Agenda packet — San Anselmo City Council, June 13, 2023 (part 2 of 3)

SECTION 4. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance, or the application thereof to any person or place, is Item #: 3.4- Attachment 1
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15 for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The Town Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 5. Implementation Date. The provisions of this Chapter shall not be implemented by the Town of Fairfax until such time as sufficient agreements for implementation support, including, but not limited to, staffing, hearings, software and outreach, have been approved by the Town Council. Upon approval of said support agreements, the Town Council will set an implementation date by resolution.

SECTION 6. Effective Date and Posting. This Ordinance shall be effective 30 days following its adoption by the Town Council. Copies of this Ordinance shall, within fifteen days after its passage and adoption, be posted in three public places in the Town of Fairfax, to wit: 1. Bulletin Board, Town Hall Offices; Bulletin Board, Fairfax Post Office; and 3. Bulletin Board, Fairfax Women’s Club.

The foregoing Ordinance was introduced at a special meeting of the Town Council on the 11th day of October, 2022, and duly adopted at the next regular meeting of the Town Council on the 2nd day of November, 2022, by the following vote, to wit:

AYES: ACKERMAN, COLER, CUTRANO, GODDARD, HELLMAN
NOES: None
ABSENT: None
ABSTAIN: None
/s/

Stephanie Hellman, Mayor
Attest:
/s/ 11-04-22

Michele Gardner, Town Clerk Date
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1 ORDINANCE NO. 870

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX AMENDING CHAPTER 5.54 “JUST CAUSE EVICTIONS” OF TITLE 5 OF THE

FAIRFAX TOWN CODE
WHEREAS, more than 1,200 Fairfax households rent their homes, constituting approximately 37% of total town households, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and
WHEREAS, approximately 24% of Fairfax rental households are low income, which is defined as earning between 51% and 80% of the county’s area median income, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and WHEREAS, approximately 12% of Fairfax rental households are very low income, which is defined as earning between 30% and 50% of the county’s area median income, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and WHEREAS, approximately 36% of Fairfax rental households are extremely low income, which is defined as earning between 0% and 30% of the county’s area median income, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and WHEREAS, 87% of Fairfax householders under the age of 35 are renters, as identified by the U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates; and
WHEREAS, 68% of Fairfax householders who identify as Hispanic or Latino are renters, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and WHEREAS, 66% of Fairfax householders who identify their race as something other than white are renters, as identified in the 2021-04-02 Housing Needs Data Report:

Fairfax; and
WHEREAS, the right to adequate housing is an internationally recognized human right, sanctioned by the United Nations and enumerated to include protection against forced evictions, security of tenure, and non-discriminatory access, as identified by the Office of the United Nations High Commissioner for Human Rights, The Right to Adequate Housing, Fact Sheet No. 21/Rev.1; and
WHEREAS, the State of California’s Tenant Protection Act of 2019 depends on renters knowing their rights and pursuing legal remediation when those rights are violated; and
WHEREAS, Chapter 5.54 (Just Cause Evictions) of the Fairfax Town Code does not presently include protections found in some other Bay Area rent stabilization and just cause eviction ordinances, such as relocation payments for renters evicted due to no fault Item #: 3.4- Attachment 2 Item #: 3.4- Attachment 2
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2 of their own, securing the right of return/first right of refusal for renters who are evicted due to no fault of their own, and special protections against eviction for seniors, the Disabled, and for Educators and students during the school year; and WHEREAS, in accordance with Civil Code section 1946.2(g)(1)(B), the Fairfax Town Council finds that this ordinance is more protective than the provisions of Civil Code section 1946.2 for the following reasons:

(1) The just cause for termination of a residential tenancy under this Chapter is consistent with Civil Code section 1946.2; and
(2) This Chapter, and Chapter 5.55 (for which amendments are being adopted through a concurrent ordinance), further limits the reasons for termination of a residential tenancy, provides for relocation assistance, and provides additional tenant protections that are not prohibited by any other provision of law.

WHEREAS, there are an estimated 699 multi-family rental units in Fairfax, constituting approximately 57% of total renter-occupied housing units, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and
WHEREAS, an estimated 97% of all Fairfax housing units are in structures built before 1995, as identified in Appendix H-B: Housing Needs Assessment of the Town’s Housing Element Update 2015-2023.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF FAIRFAX DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The recitals above are each incorporated by reference and adopted as findings of the Town Council.

SECTION 2. Chapter 5.54 Amended. Chapter 5.54, “Just Cause Evictions,” is hereby amended in its entirety to read as follows:
“CHAPTER 5.54: JUST CAUSE EVICTIONS
Section

5.54.010 Purpose and Intent

5.54.020 Definitions

5.54.030 Just Cause for Eviction – Protections

5.54.040 Reserved

5.54.050 Relocation

5.54.060 Units Withdrawn from the Rental Market Pursuant to the Ellis Act

5.54.070 Remedies

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3 5.54.010 PURPOSE AND INTENT.

The purpose of this Chapter is to promote neighborhood and community stability, healthy housing, and affordability for renters in Fairfax by regulating arbitrary evictions to the greatest extent allowable under California law, while ensuring Landlords a fair and reasonable return on their investment.

5.54.020 DEFINITIONS.

For the purpose of this Chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CREDITWORTHINESS. Any standard of determining suitability to receive credit or reliability to pay money owed, including any financial or income standard.

DISABLED. The term “disabled” shall have the same meaning as that in Government Code section 12955.3, as may be amended or renumbered from time to time.

DWELLING UNIT. A structure or the part of a structure that is used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household as defined in Civil Code section 1940 and the Fairfax Town Code.

EDUCATOR. Any person who works at a school in Marin County as an employee or independent contractor of the school or of the governing body that has jurisdiction over the school, including, without limitation, all teachers, classroom aides, administrators, administrative staff, counselors, social workers, psychologists, school nurses, speech pathologists, custodians, security guards, cafeteria workers, community relations specialists, child welfare and attendance liaisons, and learning support consultants.

HOUSING SERVICES. Housing Services include, but are not limited to, repairs, maintenance, painting, providing light, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, access to exterior doors, entry systems, and gates, utilities (unless separately metered and billed to the Tenant by the utility company since the inception of the tenancy, as provided in the lease), refuse removal, furnishings, telephone, parking, the right to have a specified number of occupants or Tenants, the right to have pets, utility infrastructure, and any other benefit, privilege or facility connected with the use or occupancy of any Rental Unit. Housing Services to a Rental Unit shall include a proportionate part of services provided to common facilities of the building in which the Rental Unit is contained.

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.

