Housing AffordabilityCommunity Stability
CITY OF
RICHMOND
RENT
PROGRAM
FISCAL YEARS
2019-2020 & 2020-2021
ANNUAL REPORT
Healthy Housing
Edited by Monica Bejarano-
Rent Program Services Analyst
Facebook: @richmondrentprogram
Instagram: richmond_rent_program
www.richmondrent.org
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"This program (Rent Program) not only has helped
several families facing financial hardship, but our
property as well... We are now confident that our
residents' concerns of losing their home have ceased."
- Richmond Property Manager
"From the initial conversation onward, every team
member (Rent Program staff) was knowledgeable and
empathetic. I didn’t feel like just a number in their
system; I was treated with kindness and respect.
...yet your team has empowered me, and most
importantly, had my back and made me feel
supported.
Without a doubt, I would have been homeless 18
months ago if not for this program (Rent Program)
and the incredible folks who run it!"
- Richmond Tenant
STAFF, INTERNS &
BOARDMEMBERS
ACKNOWLEDGMENTS
Nicolas Traylor, Executive Director
Fred Tran, Deputy Director
Charles Oshinuga, Staff Attorney
Palomar Sanchez, Staff Attorney
Paul Cohen, Hearing Examiner
Monica Bejarano, Services Analyst
Cynthia Shaw, Administrative Analyst
Ramona Howell, Administrative Aide
Moises Serrano, Administrative Aide
Christopher Villalta, Administrative Student Intern
Abraham Gonzalez, Administrative Student Intern
Rent Program Staff
Former Staff
Paige Roosa, Deputy Director
Magaly Chavez, Rent Program Services Analyst
Philip Verma, Rent Program Services Analyst
Vickie Medina, Rent Program Services Analyst
Sarah Schaff, Administrative Student Intern
Erika Foster, UC Berkeley PSI Intern
Johana Gurdian, UC Berkeley PSI Intern
Madeline Rivas, UC Berkeley PSI Intern
Raghavendra Gupta, UC Berkeley PSI Intern
Han Chang, UC Berkeley PSI Intern
Gabby Arreola, UC Berkeley PSI Intern
Rent Board
Virginia Finlay, Chair
Shiva Mishek, Vice Chair
Alana Grice Conner, Boardmember
Michael Vasilas, Boardmember
Carol Johnson, Boardmember
Rent Program staff members
(during 2019-2021)
My name is Nicolas Traylor and I am the Executive Director of the Richmond Rent Program. I am also a long-time Richmond resident and community member. I report to the 5 member Richmond Rent Board, who are appointed by the Mayor and City Council.
The Rent Board governs and oversees the Rent Program, it's budget and the promulgating of Rent Board policy through regulations and resolutions. Since the inception of the Rent Program in 2017, the 5 member Rent Board has adopted 148 regulations and 4 resolutions to clarify the intent of the Fair Rent, Just Cause for Eviction and Homeowner Protection Ordinance (hereafter "Rent Ordinance"). The Rent Board has also successfully adopted 4 annual Rent Program budgets, establishing and overseeing an agency that has reached high levels of compliance, while balancing each years budget with modest reserves. Little did we know that soon after finding stability as an agency, the COVID-19 pandemic hit.
The COVID-19 pandemic has demonstrated the intrinsic connection between housing stability, financial stability, community stability and health. In the best of times, housing stability is tenuous in our beautiful Bay Area. Numerous scientific studies have linked negative health effects with housing insecurity. These turbulent times have stressed our system, making a structure of support for those affected by unstable housing all the more prescient.
During the COVID-19 pandemic the Rent Program has been the hub of vital information for the community, empowering landlords and tenants to know their rights by disseminating up-to-date information on the unprecedented changes in various local and state eviction and rent increase moratoria.
This annual report sheds light on an important fact: housing stability is a public health issue. By actively enforcing the Rent Ordinance, the Rent Program plays a vital role in the community in protecting the physical and mental health of Richmond residents.
Finally, this annual report disseminates useful information about the Rent Ordinance, Richmond’s rental housing stock, rent increase and eviction data, and Rent Program finances.
LETTER FROM
THE DIRECTOR
Nicolas Traylor
Executive Director
Since the spring of 2020, the COVID-19 pandemic has had a significant impact on the financial, physical, and mental well-being of everyone around the world. Millions of renters have struggled and continue to struggle to pay rent due to loss of income caused by the pandemic, increased out-of-pocket expenses, lost childcare, among a multitude of other reasons directly related to the pandemic (Airgood-Obrycki, W. et al., 2021). In an effort to slow the spread of the COVID-19 virus and therefore save lives, governments at all levels have instituted policies to stabilize housing and stem displacement.
