tenancy commenced on or before the date that the landlord obtained title, only upon the grounds set forth in section 20-8. To recover possession of the rental unit from a tenant, the landlord must comply with all the require ments and provisions of this article, including, without limitation, the payment of relocation assistance required pursuant to the provisions of section 20-10.
Sec. 20-10. - Relocation assistance.
A landlord seeking to recover possession under section 20-8 (h), (i), (i), or (k) herein shall provide relocation assistance to affected tenant households. The landlord shall notify the affected tenants of their rights under this subsection, if any, at the time of service of the notice to quit.
(a) Relocation assistance shall initially be provided to the tenants) in a rental unit as follows:
(1) If all the tenants have lived in the rental unit for fewer than three years and at least one of them is a qualified tenant, the amount is 21 $15,600. If all the tenants have lived in the rental unit for fewer than three years and none of them is a qualified tenant, the amount is $7,400. If at least one of the tenants is a qualified tenant who has lived in the rental unit for more than three years, the amount is $18,400. If at least one of the tenants, but no qualified tenant, has lived in the rental unit for more than three years, the amount is $9,700. If the household income of the rental unit is at or below the Low Income Limit for the Los Angeles-Long Beach-Anaheim Metropolitan Statistical Area, as adjusted for household size, as defined by the U.S. Department of Housing and Urban Development, regardless of length of tenancy, the amount is $18,400 if at least one of the tenants is a qualified tenant, or $9,700 if none is a qualified tenant. These amounts shall increase annually by the percentage increase in the annual Consumer Price Index described in section 20-25 (a)(2). (A)The entire amount shall be paid to a tenant who is the only tenant in the rental unit.
(B) If two or more tenants occupy the rental unit, then each tenant shall be paid an equal pro-rata share of the relocation assistance.
(C) If more than one amount applies to the rental unit, the landlord shall pay the higher amount for the rental unit. (2) Tenants who claim eligibility based on their income shall file a statement with the Rent Board verifying their income on a form prescribed by the Rent Board. The form shall be delivered to the tenant by the landlord together with the notice seeking recovery of possession. Requests for a hearing to appeal a decision regarding a tenant's relocation assistance eligibility, including disputes about eligibility for higher relocation assistance based on a tenant's income, age, length of tenancy, family status and/or disability status, must be filed in writing on the form prescribed by the Rent Board and received by the Rent Board within fifteen (15) calendar days of the date of the Rent Board's notification of its decision regarding relocation
assistance.
(b) The Rent Board shall issue rules and regulations to effectuate this section including but not limited to rules and regulations setting forth the procedures for establishing the amount of relocation assistance applicable to any given tenant household, and for the reasonably timely payment of any applicable relocation assistance. In no event shall the amount of relocation assistance be less than the amount provided for in Cal. Health
22 and Safety Code § 17975.2. The relocation assistance shall be paid to any tenant who vacates the rental unit no later than the time he or she vacates the rental unit.
Sec. 20-11. - Right of return and first right of refusal.
All tenants whose tenancy is terminated on a basis enumerated in section 20-8 (h), (i), (i), or (k) herein shall, to the maximum extent permitted by state law, have the first right of refusal to return to the rental unit if that rental unit is returned to the market by the landiord or successor landlord. rent for the rental unit shall, to the maximum extent permitted by state law, be the rent lawfully paid by the tenant at the time the landlord gave notice of termination based upon section 20-8 (h), (i), (i), or (k) herein.
Sec. 20-12. - Required notice for withdrawal of rental units from rental housing and regulation of property on re-offer of rent or lease after withdrawal.
Within 180 days of the first meeting of the Rent Board, the Rent Board shall adopt regulations, in the manner specified by Cal, Government Code § 7060.5, that implement all the provisions set forth in Cal. Government Code § 7060 et seg. Such regulations shall be updated from time to time to ensure consistency with Cal.
Government Code § 7060 et seq. and to ensure that the maximum protections authorized by law are afforded to tenants of rental units.
Sec. 20-13. - Posting of notice.
For every property containing rental units subject to this chapter, the landlord shall post a notice on a form prepared and authorized by the Rent Board, providing information about the existence of this chapter. Notice must be posted in a conspicuous location in the lobby of the property, near a mailbox used by all tenants, or in or near a public entrance to the property. The notice shall be written in English and Spanish, and in any other languages as required by the Rent Board.
Sec. 20-14. - Security deposits.
No landlord shall increase a security or other deposit originally required from a tenant as a condition of continued occupancy of a rental unit subject to this chapter. landlords shall pay interest annually on all security deposits held for at least one year for his or her tenants. The interest rate to be paid on security deposits shall be set annually by the Rent Board every September. A tenant shall be given the unpaid accrued interest in the form of either a direct payment or a credit against the tenant's rent. 23 Sec. 20-15. - Retaliation is barred.
No landlord may threaten to bring, or bring, an action to recover possession, cause the tenant to quit the unit involuntarily, serve any written notice to cease or notice of termination of tenancy, decrease any services or increase the rent where the landlord's dominant motive is retaliation against the tenant for the tenant's assertion or exercise of rights under this chapter. Such retaliation shall be a defense to an action to recover possession, or it may serve as the basis for an affirmative action by the tenant for actual and punitive damages and injunctive relief. A tenant may assert retaliation affirmatively or as a defense to the landlord's action regardless of the period of time which has elapsed between the tenant's assertion or exercise of rights under this chapter and the alleged act of retaliation. The Rent Board may address retaliation issues further in its rules and regulations consistent with the intent of this subsection to prevent unlawful retaliation. The Rent Board shall maintain records of complaints received regarding violations of this chapter, and shall, upon request, make certified copies available to tenants of records of complaints initiated by tenants regarding their rental units.
Sec. 20-16. - Harassment is prohibited.
No landlord may threaten to bring, or bring, an action to recover possession, cause the tenant to quit the rental unit involuntarily, serve any written notice to cease or notice of termination of tenancy, decrease any services, refuse to accept or acknowledge receipt of a tenant's lawful rent pursuant to this chapter, or interfere with the tenant's quiet enjoyment of the rental unit and common areas as part of an attempt to increase the rent above the maximum allowable rent permitted under this chapter, either by obtaining such excessive rent from the tenant or by creating a vacancy and increasing the rent to a new tenant. Such harassment shall be a defense to an action to recover possession, or it may serve as the basis for an affirmative action by the tenant for actual and punitive damages and injunctive relief. The Rent Board may address harassment issues further in its rules and regulations consistent with the intent of this subsection to prevent unlawful harassment.
Sec. 20-17. - Notice to specify basis for termination.
Any notice purporting to terminate tenancy on any of the bases specified in this article must state with specificity the basis on which the landlord seeks to terminate the tenancy.
Sec. 20-18. - Notice of the existence of this chapter required at commencement of tenancy.
The landlord of any covered rental unit is required to comply with the following 24 notice requirements at the commencement of any tenancy:
(a) On or before the date of commencement of a tenancy, the landlord must give the tenant a written notice in a form prescribed by the Rent Board which must include the following information:
(1) The existence and scope of this chapter, including all tenant protections; and
(2) The tenant's right to petition against certain rent increases. (b) The landlord must give the initial notice to the tenant in the language that was used to negotiate the terms of the tenancy.
(c) Upon tenant's request, the landlord must provide the tenant with a copy of this chapter.
Sec. 20-19. - Landlord compliance with this chapter.
In any action brought to recover possession of a rental unit subject to this chapter, the landlord shall allege compliance with this chapter.
Sec. 20-20. - Filing termination notices with the Rent Board.
The landlord shall file with the Rent Board a copy of any notice terminating tenancy, including a written notice to cease, within three (3) business days after serving the notice on the tenant.
Sec. 20-21. - Non-waivability.
Any provision of a rental housing agreement, whether oral or written, that purports to waive any provision of this chapter established for the benefit of the tenant, shall be deemed to be against public policy and shall be void.
Sec. 20-22. - Failure to comply.
A landlord's failure to comply with any requirement of this article, including without limitation the failure to file any of the required notices with the Rent Board, is a complete affirmative defense in an unlawful detainer or other action brought by the landlord to recover possession of the rental unit.
25 ARTICLE IV. - STABILIZATION OF RENTS
Sec. 20-23. - Rents stabilized.
Upon the effective date of this chapter, no landlord shall charge rent for a covered rental unit in an amount that exceeds the sum of the base rent plus any lawful rent increases actually implemented pursuant to this chapter.
Sec. 20-24. - Rent increases regulated.
No landlord shall increase rent for a covered rental unit except as authorized by this chapter. Rent increases shall be limited to those permitted by article V and article IX. A landlord may set the initial rent for a new tenancy pursuant to article VI.
ARTICLE V. - RENT INCREASES PURSUANT TO ANNUAL GENERAL
ADJUSTMENT
Sec. 20-25. - Annual general adjustment.
No later than June 30th each year, the Rent Board shall announce the amount of the annual general adjustment, which shall be effective as of September Ist of that year. The annual general adjustment is the percentage by which the rent for existing tenancies in covered rental units may be increased each year, subject to the limitations of this chapter.
(a) The annual general adjustment shall be equal to the percentage increase in the annual average Consumer Price Index (CPI) for the twelve-month period ending as of March of the current year multiplied by the indexing ratio, rounded to the nearest one-quarter of a percent. The indexing ratio shall initially be 80%.
The Rent Board may adopt a different indexing ratio to achieve the purposes of this chapter, but in no event shall it be greater than 100%. (1) For example, had this chapter been in effect in 2019, the annual general adjustment announced by June 30, 2019 and effective as of September 1, 2019 would have been calculated as follows: The sum of the 12 CPIs from April 2017 to March 2018 ÷ 12 = 258.518; The sum of the 12 CPIs from April 2018 to March 2019 ÷ 12 = 267.794; ((267.794 - 258.518) ÷ 258.518) × 100 = he percent increase in the annual average CPI for the twelve-montr eriod ending as of March 2019 = 3.59% × 80% (the indexing ratio) = 2.87% which, rounded to the nearest one quarter of a percent = 3% = the annual general adjustment.
26 (2) The CPI to be used for calculations in this section is All Items, All Urban Consumers, Los Angeles-Long Beach-Anaheim Area, not seasonally adjusted, Base Period 1982-84=100, or any successor designation of that index that may later be adopted by the U.S.
Department of Labor, Bureau of Labor Statistics.
(b) Subsection (a) of this section notwithstanding, in no event shall the annual general adjustment be less than zero percent (0%) or more than five percent Sec. 20-26. - One rent increase per year.
No more than one rent increase per twelve-month period may be imposed on a tenant.
Sec. 20-27. - Notice of rent increase required.
Allowable rent increases pursuant to the annual general adjustment shall become effective only after the landlord provides written notice to the tenant in the manner prescribed by law, with at least thirty (30) days advance written notice.
Sec. 20-28. - Required notice to increase rent or change other terms of tenancy.
