RENTAL HOUSING PROFILE
AFFORDABLE HOUSING
Over 20% of Richmond’s rental housing stock is considered “affordable housing." This includes approximately 2,925 units built with Low-Income Housing Tax Credits (LIHTC), 789 units that receive HUD Project-Based Rental Assistance, and 1,215 with Housing Choice Vouchers from the local Housing Authority. Many units are under multiple affordable housing programs. For example, over half the city's LIHTC units also receive HUD subsidies.
In accordance with Rent Board Regulation 202, affordable housing is exempt from rent control but subject to Just Cause for eviction protections, and associated relocation payment requirements. Tenants and landlords of affordable housing can seek assistance from the Rent Program with eviction issues, receive Rent Program referrals for legal assistance from the Eviction Defense Center and Bay Area Legal Aid, and request mediation to resolve conflicts. In February 2019, the Rent Board reached an agreement with affordable housing providers and adopted a resolution limiting rent increases in certain LIHTC units to 5% annually to better protect low-income residents in these developments.
There are 26 affordable housing developments in Richmond. The map and key below show the names and locations of these developments. They are clustered in the south and west of the city, as well as in the Hilltop area to the north. 11 Affordable Housing
Developments in Richmond
Data source: Richmond Rent Program, 2021; City of Richmond, 2021 2325
24 26
Between March 2020-September 2020, pursuant to the City of Richmond Emergency Order, owners of properties with more than one dwelling unit built before February 1, 1995, (including LIHTC properties) could not increase the rent on residential rental units. Thereafter, between October 2020-September 2021, landlords of rent-controlled properties were prohibited from increasing rents pursuant to the Contra Costa County Urgency Ordinance. These moratoriums on rent increases significantly reduced the number of rent increase notices filed with the Rent Program.
Prior to the pandemic, in Fiscal Year 2018-19 (July 1, 2018- June 30, 2019) there were 2,476 rent increase notices filed with the Rent Program. Both Fiscal Year 2019-20 (July 1, 2019 –June 30, 2020) and Fiscal Year 2020-21 we saw significant decreases in notices filed. In 2019-20, there were 939 rent increase notices filed (a 62% decrease compared to the prior fiscal year). In Fiscal Year 2020-21, only 233 rent increase notices were filed (a 90.5% decrease compared to the prior fiscal year). This precipitous drop in rent increase notices submitted to the Rent Program is a direct result of local and county wide moratoriums on rent increases. After the rent increase moratorium went into effect, any notice of rent increase filed with the Rent Program resulted in both the landlord and tenant receiving a courtesy compliance letter informing both parties of the prohibition on increasing the rent.
12NOTICES OF RENT INCREASE
FISCAL YEARS 2019-2020 & 2020-2021
ANALYSIS
1,172
FY 2019-2020: 939
FY 2020-2021: 233
For a total:
FY 2019-2020: $50
FY 2020-2021: $39
Median new rent for
rent-controlled
units
FY 2019-2020: $1,550
FY 2020-2021: $1,400
Median rent
increase for rent-
controlled units
Data source: Richmond Rent Program, 2021; City of Richmond, 2021 Authorized rent
increases for 2019
is 3.5% and for
2020 is 2.9%
The median rent
increase for rent-
controlled units
decreased between
Fiscal Years 2019-
2020 and 2020-
2021
The economic impact of the COVID-19 pandemic, experienced in both Fiscal Years 2019-20 and 2020-21, resulted in a small drop in the Consumer Price Index (cost-of-living). The median rent increase for rent controlled units in fiscal year 2019-20 dropped by $6 compared to the Fiscal Year 2018-19 and in 2020-21, a decrease of $16 compared to Fiscal Year 2018-19. Despite both of these decreases in median rent increases, many households still struggled to pay rent due to the negative financial impact of the COVID-19 pandemic.The median new
rent for rent-
controlled units
also decreased in
both Fiscal Year
2019-2020 and
2020-2021
Based on the information submitted to the Rent Program, the median new rent for rent controlled units was $1,550 in fiscal year 2019-20 (a $6 decrease compared to the previous fiscal year) and $1,400 for Fiscal Year 2020-21 (a $119 decrease compared to Fiscal Year 2019-20). This amount reflects data for rent-controlled units only.
Rent Increase
Notices Filed with
the Rent Program
In March of 2021, the Richmond City Council adopted Urgency Ordinance 02-21, establishing a temporary moratorium on certain evictions of residential tenants in Richmond through the state of local emergency and sixty (60) days thereafter. The Urgency Ordinance prohibits evicting a tenant or requiring a tenant to vacate or representing to a tenant that the tenant is required to move out by law, notwithstanding a landlord’s right to evict for: (1) nuisance that poses an imminent health or safety threat; (2) failure to pay rent that came due between March 1, 2020 and September 30, 2021, pursuant the COVID-19 Tenant Relief Act and; (3) for withdrawal of the rental unit from the rental market pursuant the Ellis Act.