Studies have shown that housing instability is detrimental to one's health. People who face housing instability are more likely to experience poor health in comparison to those who have housing stability (Taylor, 2018). Housing stability is a cross-sector force that links financial security, academic performance, job performance, and psychological and physiological well-being.
Laws such as the Richmond Rent Ordinance, the City of Richmond's eviction moratorium (Urgency Ordinance), Contra Costa County's rent increase and eviction moratorium and the state's eviction moratorium (COVID-19 Tenant Relief Act of 2020) have all played a role in slowing the potential spread of the COVID-19 virus. These protections have been especially important in Richmond, which historically has had higher rates of eviction compared to surrounding cities.
WHAT THE COVID-19 PANDEMIC
HAS REVEALED: HOUSING STABILITY
IS A PUBLIC HEALTH ISSUE
The mission of the Rent Ordinance is to promote neighborhood and community stability, healthy housing, and affordability for Richmond tenants through the regulating of those landlord/tenant matters that reasonably relate to rents and evictions, while maintaining a landlord’s right to a fair return.
Our
mission
Housing
instability
is bad for
your health
2 Reduced homelessness and overcrowding which lead to negative health outcomes for individuals and the community, including the spread of the COVID-19 virus (Ehran, D et al., 2016).
Financial predictability for tenants, similar to the financial predictability experienced by homeowners on fixed-term mortgages, allowing tenants to better plan financially for the future.
Higher academic performance for children: Studies have shown that housing stability leads to higher academic performance (Currier, E et al., 2018).
Reduced psychological and physiological stress: Studies have shown that housing insecurity leads to higher levels of psychological and physiological stress, increasing cortisol levels in the body weakening the immune system (David et al., 2014).
Tenants who have housing stability are more likely to assert their right to fit and habitable housing because they know they cannot be legally evicted for complaining about habitability problems. Tenants are also aware they have recourse to compel the landlord to make repairs by filing a Rent Adjustment Petition to reduce their rent until habitability problems are corrected.
Outside of the immediate health benefits associated with staying housed, there are many other societal benefits to stable, healthy and affordable housing. Among those benefits are:
WHAT THE COVID-19 PANDEMIC
HAS REVEALED: HOUSING
STABILITY IS A PUBLIC HEALTH
ISSUE (CONTINUED)
3 A safer and
healthier
community
Housing
Stability is good
for your health
More financial
security for
Tenants
Better
academic
performance,
less
delinquency
and improved
mental and
physical health
Healthier and
more habitable
rental housing
stock
Rent
Stabilization
Eviction
Protections
Housing
Affordability
Financial
Stability
Community
Stability
POSITIVEPOSITIVEPOSITIVEHEALTHHEALTHHEALTHOUTCOMESOUTCOMESOUTCOMES The positive
impact of
housing
stability on
health
outcomes
visualized
One of the Rent Program's primary goals is to protect the health of our community by actively enforcing the Rent Ordinance. Active enforcement means actively reaching out to and educating both landlords and tenants regarding their respective rights and responsibilities under the Rent Ordinance. Getting the landlord and tenant on the same page about their rent-control and eviction protection rights, is the most effective way to enforce the Rent Ordinance.
What does
active
enforcement
mean?
4 Active
Enforcement of the
Rent OrdinanceTenancyRegistration RentAdjustmentPetitions CommunityEducation
The Maximum
Allowable Rent for
each rent-controlled
unit is calculated
based on information
submitted by
landlords and
tenants.
Tenants and
landlords can enforce
their rights through
the Rent Adjustment
Petition process.
Enforcement starts with education. Tenants and landlords who understand their rights and responsibilities are more likely to comply with the law.
RENT ORDINANCE
ENFORCEMENT
(1) Property Enrollment and Tenancy Registration
(2) Counseling, Mediation, and Community Education
(3) Rent Adjustment Petition Process
Active enforcement of the Rent Ordinance has three major components:
5 PROTECTING THE HEALTH OF OUR
COMMUNITY THROUGH ACTIVE
ENFORCEMENT OF THE RENT
ORDINANCE
To ensure that both landlords and tenants are on the same page regarding how much rent can be charged, the Rent Program maintains a database of rent-controlled tenancies and the Maximum Allowable Rent associated with those tenancies.
Property Enrollment & Tenancy Registration
Outreach and education starts with gathering accurate data on rental properties, tenancies and lawful rent levels in Richmond. Having worked diligently the past four years to gather data on rental properties and rents, Rent Program staff are able to better track lawful rent levels and inform both landlords and tenants of the maximum rent that could be charged for that rent-controlled unit.
Landlords and tenants can actively assert and enforce their rights through the rent adjustment petition process.
The Rent Adjustment Petition Process
The Rent Ordinance provides recourse to compel habitable, healthy housing, and an incentive to invest in maintaining rental properties. This is achieved through the Rent Adjustment Petition process. Landlords who invest in maintaining or improving their properties can elect to file a "Fair Return" petition to increase the rent beyond the annual cost-of-living increase. Tenants, on the other hand, who are living with substandard conditions or who experience a decrease in habitability, usable space, or housing services can file a petition to decrease rent until repairs are made or services restored. A rent reduction petition is an effective means to compel timely repairs.
Rent Program Services Analysts ("Housing Counselors") assist community members with a wide range of issues pertaining to the Rent Ordinance. During the pandemic, our services have never been more vital.
Counseling, Mediation & Community Education
Housing Counseling: Rent Program Services Analysts provide community members with individualized counseling sessions on issues related to the Rent Ordinance and associated state laws.
Rent Program Webinar by Services Analyst,
Monica Bejarano
Legal Services: As part of our community education and outreach, the Rent Program contracts with the Eviction Defense Center and Bay Area Legal Aid to refer community members to legal assistance and representation necessary to assert their rights.
Mediation: Often landlord and tenant disputes are complex and may benefit from the assistance of mediation. This option presents a great opportunity to avoid tenant and landlord legal disputes and reach a compromise and/or negotiate a resolution to their issues.
Property Enrollment & Tenancy Registration
6 BY THE NUMBERS
FISCAL YEAR 2019-2020 & 2020-2021
Data Source: Richmond Rent Program, July 1, 2019-June 30, 2021 1,111
Property
Enrollment packets
mailed
FY 2019-2020: 723
FY 2020-2021: 388
For a total:
673
Properties
Enrolled
FY 2019-2020: 552
FY 2020-2021: 121
For a total:
2,494
Consultations with
Billing &
Registration
staff
FY 2019-2020: 1,040
FY 2020-2021: 1,454
For a total:
9,670
Counseling sessions
conducted
FY 2019-2020: 4,369
FY 2020-2021: 5,301
For a total:
574
Community
Workshop
particiants
FY 2019-2020: 258
FY 2020-2021: 316
For a total:
218
Households referred
to legal services
FY 2019-2020: 95
FY 2020-2021: 123
For a total:
20 Mediations held
between tenants
and landlords
FY 2019-2020: 11
FY 2020-2021: 9
For a total:
937
Consultations with
the Hearings Unit
Coordinator
FY 2019-2020: 457
FY 2020-2021: 480
For a total:
41 Settlement
Agreements
reached
FY 2019-2020: 24
FY 2020-2021: 17
For a total:
13 Individual rent
decreases
ordered
FY 2019-2020: 6
FY 2020-2021: 7
For a total:
7 Individual rent
increases
ordered
FY 2019-2020: 4
FY 2020-2021: 3
For a total:
Counseling, Mediation, & Community Outreach
The Rent Adjustment Petition Process
During the COVID-19 pandemic, the Rent Program has been the hub of information for landlords and tenants who want to understand their rights under local, state and federal moratoria. With many tenants and landlords experiencing financial distress caused by the pandemic, the need for Rent Program services, especially around evictions and non-payment of rent, has never been more important. 7ENFORCEMENT THROUGH OUTREACH:
THE RENT PROGRAM’S RESPONSE TO THE
COVID-19 PANDEMIC”
The Rent Program has
adopted internal policies to
assist landlords facing
financial hardship due to
the COVID-19 Pandemic
Landlords facing financial hardship due to the pandemic may request a deferral of the Rental Housing Fee or request a payment plan. Over $142,644 dollars in late fees were waived since the inception of the Rent Program. During the pandemic, $116,962 of late fees were waived including situations where the landlord was facing financial hardship because their tenants were not paying rent.
The Rent Program
spearheaded the
development of the first
rent assistance program
dedicated solely to
Richmond landlords and
tenants
The Rent Program is the
hub of information for
Richmond landlords and
tenants regarding
pandemic related laws and
rent assistance
20 online educational webinars
Rent Program staff developed a comprehensive fact sheet on state and local rental laws
Continue to provide housing counseling remotely, in-person (starting June 21, 2021), and via Zoom
Development of an online appointment system making it easier to secure a counseling appointment with Rent Program staff
Instructional webinar on how to apply for rent assistance through the California Rent Relief Program
Creation of the "Rent Assistance Resources" web page
A post card sent to all Richmond residents informing them of rent assistance resources and eviction moratoria
Over 800 courtesy compliance letters were sent to landlords and tenants regarding eviction moratoria, which was triggered by each termination of tenancy notice filed with the Rent Program (as required by the Rent Ordinance) Rent Program efforts to educate and serve the community during the pandemic include (but are not limited to):
Prior to the COVID-19 pandemic, the Rent Program met with City officials and began discussions about the potential creation of a rent assistance program for Richmond residents. Those discussions led to the creation of a rent assistance program. Launched after the shelter- in-place took effect, the coalition engages over 90 cross-sector stakeholders, including community partners, non-profits, and the City of Richmond. This coalition has raised and disbursed over $150,000 dollars to Richmond landlords and tenants.