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4 PRIMARY RESIDENCE. Occupancy of a Primary Residence 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 a 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 the individual’s primary residence;
(3) Utilities are billed to and paid by the individual at the subject premises; (4) A 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) All or most of the individual’s personal possessions have been moved into the subject premises;
(7) The subject premises are the place the individual normally returns to as their home, exclusive of military service, hospitalization, vacation, family emergency, travel necessitated by employment or education, incarceration, or other reasonable temporary periods of absence; (8) Other relevant factors demonstrating a residence is the person’s Primary Residence.

In order for a housing unit to qualify as a Primary Residence, ownership must be held in the name of the natural person claiming Primary Residence and cannot be held by a limited liability corporation, limited partnership, or other corporate structure. A housing unit that is owned by a living trust may qualify as a Primary Residence if the trust beneficiary meets the above criteria, so long as the Landlord is able to provide documentation to the Town Manager of the name and address of all trust beneficiaries.

PROPERTY. All Rental Units on a parcel or lot or contiguous parcels or contiguous lots under common ownership.

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 Agreement, as defined in this section, concerning the use or occupancy of a Rental Unit and premises, including all payment Item #: 3.4- Attachment 2
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5 and consideration demanded or paid to the Landlord for parking on or near the Property, utilities, pets, furniture, and subletting.

RENTAL 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 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 use or occupancy of such Property such as common areas and recreational facilities held out for use by a Tenant, regardless of zoning or permitting status. A room or rooms rented separately from other rooms at the same Property shall constitute a single Rental Unit, even if Tenants share other common spaces or amenities.

SCHOOL YEAR. The first day of instruction for the Fall Semester through two weeks after the last day of instruction for the Spring Semester, as posted on the School District website for each year.

TENANT. A tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a Rental Agreement to the use or occupancy of any Rental Unit.

TOWN. The Town of Fairfax, California
TOWN MANAGER. The Town Manager of the Town of Fairfax or designee.

5.54.030 JUST CAUSE FOR EVICTION – PROTECTIONS.
(A) Applicability. Except as provided herein, the provisions of this Chapter shall apply to all properties in Fairfax that are hired, rented, or leased to a household within the meaning of Cal. Civil Code section 1940, including properties that contain any of the following: (1) Dwelling Units which contain a separate bathroom, kitchen, and living area in a multifamily or multipurpose dwelling; (2) Dwelling Units in single room occupancy residential structures; or (3) units in a structure that is being used for residential uses whether or not the residential use is a conforming use permitted under the Fairfax Town Code. This definition applies to any dwelling space that is actually used for residential purposes, including live-work spaces, whether or not the residential use is legally permitted.
(B) Exemptions. The following Rental Units shall be exempt from this section, except that all exempt units must comply with the requirement of section 5.54.030(D). (1) Rental Units in hotels, motels, and inns, which are rented primarily to transient guests for a period of fewer than thirty (30) days. This exemption does not apply (a) to a Tenant who has resided at the Property for more than thirty continuous days (b) to a Tenant who has entered into an agreement to lease a Rental Unit for 30 Item #: 3.4- Attachment 2
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6 days or more (c) where a Landlord has violated California Civil Code 1940.1 with regard to the Tenant or (d) a Rental Unit used exclusively as a Short-Term Rental as defined in Fairfax Town Code Section 17.008.020.
(2) Rental Units in any 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) Rental Units which a government unit, agency or authority fully owns, operates and manages. This exemption applies only if applicable federal or state law or administrative regulation specifically exempt such units from municipal Rent stabilization.
(4) Any Dwelling Unit located in a development where the Dwelling Units are subject to legally binding restrictions enforceable against and/or governing such units that limit the Rent to no more than an affordable rent, as such term is defined in Cal. Health & Safety Code section 50053,and as subsequently amended. (C) No Landlord shall take action to terminate any tenancy, including but not limited to making a demand for possession of a Rental Unit, threatening to terminate a tenancy verbally or in writing, serving any notice to quit or other eviction notice, bringing any action to recover possession or be granted recovery of possession of a Rental Unit, including by seeking the entry of an eviction judgment or by causing or permitting a writ of possession to be entered unless the Landlord is able to prove the existence of one of the following grounds as stated in the termination notice on which the court action is based:
(1) Failure to Pay Rent. The Tenant has failed to pay the Rent to which the Landlord is legally entitled under the Rental Agreement, this Chapter, federal, state, and any other local law.
(a) In any action to recover possession of a Rental Unit filed under this subsection, it shall be a defense if the Landlord impeded the Tenant's effort to pay Rent by refusing to accept Rent paid on behalf of the Tenant from a third party, or refusing to provide a W-9 form or other necessary documentation for the Tenant to receive rental assistance from a government agency, non-profit organization, or other third party. Acceptance of rental payments made on behalf of the Tenant by a third party shall not create a tenancy between the Landlord and the third party as long as either the Landlord or the Tenant provide written notice that no new tenancy is intended. (b) COVID-19 State Law Preemption. This Chapter shall not apply to unlawful detainer action for nonpayment of Rent originally due from March 1, 2021 through March 31, 2022, where prohibited by Code of Civil Procedure section 1179.05 or successor statute.

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7 (2) Breach of Lease. The Tenant has continued, after written notice to cease, to substantially violate any of the written material terms of the Rental Agreement, except the requirement to surrender possession on proper notice as required by law. To constitute a breach of lease, the substantially violated term must be reasonable and legal and have been accepted in writing by the Tenant as part of the Rental Agreement; and provided further that, where such term was accepted by the Tenant or made part of the Rental Agreement subsequent to the initial creation of the tenancy, the Landlord must have first notified the Tenant in writing that they need not accept such terms or agree to the terms being made part of the Rental Agreement. (a) Notwithstanding any lease provision to the contrary, a Landlord shall not take any action to terminate a tenancy based on a Tenant’s sublease of the Rental Unit if the Landlord has unreasonably withheld the right to sublease following written request by the Tenant. The following requirements must be met:
(i) The Tenant continues to reside in the Rental Unit as their primary residence.
(ii) The sublease replaces one or more departed Tenants under the Rental Agreement on a one-for-one basis or the sublease adds additional occupants up to the maximum amount of occupants legally allowed under section 503(b) of the Uniform Housing Code as incorporated by California Health & Safety Code section 17922, except where prohibited by law.
(iii) A Landlord’s refusal of a subtenant must state the reason for the refusal. If the Landlord fails to respond to the Tenant’s request to sublease in writing within fourteen (14) days of receipt of the Tenant’s request, the Tenant’s request shall be deemed approved by the Landlord. (iv) 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 the occupant will not be legally obligated to pay some or all of the Rent directly to the Landlord. A Landlord's reasonable refusal of the Tenant's written request may be based on the ground that the total number of occupants in a Rental Unit exceeds the maximum number of occupants under section 503(b) of the Uniform Housing Code as incorporated by California Health & Safety Code section 17922. (b) Before endeavoring to recover possession based on the violation of a lawful 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 (ii) of section

5.54.030(C)(2)(a) or by using other reasonable means to cure the violation.

