DATE: APRIL 4, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, DIRECTOR
THROUGH: ROD POWELL, PLANNING MANAGER
BY: BEATRIZ TRUJILLO, COMMUNITY DEVELOPMENT ANALYST
TITLE: RESIDENTIAL RENTAL REGISTRATION
RECOMMENDED MOTION:
A motion to:
adopt an Ordinance amending Chapter 17 (Housing) of the Salinas Municipal Code by adding Article I to incorporate Residential Rental Registration requirements for residential rental units; and approve a Resolution amending the City of Salinas Schedule of Fees and Charges for City Services to incorporate applicable Residential Rental Registration fees, authorizing the establishment of a Residential Rental Registration enterprise fund with corresponding revenue and expense budget in the amount of four hundred thousand dollars ($400,000) for a Residential Rental Registration Program, and authorizing the appropriation of all Residential Rental Registration fees collected to the Residential Rental Registration enterprise fund.
EXECUTIVE SUMMARY:
The City has adopted the Salinas Plan and the Alisal Vibrancy Plan which both call for a Rental Registration and Inspection Program. Rental registration programs are often used by local jurisdictions as a tool to promote community health and safety through the identification of residential rental units and corresponding up to date emergency contact information. This minimally collected information is also vital in supporting cities in: 1) assessing current rental housing stock and future rental housing need, 2) developing and implementing required Housing Elements in support of the additional production of rental units, and 3) providing a robust platform for much-needed Fair Housing services, such as linkages to mediation assistance, access to potential rental support and landlord incentives, and relevant information regarding applicable legislation and regulations and locally available resources.
Since 2018, staff have convened 22 meetings with a broad, representative group of community stakeholders to discuss various proposals and solicit feedback on potential program models, mandates, service components, and funding sources. Based upon the results of these community consultation efforts, as well as guidance received from the Housing Policy Technical Advisory Committee (TAC), a proposed program model focusing on a Residential Rental Registration has been developed. Additional TAC recommendations included the deferral of any rental inspection component until appropriate safeguards and resources are in place to prevent potential displacement or support required relocation. The proposed Residential Rental Registration Program that would result from an adopted Ordinance is designed to incorporate additional cost-neutral landlord and tenant benefits and appropriate dedicated staffing when fully operational.
BACKGROUND:
The proposed Rental Registration Ordinance is derivative of community feedback offered and inclusive of preferred service concepts brought forward from the City’s adopted Salinas Plan in 2018. Initially conceptualized as a Rental Registration and Inspection Program (Salinas Plan Item NR05) with the expressed intent of helping to improve the quality of the City’s rental stock and a potential revenue source for Code Enforcement staff. Following adoption of the Salinas Plan, the City engaged its author, the National Resource Network (NRN), to assist in the design of an initial program. In August 2019, as part of this work, NRN held a community meeting to solicit public input on the proposed program. Based upon initial feedback received and concerns brought forward regarding potential displacement that might result from a proposed inspection component, the City opted to establish a Housing Policy Technical Advisory Committee (TAC) comprised of community advocates, housing developers, property managers, and private sector professional organization representatives to assist in formulating an equitable, acceptable model.
Upon its inception, CDD staff convened several progressive meetings with the TAC from December 2019 through to the onset of the Covid-19 pandemic in March 2020. Concurrent to these initial TAC discussions in February 2020, Council also adopted the Alisal Vibrancy Plan (AVP) and its recommendation to establish a Rental Registration and Inspection Program (Items HN 2.2a, 3.1a). Following a reduction of Covid cases and relaxation of widely imposed contact restrictions, TAC discussions resumed via teleconferencing in April 2021 and continued through December 2021. On January 18, 2022, staff presented a proposed model for the rental registration program outlining the program’s design, fees, and budget and received direction from Council to draft an ordinance based on the proposed model, but to conduct additional outreach before returning.
DISCUSSION:
Following direction provided by Council in January 2022, staff, in consultation with external counsel, moved forward to create a first draft of the proposed Residential Rental Ordinance. TAC members received an initial presentation of the draft Ordinance on July 27, 2022 and were encouraged to share and solicit input from additional stakeholders and provide written comment in anticipation of additional discussions with the Community Development Department Director and CDD Housing and Code Enforcement Division staff. To facilitate general awareness and solicit additional public input, CDD Housing Division staff also presented information in a series of four (4) public meetings held in February and March 2023.
Throughout the development of the Residential Rental Registration Ordinance, TAC and AVP stakeholders have provided varying opinions and levels of support for a Residential Rental Registration Ordinance and program. Assumed stances have essentially aligned with one of the following options:
support for the implementation of a full-service Residential Rental Registration and Inspection Program as recommended by in the City’s adopted Salinas Plan and AVP no support for any type of program whatsoever – whether Registration only or Registration and Inspection support for a limited Residential Rental Registration Program with no inspection component.