FACTS ABOUT RICHMOND'S RENTAL
HOUSING STOCK:
8 COUNTERING THE FALSE NARRATIVE THAT THE RENT
ORDINANCE HAS LED TO A LOSS OF RENTAL UNITS
The Fiscal Year 2017-2018 Rental Housing Fee Study and the Rent Program first fee study indicate that there were 24,797 Rental Units in Richmond based on data from the County Assessor's Office in 2017. In comparison, the Fiscal Year 2020-21 Fee Study reports that there were as of the date of May 2020, 17,684 Rental Units in Richmond based on the Rent Program's database.
Does this mean Richmond lost 7,113 Rental Units between 2017-2020? The owner didn't know about the Homeowners Tax Exemption The owner doesn't qualify for the Homeowner Tax Exemption because they don't live in the property as their primary residence, but they use the property for another purpose besides renting it for residential purposes (i.e. Second/Vacation home, storage, work studio, etc.) In short, no. Richmond did not lose over 7,000 Rental Units between 2017-2020. Instead, between 2017 and 2020, staff members investigated and refined the database of suspected Rental Units to identify only those units that are truly rented. The Fiscal Year 2016-17 and Fiscal Year 2017-18 Fee Studies utilized data provided by the Contra Costa County Assessor’s Office to identify suspected Rental Units. While County Assessor data may be used to arrive at an estimated number of total rental units, it cannot produce an exact figure. Nevertheless, County Assessor data was the best and most readily available data at the time of the Fiscal Year 2016-17 and Fiscal Year 2017-18 Fee Study. One assumption used to identify suspected Rental Units included that all housing units in the City for which there were no Homeowner’s Tax Exemption on file were rentals. This assumption substantially overestimated the number of Rental Units in Richmond. Staff members heard from community members that there are a number of reasons why an owner might not have claimed the Homeowner’s Tax Exemption, but not used their property as a rental. These reasons include:
So then what is the reason for the discrepancy? How did the estimate of close to 25,000 Rental Units in 2017 decrease to less than 18,000 in 2020? County Assessor data was used to create a very rough estimate of suspected Rental Units. In 2017, staff members collaborated with the City's IT Department to construct the Program's (and City's) first comprehensive database of Rental Units. Using the County Assessor data, cross- checked against data from the City's Rental Inspection Program, showed many units as Homeowner Exempt. Approximately 23,500 units were estimated to have been rented.
In late 2017, staff members mailed invoices to owners of these 23,500 suspected Rental Units.
Approximately 4,087 suspected Rental Units were determined to be exempt based on feedback from owners. They explained that their units were either owner occupied or used for some other purpose. This left approximately 19,413 suspected Rental Units.
Between 2018 and 2020, owners of more than 1,500 units in the Rent Program's database of suspected Rental Units contacted the Rent Program upon receipt of a Rental Housing Fee Invoice to claim their unit(s) as inapplicable to the Rent Ordinance. Reasons included (a) owner occupancy or rental by a non-paying family member, (b) properties not offered for rent or used for another purpose, (c) otherwise not applicable due to location outside City boundaries or property comprised by a vacant lot erroneously added to the initial database.
THE FACTS ABOUT RICHMOND'S
RENTAL HOUSING STOCK: 9
COUNTERING THE FALSE NARRATIVE THAT THE RENT ORDINANCE HAS LED TO A
LOSS OF RENTAL UNITS (CONTINUED)
As of May 2020, the latest estimate of Rental Units in the City totaled 17,684. As of June 2021, approximately 3,200 new Rental Units were discovered and added to the Rent Program's database, bring the total number of rental units to approximately 20,910. This number will continue to fluctuate as properties (single family homes and condominiums in particular) are bought and sold, rented by one owner, or owner-occupied.
How many Rental Units in Richmond are estimated to have actually been removed from the rental market between 2017-2021?
