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 T orres
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))
505 S. Garey Ave
Pomona, CA 91766 City of Pomona
Regular Meeting Minutes
City Council / Housing Authority / Successor Agency to the Redevelopment Agency
Mayor Tim Sandoval
Vice Mayor Nora Garcia
Councilmember John Nolte
Councilmember Victor Preciado
Councilmember Elizabeth Ontiveros-Cole
Councilmember Steve Lustro
Councilmember Robert S. Torres
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. 7:00 PM Monday, July 15, 2024 Council Chambers
City Council / Housing Authority / Meeting Minutes July 15, 2024 Successor Agency to the
Redevelopment Agency
City of Pomona Page 2
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 Ti m Sandoval
Vice Mayor Nora Garcia
Councilmember John Nolte
Councilmember Victor Preciado
Councilmember Elizabeth Ontiveros-Cole
Councilmember Steve Lustro
Councilmember Robert T orres
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 progr am. 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 T orres gave thanks to Police and LA County Fire Dept. for their responses on Fourth of July. Councilmember T orres 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:
T eresa Lee invited the public to attend TACF’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 ev ent would take place on Sunday, July 21 at the AQMD Auditorium in Diamond Bar.
Virginia Villaseñ or 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.
1. 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 - 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 MA YOR 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 T ax 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
DELINQUENT SOLID WASTE (TRASH) COLLECTION ACCOUNTS FROM
ATHENS SERVICES AS A SPECIAL ASSESSMENT TO BE COLLEC TED 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.
5. 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 ALL OW 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 T orres 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 MA YOR 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 GENE RAL
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 MA YOR 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 T otaling $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 “CI TY 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 G .M. 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 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
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 T orres expressed opposition to upholding the Planning Commission decision, and supported the scheduling of a public hearing for the appeal. Councilmember T orres 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 item(s); 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 2
nd Annual DanzArte Dance Competition: Requested
Amount: $3,000
C) Amount to be determined to Juneteenth Education Technology Mobile Arts Center in support of its 34
th 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 MAYO R 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 requi rements, 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 MA YOR 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 T orres 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 MA YOR GARCIA, SECOND BY COUNCILMEMBER N OLTE, 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:
City Council / Housing Authority / Meeting Minutes July 15, 2024 Successor Agency to the
Redevelopment Agency
City of Pomona Page 17
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 MA YOR 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:
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
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 <[email protected]>; Lustro, Steve <[email protected]>; Nolte, John <[email protected]>; Butler, Rosalia <[email protected]>; Ontiveros-Cole, Elizabeth <[email protected]>; Torres, 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]
July15,2024
MayorTimSandovalandCouncilmembers,
Weareconcernedleaders,communitystakeholders,organizers,tenants,andcommunitymembersthatarereachingouttoaskforyoursupportofourcollectivevisiontoeliminatethehousingcrisisinPomona.AlthoughthefamiliesinPomonaandevensomeofuspersonallyarefacingseriouschallengessuchashousinginsecurities,lackofworkopportunities,displacement,harassment,gentrificationandhomelessness,wealsofeelthattherearesomeexistinghousingandcommunityassetstobuildonthatcantransformthecityandcommunitytooff-setsomeofthesedilemmas.WeareproposingthattheCityofPomonagodeeperinitsimplementationoftheproposedPRSO, whichwehaveattached,asameanstoaddresssomeofthesystemicchallengesfacedbyourcommunity. ThefollowingoutlinesourvisionforadeeperimplementationofacomprehensivepermanentrentstabilizationordinanceandhousingstabilityforPomonaresidents.
EmergencyNeedsTheinitiativesbelowareproactiveandholisticeffortsthataddressthesystemicchallengesthatpresentasobstaclestotenants’stabilityandlivelihood.AccordingtotheHousingElementofPomona2021to2029, themedianhouseholdincomeinPomonais$60,598,whichis$7,446belowLosAngelesCounty’smedianhouseholdincomeof$68,044.Basedontheseincomecategories,nearlytwooutofthreehouseholds(61.9percent)inPomonaareconsideredlowerincomeandmaynotbeabletoaffordhousingwithintheimmediatearea.Moreover, nearlyoneoutoffivehouseholdsinPomona(19.2%)areheadedbyasinglefemaleparent.Pomona’ssingle-parentfemalehouseholdsfacepovertylevelstwiceashighastheLosAngelesCountyaverage.Evictionsanddisplacementimposeanespeciallyhighburdenonschoolagedchildrenandtheirfamilies,includingincreasedabsencesfromschool,homelessness,andothereducationaldisruptionsthatcanhavelonglastingmentaleffects,allofwhichmaycontinuetohavelong-termadversementalandphysicaleffectsonchildrenfromourcommunities.ThePomonaUnifiedSchoolDistrictreportedaspartofaU.S.DepartmentofEducationgrantapplicationthatin2018-2019itservedatleast2,500to5,000homelessyouth.Additionally,minority, elderly, anddisabledhouseholdsinPomonaaredisproportionatelyrepresentedinthelowincomegroup,whichsubsequentlyleadstoalackofhousingchoice.Further, Pomona’spopulationisaging,whileitsyouthpopulationisdeclining.ThenumberofyoungadultsinPomonaundertheageof19continuestodeclineyearafteryear, representing35.2percentofthe
populationin2010to29percentin2019.Meanwhile,thepopulationovertheageof50increasedfrom21percentin2010to27.1percentin2019,theaverageageofaCity’spopulationisrelevantindetermininghousingtypenecessities. Accordingtothedisabilitypaychart,statedisabilityinsuranceisonly60-70%ofyourwages,averagesupplementalsocialsecurityincomeis$578.62andaveragesocialsecuritydisabilityincomeis$1,524.99makingitnearlyimpossibleforaretired,veteran,ordisabledindividualtoaffordhousing.Wearerequestingthefollowing; ● ImproveandstrengthenURSOwithaPRSOat3%placeitasaCharterOrdinance● CreateaRentboard● Tenant/Landlordregistry● Allocate2millionofARPAfundingtoTenantLandlordRegistry&RentBoard● PartnerwithustorepealstatelawsthatlimitconsumerprotectionsforrenterslikeCostaHawkins&EllisAct(CLAUSE:ifJusticeforRentersAct(Prop33)passesinNov2024Election,thereislanguageintheordinancethatautomaticallyadoptsit/includingprotectionsforsinglefamilyhomes)● Strongerenforcementforuninhabitableconditions-TenantAntiHarassmentOrdinance(TAHO)● RentEscrowAccountProgram(REAP)● PomonaInspectionOrdinance(BudgettoExpandCodeEnforcementforAccountabilityofSlumlords) LongTermNeedsTheinitiativesbelowaredesignedtopromotecommunity, neighborhood,andhouseholdstabilityforgenerationstocome.AccordingtotheHousingElementofPomona2021to2029, inaskingthecommunitywhereadditionalhousingcouldbebuilt,respondentscitedsurplusPomonaUnifiedSchooldistrictproperty, City-ownedparkinglots,underusedhousesofworship,emptymotels,vacantland,andexistingbuildingconversionsinDowntownasexamplesofsuitablelandforadditionalhousingoptions.ThecommunityisalsointerestedinexploringalternativemodelsofpropertyownershipasameanstopreventdisplacementandgentrificationinPomona’sneighborhoods.Themostpopularalternativecitedisa“communitylandtrust.”Communitylandtrustsensurebutarenotlimitedto:communitybasedanddemocraticdecisionmakingwithananti-displacementasastrategyforhomeownersandrenters,stabilizingneighborhoodsbyincreasinghousingaffordability, lesseningtheriskofgentrification,prioritizingBIPOCdiversity,rectifyinghistoricallyunjustrealestatepractices.Additionally, theCityembarkedonextensivecommunityoutreacheffortsasapartofthe2021-2029HousingElementupdateprocess.Throughoutreachandmarketanalysis,theCityidentifiedacommunitylandtrustasapotentialtoolinincreasingopportunityanddevelopmentofaffordablehousing.Further, weunderstandthatallhousingdiscriminationdoesnotaddressincome.Historically, disenfranchisedgroups,thevastmajorityofresidentsinthecityofPomona,arePeopleofColor(POC),largely women.ThereforewebelievethataddressingincomelevelsinPomonaisimperative.Wearerequestingthefollowing; ● SocialHousing:Landrecastasacommunityresource,notacommodity● CommunityLandTrusts● Greaterpublicinvestmentinproducingpermanentlyaffordablehousing(withnosunsets)● EnshrineHousingasaHumanRightintheCityofPomona● Historicallydisenfranchisedgroups,likesinglefemaleheadsofhouseholds,shouldautomaticallyqualifyforadditionalassistancesuchasbutnotlimitedto:○ directhousingassistanceincollaborationwiththePomonaHousingAuthorityandrelevantPomonaunhousedpeopleprogramsandPomonaHousingServices○ 1stmonthanddepositassistance○ Relocationassistancenotdependentoncurrentcriteria Weareexcitedtoshareourvisionfortransformationwithyouthatisgroundedinagenuineimplementationoftenantprotectionsthatwillbringforthstabilityforchildren,families,elderly,andothervulnerabletenants.InalignmentwithPomona'sMissionandCoreValues,protectinglowincomeresidentsandtheirhomesprotectseconomicandculturaldiversitywithinthecity,whichisnecessaryforthecity'sstability. Ourvisionisinformedbytheexperiencesanddreamsofourleaders,communitystakeholders,organizers,tenants,andcommunitymembers. WeurgethecityofPomonatoactontheseemergencyneedsproposed.Canwecountonyoursupportofthisvision? WethankyouforyourtimeandconsiderationandrequestmeetingdateswiththeMayorandCityCouncilmembersindividually. Welookforwardtohearingbackfromyousoon.Wecanbecontactedforafollowupusingthecontactinformationbelow.
Incommunity,
Graciela,Yesenia,Elinor, Evelia,Eunice,Gwen,Allison,Connie PomonaUnitedforStableHousingCoalitionpomonaunitedforstablehousing@gmail.com INSUPPORT: Allianceof Californiansfor CommunityEmpowerment (ACCE), CaliforniaDemocraticRentersCouncil (CADEM), Latino/aRoundTable, PomonaValleyNAACP, LAForward, SanGabrielValleyTenantsAlliance, Poor People'sCampaign, IntegrativeDevelopment Initiative, Just UsFor Youth,GenteOrganizada, Center Street TenantsUnion, PasadenaTenantsUnion, Angela/Chanslor TenantsUnion, CurranPlaceTenantsUnion, SanGabriel ValleyCommunityLandTrust, FoodCycleCollective,Cal PolyPomonaYDSA, ElevatingEquityCollective, HousingNow, HousingIsAHumanRight, TrevoliTenantsUnion, InlandEquityPartnership/ IETenantsUnion, InlandEquityCommunityLandTrust.
ThePeopleoftheCityofPomonadoherebycreateChapter20ofthePomona City Code,whichmaybereferredtoas:“ThePomonaOrdinancetoPromote Community andHousingStabilitythroughFairRentRegulation,TenantProtections,andTenant andCityOpportunitiestoPurchase,”andwhichshallread asfollows:
Chapter20–COMMUNITYANDHOUSINGSTABILITYTHROUGHFAIR RENT
REGULATION,TENANTPROTECTIONS,ANDTENANTANDCITY
OPPORTUNITIESTOPURCHASE
ARTICLEI.–INGENERAL
Sec.20-1.–Titleandpurpose.
Sec.20-2.–Findings.
Sec.20-3.–De
finitions.
Sec.20-4.–Exemptions.
ARTICLEII.–EXEMPTIONSFORLOCALHOMEOWNERS
Sec.20-5.–Certainsingle-familyhomesandaccessorydwellingunits exempt.
Sec.20-6.–Temporaryrentalsallowed.
Sec.20-7.–Rentingofaroomunregulated.
ARTICLEIII.–TENANTPROTECTIONS
Sec.20-8.–Justcauseforevictionprotections.
Sec.20-9.–Tenantprotectionsduringforeclosure.
Sec.20-10.–Relocationassistance.
Sec.20-11.–Rightofreturnand firstrightofrefusal.
Sec.20-12.–Requirednoticeforwithdrawalofrentalunitsfromrental housing andregulationofpropertyonre-offerofrentorlease
afterwithdrawal.
Sec.20-13.–Postingofnotice.
Sec.20-14.–Securitydeposits.
Sec.20-15.–Retaliationisbarred.
Sec.20-16.–Harassmentisprohibited.
Sec.20-17.–Noticetospecifybasisfortermination.
Sec.20-18.–Noticeoftheexistenceofthischapterrequiredat
commencementoftenancy.
Sec.20-19.–Landlordcompliancewiththischapter.
Sec.20-20.–FilingterminationnoticeswithRentBoard.
Sec.20-21.–Non-waivability.
Sec.20-22.–Failuretocomply.
ARTICLEIV.–STABILIZATIONOFRENTS
Sec.20-23.–Rentsstabilized.
1 Sec.20-24.–Rentincreasesregulated.
ARTICLEV.–RENTINCREASESPURSUANTTOANNUALGENERAL
ADJUSTMENT
Sec.20-25.–Annualgeneraladjustment.
Sec.20-26.–Onerentincreaseperyear.
Sec.20-27.–Noticeofrentincreaserequired.
Sec.20-28.–Requirednoticetoincreaserentorchangeothertermsof tenancy.
Sec.20-29.–Conditionsunderwhichrentincreasenotpermitted.
ARTICLEVI.–INITIALRENTSFORNEWTENANCIES
Sec.20-30.–Settingofinitialrentswithoutrestriction.
Sec.20-31.–Restrictionsoninitialrentfornewtenancies.
Sec.20-32.–Rentincreasesaftersettinganinitialrent.
ARTICLEVII.–TENANTBUYOUTNOTIFICATIONPROGRAM Sec.
20-33.–Purpose.
Sec.20-34.–Disclosurenotice.
Sec.20-35.–Buyoutagreementrequirements.
Sec.20-36.–Cancellationofbuyoutagreement.
Sec.20-37.–Filingexecuteddisclosurenoticeandbuyoutagreement.Sec. 20-38.–Af firmativedefense.
Sec.20-39.–Privaterightofaction.
ARTICLEVIII.–POMONARENTALHOUSINGBOARD
Sec.20-40.–Created.
Sec.20-41.–Appointment,composition,andeligibility.
Sec.20-42.–Application.
Sec.20-43.–Powersandduties.
Sec.20-44.–Rulesandregulations.
Sec.20-45.–Meetings.
Sec.20-46.–Quorum.
Sec.20-47.–Voting.
Sec.20-48.–Compensation.
Sec.20-49.–Financing.
Sec.20-50.–Rentalhousingfee.
Sec.20-51.–Citytoadvanceinitialfunds.
Sec.20-52.–IntegrityandautonomyoftheRentBoard.
Sec.20-53.–RentBoardlegalwork.
Sec.20-54.–Conformingregulations.
Sec.20-55.–Con
flictofinterest.
Sec.20-56.–Initialappointmentandinterimauthorityforimplementation. 2 ARTICLEIX.–PETITIONSFORINDIVIDUALRENTADJUSTMENT Sec.
20-57.–Ingeneral.
Sec.20-58.–Petitionforupwardadjustment—fairreturn.Sec.
20-59.–Petitionfordownwardadjustment.
Sec.20-60.–Proceduresforpetitions.
ARTICLEX.–TENANTANDCITYOPPORTUNITIESTOPURCHASE Sec.
20-61.–Tenantopportunitytopurchase;“sale”defined.Sec.20-62.– Registrationofatenantorganization.
Sec.20-63.–Offerofsale.
Sec.20-64.–Thirdpartyrights.
Sec.20-65.–Contractnegotiation.
Sec.20-66.–Exerciseorassignmentofrights.
Sec.20-67.–Waiverofrights.
Sec.20-68.–Rightof firstrefusal.
Sec.20-69.–Single-familyaccommodations.
Sec.20-70.–Housingaccommodationswith2through4rentalunits.Sec. 20-71.–Housingaccommodationswith5ormorerentalunits.Sec.20-72. –Coverageofarticle.
Sec.20-73.–City’sopportunitytopurchase.
Sec.20-74.–Implementationandenforcement.
ARTICLEXI.–JUDICIALREVIEW,RIGHTSTOACTION,REMEDIES,
DEFENSES,JURISDICTION
Sec.20.75–Judicialreview.
Sec.20-76.–Civilsuit.
Sec.20-77.–RentBoardorCityAttorneyenforcementaction.Sec. 20-78.–Enforcementandinjunctiverelief.
Sec.20-79.–Remedies.
Sec.20-80.–Defensestoactionstorecoverpossession.
Sec.20-81.–Remediesnotexclusive.
Sec.20-82.–Jurisdiction.
ARTICLEXII.–GENERALPROVISIONS
Sec.20-83.–Severability.
Sec.20-84.–Supersession.
Sec.20-85.–Codification.
Sec.20-86.–Dutytodefend.
Sec.20-87.–Majorityapproval,effectivedate,execution.
3 ARTICLEI.–INGENERAL
Sec.20-1.–Titleandpurpose.
ThisOrdinanceshallbeknownasThePomonaOrdinancetoPromote Community andHousingStabilitythroughFairRentRegulation,Tenant Protections,andTenantand CityOpportunitiestoPurchase.Thepurposesofthis ordinanceare,intheCityof Pomona,to(1)promotecommunity,neighborhoodand householdstabilityby discouragingthedisplacementoftenants;(2)strengthenthe rightsandincreasethe bargainingpositionoftenantssothattheycanbetterresist displacement;(3)maintain andincreasetheavailabilityofhealthyandaffordable housingforlowerincometenants; and,(4)inconcertwiththeotherpurposes,create homeownershipopportunitiesfor tenants.Theordinanceaimstoachievethose purposesby:regulatingexcessiverent increasesandarbitraryevictionstothe maximumextentpermittedunderCalifornialaw whileguaranteeinglandlordsa fairreturn;ensuringfairprotectionsforrentersand exemptionsforlocal homeowners;andprovidinganopportunityfortenantstopurchase theirhomesor fortheCitytopurchasethemandmaintainthemasaffordablehousing whentheyareforsaleoratriskofbeingremovedfromtherentalmarket,while respecting owners’propertyrightsandthedueprocessoflaw.
Sec.20-2.–Findings.
ThePeopleofPomona findanddeclareasfollows:
(a)Thereisashortageofdecent,safe,affordable,healthyhousingintheCity of Pomona,withtheresultthattenantsdonothavegenuinefreedomof contract andcannotbargainforfair,reasonablerentpricesonan equitableplaying field.Valuable,long-timeresidentsarebeingpushed outoftheirhomesand theCity,disruptingtheirlives,anddiminishing Pomona’scommunityand culture.
(b)Tenantsshouldnothavetofeareviction,displacement,andsometimes homelessnessmerelybecauserentalpropertyownerscandramatically increaserents.Robustprotectionsagainstarbitraryevictionsalongwith accessiblemeanstoenforcethemareneededintheCitytopreserve diversity andprotectlong-timeandlow-incomeresidentsfromdisruptive, predatory landlordtacticsintightrentalmarkets.
(c)Overthe5yearsfrom2013to2018,multifamilyhousingrentsPomona rose annually,onaverage,atabouttwicetherateoftheriseinPomona renters’household income,andatabout2.5to3timestherateofregional inflation.(Zillowrent ZestimateTimeSeries,rentJunglerentTrend data,U.S.CensusBureau,U.S.Labor Department.)Pomonarenters
4 simplycannotkeepupwiththisdegreeofrentescalation.AB1482,the state-leveltenantProtectionActof2019,whileimportantforcurbingthe worstrentgouging,doesnotsetrateslowenoughtoallowPomona
renters—especiallylowincomefamilies,seniors,andpeoplewith disabilities—tostayintheirhomesandintheCity.Thisordinanceis required tostabilizeourhousingandourcommunitiesandismore protectivethanthe tenantProtectionActof2019(Section1946.2ofthe CaliforniaCivil Code)—forexample,itfurtherlimitsthereasonsfor terminationofa residentialtenancy,providesforhigherrelocation assistanceamounts,and providesadditionaltenantprotectionsthatare notprohibitedbyanyother provisionoflaw.
