440 Civic Center Plaza, Richmond, CA 94804-1630
Telephone: (510) 234-RENT (7368) Fax: (510) 307-8149 www.richmondrent.org
CITY OF RICHMOND RENT PROGRAM
DATE: July 16, 2025
TO: Chair Tipton and Members of the Rent Board
FROM: Nicolas Traylor, Executive Director
Fred Tran, Deputy Director
Monica Bejarano Ecret, Senior Management Analyst
SUBJECT: TENANT BUYOUT AGREEMENT POLICY
STATEMENT OF THE ISSUE:
On September 19, 2018, the Rent Board received a presentation and case study matrix regarding Tenant Buyout Agreements. Subsequently, the Rent Board directed staff to present three policy options, varying in degrees of oversight, at the next Board meeting.
Staff members prepared policy options for the Board’s consideration and sought further direction. At the December 18, 2018, Regular Meeting of the Rent Board, the Board received the Tenant Buyout Agreement Policy Options, and approved policy “Option 3:
High Level of Oversight”. The Board also directed staff to conduct a study session at a meeting of the Richmond City Council and work with City Staff and the City Attorney’s Office to draft a Buyout Agreement Ordinance. The COVID-19 pandemic and negotiations around the Cost Pool Cooperative Agreement delayed plans to bring the approved Tenant Buyout Policy to the City Council for possible adoption. On June 28, 2025, the City of Richmond and Richmond Rent Board/Rent Program entered into a Cooperation Agreement that tasks the Rent Program with administering a Tenant Buyout Agreement ordinance. Since it has been several years since the Rent Board adopted its Tenant Buyout Agreement Policy, the current Board may affirm or modify the previously approved Board’s policy.
RECOMMENDED ACTION:
RECEIVE the previously approved Tenant Buyout Agreement Policy. APPROVE or MODIFY the Board’s previously adopted policy of “High Level of Oversight” (Policy Option 3) and DIRECT staff to: (1) present the Rent Board’s Policy during a study session at a meeting of the City of Richmond City Council and (2) work with the City Attorney’s Office to draft a Buyout Agreement Ordinance. – Rent Program (Nicolas Traylor/Fred Tran 620-6564).
FISCAL IMPACT:
There is no fiscal impact related to this item at this time.
AGENDA REPORT
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July 16, 2025
DISCUSSION:
Background
On September 19, 2018, the Rent Board received a presentation and case study matrix regarding Tenant Buyout Agreements. The Rent Board directed staff to present three policy options, with varying degrees of oversight. Staff members prepared policy options for the Board’s consideration and sought further direction.
At the December 18, 2018, Regular Meeting of the Rent Board, the Board received the Tenant Buyout Agreement Policy Options, approved the “Option 3: High Level of Oversight” policy, and directed staff to conduct a study session at a meeting of the Richmond City Council and work with City Staff and the City Attorney’s Office to draft a Buyout Agreement Ordinance.
Purpose of Buyout Agreement Policies
Tenant Buyout Agreement policies are meant to regulate “Buyout Agreements.” A Buyout agreement occurs when a tenant agrees to voluntarily and permanently vacate their rental unit within a certain period, in exchange for a sum of money.
Cities regulate tenant buyouts agreements to protect tenants from coercion, misinformation, and loss of housing stability—especially in high-demand rental markets.
Below are the main policy reasons for introducing Tenant Buyout regulations:
Preventing Coercion and Harassment
• Issue: Some landlords may pressure or intimidate tenants into accepting buyouts, especially if the tenant has rent control or eviction protections. • Policy Rationale: Regulations help ensure that buyouts are voluntary, not the result of undue pressure or harassment.
Ensuring Informed Consent
• Issue: Tenants often don’t understand their rights, including the value of staying in a rent-controlled or protected unit.
• Policy Rationale: Ordinances typically require that tenants be informed—often in writing—of their rights before signing a buyout agreement. This helps prevent tenants from unknowingly giving up valuable protections.
Helping to Preserve Affordable Housing
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July 16, 2025
• Issue: Buyouts often lead to tenants being displaced and replaced with higher- paying renters, which reduces the availability of affordable units over time. • Policy Rationale: Regulating buyouts helps cities track and potentially limit tenant displacement and the erosion of rent-controlled housing.
Increasing Transparency and Accountability
• Issue: Unregulated buyouts are difficult to track, making it hard for cities to assess their impact or enforce tenant protections.