As part of any notice to increase rent or change any terms of tenancy, a landlord must include:
(a) Notice of the existence of this chapter; and
(b) The right to petition against any rent increase in excess of the annual rent adjustment unless such rent increase is pursuant to a decision granting a petition.
(c) No rent increase shall take effect until the requirements of this subsection have been met.
Sec. 20-29. - Conditions under which rent increase not permitted. No rent increase shall be effective if the landlord:
(a) Has failed to substantially comply with all provisions of this chapter and all rules and regulations promulgated by the Rent Board; or
27 (b) Has failed to maintain the rental unit in compliance with Cal. Civil Code §§ 1941.1 et seq. and Cal. Health and Safety Code §§ 17920.3 and 17920.10; or (c) Has failed to make repairs ordered by a hearing officer, the Rent Board, or the City of Pomona.
ARTICLE VI. - INITIAL RENTS FOR NEW TENANCIES
Sec. 20-30. - Setting of initial rents without restriction.
To the extent required by state law, landlords may set the initial rent for new tenants without regulation by this chapter.
Sec. 20-31. - Restrictions on initial rent for new tenancies.
To the maximum extent permitted by state law, the initial rent for new tenancies in shall be subject to the restrictions of this chapter. The Rent Board shall issue rules and regulations to govern the restrictions on the initial rent for new tenancies where such restrictions are permitted by state law.
Sec. 20-32. - Rent increases after setting an initial rent.
After the landlord sets an initial rent pursuant to this section, the landlord may only increase the rent in accordance with this chapter. The landlord may not increase rent based on cost increases, capital improvements, or other circumstances that arose before the new tenancy began.
ARTICLE VII. - TENANT BUYOUT NOTIFICATION PROGRAM Sec.
20-33. - Purpose.
The Tenant Buyout Notification Program provides for regulation, monitoring and enforcement of voluntary vacancies of rental units subject to this chapter occurring pursuant to a buyout agreement. To promote fairness during buyout negotiations and agreements, this section requires tenants be informed of their rights under this chapter before executing a buyout agreement. The Rent Board may promulgate regulations to implement this section.
Sec. 20-34. - Disclosure notice.
Before making a buyout offer, the landlord shall provide the tenants) with a notice which shall be written in the primary language of the tenant on a form 28 prepared and authorized by the Rent Board, which shall be dated and signed by the landlord and the tenants).
Sec. 20-35. - Buyout agreement requirements.
(a) Every buyout agreement shall be written in the primary language of the tenant and state in a minimum of 12-point bold type above the tenant signature line as follows:
"You, (tenant name), may cancel this buyout agreement any time up to 30 days after all parties have signed this Agreement without any obligation or penalty." (b) Every buyout agreement shall advise the tenant that he/she/they have the right:
(1) Not to enter into a buyout agreement;
(2) To consult an attorney and/or the Rent Board before signing the buyout agreement; and
(3) To cancel the buyout agreement at any time up to 30 days after all parties have signed it.
(c) Every buyout agreement shall be signed and dated by the landlord and tenant.
(d) A copy of the fully executed buyout agreement shall be given to the tenant. Sec. 20-36. - Cancellation of buyout agreement.
(a) A tenant shall have the right to cancel a buyout agreement for any reason for up to 30 days after execution by the landlord and the tenant without any financial obligation or penalty.
(b) Whenever the notice required pursuant to this section and/or the buyout agreement does not conform to the requirements of this section or Rent Board regulations, the tenant shall have the right to cancel the buyout agreement through the applicable statute of limitations period
Sec. 20-37. - Filing executed disclosure notice and buyout agreement.
The landlord shall file with the Rent Board copies of the notice required pursuant to section 20-34 signed by the tenant and the landlord and the buyout agreement within 60 days of execution of the buyout agreement.
Sec. 20-38. - Affirmative defense.
A violation of this article may be asserted as an affirmative defense in an unlawful detainer action.
Sec. 20-39. - Private right of action.
A tenant may bring a private right of action against a landlord who violates a provision of this article and recover damages and a penalty of $1,000.
ARTICLE VIII. - POMONA RENTAL HOUSING BOARD
Sec. 20-40. - Created.
There is created the Pomona Rental Housing Board ("Rent Board"), which shall function and perform such duties as set forth in this article.
Sec. 20-41. - Appointment, composition, and eligibility.
The Rent Board shall be comprised of seven (7) Pomona residents who submitted applications pursuant to section 20-42, who are appointed by the City Council in accordance with Section 801 of article VIII of the Pomona City Charter: Of the seven members of the Rent Board, at least three (3) shall be tenants, and no more than two (2) may be residential rental property owners, property managers, realtors, or developers of market rate housing. Members of the Rent Board must be in compliance with this chapter and all other local, state and federal laws regulating the provision of housing.
Annually, the Rent Board shall elect one of its members to serve as chairperson.
Sec. 20-42. - Application.
Applicants for membership on the Rent Board shall submit an application to the City Council. The application shall be made on a form provided by the City Manager, and shall include a verified statement under penalty of perjury of the applicant's interests and dealings in real property, including but not limited to, ownership, trusteeship, sale, or management, and investment in, or association with, partnerships, corporations, joint ventures, and syndicates engaged in ownership, sale, or management of real property during the 3 years immediately prior to the applicant's application. If the applicant is a residential rental property owner or property manager, or developer of market rate housing, the application shall also include a verified statement under penalty of perjury that the applicant
30 has been in compliance with this chapter and all other local, state and federal laws regulating the provision of housing during the three (3) years immediately prior to the applicant's application. This documentation shall be made available to the public.
Sec. 20-43. - Powers and duties.
The Rent Board shall have the following powers and duties:
(a) Set rents at fair and equitable levels to achieve the purposes of this chapter.
Notwithstanding any other provision of this chapter, the Rent Board shall have the authority to adopt regulations authorizing rent increases and/or adjustments required by state or federal law.
(b) Establish rules and regulations for administration and enforcement of this chapter:
(c) Determine and publicize the annual general adjustment pursuant to this chapter.
(d) Appoint hearing officers to conduct hearings on petitions for individual rent adjustment pursuant to this chapter.
(e) Adjudicate petitions pursuant to this chapter and issue decisions with orders for appropriate relief pursuant to this chapter:
(f) Establish procedures and timelines for hearings on petitions, including determining the timelines and procedures for appeals to the Rent Board. (g) Administer oaths and affirmations and subpoena witnesses and relevant documents.
(h) Establish a budget for the reasonable and necessary implementation of the provisions of this chapter; including without limitation the hiring of necessary staff, and charge fees as set forth herein in an amount sufficient to support that budget. The budget may include expenditures to advance the policies herein. (i) Administer the withdrawal process for the removal of rental units from the rental housing market.
G) Hold public hearings.
(k) Conduct studies, surveys, investigations, and hearings, and obtain 31 information to further the purposes of this chapter. (1) Report annually to the City Council on the status of rental units subject to this chapter. Reports shall be made available to the public and include, but not be limited to: (1) a summary of the numbers of written notices to cease served pursuant to this chapter, including the bases upon which they were served, (2) a summary of any and all petitions submitted to and/or decided by a hearing officer and/or the Rent Board pursuant to this chapter, including the bases on which the petitions were submitted and the determinations on the petitions, (3) a summary of all evictions pursuant to section 20-8 (i), and (4) buyout agreements pursuant to article VII.
(m) Publicize through reasonable and appropriate means the provisions of this chapter, including without limitation the rights and responsibilities of landlords and tenants.
(n) Establish a schedule of penalties that may be imposed for noncompliance with this chapter or with rules and regulations promulgated under this chapter. (o) Pursue civil remedies as provided by this chapter in courts of appropriate jurisdiction.
(p) Intervene as an interested party in any litigation brought before a court of appropriate jurisdiction by a landlord or tenant with respect to rental units subject to this chapter.
(g) Any other duties necessary to administer and enforce this chapter. Sec. 20-44. - Rules and regulations.
The Rent Board shall issue and follow such rules and regulations as will further the purposes of the chapter.
Sec. 20-45. - Meetings.
The Rent Board shall hold regularly scheduled meetings as necessary to ensure the performance of its duties under this chapter. All regular and special meetings shall be called and conducted in accordance with state law.
Sec. 20-46. - Quorum.
Four board members shall constitute a quorum for the Rent Board. 32 Sec. 20-47. - Voting.
The affirmative vote of four (4) Rent Board members is required for a decision, including on all motions, regulations, and orders of the Rent Board.
Sec. 20-48. - Compensation.
Notwithstanding Section 2-524 of the Pomona City Code, each Rent Board member shall receive for every meeting attended $75.00. In no event shall any board member receive in any 12-month period more than $3,600.00 for meeting attendance. The City Council may, from time to time, increase the compensation of the Rent Board members.
Sec. 20-49. - Financing.
The Rent Board shall finance its reasonable and necessary expenses, including without limitation engaging any staff as necessary to ensure implementation of this chapter, by charging landlords an annual rental housing fee as set forth herein, in amounts deemed reasonable by the Rent Board in accordance with applicable law. The Rent Board is also empowered to request and receive funding when and if necessary from any available source including the City for its reasonable and necessary expenses.
Sec. 20-50. - Rental housing fee.
All landlords shall pay a rental housing fee on an annual basis. The first Rent Board convened after the effective date of this chapter shall determine the amount of the rental housing fee. The amount of the rental housing fee may differ between rental units subject to the entirety of this chapter and those that are partially exempt. The Rent Board may adjust the amount of the rental housing fee at its discretion to ensure full funding of its reasonable and necessary expenses, in accordance with all applicable law.
(a) Pass-through to tenants. The amount of the rental housing fee, if any, that a landlord may pass through to a tenant is determined by the Rent Board. If the Rent Board determines that part of the rental housing fee may be passed through to tenants, the pass-through must be in the form of a rent surcharge prorated over a 12-month period. The portion of the rental housing fee that may be passed through to a tenant shall not exceed 50%. No fee may be passed through if it has not actually been paid by the owner.
(b) No pass through for Section 8 tenants. No portion of the rental housing fee may be passed through to tenants whose tenancy is governed by a Section 8 Housing Choice Voucher Program contract. The landlord does not have to 33 pay the Rent Board the portion of rental housing fee that the landlord could pass through to the tenant but for this subsection.
Sec. 20-51. - City to advance initial funds.
During the initial implementation of this chapter, the City shall advance all necessary funds to ensure the effective implementation of this chapter, until the Rent Board has collected rental housing fees sufficient to support the implementation of this chapter. After the rental housing fee has been collected, the City may seek from the Rent Board a reimbursement of any funds that the City advanced.
Sec. 20-52. - Integrity and autonomy of the Rent Board.
The Rent Board shall be an integral part of the government of the City, but shall exercise its powers and duties under this chapter independently from the City Council, City Manager, and City Attorney, except by request of the Rent Board. The Rent Board may request the services of the City Attorney, who shall provide them pursuant to Section 703 of the Charter.
Sec. 20-53. - Rent Board legal work.