The City of Richmond Urgency Ordinance led to a decrease in the number of certain Just Cause evictions other than non-payment of rent, such as Owner Move-In evictions and an overall decrease of all termination of tenancy notices filed that were other than non-payment of rent. In the year prior to the pandemic (FY 2018-2019), there were 148 Just Cause termination of tenancies notices filed other than non-payment of rent. In 2019-20 there were 94 Just Cause notices of termination of tenancy filed other than non- payment of rent with the Rent Program, a 36.5% decease (data referenced on page 14). In Fiscal Year 2020-21 there were 97 Just Cause notices of termination of tenancy other than non-payment of rent filed with the Rent Program. There was a notable increase in nuisance and breach of lease notices of termination of tenancy filed during Fiscal Year 2020-21 compared to Fiscal Year 2019-20.
NOTICES OF TERMINATION OF TENANCY
FISCAL YEARS 2019-2020 & 2020-2021
ANALYSIS
13 Data source: Richmond Rent Program, 2021; City of Richmond, 2021 Richmond’s
Moratorium on
Certain Types of
Terminations of
Tenancies Led to
a Decrease in
Certain Types of
Just Cause
Terminations of
Tenancies
Appendix 2- Map of Termination of Tenancy Notices Filed FY 2020-2021 on page 19 Administrative Student Intern, Abraham Gonzales, processing Termination of Tenancy Notices submitted to the Rent Program.
Appendix 1- Map of Termination of Tenancy Notices Filed FY 2019-2020 on page 18
0 100 200 300 400 500
Nonpayment of Rent
Breach of Lease
Nuisance
Owner move-In
Failure to Give Access
Withdrawal from the Rental Market (Ellis Act)
Temporarily Vacate due to Substantial Repairs
Temporary Tenancy
0 500 1,000 1,500 2,000
Nonpayment of Rent
Breach of Lease
Nuisance
Owner move-In
Failure to Give Access
Withdrawal from the Rental Market (Ellis Act)
Temporarily Vacate due to Substantial Repairs
Temporary Tenancy
14 Total of Termination of Tenancy Notices Filed with the Rent Program in FY 2020-2021
47 35
13 0
1 1
0 444
Data source: Richmond Rent Program, 2021; City of Richmond, 2021
NOTICES OF TERMINATION OF TENANCY
FISCAL YEARS 2019-2020 & 2020-2021
BY THE NUMBERS
Total of Termination of Tenancy Notices Filed with the
Rent Program in FY 2019-2020
30 20
32 1
9 2
0 1,831
JULY-19
AUG-19
SEPT-19
OCT-19
NOV-19
DEC-19
JAN-2020
FEB-2020
MARCH-2020
APR-2020
MAY-2020
JUN-2020
JUL-2020
AUG-2020
SEPT-2020
OCT-2020
NOV-2020
DEC-2020
JAN-2021
FEB-2021
MARCH-2021
APR-2021
MAY-2021
JUNE-2021
300
200
100
0 15
444
Data source: Richmond Rent Program, 2021; City of Richmond, 2021
NOTICES OF TERMINATION OF TENANCY
NON-PAYMENT OF RENT 2019-2021
ANALYSIS
Non-payment of Rent Termination of Tenancy Noticed Filed FY 2019-2021
Local and State
Eviction
Moratoriums
resulted in a
significant drop
of termination
of tenancy
notices
concerning
nonpayment of
rent
In both Fiscal Years 2019-20 and 2020-21, approximately 92% of notices of termination of tenancy filed with the Rent Program were for nonpayment of rent. While this percentage trends similar to past fiscal years, the overall number of non-payment termination of tenancy notices submitted decreased significantly. In fact, between June of 2019 and February 2020 (pre-pandemic), the total number of non-payment of rent termination of tenancy notices filed was 1,656. During the COVID-19 pandemic (between March 2020 and June of 2021), 619 non-payment of rent termination of tenancy notices were filed, which is a total decrease of 62.62%.