• Policy Rationale: Many ordinances require landlords to file copies of buyout offers or agreements with the city. This creates a public record and deters bad actors.
Preventing Rent and Eviction Controls from Being Undermined
• Issue: Landlords may use buyouts to bypass lawful eviction restrictions or rent stabilization rules.
• Policy Rationale: Regulating buyouts ensures these agreements aren’t used as workarounds to weaken local tenant protections.
Most Common Regulatory Features of Tenancy Buyout Agreement Policies
• Disclosure Requirements: Landlords must inform tenants of their rights in writing.
• Cooling-Off Periods: Tenants can cancel the agreement within a certain time (e.g., 30 days).
• Registration: Buyout offers and agreements must be filed with the city. • Minimum Buyout Amounts: Requires buyout amounts to be at a minimum equal to the amounts required for permanent relocation payment amount required under a relocation ordinance or law.
• Penalties: Noncompliance can result in void agreements or fines.
Review of Policy Options
At their meeting on September 19, 2018, the Rent Board directed Rent Program staff to develop policy options that provide a varying degree of regulatory oversight of Buyout interactions, ranging from low-level oversight to high-level oversight.
Based on the direction of the Rent Board, Rent Program staff used the previously presented Case Study Matrix, contained in Attachment 2, and conducted additional research to further narrow down eleven integral factors that determine the degree of regulation for the presented policy options. The policy options presented were derived from the Criteria Matrix of Attachment 1 and 2. Of the eleven identified key factors, Rent ITEM G-3
July 16, 2025
Program staff identified four components that should be incorporated into any policy aimed at regulating Buyout Agreements. These components are as follows:
• The Buyout Agreement must be written in the Tenant’s primary language • The Buyout Agreement policy will cover all properties under “Just Cause” • The Buyout Agreement policy must contain Anti-Harassment language • The Tenant will have the right to rescind at any moment, without penalty, if the Buyout Agreement does not comply with the requirements of the regulation.
The remaining seven components are more discretionary and impact the degree of regulation. Those individual components selected by the Rent Board to include in a proposed Buyout Agreement Policy will dictate the level of oversight.
At December 18, 2018, Regular Meeting of the Rent Board, staff members sought specific direction from the Board on the following seven policy questions:
1. Should the Landlord be required to give a Notice of Buyout Rights to the Tenant?
2. Should the Landlord be required to submit a copy of Notice of Buyout Rights to the Rent Board?
3. How many days should the Tenant be given to rescind once the Buyout Agreement is executed?
4. Should there be a minimum payout for a Buyout Agreement?
5. Should the Landlord be required to submit a Buyout Agreement with the Rent Board and if so when?
6. What is the degree of Administrative Enforcement and Duties the Rent Board wishes to adopt?
7. Should there be penalties for violating the Buyout Agreement Policy?
For the Rent Board’s consideration, staff members compiled three policy options based on the 11 integral components. These policy options ranged in degree from low-level oversight to high-level oversight. Although the Rent Board (in 2018) approved Option 3, the current Board may choose to revise the policy further or choose a different option.
Tenant Buyout Agreement Policy Options
Below are the policy options presented to the Board in December of 2018 and for the current Rent Board’s consideration:
Option 1: Low Level of Oversight
The main components of Option 1 are as follows:
1. The Landlord must give a Notice of Buyout Rights to the Tenant before the Buyout negotiation begins.
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July 16, 2025
2. A copy of the Notice of Buyout Rights given to the Tenant must be maintained by the Landlord for five years (and is not required to be filed with the Rent Program).
3. The Tenant has 25 days to rescind an executed Buyout Agreement.
4. This policy option has no minimum payout amount requirement for a Buyout Agreement.
5. The Landlord must file a copy of an executed Buyout Agreement with the Rent Program within 60 days.
6. The Rent Program will maintain a copy of all executed Buyout Agreements.
7. This option does not include penalties for Landlords that fail to conform with the Buyout Agreement Ordinance.
Option 2: Moderate Level of Oversight
1. Prior to engaging in Buyout negotiations, the Landlord must give a Notice of Buyout Rights to the Tenant.
2. If the parties execute a Buyout Agreement, the Landlord must file a copy of the Notice of Buyout Rights with the Rent Program.
3. The Tenant has 30 days to rescind an executed Buyout Agreement.
4. All Buyout Agreements must offer what the Tenant would have received as a Permanent Relocation Payment due to termination of tenancy for Owner Move In, for a two plus bedroom unit as a Qualified Tenant Household.
