November 4, 2025
Rent Program
DATE: November 4, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Nicolas Traylor, Rent Program Executive Director
Lina Velasco, Director of Community Development
Subject:
Recommendation to Establish Tenant Buyout Agreement
Regulations
FINANCIAL IMPACT: There is no fiscal impact on receiving this item.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
On July 16, 2025, the Richmond Rent Board approved a
recommendation to the Richmond City Council to
regulate Tenant Buyout Agreements or “Cash for Keys”
arrangements - using a “High Level of Oversight” Tenant Buyout Agreement Policy (Policy Option 3). The purpose of this report is three-fold: (1) to discuss the policy options presented to the Rent Board and (2) seek
Council approval to affirm (or modify) the Rent Board’s recommended policy, and (3) direct the City Attorney to work with Rent Program staff to draft a Tenant Buyout
Agreement Ordinance.
RECOMMENDED ACTION: RECEIVE a presentation of the various oversight options for a Tenant Buyout Agreement Regulations, including
the Rent Board’s recommended “Option 3: High Level of
Oversight,” and DIRECT the City Attorney’s Office to
work with the Rent Program to draft a Tenant Buyout
Agreement Ordinance incorporating the High-Level
Oversight features contained in policy Option 3 and with Community Development to conduct tenant and landlord
community engagement to inform the proposed final
AGENDA
REPORT
November 4, 2025
ordinance – Richmond Rent Program (Nicholas
Traylor/Lina Velasco 510-234-7368).
DISCUSSION:
What is a Tenant Buyout Agreement and why are they offered to Tenants? A Tenant Buyout Agreement, often called “Cash for Keys” is a voluntary contract between a landlord and tenant in which the tenant agrees to vacate a rental unit in exchange for money or other compensation.
Why Landlords offer buyouts:
1. To avoid eviction proceedings and restrictions related to performing “no fault” evictions
o “No Fault” Evictions (e.g., Owner Move-In, Ellis Act withdrawal, or a government order to vacate) can be time-consuming, costly, legally challenging and result in restrictions related to rent levels and re-renting when the rental unit comes back on the market in the future. o A buyout offers a quicker, less adversarial path to vacancy.
2. To prepare property for redevelopment or sale
o Vacant units are often easier to sell or redevelop. Buyers typically pay more for a building without current tenants, especially if there are rent and eviction protections.
3. To increase rental income
o In rent-controlled jurisdictions (i.e., Richmond), landlords cannot raise rent significantly while a protected tenant remains.
o If a protected tenant living in a controlled rental unit accepts a buyout and vacates the unit, the landlord may reset the rent to market rate (subject to state laws like Costa-Hawkins).
4. To manage problematic situations
o Sometimes landlords view buyouts as a way to resolve conflicts or remove tenants they believe are difficult, without engaging in lengthy legal disputes.
Why buyouts can be problematic:
Tenants may feel pressured, misled, or not fully informed of their rights (e.g., that they do not have to accept a buyout, they have eviction protections under the Fair Rent/Just Cause Ordinance, or that staying provides long-term rent stability). Vulnerable tenants (e.g., seniors, immigrants, low-income households) may accept less compensation than they are entitled to, leading to displacement and loss of more affordable housing.
Without regulation, buyouts can undermine rent control and just-cause eviction protections.
Many cities including San Francisco, Oakland, Berkeley, San Jose, and Los Angeles, have adopted tenant buyout agreement ordinances, requiring written disclosures,
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rescission periods, language access, and the filing of agreements with the city or Rent Program for oversight.
SUMMARY OF POLICY RATIONALE FOR REGULATION OF TENANT BUYOUT
AGREEMENTS
The City Council should consider the following policy rationale for regulating Tenant Buyout Agreements in Richmond in considering the adoption of a Tenant Buyout Agreement Ordinance:
Preventing Coercion & Harassment: Unregulated buyouts can enable landlords to pressure tenants, especially those in Rent-Controlled Units into surrendering rights via intimidation or misinformation. Ensuring Informed Consent: Tenants may not understand their protections or the long-term value of remaining in rent-controlled housing. Mandatory disclosures ensure awareness of rights and alternatives. Protecting Affordable Housing Supply: Buyouts may displace protected tenants, replacing them with higher-rent occupants, decreasing the affordable housing stock over time.
Aligning with Regional Best Practices: Many Bay Area cities have already adopted such policies to ensure transparency and accountability.
CASE STUDY ANALYSIS SUMMARY
Rent Program staff reviewed and assessed tenant buyout agreement regulations in the cities of Berkeley, Santa Monica, Los Angeles, Oakland, San Francisco, and San José.