Rent Program records indicate that between the Rent Program's establishment in 2017 and the end of the 2020-2021 Fiscal Year in June 2021, 190 units have been withdrawn from the rental market pursuant to the Ellis Act and 51 units have been removed from the rental market due to Owner Move-In, for a total of 241 units removed from Richmond's rental market.
RENTAL
HOUSING BY
THE
NUMBERS
Governmentally-
Subsidized
Units
(included in the count
of Partially Covered
Units)
11,914 4,337
Total
Partially
Covered
Units**
(Just Cause eviction
protections only)
8,996
Fully
Covered
Units*
(rent control &
Just Cause)
An increase of
1,481 in FY 2021-22
An increase of
1,706 in FY 2021-22
(As of June 2021)
*Fully covered units are those Rental Units that are subject to both Rent Control and Just Cause for Eviction Protections. Multi-unit properties constructed with permits on or before February 1, 1995. **Partially covered units are those Rental Units are subject to Just Cause for Eviction Protections only. Subsidized Units, including Section 8 Tenancies; Properties with one dwelling unit on one parcel; Condominiums; Post February 1, 1995 new construction with permits and certificate of occupancy (i.e., permits are final and unit is fit for residential habitation).
IMPORTANT FACTS ABOUT THE RENT
PROGRAM AND RENT ORDINANCE 10
67 Funding for the Rent Program is independent from and not tied to the General Fund The Rent Ordinance provides protections for homeowners
The Rent Program is an agency independent from the City of Richmond Section 11.100.060(l) of the Rent Ordinance provides that the Rent Board shall finance its reasonable and necessary expenses by charging Landlords annual registration fees in amounts deemed reasonable by the Rent Board. Under Section 50076 of the California Government Code, fees charged for any service or regulatory activity must not exceed the reasonable cost of providing the service. To ensure this requirement is satisfied, the Rent Board conducts an annual fee study. The Rental Housing Fee is adopted by the City Council and paid by Landlords to finance the Program's reasonable and necessary expenses.
The Rent Ordinance carves out protections for single family homeowners who rent out rooms in their house or rent out permitted Accessory Dwelling Units. If a homeowner shares a kitchen and or bath with a tenant, they are not subject to rent control or the requirement to have Just Cause to evict. This protection was put in the law as an incentive for single family homeowners to construct newly permitted rental units and to encourage the legalization of the many un-permitted backyard and in-law dwelling units.
In accordance with Section 11.100.060(m) of the Rent Ordinance, the Rent Board and Rent Program function as integral parts of the City of Richmond, but exercise powers and duties under the Ordinance independent from the City Council, City Manager, and City Attorney, except by request of the Rent Board. To illustrate this concept, the Board, for example, adopts its own annual operating budget and hires an Executive Director who reports to the Board and not the City Manager.
Landlords have a constitutionally protected right to a Fair Return.
The Maintenance of Net Operating Income Petition process evaluates a Landlord’s assertion that they are not receiving a Fair Return and if so demonstrated, grants a Landlord a rent increase in an amount determined necessary to provide that Landlord a Fair Return. The courts have consistently upheld the constitutionality of the Maintenance of Net Operating Income process.
Landlords who are not in compliance with the Rent Ordinance may be prohibited from raising rents (for Controlled Rental Units only) or terminating tenancies Tenants may use a Landlord's non-compliance with the Rent Ordinance as a defense to an eviction lawsuit. To be in compliance with the Rent Ordinance and Rent Board Regulations, landlords must enroll their rental properties with the Rent Program, pay the Rental Housing Fee, and follow the eviction and rent increase noticing requirements. Landlords of rent controlled properties may be prohibited from raising the rent if they are not in compliance with the Rent Ordinance.
There are special noticing requirements for Landlords
One of the key ways that the Rent Program monitors rents and evictions and enforces the Rent Ordinance is through special noticing requirements. Landlords of Controlled Rental Units must submit to the Rent Program copies of rent increase notices within 10 business days upon service of the tenant. Landlords of rental units that are covered by the requirement to have Just Cause to evict, must submit copies of any notice of termination of tenancy to the Rent Program within 2 business days of having served the tenant. Rent increases that are above the Maximum Allowable Rent (rent ceiling) and termination of tenancy notices that are not incompliance with the requirement to have "Just Cause" to evict, result in the landlord and tenant receiving a special mailing providing information to them of their rights and responsibilities under applicable local and state law. Failure on the part of the Landlord to adhere to the noticing requirements can be used by a Tenant as a defense to an eviction lawsuit.
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
https://www.jchs.harvard.edu/sites/default/files/research/files/harvard_jchs_renter_responses_c ovid_airgood-obrycki_etal_2021.pdf.
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
Housing AffordabilityCommunity StabilityHealthy Housing