5. The Landlord must file a copy of an executed Buyout Agreement with the Rent Program within 60 days.
6. The Rent Program will maintain a copy of all executed Buyout Agreements and Notice of Buyout Rights.
7. The Tenant has the right to bring a civil action against the Landlord for actual damages and statutory damages not to exceed $500 dollars per violation.
Option 3: High Level of Oversight
1. Prior to engaging in Buyout negotiations, the Landlord must give a Notice of Buyout Rights to the Tenant.
2. The Landlord must file a copy of the Notice of Buyout Rights with the Rent Program prior to engaging in Buyout negotiations.
3. The Tenant has 45 days to rescind an executed Buyout Agreement.
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July 16, 2025
4. All Buyout Agreements must offer what the Tenant would have received as a Permanent Relocation Payment due to termination of tenancy for Withdrawal from the Rental Market, for a two plus bedroom unit as a Qualified Tenant Household.
5. The Landlord must file a copy of an executed Buyout Agreement with the Rent Program within 60 days.
6. The Rent Program will (a) maintain a copy of all submitted Buyout Agreements and copies of Notice of Buyout Rights; (b) contact the Tenant identified on a submitted copy of a Notice of Buyout Rights; and (c) maintain a database that may be public, showing data on the compensation amount and neighborhood of Buyout Agreements (consistent with State law).
7. The Tenant has the right to bring a civil action against the Landlord for actual damages and statutory damages not to exceed $ 1,000 dollars per violation.
Policy Options Approved by the Rent Board on December 18, 2018 After receiving a presentation on the above-mentioned policy options and debating and discussing those options, the Rent Board unanimously approved a motion to:
1. Present Tenant Buyout Policy option 3 (High Level of Oversight) at a future City Council study session, and
2. Work with City staff to draft a Tenant Buyout Agreement Ordinance that includes the following key provisions:
o Agreements must be in the tenant’s primary language.
o Policy applies to all properties covered by the Fair Rent, Just Cause for Eviction, and Homeowner Protection Ordinance (RMC 11.100). o Agreements must contain anti-harassment language.
o Tenants may rescind agreements at any time without penalty if requirements are not met.
o Landlords must:
▪ Provide tenants with a Notice of Buyout Rights.
▪ Submit a copy of the notice to the Rent Program before negotiations.
▪ Allow 45 calendar days for tenants to rescind after execution. ▪ Provide a minimum payout based on the City’s Relocation Fee Payment Table.
▪ Submit signed agreements to the Rent Program within 20 calendar days.
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o The Rent Program will:
▪ Maintain a public database of buyouts (including compensation amounts and neighborhood, consistent with state law).
▪ Contact tenants identified in submitted notices.
▪ Review agreements for compliance and notify parties if violations are found.
o Penalties include a private right of action for tenants, with damages up to $1,000 per violation.
Anticipated Timeline and Next Steps:
(1) Staff will present the Rent Board’s selected policy option during a study session at a meeting of the Richmond City Council in September of 2025.
(2) Following the study session, if directed by the City Council, the City will work with the Rent Program to draft a Buyout Agreement Ordinance.
(3) Staff will present the draft Buyout Agreement Ordinance to the City Council for potential adoption in October/November of 2025.
DOCUMENTS ATTACHED:
Attachment 1 – Tenant Buyout Agreement Case Study Research and Criteria
Attachment 2 - Tenant Buyout Agreement Policy Matrix
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TENANT BUYOUT RESEARCH - 2025
Jurisitciion
Criteria 1: Is there a
requirement for the
Landlord to give a Notice
of Buyout Rights to the
tenant?
Criteria 2: Is there a
requirement for the
Landlord to submit a copy
of Notice of Buyout Rights
to the Rent Board?
Criteria 3: How many
days does the Tenant have
to rescind once the Buyout
agreement is executed?
Criteria 4: Is there a
minimum payout for a
Buyout Agreement?
Criteria 5: Is there a
requirement for the
Landlord to submit a
Buyout Agreement with
the Rent Board?
Criteria 6: Degree of
Administration and
Enforcement Duties?
Law Website
Berkeley
Yes. Prior to the offer.
Landlords must use a
disclosure of rights prepared
by the Rent Board.
No. But Landlords must
keep the Tenant signed copy
for five years.
30 days. No.
Yes. The Landlord must
submit the Agreement
between the 31st and 60th
day from when the Buyout
Agreement was signed.