(d)Rentburdenshitlowerincomehouseholdsharder.ThemedianincomeinPomona isabout17%lowerthanthemedianincomeforLosAngeles County.In2018, about80%ofrentinghouseholdsinPomonahadincomes thatwouldhave qualifiedasLowIncomeforafamilyoffourunderU.S. Departmentof HousingandUrbanDevelopment(HUD)limits.Over60% ofrentershad incomesthatwouldhavequalifiedafamilyoffourasVery LowIncome.(The averagehouseholdsizeofrenter-occupiedhousingin 2017was3.79.)In2017, atleast29%ofrenterhouseholds(andlikelya lotmore)wereExtremelyLow IncomeinHUDterms.In2018,theannual incomeof31%ofrentingPomona familieswasbelowthefederalpoverty line(U.S.CensusBureau;HUD) (e)Sixty-sixpercent(66%)ofPomonatenanthouseholdsareconsideredcost burdenedbyHUD,meaningtheypay30%ormoreoftheirincomefor housing andthereforemayhavedifficultyaffordingnecessitiessuchas food,clothing, transportationandmedicalcare.Thesituationisworsefor householdswith lowerincomes:89%ofPomonatenanthouseholdswith incomeunder$50,000 peryeararerent-burdened(comprising59%ofall tenanthouseholds);and 96%ofhouseholdswithincomeunder$35,000 peryeararerent-burdened (comprising42%ofalltenanthouseholds). MorethanhalfofPomona’s housingisrenter-occupied.(U.S.CensusBureau,2018ACS1-YearEstimates.) (f)Thirty-twopercent(32%)ofPomonatenanthouseholdsare severelycost burdened,meaningtheyspend morethan50%oftheirincomeonrent. Eighty-nine percent(89%)ofthosehouseholds(5,264households)have incomesbelow$35,000 peryear(99%haveincomesbelow$50,000per year).Assumingtheaverage3.79 peopleperhousehold,about20,000 peopleinPomonaliveinahouseholdwithan incomelessthan$35,000 peryearthatspendsatleast$17,500onhousing,leaving verylittleto covereverythingelse—food,clothing,transportation,healthcare,etc. (U.S.CensusBureau,2018ACS5-YearEstimatesand20171-Year
5 Estimatesrehouseholdsize.)
(g)TenantsinPomonaarebeingdisplacedbecausetheycannotafford excessive, rapidlyincreasingrents.Theyareoftenunableto finddecent, safeand sanitaryhousingataffordablerentlevelswithintheCity.(The rentalvacancy rateinPomonais1.5%,comparedto3.8%inLosAngeles County(U.S.Census Bureau,2018)).Displacedresidentsarethenforced tolooktothewiderLos AngelesCountyrentalmarket,whichisfacing thesamemarketpressures.
Awareofthedifficultytheywouldfacetrying to findalternativedecent housing,manycost-burdenedrentersopttostay andpayexactedrent increases.Consequently,thosehouseholdsmust spendlessonother necessitiesoflife,suchasfood,transit,and healthcare.
(h)Therentalhousingsituationhasadetrimentaleffectonthehealth, safety,and welfareofsubstantialnumbersofrentersintheCity,creating especially heavyburdensforseniorcitizens,personswithdisabilities, personson fixed incomesandothervulnerabletenants.
(i)Risinghousingcostsarecausingovercrowdingwithindwellingunits, which degradesresidents’healthandqualityoflife.InPomona,23%of rental housingisovercrowded(morethanoneoccupantperroom),and 10.5%is severelyovercrowded(morethan1.5occupantsperroom).(U.S. Census Bureau,2018.)
(j)Risinghousingcostsarepushinglow-incomeworkersoutofthecity, forcing themtodrivefurthertowork,whichisbadfortheenvironment andfor theirownqualityoflife.
(k)Risinghousingcostsareforcingextendedfamiliesapart,disruptingsocial supportsystemsthatpromotethewelfareofchildren,theelderlyandthe disabled, forcingpeopletorelymoreonalready-over-stretched governmentservices,andoften forcingpeopleintohomelessness.As reportedbytheLosAngelesHomelessServices Authority:“Theaffordable housingcrisisisdrivingaregionalincreasein homelessness”(2019).
(l)Evictionsanddisplacementimposeanespeciallyhighburdenonschoolaged childrenandtheirfamilies,includingincreasedabsencesfrom school, homelessness,andothereducationaldisruptionthatcanhave long-lasting effects.ThePomonaUnifiedSchoolDistrictreportedaspart ofaU.S.
DepartmentofEducationgrantapplicationthatin2018-19it servedatleast 2,500to5,000homelessyouth.
(m)Highrentalcostsalsomakeitincreasinglydifficult,ifnotimpossible,for 6 rentalhouseholdstobecome first-timehomeowners,afactrecognizedby theCaliforniaLegislature.
(n)Coupledwithhighstudentdebtandalackofnewaffordablehousing construction,potentialnewhomeownersarebeingpricedoutofthe homeowners’marketinPomonaaltogether.Insteadofwelcomingback young professionalsandnewfamiliesintothePomonacommunity,they are increasinglypricedoutofthecommunityfromwhichtheycameandto which theyhopetocontributeagain.
(o)InalignmentwithPomona’sMissionandCoreValues,protectinglowincome residentsandtheirhomesprotectseconomicandcultural diversitywithin theCity,whichisnecessaryforthecity’sstability. Pomona’sresidentsneed accesstoskilledandunskilledlaborersaswell asprofessionalsforthe communitytobeasself-sufficientandstableas possible.
(p)Landlordshavegreaterincentivestoinducetenantsinrent-stabilized unitsto moveout.Injurisdictionswithrentstabilizationordinances, manylandlords offercashbuyoutsinexchangefortenantsvacating rentalunits.Manyof thesebuyoutnegotiationsarenotconductedat arms-lengthandlandlords sometimesemployhigh-pressuretacticsor intimidationtoinducetenantsto signagreements.Legislationisneeded topromotefairnessinbuyout negotiationsandagreementsbyrequiring landlordstoprovidetenantswitha statementofrightsandallowing tenantstorescindabuyoutagreement within30daystoprovidetenants sufficienttimetoseekadvice. (q)TenantswhoareevictedinPomonaareforcedtoincursubstantialcosts to relocatetonewhousing.Thesecostsinclude,butarenotlimitedto, move-in coststoanewapartment,actualmovingcosts,newutility hookups,payment fortemporaryhousingwhilenewpermanenthousing issought,andlostwork timeseekinghousing.tenantswho find acceptablenewhousingcommonly mustpay firstandlastmonth’srent plusasecuritydepositequaltoone month’srent.No-faultevictions withoutadequaterelocationbenefitsimpose agreathardshiponthe healthandwell-beingofallevictedtenants,butthe impactsare particularlysevereforlong-timetenantsandthosewhoaremost vulnerable—i.e.,thosewhoarelow-income,elderly,disabled,orwhohave minorchildren.
(r)Californialawprotectstherightofownersofrentalpropertyto“gooutof business”bywithdrawingtheirpropertyfromtherentalmarket(Ca.Gov. Code§ 7060etseq.)TheexperienceofotherjurisdictionsinCalifornia 7 andacrossthecountrythathaveimplementedrentstabilization ordinances makesclearthat,inreaction,propertyownersoftenattempt toconverttheir rentalpropertiesintofor-saledevelopments,ordemolish theirrental buildingssothatfor-saledevelopmentcantaketheirplace,orselltheirrental propertiestodeveloperswhocanaffordtoconvertor demolishtherental units.Thisactivitythwartsthepurposesofrent control,reducesthesupply ofaffordablehousing,andleadsto
displacementofresidentsandfamilieswithalloftheconsequentsocial damagedescribedelsewhereinthese findings.Inordertopreserve affordablerentalhousingintheCity,preventdisplacement,andprotect againstforeseeableownerreactionstorentcontrol,tenants,tenant organizations,tenants’assignees,and/ortheCitymusthaveafairand first opportunitytopurchaserentalpropertywhenitisforsaleoratrisk ofbeing removedfromtherentalmarket.
(s)ArecentstudyattheCentersforDiseaseControlandPreventionfound that “adultchildrenofmotherswhowerehomeowners20yearsearlier had significantlygreatereducationalattainment,werelesslikelyto receivepublic assistance,andwere1.6timesmorelikelytoownhomes thanchildrenof motherswhowerenothomeowners….[S]trategiesthat promoteandenable homeownershipinfamilieswithchildrenmayaffect futuregenerations’ability tobuildwealththroughhomeownership”(See Rostad,W.,Ports,K.,&Tang,S. (2019),“Mothers’homeownershipand children’seconomicsuccess20years lateramongasampleofUScitizens,” ChildrenandYouthServicesReview,99, 355-359).Homeownership decreaseshousinginstabilityandisthereforelikely toimprovechildren’s outcomes.Forthesamereason,itislikelytoimprove outcomesforelderly tenants,tenantswithdisabilities,andlowerincome tenantsingeneral.In concertwith,andbalancingtheothergoalsofthis ordinance,theCityof Pomonawantstopromotethestabilityof
homeownershipforlower incometenantstoimprovetheirfamilies’outcomes andhelpbreakthe cycleofpoverty.Providingtenantsafairopportunityto purchasetheir homeswhentheyareforsaleisacriticalstepinthatdirection. (t)TheCityofPomonacurrentlydoesnotregulate,withrespectto residential housing,rentalamounts,rentincreases,orevictions,nordoes itcurrently ensuretenants,theirassignees,ortheCityanopportunityto purchasethe tenants’homeswhentheyareforsaleoratriskofbeing withdrawnfromthe rentalmarket.
Sec.20-3.–Definitions.
Unlessfurtherdefinedelsewhereinthisarticle,thefollowingwordsorphrases as usedinthisarticleshallhavethefollowingmeanings:
8 (a)AccessoryDwellingUnit.Theterm“accessorydwellingunit”hasthesame meaningasitdoesinCal.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 limitationsofthischapter.
(c)BaseRent.Thereferencepointfromwhichthelawfulrentshallbe determinedandadjustedinaccordancewiththischapter.
(1)Tenanciesthatcommencedbeforethedaythischapterwascreated.
Thebaserentfortenanciesthatcommencedbeforethedaythis
chapterwascreatedshallbetherentineffectonthedaybeforethis chapterwascreated.
(2)Tenanciescommencingonorafterthedaythischapterwascreated.The baserentfortenanciesthatcommenceonorafterthedaythis chapterwas createdshallbetheinitialrentalratechargeduponinitial occupancy, providedthatamountisnotaviolationofthischapteror anyprovisionof statelaw.Theterm“initialrentalrate”meansonly theamountofrent actuallypaidbythetenantfortheinitialtermof thetenancy.
(d)BonaFideOfferofSale.Anofferofsaleforahousingaccommodationor interestinthehousingaccommodationthatiseither
(1)Forapriceandothermaterialtermsthatareatleastasfavorableas those acceptedbyapurchaserinanarm’slengththird-partycontract; or (2)Intheabsenceofanarm’slengththird-partycontract,anofferofsale withapriceandothermaterialtermscomparabletothatatwhicha willingsellerandawillingbuyerwouldsellandpurchasethehousing accommodation,ortheappraisedvalue.
(e)BuyoutAgreement.Awrittenagreementwherealandlordpaysatenantmoney oroffersatenantotherconsiderationtovoluntarilyvacatearental unit. (f)BuyoutOffer.Anoffer,writtenororal,byalandlordtoatenanttopay money orotherconsiderationtovacatearentalunit.
(g)CityCouncil.TheCityCounciloftheCityofPomona.
9 (h)CityManager.TheCityManageroftheCityofPomonaorthedesignated representativeoftheCityManager.
(i)CommunityTenantOrganization.Anyat-largeorganizationthat representstheinterestsoftenants.
(j)CoveredRentalUnit.Allrentalunitsnotspecificallyexemptedunder section20-4orarticleIIherein.
(k)Disabled.Apersonwithadisability.Theterm“disability”isdefinedin CaliforniaGovernmentCodeSection12955.3.
(l)FairReturn.Afairreturnshallbedeterminedbyusingthemaintenanceof net operatingincome(MNOI)standardasoutlinedinsection20-58herein. (m)HearingOfficer.AnofficialappointedbytheRentBoardtoconductan investigationoradministrativehearingpursuanttothischapter. (n)HighestandBestUse.Thereasonablyprobableandlegaluseofaproperty thatis physicallypossible,appropriatelysupported, financiallyfeasible,and thatresults inthehighestvalue.
(o)HousingAccommodation.AstructureintheCityofPomonacontaining1or morerentalunitsandtheappurtenantland.
(p)HousingServices.Housingservicesinclude,butarenotlimitedto,repairs, maintenance,painting,providinglight,hotandcoldwater,elevatorservice, windowshadesandscreens,storage,kitchen,bathandlaundryfacilities and privileges,janitorservices,utilitychargesthatarepaidbythe landlord,refuse removal,furnishings,telephone,parking,therighttohave aspecifiednumberof occupants,andanyotherbenefit,privilege, arrangementorfacilityprovidedor contractedforinconnectionwiththe useoroccupancyofanyrentalunit. housingservicestoarentalunitshall includeaproportionatepartofservices providedtocommonfacilitiesofthe buildinginwhichtherentalunitis contained.
(q)IndexingRatio.ThepercentbywhichthepercentincreaseintheConsumer Price Index(CPI)ismultipliedinthecalculationoftheannualgeneral adjustment. (r) Individual Rent Adjustment. An adjustment to the otherwise lawful rent thatis authorizedbyahearingofficerortheRentBoardpursuanttothis chapter. 10 (s)JuniorAccessoryDwellingUnit.Theterm“junioraccessorydwellingunit” has thesamemeaningasitdoesinCal.Govt.Code§65852.22(h)(1).
(t)Landlord.Anowner,lessor,sublessororanyotherpersonentitledto receiverentfortheuseandoccupancyofanyrentalunit,oranagent, representative,predecessor,orsuccessorofanyoftheforegoing. (u) Owner. An individual, corporation, association, joint venture, and/or business entity and its respective agents, who hold title to a housing accommodation.
(v)Petition.Apetitionforanindividualrentadjustmentpursuanttothis chapter.
(w)PrimaryResidence.Theoccupant’susualplaceofreturn.Toclassifyaunit asan occupant’sprimaryresidencedoesnotrequirethattheoccupantbe physically presentintheunitatalltimesorcontinuously,butdoesrequire thattheunitbe theoccupant’susualplaceofreturn.Factorsthatare indicativeofprimary residenceincludebutarenotlimitedto:
(1)Theoccupantcarriesonbasiclivingactivitiesatthesubjectpremises for extendedperiods;
(2)Thesubjectpremisesarelistedwithpublicagencies,includingbutnot limitedtofederal,stateandlocaltaxingauthorities,astheoccupant’s primaryresidence;
(3)utilitychargesandotherchargesandfeesassociatedwithusageofthe structurearebilledtoandpaidbytheoccupantatthesubject premises; (4)Theoccupantdoesnot fileforahomeowner’staxexemptionforany differentproperty;
(5)Theoccupantisnotregisteredtovoteatanyotherlocation;and (6)Ownershipisheldinthenameoftheoccupantclaimingprimary residenceandnotheldbyaLimitedLiabilityCorporationorother corporateorbusinessentitystructure.
(x)Property.Allrentalunitsonaparcelorlotorcontiguousparcelsor contiguouslotsundercommonownership.
11 (y)Qualifiedtenant.Anytenantwhosatisfiesanyofthefollowingcriteriaon thedate ofserviceofthewrittennoticeofterminationdescribedinCal.CivilCode§ 1946:hasattainedage62;ishandicappedasdefinedinSection 50072oftheCal.
HealthandSafeCode;isdisabledasdefinedinTitle42 UnitedStatesCode§423; hasadevelopmentaldisabilityasdefinedinCal.WelfareandInstitutionsCode§ 4512;isachildwithadisabilityasdefined inTitle20UnitedStatesCode§ 1401(3);orisapersonresidingwithandon whomislegallydependent(as determinedforfederalincometaxpurposes) oneormoreminorchildren. (z)RelocationAssistance.Financialassistanceintheamountssetforthin section 20-10(a)oramountssetforthbytheRentBoardpursuanttosection 20-10(b). (aa)Rent.Allperiodicpaymentsandallnonmonetaryconsiderationincluding, but notlimitedto,thefairmarketvalueofgoods,laborperformedor services renderedtoorforthebenefitofthelandlordunderarentalhousing agreement concerningtheuseoroccupancyofarentalunitandpremises andattendant housingservices,includingallpaymentandconsideration demandedorpaidfor parking,utilitycharges,pets,furniture,and/or subletting. (bb)RentBoard.Theterm“RentBoard”referstothePomonaRentalHousing Boardestablishedbythischapter.
(cc)RentalHousingAgreement.Anagreement,oral,written,orimplied, betweena landlordandtenantforuseoroccupancyofarentalunitandfor housing services.Forthepurposesofthischapter,theterms“rental housing agreement”and“lease”areinterchangeable.
(dd)RentalHousingFee.Thefeedescribedinsection20-50herein. (ee)RentalUnit.Anybuilding,structure,orpartthereof,orlandappurtenant thereto, oranyotherrentalpropertyrentedorofferedforrentfor residentialpurposes, whetherornottheunitpossessesavalidCertificateof Occupancyforuseas rentalhousing,togetherwithallhousingservices connectedwithuseor occupancyofsuchproperty,suchascommonareas andrecreationalfacilities heldoutforusebythetenant.Forthepurposesof thischapter,theterms“rental unit”and“unit”areinterchangeable.
(ff)SecurityDeposit.Anypayment,fee,deposit,orchargeasdefinedinSection 1950.5oftheCaliforniaCivilCode.
(gg)Single-FamilyAccommodation.“Single-familyaccommodation”means:
12 (1)Ahousingaccommodation,whetherdetachedorattached,andthe appurtenantlandthatcontains:
(A)Onesinglefamilydwelling;or
(B)Onesingle-familydwellingwithoneaccessorydwellingunit and/oronejunioraccessorydwellingunit;or
(2)Asinglerentalunitinacommoninterestdevelopmentasthattermis definedinCal.CivilCode§4100.
(hh)Single-FamilyDwelling.Astructure,whetherdetachedorattached,that containsaroomorgroupofroomsformingasinglelivingspace,which includes akitchen,thatisusedorintendedtobeusedforliving,eating,and sleeping,and thestructure’sappurtenantland.
(ii)Single-FamilyHome.Adetachedbuildingcontainingasingleresidential dwellingunitseparatelyalienablefromanyotherdwellingunit. (jj)Tenant.Atenant,subtenant,lessee,sublesseeoranyotherpersonentitled under thetermsofarentalhousingagreementorthischaptertotheuseor occupancy ofanyrentalunit.Thesingularterm“tenant”includesthe plural. (kk)TenantAssociation.Anygroupoftenantsresidinginrentalunitsinthe samebuildingorindifferentbuildingsownedoroperatedbythesame managementcompany,agent,owner,orlandlord,whochoosetobeso designated.
(ll)TenantOrganization.Anorganizationthatrepresentsatleastamajorityof the headsofhouseholdinthehousingaccommodationexcludingthose households inwhichnomemberhasresidedinthehousingaccommodation foratleast90 daysandthosehouseholdsinwhichanymemberhasbeenan employeeofthe ownerorlandlordduringthepreceding120days.
(mm)UtilityCharges.Anychargesforgas,electricity,water,garbage,sewer, telephone,cable,internet,orotherservicerelatingtotheuseand occupancyofarentalunit.
(nn)WrittenNoticetoCease.Awrittennoticeprovidedbyalandlordthatgives a tenantanopportunitytocureanallegedviolationorproblempriorto initiating legalproceedingstoterminatetenancy.Anywrittennoticeto ceasemust:
13 (1)Providethetenantareasonableperiodtocuretheallegedviolationor problem;
(2)Informthetenantthatfailuretocuremayresultintheinitiationof evictionproceedings;
(3)Informthetenantoftherighttorequestareasonableaccommodation;(4) InformthetenantofthecontactnumberfortheRentBoard;
(5)Includeaspecificstatementofthereasonsforthewrittennoticeto ceasewithspecificfactstopermitadeterminationofthedate,place, witnessesandcircumstancesconcerningthereasonfortheeviction; and
(6)Whereabreachofleaseisalleged,informthetenantwhatlease provisionhasbeenbreachedandwhatthetenantmustdoinorderto curethebreach.
Sec.20-4.–Exemptions.
(a)Fullyexempt.Thefollowingrentalunits,andhousingaccommodations containingsuchrentalunits,areexemptfromallprovisionsofthischapter:
(1)unitsinhotels,motels,inns,touristhomesandroomingandboarding houseswhicharerentedprimarilytotransientguestsforaperiodof fewerthanthirty(30)days;
(2)rentalunitsinanyhospital,convent,monastery,extendedmedical care facility,asylum,non-profithomefortheaged,ordormitoryowned and operatedbyanaccreditedinstitutionofhighereducation;
(3)rentalunitsownedoroperatedormanagedbyanot-for-profit
organizationpursuanttoataxcreditprogram;
(4)rentalunitswhichagovernmentunit,agencyorauthorityowns, operates,ormanages,orinwhichgovernment-subsidizedtenants reside,ifapplicablefederalorstatelaworadministrativeregulation specificallyexemptsuchunitsfrommunicipalrentcontrol;
(5)rentalunitsadditionallyexemptedpursuanttoarticleII.
