CITY
Attachment No. 4
JANHEAD.
Rent Stabilization Ordinance
Update and Next Steps
February 24, 2025
INORON
Background
August 1, 2022 Airst study 030/03 November 18, 2024
City of Pomona adopts City Council meeting
Urgency Ordinance 4320 held by the City discussion
.. ....
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 Purpose
Discuss Permanent Rent Stabilization Options
Consider two potential pathways for rent stabilization:
1. Revised Local Policy: Adopt a revised local rent stabilization policy with the following components:
> Annual percentage cap
• Required due process elements
• Rental registration requirement
2. State-Aligned Policy (AB 1482+): Adopt a policy that aligns with the rent limits of state law (AB 1482) while pursuing a suite of alternative programs:
• Rental Inspection Program
• Rental Assistance
> Tenant Anti-Harassment Ordinance
> Just cause eviction protections
• Mediation services
Objective: Receive clear direction from a majority of Council on a preferred approach so that staff, the City Attorney, and consultants may bring forth enacting legislation for Council consideration.
Urgency Ordinance No. 4320 and 4329
JANIEAD.
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 CITY
Rent Stabilization Options
Revised Local Policy State-Aligned Policy
(AB 1482+)
Rent Limits Keep as in Urgency Ordinance or modify Mirror state law - 5% + CPI, not to exceed 10%* Eviction Protections Keep as in Urgency Ordinance or modify Separate just cause eviction ordinance Relocation Assistance Keep as in Urgency Ordinance or modify Retain or adjust tenant relocation payments for no-fault evictions
Additions • More robust due process procedures • Rental inspection program Anti-harassment Ordinance • Rental assistance
Rental Registry and Fee • Anti-harassment Ordinance
• Mediation services
Administrative Impact • Rent Stabilization Program: 6 - 7 FTE • Rental Inspection Program: 3 - 4 FTE Enhanced Rental Assistance Program: 1 additional FTE
Cost Considerations • Rent Stabilization Program Administration: $1.5 - $2.5 • Rental Inspection Program Staff: $350,742 and $467,656 Million (recovered fully or partially by Rental Registry annually (recovered fully or partially by program fee) Fee) • Enhanced Rental Assistance Program: $450,000
• Anti-Harassment Ordinance: $300,000 • Anti-Harassment Ordinance: $300,000 • Relocation assistance market analysis: $TBD
• Mediation Services: $TBD
*AB 1482 is set to sunset on January 1, 2030
SYNONCE
QUESTIONS?