Rent Board Retains a copy
of the Buyout Agreement.
Rent Board publishes
statical information about
Buyouts.
Section 13.79.050.
City Council Ordinance
https://rentboard.berkeleyca.gov/laws-
regulations/city-berkeley-ordinances-
affecting-rental-properties/tenant-buyout-
ordinance
Santa Monica
(New rules were passed
since 2018)
Yes. Prior to the offer.
Landlords must use a
disclosure of rights prepared
by the Rent Board.
No. 30 days.
Yes. Not less than what is
required by Santa Monica's
Permanent Relocation
Ordinance SMMC 4.36.040.
(currently $19,100-$39,000)
Yes. The Landlord must
submit the Agreement
between the 31st and 60th
day from when the Buyout
Agreement was signed. Rent
controlled units file with the
Rent Board. Non-rent
controlled units with the
City Clerk.
Violation is a misdemeanor,
and civil infraction
enforcement is through civil
action. Violation may be an
affirmative defense against
an unlawful detainer.
SMMC 4.57.010-.030 https://ecode360.com/44503354
Los Angeles
Yes. Prior to the offer.
Landlords must use a
disclosure of rights prepared
by the Rent Board. (Must be
in the primary language of
the tenant.)
Yes. But submitted with the
Buyout Agreement (i.e. only
one submission).
30 days. No.
Yes. The Landlord must
submit the Buyout
Agreement (and signed
Disclosures) within 60 days
of the Buyout Agreement
being signed.
Affirmative Defense against
eviction. $500 penalty
enforced through tenant by
civil action.
LAMC 151.31
https://housing.lacity.gov/rental-property-
owners/tenant-buyout-notification-
program
San Jose
Yes. Prior to the offer.
Landlords must use a
disclosure of rights prepared
by the Rent Program.
Yes. But submitted with the
Buyout Agreement (i.e. only
one submission).
45 days. No.
Yes. The Landlord must
submit the Buyout
Agreement (and signed
Disclosures) within 30 days
of the Buyout Agreement
being signed.
Rent Board retains a copy of
the Buyout Agreement.
Rent Board publishes
statistical information about
Buyouts.
In the regulations of
17.23.700
https://library.municode.com/ca/san_jose/
codes/code_of_ordinances?nodeId=TIT17
BUCO_CH17.23REDIMEARDWUNEX
MOMOPA_PT2DE_17.23.177TEPROR
Oakland Yes. No.
25 days (unless both parties
agree to no less than 15
days)
Nothing less than what is
required by state or local
law.
Yes. The Landlord must
submit the Buyout
Agreement (and signed
Disclosures) within 45 days
of the Buyout Agreement
being signed.
City retains a copy of the
Buyout Agreement.
Rent Board publishes
statistical information about
Buyouts.
OMC 8.22.700
San Francisco
Yes. Prior to offer.
Landlords must use a
disclosure of rights prepared
by Rent Board.
Yes. Landlords must file a
copy with the Rent Board
and keep a Tenant signed
copy for five years.
45 days. No.
Yes. The Landlord must
submit the Agreement
between the 46th and 59th
day from when the Buyout
Agreement was signed.
City retains a copy of the
Buyout Agreement.
Rent Board publishes
statistical information about
Buyouts.
Sec. 37.9E
ITEM G-3
ATTACHMENT 1
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Tenant “Buyout Agreement”1 Case Study Research
Actively Enforced Rent Programs:
City of Richmond Rent Program
ITEM G-3
ATTACHMENT 2
Jurisdiction Type of Law Applicability Summary of Major Provisions of Tenant Buyout Law Degree of Administrative Duties
Required by Law
(Relative to other case study
jurisdictions)
BERKELEY
Ordinance adopted
by the City Council
(Municipal Code
Section 13.79.050)
All units covered by
the Good Cause for
Eviction provisions in
the Berkeley Municipal
Code, including units
that are exempt from
rent control pursuant
to State law
➢ Before making a buyout offer, a Landlord must give the Tenant a written disclosure of the Tenant’s rights, on a form produced by the Rent Board.
➢ Tenant’s rights required in disclosure include: the right not to enter into a buyout agreement, the right to consult an attorney before signing the agreement, the right to rescind the agreement at any time up to 30 days after signing the agreement, and the right to consult the Rent Stabilization Board regarding the agreement.
➢ The Landlord must file any completed, signed, buyout agreements with the Rent Stabilization Board no sooner than the 31st day after the agreement is signed and no later than 60 days thereafter.
