Cities Index.
Agenda Packet

Salinas City Council
June 3, 2025

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Agenda Packet
Meeting
June 3, 2025
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Salinas City Council
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24
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Text extracted from the city's file for reading and search. Open the original on salinas.legistar.com. That file is the official record.

ORDINANCE NO. 2683 (N.C.S.)

AN ORDINANCE ADDING ARTICLE IIC TO CHAPTER 17 OF THE SALINAS

MUNICIPAL CODE RELATED TO TENANT ANTI-HARASSMENT PROTECTIONS

City Attorney Impartial Analysis

This Ordinance applies to all residential Rental Units and prohibits harassment of tenants by landlords. This Ordinance augments existing protections provided to residential Tenants under federal, state, and local laws to prohibit and to deter Tenant harassment by Landlords in all residential Rental Units, including single-family residences and condominiums. The Ordinance provides penalties for non-compliance. The Ordinance is operative January 1, 2025.

WHEREAS, beginning in October 2023, the City Council began to explore the concepts of rent stabilization and tenant protections. At its meeting on October 24, 2023, the City Council received a report on the Salinas rental housing market and state laws that impact r ent control and tenant protection. Following receipt of the report, the City Council directed City staff to develop specific recommendations on rent stabilization and tenant protection strategies, including a rent stabilization and a tenant protection ordi nance. The City Council directed that the Housing and Land Use Committee would be the forum through which the City would engage with the community on these ordinances as work progressed and until such time as specific recommendations would come forward to the City Council for consideration; and

WHEREAS, the City Council’s Housing and Land Use Committee first met on March 26, 2024, and received a report on a preliminary draft ordinance which consisted of three components:
a rent stabilization ordinance, a t enant protection and just cause eviction ordinance, and a tenant anti-harassment ordinance (“Ordinances”); and

WHEREAS, following the March 26, 2024, Housing and Land Use Committee meeting, the City continued to engage with the community through listening sessions, community meetings, Technical Advisory Committee. (TAC) meetings, Housing and Land Use Committee meetings, and public hearings before the City Council. Throughout this community engagement process, the City heard testimony from property owners, landlords, property managers, housing developers, tenants, tenant advocacy groups, and others regarding the Salinas rental market and the scope of rent increases and resident displacement, both as a result of rent increases and aspects of evictions in State law. The City also heard testimony about the specific provisions of the preliminary and subsequent drafts of the Ordinances; and

WHEREAS, the housing shortage and rising costs of living in Monterey County, and Salinas in particular, has detrimentally impacted a substantial number of residents in Salinas; and

WHEREAS, the majority of households in Salinas are family households (79.3%) and Salinas has a larger proportion of lower income households compared to the rest of Monterey County; and

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WHEREAS, the affordability crisis disproportionately affects people of color because these communities are over -represented in the renter population. Salinas residents are predominantly Latinx: As of 2020, 79% of Salinas ’ residents were of Latino or Hispanic origi n.

Latinx residents in Salinas make up larger shares of the renter population than in the city overall; and

WHEREAS, renter-occupied households in Salinas have lower incomes per capita than households who own their homes; consequently, rent stabilization and tenant protection ordinances will tend to benefit households with lower than median incomes. The average renter -occupied household in the City has a median annual income of $64,509; and

WHEREAS, as of November 2022, the average rent for rental units in Salinas was $2,564 per month; and

WHEREAS, average rents for multifamily rental units in Salinas have continually increased at a higher rate compared with the increase in the median income for renter -occupied households, with the exception of 2018 and 2022. Rents in multifamily buildings built before 1995 in Salinas have increased 117% between 2000 and 2024, with an average vacancy of only 3.3%; and

WHEREAS, rents in Salinas have increased an average of 5% each year since 2012, with a spike in rent betw een 2020 and 2021, with an almost 13% increase, and then resuming regular increase over the past two years. A little more than half of the City ’s renter-occupied households remain rent-burdened, paying 30% or more of their household income on housing. Rent-burdened households have less money to spend on other essentials like food, transportation, healthcare, and childcare; and

WHEREAS, the cost burden rate in the City is sufficiently high to create anxiety about rent increases as the increasing housing ren t burden and poverty faced by many residents in the City threatens the health, safety, and welfare of its residents by forcing them to choose between paying rent and providing food, clothing, and medical care for themselves and their families; and

WHEREAS, housing instability threatens the public peace, health, safety, and welfare as eviction from one’s home can lead to prolonged homelessness; increased residential mobility; loss of community; strain on household finances due to the necessity of paying ren tal application fees and security deposits; stress and anxiety experienced by those displaced increased commute times and traffic impacts if displaced workers cannot find affordable housing within the city in which they work; and interruption of the education of children in the home; and

WHEREAS, eviction creates particular hardships for individuals and households of limited means, given the shortage of affordable housing within Salinas and the region, generally; and

WHEREAS, the housing rent burden and p overty faced by many residents in Salinas threatens the health, safety, and welfare of its residents, particularly when resulting in eviction and displacement. Evictions play an impactful role in the lives of low income renter households and Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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can also contribute to poverty through disruptive effects such as job loss, adverse health effects, and negative consequences for children; and

WHEREAS, the City Council finds and determines that regulating the relations between residential landlords and tenants will increase certainty and fairness within the residential rental market in the City and thereby serve the public peace, health, safety, and welfare; and

WHEREAS, the Tenant Protection Act of 2019 is a statewide law that requires a landlord to have “just cause” in order to terminate a tenancy, and provides for a series of “at fauly” and “no fault” reasons that a tenant may be evicted, and in the event of a “no fault” eviction, provides for relocation assistance equal to one month of rent; and

WHEREAS, the recent spike in the inflation rate has resulted in permissible rent increases of up to 10% under the Tenant Protection Act, which caused some r esidents to become fearful of needing to relocate for financial reasons; and

WHEREAS, tenants and housing advocates have provided testimony that some landlords have been constructively evicting tenants by engaging in harassing conduct in order to coerce vacancies, and thereby charge higher market rate rents; and

WHEREAS, this fear of displacement has been determined to be a threat to the City ’s health and well-being; and

WHEREAS, Salinas residential tenants may be unwilling or unable to assert their legal rights due to such factors as imbalance in bargaining power and concerns of retaliation. The City Coucnil finds that these imbalances in the rental housing market and in the barg aining power of landlords and tenants reduces stability, security, and habitability, which are detrimental to health, safety, and general welfare of Salinas residents; and

WHEREAS, the City Council finds that reasonable regulation of aspects of the residential landlord-tenant relationship is necessary to foster constructive communication, maintain an adequate supply of rental housing units, and protect the health, safety, and general welfare of the public and that there is a lack of adequate protections an d remedies in the absence of City regulations; and

WHEREAS, a purpose of the City’s rent stabilization and tenant protection policies is to preserve the public peace, health, safety, and welfare of the City by deterring harassing behavior by landlords aga inst residential tenants, encouraging residential landlord to follow the law and uphold their responsibility to provide habitable rental properties, and establishing more effective remedies for tenants who experience harassing behavior; and

WHEREAS, a further purpose of the City’s rent stabilization and tenant protection policies is to help maintain peaceful relations in the community and minimize breaches of the peace caused by self-help evictions; to protect vulnerable populations of the Salinas community; and

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WHEREAS, it is in the interest of the City, property owners, residents, and the community as a whole that the City adopt rent stabilization, tenant protection and just cause eviction, and tenant anti-harassment protections to mitigate the incentive for a landlord to evict a tenant for the purpose of increasing a rental unit’s rent to market rate; and

WHEREAS, pursuant to the City ’s police power, as granted broadly under Article XI, section 7 of the California Constitution, the City Council has the authority to enact and enforce ordinances and regulations for the public ’s peace, health, safety, and welfare of t he City and its residents; and

WHEREAS, for the preservation of the public peace, health, safety, and welfare, the City Council finds that it is necessary to adopt ordinances adopting rent stabilization, eviction protections, and tenant anti-harassment protections that strengthen what already exists in state and federal law for the reasons set forth above, which are hereby incorporated by reference.

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Article IIC is hereby added to Chapter 17 of the Salinas Municipal Code to read as follows:

Article IIC. Anti-Harassment.

Sec. 17-02.100. Title, Purpose, and Applicability.

(a) This Article shall be known as the “Tenant Anti-Harassment Ordinance.”

(b) The Tenant Anti -Harassment Ordinance augments existing protections provided to residential Tenants under federal, state, and local laws to prohibit and to deter Tenant harassment by Landlords in all residential Rental Units, including single-family residences and condominiums.

(c) The Tenant Anti-Harassment Ordinance applies to all Landlords and Tenants of residential Rental Units within the city, including mobile-homes, mobile-home spaces, trailers, trailer spaces, unless exempted herein, including Landlords and Tenants who may not be covered by other Tenant protection policies.

Sec. 17-02.101. Definitions.

For the purpose of this Article, the following words or phrases shall have the following meanings:

(a) Housing Services. All amenities and services related to t he use or occupancy of a Rental Unit and common areas that are provided by the Landlord. Housing Service includes without limitation hot and cold water, heat, light, utilities that are paid by the Landlord, painting, elevator service, window shades and scr eens, refuse removal, janitorial service, maintenance, repairs, replacement, recreational areas (including pools or gyms), kitchen, Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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bath, and laundry facilities, furnishings, storage space, parking (including one or more automobiles), employee services, se curity services insurance, the payment of property taxes, and any other benefits or privileges permitted to the Tenant by agreement, whether express or implied, including the right to have a specific number of occupants and the right to one-for-one replacement of roommates, regardless of any prohibition against subletting and/or assignment. Housing Services also includes those basic Housing Services required by Cal. Civil Code §1941.1. Housing Services includes a proportionate part of services provided to c ommon facilities of the building and Property in which the Rental Unit is contained.

(b) Landlord. An owner, lessor, sublessor, or any other person entitled to receive rent for the use and occupancy of any rental unit, or an agent, representative, or successor of any of the foregoing.

(c) Property. All Rental Units on a parcel or lot or contiguous parcels or contiguous lots under common ownership.

(d) Rent. All periodic payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor performed or services rendered to or for the benefit of the Landlord under a Rental Housing Agreement, as defined in this section, concerning the use or occupancy of a Rental Unit and premises, including all payment and consideration demande d or paid for parking, utilities, pets, furniture, subletting, and security deposits for damages and cleaning.

(e) Rental Housing Agreement. An agreement, oral, written, or implied, between a Landlord and Tenant for the use or occupancy of a Rental Unit and for Housing Services.

(f) Rental Unit. Any building, structure, or part thereof, land appurtenant thereto, or any other rental Property rented or offered for rent for residential purposes, together with all Housing Services connected with use or occupancy of s uch Property such as common areas and recreational facilities held out for use by the Tenant.

(g) Tenant. A tenant, subtenant, lessee, sublessee, or any other person entitled under the terms of a Rental Housing Agreement to the use or occupancy of any Rental Unit.

Sec. 17-02.102. Exemptions.

The following Rental Units are exempt from the restrictions and requirements of this Article:

(a) Rental Units in any hospital, skilled nursing facility, or health facility.

(b) Rental units in a nonprofit facility that has the primary purpose of providing short -term treatment, assistance, or therapy for alcohol, drug, or other substance abuse and the housing is provided incident to the recovery program, and where the client has been informed in writing of the temporary or transitional nature of the housing at its inception and is licensed for such purpose where such license is required.

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(c) Rental units in a nonprofit facility that provides a structured living environment with the primary purpose of helping homeless persons obtain skills necessary for independent living in permanent housing and where the occupancy is restricted to a limited and specific period of time of not more than 24 months, and where the client has been informed in writing of the temporary or transitional nature of the housing at its inception and is licensed for such purpose where such license is required.

(d) Rental units exempted from Cal. Civil Code Part 4, Title 4, Chapter 2 by § 1940(b) (transient occupancy in hotels/motels), or successor statute, unless either the landlord offers for rent or rents the rental unit for a period of 30 days or more, or the landlord violates Cal. Civil Code § 1940.1, or successor statute, to avoid tenancy status.

Sec. 17-02.103. Harassment by Landlord Prohibited; Harassment by Tenant Prohibited.

(a) No Landlord, and no agent, representative, or employee of the Landlord, shall engage in any act or omission described below in bad faith. Each act or omission in vio lation of this section constitutes harassment.

(1) Interrupt, terminate, or fail to provide, or threaten to interrupt, terminate, or fail to provide Housing Services required by a Rental Housing Agreement or by state or local housing, health, or safety laws. This includes, without limitation, the following:

(A) Curtailing any utility services by any means whatsoever including, but not limited to, the cutting or removing of wires, removal of fuses, switching of breakers, and non-payment of bills for utilities that are part of the housing services. Utility services includes, but is not limited to, water, heat, electricity, gas, telephone, cable, internet, garbage and recycling collection, and sewage.

(B) Impeding reasonable access to the residential units.

(C) Removing, without replacement within a reasonable period time period, when building permits are obtained, if required, doors or windows of the Rental Unit.

(2) Fail to perform or threaten to fail or perform, repairs or maintenance required by a Rental Housing Agreement or by state or local housing, health, or safety laws.

(3) Fail to exercise due diligence in completing repairs or maintenance once undertaken or fail or follow appropriate industry repair containment or remediation protocols designed to minimize expose to no ise, dust, lead paint, mold, asbestos, or other building materials with potentially harmful health impacts.

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(4) Take, or threaten to take, any action to recover possession or cause the Tenant to quit the Rental Unit involuntarily, decrease a Housing Service, or increase Rent with the intent to retaliate against the Tenant for the Tenant’s assertion or exercise of any right under this Article, including a right to request reasonable repairs or maintenance, or to deter the assertion or exercise of such rights.

(5) Solicit a Tenant for sexual conduct in exchange for protection from eviction, repairs or maintenance of the Rental Unit or rental property, or the fulfilment of an obligation of the Landlord under the Rental Housing Agreement or law.

(6) Abuse the right of access into a rental unit as established and limited by Cal. Civil Code § 1954 or successor statute, including entering or photographing portions of the Rental Unit that are beyond the scope of a lawful entry or inspection.

(7) Remove from the Rental Unit personal property, furnishings, or other items that belong to the tenant or that are part of the Housing Services without the prior written consent of the Tenant, except when done pursuant to the procedures set forth in Cal.

Civil Code § 1980 et seq., or successor statute.

(8) Remove or cause removal of a Tenant's vehicle from the rental property or abutting street in violation of applicable law. If applicable law allows for towing of the vehicle, then towing the vehicle does not constitute harassment.

(9) Influence or attempt to influence a Tenant to vacate a Rental Unit through fraud, intimidation, or coercion. This includes threatening to report a Tenant or other person known to the Landlord to be associated with the Tenant to any local, state, or federal agency based on their perceived or actual immigration status. The prohibition shall not be construed as preventing communication with such agencies regarding an alleged immigration violation as permitted by law. This provision shall also not be construed to conflict with Cal. Civil Code § 1940.2(a)(5) or successor statute.

(10) Offer payments to a Tenant to vacate more than once in six months, after the tenant has notified the landlord in writing the Tenant does not desire to receive further offers of payments to vacate.

(11) Attempt to coerce a Tenant to vacate with offer(s) of payments to vacate that are accompanied with threats or intimidation.

(12) Threaten a Tenant or their guest by word or gesture, with physical harm.

Similarly, no Tenant may threaten a Landlord or their guests, agents, employees, or representatives by word or gesture, with physical harm.

(13) Engage in verbal or nonverbal abuse of a Tenant or their guest or use verbal or nonverbal actions directed at a tenant or their guest that are likely, or intended, to cause physical, mental, or emotional harm, including verbal or nonverbal actions directed toward a tenant or their guest as a member of a protected class that are likely, Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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or intended, to cause, physical, mental, or emotional harm. Similarly, no Tenant may engage in verbal or nonverbal abuse of a Landlord or their guests, agents, or representatives or use verbal or nonverbal actions directed at a Landlord or their guests, agents, or representatives that are likely to cause physical, mental, or emotional harm, including verbal or nonverbal actions directed toward a Landlord or their guests, agents, or representatives as a member of a protected class that are likely, or intended, to cause physical, mental, or emotional harm.

(14) Engage in any act or omission that interferes with a Tenant's right to quiet use and enjoyment of a Rental Unit, as that right is defined by California law.