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8 (c) Protections for Families. Notwithstanding any contrary provision in this section, a Landlord shall not endeavor to recover possession of a Rental Unit as a result of the addition to the Rental Unit of a Tenant's child, 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 a 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 & Safety Code section 17922.
(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 and, after written notice, has refused to cease damaging the premises, or has refused to either make satisfactory correction or to pay the reasonable costs of repairing such damage over a reasonable period of time.

The fact that a Tenant has been arrested or convicted of a crime, been the victim of a crime, or contacted the police, in and of itself, is not evidence of nuisance for purposes of this subsection.
(4) Failure to Give Access. The Tenant has continued to refuse, 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 unit to a prospective purchaser or mortgagee or making necessary repairs or improvements required by the laws of the United States, the State of California or any subdivision thereof. To terminate a tenancy under this subsection, a Landlord must show that written notice was provided to the Tenant in compliance with Civil Code section 1954. (5) Temporarily Vacate in Order to Undertake Substantial Repairs. The Landlord, after having obtained all necessary permits from the Town, seeks in good faith 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 of code violations affecting the health and safety of Tenants of the building, and where such repairs while the Tenant resides on the premises require the Tenant to temporarily vacate for at least 30 days.
(a) Where such repairs can be completed in a period of 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 subsection unless the Tenant shall fail or refuse to vacate the premises in accordance with such agreement.
(b) Where the Landlord owns any other residential Rental Units in the Town of the same number of bedrooms or fewer, and any such unit is vacant and available at the time of service of the written notice terminating the tenancy, or at any time thereafter until the earlier of the Tenant's vacating the premises or the entry of a Item #: 3.4- Attachment 2
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9 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 each such vacant Rental Unit and offer the Tenant the right, at the Tenant's option, to enter into a Rental Agreement (to be designated as a "temporary rental agreement") for the 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 Rent in effect at the time of the notice of termination of tenancy on the unit being vacated. Said Rental Agreement shall be for a term of the lesser of ninety days or until completion of repairs for the Rental Unit being vacated by Tenant. (c) A notice terminating tenancy under this subsection must include the following information:
(i) A statement informing Tenants as to their right to
relocation payments under this Chapter.
(ii) The statement, "When the needed repairs are
completed on your unit, the Landlord must offer you the opportunity to return to your unit with a Rental Agreement containing the same terms as your original one and with the same rent.”
(iii) A description of the repairs to be completed and the approximate expected duration of the repairs.
(d) Where the Landlord recovers possession under this
subsection either prior to or after an unlawful detainer judgment, the Tenant must be given the right of first refusal to re-occupy the unit. The Landlord shall notify the Tenant household at least sixty (60) days in advance of the availability of the unit or room.

Within thirty (30) days of receipt of the notice of availability, a Tenant household must notify the Landlord if it wishes to reoccupy the unit or room. The Landlord must hold the unit or room vacant at no cost to the Tenant for sixty (60) days from the date the Tenant household’s written notice of its intent to reoccupy the Rental Unit or room is received. (6) 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, child, parent or grandparent.
(a) A Landlord, as used in this subsection, shall only include a Landlord that is a natural person who has at least a 51% recorded ownership interest in the Property.
(b) 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. Only one specific unit per building may undergo an “Owner Move-in” eviction. Once a Landlord has successfully recovered Item #: 3.4- Attachment 2
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10 possession of a Rental Unit pursuant to this subsection, no other Landlords may recover possession of any other Rental Unit at the Property under the subsection. Any future evictions taking place at the same Property under this subsection must be of that same Rental Unit. At all times, a Landlord may request a reasonable accommodation if the Landlord or enumerated relative is Disabled and a different unit is necessary to accommodate the person’s disability. A Landlord who has terminated a tenancy for a Rental Unit under this subsection may not terminate a tenancy for a Tenant who subsequently reoccupies a Rental Unit after termination of tenancy under this subsection or relocates to a comparable Rental Unit on the same Property for a period of four years commencing from the date of the latest notice to vacate. (c) The notice terminating tenancy shall contain the name and relationship to the Landlord of the person intended to occupy the Rental Unit. (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 to occupy the Rental Unit as a Primary Residence for at least one year . (e) If the Landlord or relative specified on the notice terminating tenancy fails to occupy the Rental Unit within 90 days after the Tenant vacates, the Landlord shall:

(i) Offer the unit to the Tenant who vacated it at the
same Rent in effect at the time the Tenant vacated; and (ii) Pay to said Tenant all reasonable expenses incurred in moving to and from the unit, include lease termination fees. This subsection does not limit any other remedies a Tenant may have under this Chapter or applicable law. (iii) If the Landlord or enumerated relative fails to occupy the Rental Unit within 90 days after the Tenant vacates or does not occupy the Rental Unit as a Primary Residence for at least one year, the Landlord shall have the burden of producing evidence that the failure to occupy did not occur in bad faith. (f) If the Landlord or relative specified on the notice terminating tenancy fails to occupy the Rental Unit within ninety days and the previous Tenant declines to move back into the Rental Unit, any new Tenant moving into the Rental Unit will have as the original base Rent the Rent in effect at the time the previous Tenant vacated.
(g) Eviction Protection for Elderly, Disabled, or Terminally Ill Tenants. A Landlord may not evict a Tenant pursuant to this subsection if (a) the Tenant has resided in the Rental Unit for at least three (3) years and is either at least 62 years of age or Disabled; or (b) if the Tenant is certified as being terminally ill by the Tenant’s treating physician. For the purposes of this subsection, notwithstanding the above, a Landlord may evict a Tenant who qualifies for the exemption if the Landlord or Item #: 3.4- Attachment 2
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11 enumerated relative who will occupy the Rental Unit is also Disabled and no other units are available at the Property.
(h) Within 30 days after the effective date of a written notice of termination under this subsection is filed with the Town Manager, the Town Manager shall record a notice of constraints with the County Recorder identifying each Rental Unit on the Property that is the subject of the subsection 5.54.030(C)(6) notice to vacate, stating the nature and dates of applicable restrictions under subsections

5.54.030(C)(6)(e), 5.54.030(C)(6)(f), and 5.54.030(E), and any other restrictions per applicable regulations. The Town Manager shall also send a notice to the Rental Unit that states the maximum Rent for that unit, and shall send an updated notice to the unit 12 months, 24 months, 36 months, 48 months, and 60 months thereafter, or within 30 days of such date. If a notice of constraints is recorded but the Tenant does not vacate the Rental Unit, the Landlord may apply to the Town Manager for a rescission of the recorded notice of constraints. No further notices to the Rental Unit pursuant to this subsection are required if the constraints on the unit are rescinded. (i) A Landlord may not evict a Tenant under this subsection if there is a comparable Rental Unit occupied by a Tenant who moved onto the Property more recently than the Tenant from whom the Landlord seeks to recover possession. (7) Withdrawal from Rental Market. The Landlord seeks in good faith to recover possession of all Rental Units on a parcel of land to permanently withdraw the units from the rental market or for demolition so long as the withdrawal is permitted by the Ellis Act (Government Code section 7060 et seq.). The Landlord must have fulfilled all requirements of section 5.54.060 of this Code and all Town regulations initiating the procedure for withdrawing Rental Units from Rent or lease, with the intention of completing the withdrawal process and going out of the rental business or demolishing.