Below are the key findings
Common elements across jurisdictions:
1. Required written disclosure (on tenant rights associated with buyouts) on a standardized form before offering buyouts, covering rights to reject, right to seek counsel, and rescind within a specified period. Forms may also disclose relocation amounts.
2. Rescission periods ranged from 25 to 45 days after signing.
3. Requirement to file executed buyout agreements with the City within 30 to 60 days.
4. Enforcement mechanisms or penalties for non-compliance.
Unique provisions in select jurisdictions:
Los Angeles: Agreements must be in tenant’s primary language. Oakland: Agreements must exceed relocation payment amounts; language accommodations for tenants (Spanish/Chinese).
San Francisco: Requires pre-offer filing of forms with specific tenant/unit data, maintains a searchable (redacted) database, and annual reporting to the Board of Supervisors.
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These provisions informed the design of Option 3, which is the Richmond Rent Board’s recommended oversight level for the ordinance.
SUMMARY OF POLICY OPTIONS
Option Oversight
Level Key Features
Option 1 –
Low Oversight Minimal
1.The Landlord must give a Notice of Buyout Rights to
the tenant before the buyout negotiation begins.
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
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
Oversight
Moderate
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 (currently $21,009.41).
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
Oversight
High 1. Prior to engaging in Buyout negotiations, the landlord must give a Notice of Buyout Rights to the tenant.
November 4, 2025
Option Oversight
Level Key Features
(Rent Board
approved)
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.
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 (currently $21,009.41).
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.
The main differences between the three options lie in the level of tenant protections, landlord obligations, and Rent Program/City involvement. Option 1 establishes the least oversight, requiring only that landlords provide tenants with a notice of rights and file the executed agreement with the Rent Program within 60 days, with no minimum payout amount, shorter rescission period, and no enforcement penalties. Option 2 introduces moderate protections by extending the rescission period, requiring minimum payments for larger units, mandating post-execution filing, and granting tenants the right to sue for modest damages. Option 3 represents the highest level of oversight, with stricter procedural requirements such as filing notices before negotiations, a longer rescission period, minimum payouts equal to or greater than permanent relocation payments for Withdraw from the Rental Market for a 2 bedroom plus Rental Unit, stronger enforcement through higher statutory damages, and a more active Rent Program role in monitoring and potentially publishing buyout agreement data.
UNREGULATED BUYOUTS CAN LEAD TO CIRCUMVENTION OF THE FAIR RENT
JUST CAUSE FOR EVICTION AND HOMEOWNER PROTECTION ORDINANCE (HEREAFTER “RICHMONDRENT ORDINANCE”) AND RICHMOND RELOCATION
ORDINANCE
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Unregulated tenant buyouts can function as a loophole that allows Landlords to circumvent the protections built into the Richmond Rent Ordinance. When a landlord offers a tenant a buyout without oversight, the landlord can secure vacant possession of a unit without having to comply with the strict procedural requirements and compensation obligations tied to Owner Move-In (OMI) evictions or Withdrawal from the Rental Market (Ellis Act). In doing so, the landlord gains a Rental Unit they can re-rent at a much higher market rent or sell at a higher value because it is vacant, while avoiding the higher relocation payments, advance notice periods, and Rent Program oversight that those no-fault eviction processes require. For the tenant, accepting an unregulated buyout offer often means receiving less compensation than they would otherwise be entitled to under the Relocation Ordinance, losing time to consider the decision or seek advice, and forfeiting legal protections designed to prevent displacement (e.g., senior and disabled tenants may be protected from no-fault evictions if they have lived in the rental unit for more than 5 years). They may also unknowingly give up their right to challenge an eviction or remain housed until the landlord complies with legal requirements. Tenants who are not fully informed of their rights under the Richmond Rent Ordinance, may accept a buyout offer rather than opting to let the landlord use a “no-fault” Just Cause for Eviction such as an Owner Move-In or Withdrawal from the rental market to gain possession of the rental unit which in most cases would give the tenant the right to return to the unit at the same rent they were paying before vacating. In effect, unregulated buyouts shift power toward landlords by allowing them to sidestep obligations, while tenants often under financial or informational pressure end up with less protection, less compensation, and fewer housing options than the law provides.
RENT BOARD RECOMMENDS OPTION 3 TO PROVIDE GREATEST PROTECTION
AGAINST CIRCUMVENTION OF THE RICHMOND RENT ORDINANCE AND
RICHMOND RELOCATION ORDINANCE
The Richmond Rent Board recommends Option 3 because its stricter procedural requirements provide the greatest protection against circumvention of the Richmond Rent Ordinance and Richmond Relocation Ordinance. For example, requiring filing of notices before negotiations ensure tenants are informed of their rights at the very outset, preventing Landlords from starting discussions without transparency. A longer rescission period gives tenants more time to fully consider the implications of a buyout and seek legal or housing counseling advice, reducing the likelihood of hasty decisions made under pressure. Option 3 ensures that tenants are compensated at a level consistent with the most disruptive displacement scenarios, deterring Landlords from using buyouts as a cheaper workaround by providing minimum payouts to the permanent relocation assistance required for withdrawal from the rental market.