(15) Violate a law that prohibits discrimination based on actual or perceived race, color, sex (including pregnancy, childbirth, and related medical conditions), gender, sexual preference, sexual orientation, ethnic background, nationality, ancestry, place of birth, immigration or citizenship status, primary language, religion, age, source of income, military or veteran status, familial status (including parenthood, occupancy of a minor child, and composition of family unit), marital status, disability (including mental and physical disability), genetic information, or medical condition.

Parentheticals in the foregoing list are without limitation.

(16) Refuse to accept or acknowledge receipt of a tenant's lawful rent payment, except as such refusal may be permitted by state law after a notice to quit has been served on the Tenant and the time period for performance pursuant to the notice has expired.

(17) Refuse to cash a rent check or money order for more than 30 days, except as such refusal may be permitted by state law after a notice to quit has been served on the tenant and the time period for performance pursuant to the notice has expired.

(18) Engage in any act that interferes with a Tenant's right to privacy or request information that violates a tenant's right to privacy, including, without limitation, residency or citizenship status or social security number, except as authorized by law. This includes a refusal to accept equivalent alternatives to information or documentation that does not concern immigration or citizenship status, e.g., an Individual Taxpayer Identification Number (ITN). This also includes, but is not limited to: video or audio recording that captures the interior of a Tenant ’s unit, unreasonably inquiry into a Tenant ’s relationship status or criminal history, and unreasonable restrictions on or inquiry into overnight guests.

(19) Misrepresent to a Tenant that they are required to vacate a Rental Unit or otherwise entice a Tenant to vacate a Rental Unit through misrepresentation or concealment of material facts.

(20) Force a Tenant to vacate their Rental Unit and reregister to avoid classification as a Tenant under California Civil Code section 1940.1. Forced vacation can be implied from the totality of the circumstances.

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(21) Unilaterally impose or require an existing Tenant to agree to material new terms of tenancy or to a new Rental Housing Agreement, unless:

(A) Subsection subsection (21)(c), below, the change in terms of tenancy is explicitly authorized by this title, California Civil Code sections 1946.2(f), 1947.5, or 1947.12 or any successor statute thereof, or is required by federal, state, or local law or regulatory agreement with a government agency; or

(B) Subject to section (21)(c) below, the change in terms of the tenancy was accepted in writing by the Tenant after receipt of written notice from the Landlord that the Tenant need not accept such new terms as part of the Rental Housing Agreement.

(C) Notwithstanding the foregoing, where a Rental Unit is regulated by the Rent Stabilization Ordinance, any change in terms of tenancy must comply with the Rent Stabilization Ordinance and associated regulations.

(22) Take any action to recover possession of a Rental Unit that is exempt from rent increase limitations under this title or any other provision of law by means of a rent increase that is imposed in bad faith with intent to coerce the tenant into vacating the rental unit in circumvention of state and local eviction protection laws. Evidence of bad faith may include, without limitation, the following: (i) the rent increase was substantially in excess of market rates for comparable units; (ii) the rent increase was within six months after an attempt to recover possession of the unit; and (iii) such other factors as a court may deem relevant.

(23) Prohibit, interfere with, retaliate against, or threaten retaliation against tenant organizing activities or engaging in other political activities when hosted by a tenant. "Tenant organizing activities" include the following:

(A) Initiating contact with the Tenants to ascertain interest in, or seek support for forming, a tenant association or union, w hich may include conducting door-to-door surveys;

(B) Joining, supporting, or operating a tenant association or union;

(C) Requesting or providing information, offering assistance, distributing literature, convening meeting with or without a Landlord or Landlor d representative, or otherwise acting on behalf of one or more Tenants in the building regarding housing conditions, community life, Landlord -Tenant relations, and/or similar issues of common interest or concern among Tenants in the building;

(D) This subsect ion (a)(23) does not prohibit a Landlord from establishing reasonable time, place, and manner requirements of organizing activities so Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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long as the requirements would not effectively prohibit or substantially interfere with organizing activities.

(24) Other rep eated acts or omissions of such significance as to substantially interfere with or disturb the comfort, peace, or quiet of any person lawfully entitled to occupancy of such Rental Unit and that cause, are likely to cause, or are intended to cause any person lawfully entitled to occupancy of a Rental Unit to vacate such Rental Unit or to surrender or waive any rights in relation to such occupancy.

(b) The conduct described in subsection (a), above, shall not include conduct intended to communicate ideas or beliefs to the public at -large and that has only an incidental effect upon a person or persons.

Sec. 17-02.104. Notice.

(a) On or before the commencement date of a tenancy, and at the same time as any notice of termination of tenancy, a Landlord shall delive r to the Tenant written notice of the following in the form prescribed by the City:

(1) The tenancy is regulated by this Tenant Anti-Harassment Ordinance.

(2) Section 17 -02.103 of the Salinas Municipal Code prohibits Landlords from engaging in certain acts or failing to perform certain acts related to a tenancy in bad faith or with a dishonest intent.

(3) Landlords that violate this Article may be held liable for damages.

(b) The form of notice prescribed by the City shall include a Spanish language translation of the text and may include translations in additional languages or additional information deemed necessary or convenient to effectuate the purpose of this Article.

(c) For tenancies existing on the effective date of this article or any amendment thereof, a landlord shall deliver to each existing tenant the written notice required by subsection (a), above, in the form prescribed by the City within thirty (30) days of such effective date.

(d) Where a property contains more than one rental unit and an interior common area accessible by the tenants of more than one rental unit, landlords shall post the written notice required by subsection (a), above, in the form prescribed by the city in at least one interior common area.

Sec. 17-02.105. Severance of Amenities Prohibited.

(a) The following amenities, supplied in connection with use or occupancy of a Rental Unit, may not be severed from a tenancy without good cause: garage facilities, parking facilities, Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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driveways, storage space, laundry rooms, decks, patios, backyards, garden s on the same lot, kitchen facilities, toilet facilities, or lobbies.

(b) For purposes of this section, good cause shall include:

(1) Required by federal, state, or local law;

(2) For Rental Units that are exempt from the Rent Stabilization Ordinance, acceptance of the severance in writing by the Tenant after receipt of written notice from the Landlord that the Tenant need not accept the severance;

(3) For Rental Units that are regulated by the Rent Stabilization Ordinance, approval of the removal of amenities by a hearing officer; or

(4) Severance results from the removal of a balcony for which repair or removal was necessary for safety and the Landlord has obtained all necessary permits for the removal.

(c) A severance does not include noticed temporary unavailability of the above housing services to perform necessary work with all required permits.

(d) For Rental Units covered under the Rent Stabilization Ordinance, any severance permitted under this section shall be offset by a corresponding reduction in Rent. Either a Land lord or a Tenant may file a Rent Reduction Petition with the City to determine the amount of Rent reduction.

(e) Late Payment Fees Late fees may not be imposed except if provided for in a written Rental Housing Agreement.

Sec. 17-02.106. Waiver V oid.

It is against public policy, void and unenforceable, to waive or to modify any provision of this Article in an oral or written Rental Housing Agreement.

Sec. 17-02.107. Remedies and Penalties.

(a) Criminal Penalty. A violation of any provision of this Article is punishable as an infraction or misdemeanor. A misdemeanor conviction under this Article shall be punished by a fine of not more than $1,000 for each offense or by imprisonment in the County jail for a period of not more than six (6) months or both, as determined by the court.

(b) Civil Action. Any aggrieved person, or any person, organization, or entity who will fairly and adequately represent the interest of an aggrieved Tenant under this Article, or the City may institute civil proceedings as provided by law against any Landlord violating any of the provisions of this Article and any person who aids, facilities, and/or incites another to violate the provisions of this Article, regardless of whether the Rental Unit remains Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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occupied or has been vacated due to ha rassment. The burden of proof in such cases shall be preponderance of the evidence.

(c) Injunction/Equitable Relief. Any person who commits an act or engages in any pattern and practice that violates this Article may be enjoined therefrom by a court of compet ent jurisdiction. A court may issue other equitable relief as appropriate. An action for injunction under this section may be brought by an aggrieved person, by the City Attorney, or by any person or entity who will fairly or adequately represent the interests of the protected class.

(d) Penalties and Other Monetary Awards.

(1) Any person who violates, or aids or incites another person to violate, the provisions of this Article is liable in a court action for each and every such offense for money damages of not l ess than three times actual damages suffered by an aggrieved Tenant (including damages for mental or emotional distress), or for the minimum damages in the sum of $2,000, whichever is greater, or whatever other relief the court deems appropriate, and shall be liable for such attorneys ’ fees and costs as may be determined by the court. In the case of an award for damages for mental or emotional distress, such award shall be trebled only if the trier of fact finds that the Landlord acted in knowing violation of or reckless disregard of this Article.

(2) Any person who violates, or aids or incites another person to violate, this Article shall be liable for an additional civil penalty of up to $5,000 for each offense committed against a person who is disabled within the meaning of California Government Code section 12926, et seq., or successor statute, or aged 65 or over.

A Tenant prevailing in a court under this Article may be awarded compensatory damages, Rent refunds for reduction in housing services, Tenant relocation costs, imposition of civil penalties up to $10,000 per violation depending upon the severity of the violation or history of violations by this Article by the Landlord, and other appropriate relief, as adjudged by the court.

(3) The court may also award punitive damages to any plaintiff, including the City, in a proper case as defined by California Civil Code section 3294 or successor statute.

The burden of proof for purposes of punitive damages shall be clear and convincing evidence.

(4) A prevailing defendant in a civil action under this section shall be entitled to an award of attorneys ’ fees only if it is determined by the court that the action was devoid of merit and brought in bad faith.

(e) Affirmative Defense. A violation of this Article may be asserted as an affirmative defense in an unlawful detainer action.

(f) Additional Enforcement; Non -exclusive Remedies and Penalties. This Article may be enforced as provided in the Salinas Municipal Code in addition to other remedies provided Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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herein. The remedie s in this Article shall be in addition to any other existing remedies which may be available.

Sec. 17-02.108. Operative Date.

The operative date of the ordinance codified in this Article shall be January 1, 2025.

SECTION 3. All ordinances and parts of ordinances and all resolutions and parts of resolutions in conflict herewith are hereby repealed as of the effective date of this ordinance.

SECTION 4. Publication. The City Clerk shall cause a summary of this ordinance to be published once in a newspape r published and circulated in Salinas within fifteen (15) days after adoption. (Salinas Charter Section 11.9)

SECTION 5. CEQA Compliance. The City Council’s adoption of this ordinance is not a project subject to environmental review under the California Environmental Quality Act (CEQA Guidelines Section 15061(b)(3) because it would not have a significant effect on the environment.

Additionally, the City Council’s adoption of this ordinance is exempt because it does not meet the definition of a “project” under CEQA, pursuant to CEQA Guidelines sections 15060(c)(1) and 15378(a), because it has no potential to result in a direct or reasonably foreseeable physical change in the environment.

SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

The Salinas City Council hereby declares that it would have passed this ordinance and each and every section, subsection, clause, and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 7. Effective Date. This ordinance will take effect thirty (30) days from and after its adoption.

This ordinance was introduced on the 10th day of September 2024, and passed and adopted this 24th day of September 2024, by the following vote:

AYES: Councilmembers Barrera, Gonzalez, Osornio, Rocha and Sandoval NOES: None
ABSENT: Councilmember Valenzuela and Mayor Craig
ABSTAIN: None

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APPROVED:

___________________________________
Jose Andrew Sandoval, Mayor Pro Tempore

APPROVED AS TO FORM:

___________________________________
Christopher A. Callihan, City Attorney

ATTEST:

__________________________________
Patricia M. Barajas, City Clerk

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ORDINANCE NO. 2682(N.C.S.)

AN ORDINANCE ADDING ARTICLE IIB TO CHAPTER 17 OF THE SALINAS

MUNICIPAL CODE RELATED TO JUST CAUSE EVICTION AND TENANT

PROTECTION

City Attorney Impartial Analysis

This Ordinances applies to all Rental Units, except as specifically exempted, and establishes local criteria for just cause evictions and provides additional protections for tenants residing within applicable Rental Units beyond what State law currently provides. The Ordinance requires, among other things, additional notice requirements and the right for tenants to receive three months’ rent as relocation assistance in the event of a no-fault, just cause evictions. The Ordinance provides penalties for failure to comply. The Ordinance is operative on January 1, 2025.

WHEREAS, beginning in October 2023, the City Council began to explore the concepts of rent stabilization and tenant protections. At its meeting on October 24, 2023, the City Council received a report on the Salinas rental housing market and state laws that impact rent control and tenant protection. Following receipt of the report, the City Council directed City staff to develop specific recommendations on rent stabilization and tenant p rotection strategies, including a rent stabilization and a tenant protection ordinance. The City Council directed that the Housing and Land Use Committee would be the forum through which the City would engage with the community on these ordinances as work progressed and until such time as specific recommendations would come forward to the City Council for consideration; and

WHEREAS, the City Council’s Housing and Land Use Committee first met on March 26, 2024, and received a report on a preliminary draft ordinance which consisted of three components:
a rent stabilization ordinance, a tenant protection and just cause eviction ordinance, and a tenant anti-harassment ordinance (“Ordinances”); and

WHEREAS, following the March 26, 2024, Housing and Land Use Com mittee meeting, the City continued to engage with the community through listening sessions, community meetings, Technical Advisory Committee. (TAC) meetings, Housing and Land Use Committee meetings, and public hearings before the City Council. Throughout this community engagement process, the City heard testimony from property owners, landlords, property managers, housing developers, tenants, tenant advocacy groups, and others regarding the Salinas rental market and the scope of rent increases and resident displacement, both as a result of rent increases and aspects of evictions in State law. The City also heard testimony about the specific provisions of the preliminary and subsequent drafts of the Ordinances; and

WHEREAS, the housing shortage and rising co sts of living in Monterey County, and Salinas in particular, has detrimentally impacted a substantial number of residents in Salinas; and

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WHEREAS, the majority of households in Salinas are family households (79.3%) and Salinas has a larger proportion of lower income households compared to the rest of Monterey County; and

WHEREAS, the affordability crisis disproportionately affects people of color b ecause these communities are over -represented in the renter population. Salinas residents are predominantly Latinx: As of 2020, 79% of Salinas ’ residents were of Latino or Hispanic origin.

Latinx residents in Salinas make up larger shares of the renter pop ulation than in the city overall; and

WHEREAS, renter-occupied households in Salinas have lower incomes per capita than households who own their homes; consequently, rent stabilization and tenant protection ordinances will tend to benefit households with lower than median incomes. The average renter -occupied household in the City has a median annual income of $64,509; and

WHEREAS, as of November 2022, the average rent for rental units in Salinas was $2,564 per month; and

WHEREAS, average rents for multif amily rental units in Salinas have continually increased at a higher rate compared with the increase in the median income for renter -occupied households, with the exception of 2018 and 2022. Rents in multifamily buildings built before 1995 in Salinas have increased 117% between 2000 and 2024, with an average vacancy of only 3.3%; and

WHEREAS, rents in Salinas have increased an average of 5% each year since 2012, with a spike in rent between 2020 and 2021, with an almost 13% increase, and then resuming regular increase over the past two years. A little more than half of the City ’s renter-occupied households remain rent-burdened, paying 30% or more of their household income on housing. Rent-burdened households have less money to spend on other essentials like food, transportation, healthcare, and childcare; and

WHEREAS, the cost burden rate in t he City is sufficiently high to create anxiety about rent increases as the increasing housing rent burden and poverty faced by many residents in the City threatens the health, safety, and welfare of its residents by forcing them to choose between paying rent and providing food, clothing, and medical care for themselves and their families; and

WHEREAS, housing instability threatens the public peace, health, safety, and welfare as eviction from one’s home can lead to prolonged homelessness; increased residential mobility; loss of community; strain on household finances due to the necessity of paying rental application fees and security deposits; stress and anxiety experienced by those displaced increased commute times and traffic impacts if displaced workers cannot find affordable housing within the city in which they work; and interruption of the education of children in the home; and

WHEREAS, eviction creates particular hardships for individuals and households of limited means, given the shortage of affordable housing within Salinas and the region, generally; and
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WHEREAS, the housing rent burden and poverty faced by many residents in Salinas threatens the health, safety, and welfare of its residents, particularly when resulting in eviction and displacement. Evictions play an impactful role in the lives of low income renter households and can also contribute to poverty through disruptive effects such as job loss, adverse health effects, and negative consequences for children; and

WHEREAS, the City Council finds and determines that regulating the relations between residential landlords and tenants will increase certainty and fairness within the residential rental market in the City and thereby serve the public peace, health, safety, and welfare; and

WHEREAS, the Tenant Protection Act of 2019 is a statewide law that requires a landlord to have “just cause” in order to terminate a tenancy, and provides for a series of “at fauly” and “no fault” reasons that a tenant may be evicted, and in the event of a “no fault” eviction, provides for relocation assistance equal to one month of rent; and

WHEREAS, the recent spike in the inflation rate has resulted in permissible rent increases of up to 10% under the Tenant Protection Act, which caused some residents to become f earful of needing to relocate for financial reasons; and

WHEREAS, tenants and housing advocates have provided testimony that some landlords have been constructively evicting tenants by engaging in harassing conduct in order to coerce vacancies, and thereby charge higher market rate rents; and

WHEREAS, this fear of displacement has been determined to be a threat to the City ’s health and well-being; and

WHEREAS, Salinas residential tenants may be unwilling or unable to assert their legal rights due to such factors as imbalance in bargaining power and concerns of retaliation. The City Coucnil finds that these imbalances in the rental housing market and in the barg aining power of landlords and tenants reduces stability, security, and habitability, which are detrimental to health, safety, and general welfare of Salinas residents; and

WHEREAS, the City Council finds that reasonable regulation of aspects of the residential landlord-tenant relationship is necessary to foster constructive communication, maintain an adequate supply of rental housing units, and protect the health, safety, and general welfare of the public and that there is a lack of adequate protections an d remedies in the absence of City regulations; and

WHEREAS, a purpose of the City’s rent stabilization and tenant protection policies is to preserve the public peace, health, safety, and welfare of the City by deterring harassing behavior by landlords aga inst residential tenants, encouraging residential landlord to follow the law and uphold their responsibility to provide habitable rental properties, and establishing more effective remedies for tenants who experience harassing behavior; and

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WHEREAS, a further purpose of the City’s rent stabilization and tenant protection policies is to help maintain peaceful relations in the community and minimize breaches of the peace caused by self-help evictions; to protect vulnerable populations of the Salinas community; and

WHEREAS, it is in the interest of the City, property owners, residents, and the community as a whole that the City adopt rent stabilization, tenant protection and just cause eviction, and tenant anti-harassment protections to mitigate the incentive for a landlord to evict a tenant for the purpose of increasing a rental unit’s rent to market rate; and

WHEREAS, pursuant to the City ’s police power, as granted broadly under Article XI, section 7 of the California Constitution, the City Council has the authority to enact and enforce ordinances and regulations for the public ’s peace, health, safety, and welfare of the City and its residents; and

WHEREAS, for the preservation of the public peace, health, safety, and welfare, the City Council finds that it is necessary to adopt ordinances adopting rent stabilization, eviction protections, and tenant anti-harassment protections that strengthen what already exists in state and federal law for the reasons set forth above, which are hereby incorporated by reference.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF SALINAS as follows:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Article IIB is hereby added to Chapter 17 of the Salinas Municipal Code to read as follows:

Article IIB. Just Cause Eviction and Tenant Protection.

Sec. 17-02.50. Title; Purpose.

(a) This Article shall be known as the “Just Cause Eviction and Tenant Protection Ordinance.”

(b) It is the purpose and the intent of this Article to provide housing stability in the Salinas rental market and limit adverse impacts on displaced tenants forced to find replacement housing in the expensive and limited Salinas housing market. Pursuant to California Civil Code section 1946.2(g)(1)(B), the City Council hereby makes the following findings: This Article requiring just cause for termination of a residential tenancy is consistent with and more protective than California Civil Code section 1946.2. This Article is more protective because it further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, and provides additional tenant protections that are not prohibited by any other provision of law. The rights conferred by this Articl e are in addition to any existing rights provided to Tenants by state or federal law.

Sec. 17-02.51. Definitions.

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The following words or phrases as used in this Article shall have the following meanings:

(a) “Buyout Agreement.” A written agreement where a Landlord pays a Tenant money or other consideration to vacate a Residential Unit.

(b) “Buyout Negotiations.” Any discussion or bargaining, whether oral or written. Between a Tenant and a Landlord regarding the possibility of entering into a Buyout Agreement.

Buyout Negotiations begin upon the Landlord’s initiation of such discussion or bargaining and end at the earliest of the following events: when a Buyout Agreement is executed, when the Tenant vacates their Rental Unit, when the Tenant provides written notic e to the Landlord that the Tenant no longer wishes to engage in Buyout Negotiations, or when the Landlord provides written notice to the Tenant that the owner no longer wishes to engage in Buyout Negotiations. A counteroffer by the Tenant does not end Buyout Negotiations.

(c) “Disabled.” The same meaning as in California Government Code section 12955.3.

(d) “Housing Service.” All amenities and services related to the use or occupancy of a Rental Unit and common areas that are provided by the landlord. Housing Services includes without limitation hot and cold water, heat, light, utilities that are paid by the Landlord, painting, elevator service, window shades and screens, refuse removal, janitorial service, maintenance, repairs, replacement, recreational areas (including pools or gyms), kitchen, bath, and laundry facilities, furnishings, storage space, parking (including one or more automobiles), employee services, security services, insurance, the payment of property taxes, and any other benefits or privileges permitted to the Tenant by agreement, whether express or implied, including the right to have a specific number of occupants and the right to one-for-one replacement of roommates, regardless of any prohibition against subletting and/or assignment. Housing Services also includes those basic Housing Services required by California Civil Code §1941.1. Housing Services includes a proportionate part of services provided to common facilities of the building and Property in which the Rental Unit is contained.

(e) “Landlord.” An owner, lessor, sublessor, or any other person entitled to receive Rent for the use and occupancy of any Rental Unit, or any agent, representative, or successor of any of the foregoing.

(f) “Primary Residence.” Occupancy which does not require that the individual be physically present in the unit at all times or continuously, but the unit must be the individual ’s usual place of return. Indicia of primary residence include:

(1) The individual carries on basic living activities at the subject premises for extended periods;

(2) The subject premises are listed with other public agencies, including federal, state, and local taxing authorities as their primary residence;

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(4) Homeowner’s tax exemption for the individual has not been filed for a different property;

(5) The occupant is not registered to vote at any other location;

(6) Ownership must be held in the same name of the individual claiming primary residence and not held by a limited liability company or other corporate structure; and

(7) Other relevant factors illustrating primary residence.

(g) “Property.” All Rental Units on a parcel or lot or contiguous parcels or contiguous lots under common ownership.

(h) “Rent” means all periodic payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor performed or services rendered to or for the benefit of the Landlord under a Rental Hou sing Agreement, as defined in this section, concerning the use or occupancy of a Rental Unit and premises, including all payment and consideration demanded or paid for parking, utilities, pets, furniture, subletting, and security deposits for damages and cleaning.

(i) “Rental Housing Agreement.” An agreement, oral, written, or implied, between a Landlord and Tenant, for use or occupancy of a Rental Unit and for Housing Services.

(j) “Recognized Tenant Organization” means any group of tenants residing in rental units in the same building or in different buildings operated by the same management company, agent, or landlord, who choose to be so designated.

(k) “Rental Unit.” Any building, structure, or part thereof, or land appurtenant thereto, or any other rental Pro perty rented or offered for Rent for residential purposes, including any dwelling or unit in a mobilehome park, together with all Housing Services connected with the use of occupancy of such Property such as common areas and recreational facilities held out for use by the Tenant.

(l) “Tenant.” A tenant, subtentant, lessee, sublessee, or any other person entitled under the term of a Rental Housing Agreement to the use of occupancy of any Rental Unit.

(m) “Utility Charges.” Any charges for gas, electricity, water, cable, or internet.

Sec. 17-02.52. Applicability; Exemptions.

(a) Applicability of this Article. This Article applies to all residential Rental Units, except for those units that are exempted.

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(b) Exemptions from this Article. The following residential Rental Units are exempt from all provisions of this Article:

(1) A unit in a hotel, motel, inn, tourist home, or rooming and boarding house which is rented primarily to transient guests for a period of twenty -eight (28) consecutive calendar days or less, coun ting portions of calendar days as full days and other transient occupancies as defined in California Civil Code section 1940(b).

This exemption does not apply, however, to the following:
(A) A Tenant who has lived at the property for more than thirty (30) consecutive calendar days;

(B) A Tenant who has entered into a Rental Housing Agreement to lease a Rental Unit for thirty (30) days or more; or

(C) Where a Landlord has violated California Civil Code section 1940.1 with regard to the Tenant.

(2) Rental Units in a hospital, convent, monastery, extended medical care facility, non- profit home for the aged, or dormitory as defined in California Building Code section 202 that is solely owned and operated by an accredited institution of higher education.

(3) Dormitories own ed and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive.

(4) Housing accommodations in which the Tenant shares a bathroom or kitchen facilities with the owner who maintains their P rimary Residence at the residenti al rental property.

(5) Single-family owner -occupied residences which the owner maintains as their Primary Residence, including a residence in which the owner -occupant rents or leases no more than two units or bedrooms, including, but not limited to, an accessory dwelling unit or junior accessory dwelling unit.

Sec. 17-02.53. Just Cause Required for Termination of Tenancy.

No Landlord shall take action to terminate any residential tenancy including, but not limited to, making a demand for possession of a Ren tal Unit threatening to terminate a residential tenancy verbally or in writing, serving any notice to quit or other eviction notice, or bringing any action to recover possession or be granted recovery of possession of a Rental Unit without just cause. For purposes of this Article, just cause includes at-fault and no-fault just cause.

(a) At Fault Just Cause. At Fault Just Cause is any of the following:

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(1) Failure to Pay Rent. The Tenant has failed to pay the Rent which the Landlord is legally entitled under the Rental Housing Agreement, this Article, or any other local law. However, this subsection shall not constitute grounds for eviction where the Tenant has withheld Rent pursuant to applicable law or where the amount of Rent demanded is less than one (1) month of fair market Rent for a unit of equivalent size in the Salinas metro area as determined by the U.S. Department of Housing and Urban Development.

(2) Breach of Lease. The Tenant has continued, after written notice to cease, to substantially violate any of t he material terms of the Rental Housing Agreement, except the obligation to surrender possession on proper notice as required by law, and provided such terms are reasonable and legal and have been accepted in writing by the Tenant or made a part of the Ren tal Housing Agreement; and provided further, that, where such terms have been accepted by the Tenant or made a part of the Rental Housing Agreement subsequent to the initial creation of the tenancy, the Landlord shall have first noticed the Tenant in writing that he or she need not accept such terms or agree to their being made part of the Rental Housing Agreement.

(A) Notwithstanding nay contrary provision in this section, a Landlord shall not take any action to terminate a tenancy based on a Tenant ’s sublease of the Rental Unit if the following requirements are met:

(i) The Tenant continues to reside in the Rental Unit as his, her, or their primary residence;

(ii) The sublease replaces one or more departed tenants under the Rental Housing Agreement on a one-for-one basis; and

(iii) The Landlord has unreasonably withheld the right to sublease following written request by the Tenant. If the Landlord fails to respond to the Tenant in writing within fourteen (14) days of receipt of the Tenant’s written request, the Tenant’s request shall be deemed approved by the Landlord. A Landlord ’s reasonable refusal of the Tenant’s written request may not be based on the proposed additional occupant’s lack of creditworthiness, if that person will not be legally obligated to pay some or all of the Rent to the Landlord. A Landlord’s reasonable refusal of the Tenant’s written request may be based on, but is not limited to, the ground that the total number of occupants in a Rental Unit exceeds the maximum number of occupants as determined und er Section 503(b) of the Uniform Housing Code as incorporated by
California Health and Safety Code section 17922.

(B) Protections for Families. Notwithstanding any contrary provision in this section, a Landlord shall not endeavor to recover possession of a Re ntal Unit as a result of the addition to the Rental Unit of the Tenant ’s child, Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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parent, grandchild, grandparent, brother or sister, or the spouse or domestic partner (as defined in California Family Code section 297) of such relatives, or as a result of the addition of the spouse or domestic partner of the Tenant, so long as the number of occupants does not exceed the maximum number of occupants as determined under section 503(b) of the Uniform Housing Code as incorporated by California Health and Safety Code section 17922.

(C) Before endeavoring to recover possession based on the violation of a legal obligation or covenant of tenancy regarding subletting or limits on the number of occupants in the Rental Unit, the Landlord shall serve the Tenant a written notice of the violation that provides the Tenant with a minimum of fourteen (14) days’ opportunity to cure the violation. The Tenant may cure the violation by making a written request to add occupants referenced in subsection (2)(A)(iii) of this section or by using other reasonable means to cure the violation including, but not limited to, the removal of any additional or unapproved occupant. Nothing in this subsection is intended to limit any other rights or remedies that the law otherwise provides to Landlord s or to Tenants.

(3) Nuisance. The Tenant has continued, after the Landlord has served the Tenant with a written notice to cease, to commit or expressly permit a nuisance in, or cause substantial damage to the Rental Unit.

(4) Waste. The committing of waste as described in California Code of Civil Procedure section 116(4), as may be amended.

(5) Criminal Activity; Criminal Threats. Criminal activity by the Tenant on the residential rental property, including any common areas associated with the residential rental p roperty. A criminal threat, as defined in California Penal Code section 422(a), as may be amended, by the Tenant regardless of where made directed at the Landlord or any other Tenant of the residential rental property.

(6) Assignment or Subletting in Violati on of the Rental Housing Agreement. The Tenant’s assignment or sublet of the residential rental property in violation of the Tenant’s lease, as described in Section 17-02.53(a)(2)(A).

(7) Failure to Give Access. The Tenant has continued to refuse without good cause, after the Landlord has served the Tenant with a written notice, to grant the Landlord reasonable access to the Rental Unit for the purposes of showing the Rental Unit to prospective purchasers, renters, or mortgagees, or making necessary repairs or improvements required by federal, state, or local laws. This shall include inspections by the City and other inspections needed so that the Landlord may comply with such laws. Unless due to a documented emergency affecting the Tenant’s health and/or safety, all repair or improvement work will be scheduled in compliance with applicable City regulations. To terminate a tenancy under this subsection, a Landlord must show that written notice was provided to the Tenant Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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and all necessary repair or improvement wo rk was scheduled in compliance with this subsection and all applicable City regulations. Landlords may not use lock - boxes on occupied Rental Units.

(8) Illegal Purpose. The Tenant is convicted of using or expressly permitting the Rental Unit to be used for any illegal purpose. Residing in a Rental Unit that lacks a certificate of occupancy, has not been approved by the City for residential use, or that has been cited for housing, building, or Zoning Code violations does not constitute use of the premises for an illegal purpose.

(b) No Fault Just Cause. No Fault Just Case is any of the following actions taken by the Landlord in good faith, meaning the Landlord acts without ulterior motives and with honest intent.

(1) Owner Move-In. The Landlord seeks to recover possession in good faith for use and occupancy as a Primary Residence by the Landlord or the Landlord ’s spouse, domestic partner, child (by blood or adoption), grandchild ( by blood or adoption), parent, or grandparent.

(A) For Rental Housing Agreements entered into on or after the Operative Date of this Article, this subsection (b)(1) shall only apply if the Tenant agrees to termination in writing or if the Rental Housing Agreement expressly allows the Landlord to terminate the Rental Housing Agreement if the Landlord unilaterally decides to occupy the residential rental property for the Landlord, or their spouse, domestic partner, child (by blood or adoption), grandchild (by blood or adoption), parent, or grandparent.

(B) Landlord, as used in this subsection, shall only include a Landlord that is a natural person who has at least fifty -one (51) percent recorded ownership interest in the property.

(C) The notice terminating tenancy shall contain the name, address or primary residence, and relationship to the Landlord of the person intended to occupy the Rental Unit, a list of all real property owned by each intended future occupant, and the address of the real property, if any, on wh ich each intended future occupant claims a homeowner’s property tax exemption.

(D) The Landlord or enumerated relative must intend in good faith to move into the Rental Unit within ninety (90) days after the Tenant vacates and occupy the Rental Unit as a primary residence for at least thirty-six (36) consecutive months.