Tenants shall be entitled to a minimum of 120-day notice or one year in the case a Tenant is at least 62 years of age or Disabled. Notice times may be increased by regulations if state law allows for additional time.
(8) Buy-Out Agreements. Nothing in this Chapter shall expand or limit a Landlord and Tenant’s ability to negotiate or agree to end a tenancy voluntarily in exchange for money or other consideration. All buy-out agreements under this section must be in writing, provided in English and translated into any other language at the Tenant’s request, and include:
(a) A statement that the Tenant has the right not to enter into a proposed buy-out agreement;
(b) A statement that the Tenant may consult with an attorney of their choosing before entering into a buy-out agreement; (c) A space for each Tenant to sign and write the date upon which the Landlord provided the Tenant with the agreement.

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12 (9) Termination of Temporary Tenancy. The Landlord seeks in good faith to recover possession of a separately alienable Rental Unit for their occupancy as a Primary Residence. This shall apply only where the Landlord has previously occupied the Rental Unit as their Primary Residence and has the right to recover possession of the unit for their occupancy as a Primary Residence under an existing written Rental Agreement for a term of no more than 12 consecutive months that was executed with the current Tenants. The temporary Tenant must be provided, at the inception of the tenancy, with a written statement that includes the length of the tenancy and that the tenancy may be terminated at the end of the temporary tenancy period. No relocation is required under this subsection.
(D) In any action to recover possession of a Rental Unit pursuant to this section 5.54.030, a Landlord must allege and prove that the Landlord seeks to recover possession of the unit with good faith, honest intent and with no ulterior motive for the reason stated in the termination notice. If a Landlord claims the Rental Unit is exempt from this ordinance, the Landlord must allege and prove that the unit is covered by one of the exceptions enumerated in subsection 5.54.030(B) of this Chapter. Such allegations must appear in the notice of termination of tenancy. Failure to make such allegations in the notice shall be a complete defense to any unlawful detainer action. (E) Right of Return and First Right of Refusal. All Tenants that are displaced based on sections 5.54.030(C)(5) or (C)(6) or shall have the first right of refusal to return to the unit if it should ever be returned to the market by the Landlord or successor Landlord. The return tenancy shall include the same terms as the original tenancy and the Rent shall be the Rent lawfully paid by the Tenant at the time the Landlord gave notice of termination on a basis listed in sections 5.54.030(C)(5) or (C)(6) plus any lawful adjustment under section 5.55.080. All notices of termination of tenancy served under sections 5.54.030(C)(5) or (C)(6) shall state the lawful Rent in effect at the time of termination of tenancy. If the Tenant declines to reoccupy the Rental Unit after it is returned to the rental market, the lawful base Rent for the new tenancy shall be the Rent lawfully paid by the Tenant at the time the Landlord served the termination notice, plus any lawful adjustment under this Chapter or Chapter 5.55. (F) School Year Protections for Educators and Students. It shall be a defense to an eviction under sections 5.54.030(C)(5) or (C)(6) if a child under the age of 18 or any Educator resides in the unit, the child or Educator is a Tenant in the unit or the child has a custodial or family relationship with a Tenant in the unit, the Tenant has resided in the unit for 12 months or more, and the expiration date of the notice of termination of tenancy falls during the School Year.
(G) Written Warning Notice Requirements. Any written warning notice as described in subsections 5.54.030(C)(2)-(4) shall be served by the Landlord on the Tenant within a reasonable period prior to serving a notice to terminate tenancy and shall inform the Tenant that a failure to cure may result in the initiation of eviction proceedings, of the right to request a reasonable accommodation for disability, and the Item #: 3.4- Attachment 2
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13 contact number for the Town Manager. A reasonable period shall be presumed to be seven days. The notice shall also include sufficient details allowing a reasonable person to comply. 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.
(H) Retaliation is Barred. Notwithstanding the above provisions, possession shall not be granted if it is determined that the eviction is knowingly in retaliation for the Tenant reporting violations of this Chapter, for exercising rights granted under this Chapter or other law, or for forming or participating in a Tenant Organization. (I) Additional Notice Requirements. In any notice purporting to terminate 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. All notices described in subsections 5.54.030(C)(2)-(4) shall be attached to any notices that purport to terminate a tenancy for which they correspond. The Landlord shall file with the Town Manager a copy of any notice terminating tenancy within three (3) days after serving the notice on the Tenant. (J) Failure to Comply. Failure to comply with any requirement of this Chapter or any implementing regulation may be asserted as an affirmative defense in an action brought by the Landlord to recover possession of the Unit. Additionally, any attempt to recover possession of a Rental Unit or recover of possession in violation of this Chapter shall render the Landlord liable to the Tenant in a civil action for wrongful eviction for treble damages. The Tenant may seek injunctive relief, equitable relief, and money damages. In any action for equitable relief, it shall be presumed that a Tenant suffers irreparable harm through violation of this Chapter. A Tenant or Landlord prevailing in an action brought under this Chapter that is not an unlawful detainer action shall recover costs and reasonable attorney fees. The statute of limitations for all remedies in this section shall be three years. The remedies under this section are cumulative, and may be used in addition to any other remedies in this Chapter or at law, statute, or ordinance.