➢ The Landlord must provide a Tenant with a signed copy of the buyout agreement (if executed).
➢ Any person aggrieved by the landlord’s failure to comply with the Ordinance may bring a civil action against the landlord of the residential rental property for all appropriate relief including damages and costs which she or he may have incurred as a result of the landlord’s failure to comply with the Ordinance. In any action to recover damages resulting from a violation of this Chapter, the prevailing plaintiff(s) shall be entitled to reasonable attorneys’ fees in addition to other costs, and in addition to any liability for damages imposed by law.
MODERATE.
The Rent Board retains a copy of all
executed buyout agreements.
The Rent Board’s legal staff maintains
all filed buyout agreements in a file
separate from any other file. All
personally-identifying information is
maintained as confidential.
Information about the amount of
buyout agreements and neighborhood
is made publicly available.
The Board collects data from filed
agreements, including the amount of
compensation and neighborhood of
the rental unit, and makes that data
public.
SANTA
MONICA
Ordinance Adopted
by the Santa Monica
City Council
(Municipal Code
Section 4.56.050(b))
and Rent Board
Regulation 9011
All units covered by
the Rent Control Law
in the City Charter,
including units that
are exempt from rent
control pursuant to
State law
➢ A Landlord must inform a Tenant of certain rights before offering any form of compensation in exchange for a Tenant’s agreement to vacate a rental unit.
➢ Disclosure of rights must be in writing on a form approved by the Rent Board Administrator.
➢ Tenant’s rights required in disclosure include: the right to refuse the agreement and not be retaliated against for doing so, the right to consult a lawyer, and a 30-day right to rescind acceptance of a buyout offer at any time during the 30 days after the Tenant’s acceptance.
➢ The form must also include the amount of relocation fees required by the City’s relocation ordinance, and any other information deemed necessary by the Administrator to effectuate the purpose of Municipal Code Section 4.56.050(b).
➢ The Landlord must file any completed, signed, buyout agreements with the Rent Board no sooner than the 31st day after the agreement is signed and no later than 60 days thereafter.
➢ Tenants shall be provided with a signed copy of the buyout agreement (if executed).
➢ Updated since 2018: A minimum payment amount is required equivalent to the amounts required under its relocation ordinance.
➢ Remedies for violations of the Ordinance include criminal penalties, the right to bring a civil action, as well as additional penalties and monetary awards. Any person who violates or aids or incites another person to violate the Ordinance is liable for each offense for the actual damages suffered by any aggrieved party or for statutory damages in the sum of between one thousand dollars and ten thousand dollars, whichever is greater, and shall be liable for such attorneys’ fees and costs as may be determined by the court in addition thereto. Any violator shall be liable for an additional civil penalty MODERATE.
The Rent Board retains a copy of all
executed buyout agreements.
The Rent Board’s legal staff maintains
all filed buyout agreements in a file
separate from any other file. All
personally-identifying information is
maintained as confidential.
Information about the amount of
buyout agreements and neighborhood
is made publicly available.
The Board collects data from filed
agreements, including the amount of
compensation and neighborhood of
the rental unit, and makes that data
public.
Tenant “Buyout Agreement”1 Case Study Research
Complaint-Driven Rent Programs:
City of Richmond Rent Program 2
ITEM G-3
ATTACHMENT 2
of up to five thousand dollars for each offense committed against a person who is disabled or aged sixty-five or over. The court may also award punitive damages to any plaintiff, including the City, in a proper case as defined by Civil Code Section 3294. The burden of proof for purposes of punitive damages shall be clear and convincing evidence.
Jurisdiction Type of Law Applicability Summary of Major Provisions of Tenant Buyout Law Degree of Administrative Duties
Required by Law
(Relative to other case study
jurisdictions)
LOS ANGELES
Ordinance adopted
by the Los Angeles
City Council
(Municipal Code
Section 151.31)
All units covered by
the Rent Stabilization
Ordinance, including
units that are exempt
from rent control
pursuant to State law
➢ Buyout agreements must be written in the primary language of the Tenant ➢ Landlords must provide specific disclosures to the Tenant about their rights on a City form prior to negotiating a buyout agreement.
➢ Tenant’s rights required in disclosure include: the right to cancel the agreement within 30 days of all parties having signed the agreement, without any obligation or penalty. The required form also includes disclosures regarding the Tenant’s right to reject the offer, the right to consult an attorney or the City, the amount of the City’s relocation payment for no-fault evictions, and the right to rescind the agreement at any time if the buyout agreement does not comply with the requirements set forth in the Municipal Code.