(E) If the Landlord or enumerated relative specified in the notice terminating tenancy fails to occupy the unit for at least a thirty -six (36) consecutive month period, or fails to occupy the Rental Unit within ninety (90) days after the Tenant vacates, the Landlord shall:

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(i) Offer the Rental Unit to the Tenant who vacated it at the same Rent and the same terms in effect at the time the Tenant vacated; and

(ii) Pay to said Tenant all reasonable expen ses incurred in moving to and from the Rental Unit, including the lease termination fees.

This subsection does not limit any other remedies a Tenant may have under this Article or other applicable law.

(F) No eviction may take place for an “owner move in” if the same Landlord or enumerated relative already occupies a Rental Unit on the Property, or if a vacancy already exists on the Property. Once a Landlord or enumerated relative has successfully recovered possession of a Rental Unit for an “owner move in ” pursuant to this section, no other current Landlords or enumerated relatives may recover possession of any other Rental Unit in the building under this section. Only one (1) specific unit per building may undergo an eviction under this section. Any future evictions taking place in the same building under this section must be of that same unit. At all times a Landlord may request a reasonable accommodation if the Landlord or enumerated relative is disabled or another unit is necessary to accommodate the person’s disability.

(G) The Landlord may not recover possession for an “owner move-in” pursuant to this section if a comparable unit, owned by the Landlord and located within the city of Salinas, was, at the time of the Landlord’s decision to seek to recover possession of the Rental Unit, already vacant and available, or if a comparable unit, owned by the Landlord in the city of Salinas, thereafter becomes vacant at any time until the earlier of the Tenant ’s surrender of possession of the premises or the entry of a judgment of a court of competent jurisdiction awarding possession of the premises to the Landlord.

In an action by or against the Tenant, evidence that a comparable unit was vacant and available within ninety (90) days prior to the date of a notice terminating the Tenant’s tenancy shall create a presumption that such unit was vacant and available at the time of the Landlord ’s decision to seek to recover possession of the premises. “Presumption” means that the court must find the existence of the presumed fact unless and until the contrary is proven by a preponderance of the evidence.

(2) Temporarily Vacate in Order to Undertake Substantial Repairs; Demolition.

(A) The Landlord, after having obtained all necessary permits from the City and other governmental agencies, seeks in good faith to demolish or to undertake substantial repairs which are necessary to bring the Property into compliance with applicable codes and laws affecting the health and safety of Tenants of the building or where necessary under an outstanding notice Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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of code violations affecting the health and safety of Tenants of the building, and where such repairs cannot be completed while the Tenant resides on the Property. For purposes of this section, “substantially remodel” means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead-based paint, mold, or asbestos, in accordance with applicable federal, state, and local laws. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential real property vacated, do not qualify as a substantial remodel.

(i) The Landlord shall give written notice to the Tenant at least thirty (30) days prior to the proposed date of commencement of such substantial repair which notice shall include a description of the r epairs to be completed and the approximate expected duration of the repairs, together with a copy of the permit(s) required or, if the substantial remodel does not require any permit, a copy of the signed contract with the contractor hired by the Landlord to complete the substantial repairs that reasonably details the work that will be undertaken.

(B) Where such repairs can be completed in a period of sixty (60) or fewer days, and the Tenant agrees in writing to vacate the premises during the period required to complete the repairs, the Landlord may not recover possession pursuant to this section unless the Tenant shall fail or refuse to vacate the premises in accordance with such agreement.

(C) Where the Landlord owns any other residential Rental Units in the city of Salinas, and such Rental Unit is vacant and available at the time of service of the written notice terminating the tenancy, or ay any other time thereafter until the earlier of the Tenant ’s vacating the premises or the entry of a judgment by a court of competent jurisdiction awarding possession of the premises to the Landlord, the Landlord shall, as a condition of obtaining possession pursuant to this subsection notify the Tenant in writing of the existence and address of such vacant Rental Unit and offer the Tenant the right, at the Tenant’s option:

(i) To enter into a Rental Housing Agreement (to be designated as a “temporary housing agreement”) on any available Rental Unit which the Tenant may choose, at a Rent not to exceed the lesser of the lawful Rent which may be charged for such available Rental Unit or the lawful Rental in effect, at the time of the notice of termination of tenancy, on the unit being vacated, said Rental Housing Agreement to be for a term of the lesser of ninety (90) days or until completion of repairs on the Rental Unit being vacated by the Tenant;
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(ii) To enter into a new Rental Housing Agreement for such available Rental Unit at a Rent not to exceed the lawful Rent which may be charged for such available Rental Unit.

(D) Where the Landlord recovers possession under this subsection the Tenant must be given the right of first refusal to re -occupy the Rental Unit upon completion of the reconstruction or the required work.

Sec. 17-02.54. Requirements Upon Termination of Tenancy.

(a) Requirements Upon Termination of Tenancy for At Fault Just Cause. If a Landlord issues a termination notice for at fault just cause, the Landlord shall do the following:

(1) Notice to Tenant. Before a Landlord issues a notice to terminate a tenancy for at fault just cause that is a curable lease violation, the Landlord shall first give written notice of the violation within a reasonable time period prior to serving a notice to terminate tenancy, with a minimum of ten (10) days ’ opportunity to cure the violation, and shall inform the Tenant that a failure to cure may result in the initiation of eviction proceedings, including a description of the violation and an opportunity to cure the violation. The notice shall also include any information necessary to determine the date, time, place, witnesses present, and other circumstances concerning the reason for the notice. The ten (10) day written warning notice requirement shall not a pply if the Landlord is seeking to recover possession based on the Tenant causing or creating an imminent risk of physical harm to persons or property.

(2) Additional Notice to Tenant. The Landlord shall give written notice to the Tenant at least thirty (30) or sixty (60) days prior to the proposed date of termination as required by California Civil Code section 1946.1, as may be amended, in no less than 12-point font. The written notice shall contain the following:

(A) The Landlord shall provide a descripti on of the basis for the termination. In any notice purporting to terminate a tenancy the Landlord shall state the cause for the termination, and in any action brought to recover possession of a Rental Unit, the Landlord shall allege and prove compliance wi th this section and that the Landlord seeks to recover possession of the Rental Unit with good faith, honest intent, and with no ulterior motive for the reason stated in the termination notice.

(b) Requirements Upon Termination of Tenancy for No Fault Just Cause. If a Landlord issues a termination notice for no fault just cause, the Landlord shall do the following:

(1) Notice to Tenant. The Landlord shall give written notice to the Tenant at least thirty (30) or sixty (60) days prior to the proposed date of termi nation as required by California Civil Code section 1946.1, as may be amended, in no less than 12-point font. The written notice shall contain the following:

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(A) The Landlord shall provide a description of the basis for the termination. In any notice purporti ng to terminate a tenancy the Landlord shall state the cause for the termination, and in any action brought to recover possession of a Rental Unit, the Landlord shall allege and prove compliance with this section and that the Landlord seeks to recover possession of the Rental Unit with good faith, honest intent, and with no ulterior motive for the reason stated in the termination notice.

(B) The notice shall state the Tenant’s right to relocation assistance by a direct payment to the Tenant.

(C) The notice shall state the Tenant ’s right to receive an offer to renew the tenancy and thirty (30) days to accept the offer in the event the residential Rental Unit is offered again for rent or lease for residential purposes within five (5) years of the date the Tenant was evicted under Section 17-02.53(b) and that to exercise such right, the Tenant:

(i) Shall notify the Landlord in within thirty (30) days of the termination notice of the Tenant ’s desire to receive an offer to renew the tenancy;

(ii) Provide the Landlord a mailing address or email address for the Landlord to send the offer; and

(iii) Provide the Landlord a change of mailing address or email address.

Rent shall be the Rent lawfully paid by the Tenant at the time the Landlord gave notice to vacate plus any lawful adjustment under the Rent Stabilization Ordinance. The terms of the Rental Housing Agreement shall be the same terms in effect as of the date of the notice to vacate. All notices of termination of tenancy served under this section shall state the lawful Re nt in effect at the time of termination of tenancy.

(2) Filing Termination Notices with the City. The Landlord shall file with the City Attorney a copy of any notice of terminating tenancy upon a Tenant and any accompanying materials, including all warning no tices, within three (3) days of service of the notice on the Tenant. Each notice shall be indexed by property address and by the name of the Landlord.

(c) Relocation Assistance for Termination for No Fault Just Cause.

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to the Tenant in an amount equal to three months of actual Rent under the Tenant’s Rental Housing Agreement in effect at the date of the notice.

(2) The relocation assistance required by this section shall not relieve the Landlord ’s obligation to, and shall be in addition to, the return of any deposit or security amounts owed to the Tenant.

(d) Additional Requirement Upon Termination of a Tenancy for No Fault Just Cause. If a residential rental property is offered for rent or lease for residential purposes within five (5) years of the date the Tenant was evicted under section 17 -02.53(b), a Landlord shall first offer to lease the residential real property in writing to the Tenant displaced from the Rental Unit by the no fault just cause termination if the Tenant:

(1) Advised the Landlord in writing within thirty (30) days of the termination notice of the Tenant’s desire to receive an offer to renew the tenancy; and

(2) Provide the Landlord a mailing address or email address for the Landlord to send the offer, including any change of mailing address or email address.

(e) In addition to other remedies applicable to Landlord ’s failure to comply with thi s Article, a Landlord’s failure to strictly comply with this section shall render void any notice of termination required by this section.

Sec. 17-02.55. Notice to Tenant of Residential Tenant Protections.

(a) A Landlord of residential rental property subject to this Article shall provide written notice in no less than 12-point font to the Tenant, and in a manner that complies with California Civil Code section 1632, as may be amended, that states as follows:

Salinas law limits the amount your Rent can be increased. See Article IIA of Chapter 17 of the Salinas Municipal Code section for more information. Salinas law also provides that a Landlord shall provide a statement of cause in any notice to terminate a tenancy. In addition, Tenants evicted on a no fault basis have the right to return at the same rent, and the right to relocation payments. See Salinas Municipal Code section 17-02.54(b) for more information.

(b) For a tenancy in a residential rental property subject to this Article existing on or before the effective date of this ordinance, the notice required by subsection (a) of this s ection shall be provided to the Tenant directly or as an addendum to the Rental Housing Agreement within thirty (30) days of the effective date of this ordinance.

(c) For a tenancy in a residential rental property subject to this Article commencing or renewed after the effective date of this ordinance, the notice required by subsection (a) of this section shall be included in the Rental Housing Agreement, or as a written notice provided to the Tenant at the time the Rental Housing Agreement is entered into.

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(d) Landlords must provide to each Tenant a current notice of Tenant and Tenant household rights under this Article in accordance with the requirements of this section:

(1) Within thirty (30) calendar days of this Article taking effect;

(2) When entering into a Rental Housing Agreement;

(3) When renewing a Rental Housing Agreement;

(4) When providing notice of a Rent increase;

(5) When a Landlord lists the Property for sale; and

(6) Within thirty (30) days of acquiring title to the Rental Unit or Property.

(e) Notices provided under this section shall be in English and in Spanish. If the Rental Housing Agreement governing a Rental Unit to which this Article applies is in a language other than English or Spanish, the Landlord must provide an accurate translation of the notice of Tenant’s rights in the language of the Rental Housing Agreement.

(f) Failure to comply with the notice requirements in this section shall render any rental increase notice invalid and unenforceable until such non -compliance is cured. Failure to comply with the notice requirements of this section may only be cured by providing notice of Tenants’ rights in accordance with this section.

Sec. 17-02.56. Buyout Agreements.

It is the purpose and the intent of this section to regulate Buyout Agreements, to increase th e fairness of Buyout Negotiations and Buyout Agreements, to ensure that Tenants who enter into Buyout Agreements are aware of their rights, and to prevent Landlords from contracting around the legal rights and remedies available to Tenants under existing law.

(a) Disclosure Prior to Buyout Negotiations. Prior to initiating Buyout Negotiations, the Landlord shall provide each Tenant in a Residential Unit a written disclosure that shall include the following:

(1) A statement that the Tenant has a right to refuse to enter into a Buyout Agreement or to engage in Buyout Negotiations;

(2) A statement that the Tenant may choose to consult with an attorney before entering into a Buyout Agreement or engaging in Buyout Negotiations;

(3) A statement that the Landlord may not retal iate against the Tenant for refusing to enter into or negotiate a Buyout Agreement;

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(4) A statement that offering payments to a Tenant to vacate more than once in a six (6) month period after the Tenant has notified the Landlord in writing that the Tenant refuses to enter into a Buyout Agreement or engage in Buyout Negotiations constitutes harassment under the City’s Anti-Harassment Ordinance;

(5) A statement that the Tenant is eligible for relocation assistance and the amount of the required relocation assistance in section 17-02.54 of this Article;

(6) The names of all people authorized to discuss the buyout offer and enter into a Buyout Agreement on the Landlord’s behalf;

(7) A statement that the Tenant may find information regarding Tenants ’ rights and contact information for Tenants’ assistance organizations at the City ’s website, as well as information regarding the City’s other relevant online resources;

(8) A space for each Tenant to sign and write the date the Landlord provided the Tenant with the disclosure; and

(9) A space for the Landlord to sign and write the date on which the Landlord provided the Tenant with the disclosure.

(b) The Landlord shall provide each Tenant a fully executed copy of the disclosure form within three (3) days of its execution and retain a copy of each signed disclosure form for five (5) years, along with a record of the date the Landlord provided the disclosure to each Tenant.

(c) Requirements for Buyout A greements. The Landlord shall comply with the following . A Buyout Agreement that does not strictly comply with all the requirements of this section shall be void.

(1) The Buyout Agreement shall be in writing.

(2) A copy of the executed Buyout Agreement shall be given to each Tenant at the time the Tenant signs the Buyout Agreement.

(3) The Buyout Agreement shall include the following statements in bold letters at least 14-point font in close proximity to the space reserved for the signature of the Tenant:

(A) You, the Tenant, have a right not to enter into this Buyout Agreement.

(B) If you, the Tenant, are entitled to relocation assistance under federal, state, or local law, a Buyout Agreement for less than the amount of the relocation assistance to which you are entitled violated this Article and is void.

(C) You, the Tenant, may choose to consult with an attorney before signing this Buyout Agreement.

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(4) If the Tenant primarily negotiates the Buyout Agreement, orally or in writing, in a non-English language, the Landlord shall provide the Tenant with an English and a translated version of the Buyout Agreement at the same time.

(d) V oid Buyout Agreements. Buyout Agreements must be for an amount that is greater than the amount of relocation assistance available to the Tenant under th is Article. A Buyout Agreement for less than the amount of relocation assistance owed to the Tenant violates this Article and is void.

(e) No Waiver. The provisions of this section may not be waived in a Buyout Agreement. Any term of a Buyout Agreement, lease, contract, or other Rental Housing Agreement which purports to waive or to limit a Tenant’s rights under this section is contrary to public policy, unenforceable, and void.

Sec. 17-02.57. Ellis Act Provisions. Withdrawal of a Residential Rental Structure from the Rental Market.

California Government Code Sections 7060, et seq. (the "Ellis Act") permits the City, among other things, to require Landlords to provide all Tenants with 120 days’ notice, or one year if the Tenants lived in the accommodations for at least one year and are more than 62 years of age or disabled, when Rental Units subject to the Rent Stabilization Ordinance are to be withdrawn from the rental market.

The Ellis Act also permits the City to impose other restrictions, conditions and requirements upon the Property. It is the purpose of this section to implement provisions of the Ellis Act and shall be interpreted so as to provide the City with the broadest range of authority permitted under these provisions and to intrude the least into the City's authority in all other applications of its power. The City Attorney may develop forms and regulations to assist in the implementation of these provisions.

Pursuant to California Government Code section 7060, the Ellis Act and this Section shall not apply to a Residential Hotel as defined in accordance with California Health and Safety Code section 50519.

(a) This Section 17-02.57 shall only apply to and shall only be exercised for the concurrent withdrawal of all Rental Units in all buildings or structures on a parcel of land from the rental market except where there is more than one building on a parcel and all buildings contain four or more rental units, in which case the Landlord may withdraw all of the units in one or more of the buildings.