The Rent Board may, in its sole discretion, and without approval of the City Council, retain private attorneys and/or staff attoreys to furnish legal advice or representation.
Sec. 20-54. - Conforming regulations.
If any portion of this chapter is declared invalid or unenforceable by decision of a court of competent jurisdiction or rendered invalid or unenforceable by state or federal legislation, the Rent Board and not the City Council shall have authority to enact replacement regulations consistent with the intent and purpose of the invalidated provision and applicable law. Such replacement regulations shall supersede invalidated or unenforceable provisions of this chapter to the extent necessary to resolve any inconsistency. The subject matter of such replacement regulations shall be limited to the matters addressed in this chapter.
Sec. 20-55. - Conflict of interest.
A Rent Board member shall not necessarily be disqualified from exercising any of his or her powers and duties on the grounds of a conflict of interest solely on the basis of his or her status as a residential rental property owner; property manager, realtor, developer, or tenant. However, a Board member shall be disqualified from ruling on a petition if the Board member is either the landlord of the property or a 34 tenant residing in the property that is involved in the petition. The provisions of the Political Reform Act, Cal. Government Code §§ 87100 et seq. shall apply.
Sec. 20-56. - Initial appointment and interim authority for implementation.
Each City Councilmember who was elected at the same election at which this chapter was created shall appoint a member to the initial Rent Board pursuant to Section 801(a) of the Charter and this chapter within sixty (60) days of assuming office.
Each other City Councilmember shall appoint a member to the initial Rent Board pursuant to Section 801(c) of the Charter and this chapter within sixty (60) days of the effective date of this chapter. During the period of time, if any, from the effective date of this chapter until the establishment of the Rent Board, the City Council shall enforce the terms of this chapter, assuming the powers and duties of the Rent Board on an interim basis and making available public guidance to those affected by its provisions.
ARTICLE IX. - PETITIONS FOR INDIVIDUAL RENT ADJUSTMENT Sec. 20-57. - In general.
A landlord or a tenant mayin accordance with the standards set forth in this article, and using the procedures set forth in section 20-60 herein and implementing regulations-file a petition with the Rent Board seeking adjustment, either upward or downward, of the rent for any given tenancy. A petition shall be on a form provided by the Rent Board and, if made by the landlord, shall include a declaration under penalty of perjury by the landlord that the covered rental unit at issue complies with all requirements of this chapter and that the landlord is in compliance with all requirements of this chapter.
Sec. 20-58. - Petition for upward adjustment-fair return.
To effectuate the purposes of this chapter and the requirements of law, a landlord may file a petition for an upward adjustment of the rent to ensure a fair return. It is the intent of this chapter that individual upward adjustments in rent be granted only when the landlord demonstrates that such adjustments are necessary to provide the landlord with a fair return. The Rent Board may promulgate regulations to further govern petitions filed pursuant to this section in accordance with law and the purposes of this chapter.
(a) Prerequisites. No upward adjustment of rent shall be authorized by a hearing officer or the Rent Board under this subsection if the landlord:
(1) Has continued to fail to comply, after order of the Rent Board or other authority, with any provisions of this chapter or orders or regulations issued thereunder; or
(2) Has failed to maintain the covered rental unit in compliance with Cal.
Civil Code §§ 1941.1 et seq. and Cal. Health and Safety Code §S 17920.3 and 17920.10.
(b) Eair return. A fair return shall be determined by using the maintenance of net operating income (MNOI) standard as follows:
(1) Presumption of fair base year net operating income. It shall be presumed that the net operating income received by the landlord in the base year provided a fair return.
(2) Fair return. A landlord has the right to obtain a fair return, which is a net operating income equal to the base year net operating income adjusted by a "percentage" of the percentage increase in the annual Consumer Price Index (CPI) since the base year. It shall be presumed that this standard provides a fair return. The "percentage" shall be 80% unless the Rent Board adopts a different "percentage" to achieve the purposes of this chapter. In no event shall the "percentage" be greater than 100%. (A)The CPI used in all calculations in this Section shall be All Items, All Urban Consumers, Los Angeles-Long Beach
Anaheim Area, not seasonally adjusted, Base Period 1982- 84=100 (or any successor designation of that index that may later be adopted) as reported and published by the U.S.
Department of Labor, Bureau of Labor Statistics.
(3) Base year, typically. For the purposes of making fair return determinations pursuant to this section, unless paragraph (b)(4) below applies, the calendar year 2019 is the base year. Unless paragraph (b)(4) below applies, the base year CPI shall be 274.114.
(4) Base year, subsequent petitions. In the event that a determination of the allowable rent is made pursuant to this section, if a subsequent petition is filed, the base year shall be the year that was considered as the "current year" in the prior petition.
(5) Current year. The "current year" shall be the calendar year preceding the year in which the petition is filed. The "current year CPI" shall be the annual CPI for the current year.
36 (6) Adjustment of base year net operating income. Landlords or tenants may present evidence to rebut the presumption that the base year net operating income provided a fair return. Grounds for rebuttal of the presumption shall be based on at least one of the following findings:
(A)Exceptional expenses in the base year. The landlord's operating expenses in the base year were unusually high or low in comparison to other years. In such instances,
adjustments may be made in calculating operating expenses in order that the base year operating expenses reflect average expenses for the property over a reasonable period of time. The following factors shall be considered in making such a finding:
(i) Extraordinary amounts were expended for necessary
maintenance and repairs.
(i) Maintenance and repair expenditures were exceptionally low so as to cause inadequate maintenance or significant deterioration in the quality of services provided.
(iii) Other expenses were unreasonably high or low
notwithstanding the applieation of prudent business
practices.
(B)Exceptional circumstances in the base year. The gross income during the base year was disproportionately low due to
exceptional circumstances. In such instances, adjustments may be made in calculating base year gross rental income consistent with the purposes of this chapter. The following factors shall be considered in making such a finding:
(i) Whether the gross income during the base year was lower than it might have been because some residents were
charged reduced rent.
(i) Whether the gross income during the base year was
significantly lower than normal because of the destruction of the premises and/or temporary eviction for construction or repairs.
(iii) The pattern of rent increases in the years prior to the base year and whether those increases reflected
increases in the CPI.
37 (iv) Base year rents were disproportionately low in
comparison to the base year rents of other rental units in the City.
(v) Other exceptional circumstances.
(7) Calculation of net operating income. Net operating income shall be calculated by subtracting operating expenses from gross rental income. (A)Gross rental income shall include gross scheduled rental income at one hundred percent (100%) occupancy plus all other income or consideration received or receivable in connection with the use or occupancy of the rental units), except as provided in
sub-subparagraph (b)(7)(A)(ii) below.
(i) For any rental unit that was vacant during part of the currented on the bat for the ime it was a an aall be
rented after the vacancy. For any rental unit that is
vacant at the time that gross rental income is calculated: the rent for the time it has been vacant shall be calculated on the basis of the average rent for comparable rental
units on the property that had vacancy increases within the current year or the two years prior to the current
year; but if there are no such units on the property the rent shall be calculated on the basis of the average rent for comparable rental units in Pomona that have recently had vacancy increases.
(ii) Gross rental income shall not include: utility charges for sub-metered gas, electricity or water; charges for refuse disposal, sewer service and/or other services that are
either provided solely on a cost pass-through basis and/or are regulated by state or local law; charges for laundry services; storage charges.
(B)Operating expenses shall include:
(i) Reasonable costs of operation and maintenance (including property insurance).
(ii) Management expenses. It shall be presumed that
management expenses have increased between the base
year and the current year by the percentage increase in rents or the CPI, whichever is greater, unless the level of management services has either increased or decreased
significantly between the base year and the current year.
This presumption shall also be applied in the event that management expenses changed from owner management to
management by a third party or vice versa.
(iii) Utility costs, except for a utility service where the consideration of the income associated with the provision of the utility service is regulated by state law and consideration of the costs associated with the provision of the utility service is preempted by state law, and except for a utility service where the income associated with the provision of the utility is not included in gross rental income because it is recouped from the tenants on a cost pass-through basis. (iv) Real property taxes, subject to the limitation that property taxes attributable to an assessment in a year other than the base year or current year shall not be considered in calculating base year and/or current year operating
expenses.
(v) License, registration, and other public fees required by law to the extent these expenses are not otherwise paid or
reimbursed by tenants.
(vi) Landlord-performed labor compensated at reasonable hourly rates. However, no landlord-performed labor shall be included as an operating expense unless the landlord submits documentation showing the date, time, and nature of the work performed. There shall be a maximum allowed under
this provision of five percent (5%) of gross rental income unless the landlord shows greater services were performed for the benefit of the tenants. The Rent Board may adopt regulations to establish the reasonable hourly rate(s) that will be presumed to apply to landlord performed labor.
(vil) Reasonable attorneys' fees, expenses, and/or costs incurred in connection with: successful good faith attempts to
recover rents owing; successful, good faith unlawful
detainer actions not in derogation of applicable law; legal work necessary in dealings with respect to the
39 normal operation of the property; and the successful pursuit of rights under or in relationship to this chapter and/or regulations adopted pursuant to this chapter;
including the pursuit of successful petitions.
To the extent that included attorneys' fees, expenses, and/or costs are not annually reoccurring and are substantial, they shall be amortized over a five-year period, unless the Rent Board adopts a different amortization period that it
concludes is more reasonable. At the end of the
amortization period, the rent shall be decreased by any amount it was increased because of the application of this provision.
(vili)The amortized costs of capital improvements plus an interest allowance to cover the amortization of those
costs. For purposes of this section, a capital
improvement shall be any improvement to a rental unit or rental units that has a useful life of more than one year and a direct cost per affected rental unit equal to or greater than $250 (unless the Rent Board adopts a different amount), and that materially adds to the value of the property,
appreciably prolongs the life of the rental units), or adapts the rental units) to new use.
Included capital improvement costs shall be subject to
the following conditions:
(1) The amortization period shall be in conformance with a schedule adopted by the Rent Board unless it is
determined that an alternate period is justified based
on evidence presented in a hearing. In no event shall
the amortization period be less than thirty-six (36)
months. At the end of the
amortization period, the rent shall be decreased by
any amount it was increased because of the
application of this provision.
(II) The costs do not include costs incurred to bring the rental units) into compliance with a provision of the
Pomona City Code or state law where the
original installation of the improvement was not in
compliance with the Pomona City Code or state law.
40 (III) The costs, less any insurance proceeds or other applicable recovery, are averaged on a per unit
basis for each rental unit actually benefited by
the improvement.
(IV) The costs do not include any additional costs
incurred for property damage or deterioration
that resulted from any unreasonable delay in
undertaking or completing any repair or
improvement.
(ix) An interest allowance on the cost of amortized expenses.
The allowance shall be the "interest rate" on the cost of the amortized expense. The "interest rate" shall be the "average rate" for thirty-year fixed rate mortgages plus a percentage.