Stronger enforcement mechanisms such as higher statutory damages create real financial consequences for violations and incentivizing compliance. Finally, a more active role for the Rent Program in monitoring, recordkeeping, and periodically publishing tenant buyout data, increases accountability, discourages abusive practices, and helps identify patterns of displacement that could otherwise go unnoticed. Together,
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these elements can help ensure that buyout agreements cannot be used as a backdoor to avoid the protections established by Richmond’s Rent and Relocation ordinances.
COOPERATION AGREEMENT BETWEEN RENT PROGRAM AND CITY OF
RICHMOND
Per the Cooperation Agreement executed between the City of Richmond and the Richmond Rent Program, the Rent Program agrees to administer certain City ordinances, including a Tenant Buyout Ordinance, in lieu of paying cost pool charges for services provided by the City of Richmond’s central service departments. The Richmond Rent Program currently administers the City Council adopted Relocation Ordinance on behalf of the City of Richmond. The Rent Program has sought and received feedback from the Community Development department in putting this report together. If the Council approves a tenant buyout policy, the new policy/law will be drafted collaboratively and implemented by the Rent Program.
HOW WOULD THE RENT PROGRAM ADMINISTER A TENANT BUYOUT
ORDINANCE?
In consideration of the Cooperation Agreement with the City of Richmond, which tasks the Rent Program with developing and administering certain City ordinances, the Rent Program’s fiscal year 2025-26 budget includes staffing resources necessary to develop and administer a Tenant Buyout Ordinance. Assigned Rent Program staff would engage in the following activities to enforce the new law:
1. Develop Mandatory Disclosure forms (Notice of Buyout Rights) and informational outreach materials (Buyout Rights and Responsibilities educational materials).
2. Conduct educational workshops/webinars. Develop and provide micro- workshops (informational videos) on rights/responsibilities under a Tenant buyout ordinance.
3. Provide housing counseling for Landlords/Landlord agents and Tenants on rights and responsibilities under a Tenant buyout ordinance.
4. The Rent Program would be responsible for maintaining the buyout agreements as public records, keeping all personally identifying information confidential.
Periodically, the Rent Program would publish buyout trends by neighborhood.
5. The Rent Program would present annual tenant buyout data to the Rent Board and City Council as part of the Rent Program’s Annual Report.
RENT BOARD RECOMMENDATION
The policy options presented in this report were presented to the Rent Board on July 16, 2025, in public session and previously to the Rent Board in December of 2018 . The 5- member Rent Board in both cases, unanimously approved policy Option 3: High Level of Oversight. Option 3: High Level of Oversight aligns with goals and purpose of Richmond’s Fair Rent, Just Cause for Eviction and Homeowner Protection Ordinance as it helps
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prevent circumvention of the Richmond Rent Ordinance and Richmond Relocation Ordinance.
NEXT STEPS
If the City Council approves moving forward with a Tenant Buyout Ordinance and provides direction on the oversight option, staff members from the City of Richmond and Richmond Rent Program will develop a work plan that shall include the following:
(1) Collaboration between the City Attorney’s Office and the Rent Program’s Legal Unit to draft a proposed Tenant Buyout Ordinance.
(2) Collaboration between the City’s Community Development Department and Rent Program staff members to conduct community engagement, which shall include outreach to renters, landlords, tenant advocacy groups, property managers, etc. A minimum of three community meetings will be held, with childcare and Spanish translation, to gather input on the draft ordinance. One meeting shall take place in the afternoon, and two meetings shall take place in the evenings; all meetings shall include Zoom/in-person options.
(3) Collaboration with Community Development, Internal Services Departments, City Manager’s Office, and the Rent Program to plan the implementation and ongoing administration of the proposed ordinance. A Tenant Buyout Ordinance would be a City of Richmond ordinance administered by the Richmond Rent Program. Collaboration between the Rent Program and the City of Richmond is essential to ensure proper development and implementation.
ATTACHMENTS
Attachment 1: Rent Board Agenda Packet, December 19, 2018 - Policy Options & Matrix
Attachment 2: Rent Board Agenda Packet, July 16, 2025 - Policy Options & Matrix Attachment 3: Case Study Matrix & Key Criteria (from December 19, 2018 presentation) Attachment 4: Cooperation Agreement (June 2025)
Attachment 5: PowerPoint Presentation (DRAFT)