5.54.040 RESERVED.

5.54.050 RELOCATION.
(A) A Landlord seeking to recover possession under sections 5.54.030(C)(5)- (7) must make relocation payments to the Tenant’s household of the Rental Unit. The amount of the relocation benefit shall be equal to two months’ Rent, at the rate of Rent applicable at the time of the relocation. Relocation payments shall be paid at the time of the service of the notice of termination of tenancy. If the Tenant fails to vacate the unit, the relocation payment must be returned to the Landlord. (B) Notwithstanding subsections 5.54.050(A), any Tenant household that, at the time the notice of intent to withdraw Rental Units is filed with the Town, includes a Item #: 3.4- Attachment 2
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14 Tenant who is 62 years of age or older, 17 years of age or younger, Disabled, or certified as being terminally ill by the Tenant’s treating physician shall be entitled to receive an additional payment of $3,000.
(C) Every year following the date of passage, the relocation payments specified in subsections 5.54.050(A) and (B) shall increase annually at the rate of increase in the “rent of primary residence” expenditure category of the Consumer Price Index (CPI) for Marin County for the preceding calendar year, as that data is made available by the United States Department of Labor and published by the Town.
(D) Short-Term Tenant Relocation.
(1) Where a Tenant shall be displaced from their Rental Unit for renovation work for a period of thirty days or less, the Landlord shall immediately make short-term relocation payments to the Tenant as set out in subsection 3, below, or the Tenant may elect not to receive short-term relocation payments. If the Tenant receives short-term relocation payments, the Tenant remains obligated to pay the lawful Rent in effect when the Tenant vacated. If the Tenant has elected not to receive short-term relocation payments, the Tenant shall not be obligated to pay Rent until the Tenant reoccupies the Rental Unit. (2) Should a Tenant be displaced for a greater time than originally notified, the Landlord shall pay additional short-term relocation expenses for each additional day of displacement, to be paid on a weekly basis prior to each additional week.
(3) The following amounts shall be paid by the Landlord to the Tenant for each day of displacement:
(i) Hotel or motel accommodations: $168.15 per household; (ii) Meal expenses: $33.85 per occupant;
(iii) Laundry: $1.12 per household;
(iv) Pet accommodation: $32.73 per cat and $58.69 per dog. (4) Replacement amounts shall be adjusted yearly based on the CPI increase. The Town Manager shall publish the new relocation amounts each year following the increase.
(E) If a Landlord fails to provide relocation payments in accordance with this section, in addition to any other remedy under this Chapter, or at law, the Tenant may pursue a civil action for the amount of relocation payments they would have been entitled to and costs of suit. The statute of limitations for all remedies in this section Item #: 3.4- Attachment 2
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15 shall be three years. The remedies of this section are cumulative, and may be used in addition to any other remedy available in this Chapter or at law. (F) A Landlord’s failure to properly allege and prove a permissible ground for eviction under sections 5.54.030(C)(5)-(7) is not a defense to failing to provide relocation payments when a Landlord recovers the Rental Unit in violation of section

5.54.030. Further, where a Tenant vacates a Rental Unit within one year of receiving a termination notice pursuant to sections 5.54.030(C)(5)-(7), the reason for vacating shall be presumed to be the termination notice.

5.54.060 UNITS WITHDRAWN FROM THE RENTAL MARKET PURSUANT TO THE ELLIS ACT.

The following shall apply to a unit where possession is recovered pursuant to section

5.54.030(C)(7) of this Chapter.
(A) Re-Rental of Rental Unit within Two Years. If the Rental Unit is offered again for Rent or lease for residential purposes within two years of the date the Rental Unit was withdrawn from Rent or lease, the following provisions shall govern:
(1) The Landlord of the Rental Unit shall be liable to any Tenant who was displaced from the Property by that action for treble damages. Any action by a Tenant pursuant to this paragraph shall be brought within three years of the withdrawal of the Rental Unit from Rent or lease. However, nothing in this paragraph precludes a Tenant from pursuing any alternative remedy available under the law. (2) The Town Manager may institute a civil proceeding against any Landlord who has re-offered a Rental Unit for Rent or lease subject to this subsection, for exemplary damages for displacement of Tenants. Any action pursuant to this paragraph shall be brought within three years of the withdrawal of the Rental Unit from Rent or lease.
(3) Any Landlord who offers a Rental Unit again for Rent or lease shall first offer the unit for Rent or lease to the Tenant displaced from that unit by the withdrawal pursuant to this Chapter, if the Tenant has advised the Landlord in writing, within 30 days of the displacement, of the Tenant’s desire to consider an offer to renew the tenancy and has furnished the Landlord with an address to which that offer is to be directed. That Tenant or former Tenant may advise the Landlord at any time during the eligibility of a change of address to which an offer is to be directed.

If the Landlord re-offers the Rental Unit for Rent or lease pursuant to this subsection, and the Tenant has advised the Landlord pursuant to this subsection of a desire to consider an offer to renew the tenancy, then the Landlord shall offer to reinstate a Rental Agreement or lease on terms permitted by law to that displaced Tenant.

Item #: 3.4- Attachment 2
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16 This offer shall be deposited in the United States mail, by registered or certified mail with postage prepaid, addressed to the displaced Tenant at the address furnished to the Landlord as provided in this subsection, and shall describe the terms of the offer. The displaced Tenant shall have 30 days from the deposit of the offer in the mail to accept the offer by personal delivery of that acceptance or by deposit of the acceptance in the United States mail by registered or certified mail with postage prepaid.
(B) Re-Rental of Units within Five Years
(1) For all tenancies commenced during the time periods described below, the Rental Unit shall be offered and rented or leased at the lawful Rent in effect at the time any notice of intent to withdraw the Rental Unit is filed with the Town Manager, plus annual adjustments available under section 5.55.080 of this Code. (2) The provisions of paragraph (1) shall apply to all tenancies commenced during either of the following time periods:
(a) The five-year period after any notice of intent to withdraw the Rental Unit is filed with the Town Manager, whether or not the notice of intent is rescinded or the withdrawal of the Rental Unit is completed pursuant to the notice of intent.
(b) The five-year period after the Rental Unit is withdrawn. (3) This subsection shall prevail over any conflicting provision of law authorizing the Landlord to establish the rental rate upon the initial hiring of the Rental Unit.
(C) Re-Rental of Rental Units Within Five Years A Landlord who offers a Rental Unit again for Rent or lease within 5 years from the date on which it is withdrawn, and which is subject to this subsection, shall first offer the unit to the Tenant displaced from the unit by the withdrawal, if that Tenant requests the offer in writing within 30 days after the Landlord has notified the Town of an intention to offer the Rental Unit again for residential Rent or lease. The Landlord of the Rental Unit shall be liable to any Tenant who was displaced by that action for failure to comply with this paragraph, for punitive damages in an amount which does not exceed the contract Rent for six months, and the payment of which shall not be construed to extinguish the Landlord’s obligation to comply with this subsection.
(D) Demolition Restrictions. If the Rental Unit(s) are demolished, and new Rental Unit(s) are constructed on the same property, and offered for Rent or lease within four years of the date the Rental Unit(s) were withdrawn from Rent or lease, the newly constructed Rental Unit(s) shall be subject to the system of regulation established in section 5.55.080 at which they would be offered on the basis of a fair and reasonable Item #: 3.4- Attachment 2
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17 return on the newly constructed Rental Unit, notwithstanding any exemption from the system of regulations for newly constructed Rental Unit. (E) Applicability to Successors in Interest. This section shall apply to all successors in interest of a Landlord who has withdrawn Rental Units from Rent or lease. The Town Manager shall record a notice with the county recorder which shall specifically describe the real property where the Rental Unit is located, the dates applicable to the constraints and the name of the Landlord of record of the real property.