That percentage shall be two percent (2%) unless the Rent Board adopts a different percentage that it believes is more reasonable. The "average rate" shall be the rate that, as of the date of the initial submission of the petition, Freddie Mac last published in its weekly Primary Mortgage Market Survey (PMMS). In the event that this index is no longer published, the Rent Board shall designate by regulation an index which the Rent Board deems most comparable to the PMMS, and it shall be used.
(C)Operating expenses shall not include:
(i) Mortgage principal or interest payments or other debt service costs and costs of obtaining financing.
in pen of an es or in nest sealer ra any other
provision of law.
(ill) Land lease expenses.
(iv) Political contributions and payments to organizations which are substantially devoted to legislative lobbying purposes.
(v) Depreciation.
41 (vi) Any expenses for which the landlord has been
reimbursed by any utility rebate or discount, security
deposit, insurance settlement, judgment for damages,
settlement, or any other method or device.
(vil) Unreasonable increases in expenses since the base year. (vill)Expenses associated with the provision of master
metered gas and electricity services.
(ix) Expenses which are attributable to unreasonable delays in performing necessary maintenance or repair work or the
failure to complete necessary replacements. (For example, if a roof replacement is unreasonably delayed, the full cost of the roof replacement would be included in operating
expenses, but if water damage occurred as a result of
unreasonable delays in repairing or replacing the roof, it would not be reasonable to include the cost of repairing the water damage.)
(D)Adjustments to an operating expense may be made in order to establish an expense amount for that item which most reasonably serves the objectives of obtaining a reasonable comparison of base year and current year expenses and determining a fair return.
Base year and/or current year operating expenses may be averaged with other expense levels for other years, or amortized, or adjusted by the CPI, or adjusted to reflect levels that are normal for comparable residential rental units, or may otherwise be adjusted. If the claimed operating expense levels are exceptionally high compared to prior expense levels and/or industry standards, the landlord shall have the burden of proof of demonstrating that they are reasonable and or reflect recurring expense levels.
Expenses which are exceptional and reasonable shall be
amortized in order to achieve the objectives of this section.
Grounds for such adjustments include, but are not limited to:
(i) An expense item for a particular year that is not
representative.
(ii) The base year expense is not a reasonable projection of average past expenditures for that item in the years
immediately preceding or following the base year.
42 (iii) The current year expense is not a reasonable projection of expenditures for that item in recent years or of future expenditures for that item.
(iv) A particular expense exceeds the normal industry or other comparable standard for the area.
(v) A base year expense is exceptionally low by industry standards and/or on an inflation-adjusted basis is
exceptionally low relative to current year expenses
although the level or type of service has not changed
significantly.
(vi) An increase in maintenance or management expenses is disproportionate to the percentage increase in the CPI, while the level of services has not changed significantly and/or is not justified by special circumstances.
(E) If the landlord does not have base year operating expense data, it shall be presumed that operating expenses increased by the percentage increase in the CPI between the base year and the current year. This presumption is subject to the exception that specific operating expenses shall be adjusted by other amounts when alternate percentage adjustments are supported by a preponderance of evidence (such as data on changes in the rates of particular utilities or limitations on increases in property taxes). (8) Rent increases for periods preceding date that a landlord implemented rent increases pursuant to this section. In the event that the period for determining the allowable rent increase pursuant to this section exceeds 120 days, the landlord may recover increases that would have been permitted if the rent increase decision had been made within 120 days. The allowance for these increases may be amortized or may be factored into the prospective allowable increase in order to avoid undue hardship on the tenants.
(9) Impact of vacancy decontrol on rent increases based on capital improvements. If a rental unit becomes vacant during the pendency of a schedule that provides for the expiration of increases for capital improvements, and the rental unit qualifies for a vacancy increase pursuant to Cal. Civil Code § 1954.53, the capital improvements schedule shall immediately terminate.
43 (10)Conditional rent increase for anticipated, necessary capital improvements. In order to encourage necessary capital improvements, a landlord may include in a petition a request for a conditional rent increase based upon anticipated future expenses for necessary capital improvements. The purpose of this procedure is to permit landlords to seek advanced authorization for future rent increases based upon anticipated, necessary capital improvements. Such a request should only be made for anticipated expenses that the landlord intends to incur during the twelve-month period following the date of a final decision in which the conditional increase is granted. This procedure shall not be used for anticipated expenses for ordinary repairs and maintenance. (A) If the conditional rent increase is granted in whole or in part, the rent increase shall be postponed until such time as the capital improvements are made and an addendum authorizing implementation of the increases is issued.
(i) No addendum authorizing implementation of the increase shall be issued unless the capital improvements are
completed within twelve months from the date of the final decision in which the conditional rent increase was
granted, unless the landlord obtains an addendum that
extends the time period to complete the capital
improvements for just cause.
(B)Any rental unit which received a vacancy rent increase pursuant to Cal.Civil Code § 1954.53 within the two years prior to a petition that includes a request for a conditional rent increase shall be ineligible for a rent increase for the portion of any upward rent adjustment based on the cost of anticipated, necessary capital improvements.
(c) Limits to annual upward rent adjustments. Notwithstanding any other provisions of this section, the Rent Board shall protect tenants from substantial rent increases that are not affordable, and that may force tenants to vacate their homes, resulting in consequences contrary to the purposes of this chapter, namely, to maintain the diversity of the Pomona community, to preserve the public peace, health and safety, and to advance the housing policies of the City with regard to low- and fixed-income persons, minorities, students, people with disabilities, and seniors. The Rent Board shall establish regulations to limit the annual impact of rent increases allowed by this section. If the amount of a rent increase granted under this section exceeds the limit, the portion in excess shall be deferred
44 and may be implemented in subsequent years, along with an appropriate interest allowance.
(d) Relationship of upward individual rent adjustment to annual general adjustment.
Any determination made pursuant to this section shall take into account the extent of any rent increases based upon the annual general adjustment that the landlord may be implementing, or may otherwise be or become entitled to, and the individual rent adjustment may be limited or conditioned accordingly.
If it is determined that the landlord is not entitled to an individual rent adjustment, the landlord may implement rent increases allowed by article V of this chapter.
(e) Constitutional right to a fair return. It shall be presumed that the MNOI standard provides a fair return. No provision of this chapter shall be applied to so as to prohibit the Rent Board from granting an individual rent adjustment that is demonstrated by the landlord to be necessary to meet constitutional fair return requirements.
(f) Effective date of individual rent adjustment. Rent increases authorized pursuant to this subsection shall become effective only after the landlord provides the tenant written notice of such rent increase pursuant to state law and this chapter.
Sec. 20-59. - Petition for downward adjustment.
(a) Failure to maintain habitable premises. Failure to maintain a covered rental unit in compliance with governing health and safety and building codes, including but not limited to Cal. Civil Code §S 1941.1 et seq. and Cal. Health and Safety Code §§ 17920.3 and 17920.10, constitutes an increase in rent. A tenant may file a petition with the Rent Board to adjust the rent downward based on a loss in rental value attributable to the landlord's failure to maintain the rental unit in habitable condition. A petition filed by a tenant pursuant to this subsection must specify the conditions alleged to constitute the failure to maintain the rental unit in habitable condition and demonstrate that the landlord was provided with reasonable notice and opportunity to correct the conditions that form the basis for the petition. A decision granting a downward rent adjustment pursuant to this subsection shall remain in effect until the Rent Board determines that the landlord has corrected the conditions warranting the decrease. The Rent Board shall, by regulation, establish procedures for making prompt compliance determinations.
45 (b) Decrease in housing services or maintenance. A decrease in housing services or maintenance, or deterioration of a covered rental unit beyond ordinary wear and tear, without a corresponding reduction in rent, is considered an increase in rent. A tenant may file a petition to adjust the rent downward based on a loss in rental value attributable to a decrease in housing services or maintenance or deterioration of the rental unit. A petition filed by a tenant pursuant to this subsection must specify the conditions alleged to constitute deterioration beyond ordinary wear and tear, or a decrease in housing services or maintenance, and demonstrate that the landlord was provided with reasonable notice and opportunity to correct the conditions that form the basis for the petition. A decision granting a downward rent adjustment pursuant to this subsection shall remain in effect until the Rent Board determines that the landlord has corrected the conditions warranting the decrease. The Rent Board shall, by regulation, establish procedures for making prompt compliance determinations.
(c) Unlawful rent. If a landlord demands or retains rent in excess of the lawful rent pursuant to this chapter, a tenant may file a petition to adjust the rent to its lawful level. If such a petition is granted, the landlord shall be ordered to retur any excessive rent charged to the tenant in violation of this chapter.
Sec. 20-60. - Procedures for petitions.
The Rent Board shall promulgate regulations regarding procedures for petitions filed under this chapter and to ensure that those procedures are not abused. petitions shall be governed by such regulations and by the provisions of this section. (a) Hearing Officer. A hearing officer appointed by the Rent Board shall conduct a hearing to act upon the petition, and shall have the power to administer oaths and affirmations, and to render a final decision on the merits of the petition, subject to the provisions of this chapter:
(b) Notice. The Rent Board shall notify the landlord, if the petition was filed by a tenant, or the tenant, if the petition was filed by the landlord, of the receipt of the petition, and shall provide a copy thereof. The Rent Board or the hearing officer shall notify all parties as to the time, date, and place of any hearing regarding the petition.
(c) Prehearing notice and document exchange. Each party to a petition shall provide to each other party sufficient advance notice of the relief the party is seeking, the alleged grounds for that relief, the documents the party intends to present, and witnesses the party may call. Each party to a 46 petition shall also provide to each other party, sufficiently in advance of the hearing, copies of the documents that the party intends to present at the hearing.
(d) Developing the record. The hearing officer may require any party to a petition to provide any documents, books, records, or papers deemed pertinent. If the hearing officer finds good cause to believe that a building or other inspection would assist in resolving the issues raised by the petition, the hearing officer may conduct an inspection and/or request the City to conduct an inspection.
The tenant may request that the hearing officer order such an inspection prior to the date of the hearing. The parties to the hearing may be present during the inspection. All documents acquired pursuant to this subsection shall be made available, prior to the hearing if possible, to the parties. (e) Open hearings. All hearings conducted pursuant to this section shall be open to the public unless prohibited by state or federal law. (f) Right of assistance. All parties to a hearing conducted pursuant to this section may have assistance in presenting evidence and developing their position from attorneys, legal workers, tenant association representatives, community tenant organization representatives or any other persons designated by said parties.
(g) Hearing record. The record of the hearing, or any part of one, shall be obtainable by any person for the reasonable cost of copying. All hearings shall be audio or video recorded, as ordered by the hearing officer, and any party to the petition may receive a copy of the recording upon payment of a reasonable cost. (h) Quantum of proof and notice of decision. No petition for individual rent adjustment, whether upward or downward, shall be granted unless supported by a preponderance of the evidence. All parties to a hearing shall be sent a copy of the decision and, at the same time, notice of their right to appeal to the Rent Board and/or to seek judicial review. The decision shall include findings of fact and law upon which it is based.
