Rent Stabilization and Tenant Protection
August 20, 2024
Salinas City Council
1 Community Development Team
Housing
Cassandra Orozco
Cristina Gonzalez
Francisco Brambila
Luis Ochoa
Luis Rodriguez
Monica Flores
APPI
Monica Gurmilan
Crystal Casillas
SORT
Karina Vasquez
Jennifer Torres
Brenda Mendiola
Cesar Ayala
Destiny Villa
Mark Gallegos
Leslie Ruvalcaba
2 Community Engagement
Public process began on October 24, 2023
Housing and Land Use Committee Meetings
TAC Meetings: April 30, May 15, May 29, and July 17, 2024 Community Listening Session: June 6, 2024
Community Engagement Meetings: June 13, 2024; August 1, 2024 Notices sent directly to the Housing Division’s Distribution list (162 individuals) Community Relations: Notices distributed through social media and other platforms for a total engagement/reach of 28,986 users 932 individuals signed up to receive direct notifications Local media have covered the City’s progress on this program 3 Purpose of Meeting; Agenda
Review Rent Stabilization Ordinances and Program
Receive report from Economic & Planning Systems, Inc.
Receive questions, comments, and direction from the City Council 4 Purpose and Intent of Program
Rent Stabilization and Tenant Protections are intended to protect residential tenants from unreasonable rent increase and to protect tenants from arbitrary, discriminatory, or retaliatory evictions At the same time assure landlords the right to a fair return 5 Rent Stabilization:Costa-Hawkins
Power to establish rent control is limited by the Cost—Hawkins Rental Housing Act (January 1, 1995) Restricts the powers of cities:
Cities may not create rent control for single-family homes, condominiums, and multi-family housing first occupied after February 1, 1995 Prevents ”vacancy control” in all types of housing: Allows landlords to raise the rent to market rate when the tenant moves out 6 Rent Stabilization Ordinance
Applies to:
All Rental Units, unless exempt
Multifamily dwelling units building BEFORE February 1, 1995 Mobile homes
Exempt:
Single-family rentals
Condominium rentals
Rental units which are deed restricted as affordable
Multifamily dwelling units built AFTER February 1, 1995 Institutional and transient guest units
7 Rent Stabilization Ordinance, continued
Limits on Rent Increases: Tenant Protection Act of 2019 Allows up to 2 rent increases per 12-month period
Combined, must be less than 5% + CPI or 10%
8 Rent Stabilization Ordinance, continued
Limits Rent Increases
One increase per 12-month period
Maximum amount of increase:
2.5% to 2.75% or 65% to 75% of the Consumer Price Index for All Urban Consumers (CPI-U) Series Title: All items in West urban, all urban consumers, not seasonally adjusted Retroactive to December 31, 2023
9 Rent Stabilization Ordinance, continued
Allows landlord/owner to petition for relief to receive a fair and reasonable return Allows tenants to petition for rent reductions if rent is charged in excess of the ordinance limits Hearing Officer will review; Subject to appeal to the City Council Allowance for capital Improvements
10 Rent Stabilization Ordinance, continued
Adds a definition for “Housing Services”
Amenities and services provided by the Landlord, including parking and utilities A reduction in Housing Services is considered a rent increase Pass through of utility costs
Rent increases not permitted
Failure to comply with Ordinance
Rental Unit not maintained in habitable condition
Notice of Ordinance protections must be provided (English and Spanish) Rent Program Fee imposed on Rental Units
Fee to be set by Resolution of the City Council
11 Prop 33: Prohibit State Limitations on Local Rent Control Initiative “Justice for Renters Act”
Designed to repeal Costa-Hawkins
Would allow cities and counties to limit rent on all types of housing and for first-time tenants Would allow cities and counties to limit how much a landlord may increase rents when a new tenant moves in Prevents state from taking future actions to limit local rent control City Council Considerations
Include Costa-Hawkins exemptions in Rent Stabilization Ordinance? 12 Economic & Planning Systems, Inc.
13 Tenant Protection, Just Cause Eviction
Intent is to provide housing stability and limit adverse impacts on displaced tenants Applies to all Rental Units, unless exempted
Hotels, motels
Rental Units where owner maintains their Primary Residence Applies at start of tenancy
14 Tenant Protection, Just Cause Eviction,continued
Just Cause required for termination of tenancy
At Fault
Failure to pay rent
Breach of lease
Except for addition of family members
Nuisance, waste
Criminal activity
No Fault
Owner move-in
Temporarily vacate for substantial repairs, demolition
Ellis Act Provision
Removal of Rental Unit from Rental Market
(Relocation Assistance)
15 Tenant Protection, Just Cause, continued
Requirements Upon Termination of Tenancy (At-Fault)
Provide notice and an opportunity to cure
Must demonstrate good faith, honest intent, and with no ulterior motive Notices filed with the City
16 Tenant Protection, Just Cause, continued
Requirements Upon Termination of Tenancy (No Fault Evictions) Requires notice to Tenant; Notices filed with City
Offer to renew if property back on market within 5 years Relocation Assistance: Three months of actual rent (in addition to security amounts or deposits) Additional notice of Residential Tenant Protections
Notices must be in English and Spanish
17 Anti- Harassment
Intent is to protect vulnerable populations and to prevent adverse health impacts as a result of involuntary displacement Applies to all residential rental units, including single-family residences and condominiums Prohibits landlord retaliation against tenants in response to a tenant exercising their legal rights:
Increasing rent
Refusing rent
Decreasing or eliminating housing services or access to amenities Refusing to renew a lease or rental agreement
Physical or verbal harassment
18 Proposed Operative Date; Fiscal and Sustainability Impact Proposed Operative Date: January 1, 2025
Fiscal and Sustainability Impact
Additional staff resources or contract support
Additional cost to the City
Budget will need to be established for the program and brought forward to the City Council Program Fee, but delay in revenue received by the City
19 Timing and Next Steps
August 20, 2024, City Council Meeting
How does the City Council want to proceed?
Next City Council Meetings
September 10, 2024, Introduction of Ordinance
September 24, 2024, Adoption of Ordinance
January 1, 2025, Operative Date of Ordinance
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