(b)Partiallyexempt,i.e.,exemptfromrentstabilization.Thefollowingrental 14 unitsareexemptfromarticlesIV,V,andVIofthischapter(regarding stabilizationofrents),fromarticleIX(regardingpetitionsforindividual rent adjustment),andfromarticleX(regardingtenantandCity opportunitiesto purchase),butarenotexemptfromarticleIII(tenantprotections)and articleVII(tenantbuyoutnotificationprogram):
(1)For fifteen(15)yearsfromissuanceofits firstcertificateofoccupancy, anyrentalunitthatisnotasingle-familyhomeandthatisissuedits first certificateofoccupancyaftertheeffectivedateofthischapter. Afterthe fifteenyears,suchrentalunitsshallnolongerbeexempt fromarticlesIV, V,VI,IXandXofthischaptertotheextentallowed bylaw;
(2)Totheextentrequiredbychangestostatelawaftertheeffectivedate of thisChapter,rentalunitsexemptfromrentcontrolpursuanttothe Costa HawkinsRentalHousingAct(CaliforniaCivilCodeSection 1954.52. et seq.).Whererentrestrictionsarepermittedbystatelaw, theRentBoard mayissuerulesandregulationstogovernthe
restrictionsonrentalunitsidentifiedinthisparagraph.
ARTICLEII.–EXEMPTIONSFORLOCALHOMEOWNERS
HomeownershipisofgreatimportancetotheresidentsoftheCityofPomona.In additiontotherentalunitsexemptedinsection20-4(a)ofthischapter,and notwithstandinganyotherprovisionofthischapter,therentalunitsmeetingthe requirementsdescribedinthesectionsofthisarticlearealsoexemptfromall provisions ofthischapter.
Sec.20-5.–Certainsingle-familyhomesandaccessorydwellingunits exempt.
(a)AhomeownerwhoseprimaryresidenceisintheCityofPomonamay submit totheRentBoard,forapprovalforexemption,provideditisnota rentalunit atthetimeofsubmission,onesingle-familyhome(thatisnot the homeowner’sprimaryresidence)oronepermittedaccessorydwelling unit (“ADU”)oronepermittedjunioraccessorydwellingunit(“JADU”), which shallbeapprovedandthereafterexemptfromthischapterif,and onlyforso longas,thefollowingconditionsaremet:
(1)Thehomeownerisanaturalperson,oragroupoftwoormorenatural persons,whoseprimaryresidenceisintheCityofPomona,thathasan ownershipinterestofatleast fiftypercent(50%)inthehome,ADUor JADU beingsubmitted,andthatobtainedwrittenpermissiontoseek
15 exemptionforthehome,ADUorJADUfromeveryoneelsethathasan ownershipinterestinit;and
(2)Noonewithanownershipinterestinthehome,ADUorJADUhasan ownershipinterestinanyotherhome,ADU,orJADUthatisexempt from thischapterunderthissection.
(b)Notwithstandingtheforegoing,whenarentalunitthathasbeenexempt under section20-5(a)transfersownershipthroughforeclosure,section20-9 herein applies.
Sec.20-6.–Temporaryrentalsallowed.
Ahomeownerwhoistheprimaryresidentofasingle-familyhomemaycreatea temporarytenancyintheirprimaryresidencethatisexemptfromthischapter.The temporarytenantmustbeprovided,inwritingattheinceptionofthetenancy,a statementofthelengthofthetenancyandastatementthatthetenancymaybe terminatedattheendofthetemporarytenancyandrelocationassistanceshallnot be provided.Thissectiononlyappliestotenanciesthatlastnomorethantwelve (12) consecutivemonths.
Sec.20-7.–Rentingofaroomunregulated.
Thetenancywherethetenantsharesabathroomorkitchenwiththe homeowner shallbeexemptfromthischapterifthehomeistheprimaryresidence ofthe homeowner.
ARTICLEIII.–TENANTPROTECTIONS
Sec.20-8.–Justcauseforevictionprotections.
Nolandlordshalltakeactiontoterminateanytenancy,orendeavortorecover possessionofarentalunit,includingbutnotlimitedtomakingademandfor possession ofarentalunit,threateningtoterminateatenancyorallyorinwriting, servingany writtennoticetoceaseorotherevictionnotice,orbringinganyactionto recover possession,orbegrantedrecoveryofpossessionofarentalunitunlessat leastoneof thefollowingconditionsexists:
(a)Failuretopayrent.Thetenanthasfailed,afterreceivingawrittennotice to cease,topaytherenttowhichthelandlordislegallyentitledunderthe rental housingagreement,thischapter,state,andanyotherlocallaw.This conditiondoes notincludeafailuretopayanyseparatelychargedfees.
16 (b)Breachoflease.
(1)Abreachofleaseoccursifthetenanthas,afterreceivingawritten notice tocease,continuedtosubstantiallyviolateanyofthematerial termsofthe rentalhousingagreement,otherthanaviolationbasedon thefollowing termsoranytermselaboratedinregulationsestablished bytheRent Board:
(A)Theobligationtosurrenderpossessionuponpropernotice;or (B)Theobligationtolimitoccupancy,providedthattheadditional tenantwhojoinstheoccupantsoftheunittherebyexceeding the limitsonoccupancysetforthintherentalhousing
agreementiseitherthe firstorseconddependentchildtojoin the existingtenancyofatenantofrecord,thesoleadditional adult tenant,orisareplacementtenantwhomovedinafteran approved tenantvacatedtherentalunit.Forpurposesofthis paragraph, multiplebirthsshallbeconsideredasonechild.
Thelandlord,however,hastherighttoapproveorreasonably
disapprovetheprospectiveadditionalorreplacementtenant, who isnotaminordependentchild,providedthattheapproval isnot unreasonablywithheld.Ifthelandlordfailstorespondto the
tenantinwritingwithadescriptionofvalidreasonsforthe denial oftherequestwithin14daysofreceiptofthetenant’s
writtenrequest,thetenant’srequestshallbedeemedapproved by thelandlord;or
(C)Achangeinthetermsofthetenancythatisnottheresultof an expresswrittenagreementsignedbybothparties.The
tenantmustknowinglyconsent,withoutthreatorcoercion,to
eachchangeinthetermsofthetenancy.Alandlordisnot
requiredtoobtainatenant’swrittenconsenttoachangeinthe
termsofthetenancyifthechangeinthetermsofthetenancy is
authorizedbythischapter,orifthelandlordisrequiredto change thetermsofthetenancypursuanttofederal,state,or locallaw.
Nothinginthisparagraphshallexemptalandlord
fromprovidinglegallyrequirednoticeofachangeintheterms of thetenancy.
(2)Protectionsforchildren,families,andothervulnerabletenants.The protectionsinsubparagraph(b)(1)(B)hereinshallbeconsidered minimum protections.TheRentBoardshallenactregulationsthat,to theextent permissibleunderlaw,promotestabilityforschool-aged childrenandfurther protectfamilies,peoplewithdisabilities,andthe
17 elderlyfromdisruptiveeviction.
(c)Nuisance.Thetenantiscommittingorpermittingtoexistanuisancein,or is causingdamageto,therentalunitortotheunit’sappurtenances,orto the commonareasofthepropertycontainingtherentalunit,oriscreating an unreasonableinterferencewiththecomfort,safety,orenjoymentofany ofthe otherresidentsofthepropertyorwithina1,000-footradius extendingfromthe boundarylineoftheproperty.
(d)Illegalpurpose.Thetenantisusing,orpermittingarentalunit,the commonareas ofthepropertycontainingtherentalunit,oranareawithin a1,000footradius fromtheboundarylineofthepropertytobeusedforany illegalpurpose.
Theterm“illegalpurpose”asusedinthissubsectiondoesnotincludethe use ofhousingaccommodationslackingalegalapproveduseorwhichhave been citedforoccupancyorotherhousingcodeviolations.
(e)Refusaltoexecutenewlease.Thetenant,whohadarentalhousing agreement whichterminatedonoraftertheeffectivedateofthischapter, hasrefused,after writtenrequestordemandbythelandlord,toexecutea writtenextensionor renewalthereofforafurthertermoflikedurationwith termswhichare materiallythesameasinthepreviousagreementand providedthatsuchterms donotconflictwithanyprovisionofthischapteroranyotherprovisionoflaw. (f)Failuretogiveaccess.Thetenant,afterserviceofpropernotice,hasrefused the landlordreasonableaccesstotherentalunitforthepurposeofmaking repairs orimprovements,orforthepurposeofinspectionaspermittedor requiredby law,orforthepurposeofshowingtherentalunittoany prospectivepurchaser ormortgagee.Thenoticeshallinformthetenantthat iftheyareunableto complybasedonadisability-relatedreason,theyhave therighttorequesta reasonableadjustmentorchangeinthelandlord’s policiesorpracticesto accommodatethetenant’sdisability.
(g)Subtenantinsolepossession.Thepersoninpossessionoftherentalunitat the endofaleasetermisasubtenantinsolepossession,notapprovedby the landlord.
(h)Ownermove-in.Thelandlordseeks,afterprovidingwrittennoticetothe tenant pursuanttostatelaw,torecoverpossessionoftherentalunitin goodfaithfor useandoccupancyasaprimaryresidencebythelandlord,or thelandlord’s spouse,domesticpartner,children,grandchildren,parentsor grandparents. 18 (1) As used in subsection (h) herein, landlord shall only include a landlord that is a natural person and has at least afifty percent (50%) recorded ownershipinterestintheproperty.
(2)Noevictionmaytakeplaceunderthissubsectionifthesamelandlordor enumeratedrelativealreadyoccupiesaunitontheproperty,orifa vacancyalreadyexistsontheproperty.Ifacomparableunitdoes become vacantandavailablebeforetherecoveryofpossession,the landlordshall rescindthenoticetovacateanddismissanyaction filed torecover possessionoftherentalunit.
(3)Anynoticeterminatingtenancypursuanttothissubsectionshall containthename,addressandrelationshiptothelandlordofthe person intendedtooccupytherentalunitandtherightspursuantto paragraph (5)herein.
(4)Thelandlordorenumeratedrelativemustintendingoodfaithtomove intotherentalunitwithinsixty(60)daysafterthetenantvacatesand to occupytherentalunitasaprimaryresidenceforatleastthirty-six (36) consecutivemonths.TheRentBoardmayadoptregulations governingthe determinationofgoodfaith.
(5)Ifthelandlordorrelativespecifiedonthenoticeterminatingtenancy failstooccupytherentalunitwithinsixty(60)daysafterthetenant vacates,thelandlordshall:
(A)Offertherentalunittothetenantwhovacateditatthesame rent ineffectwhenthetenantvacated;and
(B)Paytosaidtenantallreasonableexpensesincurredinmoving to andfromtherentalunit.
(6)Evictionprotectionforelderlyordisabledtenant.Alandlordmaynot evictatenantpursuanttosubsection(h)hereinifthetenant(A)has residedintherentalunitforatleast five(5)yearsandiseitherat least sixty-two(62)yearsoldordisabled;or(B)iscertifiedasbeing terminally illbythetenant’streatingphysician.Notwithstandingthe above,a landlordmayevictatenantwhoqualifiesfortheexemption hereinifthe landlordorenumeratedrelativewhowilloccupythe rentalunitalso meetsthecriteriaforthisexemptionandnoother unitsareavailable. (7)Notwithstandingparagraph(6)herein,atalltimesalandlordmay 19 requestareasonableaccommodationifthelandlordorenumerated relativeisdisabledandanotherunitinPomonaisnecessaryto
accommodatetheperson’sdisability.
(i)Necessaryandsubstantialrepairsrequiringtemporaryvacancy.The landlord, afterhavingobtainedallnecessarypermitsfromtheCityof Pomona,andhaving providedwrittennoticetothetenant,seeksingood faithtoundertake substantialrepairsthatarenecessarytobringtherental unitintocompliance withapplicablecodesandlawsaffectingthehealth andsafetyoftenantsofthe building,providedthat:
(1)Therepairsnecessitatethatthetenantvacatetherentalunitbecause the workwillrendertherentalunituninhabitableforaperiodofnot lessthan thirty(30)days;
(2)Thelandlordgivesadvancenoticetothetenantoftherighttoelect between:
(A)Movingintoacomparablevacantrentalunitownedbythe
landlordatthesamerent,ifsuchcomparablevacantunit
exists;or
(B)Thefirstrightofreturntoreoccupytherentalunitupon
completionoftherepairsatthesamerentchargedtothe
tenantbeforethetenanttemporarilyvacatedtherentalunit.
(3)Intheeventthatthetenantelectssubparagraph(i)(2)(A)above,i.e.,to moveintoacomparablevacantrentalunitatthesamerent,thetenantis noteligibleforanyrelocationassistancepursuanttosection20-10 herein, howeverthelengthoftenancyshallcontinuetobecalculated fromthe datethetenant firstenteredintoarentalhousingagreement atthe property.
(4)Intheeventthelandlord filesapetitionforindividualrentadjustment withinsix(6)monthsfollowingthecompletionofthework,thetenant shallbepartytosuchproceedingasifheorshewerestillin
possession,unlessthelandlordsubmitswithsuchpetitionawritten waiverbythetenantofhisorherrighttoreoccupytherentalunit pursuanttothissubsection.
(j)Withdrawaloftheunitpermanentlyfromrentalmarket.TotheextentCal.
GovernmentCode§7060 etseq. requiresthischaptertopermitthe landlordto withdrawallrentalunitsofanentirepropertyfromtherental market,thelandlord mayseekingoodfaithtorecoverpossessionofsuch
20 rentalunits.Thelandlord firstmusthave filedtherequisitedocuments withthe RentBoardinitiatingtheprocedureforwithdrawingrentalunits fromrentor leaseunderCal.GovernmentCode§7060 et.seq.andall regulationspassedby theRentBoard,withtheintentionofcompletingthe withdrawalprocessand goingoutoftherentalbusinessordemolitionofthe property.Ifdemolitionis thepurposeofthewithdrawal,thenthelandlordmusthavereceivedallneeded permitsfromtheCityofPomonabefore servinganynoticesterminatinga tenancybasedonthissubsection. Tenantsshallbeentitledtoaminimumof 120-daynoticeor1yearinthe casetenantsaredefinedasseniorordisabledand areotherwiseeligiblefor suchnoticeunderCal.GovernmentCode§7060.4(b).
Noticetimesmaybe increasedbyregulationsifstatelawallowsforadditional time.TheRent BoardortheCityCouncilmayfurtherrestrictorremovethe abilityofa landlordtoutilizethisparagraphintheeventthestatelawis amended.
(k)Governmentorder.Thelandlordseeksingoodfaithtorecoverpossessionof the rentalunitinordertocomplywithagovernmentalagency’sorderto vacate, ordertocomply,ordertoabate,oranyotherorderthatnecessitates thevacating ofthebuildinghousingtherentalunitasaresultofaviolation ofthePomona CityCodeoranyotherprovisionoflaw.
Sec.20-9.–Tenantprotectionsduringforeclosure.
Notwithstandinganythingtothecontraryinsection20-4orarticleIIherein,a landlordwhoobtainstitlethroughforeclosuretopropertycontainingrentalunits subjecttothischaptermaybringanactiontorecoverpossessionoftherentalunitfrom atenantwhosetenancycommencedonorbeforethedatethatthelandlordobtained title,onlyuponthegroundssetforthinsection20-8.Torecoverpossession oftherental unitfromatenant,thelandlordmustcomplywithalltherequirementsandprovisionsof thisarticle,including,withoutlimitation,thepaymentof relocationassistancerequired pursuanttotheprovisionsofsection20-10.
Sec.20-10.–Relocationassistance.
Alandlordseekingtorecoverpossessionundersection20-8(h),(i),(j),or(k) hereinshallproviderelocationassistancetoaffectedtenanthouseholds.The landlordshallnotifytheaffectedtenantsoftheirrightsunderthissubsection,if any, atthetimeofserviceofthenoticetoquit.
(a)Relocationassistanceshallinitiallybeprovidedtothetenant(s)inarental unit asfollows:
(1)Ifallthetenantshavelivedintherentalunitforfewerthanthree yearsandatleastoneofthemisaqualifiedtenant,theamountis
21 $15,600.Ifallthetenantshavelivedintherentalunitforfewerthan three yearsandnoneofthemisaqualifiedtenant,theamountis $7,400.Ifat leastoneofthetenantsisaqualifiedtenantwhohaslived intherentalunit formorethanthreeyears,theamountis$18,400.If atleastoneofthe tenants,butnoqualifiedtenant,haslivedinthe rentalunitformorethan threeyears,theamountis$9,700.Ifthe householdincomeoftherental unitisatorbelowtheLowIncome LimitfortheLosAngeles-Long
Beach-AnaheimMetropolitan StatisticalArea,asadjustedforhousehold size,asdefinedbytheU.S. DepartmentofHousingandUrban
Development,regardlessoflength oftenancy,theamountis$18,400ifat leastoneofthetenantsisa qualifiedtenant,or$9,700ifnoneisaqualified tenant.Theseamounts shallincreaseannuallybythepercentageincrease intheannual ConsumerPriceIndexdescribedinsection20-25(a)(2). (A)Theentireamountshallbepaidtoatenantwhoistheonly
tenantintherentalunit.
(B)Iftwoormoretenantsoccupytherentalunit,theneachtenant shallbepaidanequalpro-ratashareoftherelocation
assistance.
(C)Ifmorethanoneamountappliestotherentalunit,the
landlordshallpaythehigheramountfortherentalunit.
(2)Tenantswhoclaimeligibilitybasedontheirincomeshall filea statement withtheRentBoardverifyingtheirincomeonaform prescribedbythe RentBoard.Theformshallbedeliveredtothe tenantbythelandlord togetherwiththenoticeseekingrecoveryof possession.Requestsfora hearingtoappealadecisionregardinga tenant’srelocationassistance eligibility,includingdisputesabout eligibilityforhigherrelocation assistancebasedonatenant’sincome, age,lengthoftenancy,family statusand/ordisabilitystatus,mustbe filedinwritingontheform prescribedbytheRentBoardandreceived bytheRentBoardwithin fifteen(15)calendardaysofthedateofthe RentBoard’snotificationofits decisionregardingrelocation
assistance.
(b)TheRentBoardshallissuerulesandregulationstoeffectuatethissection includingbutnotlimitedtorulesandregulationssettingforththe proceduresfor establishingtheamountofrelocationassistanceapplicable toanygiventenant household,andforthereasonablytimelypaymentof anyapplicablerelocation assistance.Innoeventshalltheamountof relocationassistancebelessthanthe amountprovidedforinCal.Health
22 andSafetyCode§17975.2.Therelocationassistanceshallbepaidtoany tenantwhovacatestherentalunitnolaterthanthetimeheorshevacates the rentalunit.
Sec.20-11.–Rightofreturnand firstrightofrefusal.
Alltenantswhosetenancyisterminatedonabasisenumeratedinsection20-8 (h), (i),(j),or(k)hereinshall,tothemaximumextentpermittedbystatelaw,have the first rightofrefusaltoreturntotherentalunitifthatrentalunitisreturnedto themarketby thelandlordorsuccessorlandlord.rentfortherentalunitshall,to themaximumextent permittedbystatelaw,betherentlawfullypaidbythetenantatthetimethelandlord gavenoticeofterminationbaseduponsection20-8(h),(i), (j),or(k)herein.
Sec.20-12.–Requirednoticeforwithdrawalofrentalunitsfromrental housing andregulationofpropertyonre-offerofrentorlease
afterwithdrawal.
Within180daysofthe firstmeetingoftheRentBoard,theRentBoardshall adopt regulations,inthemannerspecifiedbyCal,GovernmentCode§7060.5,that implement alltheprovisionssetforthinCal.GovernmentCode§7060 etseq.Such regulations shall be updated from time to time to ensure consistency with Cal.
Government Code § 7060et seq.and to ensure that the maximum protections authorizedbylawareaffordedtotenantsofrentalunits.
Sec.20-13.–Postingofnotice.
Foreverypropertycontainingrentalunitssubjecttothischapter,thelandlordshall postanoticeonaformpreparedandauthorizedbytheRentBoard,providing informationabouttheexistenceofthischapter.Noticemustbepostedina conspicuous locationinthelobbyoftheproperty,nearamailboxusedbyall tenants,orinorneara publicentrancetotheproperty.Thenoticeshallbewritten inEnglishandSpanish,and inanyotherlanguagesasrequiredbytheRentBoard.
Sec.20-14.–Securitydeposits.
Nolandlordshallincreaseasecurityorotherdepositoriginallyrequiredfroma tenantasaconditionofcontinuedoccupancyofarentalunitsubjecttothischapter. landlordsshallpayinterestannuallyonallsecuritydepositsheldforatleastone yearfor hisorhertenants.Theinterestratetobepaidonsecuritydepositsshallbe setannually bytheRentBoardeverySeptember.Atenantshallbegiventhe unpaidaccruedinterest intheformofeitheradirectpaymentoracreditagainst thetenant’srent. 23 Sec.20-15.–Retaliationisbarred.