(i) Consolidation. Whether submitted by a landlord or tenants), all petitions pertaining to covered rental units at the same property may be consolidated for hearing upon a showing of good cause.
() Appeal. Any party aggrieved by the decision of the hearing officer may appeal to the full Rent Board for review. On appeal, the Rent Board shall affirm, reverse, or modify the decision of the hearing officer. Upon a
47 showing of good cause, the Rent Board may hear additional testimony or eceive additional evidence. The decision on appeal shall be based on th tearing record and any additional testimony or evidence received by th Rent Board.
(1) Finality of decision. The decision of the hearing officer shall be the final decision of the Rent Board, unless an aggrieved party has timely sought an appeal to the Rent Board. The decision of the Rent Board on appeal shall be final unless an aggrieved party has timely sought judicial review pursuant to law.
(k) Time for decision. A final decision on any petition shall be made within a reasonable time.
ARTICLE X - TENANT AND CITY OPPORTUNITIES TO PURCHASE Sec. 20-61. - Tenant opportunity to purchase; "sale" defined (a) An owner of a housing accommodation shall give the tenant an opportunity to purchase the housing accommodation at a price and terms that represent a bona fide offer of sale-
(1) before the owner may sell the housing accommodation, or (2) unless subparagraph (A) applies, before the owner may seek to withdraw the housing accommodation from the rental market. (A)Provided that Cal. Government Code § 7060 et seq. ("the Ellis Act") requires this chapter to permit the owner to withdraw all rental units of an entire property from the rental market, and provided that timelines under section 20-69, section 20-70, or section 20-71 have not already commenced with respect to the housing accommodation, and notwithstanding any other
provision of this article, an owner of a housing accommodation shall provide an offer of sale conforming to section 20-63, thereby commencing timelines under section 20-69, section 20- 70, or section 20-71, at the same time that the owner initiates a procedure for withdrawing the accommodations from rent or lease under the Ellis Act and any regulations passed by the Rent Board to implement it.
(B)Provided that the Ellis Act requires this chapter to permit the owner to withdraw all rental units of an entire property from 48 the rental market, nothing in this article shall alter or delay the procedure and timelines specified in the Ellis Act and the regulations passed by the Rent Board to implement it, and the owner's obligations under this article, and a tenant's and the City's rights under this article, and the rights of any party in conjunction with whom the tenant or the City is exercising
those rights or to whom the tenant or the City has assigned or sold those rights, cease to exist if and when the tenant's rental unit is legally withdrawn from the rental market.
(b) Whenever an offer of sale that is required by subsection (a) of this section is made to tenants for a housing accommodation with 5 or more rental units, and the offer is made in the absence of an arm's-length third-party contract, the following shall apply:
(1) The sales price contained in the offer of sale shall be less than or equal to a price and other material terms comparable to that at which a willing seller and a willing buyer would sell and purchase the housing accommodation, or the appraised value of the housing accommodation as determined by this subsection.
(2) An appraised value shall only be based on rights an owner has as of the date of the offer, including any existing right an owner may have to convert the property to another use.
(3) Within the restrictions of paragraph (2) of this subsection, an appraised value may take into consideration the highest and best use of the property.
(4) The owner of the housing accommodation shall have the burden of proof to establish that an offer of sale under this subsection is a bona fide offer of sale.
(5) (A) A tenant organization registered according to subsection 20-71(a) may challenge the offer presented by an owner of a housing accommodation as not being a bona fide offer of sale, and request a determination of the appraised value of the housing accommodation. (B)The tenant organization shall request an appraisal by delivering the request to the City Manager and the owner by hand or by certified mail within 45 days of receipt of the (C)(i) The tenant organization and owner of the housing 49 accommodation shall jointly select an appraiser. If within 14 days after a tenant organization has requested an appraisal, the tenant organization and owner of the housing
accommodation have not agreed upon an appraiser, either party may request that the City Manager select an appraiser.
(ii) A request that the City Manager select an appraiser shall be in writing and delivered by hand or by certified
mail to the City Manager and to the owner or to a
member of the board of the tenant organization.
(iii) The City Manager shall select the appraiser on a sole source basis within 7 days of receiving the request for an appraiser:
(D)The tenant organization and owner of the housing
accommodation shall pay one-third and two-thirds of the cost of the appraisal, respectively.
(E)(i) The appraiser shall hold an active license as a Certified General Appraiser that has been issued by the California Bureau of Real Estate Appraisers.
(ii) The owner shall give the appraiser full, unfettered access to the property.
(iii) The owner shall respond within 7 days to any request for information from the appraiser.
(iv) The tenant organization may give the appraiser
information relevant to the valuation of the property.
(F) The appraisal shall be completed expeditiously according to standard industry timeframes.
(6) Beginning with the date of a tenant organization request for an receives a preach day eration period described in suasiction 20-71(b) shall be extended by one day.
(7) (A) The determination of the appraised value of the housing accommodation in accordance with this subsection shall become the sales price of the bona fide offer of sale for the housing accommodation unless:
50 (i) The owner and the tenant organization agree upon a different sales price of the housing accommodation; or
(ii) The owner elects to withdraw the offer of sale within 14 days of the receipt of the appraisal by the owner.
(B)i) The owner shall withdraw the offer of sale by delivering by hand or by certified mail a letter of withdrawal to the City Manager and a member of the board of directors of the tenant organization.
(ii) Upon the election to withdraw the offer of sale, the owner shall reimburse the tenant organization for its
entire share of the cost of the appraisal within 14 days of delivery pursuant to sub-subparagraph (i) of this
subparagraph.
(iii) An owner who withdraws an offer of sale in accordance with this subparagraph shall be precluded from making
a subsequent offer of sale to the tenant organization
without an arm's-length third party contract for 3
months from the date of the election to withdraw the
offer of sale.
(8) Within 30 days of the receipt of the appraisal conducted by an appraiser selected by the City Manager pursuant to subparagraph (5)(C) of this subsection, either the tenant organization or the owner of the housing accommodation may challenge the appraisal as being in violation of the requirements of this subsection in the Superior Court of the State of California for the court to take any appropriate action the court may deem necessary.
(c) For the purposes of this article, the terms "sell" or "sale" include, but are not limited to, the execution of any agreement pursuant to which the owner of the housing accommodation agrees to some, but not all, of the following:
(1) Relinquishes possession of the property;
(2) Extends an option to purchase the property for a sum certain at the end of the assignment, lease, or encumbrance and provides that a portion of the payments received pursuant to the agreement is to be applied to the purchase price;
51 (3) Assigns all rights and interests in all contracts that relate to the property;
(4) Requires that the costs of all taxes and other government charges assessed and levied against the property during the term of the agreement are to be paid by the lessee either directly or through a surcharge paid to the owner;
(5) Extends an option to purchase an ownership interest in the property, which may be exercised at any time after execution of the agreement but shall be exercised before the expiration of the agreement; and (6) Requires the assignee or lessee to maintain personal injury and property damage liability insurance on the property that names the owner as the additional insured.
(d) (1) For the purposes of this article, the term "sell" or "sale" shall include:
(A)A master lease which meets some, but not all, of the factors described in subsection (c) of this section or which is similar in effect; and
(B)(i) The transfer of an ownership interest in a corporation, partnership, limited liability company, association, trust, or other entity which owns a housing accommodation as its sole or principal asset, which, in effect, results in the transfer of the housing accommodation pursuant to subsection (a) of this section.
(ii) For the purposes of sub-subparagraph (i) of this
subparagraph, the term "principal asset" means the
value of the housing accommodation relative to the
entity's other holdings.
(2) For the purposes of this article, and notwithstanding anything to the contrary herein, the term "sell" or "sale" shall not include:
(A)(i) A transfer, even though for consideration, by a decedent's estate to members of the decedent's family if the consideration arising from the transfer will pass from the decedent's estate to, or solely for the benefit of, charity.
(il) For purposes of sub-subparagraph (i) of this
subparagraph, the term "members of the decedent's
52 family" means:
(I) A surviving spouse, or domestic partner pursuant to Division 2.5 of the Cal. Family Code (beginning with
§ 297), of the decedent, lineal descendants of
the decedent, or spouses of lineal descendants of
the decedent;
(II) A trust for the primary benefit of the persons
referred to in sub-sub-subparagraph (I) of this sub
subparagraph; and
(III) A partnership, corporation, or other entity
controlled by the individuals referred to in sub
sub-subparagraphs (I) and (II) of this sub
subparagraph;
(B)An inter-vivos transfer, even though for consideration, between spouses, parent and child, siblings, grandparent and grandchild, or domestic partners pursuant to Division 2.5 of the Cal. Family Code (beginning with § 297);
(C)A transfer of legal title or an interest in an entity holding legal title to a housing accommodation pursuant to a bona fide deed of trust or mortgage, and thereafter any transfer by foreclosure sale or deed in lieu of foreclosure pursuant to a bona fide deed of trust or mortgage;
(D)A tax sale or transfer pursuant to tax foreclosure;
(E)A bankruptcy sale;
(F) Any transaction involving housing accommodations otherwise subject hereto expressly contemplated by a registration statement filed with the Securities and Exchange Commission prior to the date this chapter is created;
(G)Any transfer of a property directly caused by a change in the form of the entity owning the property; provided, that the transfer is without consideration, including a transfer of interests in an entity to an entity under Cal. Corporations Code § 1158, § 15911.09, § 16909, or § 17710.09;
(H)The transfer of interests in a partnership or limited liability 53 company that owns a housing accommodation as its sole or principal asset; provided, that the sole purpose of the transfer is to admit one or more limited partners or investor members who will make capital contributions and receive tax benefits pursuant to section 42 of the United States Internal Revenue Code (26 U.S.C. § 42), or a comparable State of California, County of Los Angeles, or City of Pomona program;
(I) A transfer of title to the housing accommodation to an entity under Cal. Corporations Code § 1158, § 15911.09, § 16909, or § 17710.09;
(J) A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust;
(K)A transfer of the housing accommodation to a named
beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust;
(L) A transfer of the housing accommodation by the trustee of a revocable trust if the transfer would otherwise be exempt under this paragraph if made by the grantor of the revocable trust;
(M) A transfer pursuant to court order or court-approved settlement; and
(N) A transfer by eminent domain or under threat of eminent domain.
(3) The City Council shall add or remove an exemption (or exemptions) from paragraph (2) of this subsection if necessary to conform this article to California state law.
(4) An owner who is uncertain as to the applicability of this article shall be deemed to be an aggrieved party for the purposes of seeking relief under section 20-74. The tenant or tenant organization in such a housing accommodation shall be deemed to be an aggrieved party, for these purposes
(e) (1)(A) In addition to any other notice required by this article, if an opportunity to purchase is not provided under this section, the owner shall provide each tenant and the City Manager written notice ("Notice of
54 Transfer") of the transfer of an interest in a housing accommodation or of any ownership interest in a corporation, partnership, limited liability company, association, trust, or other entity which owns a housing accommodation. (B) Notwithstanding any other provision in this article, an owner shall not be required to file a Notice of Transfer for a transfer exempt under subparagraphs (d)(2)(A), (C), (D), (E), (F), (D), (J, (K), (L), (M), or (N) of this section; provided, that a notice of the transfer ("Notice of Transfer Pursuant to an Exemption" shall be filed with the City Manager in a form prescribed by the City Manager. (2) The Notice of Transfer shall be sent by registered or certified mail, return receipt requested, by commercial overnight delivery service that maintains proof of delivery, or by personal service, at least 90 days prior to the proposed date of transfer. Notice to tenants shall be sent to their address at the housing accommodation unless a tenant has supplied in writing to the owner a different address for notice.