➢ The Landlord must file a copy of the signed and dated Rent Stabilization Ordinance Disclosure Notice and buyout agreement within 60 days of both parties having signed the agreement.
➢ Tenants shall be provided with a signed copy of the buyout agreement (if executed).
➢ Remedies for violations include: Tenant may assert violations as an affirmative defense to an unlawful detainer action; Tenant may also bring a private right of action against a Landlord who violates the Ordinance and recover damages and a penalty of $500.
LOW.
Copies of executed buyout agreements
are retained.
The Housing and Community
Investment Department must retain a
copy of signed agreements.
OAKLAND
Ordinance adopted
by the Oakland City
Council (Municipal
Code Section
8.22.700)
All units covered by
the Residential Rental
Adjustments and
Evictions and Just
Cause for Eviction
Ordinances, except
rental units owned or
operated by a public
entity
➢ If the Tenant is proficient in Spanish or Chinese and is not proficient in English, the owner shall make a copy of the agreement available in their language of proficiency.
➢ Prior to commencing buyout negotiations, Landlords must provide information to the Rent Adjustment Program, on a form prescribed by the Rent Adjustment Program and signed by the owner under penalty of perjury. The form shall include information such as the address of the property where the Landlord intends to offer a buyout agreement and a list of all dates on which the owner initiated other buyout agreements with any current or prior tenants at the property and the rental units occupied by each Tenant.
➢ Prior to commencing negotiations, Landlords must provide specific disclosures to the Tenant about their rights on a City form prior to negotiating a buyout agreement. The Landlord and Tenant must sign the disclosure form, and a signed copy of the disclosure form must be provided to the Tenant within 3 days of execution.
➢ Tenant’s rights required in disclosure include: the right to refuse to accept the buyout agreement, a statement that the Landlord may not retaliate against the Tenant for refusing to enter into a buyout agreement, the Tenant’s right to consult an attorney before entering into an agreement, a statement that offering payments to a Tenant to vacate more than once in 6 months after the Tenant has notified the Landlord in writing that the Tenant refuses to enter into the buyout agreement shall be considered tenant harassment under the Tenant Protection Ordinance, and a statement that the Tenant may rescind the agreement within 25 days of it having been signed by all parties, unless the parties agree in writing to a short rescission period of not less than 15 days.
LOW.
Copies of executed buyout agreements
and retained and the City may make
information publicly accessible.
The city may make the information
included on the disclosure form
publically available, except that the city
may redact information from the forms,
including personal information, to the
extent such redaction is consistent
with Oakland, state, or federal laws or
policy addressing disclosure of
documents or information within the
city's possession or control. The city
does not warrant that information any
party to the move out negotiation or
agreement believes to be private will
not be released.
Tenant “Buyout Agreement”1 Case Study Research
Complaint-Driven Rent Programs:
City of Richmond Rent Program 3
ITEM G-3
ATTACHMENT 2
➢ Disclosure form required by City must also include the amount of relocation payment for no-fault evictions; a statement that assistance may be obtained by contacting the Rent Adjustment Program; a description of when Tenants have a right to return to their Rental Unit under state or local law; a statement that market rate rents in the area may be significantly higher than the Tenant’s current rent, and therefore the Tenant may wish to check rents for comparable Rental Units before accepting the agreement; a statement that payment pursuant to the buyout agreement may be subject to taxation and that the Tenant should consult the appropriate authorities for more (CONTINUED)
information; a statement that buyout agreements that are submitted to the City may be considered public, but that the City will redact sensitive information consistent with City, state, and federal policies. The form must also include the names of all people authorized to conduct buyout agreements on the owner’s behalf, and any other information required by the Rent Adjustment Program consist with the purpose of the Ordinance.
➢ The Landlord must file a copy of the signed and dated Rent Stabilization Ordinance Disclosure Notice and buyout agreement no sooner than the 25th day and no later than the 45th day of both parties having signed the agreement.
➢ The buyout agreement must also contain specific language regarding the Tenant’s rights; next to each statement, there must be a line for the Tenant to initial.
➢ Tenants shall be provided with a signed copy of the buyout agreement (if executed) immediately after execution.