Nolandlordmaythreatentobring,orbring,anactiontorecoverpossession, cause thetenanttoquittheunitinvoluntarily,serveanywrittennoticetoceaseor noticeof terminationoftenancy,decreaseanyservicesorincreasetherentwhere thelandlord’s dominantmotiveisretaliationagainstthetenantforthetenant’s assertionorexerciseof rightsunderthischapter.Suchretaliationshallbeadefense toanactiontorecover possession,oritmayserveasthebasisforanaffirmative actionbythetenantforactual andpunitivedamagesandinjunctiverelief.Atenantmayassertretaliationaffirmatively orasadefensetothelandlord’saction regardlessoftheperiodoftimewhichhas elapsedbetweenthetenant’sassertionor exerciseofrightsunderthischapterandthe allegedactofretaliation.TheRent Boardmayaddressretaliationissuesfurtherinits rulesandregulationsconsistent withtheintentofthissubsectiontopreventunlawful retaliation.TheRentBoardshallmaintainrecordsofcomplaintsreceivedregarding violationsofthischapter, andshall,uponrequest,makecertifiedcopiesavailableto tenantsofrecordsof complaintsinitiatedbytenantsregardingtheirrentalunits.
Sec.20-16.–Harassmentisprohibited.
Nolandlordmaythreatentobring,orbring,anactiontorecoverpossession, cause thetenanttoquittherentalunitinvoluntarily,serveanywrittennoticeto ceaseornotice ofterminationoftenancy,decreaseanyservices,refusetoacceptor acknowledge receiptofatenant’slawfulrentpursuanttothischapter,orinterfere withthetenant’s quietenjoymentoftherentalunitandcommonareasaspartofan attempttoincrease therentabovethemaximumallowablerentpermittedunder thischapter,eitherby obtainingsuchexcessiverentfromthetenantorbycreating avacancyandincreasing therenttoanewtenant.Suchharassmentshallbea defensetoanactiontorecover possession,oritmayserveasthebasisforan affirmativeactionbythetenantforactual andpunitivedamagesandinjunctive relief.TheRentBoardmayaddressharassment issuesfurtherinitsrulesand regulationsconsistentwiththeintentofthissubsectionto preventunlawful harassment.
Sec.20-17.–Noticetospecifybasisfortermination.
Anynoticepurportingtoterminatetenancyonanyofthebasesspecifiedinthis articlemuststatewithspecificitythebasisonwhichthelandlordseeksto terminate thetenancy.
Sec.20-18.–Noticeoftheexistenceofthischapterrequiredat
commencementoftenancy.
Thelandlordofanycoveredrentalunitisrequiredtocomplywiththefollowing 24 noticerequirementsatthecommencementofanytenancy:
(a)Onorbeforethedateofcommencementofatenancy,thelandlordmustgive the tenantawrittennoticeinaformprescribedbytheRentBoardwhich must includethefollowinginformation:
(1)Theexistenceandscopeofthischapter,includingalltenant protections;and
(2)Thetenant’srighttopetitionagainstcertainrentincreases. (b)Thelandlordmustgivetheinitialnoticetothetenantinthelanguagethat was usedtonegotiatethetermsofthetenancy.
(c)Upontenant’srequest,thelandlordmustprovidethetenantwithacopyof this chapter.
Sec.20-19.–Landlordcompliancewiththischapter.
Inanyactionbroughttorecoverpossessionofarentalunitsubjecttothis chapter,thelandlordshallallegecompliancewiththischapter.
Sec.20-20.–FilingterminationnoticeswiththeRentBoard.
Thelandlordshall filewiththeRentBoardacopyofanynoticeterminating tenancy,includingawrittennoticetocease,withinthree(3)businessdaysafter servingthenoticeonthetenant.
Sec.20-21.–Non-waivability.
Anyprovisionofarentalhousingagreement,whetheroralorwritten,that purportstowaiveanyprovisionofthischapterestablishedforthebenefitofthe tenant,shallbedeemedtobeagainstpublicpolicyandshallbevoid.
Sec.20-22.–Failuretocomply.
Alandlord’sfailuretocomplywithanyrequirementofthisarticle,including withoutlimitationthefailureto fileanyoftherequirednoticeswiththeRent Board, isacompleteaffirmativedefenseinanunlawfuldetainerorotheraction broughtby thelandlordtorecoverpossessionoftherentalunit.
25 ARTICLEIV.–STABILIZATIONOFRENTS
Sec.20-23.–Rentsstabilized.
Upontheeffectivedateofthischapter,nolandlordshallchargerentfora coveredrentalunitinanamountthatexceedsthesumofthebaserentplusany lawfulrentincreasesactuallyimplementedpursuanttothischapter.
Sec.20-24.–Rentincreasesregulated.
Nolandlordshallincreaserentforacoveredrentalunitexceptasauthorizedby this chapter.RentincreasesshallbelimitedtothosepermittedbyarticleVand articleIX.A landlordmaysettheinitialrentforanewtenancypursuanttoarticleVI.
ARTICLEV.–RENTINCREASESPURSUANTTOANNUALGENERAL
ADJUSTMENT
Sec.20-25.–Annualgeneraladjustment.
NolaterthanJune30theachyear,theRentBoardshallannouncetheamount ofthe annualgeneraladjustment,whichshallbeeffectiveasofSeptember1stof thatyear.The annualgeneraladjustmentisthepercentagebywhichtherentfor existingtenanciesin coveredrentalunitsmaybeincreasedeachyear,subjecttothe limitationsofthis chapter.
(a)Theannualgeneraladjustmentshallbeequaltothepercentageincreasein the annualaverageConsumerPriceIndex(CPI)forthetwelve-month period endingasofMarchofthecurrentyearmultipliedbytheindexing ratio,rounded tothenearestone-quarterofapercent.Theindexingratio shallinitiallybe80%.
TheRentBoardmayadoptadifferentindexingratio toachievethepurposesof thischapter,butinnoeventshallitbegreater than100%.
(1)Forexample,hadthischapterbeenineffectin2019,theannual general adjustmentannouncedbyJune30,2019andeffectiveasof September1, 2019wouldhavebeencalculatedasfollows:Thesumof the12CPIsfrom April2017toMarch2018÷12=258.518;Thesumof the12CPIsfromApril 2018toMarch2019÷12=267.794;((267.794–258.518)÷258.518)×100= thepercentincreaseintheannualaverage CPIforthetwelve-month periodendingasofMarch2019=3.59%× 80%(theindexingratio)=2.87%, which,roundedtothenearestonequarterofapercent=3%=theannual generaladjustment.
26 (2)TheCPItobeusedforcalculationsinthissectionisAllItems,All UrbanConsumers,LosAngeles-LongBeach-AnaheimArea,not
seasonallyadjusted,BasePeriod1982-84=100,oranysuccessor designationofthatindexthatmaylaterbeadoptedbytheU.S.
DepartmentofLabor,BureauofLaborStatistics.
(b)Subsection(a)ofthissectionnotwithstanding,innoeventshalltheannual generaladjustmentbelessthanzeropercent(0%)ormorethan fivepercent (5%).
Sec.20-26.–Onerentincreaseperyear.
Nomorethanonerentincreasepertwelve-monthperiodmaybeimposedona tenant.
Sec.20-27.–Noticeofrentincreaserequired.
Allowablerentincreasespursuanttotheannualgeneraladjustmentshall become effectiveonlyafterthelandlordprovideswrittennoticetothetenantinthe manner prescribedbylaw,withatleastthirty(30)daysadvancewrittennotice.
Sec.20-28.–Requirednoticetoincreaserentorchangeothertermsof tenancy.
Aspartofanynoticetoincreaserentorchangeanytermsoftenancy,alandlord mustinclude:
(a)Noticeoftheexistenceofthischapter;and
(b)Therighttopetitionagainstanyrentincreaseinexcessoftheannualrent adjustmentunlesssuchrentincreaseispursuanttoadecisiongrantinga petition.
(c)Norentincreaseshalltakeeffectuntiltherequirementsofthissubsection have beenmet.
Sec.20-29.–Conditionsunderwhichrentincreasenotpermitted. No rentincreaseshallbeeffectiveifthelandlord:
(a)Hasfailedtosubstantiallycomplywithallprovisionsofthischapterandall rules andregulationspromulgatedbytheRentBoard;or
27 (b)HasfailedtomaintaintherentalunitincompliancewithCal.CivilCode§§1941.1 etseq.andCal.HealthandSafetyCode§§17920.3and17920.10;or (c)Hasfailedtomakerepairsorderedbyahearingofficer,theRentBoard,or the CityofPomona.
ARTICLEVI.–INITIALRENTSFORNEWTENANCIES
Sec.20-30.–Settingofinitialrentswithoutrestriction.
Totheextentrequiredbystatelaw,landlordsmaysettheinitialrentfornew tenantswithoutregulationbythischapter.
Sec.20-31.–Restrictionsoninitialrentfornewtenancies.
Tothemaximumextentpermittedbystatelaw,theinitialrentfornew tenanciesin shallbesubjecttotherestrictionsofthischapter.TheRentBoardshall issuerulesand regulationstogoverntherestrictionsontheinitialrentfornew tenancieswheresuch restrictionsarepermittedbystatelaw.
Sec.20-32.–Rentincreasesaftersettinganinitialrent.
Afterthelandlordsetsaninitialrentpursuanttothissection,thelandlordmay only increasetherentinaccordancewiththischapter.Thelandlordmaynot increaserent basedoncostincreases,capitalimprovements,orothercircumstances thatarosebefore thenewtenancybegan.
ARTICLEVII.–TENANTBUYOUTNOTIFICATIONPROGRAM Sec.
20-33.–Purpose.
TheTenantBuyoutNotificationProgramprovidesforregulation,monitoring and enforcementofvoluntaryvacanciesofrentalunitssubjecttothischapteroccurring pursuanttoabuyoutagreement.Topromotefairnessduringbuyout negotiationsand agreements,thissectionrequirestenantsbeinformedoftheir rightsunderthis chapterbeforeexecutingabuyoutagreement.TheRentBoardmaypromulgate regulationstoimplementthissection.
Sec.20-34.–Disclosurenotice.
Beforemakingabuyoutoffer,thelandlordshallprovidethetenant(s)witha noticewhichshallbewrittenintheprimarylanguageofthetenantonaform 28 preparedandauthorizedbytheRentBoard,whichshallbedatedandsignedbythe landlordandthetenant(s).
Sec.20-35.–Buyoutagreementrequirements.
(a)Everybuyoutagreementshallbewrittenintheprimarylanguageofthe tenantandstateinaminimumof12-pointboldtypeabovethetenant signaturelineasfollows:
“You,(tenantname),maycancelthisbuyoutagreementanytimeupto30 days afterallpartieshavesignedthisAgreementwithoutanyobligationor penalty.” (b)Everybuyoutagreementshalladvisethetenantthathe/she/theyhavethe right:
(1)Nottoenterintoabuyoutagreement;
(2)Toconsultanattorneyand/ortheRentBoardbeforesigningthe buyoutagreement;and
(3)Tocancelthebuyoutagreementatanytimeupto30daysafterall partieshavesignedit.
(c)Everybuyoutagreementshallbesignedanddatedbythelandlordand tenant.
(d)Acopyofthefullyexecutedbuyoutagreementshallbegiventothetenant.Sec. 20-36.–Cancellationofbuyoutagreement.
(a)Atenantshallhavetherighttocancelabuyoutagreementforanyreason forup to30daysafterexecutionbythelandlordandthetenantwithoutany financial obligationorpenalty.
(b)Wheneverthenoticerequiredpursuanttothissectionand/orthebuyout agreementdoesnotconformtotherequirementsofthissectionorRent Board regulations,thetenantshallhavetherighttocancelthebuyout agreement throughtheapplicablestatuteoflimitationsperiod.
Sec.20-37.–Filingexecuteddisclosurenoticeandbuyoutagreement.
Thelandlordshall filewiththeRentBoardcopiesofthenoticerequired pursuantto section20-34signedbythetenantandthelandlordandthebuyout 29 agreementwithin60daysofexecutionofthebuyoutagreement.
Sec.20-38.–Affirmativedefense.
Aviolationofthisarticlemaybeassertedasanaffirmativedefenseinan unlawfuldetaineraction.
Sec.20-39.–Privaterightofaction.
Atenantmaybringaprivaterightofactionagainstalandlordwhoviolatesa provisionofthisarticleandrecoverdamagesandapenaltyof$1,000.
ARTICLEVIII.–POMONARENTALHOUSINGBOARD
Sec.20-40.–Created.
ThereiscreatedthePomonaRentalHousingBoard(“RentBoard”),whichshall functionandperformsuchdutiesassetforthinthisarticle.
Sec.20-41.–Appointment,composition,andeligibility.
TheRentBoardshallbecomprisedofseven(7)Pomonaresidentswhosubmitted applicationspursuanttosection20-42,whoareappointedbytheCityCouncilin accordancewithSection801ofarticleVIIIofthePomonaCityCharter.Ofthe seven membersoftheRentBoard,atleastthree(3)shallbetenants,andnomore thantwo(2) mayberesidentialrentalpropertyowners,propertymanagers, realtors,ordevelopersof marketratehousing.MembersoftheRentBoardmustbe incompliancewiththis chapterandallotherlocal,stateandfederallaws regulatingtheprovisionofhousing.
Annually,theRentBoardshallelectoneofits memberstoserveaschairperson.
Sec.20-42.–Application.
ApplicantsformembershipontheRentBoardshallsubmitanapplicationtothe City Council.TheapplicationshallbemadeonaformprovidedbytheCity Manager,and shallincludeaverifiedstatementunderpenaltyofperjuryofthe applicant’sinterests anddealingsinrealproperty,includingbutnotlimitedto, ownership,trusteeship,sale, ormanagement,andinvestmentin,orassociation with,partnerships,corporations,joint ventures,andsyndicatesengagedin ownership,sale,ormanagementofrealproperty duringthe3yearsimmediately priortotheapplicant’sapplication.Iftheapplicantisa residentialrentalproperty ownerorpropertymanager,ordeveloperofmarketrate housing,theapplication shallalsoincludeaverifiedstatementunderpenaltyofperjury thattheapplicant
30 hasbeenincompliancewiththischapterandallotherlocal,stateandfederallaws regulatingtheprovisionofhousingduringthethree(3)yearsimmediatelypriorto the applicant’sapplication.Thisdocumentationshallbemadeavailabletothe public.
Sec.20-43.–Powersandduties.
TheRentBoardshallhavethefollowingpowersandduties:
(a)Setrentsatfairandequitablelevelstoachievethepurposesofthischapter.
Notwithstandinganyotherprovisionofthischapter,theRentBoardshall have theauthoritytoadoptregulationsauthorizingrentincreasesand/or adjustments requiredbystateorfederallaw.
(b)Establishrulesandregulationsforadministrationandenforcementofthis chapter.
(c)Determineandpublicizetheannualgeneraladjustmentpursuanttothis chapter.
(d)Appointhearingofficerstoconducthearingsonpetitionsforindividualrent adjustmentpursuanttothischapter.
(e)Adjudicatepetitionspursuanttothischapterandissuedecisionswith ordersforappropriatereliefpursuanttothischapter.
(f)Establishproceduresandtimelinesforhearingsonpetitions,including determiningthetimelinesandproceduresforappealstotheRentBoard. (g)Administeroathsandaffirmationsandsubpoenawitnessesandrelevant documents.
(h)Establishabudgetforthereasonableandnecessaryimplementationofthe provisionsofthischapter,includingwithoutlimitationthehiringof necessary staff,andchargefeesassetforthhereininanamountsufficient tosupportthat budget.Thebudgetmayincludeexpenditurestoadvance thepoliciesherein. (i)Administerthewithdrawalprocessfortheremovalofrentalunitsfromthe rental housingmarket.
(j)Holdpublichearings.
(k)Conductstudies,surveys,investigations,andhearings,andobtain 31 informationtofurtherthepurposesofthischapter.
(l)ReportannuallytotheCityCouncilonthestatusofrentalunitssubjectto this chapter.Reportsshallbemadeavailabletothepublicandinclude,but notbe limitedto:(1)asummaryofthenumbersofwrittennoticestocease served pursuanttothischapter,includingthebasesuponwhichtheywere served,(2) asummaryofanyandallpetitionssubmittedtoand/ordecided byahearing officerand/ortheRentBoardpursuanttothischapter, includingthebaseson whichthepetitionsweresubmittedandthe determinationsonthepetitions,(3) asummaryofallevictionspursuantto section20-8(j),and(4)buyout agreementspursuanttoarticleVII.
(m)Publicizethroughreasonableandappropriatemeanstheprovisionsofthis chapter,includingwithoutlimitationtherightsandresponsibilitiesof landlordsandtenants.
(n)Establishascheduleofpenaltiesthatmaybeimposedfornoncompliance with thischapterorwithrulesandregulationspromulgatedunderthis chapter. (o)Pursuecivilremediesasprovidedbythischapterincourtsofappropriate jurisdiction.
(p)Interveneasaninterestedpartyinanylitigationbroughtbeforeacourtof appropriatejurisdictionbyalandlordortenantwithrespecttorentalunits subjecttothischapter.
(q)Anyotherdutiesnecessarytoadministerandenforcethischapter.Sec. 20-44.–Rulesandregulations.
TheRentBoardshallissueandfollowsuchrulesandregulationsaswillfurther the purposesofthechapter.
Sec.20-45.–Meetings.
TheRentBoardshallholdregularlyscheduledmeetingsasnecessarytoensure the performanceofitsdutiesunderthischapter.Allregularandspecialmeetings shallbe calledandconductedinaccordancewithstatelaw.
Sec.20-46.–Quorum.
FourboardmembersshallconstituteaquorumfortheRentBoard.
32 Sec.20-47.–Voting.
Theaffirmativevoteoffour(4)RentBoardmembersisrequiredforadecision, includingonallmotions,regulations,andordersoftheRentBoard.
Sec.20-48.–Compensation.
NotwithstandingSection2-524ofthePomonaCityCode,eachRentBoardmember shallreceiveforeverymeetingattended$75.00.Innoeventshallany boardmember receiveinany12-monthperiodmorethan$3,600.00formeeting attendance.TheCity Councilmay,fromtimetotime,increasethecompensationof theRentBoard members.
Sec.20-49.–Financing.
TheRentBoardshall financeitsreasonableandnecessaryexpenses,including withoutlimitationengaginganystaffasnecessarytoensureimplementationofthis chapter,bycharginglandlordsanannualrentalhousingfeeassetforthherein,in amountsdeemedreasonablebytheRentBoardinaccordancewithapplicablelaw. The RentBoardisalsoempoweredtorequestandreceivefundingwhenandif necessary fromanyavailablesourceincludingtheCityforitsreasonableand necessaryexpenses.
Sec.20-50.–Rentalhousingfee.
Alllandlordsshallpayarentalhousingfeeonanannualbasis.The firstRent Board convenedaftertheeffectivedateofthischaptershalldeterminetheamount ofthe rentalhousingfee.Theamountoftherentalhousingfeemaydifferbetween rental unitssubjecttotheentiretyofthischapterandthosethatarepartially exempt.The RentBoardmayadjusttheamountoftherentalhousingfeeatits discretiontoensure fullfundingofitsreasonableandnecessaryexpenses,in accordancewithallapplicable law.
(a)Pass-throughtotenants. Theamountoftherentalhousingfee,ifany,that a landlordmaypassthroughtoatenantisdeterminedbytheRentBoard. IftheRent Boarddeterminesthatpartoftherentalhousingfeemaybe passedthroughto tenants,thepass-throughmustbeintheformofarentsurchargeproratedovera 12-monthperiod.Theportionoftherental housingfeethatmaybepassedthrough toatenantshallnotexceed50%. Nofeemaybepassedthroughifithasnotactually beenpaidbytheowner.
(b)Nopass-throughforSection8tenants. Noportionoftherentalhousingfee may bepassedthroughtotenantswhosetenancyisgovernedbyaSection8 Housing ChoiceVoucherProgramcontract.Thelandlorddoesnothaveto
33 paytheRentBoardtheportionofrentalhousingfeethatthelandlordcould passthroughtothetenantbutforthissubsection.
Sec.20-51.–Citytoadvanceinitialfunds.
Duringtheinitialimplementationofthischapter,theCityshalladvanceall necessaryfundstoensuretheeffectiveimplementationofthischapter,untilthe Rent Boardhascollectedrentalhousingfeessufficienttosupportthe implementationofthis chapter.Aftertherentalhousingfeehasbeencollected,the Citymayseekfromthe RentBoardareimbursementofanyfundsthattheCity advanced.
Sec.20-52.–IntegrityandautonomyoftheRentBoard.
TheRentBoardshallbeanintegralpartofthegovernmentoftheCity,butshall exerciseitspowersanddutiesunderthischapterindependentlyfromtheCity Council, CityManager,andCityAttorney,exceptbyrequestoftheRentBoard.The RentBoard mayrequesttheservicesoftheCityAttorney,whoshallprovidethem pursuantto Section703oftheCharter.