(3) (A) The Notice of Transfer shall be substantially in the form prescribed by the City Manager and shall provide, at a minimum, a statement of the tenant or tenant organization's rights under this chapter, an accurate description of the transfer containing all material facts, the date of the proposed transfer, and the reason, if any, why the owner asserts the transfer may not constitute a sale.
(B) In addition to any other requirements for the form of the Notice of Transfer prescribed pursuant to subparagraph (A) of this paragraph, a Notice of Transfer for a housing
accommodation to be transferred for the purposes of receiving tax benefits pursuant to section 42 of the United States Internal Revenue Code (26 U.S.C. § 42), or a comparable State of California, County of Los Angeles, or City of Pomona
program, shall include a description of each applicable federal, state, county or city subsidy, and a description of the steps in the transaction employed by the developer to avail itself of each subsidy.
(4) The owner's failure to provide the Notice of Transfer, or the provision of a notice that is fraudulent or contains material misrepresentations or material omissions, shall create a rebuttable presumption that the transfer constitutes a sale for purposes of this article. (5) (A) An aggrieved tenant or tenant organization duly organized under 55 section 20-71(a) and meeting pursuant to its bylaws, whichever shall be applicable, may, within 45 days of the City Manager's receipt of the Notice of Transfer, file a notice indicating an intent to file a petition for relief pursuant to section 20-74 ("Notice of Intent to File Petition"). (B)A Notice of Intent to File Petition shall be delivered by registered or certified mail, return receipt requested, by commercial overnight delivery service that maintains proof of delivery, or by personal service to the City Manager and simultaneously to the owner. The owner's address shall be that set forth in the Notice of Transfer.
(C) Failure of an aggrieved tenant or tenant organization to file timely the Notice of Intent to File Petition shall preclude the tenant or tenant organization from asserting any rights under this article relating to the transfer identified in the Notice of Transfer:
(6) A tenant or tenant organization shall have 30 days from the receipt by the City Manager of the Notice of Intent to File Petition to file a petition for relief under section 20-74. A copy of the petition shall be delivered to the owner by registered or certified mail, return receipt requested, or by personal service.
Failure of a tenant or tenant organization to file timely the petition for relief shall preclude the tenant or tenant organization from asserting any rights under this article relating to the transfer identified in the Notice of Transfer:
(7) (A) Notwithstanding the time requirements for notice in subparagraph (e) (5)(A) of this section, an aggrieved tenant or tenant organization, whichever shall be applicable, may, within 30 days of the City Manager's receipt of the Notice of Transfer Pursuant to an Exemption pursuant to an exemption in subparagraph (e)(1)(B) of this section, file a Notice of Intent to File Petition.
(B)(i) Failure of a tenant or tenant organization, pursuant to subparagraph (7)(A) of this subsection, to file timely the Notice of Intent to File Petition shall preclude the tenant or tenant organization from asserting any rights under this article relating to the transfer identified in the Notice of Transfer Pursuant to an Exemption.
(ii) A tenant or tenant organization shall be precluded from asserting any rights under this article for a transfer
exempt under subparagraph (d)(2)(C) of this section.
56 (CAny change in the circumstances of transfer or in the transfer agreement that would invalidate a claim of exemption shall be immediately reported in writing to the City Manager and proper notice shall be immediately provided to the tenant or tenant organization.
(8) For the purposes of providing notice under this subsection, the term "tenant" shall mean the person or persons who, under the terms of the lease or any amendment or consent executed pursuant thereto, are entitled to occupy the rental unit.
(9) (A) Within 5 days of request by any person, the City Manager shall provide:
(i) Written certifications, including date of receipt or non receipt, of any notices received under this article; and (ii) Copies of the notices.
Sec. 20-62. - Registration of a tenant organization.
In a housing accommodation of 5 or more units, the tenants may form and register the tenant organization with the City Manager, pursuant to subsection 20- 71(a), at any time; provided, that this section shall not be construed to alter the time periods within which a tenant organization may exercise the rights afforded by this article. A tenant organization may file a petition for relief pursuant to section 20-74.
Sec. 20-63. - Offer of sale.
The owner shall provide each tenant a written copy of the offer of sale by certified mail and post a copy of the offer of sale in a conspicuous place in common areas of the housing accommodation if it consists of more than one rental unit. The owner shall provide the City Manager with a written copy of the offer of sale by certified mail or in person. The owner shall certify to the City Manager that the City Manager and each tenant were provided copies of the offer of sale on the same day. Within 4 business days of receiving a copy of an offer of sale, the City Manager shall exercise its best efforts to contact all affected tenants and provide them with the contact information of organizations that provide tenants advice concerning their rights under this article.
An offer includes, at a minimum:
57 (a) The asking price and material terms of the sale; (b) A statement that the tenant has the right to purchase the housing accommodation under this article and a summary of tenant rights, available sources of technical assistance, and a list of organizations from which the tenant may seek help to exercise the right to purchase as published by the City Manager pursuant to paragraph 20-74(a)(4); provided, however, that if no such summary has been published, the owner will be deemed in compliance with this subsection; (c) A statement as to whether a contract with a third party exists for sale of the accommodation and that the owner shall make a copy of any such contract available to the tenant within 7 days after receiving a request; and (d) A statement that the owner shall make available to the tenant a floor plan of the building and an itemized list of monthly operating expenses, utility consumption rates, and capital expenditures for each of the 2 preceding calendar years within 7 days after receiving a request. The statement shall also indicate that the owner shall, at the same time, make available the most recent rent roll, list of tenants, and list of vacant apartments. If the owner does not have a floor plan, the owner may meet the requirement to provide a floor plan by stating in writing to the tenant that the owner does not have a floor plan.
Sec. 20-64. - Third party rights.
The right of a third party to purchase an accommodation is conditional upon exercise of tenant rights under this article. The time periods for negotiation of a contract of sale and for settlement under this article are minimum periods, and the owner may afford the tenants a reasonable extension of such period, without liability under a third party contract. Third party purchasers are presumed to act with full knowledge of tenant rights and public policy under this article.
Sec. 20-65. - Contract negotiation.
(a) Bargaining in good faith. The tenant and owner shall bargain in good faith. The following constitute prima facie evidence of bargaining without good faith:
(1) The failure of an owner to offer the tenant a price or term at least as favorable as that offered to a third party within the periods specified in subsection 20-69(g), subsection 20-70(d) or subsection 20-71(d), as applicable, without a reasonable justification for failing to do so; 58 (2) The failure of an owner to make a contract with the tenant which substantially conforms with the price and terms of a third party contract within the time periods specified in subsection 20-69(g), subsection 20-70(d) or subsection 20-71(d), as applicable, without a reasonable justification for failing to do so; or
(3) The intentional failure of a tenant or an owner to comply with the provisions of this article.
(b) Reduced price. If the owner sells or contracts to sell the housing accommodation to a third party for a price more than 10% less than the price offered to the tenant or for other terms which would constitute bargaining without good faith, the owner shall comply anew with all requirements of sections 20-69, 20-70, and 20-71, as applicable. (c) Financial assurances. The owner shall not require the tenant to prove financial ability to perform as a prerequisite to entering into a contract. The owner shall not require the tenant to pay the purchase price in installments unless the owner provides deferred purchase money financing on terms reasonably acceptable to the tenant. The owner may require the tenant to prove that the tenant, either alone or in conjunction with a third party, has comparable financial ability to the third-party contractor before the owner will be required to grant deferred purchase money financing to the tenant on the same terms and conditions agreed between the owner and the third party contractor. If the tenant can prove comparable financial ability alone, the owner shall not require the tenant to secure a third-party guarantor. This proof cannot be required as a prerequisite to contracting. It may be required only as a prerequisite to the owner granting deferred purchase money financing at settlement.
(d) Transfers of interest in a partnership or corporation and master leases. In the event of a transfer of interest in a partnership or corporation or in the event of a master lease or agreement that is considered a sale within the meaning of section 20-61, but which does not involve a transfer of record title to the real property, the owner shall be bargaining in good faith if the owner offers the tenant the opportunity to acquire record title to the real property or offers the tenant the opportunity to match the type of transfer or agreement entered into with the third party. With respect to either type of offer, all provisions of this article apply.
(e) Deposit. The owner shall not require the tenant to pay a deposit of more than 5% of the contract sales price in order to make a contract. The deposit is refundable in the event of a good faith failure of the tenant to perform under the contract.
59 Sec. 20-66. - Exercise or assignment of rights.
The tenant may exercise rights under this article in conjunction with a third party or by assigning or selling those rights to any party, whether private or governmental. The exercise, assignment, or sale of tenant rights may be for any consideration which the tenant, in the tenant's sole discretion, finds acceptable. Such an exercise, assignment, or sale may occur at any time in the process provided in this article and may be structured in any way the tenant, in the tenant's sole discretion, finds acceptable.
Sec. 20-67. - Waiver of rights.
An owner shall not request, and a tenant may not grant, a waiver of the right to receive an offer of sale under this article. An owner shall not require waiver of any other right under this article except in exchange for consideration which the tenant, in the tenant's sole discretion, finds acceptable.
Sec. 20-68. - Right of first refusal.
In addition to any and all other rights specified in this article, a tenant or tenant organization shall also have the right of first refusal during the 15 days after the tenant or tenant organization has received from the owner a valid sales contract to purchase by a third party. If the contract is received during the negotiation period pursuant to subsection 20-69(b), subsection 20-70(b), or subsection 20-71(b), the 15- day period will begin to run at the end of the negotiation period. In exercising rights pursuant to this section, all rights specified in this article shall apply except the minimum negotiation periods specified in subsection 20-69(b), subsection 20-70(b), and subsection 20-71(b).
Sec. 20-69. - Single-family accommodations.
The following provisions apply to single-family accommodations. (a) Written statement of interest.
(1) Upon delivery of a written offer of sale from the owner, the tenant shall have 20 days to deliver a written statement of interest to the owner.
(2) The tenant's statement of interest shall be a clear expression of interest on the part of the tenant to exercise the right to purchase the housing accommodation as specified in this article.
60 (3) A tenant's failure to deliver a written statement of interest to the owner in a timely manner shall be deemed a waiver of the tenant's rights under this section.
