Rent Stabilization Ordinance
Update and Next Steps
November 3, 2025
ATTACHMENT No. 2
Purpose: Present the Amended Rent Stabilization Ordinance Objective:
• Review key amendments incorporated into the draft ordinance • Receive input and confirmation from a majority of Council to proceed with a Second Reading for adoption
Purpose
Background
At the February 24, 2025 Meeting, City Council Directed Staff to:
• Establish a local rent cap program with a 6% annual cap • Implement a rental registry with limited or no personally identifiable information
• Include just cause eviction protections, including relocation benefits to tenants, informed by a market study
• Provide access to mediation services
• Identify a Rental Hearing Officer to administer disputes • Commit to Phase II: Rental Inspection Program implementation Background
At the June 16, 2025 Meeting, City Council Directed Staff to:
• Establish a local rent cap program with a 5% annual cap instead of 6%
• Council directed staff to provide a report on the progress and impact of the Rent Stabilization measures within 12 months of the ordinance's effective date.
Background
At the October 20, 2025 Meeting, City Council Directed Staff to:
• Bring back the Amended Ordinance without the rental registry requirement
• Detail current funds to help support rent stabilization program administration
Background
Key Updates:
• 5% Annual Rent Cap: Aligns with Council’s direction to establish a local rent stabilization standard
• Clarified Exemptions: Clarifies which units are exempt and outlines the process for claiming exemptions
Program Structure and Coverage
Key Updates:
• Relocation Assistance: Amounts to be set by City Council resolution, providing flexibility to adjust over time
• Relocation Study: A study will be conducted to inform Pomona- specific relocation assistance amounts
• Mediation Program: A dispute resolution process will be available to help landlords and tenants resolve issues without formal petitions or legal action
Tenant Protection Measures
Key Updates:
• Petition & Hearing Procedures Clarified: Streamlines timelines, documentation requirements, and responsibilities for both tenant and landlord petitions, including hearing officer duties and scheduling • Expanded Tenant Petitions:Allows tenants to file petitions for a broader range of issues
• Capital Improvement Petitions: Separated out from the general landlord petition to provide clearer guidance for landlords requesting relief to recoup costs for capital improvements
Petition and Hearing Process
Key Updates:
• Submission Flexibility: Required materials, such as notices, may now be submitted via email or mail, enhancing accessibility and reducing administrative burden
• Improved Terminology and Formatting:Language and timelines throughout the ordinance have been refined for clarity, consistency, and ease of interpretation by the public and staff
Administrative Improvements
Key Updates:
• Total estimated $3.0 million cost over the next three years to fund the Rent Stabilization program
• The funding from the American Rescue Plan (ARP) will expire on December 31, 2026
• Starting in January 2027, there are no identified funding sources to support the rent stabilization program
• If ordinance approved, there will be an additional $1.8 million impact to the General Fund between FY 2026-2027 and FY 2027-2028 Financial Impact
Legislative Milestones
• First Reading held tonight
• If approved, Second Reading in December of 2025
• Ordinance effective January 1, 2026 and shall remain in effect only until December 31, 2026
Implementation Planning Underway
• Relocation Assistance Study to inform City Council
resolution
• Coordinate staffing and develop implementation roadmap • Development of forms and administrative regulations
Next Steps
QUESTIONS?