Sec.20-53.–RentBoardlegalwork.
TheRentBoardmay,initssolediscretion,andwithoutapprovaloftheCity Council,retainprivateattorneysand/orstaffattorneystofurnishlegaladviceor representation.
Sec.20-54.–Conformingregulations.
Ifanyportionofthischapterisdeclaredinvalidorunenforceablebydecisionofa courtofcompetentjurisdictionorrenderedinvalidorunenforceablebystateor federal legislation,theRentBoardandnottheCityCouncilshallhaveauthorityto enact replacementregulationsconsistentwiththeintentandpurposeofthe invalidated provisionandapplicablelaw.Suchreplacementregulationsshall supersedeinvalidated orunenforceableprovisionsofthischaptertotheextent necessarytoresolveany inconsistency.Thesubjectmatterofsuchreplacement regulationsshallbelimitedtothe mattersaddressedinthischapter.
Sec.20-55.–Conflictofinterest.
ARentBoardmembershallnotnecessarilybedisqualifiedfromexercisingany ofhisor herpowersanddutiesonthegroundsofaconflictofinterestsolelyonthe basisofhis orherstatusasaresidentialrentalpropertyowner,propertymanager, realtor, developer,ortenant.However,aBoardmembershallbedisqualifiedfrom rulingona petitioniftheBoardmemberiseitherthelandlordofthepropertyora 34 tenantresidinginthepropertythatisinvolvedinthepetition.Theprovisionsofthe PoliticalReformAct,Cal.GovernmentCode§§87100 etseq.shallapply.
Sec.20-56.–Initialappointmentandinterimauthorityforimplementation.
EachCityCouncilmemberwhowaselectedatthesameelectionatwhichthis chapterwascreatedshallappointamembertotheinitialRentBoardpursuantto Section801(a)oftheCharterandthischapterwithinsixty(60)daysofassuming office.
EachotherCityCouncilmembershallappointamembertotheinitialRent Board pursuanttoSection801(c)oftheCharterandthischapterwithinsixty(60) daysofthe effectivedateofthischapter.Duringtheperiodoftime,ifany,fromthe effectivedateof thischapteruntiltheestablishmentoftheRentBoard,theCity Councilshallenforce thetermsofthischapter,assumingthepowersanddutiesof theRentBoardonan interimbasisandmakingavailablepublicguidancetothose affectedbyitsprovisions.
ARTICLEIX.–PETITIONSFORINDIVIDUALRENTADJUSTMENT Sec.
20-57.–Ingeneral.
Alandlordoratenantmay—inaccordancewiththestandardssetforthinthis article, andusingtheproceduressetforthinsection20-60hereinandimplementing regulations—fileapetitionwiththeRentBoardseekingadjustment,eitherupward or downward,oftherentforanygiventenancy.Apetitionshallbeonaform providedby theRentBoardand,ifmadebythelandlord,shallincludeadeclaration underpenaltyof perjurybythelandlordthatthecoveredrentalunitatissue complieswithall requirementsofthischapterandthatthelandlordisin compliancewithallrequirements ofthischapter.
Sec.20-58.–Petitionforupwardadjustment—fairreturn.
Toeffectuatethepurposesofthischapterandtherequirementsoflaw,a landlord mayfileapetitionforanupwardadjustmentoftherenttoensureafair return.Itisthe intentofthischapterthatindividualupwardadjustmentsinrentbegrantedonlywhen thelandlorddemonstratesthatsuchadjustmentsare necessarytoprovidethelandlord withafairreturn.TheRentBoardmay promulgateregulationstofurthergovern petitionsfiledpursuanttothissectionin accordancewithlawandthepurposesofthis chapter.
(a)Prerequisites.Noupwardadjustmentofrentshallbeauthorizedbya hearingofficerortheRentBoardunderthissubsectionifthelandlord:
(1)Hascontinuedtofailtocomply,afterorderoftheRentBoardorother 35 authority,withanyprovisionsofthischapterorordersorregulations issuedthereunder;or
(2)HasfailedtomaintainthecoveredrentalunitincompliancewithCal.
CivilCode§§1941.1 etseq. andCal.HealthandSafetyCode§§17920.3 and17920.10.
(b)Fairreturn.Afairreturnshallbedeterminedbyusingthemaintenanceof net operatingincome(MNOI)standardasfollows:
(1)Presumptionoffairbaseyearnetoperatingincome.Itshallbe presumed thatthenetoperatingincomereceivedbythelandlordinthe baseyear providedafairreturn.
(2)Fairreturn.Alandlordhastherighttoobtainafairreturn,whichisa net operatingincomeequaltothebaseyearnetoperatingincome adjustedby a“percentage”ofthepercentageincreaseintheannual ConsumerPrice Index(CPI)sincethebaseyear.Itshallbepresumed thatthisstandard providesafairreturn.The“percentage”shallbe 80%unlesstheRent Boardadoptsadifferent“percentage”toachieve thepurposesofthis chapter.Innoeventshallthe“percentage”be greaterthan100%. (A)TheCPIusedinallcalculationsinthisSectionshallbeAll
Items,AllUrbanConsumers,LosAngeles-LongBeach
AnaheimArea,notseasonallyadjusted,BasePeriod1982-
84=100(oranysuccessordesignationofthatindexthatmay
laterbeadopted)asreportedandpublishedbytheU.S.
DepartmentofLabor,BureauofLaborStatistics.
(3)Baseyear,typically. Forthepurposesofmakingfairreturndeterminations pursuanttothissection,unlessparagraph(b)(4)below applies,the calendaryear2019isthebaseyear.Unlessparagraph(b)(4)belowapplies, thebaseyearCPIshallbe274.114.
(4)Baseyear,subsequentpetitions.Intheeventthatadeterminationof the allowablerentismadepursuanttothissection,ifasubsequent petitionis filed,thebaseyearshallbetheyearthatwasconsideredas the“current year”inthepriorpetition.
(5) Current year.The “currentyear”shallbethecalendaryearpreceding the year in which the petition isfiled. The “current year CPI” shall be the annualCPIforthecurrentyear.
36 (6)Adjustmentofbaseyearnetoperatingincome. Landlordsortenants maypresentevidencetorebutthepresumptionthatthebaseyearnet operatingincomeprovidedafairreturn.Groundsforrebuttalofthe presumptionshallbebasedonatleastoneofthefollowing findings:
(A)Exceptionalexpensesinthebaseyear.Thelandlord’s
operatingexpensesinthebaseyearwereunusuallyhighor
lowincomparisontootheryears.Insuchinstances,
adjustmentsmaybemadeincalculatingoperatingexpensesin
orderthatthebaseyearoperatingexpensesreflectaverage
expensesforthepropertyoverareasonableperiodoftime.The
followingfactorsshallbeconsideredinmakingsucha finding:
(i)Extraordinaryamountswereexpendedfornecessary
maintenanceandrepairs.
(ii) Maintenance and repair expenditures were exceptionally low so as to cause inadequate maintenance or significant deteriorationinthequalityofservicesprovided.
(iii)Otherexpenseswereunreasonablyhighorlow
notwithstandingtheapplicationofprudentbusiness
practices.
(B)Exceptionalcircumstancesinthebaseyear.Thegrossincome duringthebaseyearwasdisproportionatelylowdueto
exceptionalcircumstances.Insuchinstances,adjustments
maybemadeincalculatingbaseyeargrossrentalincome
consistentwiththepurposesofthischapter.Thefollowing
factorsshallbeconsideredinmakingsucha finding:
(i)Whetherthegrossincomeduringthebaseyearwaslower
thanitmighthavebeenbecausesomeresidentswere
chargedreducedrent.
(ii)Whetherthegrossincomeduringthebaseyearwas
significantly lower than normal becauseofthedestruction of the premises and/or temporary eviction for construction or repairs.
(iii)Thepatternofrentincreasesintheyearspriortothe
baseyearandwhetherthoseincreasesreflected
increasesintheCPI.
37 (iv)Baseyearrentsweredisproportionatelylowin
comparisontothebaseyearrentsofotherrentalunitsin
theCity.
(v)Otherexceptionalcircumstances.
(7)Calculationofnetoperatingincome.Netoperatingincomeshallbe calculatedbysubtractingoperatingexpensesfromgrossrentalincome. (A)Grossrentalincomeshallincludegrossscheduledrental income atonehundredpercent(100%)occupancyplusallother incomeor considerationreceivedorreceivableinconnection withtheuseor occupancyoftherentalunit(s),exceptas providedin
sub-subparagraph(b)(7)(A)(ii)below.
(i)Foranyrentalunitthatwasvacantduringpartofthe
currentyear,therentforthetimeitwasvacantshallbe
calculatedonthebasisoftherentatwhichitwasnext
rentedafterthevacancy.Foranyrentalunitthatis
vacantatthetimethatgrossrentalincomeiscalculated: the
rentforthetimeithasbeenvacantshallbecalculated onthe
basisoftheaveragerentforcomparablerental
unitsonthepropertythathadvacancyincreaseswithin
thecurrentyearorthetwoyearspriortothecurrent
year;butiftherearenosuchunitsonthepropertythe
rentshallbecalculatedonthebasisoftheaveragerent
forcomparablerentalunitsinPomonathathaverecently
hadvacancyincreases.
(ii)Grossrentalincomeshallnotinclude:utilitychargesfor
sub-meteredgas,electricityorwater;chargesforrefuse
disposal,sewerserviceand/orotherservicesthatare
eitherprovidedsolelyonacostpass-throughbasisand/or
areregulatedbystateorlocallaw;chargesforlaundry
services;storagecharges.
(B)Operatingexpensesshallinclude:
(i)Reasonablecostsofoperationandmaintenance(including
propertyinsurance).
(ii)Managementexpenses.Itshallbepresumedthat
managementexpenseshaveincreasedbetweenthebase
yearandthecurrentyearbythepercentageincreasein
38 rentsortheCPI,whicheverisgreater,unlessthelevelof
managementserviceshaseitherincreasedordecreased
significantlybetweenthebaseyearandthecurrentyear.
Thispresumptionshallalsobeappliedintheeventthat
managementexpenseschangedfromownermanagement to
managementbyathirdpartyorviceversa.
(iii)Utilitycosts,exceptforautilityservicewherethe
considerationoftheincomeassociatedwiththeprovision of
theutilityserviceisregulatedbystatelawand consideration ofthecostsassociatedwiththeprovisionof theutility
serviceispreemptedbystatelaw,andexcept forautility
servicewheretheincomeassociatedwiththe provisionof
theutilityisnotincludedingrossrental incomebecauseitis
recoupedfromthetenantsonacost pass-throughbasis.
(iv)Realpropertytaxes,subjecttothelimitationthat property taxesattributabletoanassessmentinayear otherthan
thebaseyearorcurrentyearshallnotbe consideredin
calculatingbaseyearand/orcurrentyear operating
expenses.
(v)License,registration,andotherpublicfeesrequiredby lawto theextenttheseexpensesarenototherwisepaidor
reimbursedbytenants.
(vi)Landlord-performedlaborcompensatedatreasonable
hourlyrates.However,nolandlord-performedlaborshall be
includedasanoperatingexpenseunlessthelandlordsubmits
documentationshowingthedate,time,and natureofthe
workperformed.Thereshallbeamaximum allowedunder
thisprovisionof fivepercent(5%)ofgross rentalincome
unlessthelandlordshowsgreaterservices wereperformed
forthebenefitofthetenants.TheRent Boardmayadopt
regulationstoestablishthereasonable hourlyrate(s)that
willbepresumedtoapplytolandlordperformedlabor.
(vii)Reasonableattorneys’fees,expenses,and/orcosts incurred inconnectionwith:successfulgoodfaith attemptsto
recoverrentsowing;successful,goodfaith unlawful
detaineractionsnotinderogationofapplicable law;legal
worknecessaryindealingswithrespecttothe
39 normaloperationoftheproperty;andthesuccessful
pursuitofrightsunderorinrelationshiptothischapter
and/orregulationsadoptedpursuanttothischapter,
includingthepursuitofsuccessfulpetitions.
Totheextentthatincludedattorneys’fees,expenses, and/or
costsarenotannuallyreoccurringandare substantial,they
shallbeamortizedovera five-year period,unlesstheRent
Boardadoptsadifferent amortizationperiodthatit
concludesismorereasonable. Attheendofthe
amortizationperiod,therentshallbe decreasedbyany
amountitwasincreasedbecauseofthe applicationofthis
provision.
(viii)The amortized costs of capital improvements plus an interest allowance to cover the amortization of those
costs.Forpurposesofthissection,acapital
improvementshallbeanyimprovementtoarentalunitor
rentalunitsthathasausefullifeofmorethanone yearand
adirectcostperaffectedrentalunitequaltoor greaterthan
$250(unlesstheRentBoardadoptsa differentamount),
andthatmateriallyaddstothevalue oftheproperty,
appreciablyprolongsthelifeofthe rentalunit(s),oradapts
therentalunit(s)tonewuse.
Includedcapitalimprovementcostsshallbesubjectto
thefollowingconditions:
(I)Theamortizationperiodshallbeinconformance with
ascheduleadoptedbytheRentBoardunless itis
determinedthatanalternateperiodisjustified based
onevidencepresentedinahearing.Inno eventshall
theamortizationperiodbelessthan thirty-six(36)
months.Attheendofthe
amortizationperiod,therentshallbedecreasedby
anyamountitwasincreasedbecauseofthe
applicationofthisprovision.
(II)Thecostsdonotincludecostsincurredtobringthe
rentalunit(s)intocompliancewithaprovisionof the
PomonaCityCodeorstatelawwherethe
originalinstallationoftheimprovementwasnotin
compliancewiththePomonaCityCodeorstate law.
40 (III)Thecosts,lessanyinsuranceproceedsorother
applicablerecovery,areaveragedonaperunit
basisforeachrentalunitactuallybenefitedby
theimprovement.
(IV)Thecostsdonotincludeanyadditionalcosts
incurredforpropertydamageordeterioration
thatresultedfromanyunreasonabledelayin
undertakingorcompletinganyrepairor
improvement.
(ix)Aninterestallowanceonthecostofamortizedexpenses.
Theallowanceshallbethe“interestrate”onthecostof the
amortizedexpense.The“interestrate”shallbethe "average
rate"forthirty-year fixedratemortgagesplusa percentage.
Thatpercentageshallbetwopercent(2%) unlesstheRent
Boardadoptsadifferentpercentagethat itbelievesismore
reasonable.The“averagerate”shall betheratethat,asof
thedateoftheinitialsubmissionof thepetition,Freddie
Maclastpublishedinitsweekly PrimaryMortgageMarket
Survey(PMMS).Intheevent thatthisindexisnolonger
published,theRentBoardshalldesignatebyregulationan
indexwhichtheRent Boarddeemsmostcomparabletothe
PMMS,anditshall beused.
(C)Operatingexpensesshall notinclude:
(i)Mortgageprincipalorinterestpaymentsorotherdebt
servicecostsandcostsofobtaining financing.
(ii)Anypenalties,feesorinterestassessedorawardedfor
violationofanyprovisionofthischapterorofanyother
provisionoflaw.
(iii)Landleaseexpenses.
(iv)Politicalcontributionsandpaymentstoorganizations
whicharesubstantiallydevotedtolegislativelobbying
purposes.
(v)Depreciation.
41 (vi)Anyexpensesforwhichthelandlordhasbeen
reimbursedbyanyutilityrebateordiscount,security
deposit,insurancesettlement,judgmentfordamages,
settlement,oranyothermethodordevice.
(vii)Unreasonableincreasesinexpensessincethebaseyear.
(viii)Expensesassociatedwiththeprovisionofmaster
meteredgasandelectricityservices.
(ix)Expenseswhichareattributabletounreasonabledelays in performingnecessarymaintenanceorrepairworkor the
failuretocompletenecessaryreplacements.(For example,
ifaroofreplacementisunreasonablydelayed, thefullcost
oftheroofreplacementwouldbeincludedin operating
expenses,butifwaterdamageoccurredasa resultof
unreasonabledelaysinrepairingorreplacing theroof,it
wouldnotbereasonabletoincludethecostof repairingthe
waterdamage.)
(D)Adjustmentstoanoperatingexpensemaybemadeinorderto
establishanexpenseamountforthatitemwhichmost reasonably servestheobjectivesofobtainingareasonable comparisonof
baseyearandcurrentyearexpensesand determiningafairreturn.
Baseyearand/orcurrentyear operatingexpensesmaybe
averagedwithotherexpenselevels forotheryears,oramortized, oradjustedbytheCPI,or adjustedtoreflectlevelsthatarenormal forcomparable residentialrentalunits,ormayotherwisebe
adjusted.Ifthe claimedoperatingexpenselevelsareexceptionally high comparedtopriorexpenselevelsand/orindustrystandards, thelandlordshallhavetheburdenofproofofdemonstrating that theyarereasonableand/orreflectrecurringexpense levels.
Expenseswhichareexceptionalandreasonableshallbe
amortizedinordertoachievetheobjectivesofthissection.
Groundsforsuchadjustmentsinclude,butarenotlimitedto:
(i)Anexpenseitemforaparticularyearthatisnot
representative.
(ii)Thebaseyearexpenseisnotareasonableprojectionof
averagepastexpendituresforthatitemintheyears
immediatelyprecedingorfollowingthebaseyear.
42 (iii)Thecurrentyearexpenseisnotareasonableprojection of expendituresforthatiteminrecentyearsoroffuture
expendituresforthatitem.
(iv)Aparticularexpenseexceedsthenormalindustryor
othercomparablestandardforthearea.
(v)Abaseyearexpenseisexceptionallylowbyindustry
standardsand/oronaninflation-adjustedbasisis
exceptionallylowrelativetocurrentyearexpenses
althoughthelevelortypeofservicehasnotchanged
significantly.
(vi)Anincreaseinmaintenanceormanagementexpensesis
disproportionatetothepercentageincreaseintheCPI,
whilethelevelofserviceshasnotchangedsignificantly
and/orisnotjustifiedbyspecialcircumstances.
(E)Ifthelandlorddoesnothavebaseyearoperatingexpensedata, it shallbepresumedthatoperatingexpensesincreasedbythe
percentageincreaseintheCPIbetweenthebaseyearandthe
currentyear.Thispresumptionissubjecttotheexceptionthat
specificoperatingexpensesshallbeadjustedbyotheramounts
whenalternatepercentageadjustmentsaresupportedbya
preponderanceofevidence(suchasdataonchangesinthe rates
ofparticularutilitiesorlimitationsonincreasesin propertytaxes). (8)Rentincreasesforperiodsprecedingdatethatalandlordimplemented rentincreasespursuanttothissection.Intheeventthattheperiodfor determiningtheallowablerentincreasepursuanttothissection exceeds 120days,thelandlordmayrecoverincreasesthatwouldhave been permittediftherentincreasedecisionhadbeenmadewithin120 days.The allowancefortheseincreasesmaybeamortizedormaybe factoredinto theprospectiveallowableincreaseinordertoavoidundue hardshiponthe tenants.
(9)Impactofvacancydecontrolonrentincreasesbasedoncapital improvements.Ifarentalunitbecomesvacantduringthependencyof a schedulethatprovidesfortheexpirationofincreasesforcapital improvements,andtherentalunitqualifiesforavacancyincrease pursuanttoCal.CivilCode§1954.53,thecapitalimprovements schedule shallimmediatelyterminate.
43 (10)Conditionalrentincreaseforanticipated,necessarycapital improvements.Inordertoencouragenecessarycapitalimprovements, a landlordmayincludeinapetitionarequestforaconditionalrentincrease baseduponanticipatedfutureexpensesfornecessarycapital
improvements.Thepurposeofthisprocedureistopermitlandlordsto seekadvancedauthorizationforfuturerentincreasesbasedupon anticipated,necessarycapitalimprovements.Sucharequestshould only bemadeforanticipatedexpensesthatthelandlordintendsto incur duringthetwelve-monthperiodfollowingthedateofa final decisionin whichtheconditionalincreaseisgranted.Thisprocedure shallnotbe usedforanticipatedexpensesforordinaryrepairsand maintenance. (A)Iftheconditionalrentincreaseisgrantedinwholeorinpart, therentincreaseshallbepostponeduntilsuchtimeasthe
capitalimprovementsaremadeandanaddendumauthorizing
implementationoftheincreasesisissued.
(i)Noaddendumauthorizingimplementationoftheincrease
shallbeissuedunlessthecapitalimprovementsare
completedwithintwelvemonthsfromthedateofthe final
decisioninwhichtheconditionalrentincreasewas
granted,unlessthelandlordobtainsanaddendumthat
extendsthetimeperiodtocompletethecapital
improvementsforjustcause.