(b) Negotiation period. If a tenant has delivered a written statement of interest in accordance with subsection (a) of this section, the owner shall afford the tenant at least 25 days after delivery of the statement of interest to the owner to negotiate a contract of sale, not including the 20 days provided by subsection (a) of this section. For every day of delay by the owner in providing information as required by this article, the negotiation period is extended by one day. (c) Time before settlement.
(1) The owner shall afford the tenant at least 45 days after the date of contracting to secure financing and financial assistance and to go to settlement.
(2) If, within 45 days after the date of contracting, the tenant presents the owner with the written decision of a lending institution or agency that states that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within 75 days after the date of contracting, the owner shall afford an extension of time consistent with the written estimate.
(d) Assignment of rights.
(1) The only consideration a tenant may receive for the sale or assignment of the tenant's rights under this article is the right to immediately use and occupy the tenant's unit for a period of 12 months following the sale of the single-family accommodation at the rate of rent charged to the tenant as of the date of the offer of sale.
(2) (A) If a tenant assigns or sells the tenant's rights under this article, the recipient may only further reassign the rights to a private or nonprofit corporation or a partnership of which the assignee or buyer is an owner; managing member, or officer who can legally bind the entity. (B)No consideration shall be allowed in exchange for a secondary assignment.
(3) A bargain in which the tenant receives consideration to vacate the tenant's unit before the 12-month period ends so that the owner may use or occupy the unit shall constitute a willful violation of this 61 subsection.
(e) Documentation.
(1) A document delivered pursuant to this section shall be delivered by:
(A)First-class mail;
(B)A delivery service providing delivery tracking confirmation; (C)Certified mail; or
(D)Hand.
(2) Within 10 days of the initiation of delivery, copies of all documents delivered to a tenant or owner pursuant to this section shall be delivered to the City Manager with written evidence of the date of delivery of the original document.
(A)The City Manager shall date stamp copies of all documents received pursuant to this subsection.
Manager pursuant to this subsection to the requesting party: (i) Owner;
(li) Tenant;
(iii) A title or settlement company that is conducting a closing on the transfer of ownership of the single-family accommodation; or
(iv) A real estate agent representing the owner in the sale of the single-family accommodation.
(f) No tenant who occupies a rental unit pursuant to subsection (d) of this section may be evicted pursuant to subsection 20-8 (h) or (j) during the 12- month period of occupancy following the sale of the single-family accommodation.
(g) Lapse of time. If 180 days elapse from the date of a valid offer under this 62 article and the owner has not sold or contracted for the sale of the housing accommodation, the owner shall comply anew with the terms of this article.
Sec. 20-70. - Housing accommodations with 2 through 4 rental units.
The following provisions apply to accommodations with 2 through 4 rental units, other than single-family accommodations with more than 1 unit:
(a) Joint and several response. The tenants may respond to an owner's offer first jointly, then severally. Upon receipt of a written offer of sale from the owner that includes a description of the tenants rights and obligations under this article, or upon the City Manager's receipt of a copy of the written offer of sale, whichever is later, a group of tenants acting jointly shall have 15 days to provide the owner and the City Manager, by hand or by sending by certified mail, with a written statement of interest. Following that time period, if the tenants acting jointly have failed to submit a written statement of interest, an individual tenant shall have 7 days to provide a statement of interest to the owner and the City Manager, by hand or by sending by certified mail, Each statement of interest must be clear expression of interest on the part of the tenant or tenant group to exercise the right to purchase as specified in this article; (b) Negotiation period.
(1) Upon receipt of a letter of intent from a tenant or a tenant group, the owner shall afford the tenants a reasonable period to negotiate a contract of sale, and shall not require less than 90 days. For every day of delay by the owner in providing information as required by this article, the negotiation period is extended by 1 day. If more than 1 individual tenant submits a written statement of interest, the owner shall negotiate with each tenant separately, or jointly if the tenants agree to negotiate jointly; (2) If, at the end of the 90-day period or any extensions thereof, the tenants jointly have not contracted with the owner, the owner shall provide an additional 30-day period, during which any 1 of the current tenants may contract with the owner for the purchase of the
accommodation;
(3) If the owner is required to negotiate with more than one tenant pursuant to this section, the owner may decide which contract is more favorable without liability to the other tenants.
(c) Time before settlement. The owner shall afford the tenant a reasonable 63 period prior to settlement in order to secure financing and financial assistance, and shall not require less than 90 days after the date of contracting. If a lending institution or agency estimates in writing that a decision with respect to financing or financial assistance will be made within 120 days after the date of contracting, the owner shall afford an extension of time consistent with that written estimate;
(d) Lapse of time. If 240 days elapse from the date of a valid offer under this article and the owner has not sold or contracted for the sale of the accommodation, the owner shall comply anew with the terms of this article.
Sec. 20-71. - Housing accommodations with 5 or more rental units. The following provisions apply to accommodations with 5 or more rental units:
(a) Tenant organization. In order to make a contract of sale with an owner, the tenants shall: (1) form a tenant organization with the legal capacity to hold real property, elect officers, and adopt bylaws, unless such a tenant organization exists in a form desired by the tenants; (2) file articles of incorporation; and (3) deliver an application for registration to the City Manager and the owner by hand or by certified mail within 45 days of receipt of a valid offer or the City Manager's receipt of a copy of a valid offer, whichever is later: If, at the time of receipt of the valid offer, a tenant organization exists in a form desired by the tenants, the delivery of the application for registration to the City Manager and the owner by hand or by certified mail shall be within 30 days of receipt of a valid offer or the Mayor's receipt of a valid offer, whichever is later. The application shall include the name, address, and phone number of tenant officers and legal counsel (if any); a copy of the articles of incorporation, as filed; a copy of the bylaws; documentation that the organization represents at least a majority of the occupied rental units as of the time of registration and such other reasonable information as the City Manager may require. Upon registration, the organization constitutes the sole representative of the tenants, and the prior offer of sale is deemed an offer to the organization; (b) Negotiation period. The owner shall afford the tenant organization a reasonable period to negotiate a contract of sale, and shall not require less than 120 days from the date of receipt of the statement of registration. For every day of delay by the owner in providing information as required by this article, the negotiation period is extended by 1 day;
(c) Time before settlement.
(1) The owner shall afford the tenant organization a reasonable period 64 prior to settlement in order to secure financing and financial assistance, and shall not require less than 120 days after the date of contracting. If a lending institution or agency estimates in writing that a decision with respect to financing or financial assistance will be made within 240 days after the date of contracting, the owner shall afford an extension of time consistent with that written estimate; (2) If the tenant organization articles of incorporation provide, by the date of contracting, that the purpose of the tenant organization is to convert the housing accommodation to a nonprofit housing cooperative with appreciation of share value limited to a maximum of the annual rate of inflation, the owner shall require not less than 180 days after the date of contracting or such additional time as required by this section;
(d) Lapse of time. If one year elapses from the date of a valid offer under this article and the owner has not sold or contracted for the sale of the housing accommodation, or in the case of an offer of sale given pursuant to paragraph 20-61(a)(2) for the purposes of seeking to withdraw the housing accommodation from the rental market, has not initiated that procedure, the owner shall comply anew with the terms of this article; provided, that if the negotiation period has been extended pursuant to paragraph 20- 61(b)(6), the one year limit described in this subsection may be extended by one day for each day of the extension.
Sec. 20-72. - Coverage of article.
This article applies to any sale of a housing accommodation for which a contract is not fully ratified prior to the date upon which this chapter is created.
Sec. 20-73. - City's opportunity to purchase.
(a) City's opportunity to purchase certain housing accommodations. (1) Before an owner of a housing accommodation may sell a housing accommodation comprised of 5 or more units, the owner shall provide to the City an opportunity to purchase the housing accommodation in the same manner, except as otherwise provided by this section, as the opportunity to purchase is provided to a tenant under this article. (2) No provision of this section shall abrogate the rights of tenants or tenant organizations under this article.
(3) The City may assign the opportunity to purchase provided under this section to a person that:
65 (A)Demonstrates the capacity to own and manage, either by itself or through a management agent, the housing accommodation and related facilities for the remaining useful life of the housing accommodation; and
(B)Agrees to obligate itself and any successors in interest to all limitations described in subsections (b) and (c).
(4) The City shall have the same remedies and rights to enforce owner compliance with this chapter as a tenant or tenant organization would have against an owner for violation of this article.
(b) Limitations on the City's opportunity to purchase.
(1) The City's opportunity to purchase shall be subordinate to the right of a tenant.
(2) To exercise the City's right under this subchapter, the City Manager, having the approval of the City Council to do so, shall provide a written statement of interest to the owner and tenant within 60 days of the City Manager's receipt of the copy of offer of sale required by section 20-63. (3) The City shall not exercise the opportunity to purchase provided by this section unless at least 25% of the rental units in the housing accommodation are affordable units.
(A)For the purposes of this paragraph, the term "affordable unit" means a rental unit in a housing accommodation for which the existing monthly rent paid by the tenant is equal to or less than 30% of one twelfth (1/12) of the current Very Low Income Limit corresponding to the number of persons in the tenant family, established by the United States Department of
Housing and Urban Development ("HUD") for the area that includes the City of Pomona.
(c) Limitations on the City as purchaser of a housing accommodation. (1) If the City purchases a housing accommodation pursuant to this section, the City shall remain subject to all provisions of this chapter as owner of the housing accommodation.
(2) (A) The City shall maintain affordable rents in the housing 66 accommodation so that unit rents for tenants living in the housing accommodation on the date that the offer of sale was issued will not be greater than the unit rent on the date of the offer of sale or 30% of an existing tenant's household income, whichever is less.
(B)For the purposes of this subsection, household income shall be calculated pursuant to 24 C.F.R. § 5.609.
(C)tenants shall be notified in writing as to the manner in which the City calculates household income and rent.
(D)The Rent Board shall consider a challenge to a rent amount or income calculation upon a petition filed by a tenant. The petition shall be heard and determined according to section 20-60. (E) Notwithstanding the rent amounts established pursuant to this section, nor any other law, no tenant in an affordable unit established pursuant to this section shall be required to pay a rent increase of more than 5% per year.
(F) Income restrictions may be imposed upon the housing accommodation by the City; provided, that an existing tenant shall be exempt from any income restrictions.
(3) (A) To the extent that the Costa Hawkins Rental Housing Act (Cal. Civil Code § 1954.52 et seg.) does not prevent compliance with this subparagraph, the City shall maintain any unit in the housing accommodation that was an affordable unit, as defined in subparagraph (b)(3)(A), on the date that the offer of sale was issued as affordable for as long as the housing accommodation remains a housing accommodation owned by the City.
(B)For any rental unit that becomes vacant, to the extent that the Costa Hawkins Rental Housing Act (Cal. Civil Code § 1954.52 et seq.) does not prevent compliance with this subparagraph:
(i) If the monthly rent paid by the tenant was equal to or less than 30% of one twelfth (1/12) of the current 60%
Income Limit corresponding to the number of persons in
the tenant family, established by HUD for the area that includes the City of Pomona, that unit shall remain
affordable for a tenant with an income at or below the
HUD 60% Income Limits; or
67 (ii) If the monthly rent paid by the tenant was equal to or less than 30% of one twelfth (1/12) of the current
Extremely Low Income Limit corresponding to the
number of persons in the tenant family, established by
HUD for the area that includes the City of Pomona, that unit shall remain affordable for a tenant with an income at or below the HUD Extremely Low Income Limits.