The notice shall be indexed in the grantor-grantee index. (F) A person who acquires title to the real property subsequent to the date upon which the Rental Unit thereon have been withdrawn from Rent or lease, as a bona fide purchaser for value, shall not be a successor in interest for the purposes of this Chapter if the notice prescribed by this section has not been recorded with the county recorder at least one day before the transfer of title. (G) Notice of Withdrawal. A Landlord who seeks to demolish or withdraw a Rental Unit from the rental market under section 5.54.030(C)(7) must provide the Town Manager with a notice, that states, under penalty of perjury:
(1) The number of Rental Units withdrawn;
(2) The address or location of those Rental Units;
(3) The name or names of the Tenants of the Rental Units; and (4) The lawful Rent applicable to each Rental Unit.
(H) The name or names of the Tenants, the Rent applicable to any residential Rental Unit, and the total number of Rental Units, is confidential information and for purposes of this Chapter shall be treated as confidential information for purposes of the Information Practices Act of 1977 (Chapter 1 (commencing with section 1798) of Title

1.8 of Part 4 of Division 3 of the Civil Code).
(I) The Landlord must record with the county recorder a memorandum summarizing the provisions, other than the confidential provisions, of the notice in a form which shall be prescribed by the Town Manager, and will require a certification with that notice that actions have been initiated as required by law to terminate any existing tenancies.
(J) The Landlord must notify the Town Manager in writing of the intention to re-offer the Rental Unit for Rent or lease.
(K) The date on which the Rental Unit is withdrawn from Rent or lease for purposes of this Chapter is 120 days from the delivery in person or by first-class mail of the notice of withdrawal to the Town Manager. However, if the Tenant is at least 62 Item #: 3.4- Attachment 2
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18 years of age or Disabled, and has lived in their Rental Unit for at least one year prior to the date of delivery of the notice of intent to withdraw, then the date of withdrawal of the Rental Unit of that Tenant shall be extended to one year after the date of delivery of that notice, provided that the Tenant gives written notice of their entitlement to an extension to the Landlord within 60 days of the date of delivery of the notice of intent to withdraw. (L) Extension of Tenancy for Elderly or Disabled Tenants. If a Tenant notifies a Landlord in writing within 60 days of the Town Manager receiving the notice of intent to withdraw the Rental Unit, the following provisions shall apply:
(1) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery to the Town Manager of the notice of intent to withdraw, subject to any adjustments otherwise available under this Chapter. (2) No party shall be relieved of the duty to perform any obligation under the lease or rental agreement.
(3) The Landlord may elect to extend the tenancy on any other Rental Unit within the rental Property up to one year after date of delivery of the notice of intent to withdraw, subject to paragraphs (1) and (2) of this subsection. (4) Within 30 days of the notification by the Tenant to the Landlord of their entitlement to an extension, the Landlord shall give written notice to the Town Manager of the claim that the Tenant is entitled to stay in their Rental Unit for one year after date of delivery of the notice of intent to withdraw. (5) Within 90 days of date of delivery to the Town Manager of the notice of intent to withdraw, the Landlord shall give written notice of the Landlord’s election to extend a tenancy under paragraph (3) and the revised date of withdrawal to the Town Manager and any Tenant whose tenancy is extended. (6) The date of withdrawal for the Rental Unit as a whole, for purposes of calculating any time-periods in this Chapter, shall be the latest termination date among all Tenants within the Rental Unit, as stated in the notices required by paragraphs (4) and (5). A Landlord’s further voluntary extension of a tenancy beyond the date stated in the notices required by paragraphs (4) and (5) shall not extend the date of withdrawal.
(M) The Landlord must notify any Tenant displaced pursuant to subsection

5.54.030(C)(7) of the following:
(1) That the Town Manager has been notified pursuant to subsection

5.54.060(G).
(2) That the notice to the Town Manager specified the name and the amount of Rent paid by the Tenant as an occupant of the Rental Unit.

Item #: 3.4- Attachment 2
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19 (3) The amount of Rent the Landlord specified in the notice. (4) Notice to the Tenant of their rights under this subsection. (5) Notice to the Tenant of the following:
(a) If the Tenant is at least 62 years of age or Disabled, and has lived in their Rental Unit for at least one year prior to the date of delivery to the Town Manager of the notice of intent to withdraw, then tenancy shall be extended to one year after date of delivery to the Town Manager of the notice of intent to withdraw, provided that the Tenant gives written notice of their entitlement to the Landlord within 60 days of date of delivery to the Town Manager of the notice of intent to withdraw. (b) The extended tenancy shall be continued on the same terms and conditions as existed on date of delivery to the Town Manager of the notice of intent to withdraw, subject to any adjustments otherwise available under section 5.55.080 of this Code.
(c) No party shall be relieved of the duty to perform any obligation under the lease or Rental Agreement during the extended tenancy. (N) Not later than the last day of the third and sixth calendar months following the month in which notice is given to the Town Manager, and thereafter not later than December 31 of each calendar year for a period of two years, beginning with the year in which the six-month notice is given, the Landlord of any Property which contains or formerly contained one or more Rental Units which a Tenant or Tenants vacated pursuant to section 5.54.030(C)(7) shall notify the Town Manager, in writing, under penalty of perjury, for each such Rental Unit:
(1) Whether the Rental Unit has been demolished;
(2) If the Rental Unit has not been demolished, whether it is in use; (3) If the Rental Unit is in use, whether that use is residential; (4) If the Rental Unit is in residential use, the date the tenancy began, the name of the Tenant(s), and the amount of Rent charged. (O) If a Rental Unit has been demolished, and one or more new units constructed on the lot, the Landlord shall furnish the information required by items (M)(2), (3) and (4), above, for each new unit. The Town Manager shall maintain a record of the notices received under this section and all notices received under this section for each Rental Unit withdrawn from the rental market pursuant to section 5.54.030(C)(7).

Item #: 3.4- Attachment 2
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20 (P) The Town Manager shall notify each person who is reported as having become a Tenant in a vacated or new Rental Unit subject to the reporting requirements of subsection 5.54.060(N) that it maintains the records described in subsection

5.54.060(M), and that the Rent of the Rental Unit may be restricted pursuant to this Chapter.
(Q) The Town Manager shall maintain a register of all Rental Units withdrawn from Rent or lease under section 5.54.030(C)(7) and the Rent applicable to each unit at the time of withdrawal. The Town Manager shall inform Tenants displaced from units withdrawn from Rent or lease at the address provided by the Tenant, when the Landlord notifies the Town Manager that the Rental Unit or replacement unit will again be offered for Rent or lease within two years of the date of withdrawal. (R) The Town Manager may investigate whether a Rental Unit that was withdrawn from Rent or lease has been again offered for Rent or lease, and whether the Landlord has complied with the provisions of this section.