(B)Anyrentalunitwhichreceivedavacancyrentincrease
pursuanttoCal.CivilCode§1954.53withinthetwoyears
priortoapetitionthatincludesarequestforaconditionalrent increaseshallbeineligibleforarentincreasefortheportionof anyupwardrentadjustmentbasedonthecostofanticipated,
necessarycapitalimprovements.
(c)Limitstoannualupwardrentadjustments.Notwithstandinganyother provisions ofthissection,theRentBoardshallprotecttenantsfrom substantialrentincreases thatarenotaffordable,andthatmayforce tenantstovacatetheirhomes,resulting inconsequencescontrarytothe purposesofthischapter,namely,tomaintainthe diversityofthePomona community,topreservethepublicpeace,healthandsafety, andtoadvance thehousingpoliciesoftheCitywithregardtolow-and fixed-income persons,minorities,students,peoplewithdisabilities,andseniors.The RentBoard shallestablishregulationstolimittheannualimpactofrentincreasesallowedby thissection.Iftheamountofarentincreasegranted underthissectionexceedsthe limit,theportioninexcessshallbedeferred
44 andmaybeimplementedinsubsequentyears,alongwithanappropriate interestallowance.
(d)Relationshipofupwardindividualrentadjustmenttoannualgeneral adjustment.
Anydeterminationmadepursuanttothissectionshalltake intoaccountthe extentofanyrentincreasesbasedupontheannualgeneral adjustmentthatthe landlordmaybeimplementing,ormayotherwisebeor becomeentitledto,and theindividualrentadjustmentmaybelimitedor conditionedaccordingly.
Ifitisdeterminedthatthelandlordisnotentitledtoanindividualrent adjustment,thelandlordmayimplementrentincreasesallowedbyarticleV of thischapter.
(e)Constitutionalrighttoafairreturn.ItshallbepresumedthattheMNOI standard providesafairreturn.Noprovisionofthischaptershallbe appliedtosoasto prohibittheRentBoardfromgrantinganindividualrentadjustmentthatis demonstratedbythelandlordtobenecessarytomeet constitutionalfairreturn requirements.
(f)Effectivedateofindividualrentadjustment.Rentincreasesauthorized pursuanttothissubsectionshallbecomeeffectiveonlyafterthelandlord providesthetenantwrittennoticeofsuchrentincreasepursuanttostate law andthischapter.
Sec.20-59.–Petitionfordownwardadjustment.
(a)Failuretomaintainhabitablepremises.Failuretomaintainacovered rentalunit incompliancewithgoverninghealthandsafetyandbuilding codes,including butnotlimitedtoCal.CivilCode§§1941.1 etseq.andCal.HealthandSafety Code§§17920.3and17920.10,constitutesanincreasein rent.Atenantmay filea petitionwiththeRentBoardtoadjusttherentdownwardbasedonalossin rentalvalueattributabletothelandlord’s failuretomaintaintherentalunitin habitablecondition.Apetition filedby atenantpursuanttothissubsectionmust specifytheconditionsallegedto constitutethefailuretomaintaintherentalunit inhabitableconditionand demonstratethatthelandlordwasprovidedwith reasonablenoticeand opportunitytocorrecttheconditionsthatformthebasis forthepetition.A decisiongrantingadownwardrentadjustmentpursuantto thissubsection shallremainineffectuntiltheRentBoarddeterminesthatthe landlordhas correctedtheconditionswarrantingthedecrease.TheRentBoard shall,by regulation,establishproceduresformakingpromptcompliance determinations.
45 (b)Decreaseinhousingservicesormaintenance.Adecreaseinhousing servicesor maintenance,ordeteriorationofacoveredrentalunitbeyond ordinarywear andtear,withoutacorrespondingreductioninrent,is consideredanincrease inrent.Atenantmay fileapetitiontoadjustthe rentdownwardbasedona lossinrentalvalueattributabletoadecreasein housingservicesor maintenanceordeteriorationoftherentalunit.A petition filedbyatenant pursuanttothissubsectionmustspecifythe conditionsallegedtoconstitute deteriorationbeyondordinarywearand tear,oradecreaseinhousingservices ormaintenance,anddemonstrate thatthelandlordwasprovidedwith reasonablenoticeandopportunityto correcttheconditionsthatformthebasis forthepetition.Adecision grantingadownwardrentadjustmentpursuantto thissubsectionshall remainineffectuntiltheRentBoarddeterminesthatthe landlordhas correctedtheconditionswarrantingthedecrease.TheRentBoard shall,byregulation,establishproceduresformakingpromptcompliance determinations.
(c)Unlawfulrent.Ifalandlorddemandsorretainsrentinexcessofthelawful rent pursuanttothischapter,atenantmay fileapetitiontoadjusttherenttoits lawfullevel.Ifsuchapetitionisgranted,thelandlordshallbeordered toreturn anyexcessiverentchargedtothetenantinviolationofthis chapter.
Sec.20-60.–Proceduresforpetitions.
TheRentBoardshallpromulgateregulationsregardingproceduresforpetitions filed underthischapterandtoensurethatthoseproceduresarenotabused. petitionsshall begovernedbysuchregulationsandbytheprovisionsofthissection. (a)HearingOfficer.AhearingofficerappointedbytheRentBoardshall conduct ahearingtoactuponthepetition,andshallhavethepowerto administer oathsandaffirmations,andtorendera finaldecisiononthe meritsofthe petition,subjecttotheprovisionsofthischapter.
(b)Notice.TheRentBoardshallnotifythelandlord,ifthepetitionwas filedby a tenant,orthetenant,ifthepetitionwas filedbythelandlord,ofthe receiptof thepetition,andshallprovideacopythereof.TheRentBoardor thehearing officershallnotifyallpartiesastothetime,date,andplaceof anyhearing regardingthepetition.
(c)Prehearingnoticeanddocumentexchange.Eachpartytoapetitionshall providetoeachotherpartysufficientadvancenoticeoftherelieftheparty is seeking,theallegedgroundsforthatrelief,thedocumentstheparty intendsto present,andwitnessesthepartymaycall.Eachpartytoa
46 petitionshallalsoprovidetoeachotherparty,sufficientlyinadvanceofthe hearing,copiesofthedocumentsthatthepartyintendstopresentatthe hearing.
(d)Developingtherecord.Thehearingofficermayrequireanypartytoa petitionto provideanydocuments,books,records,orpapersdeemed pertinent.Ifthe hearingofficer findsgoodcausetobelievethatabuilding orotherinspection wouldassistinresolvingtheissuesraisedbythe petition,thehearingofficer mayconductaninspectionand/orrequestthe Citytoconductaninspection.
Thetenantmayrequestthatthehearing officerordersuchaninspectionprior tothedateofthehearing.Theparties tothehearingmaybepresentduringthe inspection.Alldocuments acquiredpursuanttothissubsectionshallbemade available,priortothe hearingifpossible,totheparties.
(e)Openhearings.Allhearingsconductedpursuanttothissectionshallbe open tothepublicunlessprohibitedbystateorfederallaw.
(f)Rightofassistance.Allpartiestoahearingconductedpursuanttothis section mayhaveassistanceinpresentingevidenceanddevelopingtheir position fromattorneys,legalworkers,tenantassociationrepresentatives, community tenantorganizationrepresentativesoranyotherpersons designatedbysaid parties.
(g)Hearingrecord.Therecordofthehearing,oranypartofone,shallbe obtainable byanypersonforthereasonablecostofcopying.Allhearings shallbeaudioor videorecorded,asorderedbythehearingofficer,andany partytothepetition mayreceiveacopyoftherecordinguponpaymentofa reasonablecost. (h)Quantumofproofandnoticeofdecision.Nopetitionforindividualrent adjustment,whetherupwardordownward,shallbegrantedunless supported byapreponderanceoftheevidence.Allpartiestoahearingshall besentacopy ofthedecisionand,atthesametime,noticeoftheirrightto appealtotheRent Boardand/ortoseekjudicialreview.Thedecisionshall include findingsoffact andlawuponwhichitisbased.
(i)Consolidation.Whethersubmittedbyalandlordortenant(s),allpetitions pertainingtocoveredrentalunitsatthesamepropertymaybeconsolidated for hearinguponashowingofgoodcause.
(j)Appeal.Anypartyaggrievedbythedecisionofthehearingofficermay appeal tothefullRentBoardforreview.Onappeal,theRentBoardshall affirm,reverse, ormodifythedecisionofthehearingofficer.Upona
47 showing of good cause, the Rent Board may hear additional testimony or receive additional evidence. The decision on appeal shall be based on the hearing record and any additional testimony or evidence received by the RentBoard.
(1)Finalityofdecision.Thedecisionofthehearingofficershallbethe final decisionoftheRentBoard,unlessanaggrievedpartyhastimely soughtan appealtotheRentBoard.ThedecisionoftheRentBoardon appealshall befinalunlessanaggrievedpartyhastimelysought judicialreview pursuanttolaw.
(k)Timefordecision.A finaldecisiononanypetitionshallbemadewithina reasonabletime.
ARTICLEX–TENANTANDCITYOPPORTUNITIESTOPURCHASE Sec.
20-61.–Tenantopportunitytopurchase;“sale”defined.
(a)Anownerofahousingaccommodationshallgivethetenantanopportunity to purchasethehousingaccommodationatapriceandtermsthatrepresent a bonafideofferofsale—
(1)beforetheownermaysellthehousingaccommodation,or
(2)unlesssubparagraph(A)applies,beforetheownermayseekto withdrawthehousingaccommodationfromtherentalmarket.
(A)ProvidedthatCal.GovernmentCode§7060 etseq. (“theEllis Act”)requiresthischaptertopermittheownertowithdrawall rental unitsofanentirepropertyfromtherentalmarket,and
providedthattimelinesundersection20-69,section20-70,or
section20-71havenotalreadycommencedwithrespecttothe
housingaccommodation,andnotwithstandinganyother
provisionofthisarticle,anownerofahousingaccommodation
shallprovideanofferofsaleconformingtosection20-63,
therebycommencingtimelinesundersection20-69,section20-
70,orsection20-71,atthesametimethattheownerinitiates
aprocedureforwithdrawingtheaccommodationsfromrentor
leaseundertheEllisActandanyregulationspassedbythe
RentBoardtoimplementit.
(B)ProvidedthattheEllisActrequiresthischaptertopermitthe ownertowithdrawallrentalunitsofanentirepropertyfrom
48 therentalmarket,nothinginthisarticleshallalterordelay theprocedureandtimelinesspecifiedintheEllisActandthe
regulationspassedbytheRentBoardtoimplementit,andthe
owner’sobligationsunderthisarticle,andatenant’sandthe City’s rightsunderthisarticle,andtherightsofanypartyin conjunction withwhomthetenantortheCityisexercising
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 unitislegallywithdrawnfromtherentalmarket.
(b)Wheneveranofferofsalethatisrequiredbysubsection(a)ofthissectionis madetotenantsforahousingaccommodationwith5ormorerentalunits,and theofferismadeintheabsenceofanarm’s-lengththird-partycontract, the followingshallapply:
(1)Thesalespricecontainedintheofferofsaleshallbelessthanorequal to apriceandothermaterialtermscomparabletothatatwhicha willing sellerandawillingbuyerwouldsellandpurchasethehousing
accommodation,ortheappraisedvalueofthehousingaccommodation as determinedbythissubsection.
(2)Anappraisedvalueshallonlybebasedonrightsanownerhasasof the dateoftheoffer,includinganyexistingrightanownermayhaveto convert thepropertytoanotheruse.
(3)Withintherestrictionsofparagraph(2)ofthissubsection,an appraised valuemaytakeintoconsiderationthehighestandbestuse ofthe property.
(4)Theownerofthehousingaccommodationshallhavetheburdenof prooftoestablishthatanofferofsaleunderthissubsectionisabona fideofferofsale.
(5)(A)Atenantorganizationregisteredaccordingtosubsection20-71(a) maychallengetheofferpresentedbyanownerofahousing
accommodationasnotbeingabona fideofferofsale,andrequesta determinationoftheappraisedvalueofthehousingaccommodation. (B)Thetenantorganizationshallrequestanappraisalby
deliveringtherequesttotheCityManagerandtheownerby
handorbycertifiedmailwithin45daysofreceiptofthe
allegedbona fideofferofsale.
(C)(i)Thetenantorganizationandownerofthehousing
49 accommodation shall jointly select an appraiser. If within 14 days after a tenant organization has requested anappraisal, the tenantorganizationandownerofthehousing
accommodationhavenotagreeduponanappraiser,either party
mayrequestthattheCityManagerselectanappraiser.
(ii)ArequestthattheCityManagerselectanappraiser shallbe inwritinganddeliveredbyhandorbycertified
mailtotheCityManagerandtotheownerortoa
memberoftheboardofthetenantorganization.
(iii)TheCityManagershallselecttheappraiseronasole source basiswithin7daysofreceivingtherequestforan appraiser.
(D)Thetenantorganizationandownerofthehousing
accommodationshallpayone-thirdandtwo-thirdsofthecost of theappraisal,respectively.
(E)(i)TheappraisershallholdanactivelicenseasaCertified
GeneralAppraiserthathasbeenissuedbytheCalifornia
BureauofRealEstateAppraisers.
(ii)Theownershallgivetheappraiserfull,unfettered
accesstotheproperty.
(iii)Theownershallrespondwithin7daystoanyrequest for
informationfromtheappraiser.
(iv)Thetenantorganizationmaygivetheappraiser
informationrelevanttothevaluationoftheproperty.
(F)Theappraisalshallbecompletedexpeditiouslyaccordingto standardindustrytimeframes.
(6)Beginningwiththedateofatenantorganizationrequestforan appraisal,andforeachdaythereafteruntilthetenantorganization receivestheappraisal,thenegotiationperioddescribedinsubsection 20-71(b)shallbeextendedbyoneday.
(7)(A)Thedeterminationoftheappraisedvalueofthehousing
accommodationinaccordancewiththissubsectionshallbecomethe sales priceofthebona fideofferofsaleforthehousingaccommodation unless:
50 (i)Theownerandthetenantorganizationagreeupona
differentsalespriceofthehousingaccommodation;or
(ii)Theownerelectstowithdrawtheofferofsalewithin14
daysofthereceiptoftheappraisalbytheowner.
(B)(i)Theownershallwithdrawtheofferofsalebydeliveringby handorbycertifiedmailaletterofwithdrawaltotheCity
Managerandamemberoftheboardofdirectorsofthetenant
organization.
(ii)Upontheelectiontowithdrawtheofferofsale,the
ownershallreimbursethetenantorganizationforits
entireshareofthecostoftheappraisalwithin14days
ofdeliverypursuanttosub-subparagraph(i)ofthis
subparagraph.
(iii)Anownerwhowithdrawsanofferofsaleinaccordance
withthissubparagraphshallbeprecludedfrommaking
asubsequentofferofsaletothetenantorganization
withoutanarm’s-lengththirdpartycontractfor3
monthsfromthedateoftheelectiontowithdrawthe
offerofsale.
(8)Within30daysofthereceiptoftheappraisalconductedbyan appraiser selectedbytheCityManagerpursuanttosubparagraph (5)(C)ofthis subsection,eitherthetenantorganizationortheownerof thehousing accommodationmaychallengetheappraisalasbeingin violationofthe requirementsofthissubsectionintheSuperiorCourt oftheStateof Californiaforthecourttotakeanyappropriateaction thecourtmaydeem necessary.
(c)Forthepurposesofthisarticle,theterms“sell”or“sale”include,butarenot limitedto,theexecutionofanyagreementpursuanttowhichtheownerof the housingaccommodationagreestosome,butnotall,ofthefollowing:
(1)Relinquishespossessionoftheproperty;
(2)Extendsanoptiontopurchasethepropertyforasumcertainatthe endoftheassignment,lease,orencumbranceandprovidesthata
portionofthepaymentsreceivedpursuanttotheagreementistobe appliedtothepurchaseprice;
51 (3)Assignsallrightsandinterestsinallcontractsthatrelatetothe property;
(4)Requiresthatthecostsofalltaxesandothergovernmentcharges assessedandleviedagainstthepropertyduringthetermofthe
agreementaretobepaidbythelesseeeitherdirectlyorthrougha surchargepaidtotheowner;
(5)Extendsanoptiontopurchaseanownershipinterestintheproperty, whichmaybeexercisedatanytimeafterexecutionoftheagreement but shallbeexercisedbeforetheexpirationoftheagreement;and
(6)Requirestheassigneeorlesseetomaintainpersonalinjuryand propertydamageliabilityinsuranceonthepropertythatnamesthe ownerastheadditionalinsured.
(d)(1)Forthepurposesofthisarticle,theterm“sell”or“sale”shallinclude:
(A)Amasterleasewhichmeetssome,butnotall,ofthefactors
describedinsubsection(c)ofthissectionorwhichissimilarin effect;and
(B)(i)Thetransferofanownershipinterestinacorporation,
partnership,limitedliabilitycompany,association,trust,or otherentitywhichownsahousingaccommodationasitssole or
principalasset,which,ineffect,resultsinthetransferofthe housingaccommodationpursuanttosubsection(a)ofthis
section.
(ii)Forthepurposesofsub-subparagraph(i)ofthis
subparagraph,theterm“principalasset”meansthe
valueofthehousingaccommodationrelativetothe
entity’sotherholdings.
(2)Forthepurposesofthisarticle,andnotwithstandinganythingtothe contraryherein,theterm“sell”or“sale”shallnotinclude:
(A)(i)Atransfer,eventhoughforconsideration,byadecedent’s estatetomembersofthedecedent’sfamilyiftheconsideration
arisingfromthetransferwillpassfromthedecedent’sestate to, orsolelyforthebenefitof,charity.
(ii)Forpurposesofsub-subparagraph(i)ofthis
subparagraph,theterm“membersofthedecedent’s
52 family”means:
(I) A surviving spouse, or domestic partner pursuant to Division 2.5 of the Cal.FamilyCode(beginning with
§297),ofthedecedent,linealdescendantsof
thedecedent,orspousesoflinealdescendantsof
thedecedent;
(II)Atrustfortheprimarybenefitofthepersons
referredtoinsub-sub-subparagraph(I)ofthissub
subparagraph;and
(III)Apartnership,corporation,orotherentity
controlledbytheindividualsreferredtoinsub
sub-subparagraphs(I)and(II)ofthissub
subparagraph;
(B)Aninter-vivostransfer,eventhoughforconsideration, between spouses,parentandchild,siblings,grandparentand grandchild, ordomesticpartnerspursuanttoDivision2.5of theCal.Family Code(beginningwith§297);
(C)Atransferoflegaltitleoraninterestinanentityholdinglegal title toahousingaccommodationpursuanttoabona fidedeed oftrust
ormortgage,andthereafteranytransferbyforeclosure saleor deedinlieuofforeclosurepursuanttoabona fidedeed oftrustor mortgage;
(D)Ataxsaleortransferpursuanttotaxforeclosure;
(E)Abankruptcysale;
(F)Anytransactioninvolvinghousingaccommodationsotherwise subjectheretoexpresslycontemplatedbyaregistration
statementfiledwiththeSecuritiesandExchangeCommission
priortothedatethischapteriscreated;
(G)Anytransferofapropertydirectlycausedbyachangeinthe
formoftheentityowningtheproperty;provided,thatthe
transferiswithoutconsideration,includingatransferof
interestsinanentitytoanentityunderCal.Corporations Code §1158,§15911.09,§16909,or§17710.09;
(H)Thetransferofinterestsinapartnershiporlimitedliability 53 companythatownsahousingaccommodationasitssoleor
principalasset;provided,thatthesolepurposeofthetransfer is toadmitoneormorelimitedpartnersorinvestormembers who
willmakecapitalcontributionsandreceivetaxbenefits
pursuanttosection42oftheUnitedStatesInternalRevenue
Code(26U.S.C.§42),oracomparableStateofCalifornia,
CountyofLosAngeles,orCityofPomonaprogram;
(I)Atransferoftitletothehousingaccommodationtoanentity
underCal.CorporationsCode§1158,§15911.09,§16909,or§
17710.09;
(J)Atransferofbarelegaltitleintoarevocabletrust,without actualconsiderationforthetransfer,wherethetransferoris
thecurrentbeneficiaryofthetrust;
(K)Atransferofthehousingaccommodationtoanamed
beneficiaryofarevocabletrustbyreasonofthedeathofthe
grantoroftherevocabletrust;
(L)Atransferofthehousingaccommodationbythetrusteeofa
revocabletrustifthetransferwouldotherwisebeexempt
underthisparagraphifmadebythegrantoroftherevocable
trust;
(M)Atransferpursuanttocourtorderorcourt-approved
settlement;and
(N)Atransferbyeminentdomainorunderthreatofeminent
domain.
(3)TheCityCouncilshalladdorremoveanexemption(orexemptions) fromparagraph(2)ofthissubsectionifnecessarytoconformthis articletoCaliforniastatelaw.
(4)Anownerwhoisuncertainastotheapplicabilityofthisarticleshallbe deemedtobeanaggrievedpartyforthepurposesofseekingrelief under section20-74.Thetenantortenantorganizationinsuchahousing accommodationshallbedeemedtobeanaggrievedparty,for these purposes.
(e)(1)(A)Inadditiontoanyothernoticerequiredbythisarticle,ifan opportunity topurchaseisnotprovidedunderthissection,theownershall provideeach tenantandtheCityManagerwrittennotice(“Noticeof
54 Transfer”)ofthetransferofaninterestinahousingaccommodationorofany ownershipinterestinacorporation,partnership,limitedliabilitycompany, association,trust,orotherentitywhichownsahousingaccommodation. (B)Notwithstandinganyotherprovisioninthisarticle,anowner shall notberequiredto fileaNoticeofTransferforatransfer exempt undersubparagraphs(d)(2)(A),(C),(D),(E),(F),(I),(J), (K),(L), (M),or(N)ofthissection;provided,thatanoticeof thetransfer (“NoticeofTransferPursuanttoanExemption”) shallbe filedwith theCityManagerinaformprescribedby theCityManager.
(2)TheNoticeofTransfershallbesentbyregisteredorcertifiedmail, return receiptrequested,bycommercialovernightdeliveryservicethat maintains proofofdelivery,orbypersonalservice,atleast90days priortothe proposeddateoftransfer.Noticetotenantsshallbesentto theiraddressat thehousingaccommodationunlessatenanthas suppliedinwritingtothe owneradifferentaddressfornotice.
(3)(A)TheNoticeofTransfershallbesubstantiallyintheformprescribed by theCityManagerandshallprovide,ataminimum,astatementof the tenantortenantorganization’srightsunderthischapter,an accurate descriptionofthetransfercontainingallmaterialfacts,the dateofthe proposedtransfer,andthereason,ifany,whytheowner assertsthe transfermaynotconstituteasale.
(B)Inadditiontoanyotherrequirementsfortheformofthe Notice ofTransferprescribedpursuanttosubparagraph(A)of this
paragraph,aNoticeofTransferforahousing
accommodationtobetransferredforthepurposesofreceiving
taxbenefitspursuanttosection42oftheUnitedStates
InternalRevenueCode(26U.S.C.§42),oracomparableState of
California,CountyofLosAngeles,orCityofPomona
program,shallincludeadescriptionofeachapplicablefederal, state,countyorcitysubsidy,andadescriptionofthestepsin the transactionemployedbythedevelopertoavailitselfof each
subsidy.
(4) The owner’s failure to provide the NoticeofTransfer,ortheprovision of a notice that is fraudulent or contains material misrepresentations or material omissions, shall create a rebuttable presumption that the transferconstitutesasaleforpurposesofthisarticle.
(5)(A)Anaggrievedtenantortenantorganizationdulyorganizedunder 55 section20-71(a)andmeetingpursuanttoitsbylaws,whichevershall be applicable,may,within45daysoftheCityManager’sreceiptofthe Notice ofTransfer, fileanoticeindicatinganintentto fileapetitionfor relief pursuanttosection20-74(“NoticeofIntenttoFilePetition”). (B)ANoticeofIntenttoFilePetitionshallbedeliveredby registered orcertifiedmail,returnreceiptrequested,by commercial
overnightdeliveryservicethatmaintainsproofof delivery,orby personalservicetotheCityManagerand simultaneouslytothe
owner.Theowner’saddressshallbethat setforthintheNoticeof Transfer.
(C)Failureofanaggrievedtenantortenantorganizationto file timelytheNoticeofIntenttoFilePetitionshallprecludethe
tenantortenantorganizationfromassertinganyrightsunder this articlerelatingtothetransferidentifiedintheNoticeof Transfer. (6)Atenantortenantorganizationshallhave30daysfromthereceiptby the CityManageroftheNoticeofIntenttoFilePetitionto filea petitionforrelief undersection20-74.Acopyofthepetitionshallbe deliveredtotheownerby registeredorcertifiedmail,returnreceipt requested,orbypersonalservice.
Failureofatenantortenant organizationto filetimelythepetitionforrelief shallprecludethe tenantortenantorganizationfromassertinganyrights underthis articlerelatingtothetransferidentifiedintheNoticeofTransfer. (7)(A)Notwithstandingthetimerequirementsfornoticeinsubparagraph (e)(5)(A)ofthissection,anaggrievedtenantortenantorganization, whichevershallbeapplicable,may,within30daysoftheCity Manager’s receiptoftheNoticeofTransferPursuanttoanExemption pursuanttoan exemptioninsubparagraph(e)(1)(B)ofthissection, file aNoticeofIntent toFilePetition.
(B)(i)Failureofatenantortenantorganization,pursuantto
subparagraph(7)(A)ofthissubsection,to filetimelytheNotice of IntenttoFilePetitionshallprecludethetenantortenant
organizationfromassertinganyrightsunderthisarticlerelatingto thetransferidentifiedintheNoticeofTransfer Pursuanttoan
Exemption.
(ii)Atenantortenantorganizationshallbeprecludedfrom
assertinganyrightsunderthisarticleforatransfer
exemptundersubparagraph(d)(2)(C)ofthissection.
56 (C)Anychangeinthecircumstancesoftransferorinthetransfer agreementthatwouldinvalidateaclaimofexemptionshallbe
immediatelyreportedinwritingtotheCityManagerand
propernoticeshallbeimmediatelyprovidedtothetenantor
tenantorganization.
(8)Forthepurposesofprovidingnoticeunderthissubsection,theterm “tenant”shallmeanthepersonorpersonswho,underthetermsofthe leaseoranyamendmentorconsentexecutedpursuantthereto,are entitledtooccupytherentalunit.
(9)(A)Within5daysofrequestbyanyperson,theCityManagershall provide:
(i)Writtencertifications,includingdateofreceiptornon
receipt,ofanynoticesreceivedunderthisarticle;and
(ii)Copiesofthenotices.
Sec.20-62.–Registrationofatenantorganization.
Inahousingaccommodationof5ormoreunits,thetenantsmayformand register thetenantorganizationwiththeCityManager,pursuanttosubsection20-71(a),atany time;provided,thatthissectionshallnotbeconstruedtoalterthe timeperiodswithin whichatenantorganizationmayexercisetherightsaffordedby thisarticle.Atenant organizationmay fileapetitionforreliefpursuanttosection 20-74.
Sec.20-63.–Offerofsale.
Theownershallprovideeachtenantawrittencopyoftheofferofsaleby certified mailandpostacopyoftheofferofsaleinaconspicuousplaceincommon areasofthe housingaccommodationifitconsistsofmorethanonerentalunit.The ownershall providetheCityManagerwithawrittencopyoftheofferofsaleby certifiedmailorin person.TheownershallcertifytotheCityManagerthatthe CityManagerandeach tenantwereprovidedcopiesoftheofferofsaleonthesame day. Within4businessdays ofreceivingacopyofanofferofsale,theCityManager shallexerciseitsbesteffortsto contactallaffectedtenantsandprovidethemwith thecontactinformationof organizationsthatprovidetenantsadviceconcerning theirrightsunderthisarticle.
Anofferincludes,ataminimum:
57 (a)Theaskingpriceandmaterialtermsofthesale;
(b)Astatementthatthetenanthastherighttopurchasethehousing accommodation underthisarticleandasummaryoftenantrights,available sourcesoftechnical assistance,andalistoforganizationsfromwhichthe tenantmayseekhelpto exercisetherighttopurchaseaspublishedbythe CityManagerpursuantto paragraph20-74(a)(4);provided,however,thatif nosuchsummaryhasbeen published,theownerwillbedeemedin compliancewiththissubsection; (c)Astatementastowhetheracontractwithathirdpartyexistsforsaleofthe accommodationandthattheownershallmakeacopyofanysuchcontract available tothetenantwithin7daysafterreceivingarequest;and
(d)Astatementthattheownershallmakeavailabletothetenanta floorplan ofthe buildingandanitemizedlistofmonthlyoperatingexpenses,utility consumptionrates,andcapitalexpendituresforeachofthe2preceding calendaryearswithin7daysafterreceivingarequest.Thestatementshall also indicatethattheownershall,atthesametime,makeavailablethe mostrecent rentroll,listoftenants,andlistofvacantapartments.Ifthe ownerdoesnot havea floorplan,theownermaymeettherequirementto providea floorplan bystatinginwritingtothetenantthattheownerdoes nothavea floorplan.
Sec.20-64.–Thirdpartyrights.
Therightofathirdpartytopurchaseanaccommodationisconditionalupon exerciseoftenantrightsunderthisarticle.Thetimeperiodsfornegotiationofa contractofsaleandforsettlementunderthisarticleareminimumperiods,andthe ownermayaffordthetenantsareasonableextensionofsuchperiod,without liability underathirdpartycontract.Thirdpartypurchasersarepresumedtoact withfull knowledgeoftenantrightsandpublicpolicyunderthisarticle.
Sec.20-65.–Contractnegotiation.
(a)Bargainingingoodfaith.Thetenantandownershallbargainingoodfaith. The followingconstituteprimafacieevidenceofbargainingwithoutgood faith:
(1)Thefailureofanownertoofferthetenantapriceortermatleastas favorableasthatofferedtoathirdpartywithintheperiodsspecifiedin subsection20-69(g),subsection20-70(d)orsubsection20-71(d),as applicable,withoutareasonablejustificationforfailingtodoso; 58 (2)Thefailureofanownertomakeacontractwiththetenantwhich substantiallyconformswiththepriceandtermsofathirdparty
contractwithinthetimeperiodsspecifiedinsubsection20-69(g), subsection20-70(d)orsubsection20-71(d),asapplicable,withouta reasonablejustificationforfailingtodoso;or
(3)Theintentionalfailureofatenantoranownertocomplywiththe provisionsofthisarticle.
(b)Reducedprice. Iftheownersellsorcontractstosellthehousing accommodationtoathirdpartyforapricemorethan10%lessthanthe priceofferedtothetenantorforothertermswhichwouldconstitute bargainingwithoutgoodfaith,theownershallcomplyanewwithall requirementsofsections20-69,20-70,and20-71,asapplicable. (c)Financialassurances. Theownershallnotrequirethetenanttoprove financial abilitytoperformasaprerequisitetoenteringintoacontract.The ownershall notrequirethetenanttopaythepurchasepriceininstallments unlesstheowner providesdeferredpurchasemoney financingonterms reasonablyacceptableto thetenant.Theownermayrequirethetenantto provethatthetenant,either aloneorinconjunctionwithathirdparty,has comparable financialabilitytothe third-partycontractorbeforetheowner willberequiredtograntdeferred purchasemoney financingtothetenant onthesametermsandconditions agreedbetweentheownerandthethirdpartycontractor.Ifthetenantcanprove comparablefinancialabilityalone, theownershallnotrequirethetenantto secureathird-partyguarantor. Thisproofcannotberequiredasaprerequisiteto contracting.Itmaybe requiredonlyasaprerequisitetotheownergranting deferredpurchase money financingatsettlement.
(d)Transfersofinterestinapartnershiporcorporationandmasterleases. In the eventofatransferofinterestinapartnershiporcorporationorinthe eventof amasterleaseoragreementthatisconsideredasalewithinthe meaningof section20-61,butwhichdoesnotinvolveatransferofrecord titletothereal property,theownershallbebargainingingoodfaithifthe owneroffersthe tenanttheopportunitytoacquirerecordtitletothereal propertyoroffersthe tenanttheopportunitytomatchthetypeoftransfer oragreemententeredinto withthethirdparty.Withrespecttoeithertype ofoffer,allprovisionsofthis articleapply.
(e)Deposit.Theownershallnotrequirethetenanttopayadepositofmore than5% ofthecontractsalespriceinordertomakeacontract.Thedeposit is refundableintheeventofagoodfaithfailureofthetenanttoperform under thecontract.
59 Sec.20-66.–Exerciseorassignmentofrights.
Thetenantmayexerciserightsunderthisarticleinconjunctionwithathird partyor byassigningorsellingthoserightstoanyparty,whetherprivateor governmental.The exercise,assignment,orsaleoftenantrightsmaybeforany considerationwhichthe tenant,inthetenant’ssolediscretion, findsacceptable. Suchanexercise,assignment,or salemayoccuratanytimeintheprocessprovided inthisarticleandmaybestructured inanywaythetenant,inthetenant’ssole discretion, findsacceptable.
Sec.20-67.–Waiverofrights.
Anownershallnotrequest,andatenantmaynotgrant,awaiveroftherightto receiveanofferofsaleunderthisarticle.Anownershallnotrequirewaiverofany other rightunderthisarticleexceptinexchangeforconsiderationwhichthetenant, inthe tenant’ssolediscretion, findsacceptable.
Sec.20-68.–Rightof firstrefusal.
Inadditiontoanyandallotherrightsspecifiedinthisarticle,atenantortenant organizationshallalsohavetherightof firstrefusalduringthe15daysafterthe tenantor tenantorganizationhasreceivedfromtheowneravalidsalescontractto purchasebya thirdparty.Ifthecontractisreceivedduringthenegotiationperiod pursuantto subsection20-69(b),subsection20-70(b),orsubsection20-71(b),the15-dayperiodwill begintorunattheendofthenegotiationperiod.Inexercisingrights pursuanttothis section,allrightsspecifiedinthisarticleshallapplyexceptthe minimumnegotiation periodsspecifiedinsubsection20-69(b),subsection20-70(b), andsubsection20-71(b).
Sec.20-69.–Single-familyaccommodations.
Thefollowingprovisionsapplytosingle-familyaccommodations. (a)Writtenstatementofinterest.
(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)Thetenant’sstatementofinterestshallbeaclearexpressionof interest onthepartofthetenanttoexercisetherighttopurchasethe housing accommodationasspecifiedinthisarticle.
60 (3)Atenant’sfailuretodeliverawrittenstatementofinteresttothe ownerinatimelymannershallbedeemedawaiverofthetenant’s
rightsunderthissection.
(b)Negotiationperiod.Ifatenanthasdeliveredawrittenstatementofinterest in accordancewithsubsection(a)ofthissection,theownershallaffordthe tenant atleast25daysafterdeliveryofthestatementofinteresttothe ownerto negotiateacontractofsale,notincludingthe20daysprovidedby subsection (a)ofthissection.Foreverydayofdelaybytheownerin providinginformation asrequiredbythisarticle,thenegotiationperiodis extendedbyoneday. (c)Timebeforesettlement.
(1)Theownershallaffordthetenantatleast45daysafterthedateof contractingtosecure financingand financialassistanceandtogoto settlement.
(2)If,within45daysafterthedateofcontracting,thetenantpresentsthe ownerwiththewrittendecisionofalendinginstitutionoragencythat statesthattheinstitutionoragencyestimatesthatadecisionwith respect tofinancingor financialassistancewillbemadewithin75days afterthe dateofcontracting,theownershallaffordanextensionof timeconsistent withthewrittenestimate.
(d)Assignmentofrights.
(1)Theonlyconsiderationatenantmayreceiveforthesaleorassignment of thetenant’srightsunderthisarticleistherighttoimmediatelyuse and occupythetenant’sunitforaperiodof12monthsfollowingthe saleofthe single-familyaccommodationattherateofrentchargedto thetenantasof thedateoftheofferofsale.
(2)(A)Ifatenantassignsorsellsthetenant’srightsunderthisarticle,the recipientmayonlyfurtherreassigntherightstoaprivateornonprofit corporationorapartnershipofwhichtheassigneeorbuyerisan owner, managingmember,orofficerwhocanlegallybindtheentity.
(B)Noconsiderationshallbeallowedinexchangeforasecondary assignment.
(3)Abargaininwhichthetenantreceivesconsiderationtovacatethe tenant’sunitbeforethe12-monthperiodendssothattheownermay useor occupytheunitshallconstituteawillfulviolationofthis
61 subsection.
(e)Documentation.
(1)Adocumentdeliveredpursuanttothissectionshallbedeliveredby:
(A)First-classmail;
(B)Adeliveryserviceprovidingdeliverytrackingconfirmation; (C)Certifiedmail;or
(D)Hand.
(2)Within10daysoftheinitiationofdelivery,copiesofalldocuments deliveredtoatenantorownerpursuanttothissectionshallbe
deliveredtotheCityManagerwithwrittenevidenceofthedateof deliveryoftheoriginaldocument.
(A)TheCityManagershalldatestampcopiesofalldocuments
receivedpursuanttothissubsection.
(B)Upontherequestofoneofthefollowingparties,theCity
Managershallprovidewrittenconfirmationofreceiptornon
receiptofanydocumentrequiredtobedeliveredtotheCity
Managerpursuanttothissubsectiontotherequestingparty:(i) Owner;
(ii)Tenant;
(iii)Atitleorsettlementcompanythatisconductinga
closingonthetransferofownershipofthesingle-family
accommodation;or
(iv)Arealestateagentrepresentingtheownerinthesaleof the single-familyaccommodation.
(f)Notenantwhooccupiesarentalunitpursuanttosubsection(d)ofthis sectionmaybeevictedpursuanttosubsection20-8(h)or(j)duringthe12- monthperiodofoccupancyfollowingthesaleofthesingle-family accommodation.
(g)Lapseoftime. If180dayselapsefromthedateofavalidofferunderthis 62 articleandtheownerhasnotsoldorcontractedforthesaleofthehousing accommodation,theownershallcomplyanewwiththetermsofthisarticle.
Sec.20-70.–Housingaccommodationswith2through4rentalunits.
Thefollowingprovisionsapplytoaccommodationswith2through4rentalunits, otherthansingle-familyaccommodationswithmorethan1unit:
(a)Jointandseveralresponse. Thetenantsmayrespondtoanowner’soffer first jointly,thenseverally.Uponreceiptofawrittenofferofsalefromthe ownerthat includesadescriptionofthetenant’srightsandobligations underthisarticle,or upontheCityManager’sreceiptofacopyofthe writtenofferofsale,whichever islater,agroupoftenantsactingjointly shallhave15daystoprovidetheowner andtheCityManager,byhandor bysendingbycertifiedmail,withawritten statementofinterest.Following thattimeperiod,ifthetenantsactingjointly havefailedtosubmitawritten statementofinterest,anindividualtenantshall have7daystoprovidea statementofinteresttotheownerandtheCity Manager,byhandorby sendingbycertifiedmail,.Eachstatementofinterest mustbeclear expressionofinterestonthepartofthetenantortenantgroupto exercise therighttopurchaseasspecifiedinthisarticle;
(b)Negotiationperiod.
(1)Uponreceiptofaletterofintentfromatenantoratenantgroup,the ownershallaffordthetenantsareasonableperiodtonegotiatea contract ofsale,andshallnotrequirelessthan90days.Foreveryday ofdelayby theownerinprovidinginformationasrequiredbythis article,the negotiationperiodisextendedby1day.Ifmorethan1 individualtenant submitsawrittenstatementofinterest,theowner shallnegotiatewith eachtenantseparately,orjointlyifthetenants agreetonegotiatejointly; (2)If,attheendofthe90-dayperiodoranyextensionsthereof,the tenants jointlyhavenotcontractedwiththeowner,theownershall providean additional30-dayperiod,duringwhichany1ofthecurrent tenantsmay contractwiththeownerforthepurchaseofthe
accommodation;
(3)Iftheownerisrequiredtonegotiatewithmorethanonetenant pursuant tothissection,theownermaydecidewhichcontractismore favorable withoutliabilitytotheothertenants.
(c)Timebeforesettlement. Theownershallaffordthetenantareasonable 63 periodpriortosettlementinordertosecure financingand financial assistance,andshallnotrequirelessthan90daysafterthedateof contracting.Ifalendinginstitutionoragencyestimatesinwritingthata decisionwithrespectto financingor financialassistancewillbemade within 120daysafterthedateofcontracting,theownershallaffordan extensionof timeconsistentwiththatwrittenestimate;
(d)Lapseoftime. If240dayselapsefromthedateofavalidofferunderthis article andtheownerhasnotsoldorcontractedforthesaleofthe accommodation,the ownershallcomplyanewwiththetermsofthisarticle.