The significant decrease in termination of tenancy for nonpayment of rent was clearly the connected to the COVID-19 Tenant Relief Act, which prohibited evictions for non-payment of rent for tenants who have experienced financial hardship due to the COVID-19 pandemic (with the caveat that the tenant pays 25% of any rent due between September 1, 2020-September 30, 2021). 114
214
196
223
283
208
232
186
143
26 5 1 00 5
108
10 64
28 104
44 29
49 3
Personnel Costs77.6%
Legal Costs8.6%Cost Pool & Risk Management8.2%Services & Supplies4.7% $2.26 million in actual expenses
$2.71 million in Rental Housing Fee revenue collected
92.6% compliance rate
$441 thousandcontributed to the Agency's operating
reserves*
FISCAL YEAR
2019-2020
FINANCIAL
SUMMARY
$2.50 millionin budgeted expenses
16 IT Expenses
0.9%
*At fiscal year-end the Program maintains a net surplus of operating reserve in the fund balance primarily due to staff vacancies. The reserve will remain to accommodate for potential deficits in future years from reduced compliance and collections. The Program will continue to monitor the rental market and adjust staffing and non-personal expenses accordingly. $425 thousand in budgeted reserves (17% per GFOA)
$2.92 milliontotal budget revenue
Personnel Costs79.2%
Legal Costs8.5%Cost Pool & Risk Management8.2%Services & Supplies4.1%
FISCAL YEAR
2020-2021
FINANCIAL
SUMMARY
$2.48 millionin budgeted expenses
$2.14 million in actual expenses
$2.80 million in Rental Housing Fee revenue collected
96.5% compliance rate
17 $653 thousandcontributed to the Agency's operating
reserves*
*At fiscal year-end the Program maintains a net surplus of operating reserve in the fund balance primarily due to staff vacancies. The reserve will remain to accommodate for potential deficits in future years from reduce compliance and collections. The Program will continue to monitor the rental market and adjust staffing and non-personal expenses accordingly. $421 thousand in budgeted reserves (17% per GFOA)
$2.90 milliontotal budget revenue
APPENDIX 1 18
Data source: Richmond Rent Program, 2021; City of Richmond, 2021 Map of Termination of Tenancy Notices Filed FY 2019-2020
Map of Termination of Tenancy Notices Filed FY 2020-2021 APPENDIX 2 19
Data source: Richmond Rent Program, 2021; City of Richmond, 2021
Airgood-Obrycki, W., Demers, B., Green, S., Herbery, C., Hermann, A., Luberoff, D., & Wedeen S. (2021).
Renters' Responses to Financial Stress During the Pandemic. Cambridge: Joint Center for Housing Studies. Retrieved from
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Chew, A., & Treuhaft, S. (2019). Our Homes, Our Future: how rent control can build stable, healthy communities. PolicyLink. Retrieved from
https://www.policylink.org/sites/default/files/OurHomesOurFuture_Web_08-02-19.pdf Currier, Erin et al. (2018). American Families Face a Growing Rent Burden: High Housing Costs Threaten Financial Security and Put Homeownership out of Reach for Many. Pew Charitable Trusts. Retrie from https://www.pewtrusts.org/-/media/assets/2018/04/rent-burden_report_v2.pdf David L. Stern, Andrea K. Blanch, Ph.D., and Sarah M. Steverman. Impact of Toxic Stress on Individuals and Communities: A Review of the literature. Mental Health America. (September, 2014). Retrieved from Los Angeles: Economic Roundtable. Retrieved from
https://www.mentalhealthamerica.net/sites/default/files/Impact%20of%20Toxic%20Stress%20on% 20Individuals%20and%20Communities-A%20Review%20of%20the%20Literature.pdf.
Ehran Dohler et al., "Supportive Housing Helps Vulnerable People Live and Thrive in the Community." Center on Budget and Policy Priorities (May, 2016). Retrieved from https://www.cbpp.org/research/housing/supportive-housing-helps-vulnerable-people-live-and- thrive-in-the-community.
Rothstein, R. (2017). The Color of Law: A Forgotten History of How Our Government Segregated America.
Liveright.
Solomon M., and Baldassari, E. (2021). "More Than 500 Bay Area Residents Have Been Evicted During Pandemic, Despite Protections." KQED. Retrieved from
https://www.kqed.org/news/11856817/more-than-500-bay-area-residents-have-been-evicted- during-the-pandemic-despite-protections
Taylor, L. (2018). Housing And Health: An Overview Of The Literature. Health Affairs. Retrieved from https://www.healthaffairs.org/do/10.1377/hpb20180313.396577/full
REFERENCES
20
This report was created in accordance with Section 11.100.060(e)(6) of the Richmond Fair Rent, Just Cause for Eviction, and Homeowner Protection Ordinance, which requires the Rent Board to report annually to the City Council of the City of Richmond on the status of rental housing covered by the Ordinance.
City of Richmond Rent Program
440 Civic Center Plaza, Suite 200
Richmond, CA 94804
(510) 234-RENT [7368]
www.richmondrent.org
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