5.54.070 REMEDIES.

Affirmative Defense. A Landlord’s failure to comply with this Chapter, including but not limited to the identification of an applicable cause for termination described in section 5.54.030 and delivery of a completed notice of termination in accordance with the same, shall be an affirmative defense to an unlawful detainer action by Landlord. (B) Civil Liability. Whenever a Landlord attempts to prevent a Tenant from acquiring any rights under this Chapter, retaliates against a Tenant for the exercise of any rights under this Chapter, or engages in activities prohibited under this Chapter, the Tenant may institute a civil proceeding for money damages or injunctive relief, or both.

This section creates a private right of action to enforce all terms, rights, and obligations under this Chapter. Whoever is found to have violated this Chapter shall be subject to appropriate injunctive relief and shall be liable for damages, costs, and reasonable attorneys’ fees, and whatever other relief the court deems appropriate. In the case of an award of damages, said award may be trebled if the trier of fact finds that the Landlord acted in knowing violation, reckless disregard, or otherwise willfully failed to comply with this Chapter. The court may award the defendant attorney’s fees and costs as the prevailing party in cases where plaintiff’s claim is deemed unreasonable, frivolous, meritless, or vexatious.
(C) Civil Actions to Determine Liability. Any Tenant may bring a civil action to determine the applicability of this Chapter to the tenancy. (D) Other Private Rights of Action. Nothing herein shall be deemed to interfere with the right of a Landlord to file an action against a Tenant or non-tenant third party for the damage done to said Landlord’s property. Nothing herein is intended to limit the damages recoverable by any party through a private action.” Item #: 3.4- Attachment 2
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21 SECTION 3. Compliance with CEQA. The Town Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of the Ordinance may have a significant effect on the environment, in that this ordinance applies residential tenant protection to existing residential units in the Town of Fairfax, which is solely an administrative process resulting in no physical changes to the environment. Accordingly, this ordinance contains no provisions modifying the physical design, development, or construction of residences or nonresidential structures.

SECTION 4. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance, or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The Town Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 5. Implementation Date. The provisions of the Chapter shall not be implemented by the Town of Fairfax until such time as sufficient agreements for implementation support, including, but not limited to, staffing, hearings, software and outreach, have been approved by the Town Council. Upon approval of said support agreements, the Town Council will set an implementation date by resolution.

AYES: ACKERMAN, CUTRANO, GODDARD, HELLMAN
NOES: COLER
ABSENT: None
ABSTAIN: None
/s/

Stephanie Hellman, Mayor
/s/ 11-04-22
Attest:

Michele Gardner, Town Clerk Date
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CITY OF LARKSPUR
Staff Report
May 22, 2023, Special City Council Meeting
DATE: May 17, 2023
TO: Honorable Mayor Paulson and the Larkspur City Council FROM: Dan Schwarz, City Manager
Sky Woodruff, City Attorney
SUBJECT: PUBLIC HEARING #2 ON RENT STABILIZATION AND EVICTION

PROTECTIONS
___________________________________________________________________________ This hearing is a follow-up to a hearing held on May 8, 2023. The text of this report was provided for the May 8th hearing. New information and comments are highlighted within the body of the report.

ACTION REQUESTED
Conduct a public hearing and consider the possible format and details of ordinances concerning rent stabilization and eviction protections.

SUMMARY
Through public workshops and ad hoc committees, the City Council has explored the concepts of rent stabilization and eviction protections since the summer months of 2022. At its March 15, 2023, meeting, the Council decided to transition from exploring these topics to preparing and considering specific terms and regulations. To facilitate the hearing, staff has prepared a draft rent stabilization ordinance that reflects a combination of Council feedback to date and staff recommendations. The ordinance has some details left unspecified or blank, as the Council will need to use the hearing process to decide on these details.

With respect to eviction protections, staff has provided a series of discussion topics that should be addressed in the public hearing in order to craft an ordinance.

The Council conducted a public hearing on May 8, 2023. During the public hearing, the Council provided some feedback to staff that is identified in the body of the report.

BACKGROUND AND DISCUSSION
All prior staff reports on these topics are incorporated by reference and should be considered as part of the record for the public hearing. These staff reports include examples of rent stabilization and eviction protection ordinances that the Council may wish to draw upon.

San Anselmo Item #: 3.4- Attachment 3
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Rent Stabilization
During its workshops on rent stabilization, the Council expressed a desire that the ordinance it consider be as streamlined and easy to interpret and administer as possible. For the exercise of crafting the draft ordinance before the Council, staff reviewed ordinances across the state and concluded that the rent stabilization ordinance of the City of Oxnard would provide a good basis for Larkspur’s draft. Oxnard’s ordinance appears to have taken the general structure of the Tenant Protection Act and added the necessary elements for a local ordinance.

The draft before the Council provides for the following:
• Local rent stabilization based on a rent increase ceiling (“cap”). The cap is the amount rent can be increased in a 12-month period without requiring submission of an application to the City. The cap is left unspecified. Staff previously recommended a fixed cap and suggested 4%. The Council indicated it did not agree with staff’s recommendation but was unable to agree upon a cap. As a basis for the Council’s determination of a cap, the Council may want to discuss the two extremes of its array of alternatives, the Tenant Protection Act (5% + CPI, not to exceed 10%) and the Town of Fairfax ordinance (two-thirds of CPI or 5%, whichever is lower). All other ordinances staff reviewed fall somewhere between these two options.

At its May 8 meeting, the Council discussed setting a cap. Two ideas were offered for discussion:
 two-thirds of CPI or 5%, whichever is lower; and
 5%+CPI or 7%, whichever is lower.
• A right to a fair return application process by which a landlord can appeal to exceed the cap. The process includes notice to all affected tenants, who would then have a period to comment on the application. Key factors that will be considered in such applications are described in the ordinance. The draft ordinance delegates authority to the City Manager and staff to review the application by creating a process and methodology that involves the use of experts in the economics of rental properties – a cost borne by the applicant. • The determination of the City Manager or designee is final and not subject to appeal. This approach eliminates the need for an appeals board. If a party is not satisfied with the determination of the City Manager, they would appeal to the courts.

Staff believes it might be helpful to offer mandatory mediation as an option for tenants to invoke if the City Manager determines that an increase above the cap should be allowed.