Sec.20-71.–Housingaccommodationswith5ormorerentalunits. Thefollowing provisionsapplytoaccommodationswith5ormorerentalunits:
(a)Tenantorganization. Inordertomakeacontractofsalewithanowner,the tenantsshall:(1)formatenantorganizationwiththelegalcapacitytohold real property,electofficers,andadoptbylaws,unlesssuchatenant organization existsinaformdesiredbythetenants;(2) filearticlesof incorporation;and(3) deliveranapplicationforregistrationtotheCity Managerandtheownerby handorbycertifiedmailwithin45daysof receiptofavalidofferortheCity Manager’sreceiptofacopyofavalid offer,whicheverislater.If,atthetimeof receiptofthevalidoffer,atenant organizationexistsinaformdesiredbythe tenants,thedeliveryofthe applicationforregistrationtotheCityManagerand theownerbyhandor bycertifiedmailshallbewithin30daysofreceiptofa validofferorthe Mayor’sreceiptofavalidoffer,whicheverislater.The applicationshall includethename,address,andphonenumberoftenant officersandlegal counsel(ifany);acopyofthearticlesofincorporation,as filed;acopyofthe bylaws;documentationthattheorganizationrepresentsat leastamajority oftheoccupiedrentalunitsasofthetimeofregistrationand suchother reasonableinformationastheCityManagermayrequire.Upon registration,theorganizationconstitutesthesolerepresentativeofthe tenants, andthepriorofferofsaleisdeemedanoffertotheorganization; (b)Negotiationperiod. Theownershallaffordthetenantorganizationa reasonable periodtonegotiateacontractofsale,andshallnotrequireless than120days fromthedateofreceiptofthestatementofregistration.For everydayofdelay bytheownerinprovidinginformationasrequiredbythis article,thenegotiation periodisextendedby1day;
(c)Timebeforesettlement.
(1)Theownershallaffordthetenantorganizationareasonableperiod 64 priortosettlementinordertosecure financingand financial assistance,andshallnotrequirelessthan120daysafterthedateof contracting.Ifalendinginstitutionoragencyestimatesinwritingthat a decisionwithrespectto financingor financialassistancewillbe made within240daysafterthedateofcontracting,theownershall affordan extensionoftimeconsistentwiththatwrittenestimate;
(2)Ifthetenantorganizationarticlesofincorporationprovide,bythedate of contracting,thatthepurposeofthetenantorganizationistoconvert the housingaccommodationtoanonprofithousingcooperativewith appreciation ofsharevaluelimitedtoamaximumoftheannualrateof inflation,theowner shallrequirenotlessthan180daysafterthedate ofcontractingorsuch additionaltimeasrequiredbythissection;
(d)Lapseoftime. Ifoneyearelapsesfromthedateofavalidofferunderthis article andtheownerhasnotsoldorcontractedforthesaleofthehousing accommodation,orinthecaseofanofferofsalegivenpursuantto paragraph 20-61(a)(2)forthepurposesofseekingtowithdrawthehousing
accommodationfromtherentalmarket,hasnotinitiatedthatprocedure, the ownershallcomplyanewwiththetermsofthisarticle;provided,thatif the negotiationperiodhasbeenextendedpursuanttoparagraph20-61(b)(6),the oneyearlimitdescribedinthissubsectionmaybeextendedby onedayforeach dayoftheextension.
Sec.20-72.–Coverageofarticle.
Thisarticleappliestoanysaleofahousingaccommodationforwhichacontract is notfullyratifiedpriortothedateuponwhichthischapteriscreated.
Sec.20-73.–City’sopportunitytopurchase.
(a)City’sopportunitytopurchasecertainhousingaccommodations. (1)Beforeanownerofahousingaccommodationmaysellahousing
accommodationcomprisedof5ormoreunits,theownershallprovide to theCityanopportunitytopurchasethehousingaccommodationin the samemanner,exceptasotherwiseprovidedbythissection,asthe opportunitytopurchaseisprovidedtoatenantunderthisarticle. (2)Noprovisionofthissectionshallabrogatetherightsoftenantsor tenantorganizationsunderthisarticle.
(3)TheCitymayassigntheopportunitytopurchaseprovidedunderthis sectiontoapersonthat:
65 (A)Demonstratesthecapacitytoownandmanage,eitherbyitself or throughamanagementagent,thehousingaccommodation and
relatedfacilitiesfortheremainingusefullifeofthe
housingaccommodation;and
(B)Agreestoobligateitselfandanysuccessorsininteresttoall limitationsdescribedinsubsections(b)and(c).
(4)TheCityshallhavethesameremediesandrightstoenforceowner compliancewiththischapterasatenantortenantorganizationwould haveagainstanownerforviolationofthisarticle.
(b)LimitationsontheCity’sopportunitytopurchase.
(1)TheCity’sopportunitytopurchaseshallbesubordinatetotherightof a tenant.
(2)ToexercisetheCity’srightunderthissubchapter,theCityManager, havingtheapprovaloftheCityCounciltodoso,shallprovidea written statementofinteresttotheownerandtenantwithin60days oftheCity Manager’sreceiptofthecopyofofferofsalerequiredby section20-63. (3)TheCityshallnotexercisetheopportunitytopurchaseprovidedby thissectionunlessatleast25%oftherentalunitsinthehousing accommodationareaffordableunits.
(A)Forthepurposesofthisparagraph,theterm“affordableunit” meansarentalunitinahousingaccommodationforwhichthe
existingmonthlyrentpaidbythetenantisequaltoorless
than30%ofonetwelfth(1/12)ofthecurrentVeryLowIncome
Limitcorrespondingtothenumberofpersonsinthetenant
family,establishedbytheUnitedStatesDepartmentof
HousingandUrbanDevelopment(“HUD”)fortheareathat
includestheCityofPomona.
(c)LimitationsontheCityaspurchaserofahousingaccommodation. (1)IftheCitypurchasesahousingaccommodationpursuanttothis section,theCityshallremainsubjecttoallprovisionsofthischapteras ownerofthehousingaccommodation.
(2)(A)TheCityshallmaintainaffordablerentsinthehousing
66 accommodationsothatunitrentsfortenantslivinginthehousing accommodationonthedatethattheofferofsalewasissuedwillnotbe greaterthantheunitrentonthedateoftheofferofsaleor30%ofan existingtenant’shouseholdincome,whicheverisless.
(B)Forthepurposesofthissubsection,householdincomeshallbe calculatedpursuantto24C.F.R.§5.609.
(C)tenantsshallbenotifiedinwritingastothemannerinwhich the Citycalculateshouseholdincomeandrent.
(D)TheRentBoardshallconsiderachallengetoarentamountor
incomecalculationuponapetition filedbyatenant.The petition shallbeheardanddeterminedaccordingtosection20-60.
(E)Notwithstandingtherentamountsestablishedpursuantto this section,noranyotherlaw,notenantinanaffordableunit
establishedpursuanttothissectionshallberequiredtopaya rent increaseofmorethan5%peryear.
(F)Incomerestrictionsmaybeimposeduponthehousing
accommodationbytheCity;provided,thatanexistingtenant
shallbeexemptfromanyincomerestrictions.
(3)(A)TotheextentthattheCostaHawkinsRentalHousingAct(Cal. Civil Code§1954.52 etseq.)doesnotpreventcompliancewiththis
subparagraph,theCityshallmaintainanyunitinthehousing
accommodationthatwasanaffordableunit,asdefinedinsubparagraph (b)(3)(A),onthedatethattheofferofsalewasissuedas affordableforas longasthehousingaccommodationremainsa housingaccommodation ownedbytheCity.
(B)Foranyrentalunitthatbecomesvacant,totheextentthatthe CostaHawkinsRentalHousingAct(Cal.CivilCode§1954.52 etseq.) doesnotpreventcompliancewiththissubparagraph:
(i)Ifthemonthlyrentpaidbythetenantwasequaltoor less
than30%ofonetwelfth(1/12)ofthecurrent60%
Income Limit corresponding to the number of persons in
the tenant family, established by HUD for the area that includestheCityofPomona,thatunitshallremain
affordableforatenantwithanincomeatorbelowthe
HUD60%IncomeLimits;or
67 (ii)Ifthemonthlyrentpaidbythetenantwasequaltoor
lessthan30%ofonetwelfth(1/12)ofthecurrent
ExtremelyLowIncomeLimitcorrespondingtothe
numberofpersonsinthetenantfamily,establishedby
HUDfortheareathatincludestheCityofPomona,that
unitshallremainaffordableforatenantwithanincome
atorbelowtheHUDExtremelyLowIncomeLimits.
(C)TotheextentthattheCostaHawkinsRentalHousingAct (Cal.
CivilCode§1954.52 etseq.)doesnotpreventcompliance with
thissubparagraph,vacanciesinaffordableunitsshallbe filledand maintainedsothatthedivisionofaffordableunitsin thehousing accommodationisnolessthanone-third
affordableforhouseholdswithincomesatHUDExtremely
LowIncomeLimitsfortheareathatincludesPomona,one
thirdaffordableforhouseholdswithincomesatHUD60%
IncomeLimitsfortheareathatincludesPomona,andone
thirdaffordableforhouseholdswithincomesatHUDLow
IncomeLimitsfortheareathatincludesPomona.
(4)Ifanyunitinthehousingaccommodationwasnotanaffordableunit as definedinsubparagraph(b)(3)(A)ofthissection,onthedatethe offerof salewasissued,theCityshalldevelopanaffordabilityplanto exploreall meanswherebythenumberofaffordableunitsinthe housing
accommodationmaybeincreased.TheCityshalltakeall practicable stepstoincreasethenumberofaffordableunitsinthe housing
accommodation.
(d)ProcedureforCitytoeffectuatepurchase.
(1)TheCity,representedbytheCityCouncilandassistedbytheCity Manager underthedirectionoftheCityCouncil,shallhavenotless than150days fromthedateoftheowner’sreceiptoftheCity’swritten statementof interest,issuedpursuanttoparagraph(b)(2)ofthis section,tonegotiatea contractforsalethatissubjecttoapprovalby theCityCouncil. (2)Foreverydayofdelaybytheownerinprovidinginformationas required bythisarticle,thenegotiationperiodshallbeextendedbyone day. (3)Ifatenantorganizationisformedanddeliversanapplicationfor registrationtotheCityManagerpursuanttosubsection20-71(a),the 68 Cityshallhave15days,inadditiontothetimeprovidedforin paragraph (d)(1)ofthissubsection,tonegotiateacontractforsalethat issubjectto approvalbytheCityCouncil.
(4)TheCityshallhaveupto90daysafterthedateofexecutionofa contractforsalethatissubjecttoapprovalbytheCityCouncilto obtaintheCityCouncil’sapprovalofthecontractandcomplete
settlement.
(5)Iftheownerprovidesanyextensionoftimetoatenantunderthis article, theCityshallautomaticallyreceivethesameextensionoftime. Theowner shallprovidewrittennotificationtotheCityManagerof anyextensionsof timeprovidedtothetenant.
Sec.20-74.–Implementationandenforcement.
(a)TheCityManagershalldesignateapersontobetheTenantandCity OpportunitiestoPurchaseAdministrator(TCOPA).TheTCOPAshallbe either theCityManagerorapersondesignatedbytheCityManager,which designee shallbeeithertheNeighborhoodServicesDirectororaperson underthe directionoftheNeighborhoodServicesDirector.TheTCOPAshall:
(1)administerandenforcethisarticle;
(2)adoptrules,policies,proceduresandguidelines—approvedbytheCity Council—fortheimplementationofthisarticle;
(3)takeallreasonableandnecessarymeasurestoeffectthepurposes, intentandenforcementofthisarticle;
(4)publishasummaryoftenantrightsandobligationspursuanttothis article,andsourcesoftechnicalassistance,whichshallinclude,but shall notbe limitedto,alistoforganizationsfromwhichthetenant mayseek helptoexercisetherighttopurchase,informationregarding counseling, subsidyprograms,relocationservices,housingpurchase and
rehabilitationfinance,taxreliefprograms,formationoftenant organizations,purchaseof housingaccommodations,rehabilitation, and conversiontocooperativeorcondominium.
(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 article through a civil action in law or equity, and, upon prevailing, may seek an awardofcostsandreasonableattorneyfees.Inanequitableaction,the publicpolicyofthisarticlefavorsthewaiverofbondrequirementstothe 69 extentpermissibleunderlaworcourtrule.
(c)Penalties.TheCityCouncilshall,insofaraspermissibleunderstatelaw, establishbyordinancepenalties,includingbutnotlimitedto finesand imprisonment,toapplytoanypersonwhowillfullyviolatesanyprovisionof this articleoranyruleadoptedunderororderissuedpursuanttothisarticle,ortoany personwhowillfullymakesanyfalsestatementofamaterialfact thataffectsa right,obligationoropportunityunderthisarticle,ortoany personwhowillfully omitstostateamaterialfactthataffectsaright, obligationoropportunityunder thisarticle.
(d)Remediesnotexclusive.Theremediesavailableinthissectionarenot exclusiveandmaybeusedcumulativelywithanyotherremediesinthis chapterorotherwiseavailableatlaw.
(e)Jurisdiction.Theappropriatecourtinthejurisdictioninwhichthehousing accommodationislocatedshallhavejurisdictionoverallactionsbrought underthisarticle.
(f)Declaratoryrelief.TheCityCouncilshallestablishrulesandaprocedure wherebyanaggrievedowner,tenant,ortenantorganizationmaypetitionfor declaratoryreliefwithrespecttoprovisionsofthisarticle.
ARTICLEXI.–JUDICIALREVIEW,RIGHTSTOACTION,REMEDIES,
DEFENSES,JURISDICTION
Sec.20-75.–Judicialreview.
AlandlordortenantaggrievedbyanyactionordecisionoftheRentBoardmay seekjudicialreviewpursuanttostatelawandthischapteranditsimplementing regulations.NoactionordecisionbytheRentBoardshallgointoeffectuntilany statutorydeadlineforinitiatingsuchreviewhasexpired.
Sec.20-76.–Civilsuit.
Atenantmaybringacivilsuitinthecourtsofthestateallegingthatalandlordhas violatedanyoftheprovisionsofthischapterortheregulationspromulgated hereunder,includingthatthelandlordhasdemanded,accepted,received,or retaineda paymentorpaymentsinexcessofthelawfulrent(includingpayments rendered excessiveduetothelandlord’sviolationoftheprovisionspertainingto compliance withhabitabilitystandardsandmaintenanceofhousingservices).No administrative procedureneedbeexhaustedpriorto filingsuitpursuanttothis subsection. 70 Sec.20-77.–RentBoardorCityAttorneyenforcementaction.
Ifthetenantfailstobringacivilactionorpetitiontoenforcethetenant’srights underthischapter,exceptwithrespecttorightsaffordedbyarticleX,theRent Boardor theCityAttorneymaybringsuchanactionand/orsettletheclaimonthe tenant’s behalf.IftheRentBoardorCityAttorneybringssuchanactionor undertakestosettle suchaclaim,thetenantshallbeprovidedtherighttooptinor outoftheaction.Inthe caseofanopt-in,thetenantonwhosebehalftheRent BoardorCityAttorneyactsis barredfrombringingaseparateactionagainstthe landlordinregardtothesame violation,andtheRentBoardorCityAttorneyshall beentitledtorecuperatecosts incurredfromanymonetaryrecoveryfromthe landlord,withtheremaindertogotothe tenant.Inthecaseofanopt-out,the tenantshallretainallrightsrelatingtohisorher righttoprivateaction.Except withrespecttoarticleX,theRentBoardorCityAttorney maytakeother enforcementactionasnecessarytoensurecompliancewiththis chapter.
Sec.20-78.–Enforcementandinjunctiverelief.
TheRentBoard,CityAttorney,tenants,orlandlordsmayseekrelieffromthe appropriatecourtinthejurisdictionwheretheaffectedrentalunitislocatedto enforce anyprovisionofthischapteroritsimplementingregulationsortorestrain orenjoin anyviolationofthischapterandoftherules,regulations,orders,and decisionsofthe RentBoard.
Sec.20-79.–Remedies.
(a)Civilremedies.Inacivilsuit,alandlordfoundtohaveviolatedthischaptershall beliabletothetenantforallactualdamages,includingbutnot limitedto reimbursementofpaymentsinexcessofthelawfulrent.The courtmayadjust therenttothelawfulamount.Aprevailingtenantina civilactionbroughtto enforcethischaptershallbeawardedreasonable attorneys’feesandcostsas determinedbythecourt.Additionally,upona showingthatthelandlordhas actedwillfullyorwithoppression,fraud,or malice,thetenantshallbeawarded trebledamages.
(b)Additionalreliefforlandlord’sviolationofevictionrules.Ifitisshownthat the intendedactionwhichthelandlordclaimsasgroundstorecover possession undersubsection20-8(h),(i),(j),or(k)isnotinitiatedwithintwo (2)months afterthetenantvacatestherentalunit,oritisshownthatthe landlord’sclaimed intentionwasfalseorinbadfaith,thetenantshallbe entitledtoregain possessionoftherentalunitatsamerentthatwas lawfullyineffectwhenthe tenantvacated,inadditiontotherelief describedinsubsection(a)above. 71 (c)Notwithstandinganyprovisioninthischaptertothecontrary,thissection does notapplytoviolationsoftheprovisionsinarticleX.
Sec.20-80.–Defensestoactionstorecoverpossession.
(a)ExceptwithrespecttotheprovisionsofarticleXorregulations promulgated thereunder,towhichthissectiondoesnotapply,alandlord’s failuretocomply withanyoftheprovisionsofthischapterorregulations promulgatedhereunder mayberaisedasanaffirmativedefenseinan unlawfuldetainerorotheraction broughtbythelandlordtorecover possessionoftherentalunit.Anyandall violationsofthischapter(except violationsofarticleX)bythelandlordshall constitutesuchanaffirmative defense,includingbutnotlimitedto:thedemand orretentionofpaymentin excessofthelawfulrent;failuretoserveanyofthe noticesrequired pursuanttothischapteronthetenantortheRentBoard,or failureto conformsuchnoticestotherequirementsofthischapter;failureto paythe rentalhousingfee;failuretopayanyrequiredrelocationassistance;and a decreaseinhousingservicesormaintenancewithoutacorresponding reductioninrent.Itistheintentofthischaptertoconstruethissubsection to thebroadestextentpermissibleunderthelawtoensuremaximum compliance withthischapterandtoavoidunlawfulevictions.
(b)Evictionprotectionforvictimsofdomesticviolenceorsexualassaultor stalking.Itshallbeadefensetoanactionforpossessionofaunitunder subsection20-6(c)or(d)ifthetrieroffactdeterminesthat:
(1)Thetenantorthetenant’shouseholdmemberisavictimofanactor actsthatconstitutedomesticviolenceorsexualassaultorstalking; and (2)Theactionforpossession—whichmay,forexample,includecomplaints of noise,disturbances,orrepeatedpresenceofpolice—issubstantially based upontheactoractsconstitutingdomesticviolenceorsexual assaultor stalkingagainstthetenantoratenant’shouseholdmember.
Sec.20-81.–Remediesnotexclusive.
Theremediesavailableinthischapterarenotexclusiveandmaybeused cumulatively withanyotherremediesinthischapterorotherwiseavailableatlaw.
Sec.20-82.–Jurisdiction.
Theappropriatecourtinthejurisdictioninwhichtherentalunitislocatedshall 72 havejurisdictionoverallactionsbroughtunderthischapter.
ARTICLEXII.–GENERALPROVISIONS.
Sec.20-83.–Severability.
Ifanyprovisionofthischapterorapplicationthereoftoanypersonor circumstancesisheldinvalid,thisinvalidityshallnotaffectotherprovisionsor applicationsofthischapterthatcanbegiveneffectwithouttheinvalidprovisionor application,andtothisendtheprovisionsofthischapteraredeclaredtobe severable.
Thischaptershallbeliberallyconstruedtoachievethepurposesofthis chapterandto preserveitsvalidity.
Sec.20-84.–Supersession.
Thischaptersupersedesanyconflictingprovisionsofamunicipalordinance coveringtheareaofrents,evictions,relocationassistance,orothermatters addressed herein.However,nothinginthissectionshallbeconstruedtorestrictthe authorityof theCityCounciltoenactcomplimentaryornon-conflictingordinances ortotakeother suchactionswithinitspowers,wheresuchordinancesoractions complywithand upholdthetermsandpurposesofthischapter.
Sec.20-85.–Codification.
TheCityClerkandtheCityAttorneyshalltakeallstepsnecessarytoensurethe properandefficientcodificationofthischapterintothePomonaCityCode.This authorityshallincludemakinganynecessaryrevisionstonumbering,revisingor substitutinganyreferenceshereintootherprovisionsofPomonaorstatelaw,and similarnon-substantiverevisions.Inexercisingthisauthority,theCityClerkand City Attorneyshallnotalterthesubstantiveprovisionsofthischapternortakeany action thatcontradictsthetermsandpurposesofthischapter.
Sec.20-86.–Dutytodefend.
TheCityAttorneyshalltakeallstepsnecessarytozealouslydefendagainstany legal challengestothevalidityofthischapter.IftheCityAttorneyisunableor unwillingto defend,aninterestedthirdpartymayintervenetodefend.Anythird partythatdefends thischaptershallbeentitledtocourt-awardedattorneys’fees andcosts.
Sec.20-87.–Majorityapproval,effectivedate,execution.
Thisordinanceshallbecomevalidandbindingifapprovedbyamajorityofthe 73 votersvotingthereonand,ifsoapproved,shallgointoeffectten(10)daysafterthe voteisdeclaredbytheCityCouncil.TheMayorandCityClerkarehereby authorizedto executethisordinancetogiveevidenceofitsadoptionbythevoters. 74