(b) Not less than 120 days from the date the Landlord intends to withdraw the Rental Units in a building or structure from the rental market, and after completion of all required proceedings, if any, the Landlord shall:

(1) By first class mail, postage prepaid, or by personal delivery, provide written notice under penalty of perjury to the city of such intent, which notice shall contain the following information: Address and legal description of the subject Property, number of Rental Units being removed, the names of all Tenants residing in the units being removed, and the current Rent applicable to each such unit. If a unit is not occupied at Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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the time notice is given, for purposes of the City's recordkeeping needs, the notice shall state the last Rent paid for such unit. Said notice shall be accompanied by a fee in an amount to be determined by resolution of the City Council, to reimburse the City for the direct and actual costs of tenant counseling and relocation assistance associated with an eviction under this Section 17-02.57.

(2) Record with the Monterey County Registrar-Recorder a written notice prepared by and containing such information as is prescribed by the city summarizing the Landlord's notice of intent and certifying that evictions have commenced or will commence in accordance with applicable law.

(3) Provide written notice of termination of tenancy to all affected Tenants, which notice shall contain the following information:

(i) That the Landlord is evicting the Tenant pursuant to this Section 17-02.57 and will provide the City with the written notice required in subparagraph (b)(1) above;

(ii) A summary of the specific information to be provided to the City in that notice regarding the Tenant's unit;

(iii) That within thirty (30) days of receipt of notice to terminate, the Tenant may notify the Landlord in writing that the Tenant would be interested in re- renting the unit if any of the units are re-offered for rent at a future time and advising the Tenant to notify the Landlord of future address changes. A Tenant shall also provide the City with a copy of the written notice. Failure to submit a copy of the written notice to the City does not affect the Tenant's right of first refusal if the Landlord was properly notified;

(iv) A description of the Tenant's rights as set forth in subparagraphs (c) and (d) below. The notice shall be accompanied by a relocation fee in accordance with subsection (b)(1) above; and

(v) A description of the Tenant's rights under subparagraph (b)(4). (4) If the Tenant is at least sixty-two years old or disabled, and has lived in the Rental Unit at least one year before the Landlord gave the City notice of intent to withdraw the unit from the rental market, the Tenant may extend the time before he or she must vacate.

The extension shall be to one year from the date when the Landlord gave the City proper notice of intent to withdraw. In order to obtain the extension, the Tenant must give the Landlord written notice that he or she is at least sixty-two years old or disabled, and must do so no more than sixty (60) days after the Landlord gave the City notice of intent to withdraw. Then, the following provisions shall apply:
(i) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery to the city of the notice of intent to withdraw, subject Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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to any adjustments otherwise available under this Article; (ii) No party shall be relieved of the duty to perform any obligation under the lease or Rental Housing Agreement;
(iii) The Landlord may elect to extend the date of withdrawal on any other accommodation within the same building up to one year after the date of delivery to the City of the notice of intent to withdraw, subject to paragraphs (i) and (ii);
(iv) Within thirty (30) days of the notification by the Tenant to the Landlord of his or her entitlement to an extension, the Landlord shall give written notice to the City of the claim that the Tenant is entitled to stay in their Rental Unit for one year after the date of delivery to the City of the notice of intent to withdraw;
(v) Within ninety (90) days of the date of delivery to the City of the notice of intent to withdraw, the Landlord shall give written notice to the City and the affected Tenant(s) of the Landlord's election to extend the date of withdrawal and the new date of withdrawal under paragraph (iii). (c) A Landlord seeking to recover possession under this section shall, regardless of the Tenant’s income or length of tenancy provide relocation assistance to the Tenant in an amount equal to three months of actual Rent under the Tenant’s Rental Housing Agreement in effect at the date of the notice.
(d) In the event that any of the withdrawn Rental Unit are re-offered for rent by the Landlord within two years from the effective date of withdrawal, the Landlord shall:
(1) Provide written notice of such action to the City not less than thirty (30) days prior to re-renting the Rental Units;
(2) Offer the Rental Units at the same terms and conditions as of the date of withdrawal plus any general across-the-board adjustment that would have applied had the Rental Units not been withdrawn;
(3) Provide those Tenants who provided a notice of interest in re -renting pursuant to subparagraph (b)(3)(iii) above the right to first refusal to re-rent the Rental Unit by certified or registered mail, postage prepaid, to the last address provided by the Tenant, in which case the Tenant shall have no less than thirty (30) days within which to accept the offer, by personal service or certified or registered mail; (4) Be liable in a civil action if commenced within three years of displacement to any Tenant evicted due to withdrawal of a Rental Unit pursuant to this Section 17-02.57 for actual damages which were the proximate result of the displacement, in accordance with the principles enunciated in Sections 7262 and 7264 of the California Government Code, and exemplary damages; and
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for exemplary damages for each of the withdrawn units.
(e) In the event any of the withdrawn Rental Units are re-offered for rent by the Landlord within five (5) years after any notice of intent to withdraw the accommodation is filed with the City or within five (5) years after the Rental Units are withdrawn, whichever is later, the Landlord shall:
(1) Provide not less than thirty (30) days' prior written notice of such action to the City prior to re-renting the Rental Units;
(2) Offer the Rental Units at the same terms and conditions as of the date the notice of intent to withdraw is filed with the City, plus any general adjustments that would have applied under this Article had the Rental Units not been withdrawn; (f) If any of the withdrawn Rental Units are re-offered for rent less than ten (10) years from the effective date of removal, the Landlord shall provide those tenants who provided notice of interest in re-renting pursuant to subparagraph (b)(3)(iii) the right of first refusal to re-rent the Rental Unit, by certified or registered mail, postage prepaid, to the last address provided by the Tenant, in which case the Tenant shall have no less than thirty (30) days within which to accept the offer by personal service or certified or registered mail. Failure of the Landlord to provide the Tenant with this right of first refusal shall render the Landlord liable in a civil action to the tenant in punitive damages in an amount not to exceed six (6) months' rent. (1) The Landlord shall provide not less than thirty (30) days’ prior written notice of such action to the City prior to re-renting the Rental Units. (g) This Section 17-02.57 shall in no respect relieve a Landlord from complying with the requirements of any applicable state law or of any Rental Housing Agreement. (h) The remedies provided for in this Section 17-02.57 shall not be exclusive and shall not preclude a Tenant from pursuing any alternative remedy available under the law. Failure by any Landlord to comply with the requirements of this Section 17-02.57 shall constitute a defense in any unlawful detainer action brought to evict a tenant under this Section 17-02.57. (i) For the purpose of this Section 17-02.57, the term "landlord" shall be interpreted to include any and all successors-in-interest of any landlord.
(j) The notice to the City provided for in this section shall be accompanied by a processing fee in an amount determined by resolution of the City Council.

Sec. 17-02.58. Remedies.
(a) Affirmative Defense. A Landlord’s failure to comply with the requirements of this article shall be an affirmative defense to an unlawful detainer action by a Landlord. A Tenant who prevails in a case for wrongful eviction due to the Landlord’s non -compliance with this article shall recover costs and reasonable attorney’s fees. (b) Whenever a Landlord or anyone assisting a Landlord wrongfully endeavors to recover possession or recovers possession of a Rental Unit in violation of this Article, The Tenant or the City may institute a civil proceeding for injunctive relief, m oney damages or not less than three times actual damages (including damages for mental or emotional Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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distress), and whatever other relief the court deems appropriate. In the case of an award of damages for mental or emotional distress, said award shall only be trebled if the trier of fact finds that the Landlord acted in knowing violation of or in reckless disregard of this article. The prevailing party shall recover reasonable attorney ’s fees and costs pursuant to order of the court.
(c) The remedies available in this section shall be in addition to any other existing remedies which may be available to the Tenant.
(d) City Authorization to Enforce this Article. The City shall have the right and authority, but not the duty, to enforce the requirements of this article by bringing actions for injunctive relief on behalf of the city or tenants or tenant households to which this article applies, and by seeking compliance by landlords with the requirements of this article through administrative remedies or by citation. The city in its sole discretion may choose to enforce the provisions of this article through administrative fines or other remedies provided in the Salinas Municipal Code. The city’s decision to pursue or not pursue enforcement of any kind shall not affect the rights of tenants or tenant households to whom this article applies to pursue civil remedies for violations of this article. (e) Other private rights of action. Nothing in this article shall be deemed to limit the right of a landlord to file an action against a tenant or non -tenant third party for damage to the landlord’s property, or to otherwise seek recovery from tenants or third parties as permitted by a lawful rental agreement or applicable provisions of law. (f) It shall b e unlawful for a Landlord to refuse to rent or lease or otherwise deny to or withhold from any person any Rental Unit because the age of a prospective Tenant would result in the Tenant acquiring rights under this Article. (g) It shall be unlawful for a Landlord or any other person who willfully assists the Landlord to endeavor to recover possession or to evict a Tenant except as provided in this article. (h) No cause of action against the city. To the maximum extent permitted by law, nothing in this article shall be construed to create a cause of action against the City, or a basis for seeking an award of attorney ’s fees against the City pursuant to the private attorney general’s statute in Code of Civil Procedure section 1021.5, or on any other basis arising from or related to an alleged violation of the requirements of this article, and/or based on or related to the City’s prosecution or enforcement or alleged failure to prosecute or enforce any such alleged violation, and/or based on or related to the City ’s implementation or alleged failure to implement the requirements of this article.

Sec. 17-02.59. Administrative Regulations and Forms.

The City Manager and the City Attorney are authorized to promulgate guidelines and regulations to implement this article, including publication of form notices and other documents. Any and all forms, notices, and other documents necessary or helpful in the administration of this article may be adopted by the City Manager and the City Attorney.

Sec. 17-02.60. Retaliation Prohibited.

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(a) No landlord may threaten to bring, or bring, an action to recover possession, cause the tenant to quit the unit involuntarily, serve any notice to quit or notice of termination of tenancy, decrease any housing services or increase the rent where the landlord’s intent is retaliation against the tenant for the tenant’s assertion or exercise of any right under this title.

(b) Any action of retaliation described in subsection (a) shall be a defense to an action to recover possession, or it may serve as the basis for an affirmative action by the tenant or actual and punitive damages and injunctive relief.

(c) A tenant may assert retaliation affirmatively or as a defense to the landlord’s action regardless of the period of time which has elapsed between the tenant’s assertion or exercise of rights under this chapter and the alleged act of retaliation.

Sec. 17-02.61. Affirmative Defense.

Failure to comply with any requirement of this article may be asserted as an affirmative defense in an action brought by a Landlord to recover possession of the Rental Unit.

Sec. 17-02.62. Non-waiverability.

Any provision, whether oral or written, in or pertaining to a Rental Housing Agreement whereby any provision of this article for or of the benefit of the Tenant is waived, shall be deemed to be against public policy and shall be void.

Sec. 17-02.63. Operative Date.

The operative date of the ordinance codified in this Article shall be January 1, 2025.

SECTION 3. All ordinances and parts of ordinances and all resolutions and parts of resolutions in conflict herewith are hereby repealed as of the effective date of this Ordinance.

SECTION 4. Publication. The City Clerk shall cause a summary of this ordinance to be published once in a newspaper published and circulated in Salinas within fifteen (15) days after adoption. (Salinas Charter Section 11.9)

SECTION 5. CEQA Compliance. The City Council’s adoption of this ordinance is not a project subject to environmental review under the California Environmental Quality Act (CEQA Guidelines section 15061(b)(3).) Additionally, the City Council’s adoption of this ordinance is exempt because it does not meet the definition of a “project” under CEQA, pursuant to CEQA Guidelines sections 15060(c)(1) and 15378(a), because it has no potential to result in a direct or reasonably foreseeable physical change in the environment.

SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

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every section, subsection, clause, and phase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 7. Effective Date. This Ordinance will take effect thirty (30) days from and after its adoption.

This ordinance was introduced on the 10th day of September 2024, and passed and adopted this 24th day of September 2024, by the following vote:

AYES: Councilmembers Barrera, Gonzalez, Osornio, Rocha and Sandoval NOES: None
ABSENT: Councilmember Valenzuela and Mayor Craig
ABSTAIN: None

APPROVED:

____________________________________
Jose Andrew Sandoval, Mayor Pro Tempore

APPROVED AS TO FORM:

________________________________
Christopher A. Callihan, City Attorney

ATTEST:

___________________________
Patricia M. Barajas, City Clerk
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ORDINANCE NO. 2681 (N.C.S.)

AN ORDINANCE ADDING ARTICLE IIA TO CHAPTER 17 OF THE SALINAS

MUNICIPAL CODE RELATED TO RENT STABILIZATION

City Attorney Impartial Analysis

This Ordinance adds Article IIA to Chapter 17 of the Salinas Municipal Code to provide limits on rent increases for applicable rental units. The Ordinance provides landlords a right to petition for rent increases above the set limit upon a showing of just cause and to petition for the pass- through of the costs of completed capital improvement costs. The Ordinance provides tenants a right to petition for rent reductions under certain circumstances. The Ordinance also allows the City to establish a fee to implement the program. The Ordinance would become operative on January 1, 2025.

WHEREAS, beginning in October 2023, the City Council began to explore the concepts of rent stabilization and tenant protections. At its meeting on October 24, 2023, the City Coun cil received a report on the Salinas rental housing market and state laws that impact rent control and tenant protection. Following receipt of the report, the City Council directed City staff to develop specific recommendations on rent stabilization and te nant protection strategies, including a rent stabilization and a tenant protection ordinance. The City Council directed that the Housing and Land Use Committee would be the forum through which the City would engage with the community on these ordinances as work progressed and until such time as specific recommendations would come forward to the City Council for consideration; and

WHEREAS, the City Council’s Housing and Land Use Committee first met on March 26, 2024, and received a report on a preliminary draft ordinance which consisted of three components:
a rent stabilization ordinance, a tenant protection and just cause eviction ordinance, and a tenant anti-harassment ordinance (“Ordinances”); and

WHEREAS, following the March 26, 2024, Housing and Land U se Committee meeting, the City continued to engage with the community through listening sessions, community meetings, Technical Advisory Committee. (TAC) meetings, Housing and Land Use Committee meetings, and public hearings before the City Council. Throughout this community engagement process, the City heard testimony from property owners, landlords, property managers, housing developers, tenants, tenant advocacy groups, and others regarding the Salinas rental market and the scope of rent increases and resident displacement, both as a result of rent increases and aspects of evictions in State law. The City also heard testimony about the specific provisions of the preliminary and subsequent drafts of the Ordinances; and

WHEREAS, the housing shortage and ris ing costs of living in Monterey County, and Salinas in particular, has detrimentally impacted a substantial number of residents in Salinas; and

WHEREAS, the majority of households in Salinas are family households (79.3%) and Salinas has a larger proportion of lower income households compared to the rest of Monterey County; and
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WHEREAS, the affordability crisis disproportionately affects people of color b ecause these communities are over -represented in the renter population. Salinas residents are predominantly Latinx: As of 2020, 79% of Salinas ’ residents were of Latino or Hispanic origin.