The proposed Ordinance and Resolution represents a consensus of compromise from TAC members representing both landlords and tenants within the City’s jurisdictions. It also should be noted that earlier community meetings resulted in widespread fear of displacement and increases in rent should an inspection program be implemented.
Ordinance Overview
CDD’s Housing and Community Development Division will assume administrative responsibility and provide Residential Registration Program staffing as part of its Fair Housing services. Following an initial start-up period and the use of previously dedicated funding approved by Council, fees will be collected in accordance to the Ordinance’s proposed Fee Schedule and subsequent applicable revisions of the City’s Fee Schedule for program-restricted uses and supports, thus eliminated the need for any General Fund support.
Units Requiring Registration:
All residential rental properties including single family and multi-family residences and non-owner occupied Accessory Dwelling Units (ADUs). Vacant, on-market, units will require registration in anticipation of imminent occupancy.
Exempted Units:
Subsidized Residential Rental Units/Affordable Deed Restricted Units Owner-occupied ADUs
Mobile Home Spaces
Required Information Collected:
Landlord name, address, phone number and email
Assessor’s Parcel Number (APN) and Street Address of each rental unit Number of bedrooms and bathrooms and square footage of each rental unit Business License number, where applicable
Property Manager name, address, phone number and email, if applicable Optional Information Collected:
Monthly rent charged for each rental unit and specific utilities included, if applicable General occupancy status of each rental unit (vacant or occupied) Rental subsidy (housing voucher, etc.) received for each rental unit, if applicable Fees:
The proposed Resolution related to fees associated with implementation of a Residential Rental Registration Ordinance would establish an initial, annual fee structure with amounts based upon the total number of rental units associated with an individual parcel.
Number of Units per Parcel
Annual Registration Fee
1 $20.00
2-4
$35.00
5-9
$60.00
10-24
$75.00
25-49
$120.00
50-99
$225.00
100+
$350.00
*A Late Fee of 10% per month may be applied for failure to register applicable units within established application and renewal periods Rental Registration Program
CDD’s Housing and Community Development Division will assume administrative responsibility and provide Residential Registration Program staffing as part of its Fair Housing services platform.
Following an initial start-up period and the use of remaining available funding previously allocated by Council, the proposed Fee Resolution and schedule are intended to create a cost-neutral program supported by the collection of annual fees that would then be directed back to support the Program’s staffing, systems and services, thus eliminating the need for any General Fund support. However, based upon perspective obtained from other jurisdictions, initial years of implementation of similar programs in other jurisdictions have often resulted in lower than anticipated revenues and additional sources of funding may be necessary. In consideration of a potentially low collection of initial revenue, staff have identified other potential fundings sources, such as CDBG, that may be leveraged in support of initial operations.
Budget:
Description
Proposed Budget
Planning Manager – (0.05 FTE)
$11,497.33
Community Development Analyst – (1.0 FTE)
$158,720.21
Administrative Analyst – Housing (1.0 FTE)
$119,488.51
Software & Systems Supports
$10,000.00
Tenant/Landlord Services & Resources
$100,000.00
Total
$399,706.05
Implementation timeline:
The proposed Rental Registration Program is planned to operate in tandem with the City’s July 1-June 30 fiscal year calendar under the initial implementation timeline.
Year 1 Implementation
FY 2023-24
Year 2 Operations
FY 2024-25
Registration
July 1 – September 30, 2023
July 1 – July 31, 2024
Late Notice Issuance
October 1 – November 14, 2023
August 1, 2024
Late Fee Assessment
November 15, 2023
September 14, 2024
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
The proposed Residential Rental Registration Ordinance and accompanying Fee Resolution each support the City of Salinas Strategic Plan 2022-2025 Goals and Strategies of including Economic Development, Housing/Affordable Housing, and Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
Significant coordination and engagement with internal and external City partners have served as a foundation to the development of the proposed Ordinance and Fee Resolution. Ongoing, multi-year engagement of stakeholders, community advocates and professional have been essential in formulating a viable, mutually acceptable proposal. Notable internal contributions have come from CDD’s Housing and Code Enforcement Divisions and internal IT staff, Fire Department Prevention staff, and the City Attorney.
FISCAL AND SUSTAINABILITY IMPACT:
Implementation of the proposed Ordinance is intended to be cost-neutral and self-funded through the collection of annual fee revenues and with no intended impact to the General Fund. The approval of this resolution will require the creation of a new Residential Rental Registration enterprise fund to ensure revenue and expenses are appropriated as legally required by the State of California.
ATTACHMENTS:
Ordinance – Residential Rental Registration
Resolution – Residential Rental Registration Fees and Enterprise Fund PowerPoint – Residential Rental Registration
Page | 3
Page | 1
CITY OF SALINASCOUNCIL STAFF REPORTCITY OF SALINASCOUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT