OF
POMON,
Rent Stabilization Ordinance
Update and Next Steps
November 18, 2024
ATTACHMENT 4
Background
August 1, 2022 August 14, 2023
City of Pomona adopts First Study Session
Urgency Ordinance 4320 held by the City
0..
January 1, 2020 April 17, 2023 August 7, 2024
Tenant Protection Act Amended Ordinance Second Study Session (AB 1482) takes effect 4329 is adopted held by the City TOMON
Purpose
Discuss Permanent Rent Stabilization Options
Consider three potential pathways for rent stabilization:
1. No Local Policy: Repeal the current ordinances and rely solely on state law for tenant protections
2. Frovide rent prote prons tivon: Coatis Dovexpand Pomena's local ordinance to
3. Ststate law A 9482) All impemening alert progreen miss, housing stability
Pornoias long-te division for te Cant protections housing stay and an ene community impact
ciTy Nowa
Urgency Ordinance No. 4320 and 4329
Rent Increase Limit
• Lesser of 4% or change in CPI for non-exempt residential rental units Just Cause Eviction Protections
• Property owners must cite a for cause or no-fault reason to terminate tenancy • No-fault terminations receive relocation assistance ranging from $5,926 to $15,377
Established Petition Process
• Petition for Relief - for property owners seeking fair return • Petition for Noncompliance - for tenants who allege there is a violation COMON
Trends to Date
• Data in Pomona shows that approx.
97% of eviction notices served in the Notices Received
City are for a tenant's failure to pay 1200
rent 1000
• 4 Petitions for Relief (landlord 800
petitions) have been submitted
600
• 6 Petitions for Non-Compliance (tenant
400
petitions) have been submitted
200
• 1 hearing has been conducted
Rent Increase No-Fault For Cause For Cause
• Approx 975 public inquiries since the Notice (0) Eviction Notice Eviction - Non Eviction - Other (6) Payment Breach (30)
inception of the Ordinance (phone and
(1,024)
email)
• Notices Received
Property Ownership in Pomona
• 69% of properties are owned by individuals or entities that aren't a part of large institutions
• 46% of property owners are local to Pomona
Asset Value By Owner Type Asset Value By Owner Origin
11% 2%
User Institutional
14%
REIT/Public
46%
4% 54% Local
Private Equity National
69%
Private
Asset Value Percent Asset Value Percent
Source: CoStar Realty Information Inc.
TOMON
Rent Stabilization Options
No Local Policy Enhanced Local State-Aligned Policy
Protections (AB 1482+)
Rent Limits State law - 5% + CPI, not to Keep as in Urgency Ordinance or Mirror state law - 5% + CPI, not to exceed 10% modify exceed 10%
Eviction Protections State law protections only Keep as in Urgency Ordinance or Separate just cause eviction modify ordinance
Relocation Assistance State law protections only Keep as in Urgency Ordinance or Increased tenant relocation modify payments for no-fault evictions
Additions • Anti-harassment Ordinance • Anti-harassment Ordinance • Rental inspection program • Rental Registry and Fee • Anti-harassment Ordinance
Enforcement • Rental Registry and Fee
Mediation . Expanded rental assistance
• Additional tenant/landlord program
petitions
ciTy
Fiscal Impact
No Local Policy Enhanced Local State-Aligned Policy
Protections (AB 1482+)
Administrative Impact None 6 - 7 FTE • Rental Inspection Program - 3-4 FTE Costs Anti-Harassment $1.5 - $2.5 Million $1 - $2.25 Million Ordinance- $300,000
• Anti-Harassment Ordinance- • Rental Inspection Program - $350,742 and $300,000 $467,656 annually (Associated fee)
• Anti-Harassment Ordinance - $300,000
(General Fund)
• Rental Registry - Aims to be cost-neutral
(Associated fee)
• Enhanced Rental Assistance Program -
$348,000 - $1.5 Million*
Funding Source N/A Rental registry fee aims to covers • Business License program costs • Cannabis CB + tax
• Rental Inspection Fee
• Transient Occupancy Tax (TOT)
• Implement new rental unit tax
* Depending on funding source
CiTY
Rent Stabilization Program Budgets
Berkeley Hayward Oakland Richmond Santa Monica
(FY (FY 2023) (FY 21-22) (FY 23-24) (FY 24-25
2024) Projected)
Program $6,965,175 $594,445 $7,455,514 $3,074,698 $6,192,660 Revenue
Program $7,506,460 $696,454 $9,355,369 $3,004,698 $6,269,642 Expenditures
Annual ($541,285) ($102,009) ($1,899,855) $70,000 ($76,982) Surplus/Shortfall
Additional Considerations - Proposition 33
ECORFORATO JAN 18NA
Allows Local Governments to Expand Rent Control
• Eliminates Costa-Hawkins: Removes restrictions, allowing cities and counties limit rent increases on any housing, including single-family homes and newer buildings
• Vacancy Control: Local governments can limit rent increases when a new tenant moves in
No Automatic Changes to Existing Rent Control Laws
• Prop. 33 does not immediately alter current local rent control laws; local governments must take separate actions to change their regulations Limits State Interference
• Prevents the state from limiting local rent control decisions