Latinx residents in Salinas make up larger shares of the renter pop ulation than in the city overall; and

WHEREAS, renter-occupied households in Salinas have lower incomes per capita than households who own their homes; consequently, rent stabilization and tenant protection ordinances will tend to benefit households with lower than median incomes. The average renter -occupied household in the City has a median annual income of $64,509; and

WHEREAS, as of November 2022, the average rent for rental units in Salinas was $2,564 per month; and

WHEREAS, average rents for multifamily rental units in Salinas have continually increased at a higher rate compared with the increase in the median income for renter -occupied households, with the exception of 2018 and 2022. Rents in multifamily buildings built before 1995 in Salinas have increased 117% between 2000 and 2024, with an a verage vacancy of only 3.3%; and

WHEREAS, rents in Salinas have increased an average of 5% each year since 2012, with a spike in rent between 2020 and 2021, with an almost 13% increase, and then resuming regular increase over the past two years. A little more than half of the City ’s renter-occupied households remain rent-burdened, paying 30% or more of their household income on housing. Rent-burdened households have less money to spend on other essentials like food, transportation, healthcare, and childcare; and

WHEREAS, the cost burden rate in the City is sufficiently high to create anxiety about rent increases as the increasing housing rent burden and poverty faced by many residents in the City threatens the health, safety, and welfare of its residents b y forcing them to choose between paying rent and providing food, clothing, and medical care for themselves and their families; and

WHEREAS, housing instability threatens the public peace, health, safety, and welfare as eviction from one’s home can lead to prolonged homelessness; increased residential mobility; loss of community; strain on household finances due to the necessity of paying rental application fees and security deposits; stress and anxiety experienced by those displaced increased commute times and traffic impacts if displaced workers cannot find affordable housing within the city in which they work; and interruption of the education of children in the home; and

WHEREAS, eviction creates particular hardships for individuals and households of limited means, given the shortage of affordable housing within Salinas and the region, generally; and

WHEREAS, the housing rent burden and poverty faced by many residents in Salinas threatens the health, safety, and welfare of its residents, particularly when resulting in eviction and Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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displacement. Evictions play an impactful role in the lives of low income renter households and can also contribute to poverty through disruptive effects such as job loss, adverse health effects, and negative consequences for children; and

WHEREAS, the City Council finds and determines that regulating the relations between residential landlords and tenants will increase certainty and fairness within the residential rental market in the City and thereby serve the public peace, health, safety, and welfare; and

WHEREAS, the Tenant Protection Act of 2019 is a statewide law that requires a landlord to have “just cause” in order to terminate a tenancy, and provides for a series of “at fauly” and “no fault” reasons that a tenant may be evicted, and in the event of a “no fault” eviction, provides for relocation assistance equal to one month of rent; and

WHEREAS, the recent spike in the inflation rate has resulted in permissible rent increases of up to 10% under the Tenant Protection Act, which caused some residents to become fearful of needing to relocate for financial reasons; and

WHEREAS, tenants and housing advocates have provided testimony that some landlords have been constructively evicting tenants by engaging in harassing conduct in order to coerce vacancies, and thereby charge higher market rate rents; and

WHEREAS, this fear of disp lacement has been determined to be a threat to the City ’s health and well-being; and

WHEREAS, Salinas residential tenants may be unwilling or unable to assert their legal rights due to such factors as imbalance in bargaining power and concerns of retaliat ion. The City Coucnil finds that these imbalances in the rental housing market and in the bargaining power of landlords and tenants reduces stability, security, and habitability, which are detrimental to health, safety, and general welfare of Salinas residents; and

WHEREAS, the City Council finds that reasonable regulation of aspects of the residential landlord-tenant relationship is necessary to foster constructive communication, maintain an adequate supply of rental housing units, and protect the health, safety, and general welfare of the public and that there is a lack of adequate protections and remedies in the absence of City regulations; and

WHEREAS, a purpose of the City’s rent stabilization and tenant protection policies is to preserve the public peace, health, safety, and welfare of the City by deterring harassing behavior by landlords against residential tenants, encouraging residential landlord to follow the law and uphold their responsibility to provide habitable rental properties, and establish ing more effective remedies for tenants who experience harassing behavior; and

WHEREAS, a further purpose of the City’s rent stabilization and tenant protection policies is to help maintain peaceful relations in the community and minimize breaches of the peace caused by self-help evictions; to protect vulnerable populations of the Salinas community; and

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WHEREAS, it is in the interest of the City, property owners, residents, and the community as a whole that the City adopt rent stabilization, tenant protec tion and just cause eviction, and tenant anti-harassment protections to mitigate the incentive for a landlord to evict a tenant for the purpose of increasing a rental unit’s rent to market rate; and

WHEREAS, pursuant to the City ’s police power, as granted broadly under Article XI, section 7 of the California Constitution, the City Council has the authority to enact and enforce ordinances and regulations for the public ’s peace, health, safety, and welfare of the City and its residents; and

WHEREAS, for the preservation of the public peace, health, safety, and welfare, the City Council finds that it is necessary to adopt ordinances adopting rent stabilization, eviction protections, and tenant anti-harassment protections that strengthen what already exists in state and federal law for the reasons set forth above, which are hereby incorporated by reference.

NOW, THEREFORE, BE IT ORAINED BY THE CITY COUNCIL OF SALINAS as follows:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Article IIA is hereby added to Chapter 17 of the Salinas Municipal Code to read as follows:

Article IIA. Rent Stabilization.

Sec. 17-02.01. Rent Stabilization.

This article shall be known as the “Rent Stabilization Ordinance.”

Sec. 17-02.02. Application.

This Rent Stabilization Ordinance shall be interpreted and administered in a manner consistent with the Costa-Hawkins Rental Housing Act codified in California Civil Code section 1954.50 et seq. (“Costa Hawkins”). If any conflict exists between the provisions of Costa Hawkins and this article, Costa Hawkins shall prevail.

(a) Applicability of this Article. The provisions of this Rent Stabilization Ordinance apply to all Rental Units in the city of Salinas, except as otherwise exempted in this section.

(b) Exemptions from this Article. The following Rental Units are exempt from Rent Stabilization:

(1) Rental Units exempt from rent stabilization pursuant to the Costa Hawkins Rental Housing Act (California Civil Code section 1954.50 et seq. (2) Rental Units which a government unit, agency, or authority owns, operates, manages, or in which governmentally subsidized Tenants reside only if applicable Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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federal or state law or administrative regulation specifically exempts such units from municipal rent stabilization.
(3) Rental Units which are deed restricted as affordable housing by a regulatory agreement or similar recorded document.
(4) Rental Units in any hospital, covenant, monastery, extended medical care facility, non-profit home for the aged, or dormitory as defined in California Building Code section that is solely owned and operated by an accredited institution of higher education.
(5) A unit in a hotel, motel, inn, or room and boarding house which is rented primarily to transient guests for a period of twenty -eight (28) consecutive calendar days or less, counting portions of calendar days as full days and other transient occupancies as defined in California Civil Code section 1940(b).
(6) A unit in an institutional facility, including a hospital, medical care facility, residential care facility, asylum, group home for seniors or the disabled, or transitional housing program that assists homeless persons as defined in California Civil Code section 1954.12.
(7) Rental Units in any building which is included on the National Register of Historic Places, the State Historic Landmark Register, the California Register of Historic Resources, or which has been voluntarily nominated as an historic resource by the property owner and which designation has been considered by the Salinas Historic Resources Board and approved by the Salinas City Council.

Sec. 17-02.03. Definitions.

(a) For the purpose of this Article, the following words or phrases shall have the following meanings:

“Annual Allowable Rental Adjustment.” Annual Allowable Rental Adjustment refers to the limit on the Maximum Allowable Rent increase which a Landlord may charge on any covered Rental Unit each year without an order from a hearing officer.

“Capital Improvement.” An improvement or repair to a Rental Unit or property that materially adds to the value of the Property, appreciably prolongs the Property ’s useful life or adapts the Property to a new use, becomes a part of the real property or is permanently affixe d to the real property such that its removal would result in material damage to the real property or to the improvement itself, has a useful life or more than one (1) year and that is required to be amortized and depreciated over the useful life of the imp rovement under the provisions of the Internal Revenue Code and related regulations, and may also include work necessary to comply with applicable local, state, or federal building, health, and safety codes.

“Capital Improvement Plan.” A detailed proposal submitted to the City Attorney or designee by a Landlord in order to proceed with one or more Capital Improvements, and/or receive a Pass Through.

“Controlled Rental Unit. ” A Rental Unit located within the city of Salinas not specifically exempted by an applicable exemption to this Article.

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“Housing Services.” All amenities and services related to the use or occupancy of a Rental Unit and common areas that are provided by the Landlord. Housing Services includes without limitation hot and cold water, heat, light, utilities that are paid by the Landlord, painting, elevator service, window shades and screens, refuse removal, janitorial service, maintenance, repairs, replacement, recreational areas (including pools or gyms) kitchen, bath, laundry facilities, furnishings, storage space, parking (including one or more automobiles), employee services, security services, insurance, the payment of property taxes, and any other benefits or privileges permitted to the Tenant by agreement, whether express or implied, including the right to have a specific number of occupants and the right to one -for-one replacement of roommates, regardless of any prohibition against subletting and/or assignment. Housing Services also includes those basic Housing Services required by California Civil Code section 1941.1. Housing Services includes a proportionate part of services provided to common facilities of the building and Property in which the Rental Unit is contained.

“Landlord.” An owner, lessor, sublessor, or any other person en titled to receive Rent for the use and occupancy of any Rental Unit, or any agent, representative, or successor of any of the foregoing.

“Maximum Allowable Rent.” The maximum allowable rent which may be charged on any Rental Unit covered by this Article.

“Property.” All Rental Units on a parcel or lot or contiguous parcels or contiguous lots under common ownership.

“Pass Through.” Any monetary amount a Landlord is authorized to pass through to, and recover from, one or more Tenants in the form of a surch arge or in addition to Rent, as authorized by an approved Capital Improvement Plan or any other lawful authorization.

“Rent.” All periodic payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor perf ormed or services rendered to or for the benefit of the Landlord under a Rental Housing Agreement, as defined in this section, concerning the use or occupancy of a Rental Unit and premises, including all payment and consideration demanded or paid for parki ng, utilities, pets, furniture, subletting, and security deposits for damages and cleaning.

“Rental Housing Agreement.” An agreement, oral, written, or implied, between a Landlord and Tenant, for use or occupancy of a Rental Unit and for Housing Services.

“Rental Housing Fee.” The fee described in Section 17-02.13.

“Rental Unit.” Any building, structure, or part thereof, or land appurtenant thereto, or any other rental Property rented or offered for Rent for residential purposes, together with all Housing Services connected with the use and occupancy of such Property such as common areas and recreational facilities held out for use by the Tenant.

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“Tenant.” A tenant, subtenant, lessee, sublessee, or any other person entitled under the term of a Rental Housing Agreement to the use and the occupancy of any Rental Unit.

“Utility Charges.” Any charges for gas, electricity, water, cable, or internet.

(b) Terms defined in other sections of this Rent Stabilization Ordinance shall have such meaning when used in this Rent Stabilization Ordinance, whether singular or plural.

Sec. 17-02.04. Limit on Rental Rate Increases.

(a) Increases in Rent on residential real property in the city may not exceed the lesser of 2.75% or 75% of the most-recent 12-month increase in the Consumer Price Index for All Urban Consumers (CPI-U) Series Title: All items in West urban, all urban consumers, not seasonally adjusted published by the Bureau of Labor Statistics. Only one rent increase in any 12-month period is permitted. A reduction in Housing Services is an increase in Rent.

(b) Subsection (a) of this section shall apply to all Rent increases occurring on or after December 31, 2023. A Landlord has no duty to refund otherwise lawful rent received prior to the effective date of this Rent Stabilization Ordinance in excess of the amount authorized by this section.

(c) The 12-month period referenced in subsection (a) of this section shall begin on the date of the last Rent increase regardless of whether the last Rent increase occurred prior to the effective date of the Rent Stabilization Ordinance.

Sec. 117-02.05. Reasonable Rate of Return.

This Rent Stabilization Ordinance allows for an annual adjustment of residential real property Rent as specified in subsection (a) of section 17 -02.04 of this article. Such an increase is found and determined to provide a just and reasonable return on a Landlord’s Property, and has been adopted to encourage good management, reward efficiency, and discourage the flight of capital, as well as to be commens urate with returns on comparable investments, but not so high as to defeat the purpose of curtailing excessive Rent and rental increases. Notwithstanding the foregoing, and Landlord who contends that the limit on Rent increases set forth in Section 17 -02.04 will prevent the Landlord form receiving a fair and reasonable return on the Property may petition for relief from the limit set forth in section 17-02.04 pursuant to the procedures set forth in section 17-02.07.

In making annual adjustments of the Annual Allowable Rental Adjustment, Hearing Officers shall consider the purpose of this Article and the requirements of law.

Sec. 17-02.06. Tenant Petition for Rent Reduction.

(a) Unlawful Rent. A Tenant of a Controlled Rental Unit may petition for a reduction of Rent (“Rent Reduction Petition ”) if the Tenant believes that the Landlord has demanded, accepted, or retained from the Tenant any Rent in excess of the Rent permitted by this Rent Stabilization Ordinance. The Landlord shall be informed of the Tenant ’s complaint and shall have the opportunity to respond to the Tenant’s claim of Rent overcharge.

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(b) Reduction in Housing Services or Failure to Maintain Habitable Premises. A Tenant may petition for a reduction of Rent (“Rent Reduction Petition ”) to request a refund of, or decrease in, Rent proportional to the Landlord ’s reduction in Housing Services or failure to maintain then Controlled Rental Unit as a habitable premise in accorda nce with applicable State rental housing laws, State and local health and safety laws, or the Rental Housing Agreement.

(c) Such Rent Reduction Petition shall be on an application form prescribed by the City Attorney or designee , shall be submitted to the Cit y Attorney, and shall be decided by a Hearing Officer designated by the City Attorney.

(d) The Tenant shall provide a copy of any Rent Reduction Petition submitted to the City Attorney to the applicable Landlord and shall provide the City Attorney with proof of completing such service to the applicable Landlord. The Landlord shall have thirty (30) days from the date of receiving the Rent Reduction Petition to reply or to provide additional materials in response to the Rent Reduction Petition. Such reply or add itional materials shall be submitted to the City Attorney.

(e) The Tenant shall bear the burden of establishing that a Rent reduction is necessary to comply with the Rent Stabilization Ordinance by providing information including the type of dwelling, dates of tenancy, dates of Rent increases, amount of Rent increases, dates of charges, and amounts of charges.

(f) The factors the Hearing Officer may consider in deciding a Rent Reduction Petition shall be matters related to the Landlord ’s failure to comply with th e Rent Stabilization Ordinance, reductions in Housing Services, and habitability violations. For example, the amount of Rent that the Landlord has actually demanded, accepted, or retained from the Tenant exceeds the amount of the Rent that the Landlord cou ld lawfully charge. The Hearing Officer may also consider decreases in living space, furnishings, equipment, or services; substantial deterioration of the Controlled Rental Unit other than as a result of ordinary wear and tear; or failure on the part of the Landlord to provide adequate Housing Services or to comply with applicable housing, health, and safety codes.

(g) A Rent Reduction Petition shall be decided by the Hearing Officer within sixty (60) days of the date that the Rent Reduction Petition has been deemed complete by the City Attorney, including submission of proof of service of the Rent Reduction Petition on the applicable Landlord, unless an extension of time has been agreed upon by the parties. The decision shall be sent by mail and shall be emailed with proof of mailing to the applicable Tenant, the designated representative of the Tenant, the subject Landlord, and the Landlord’s designated representative for the Rent Reduction Petition, if any. Any person aggrieved by the decision of the Hearing Officer may appeal to the City Council. On appeal, the City Council shall affirm, reverse, or modify the decision of the Hearing Officer.

The decision of the Hearing Officer shall be the final decision of the City in the event of no appeal to the City Council.

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(h) Decisions decreasing Rent shall remain in effect until the Hearing Officer finds that the Landlord has corrected the defect warranting the decrease. The City Attorney shall establish procedures for making prompt compliance determinations. Upon a determination of compliance, the Landlord shall be entitled to reinstatement of the prior Rent level, retroactive to the date that the Landlord corrected the defect which warranted the decrease.

This shall be in compliance with California Code of Civil Procedure section 1942.4. If the Landlord is found to be in violation of California Code of Civil Procedure section 1942.4, then no Rent shall be charged for the period during which the Landlord was in violation.

Sec. 17-02.07. Landlord Petition for Rent Increase.

(a) A Landlord may petition for a Rent increase for a Controlled Rental Unit in excess of that provided in Sec. 17-03.04 in order to obtain a fair and reasonable return on the Landlord’s Property (“Fair Return Petition ”). It is the intent of this Ar ticle that individual upward adjustments in the Maximum Allowable Rent on Controlled Rental Units be made only when the Landlord demonstrates that such adjustments are necessary to provide the Landlord with a fair return on investment.

(1) Nothing in this sec tion shall be interpreted to authorize a Rent increase for a Controlled Rental Unit in excess of the amount authorized pursuant to California Civil Code section 1947.12.

(2) Such Fair Return Petition shall be on an application form prescribed by the City Attorney and shall include a declaration by the Landlord that the Rental Unit meets all requirements of this Article. Fair Return Petitions shall be decided by a Hearing Officer designated by the City Attorney.

(3) The Landlord shall provide a copy of any Fair Return Petition submitted to the City to the applicable Tenant(s) and shall provide the City with proof of completing such service to the applicable Tenant(s). The Tenant(s) shall have thirty (30) days from the date of receiving the Fair Return Petition to reply or provide additional materials to the City Attorney in response to the Fair Return Petition.

(4) The Landlord shall be responsible for all costs associated with the City’s review of the Fair Return Petition.

(5) Upon receipt of a Fair Return Petition , the Hearing Officer shall determine the anticipated costs of review and if the employment of expert(s) will be necessary or appropriate for a proper analysis of the Landlord ’s request. If the Hearing Officer so determines, the Hearing Officer shall also d etermine the anticipated costs of employing such expert(s). The resulting estimated cost shall be communicated to the Landlord and the Fair Return Petition shall not be processed until the Landlord has paid to the City the estimated cost of the completed a nalysis. The City will provide the Landlord with an invoice of all costs incurrent after the review of the Fair Return Petition. Any unused portion of the advance payment for analysis shall be refunded to the Landlord. If additional funds are required, pay ment will be Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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required before the Landlord receives the determination on the Fair Return Petition from the City.

(b) The factors the Hearing Officer may consider in deciding a Fair Return Petition include, but are not limited to, the following:
(1) Changes in the Consumer Price Index for All Urban Consumers (CPI-U) Series Title: All items in West urban, all urban consumers, not seasonally adjusted published by the Bureau of Labor Statistics arising after commencement of the tenancy.

(2) The pattern of recent Rent increases or decreases.

(3) Changes in property tax or other taxes related to the Controlled Rental Unit arising after commencement of the tenancy.

(4) Unavoidable changes in operating and maintenance expenses arising after commencement of the tenancy.

(5) Substantial deterioration of the Controlled Rental Unit other than as a result of ordinary wear and tear.

(6) Increases or decrease in the number of Tenants occupying the Controlled Rental Unit, living space, furniture, furnishings, equipment, or other Housing Service provided, or occupancy rules.

(7) Failure on the part of the Landlord to provide adequate Housing Services, or to comply with applicable state rental housing laws, local housing health an safety codes, or the Rental Housing Agreement.

(8) Relevant evidence demonstrating that a Landlord, as of the effective date of this Rent Stabilization Ordinance, does not receive a just and reasonable return under the provisions of this Article.

(c) The Landlord may not charge for utilities unless the utilit y is separately or individually metered.

(d) A Fair Return Petition shall be decided by the Hearing Officer within ninety (90) calendar days of the date that the Fair Return Petition has been deemed complete by the City Attorney, including submission of proof of service of the Fair Return Petition on the applicable Tenant(s), unless the Landlord has failed to pay all applicable costs associated with the City Attorney, and designees’, review of the Fair Return Petition or an extension of this time has been agreed upon by the Landlord and the Tenant(s). The decision shall be sent by mail and shall be emailed with proof of mailing to the subject Landlord, the Landlord’s designated representative for the Fair Return Petition, the applicable Tenant(s), and the desig nated representative of the Tenant(s), of any. Any person aggrieved by the decision of the Hearing Officer may appeal to the City Council. On appeal, the City Council Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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shall affirm, reverse, or modify the decision of the Hearing Officer. The decision of the Hearing Officer shall be the final decision of the City in the event of no appeal to the City Council.

Sec. 17-02.08. Petition for Pass Through for Specified Capital Improvements.

(a) Landlord Petition. In addition to the petition process set forth above in section 17-02.07, a Landlord may file on an application form prescribed by the City Attorney for a Capital Improvement Plan, with or without a request for a Pass -Through of certain Capital Improvement costs to Tenants of Rental Units not exempt from rent control by state law, subject to the provisions and limitations set forth in this section, but shall include the actual cost of completed Capital Improvements to the Rental Unit (as distinguished from ordinary repair, replacement, and maintenance or costs attributable to bringing a Rental Unit into compliance with applicable health and safety laws) where such Capital Improvement costs are properly amortized over the life of the improvement. A Landlord may not file a petition pursuant to this subsection until the work on such Capital Improvements has been completed. The City Council may adopt reasonable regulations to govern Capital Improvement standards and applications under this section.

(b) Tenant Financial Hardship. A Tenant may file a hardship application at any time on grounds of financial hardship with respect to any Rent increase based on a Pass -Through to the Tenant of actual costs of capital improvements permitted pursuant to subsection (a) of this section. Payment of such rent increase(s) set forth in the hardship application shall be stayed from the date of filing until a decision is made on the Tenant’s hardship application.

The City Council may adopt reasonably regulations to establish the standa rds for establishing financial hardship and applications under this section.

Sec. 17-02.09. Rent Increase Ineffective; No Waiver.

(a) A Rent increase shall be ineffective if the Landlord:

(1) Fails to comply with all provisions of this Rent Stabilization Ordinance, as may be amended from time-to-time, and with any other applicable policies, regulations, or resolutions concerning Rent including, without limitation, the service of the Tenant with a legally required notice of a Rent increase under this Rent Stabilization Ordinance or state law, the registration of all Rental Units within the city, and the payment of all Rent program fees set forth in the City’s Fee Schedule; or

(2) Fails to maintain the residential real property in compliance with California Civil Code section 1941.1 and California Health and Safety Code sections 17920.3 and 17920.10; or

(3) Fails to make repairs ordered by the City or any court of competent jurisdiction.

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(b) Any waiver or purported waiver by a Tenant of rights granted under this Article prior to the time when such rights may be exercised, whether oral or written, in or pertaining to a Rental Housing Agreement, shall be void as contrary to public policy.

(c) If a Tenant reasonably believes a Landlord has increased the Tenant’s Rent in violation of this section, the Tenant may submit to the City Attorney a petition to determine compliance for consideration by a Hearing Officer designated by the City Attorney. The Landlord shall have the opportunity to respond to the petition to determine compliance and to participate in the administrative proceeding. The City Attorney shall promulgate regulations to effectuate this section, in addition to those authorized by the Salinas Municipal Code.

Sec. 17-02.10. Notice Requirements.

(a) On or before the date of commencement of a tenancy, the Landlord of any residential real property subject to this Rent Stabilization Ordinance shall deliver to the Tenant written notice of the following in a form prescribed by the City Attorney:

(1) The tenancy is regulated by this Rent Stabilization Ordinance;

(2) The Tenant has a right to submit a complaint to the City pursuant to section 17 -

02.13 or a Rent Reduction Petition pursuant to section 7-02.06 for Rent demanded, accepted, or retained in violation of this Rent Stabilization Ordinance, a reduction in Housing Services, or failure to maintain habitable premises;

(3) The Landlord has a right to respond to any Rent reduction petition filed by the Tenant with the City pursuant to section 17-02.06; and

(4) The Tenant has a right to respond to any Fair Return Petition filed by the Landlord with the City pursuant to section 17-02.07.

(b) At the same time and with any notice to increase Rent, the Landlord must deliver written notice of the following:

(1) The tenancy is regulated by this Rent Stabilization Ordinance; (2) The Tenant has a right to submit a complaint to the City pursuant to the procedures established pursuant to section 17 -02.12 or a Rent Reduction Petition pursuant to section 17-02.06 for Rent demanded, accepted, or retained in violation of this Rent Stabilization Ordinance, a reduction in Housing Services, or failure to maintain habitable premises;
(3) The Tenant has a right to respond to any Fair Return Petition filed by the Landlord with the City pursuant to sec. 17-02.07; and
(4) No rent increase is effective unless and until the requirements of this Rent Stabilization Ordinance have been met.

(c) When a Landlord and Tenant have entered into a written Rental Housing Agreement, the Landlord must give notices to the Tenant in the language primarily used in the Rental Docusign Envelope ID: 9CBF9608-9530-4A4B-87D7-90F593E92411

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Housing Agreement. When a Landlord and Tenant have not entered into a written Rental Housing Agreement, the Landlord must give notices to the Tenant in the language that a Landlord and Tenant used primarily when negotiating the terms of the Tenancy.

(d) Notices provided by a Landlord under this Article shall be in English and Spanish.

Sec. 17-02.11. Judicial Review.

A Landlord or Tenant aggrieved by any action or decision of the City or of the City Council may seek judicial review by appealing to the appropriate court with jurisdiction over the matter.

Sec. 17-02.12. Violations and Remedies.

(a) It shall be unlawful for any person to violate or fail to comply with any provision of this Rent Stabilization Ordinance, or any rule, regulation, or order promulgated, including demanding, accepting, or retaining Rent in excess of the Maximum Allowable Rent in violation of this Rent Stabilization Ordinance or a determination by a Hearing Officer of City Council, and including the provisions ensuring compliance with habitability standards and registration fee requirements.

(b) Any person who violates or aids or incites another person to violate the provisions of this Rent Stabilization Ordinance shall be liable in a civil action for each and every such offense for actual damages suffered by an aggrieved party (including damages for mental or emotional distress); or for statutory damages in the sum of three times the amount by which the payment demanded, accepted, or retained exceeds the Maximum Allowable Rent, or for statutory damages in the sum of $1,000, whichever is greater; and whatever other relief the court deems appropriate. In the case of an award of damages for mental or emot ional distress, said award may be trebled if the trier of fact finds that the person acted in knowing violation of or in reckless disregard of this Rent Stabilization Ordinance. The trier of fact may also award punitive damages to any plaintiff, including the City, in a proper case as defined by California Civil Code section 3294. No administrative remedy need be exhausted prior to filing suit pursuant to this subsection.

(c) Any person who is convicted of violating this Rent Stabilization Ordinance shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not greater than $1,000 or by imprisonment in the county jail for not more than six (6) months, or by both such fine and imprisonment.

(d) Any person, including the City, may enforce th e provisions of this Rent Stabilization Ordinance by means of a civil action. The burden of proof in such cases shall be by preponderance of the evidence. The prevailing party in any civil action brought pursuant to this section shall be entitled to recover reasonable attorney’s fees and costs. A violation of this Rent Stabilization Ordinance may be asserted as an affirmative defense in an unlawful detainer action.

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(e) Any person who commits an act, proposes to commit an act, or engages in any pattern and practice that violates this Rent Stabilization Ordinance may be enjoined therefrom by any court of competent jurisdiction. An action for injunction under this subsection may be brought by any aggrieved person, by the City Attorney, or by any person or entity who will fairly and adequately represent the interest of the protected class.

(f) This Rent Stabilization Ordinance may be enforced as provided in the Salinas Municipal Code in addition to other remedies provided herein, which shall be in addition to any other existing remedies which may be available.

Sec. 17-02.13. Rent Program Fee.

For the sole purpose of reimbursing the City for the costs of administering this Rent Stabilization Ordinance, there is hereby imposed on each Controlled Rental Unit subject to the provisions of this Rent Stabilization Ordinance, a regulatory fee (“Rent Program Fee”) to cover the costs to provide and administer the programs created by this article or in such amount as the City Council may establish by resolution from time -to-time. Landlords subject to this Rent Stabilization Ordinance shall register all Rental Units subject to this article consistent with the City’s Residential Rental Registration Program (Article I of Chapter 17 of the Salinas Municipal Code) with the City and pay the Rent Program Fee at such time and in such manner as established by City Council resolution. A Landlord may not recover any portion of the Rent Program Fee, or any associated late penalties, from Tenants.

Sec. 17-02.14. Implementation.

The City Manager and the City Attorney shall take or cause to be taken such actions necessa ry to implement this Rent Stabilization Ordinance and effectuate the intent of the City Council in adopting this Rent Stabilization Ordinance, including the preparation of informational materials and forms and promulgation of administrative regulations. Th e City Manager shall designate a City department to provide information and receive Tenant complaints pertaining to violation of this Rent Stabilization Ordinance. The City Manager and the City Attorney shall publicize this Article so that all residents of Salinas will have the opportunity to become informed about their legal rights and duties under this Article. The City Attorney shall prepare informational materials which fully describe the legal rights and duties of Landlords and Tenants under this Rent Stabilization Ordinance. The informational materials will be available to the public and each Tenant of a Rental Unit shall receive a copy of the informational materials from their Landlord.

Landlords shall provide the informational materials at the commencement of the tenancy and with each written notice of Rent increase . The informational materials will be made available on the City of Salinas website.

Sec. 17-02.14. Operative Date.

The operative date of the ordinance codified in this Article shall be January 1, 2025.

SECTION 3. All ordinances and parts of ordinances and all resolutions and parts of resolutions in conflict herewith are hereby repealed as of the effective date of this ordinance.

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SECTION 4. Publication. The City Clerk shall cause a summary of this ordinance to be published once in a newspaper published and circulated in Salinas within fifteen (15) days after adoption. (Salinas Charter Section 11.9)

SECTION 5. CEQA Compliance. The City Council’s adoption of this ordinance is not a pr oject subject to environmental review under the California Environmental Quality Act (CEQA Guidelines Section 15061(b)(3) because it would not have a significant effect on the environment.

Additionally, the City Council’s adoption of this ordinance is exempt because it does not meet the definition of a “project” under CEQA, pursuant to CEQA Guidelines sections 15060(c)(1) and 15378(a), because it has no potential to result in a direct or reasonably foreseeable physical change in the environment.

SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.

The Salinas City Council hereby declares that it would have passed this ordinance and each and every section, subsection, clause, and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 7. Effective Date. This ordinance will take effect thirty (30) days from and after its adoption.

This ordinance was introduced on the 10th day of September 2024, and passed and adopted this 24th day of September 2024, by the following vote:

AYES: Councilmembers Barrera, Gonzalez, Osornio, Rocha and Sandoval NOES: None
ABSENT: Councilmember Valenzuela and Mayor Craig
ABSTAIN: None

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APPROVED:

___________________________________
Jose Andrew Sandoval, Mayor Pro Tempore

APPROVED AS TO FORM:

___________________________________
Christopher A. Callihan, City Attorney

ATTEST:

___________________________________
Patricia M. Barajas, City Clerk

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ORDINANCE NO. 2663 (N.C.S.)
AN ORDINANCE OF THE CITY OF SALINAS ADDING ARTICLE I TO CHAPTER 17

OF THE SALINAS MUNICIPAL CODE TO REQUIRE REGISTRATION OF ALL

RESIDENTIAL RENTAL PROPERTIES WITHIN THE CITY OF SALINAS City Attorney Impartial Analysis
This Ordinance incorporates a requirement into the Salinas Municipal Code that all residential rental properties be registered with the City of Salinas and provide certain information including information identifying the owner and information describing the rental unit.. This Ordinance applies to all residential rental properties including single-family and multi-family, as well as non-owner-occupied Accessory Dwelling Units (ADUs). Vacant, on-market, units will also require registration in anticipation of imminent occupancy. Subsidized residential rental units/affordable deed restricted units, owner-occupied ADUs, and mobile home spaces are exempt. An annual registration fee would be required to fund the program.

WHEREAS, pursuant to Article XI, Section 7 of the California Constitution, the City of Salinas ("City") has broad authority to maintain the public peace, health and safety of its community and preserve the quality of life for its residents and may make and enforce all regulations and ordinances using its police powers to do so; and

WHEREAS, the City , with direction from the City Council, has developed goals, objectives, policies, and action programs that directly address the City's housing needs; and

WHEREAS, according to the Monterey County Analysis of Impediments of Fair Housing Choice, published in 2019, 54.9 percent of Salinas residents are renters and an essential part of our community; and

WHEREAS, on December 4, 2018, the National Resource Network presented the Salinas Ten-Year Plan to the City Council, providing a series of recommendations designed to allow the City to maintain long-term fiscal solvency, maintain its key services, and address the housing affordability crisis; and

WHEREAS, one recommendation contained in the Salinas Ten-Year Plan is to establish a feasibility study for a residential rental registry and inspection program; and

WHEREAS, the City adopted the FY 2020 – FY 2024 Consolidated Plan ("CP") for housing in August 2020, and indicated in the CP that engaging in "Fair Housing and tenant/landlord activities" was of high priority to the City; and

WHEREAS, the City does not currently track residential rents, and there is no current source for obtaining that information specific to the City, making it difficult to ascertain the effect of rents and housing conditions on the potential displacement of residents; and

DocuSign Envelope ID: A095923C-B113-4CDF-B4EF-2AF62939908D WHEREAS, the City Council directed City Staff to conduct a study session on November 27, 2018, to gather the perspective and information necessary to address housing conditions and housing affordability in the City; and

WHEREAS, on January 26, 2019, the City Council directed staff to prepare an ordinance for City Council consideration that would require owners of residential rental properties to provide the City with basic annual information regarding R esidential R ental Units , including optional information; and

WHEREAS, the City through a series of 22 meetings has made diligent efforts to engage, collaborate and solicit input from community stakeholders regarding the Residential Rental Registry Program; and

WHEREAS, on January 18, 2022, staff presented a proposed rental registration model, and Council directed staff to draft an ordinance based on the proposed model; and

WHEREAS, City staff will continue to collaborate with a variety of stakeholders, including landlords and tenants, to identify potential program services and opportunities to collect data; and

WHEREAS, the City Council finds and determines that the R esidential Rental Registry Ordinance codified in Article I of Chapter 17 of the Salinas Municipal Code is adopted pursuant to the City's police power authority to protect the public health, safety and welfare.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SALINAS AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The City Council finds that the above Recitals are true and correct and are incorporated herein by reference.