➢ The Ordinance also states that buyout agreements must be for greater than the amount of the relocation payments to which the tenant may be entitled under Oakland, state, or federal law. Move out agreements for less than the amount to which the tenant is entitled in relocation payments constitute a violation of the Ordinance and can be regarded by the tenant as a noncompliant buyout agreement.
➢ Remedies include administrative (e.g. the issuance of administrative citations) and civil remedies. Per the Ordinance, the greater of actual damages or minimum damages of five hundred dollars ($500.00) per violation shall be awarded for an owner's failure to comply with the obligations established under this Article. The greater of treble actual damages or minimum damages of one thousand dollars ($1,000.00) per violation shall be awarded for an owner's willful failure to comply with the obligations established under the Ordinance), and triple the actual damages suffered by the aggrieved Tenants for an owner’s failure to comply with the requirements of the Ordinance when the Tenant of the affected Rental Unit is elderly, disabled, or catastrophically ill.
Tenant “Buyout Agreement”1 Case Study Research
Complaint-Driven Rent Programs:
City of Richmond Rent Program 4
ITEM G-3
ATTACHMENT 2
Jurisdiction Type of Law Applicability Summary of Major Provisions of Tenant Buyout Law Degree of Administrative Duties
Required by Law
(Relative to other case study
jurisdictions)
SAN
FRANCISCO
Ordinance adopted
by the Board of
Supervisors (Section
37.9E of the
Administrative Code)
All units covered by
the Residential Rent
Stabilization and
Arbitration Ordinance,
including units that
are exempt from rent
control pursuant to
State law.
➢ Before making a buyout offer, a Landlord must give the Tenant a written disclosure of the Tenant’s rights, on a form produced by the Rent Board.
➢ Tenant’s rights required in disclosure include: the right not to enter into a buyout agreement, the right to consult an attorney before signing the agreement, the right to rescind the agreement at any time up to 45 days after signing the agreement, a statement that the Tenant may visit the Rent Board for information about other buyout agreements in the Tenant’s neighborhood, a list of Tenant Right’s Organizations and their contact information, a statement that information about tenant’s rights is available at the Rent Board’s office, through its counseling number, and on its website, a statement explaining the legal implications under Section 1396(e)(4) of the Subdivision Code for a Landlord who enters into one or more buyout agreements. If the Landlord is an entity, the disclosure form must also include the names of all people within that entity who will be conducting the buyout negotiations and the names of all people within that entity who will have decision-making authority over the terms of the buyout agreement, and any other information reasonably requested by the Rent Board consistent with the purpose of the Ordinance.
➢ The Landlord must retain a copy of the signed disclosure form for five years, along with a record of the date the Landlord provided the disclosure form to each Tenant.
➢ Prior to making a buyout offer, the Landlord must also provide information to the Rent Board, on a form developed by the Board, including information such as the Landlord’s contact information, the name of each Tenant with whom the Landlord intends to offer a buyout agreement, the address of each rental unit that may be the subject of buyout negotiations.
➢ Buyout agreements must be made in writing and include specific statements regarding the Tenant’s rights to cancel the buyout agreement for up to 45 days after all parties have signed, with information about how to cancel the agreement, and the right to reject the offer. The buyout agreement must also include information about the City’s condominium conversion ordinance and the requirements specific to senior, disabled, or catastrophically ill Tenants. Next to each statement required by the Ordinance to be included in the buyout agreement, there must be space provided for the Tenant to initial.
➢ Buyout agreements that do not meet the requirements of the Ordinance and where the Tenant has not initialed next to each required statement shall be considered ineffective and may be rescinded by the Tenant at any time.
➢ The Landlord must file a copy of the buyout agreement with the Rent Board no sooner than the 46th day after the buyout agreement has been signed by all parties and no later than the 59th day after it has been executed by all parties.
➢ Remedies include the right to bring a civil action against the Landlord for failure to comply with the requirements of the buyout agreement ordinance. The landlord shall be liable for the tenant's damages. In addition, the penalty for a violation HIGH.
Landlords must file a copy of the initial
form with the Rent Board.
Information on the form that a
Landlord must provide to the Rent
Board prior to initiating a buyout
agreement must be made publicly
available, except that the Rent Board
shall redact all sensitive information
regarding the identity of the Tenants.
The Rent Board must maintain a
searchable database of all buyout
agreements.
The Rent Board is required to create a
searchable database with information
received from filings under subsection
(h). The database shall be accessible
to the public at the Rent Board's office
and shall include a copy of filed buyout
agreements. Before posting a copy of
any filed buyout agreements on its
database, the Rent Board shall redact
all information regarding the identity of
the tenants.
