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Item 06 2024-01258 Ordinance Amendment - Tenant Protection Chapter 5.156

Law and Legislation Committee
October 15, 2024

Document
Item 06 2024-01258 Ordinance Amendment - Tenant Protection Chapter 5.156
Meeting
October 15, 2024
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Law and Legislation Committee
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3
Original file
1.2 MB
Text extracted from the city's file for reading and search. Open the original on sacramento.granicus.com. That file is the official record.

City of Sacramento
Law and Legislation Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01258 10/15/2024 Discussion Item 6.

Ordinance Amendment: Tenant Protection Chapter 5.156
File ID: 2024-01258
Location: Citywide
Recommendation: 1) Review amendments to the Tenant Protection Ordinance, Chapter 5.156 of the Sacramento City Code; and 2) pass a Motion forwarding the Ordinance to City Council for consideration.

Contact: Peter Lemos, Code and Housing Enforcement Chief, (916) 808-8183, [email protected], Community Development Department Presenter: Peter Lemos, Code and Housing Enforcement Chief, (916) 808-8183, [email protected], Community Development Department Attachments:
1-Description/Analysis
2-Ordinance - Redlined version
3-Ordinance - Clean version
Description/Analysis
Issue Detail:

Tenant Protection and Relief Act
On August 13, 2019, the City Council adopted the addition of Chapter 5.156, the Tenant Protection and Relief Act. The Tenant Protection Program (Program) was established to assist residential tenants with increasing rental rates by establishing limits on annual rent increases and, for long term tenants, to provide protection from unwarranted lease termination.

While the program went into effect September 2019, due to statewide eviction moratoriums that were put in place because of COVID, the program did not initiate until the moratoriums expired on September 30, 2020 (although certain aspects of the moratoriums were extended through June 30, 2021).

Per direction from the City’s Housing Element, the City collected data via surveys and conducted

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File ID: 2024-01258 10/15/2024 Discussion Item 6.
interviews with interest groups to review the effectiveness of the Program to propose changes that would strengthen the effectiveness of the Ordinance. Upon review of the collected data and with direction from the Law and Legislation Committee at the September 17, 2024 meeting, the proposed amendments include:
· Clarifying the existing ordinance with definitions;
· Providing clear language regarding registration; and
· Extending the Ordinance from the current sunset date of December 31, 2024 to December 31, 2029.

The five year extension will allow for the implementation of an educational program for tenants and landlords, consistent methods of data collection and reporting, and additional time to consider further amendments to increase the effectiveness of the ordinance.

Policy Considerations: The following Housing Element policies and programs support staff’s proposed Ordinance modifications:
· H-5.2 Strengthen Tenant Protections. The City shall explore options to strengthen eviction prevention, limits on annual rent increases, and tenant relocation measures. · Program H25. Sacramento Tenant Protection Act. The City shall conduct outreach to raise awareness by tenants and landlords of the requirements and rights afforded to them under the Sacramento Tenant Protection Act (Sacramento City Code Chapter 5.156). The City shall collect data to review the effectiveness of the current ordinance and consider changes that would strengthen the effectiveness of the current ordinance.

Economic Impacts: Eviction protections and rental increase limits can provide economic stability for our most vulnerable renter populations.

Environmental Considerations: This report is an administrative activity that does not result in a direct or indirect physical change to the environment. Therefore, this action is exempt from environmental review under CEQA per the CEQA Guidelines section 15378(b)(5).

Sustainability: There are no sustainability considerations applicable to amending Sacramento City Code Chapter 5.156 related to tenant protection.

Commission/Committee Action: Staff presented amendment changes at the September 17, 2024 Committee meeting and received comments in favor of extending the sunset date for an additional five years.

Rationale for Recommendation: Both tenants and landlords have expressed support for extending the existing tenant protection program. Committee members recommended a 5-year extension to the program to align it with the timing of state tenant protection legislation and to continue evaluating the

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File ID: 2024-01258 10/15/2024 Discussion Item 6.
effectiveness of the program.

Financial Considerations: Not applicable.

Local Business Enterprise (LBE): Not applicable.

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1 ORDINANCE NO.

Adopted by the Sacramento City Council
[Date Adopted]
AN ORDINANCE AMENDING SECTIONS 5.156.020, 5.156.080, AND 5.156.150 OF

THE SACRAMENTO CITY CODE, RELATING TO TENANT PROTECTION BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

A. A definition of “substantial repairs” is added to section 5.156.020 of the Sacramento City Code to read as follows:
“Substantial repairs” has the same meaning as “substantially remodel” in California Civil Code section 1946.2, subdivision (b)(2)(D)(ii).

B. Except as amended by subsection A above, all provisions of section 5.156.020 remain unchanged and in full effect.

SECTION 2.

Section 5.156.080 of the Sacramento City Code is hereby amended to read as follows:

5.156.080 Tenant protection program registration and fee.

On an annual basis, Aall landlords with rental units that are subject to this chapter shall register those units on the rental housing registry by submitting a completed registration form made available by the city and pay the tenant protection program fee as established by the city council on an annual basis. The tenant protection program fee is to fund the city's cost to implement and enforce the provisions of this chapter.

SECTION 3.

Section 5.156.150 of the Sacramento City Code is hereby amended to read as follows:

5.156.150. Sunset date.

This chapter shall remains in effect until December 31, 2024 2029, and on that date this chapter is repealed.

1 ORDINANCE NO.

Adopted by the Sacramento City Council
[Date Adopted]
AN ORDINANCE AMENDING SECTIONS 5.156.020, 5.156.080, AND 5.156.150 OF

THE SACRAMENTO CITY CODE, RELATING TO TENANT PROTECTION BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

A. A definition of “substantial repairs” is added to section 5.156.020 of the Sacramento City Code to read as follows:
“Substantial repairs” has the same meaning as “substantially remodel” in California Civil Code section 1946.2, subdivision (b)(2)(D)(ii).

B. Except as amended by subsection A above, all provisions of section 5.156.020 remain unchanged and in full effect.

SECTION 2.

Section 5.156.080 of the Sacramento City Code is hereby amended to read as follows:

5.156.080 Tenant protection program registration and fee.

On an annual basis, all landlords with rental units that are subject to this chapter shall register those units on the rental housing registry by submitting a completed registration form made available by the city and pay the tenant protection program fee established by the city council. The tenant protection program fee is to fund the city's cost to implement and enforce the provisions of this chapter.

SECTION 3.

Section 5.156.150 of the Sacramento City Code is hereby amended to read as follows:

5.156.150. Sunset date.

This chapter remains in effect until December 31, 2029, and on that date this chapter is repealed.

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