SECTION 2. Amendment of Chapter 17 of the Municipal Code. Chapter 17 of the Salinas Municipal Code is hereby amended to add Article I , " Residential Rental Registry" to read as follows:

CHAPTER 17 – HOUSING
ARTICLE I – Residential Rental Registration
Section 17-01.01 – Findings and Purpose
a) Findings.

The City Council finds and declares as follows:

1. The City has a substantial government interest in regulating the relationship between Landlords and Tenants in order to increase, certainty, stability and fairness within the rental market.

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2. The City finds that this Ordinance requires only the registration of Resid ential Rental Units and the collection of fees associated with the registry.

3. The Ordinance codified in this Article is being adopted pursuant to the City's police power authority to protect the public health, safety and welfare.

b) Purpose.

The purpose of this Article is to adopt regulations for Landlords to register their residential rental units and provide related information to the City on an annual basis. The registration process will allow the City to collect, monitor and analyze the ch aracteristics of the residential rental units and actual rents in Salinas. Collected data will be pre sented in an annual report to the City Council. The registration fees collected pursuant to this Article will be used to provide services, including referrals to mediation and legal services, education opportunities, and landlord/tenant resources, to Landlords and Tenants in the City. This Article supports the City's housing goals and protects public health, safety, and welfare for the residents of Salinas. This Article and its implementation are intended to protect the privacy of individual Tenants and the proprietary information of Landlords, the public release of which could result in a competitive disadvantage.

Section 17-01.02 – Definitions
a) Business License means the license required of Landlords pursuant to Salinas Municipal Code Chapter 19 – Licenses.

b) City means the City of Salinas.

c) Department shall mean the Community Development Department of the City of Salinas.

d) Effective Date of this Article shall be May 4, 2023.

e) Community Development Director means the director of the Community Development Department of the City of Salinas or their designee. A designated representative may include City staff and/or a Party or organization contracted by the City to provide the necessary services to implement the procedures contained in this Chapter.

f) Landlord means an owner, lessor, or sublessors who receives or is entitled to receive Rent for the use and occupancy of any Residential Rental Unit or portion thereof, and includes any legal entity or other individuals, employees, agents, contractors, and subcontr actors that comprise or represent the Landlord.

g) Rent means a fixed period for compensation paid by a Tenant at fixed intervals to a Landlord for the possession and use of a Residential Rental Unit as defined by the rental agreement between the Landlord an d the Tenant. Rent exclu des pass-through costs and DocuSign Envelope ID: A095923C-B113-4CDF-B4EF-2AF62939908D ancillary costs paid separately to the Landlord for parking, storage, utilities, water, garbage, or any other fee or charge associated with the Residential Rental Unit.

h) Residential Rental Registry Fees means the fee required to be paid by a Landlord pursuant to Section 17-01.04.

i) Residential Rental Registry Information means the information required to be submitted to the City by the Landlord pursuant to this Article.

j) Residential Rental Unit means a habitable structure offered for Rent and used as a place of permanent or customary and usual abode of a Tenant. R esidential Rental Units include a single-family residence, an accessory dwelling unit, a building, a group of buildings or a portion of a build ing used and/or designed as dwellings. A R esidential Rental Unit shall not include:

1. Unpermitted conversions of garage, sheds or other accessory structures.

2. Housing accommodations in hotels, motels, group housing, supportive housing, transitional housing, general residential care, and bed and breakfasts as those terms are defined in Division 2 of Article I of Chapter 37 of the Salinas Municipal Code.

k) Tenant means any renter, tenant, subtenant, lessee or subless ee of a R esidential Rental Unit, or any group of renters, tenants, subtenants, lessees, or sublessees of a R esidential Rental Unit, or any other person entitle to the use of occupancy of such Residential Rental Unit, or any successor of any of the foregoing.

Section 17-01.03 – Registration of Residential Rental Units a) Initial Registration. A Landlord must register every Residential Rental Unit that is subject to the provisions of this Article within forty-five (45) calendar days of the Effective Date of this Ordinance. Registration must be completed using forms provided by the City. The forms provided by the City shall include a secure internet website with an interface for submitting the information required by this Article. Registration is complete only when all required information has been provided to the City and all outstanding fees and penalties, if applicable, have been paid. Upon completion of the initial registration of a R esidential Rental Unit, the City shall issue a registration statement which shall includ e the renewal date for the registration of the applicable Units. The City may issue a citation and impose a late penalty should a Landlord fail to register their Residential Rental Units within forty- five (45) calendar days of the Effective Date of this Article.

b) Renewal. Unless a registration statement provides otherwise, registration of R esidential Rental Units shall expire on June 30 of the same year when registration statement was issued. Registration of Residential Rental Units shall be renewed annually between July 1 and July 31, or by the date stated on the registration statement. Registration statements shall expire annually on June 30 or the date on the registration statement . The City may DocuSign Envelope ID: A095923C-B113-4CDF-B4EF-2AF62939908D issue a citation and impose a late penalty should a Landlord fail to register their Residential Rental Units by July 31.

c) Residential Rental Registry Information. At minimum, the following information below shall be provided as part of initial and renewal registration of a Residential Rental Unit.

Failure to provide information required or providing false information shall be a violation of the Salinas Municipal Code, chargeable as a misdemeanor or infraction.

1. The name, mailing address, phone number and email of the Landlord;

2. The street address and/or Assessor's Parcel Number (APN) of each R esidential Rental Unit for rent or lease;

3. The number of bedrooms and bathrooms in each Rental Unit, including square footage, for rent or lease;

4. The Business License number, where applicable, to each Residential Rental Unit; and

5. If applicable, the name, address, phone number and email of Property Manager

Additionally, landlords will be asked to provide the following optional information:

a) The current amount of the monthly rent charged for each Residential Rental Unit, identifying whether the monthly rent includes specified utilities (water/sewer, refuse/recycle, natural gas, electricity, etc.);
b) The occupancy status of each Residential Rental Unit (e.g., vacant or occupied); c) Whether or not the unit’s monthly rent is subsidized (e.g. housing voucher or another subsidy).

d) Termination of Exemption . When a R esidential R ental Unit that was exempt from this Article becomes governed by this Article, the Landlord must register the Residential Rental Unit with the City within forty-five (45) calendar days after the City provides notice that the exemption has ended.

e) Registration Amendment . A Landlord shall notify the City if there is a change to the registration information for any Residential Rental Unit. A Landlord shall contact the City within forty-five (45) calendar days of change in a Residential Rental Unit's ownership or management, or a change in the owner's or manager's contact information.

f) Administrative Regulations . The Community Dev elopment Director may promulgate administrative regulations and operational procedures to implement the provisions of this Article.

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g) Collecting and Keeping Confidential Residential Rental Registry Information.

1. The City Council recognizes that the Re sidential Rental Registry Information, if publicly disclosed, could reveal the rent that a Tenant pays for a Residential Rental Unit or proprietary information of a Landlord could create a competitive disadvantage for every Landlord required to comply with this Article.

The City Council also recognizes that the Public Records Act (Government Code §§ 6250, et seq.) generally requires that the City make available to the public information in its possession that relates to the conduct of the public's business. The Public Records Act contains a number of exceptions intended to protect the privacy of individuals and the proprietary information of businesses that is in the City's possession only because of a legal requireme nt to provide it to the City in connection with a regulatory program. Subject to Section 17-01.03(g)(4).

City Council declares that the R esidential R ental Registry Information shall be received in confidence, and that the public interest in nondisclosure of the Residential R ental Registry Information clearly outweighs the public interest in disclosure. Notwithstanding the foregoing, this Section 17-01.03(g) identifies limited Residential Rental Registry Information that shall be made available to the public.

2. The City Council anticipates that Residential Rental Registry Information will be kept in a secure database. The database containing Residential Rental Registry Information shall be created and maintained such that it can generate reports containing only the following, individually or in combination:
a) the number of Residential Rental Units per building expressed as a range of the number of Residential Rental Units per building; b) the number and type of rooms in a Residential Rental Unit, with the Rental Units grouped by number of bedroom s and not listed individually;
c) the size of Residential Rental Units, expressed in square feet; d) the Rent for R esidential Rental Units, classified only by size of Residential R ental Units in square feet and number and type of rooms;
e) average Rent for R esidential R ental Units by size of R esidential Rental Units in square feet or number of rooms for any period of time covered by the Residential Rental Registry Information; or f) the average length of occupancy or vacancy of Rental Units, classified only by size of Rental Units in square feet or number and type of rooms.

DocuSign Envelope ID: A095923C-B113-4CDF-B4EF-2AF62939908D The Residential Rental Registry Information listed in this pa ragraph shall be the only Residential Rental Registry Information released in response to a request made under the Public Records Act. The City will not disclose R esidential R ental Registry Information for R esidential Rental Units in a manner that identifies the building in which they are located or the Rent for any individual Rental Unit.

Residential Rental Registry Information shall not include identifying information regarding an individual Tenant or Landlord.

3. The Community Development Director may generate additional reports f rom the Residential Rental Registry Information database for the purposes of this Article.

Such reports shall be released to the public only if kept in the normal course of City business and only after redacting any Residential Rental Registry Information that would improperly intrude into personal privacy of Tenants or reveal Landlord proprietary information that could result in a competitive disadvantage.

4. The Community Development Director, in consultation with the City Attorney, may authorize the release of other R esidential R ental Registry Information that would be otherwise confidential if they determine that the release is legally required or the public interest in disclosure would clearly outweigh the public int erest in nondisclosure.

Section 17-01.04 – Rental Registry Fees
a) Rental Registry Fees. Each Landlord shall pay the required Residential Rental Registry Fee as set forth in Resolution No. 22622. The fees established in Resolution No. 22622 shall be integrated into the City's Schedule of Fees and Charges for City Services by resolution, as required by Chapter 11B of the Salinas Municipal Code.

The Residential Rental Registry Fee shall be imposed annually for each rental property owned by the Landlord. The Residential Rental Registry Fees required by this section are in addition to and not in lieu of any general business license tax that might be required by Chapter 19 of the Salinas Municipal Code. The fees shall be used to defray the reasonable costs associated with the implementation and administration of this Article, including costs of maintenance of a residential r ental registry database, enforcement of the registration required by this Article, outreach, education, and other related services as deemed appropriate by the Community Development Director pursuant to Section 17-01.05 of this Article.

b) Late Fees; Penalties . A Landlord's failure to pay the annual Residential R ental Registration Fees required by this section shall result in the City taking the following actions:

1. Issue a delinquency notice to the landlord that provides up to forty-five (45) calendar days to pay the amount due.

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2. If not paid within forty-five (45) calendar days following the issuance of the delinquency notice, the City shall assess a penalty of ten (10) percent of the Residential Rental Registry Fee, due and payable with the compliance fee on the first day of the month following the due date provided in the delinquency notice.

3. For every forty-five (45) calendar days thereafter that the Residential R ental Registry Fees remain unpaid, the City shall assess a penalty of ten (10) percent of the Rental Registry Fee. If the Rental Registry Fee s remain unpaid within one - hundred eighty (180) calendar days following the issuance of the delinquency notice, the Landlord shall be subject to a citation described in Division 1 (Administrative Citations) of Article 5 of Chapter 1 of the Salinas Municipal Code.

The City may collect any past due Residential Rental Registry Fees and late payment penalties by use of all available legal means, including, but not limited to, means available for the collection of judgments, liens, and actions for recovery of money. The City also may recover its collection costs.
c) Residential Rental Registry Fees Pass-Through. A Landlord may not recover any portion of the Residential Rental Registry late fees, or any associated late penalties, from Tenant(s).

d) Exemptions. This section shall not apply to the following Residential Rental Units:

1. Subsidized Residential Rental Units . One hundred percent of R esidential R ental Units in the h ousing developments are restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable to persons and families or very low, low, or moderate income, as defined in Section 50093 of the Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income as de fined in Section 50093 of the Health and Safety Code or comparable federal statutes.

2. Accessory Dwelling Units . Legal accessory dwelling units, junior accessory dwelling units, and secondary dwelling units, if the primary dwelling is owner - occupied. If the primary dwelling is presently or has previously been held out for rental, then both units are subject to this Section 17-01.04.

3. Mobile Home Spaces. A lot or space of land in a Mobile Home Park where a Mobile Home is or may be located. Mobile Home and Mobile Home Park shall have the same meaning as the definitions of "mobile home" defined in Section 798.3 of the Civil Code and "mobile home park" defi ned in Section 798.4 of the Civil Code, respectively, as those sections may be amended from time to time, or their successor code sections.

DocuSign Envelope ID: A095923C-B113-4CDF-B4EF-2AF62939908D Section 17-01.05 – Provision of Services
a) In addition to being used for the administration and enforcement of the residential rental registration requirement, the Residential Rental Registry Fees provided for in Section 17-01.04 of this Article shall be used by the Community Development Director for the provision of services to Landlords and Tenants in the City. These services may include, without limitation, the following:

1. Website content to landlord/tenant services and resources;

2. Referrals to landlord/tenant resources which may include dispute resolution services through website content and a dedicated phone line and email;

3. Education and outreach to landlords and tenants, such as handouts, mailings and webinars, about rights and obligations; and

4. Any other services for Landlords and Tenants as deemed appropriate by the Community Development Director.

b) Notwithstanding paragraph ( a), n othing in this Section 17-01.05 is intended to authorize the Community Development Director to establish a rental housing inspection program or to provide rental housing inspection services without the prior approval of the Council.

Section 17-01.06 – Miscellaneous
a) Annual Review. The Community Development Director shall annually prepare a report to the Council assessing the effectiveness of the program established under this Article and may recommend changes.

b) Business License . All Landlords shall possess a Business License, as r equired by Salinas Municipal Code Chapter 19 for any R esidential R ental Unit subject to the provisions of this Article. Submission of Residential Rental Registry Information shall be a prerequisite to a complete application for a Business License required by Section 19-9 of Chapter 19 of the Salinas Municipal Code.

Section 17-01.07 – Enforcement
a) Any person violating any provision or failing to comply wit h any of the requirements of this Article shall be deemed guilty of a misdemeanor or an infraction and may be subject to the penalties prescribed in Section 1-01.08 of the Salinas Municipal Code.

b) In addition to an Administrative Remedy or penalties available to the City, in law or equity, the City may enforce the terms of this Article through the administrative citation procedures provided in Division 1 (Administrative Citations) of Article 5 of Chapter 1 of the Salinas Municipal Code.

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c) The City Attorney may bring a civil action to seek redress for any violation(s) under this Article on behalf of the City. In any such relief, the City shall recover all civil penalties prescribed in Division 1 (Administrative Citations) of Article 5 of Chapter 1 of the Salinas Municipal Code, and any other relief the court deems proper.

SECTION 3. Compliance with the California Environmental Quality Act. Approval of this ordinance is exempt from environmental review under the general rule in California Environmental Quality Act ("CEQA") Guidelines Section 15061(b)(3). The activity is covered by the general rule which exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environment.

SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remain ing portions of this Ordinance.

SECTION 5. Publication. Prior to the expiration of fifteen (15) calendar days from the passage thereof, the ordinance or a summary thereof shall be posted or published as may be required by law, and thereafter the same shall be in full force and effect.

SECTION 6. Effective Date. This Ordinance shall take effect and be enforced thirty (30) calendar days after the date of its adoption.

PASSED AND ADOPTED on April 4, 2023, by the following vote:

AYES: Councilmembers: Osornio, Gonzalez, Barrera, Sandoval, Rocha, McShane and Mayor Craig
NOES: None
ABSENT: None
ABSTAIN: None

DocuSign Envelope ID: A095923C-B113-4CDF-B4EF-2AF62939908D APPROVED:

______________________________
Kimbley Craig, Mayor

APPROVED AS TO FORM:

_________________________________
Christopher A. Callihan, City Attorney

ATTEST:

__________________________________
Patricia M. Barajas, City Clerk

DocuSign Envelope ID: A095923C-B113-4CDF-B4EF-2AF62939908D

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