The Rent Board must report annually
to the Board of Supervisors on the
implementation of the Ordinance.
The Rent Board shall provide an
annual report to the Board of
Supervisors regarding the
implementation of the Ordinance. The
first report shall be completed by
January 31, 2016, and subsequent
reports shall be completed by January
31 in subsequent years. The report
Tenant “Buyout Agreement”1 Case Study Research
Complaint-Driven Rent Programs:
City of Richmond Rent Program 5
ITEM G-3
ATTACHMENT 2
of subsection (d) shall be up to $500. The penalty for a violation of the requirements of the contents of the buyout agreement shall be up to 50% of the tenant's damages. The court shall award reasonable attorneys' fees to any tenant who is the prevailing party in a civil action. Additionally, a Landlord who has violated the requirement to a file a copy of the buyout agreement with the Rent Board shall pay to the City an administrative penalty of up to $100 per day for each document the landlord failed to file, but in no event shall the landlord's total administrative penalty in a single civil action exceed $20,000. Any administrative penalties collected shall be deposited in the General Fund of the City and County of San Francisco. The court shall award reasonable attorney's fees and costs to the City Attorney or a nonprofit organization that is the prevailing party in a civil action. A tenant may not bring a civil action and the City Attorney or a nonprofit organization may not bring a civil action more than four years after the date of the alleged violation.
shall include, but not be limited to, a
list of all units that have been the
subject of Buyout Agreements that
have been reported to the Rent Board.
The Rent Board shall post each of
these annual reports on its website.
Jurisdiction Type of Law Applicability Summary of Major Provisions of Tenant Buyout Law Degree of Administrative Duties
Required by Law
(Relative to other case study
jurisdictions)
SAN JOSÉ
Ordinance adopted
by the San José City
Council (Part 7 of
Chapter 17.23 of the
Municipal Code) and
Chapter 14 of the
Regulations adopted
by the City Council.
All units covered by
the Apartment Rent
Ordinance, including
units that are exempt
from rent control
pursuant to State law.
➢ Before making a buyout offer, a Landlord must give the Tenant a written disclosure of the Tenant’s rights, on a form produced by the Rent Board.
➢ Content required in disclosure form includes: a statement that the unit is subject to the Apartment Rent Ordinance and Tenant Protection Ordinance and contact information for the Rent Program, a statement that Tenants may request that the Landlord provide a copy of the proposed buyout agreement in the Tenant’s primary language and a box in which the Tenant can make that request, a statement of the Tenant’s right not to enter into the agreement, a statement explaining that the Tenant has the right to seek an attorney prior to and during negotiations for a buyout agreement and can make a counter offer to the buyout agreement, a statement that the Tenant has a right to cancel any buyout agreement within 45 days of the date of execution of the buyout agreement without penalty, a statement that exercising the right to rescind the agreement after the tenant has moved out of the unit will not entitle the Tenant to move back into the unit, and a statement that the Tenant may be entitled to relocation benefits due to certain terminations of tenancy, and that the tenant may contact the Rent Program for more information.
➢ Buyout agreements must be made in writing and the Tenant may request that the Landlord provide the Tenant with a translated copy of the buyout agreement. The buyout agreement must contain a statement that the Tenant has the right to refuse the buyout agreement, that they may choose to speak with an attorney before signing the agreement, that they may consult the City Housing Department prior to signing the agreement, and that the Tenant may rescind the agreement within 45 days of signing the agreement without penalty, with instructions for cancelling the agreement by sending a signed and dated notice to the Landlord by U.S. mail that the Tenant is cancelling the agreement.
➢ The Landlord must provide a copy of the executed buyout agreement to all Tenant signatories upon execution.
➢ The Tenant has the right to rescind a buyout agreement if (1) less than 45 days have passed since the parties signed the agreement; (2) the Landlord has failed to comply with the buyout offer requirements in the Regulations; or (3) any other circumstances under State and/or Federal law that would permit the rescission of a contractual agreement.
➢ The Landlord must file a copy of the buyout agreement with Rent Program staff within 30 days from the date the Landlord and Tenant signed the agreement.
LOW.
Copies of executed buyout agreements
are retained.
Buyout agreement shall be maintained
in a separate file and the City must
maintain the Tenant’s personal
identifying information as confidential
and in a manner consistent with State
law. Staff may collect data from the
buyout agreements, including, but not
limited to, the amount of
compensation paid.