(C)To the extent that the Costa Hawkins Rental Housing Act (Cal.
Civil Code § 1954.52 et seq.) does not prevent compliance with this subparagraph, vacancies in affordable units shall be filled and maintained so that the division of affordable units in the housing accommodation is no less than one-third
affordable for households with incomes at HUD Extremely Low Income Limits for the area that includes Pomona, one third affordable for households with incomes at HUD 60% Income Limits for the area that includes Pomona, and one third affordable for households with incomes at HUD Low Income Limits for the area that includes Pomona.
(4) If any unit in the housing accommodation was not an affordable unit as defined in subparagraph (b)(3)(A) of this section, on the date the offer of sale was issued, the City shall develop an affordability plan to explore all means whereby the number of affordable units in the housing accommodation may be increased. The City shall take all practicable steps to increase the number of affordable units in the housing accommodation.
(d) Procedure for City to effectuate purchase.
(1) The City, represented by the City Council and assisted by the City Manager under the direction of the City Council, shall have not less than 150 days from the date of the owner's receipt of the City's written statement of interest, issued pursuant to paragraph (b)(2) of this section, to negotiate a contract for sale that is subject to approval by the City Council. (2) For every day of delay by the owner in providing information as required by this article, the negotiation period shall be extended by one day. (3) If a tenant organization is formed and delivers an application for registration to the City Manager pursuant to subsection 20-71(a), the 68 City shall have 15 days, in addition to the time provided for in paragraph (d)(1) of this subsection, to negotiate a contract for sale that is subject to approval by the City Council.
(4) The City shall have up to 90 days after the date of execution of a contract for sale that is subject to approval by the City Council to obtain the City Council's approval of the contract and complete settlement.
(5) If the owner provides any extension of time to a tenant under this article, the City shall automatically receive the same extension of time. The owner shall provide written notification to the City Manager of any extensions of time provided to the tenant.
Sec. 20-74. - Implementation and enforcement.
(a) The City Manager shall designate a person to be the Tenant and City Opportunities to Purchase Administrator (TCOPA). The TCOPA shall be either the City Manager or a person designated by the City Manager, which designee shall be either the Neighborhood Services Director or a person under the direction of the Neighborhood Services Director. The TCOPA shall:
(1) administer and enforce this article;
(2) adopt rules, policies, procedures and guidelines—approved by the City Council-for the implementation of this article;
(3) take all reasonable and necessary measures to effect the purposes, intent and enforcement of this article;
(4) publish a summary of tenant rights and obligations pursuant to this article, and sources of technical assistance, which shall include, but shall not be limited to, a list of organizations from which the tenant may seek help to exercise the right to purchase, information regarding counseling, subsidy programs, relocation services, housing purchase and rehabilitation finance, tax relief programs, formation of tenant organizations, purchase of housing accommodations, rehabilitation, and conversion to cooperative or condominium.
(b) Civil cause of action. An aggrieved owner, tenant, or tenant organization may petition for relief by seeking enforcement of any right or provision under this aval through and relation attorney eques, ad apon prevailin, may seek an award of costs and reasonable attorney fees.
public policy of this article favors the waiver of bond requirements to the 69 extent permissible under law or court rule.
(c) Penalties. The City Council shall, insofar as permissible under state law, establish by ordinance penalties, including but not limited to fines and imprisonment, to apply to any person who willfully violates any provision of this article or any rule adopted under or order issued pursuant to this article, or to any person who willfully makes any false statement of a material fact that affects a right, obligation or opportunity under this article, or to any person who willfully omits to state a material fact that affects a right, obligation or opportunity under this article.
(d) Remedies not exclusive. The remedies available in this section are not exclusive and may be used cumulatively with any other remedies in this chapter or otherwise available at law.
(e) Jurisdiction, The appropriate court in the jurisdiction in which the housing accommodation is located shall have jurisdiction over all actions brought under this article.
(t) Declaratory relief. The City Council shall establish rules and a procedure whereby an aggrieved owner, tenant, or tenant organization may petition for declaratory relief with respect to provisions of this article.
ARTICLE XI. - JUDICIAL REVIEW, RIGHTS TO ACTION, REMEDIES,
DEFENSES, JURISDICTION
Sec. 20-75. - Judicial review.
A landlord or tenant aggrieved by any action or decision of the Rent Board may seek judicial review pursuant to state law and this chapter and its implementing regulations. No action or decision by the Rent Board shall go into effect until any statutory deadline for initiating such review has expired.
Sec. 20-76. - Civil suit.
A tenant may bring a civil suit in the courts of the state alleging that a landlord has violated any of the provisions of this chapter or the regulations promulgated hereunder, including that the landlord has demanded, accepted, received, or retained a payment or payments in excess of the lawful rent (including payments rendered excessive due to the landlord's violation of the provisions pertaining to compliance with habitability standards and maintenance of housing services). No administrative procedure need be exhausted prior to filing suit pursuant to this subsection. 70 Sec. 20-77. - Rent Board or City Attorney enforcement action.
If the tenant fails to bring a civil action or petition to enforce the tenant's rights under this chapter, except with respect to rights afforded by article X, the Rent Board or the City Attorney may bring such an action and/or settle the claim on the tenant's behalf. If the Rent Board or City Attorney brings such an action or undertakes to settle such a claim, the tenant shall be provided the right to opt in or out of the action. In the case of an opt-in, the tenant on whose behalf the Rent Board or City Attorney acts is barred from bringing a separate action against the landlord in regard to the same violation, and the Rent Board or City Attorney shall be entitled to recuperate costs incurred from any monetary recovery from the landlord, with the remainder to go to the tenant. In the case of an opt-out, the tenant shall retain all rights relating to his or her right to private action. Except with respect to article X, the Rent Board or City Attorney may take other enforcement action as necessary to ensure compliance with this chapter:
Sec. 20-78. - Enforcement and injunctive relief.
The Rent Board, City Attorney, tenants, or landlords may seek relief from the appropriate court in the jurisdiction where the affected rental unit is located to enforce any provision of this chapter or its implementing regulations or to restrain or enjoin any violation of this chapter and of the rules, regulations, orders, and decisions of the Rent Board.
Sec. 20-79. - Remedies.
(a) Civil remedies. In a civil suit, a landlord found to have violated this chapter shall be liable to the tenant for all actual damages, including but not limited to reimbursement of payments in excess of the lawful rent. The court may adjust the rent to the lawful amount. A prevailing tenant in a civil action brought to enforce this chapter shall be awarded reasonable attorneys' fees and costs as determined by the court. Additionally, upon a showing that the landlord has acted willfully or with oppression, fraud, or malice, the tenant shall be awarded treble damages.
(b) Additional relief for landlord's violation of eviction rules. If it is shown that the intended action which the landlord claims as grounds to recover possession under subsection 20-8 (h), (i), (ji), or (k) is not initiated within two (2) months after the tenant vacates the rental unit, or it is shown that the landlord's claimed intention was false or in bad faith, the tenant shall be entitled to regain possession of the rental unit at same rent that was lawfully in effect when the tenant vacated, in addition to the relief described in subsection (a) above. 71 (c) Notwithstanding any provision in this chapter to the contrary, this section does not apply to violations of the provisions in article X.
Sec. 20-80. - Defenses to actions to recover possession. (a) Except with respect to the provisions of article X or regulations promulgated thereunder, to which this section does not apply, a landlord's failure to comply with any of the provisions of this chapter or regulations promulgated hereunder may be raised as an affirmative defense in an unlawful detainer or other action brought by the landlord to recover possession of the rental unit. Any and all violations of this chapter (except violations of article X) by the landlord shall constitute such an affirmative defense, including but not limited to: the demand or retention of payment in excess of the lawful rent; failure to serve any of the notices required pursuant to this chapter on the tenant or the Rent Board, or failure to conform such notices to the requirements of this chapter; failure to pay the rental housing fee; failure to pay any required relocation assistance; and a decrease in housing services or maintenance without a corresponding reduction in rent. It is the intent of this chapter to construe this subsection to the broadest extent permissible under the law to ensure maximum compliance with this chapter and to avoid unlawful evictions.
(b) Eviction protection for victims of domestic violence or sexual assault or stalking. It shall be a defense to an action for possession of a unit under subsection 20-6 (c) or (d) if the trier of fact determines that:
(1) The tenant or the tenant's household member is a victim of an act or acts that constitute domestic violence or sexual assault or stalking; and (2) The action for possession-which may, for example, include complaints of noise, disturbances, or repeated presence of police-is substantially based upon the act or acts constituting domestic violence or sexual assault or stalking against the tenant or a tenant's household member.
Sec. 20-81. - Remedies not exclusive.
The remedies available in this chapter are not exclusive and may be used cumulatively with any other remedies in this chapter or otherwise available at law.
Sec. 20-82. - Jurisdiction.
The appropriate court in the jurisdiction in which the rental unit is located shall 72 have jurisdiction over all actions brought under this chapter.
ARTICLE XII. - GENERAL PROVISIONS.
Sec. 20-83. - Severability.
If any provision of this chapter or application thereof to any person or circumstances is held invalid, this invalidity shall not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.
This chapter shall be liberally construed to achieve the purposes of this chapter and to preserve its validity.
Sec. 20-84. - Supersession.
This chapter supersedes any conflicting provisions of a municipal ordinance covering the area of rents, evictions, relocation assistance, or other matters addressed herein. However, nothing in this section shall be construed to restrict the authority of the City Council to enact complimentary or non-conflicting ordinances or to take other such actions within its powers, where such ordinances or actions comply with and uphold the terms and purposes of this chapter.
Sec. 20-85. - Codification.
The City Clerk and the City Attorney shall take all steps necessary to ensure the proper and efficient codification of this chapter into the Pomona City Code. This authority shall include making any necessary revisions to numbering, revising or substituting any references herein to other provisions of Pomona or state law, and similar non-substantive revisions. In exercising this authority, the City Clerk and City Attorney shall not alter the substantive provisions of this chapter nor take any action that contradicts the terms and purposes of this chapter.
Sec. 20-86. - Duty to defend.
The City Attorney shall take all steps necessary to zealously defend against any legal challenges to the validity of this chapter: If the City Attorney is unable or unwilling to defend, an interested third party may intervene to defend. Any third party that defends this chapter shall be entitled to court-awarded attoreys' fees and costs.
Sec. 20-87. - Majority approval, effective date, execution.
This ordinance shall become valid and binding if approved by a majority of the 73 voters voting thereon and, if so approved, shall go into effect ten (10) days after the vote is declared by the City Council. The Mayor and City Clerk are hereby authorized to execute this ordinance to give evidence of its adoption by the voters. 74