Such a provision is not in the Oxnard ordinance, but staff believes it might be helpful in giving the tenant a final opportunity to speak with the landlord in a neutral setting. If the outcome of mandatory mediation is not satisfactory, the tenant would still have the option to challenge the determination of the City Manager through the courts.

If the Council does not agree with staff’s recommendation to make the City Manager’s determination final and not subject to appeal, the alternative is to create an appeals board.

This board can be appointed or the Council can sit as the appeals board. If the Council prefers an appeals board, staff recommends following the approach of the City of Fremont, which is to have an appointed board comprised of two landlords, two tenants, and a resident who is neither a landlord or a tenant.

At the May 8 meeting, some of the Councilmembers expressed a preference for an appeals board.

San Anselmo Item #: 3.4- Attachment 3 San Anselmo Item #: 3.4- Attachment 3 392
• As drafted the rent stabilization regulations would apply to the same properties as the Tenant Protection Act. Properties excluded would be:
o Single-family homes, unless owned by a real estate investment trust, a corporation, or an LLC in which one member is a corporation.
o Duplexes, if the owner lives in one of the units and the beginning of the rental tenancy.
o Property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. o Affordable housing restricted by deed or regulatory agreement. o Specified dormitories.

If Council is interested in exempting additional property types, such as four-unit apartment buildings, Council should provide direction to staff. Additional legal research might be required to ensure that the exemption is defensible.

Additionally, under Costa-Hawkins and the Tenant Protection Act, new housing that received a certificate of occupancy after February 1, 1995, would be exempt from the City’s rent regulations. New housing that received a certificate of occupancy within the last 15 years is covered by the Tenant Protection Act (this applies on a rolling basis - i.e.. a unit that received a certificate of occupancy on January 1, 2006, is not covered as of January, 1 2020, but is covered on and after January 1, 2021).

At the May 8 meeting, there seemed to be consensus to exempt Accessory Dwelling Units (ADUs).
• A rent stabilization program fee shall be paid annually by landlords to fund the rent stabilization program. The ordinance allows this fee to be established by resolution and will require that landlords register their units with the City. A resolution will be brought to the Council if the ordinance moves forward.

In addition, staff has not yet prepared recitals for the ordinance. Staff will craft recitals based on the reasons the Council has stated that it is considering this ordinance. If the Council has any specific points it wants made in the recitals, it should give that direction to staff.

Eviction Protections
Eviction protections are generally viewed as a necessary complement to rent stabilization because they mitigate the incentive to evict for the purpose of increasing a unit’s rent to market rate. The Tenant Protection Act of 2019 codified certain eviction protections as state law. Under the Act, there are two categories of “just cause” for eviction, “At Fault” causes and “No Fault” causes. Generally, a tenant is “at fault” when they violate the terms of the lease or prevailing law (which is often cited in the lease). A “no fault” eviction takes place when a tenant is evicted for allowable reasons that are beyond the control of the tenant.

Under the Act, the following are the enumerated “at fault” reasons why a tenant may be evicted:
• Non-payment of rent;
• Breach of a material term of the rental agreement that has not been corrected after written notice under CC §1161(3) (the new law requires the landlord to serve an additional 3-day notice to quit after the cure period is passed);
• Maintaining or committing a nuisance as described in CC §1161(4); San Anselmo Item #: 3.4- Attachment 3 San Anselmo Item #: 3.4- Attachment 3 393
• Maintaining or committing waste as described in CC §1161(4); • Termination of the rental agreement without renewal (i.e. the tenant refuses to sign a written extension or renewal after written request or demand from the owner); • Criminal activity by the tenant;
• Unapproved subtenant;
• The tenant has refused to give the landlord access to the unit as permitted by law; • Illegal use of the unit;
• Failure to vacate after termination of employment or agency as described in CC §1161(1); and • Failure to deliver possession after the tenant provides written notice of intent to vacate or makes a written offer of surrender that is accepted by the landlord.

The Act lists four “no fault” reasons that a tenant can be evicted. • The owner, spouse, domestic partner, children, grandchildren, parents or grandparents intends to occupy the unit. For new or renewed leases entered into on or after July 1, 2020, the tenant must agree to this in writing;
• Withdrawal of the unit from the rental market;
• Compliance with a government or court order or local ordinance that necessitates vacating the premises; and
• Demolition or substantial remodel of the unit.

The Act provides for relocation assistance— equal to one month of rent either paid directly to the tenant or waived by the landlord—in the event of a no fault eviction.

The Act’s eviction protections are distinct from rent regulation in that they apply broadly to most forms of rental housing.

The Council can opt to codify the Tenant Protection Act as local law or it can use the Act as a basis for local regulation with additional provisions added. Should the Council wish to modify the provisions of the Act, staff requires direction on the following concepts: relocation assistance, time off market and right of return, and the definition of a substantial repair. Additionally, the Council should have a discussion about whether the eviction protections should apply to all rental units or whether there should be exceptions.

Relocation Assistance
Most eviction protection ordinances stipulate that relocation assistance should be paid when a tenant is subject to a no fault eviction that is anticipated to be permanent. State law says relocation assistance shall be an amount equal to one month of rent. Some local ordinances specify a dollar amount (Berkeley and Santa Monica both start at $15,000, with various provisions driving the figure upward), while others state the greater of a dollar amount or certain number of month’s rent (Concord and Oxnard use the greater of $5,000 or two-months rent).

Some, but not all local ordinances, also address temporary relocation (such as when a unit needs repairs that require the tenant to move out for a specified period). In such circumstances, some cities require full payment of all “reasonable” expenses incurred by the tenant. Other ordinances provide details about the amount per diem for certain expenses. Typically, if the tenant opts for a landlord to pay temporary relocation costs, the tenant must continue to pay rent. Some ordinances offer the tenant the option to stop paying rent during the temporary relocation period in lieu of receiving assistance. • Does the Council want to require relocation assistance for permanent no fault evictions in excess of one month of rent?
If so, staff recommends the approach of $5,000 or two-months rent, whichever is greater. This approach offers ease of understanding and ability to regulate.

San Anselmo Item #: 3.4- Attachment 3 San Anselmo Item #: 3.4- Attachment 3 394
• Does the Council want to require relocation assistance for temporary evictions – evictions where the tenant will be returning to the unit after repairs are made? If so, staff recommends a provision that a tenant shall not be required to pay rent during the period of temporary relocation.

At the May 8 meeting, the Council appeared to want to establish relocation assistance at either 3 months or 4 months of rent, with some minimum amount also specified.

Time Off the Market and Right of Return
Some local ordinances state that if a tenant is subjected to a no fault eviction, the underlying circumstance that justified that eviction must remain in place for a certain amount of time. For example, if a tenant is evicted so that a relative of a landlord can occupy the unit, that relative must occupy the unit for specified amount of time before the unit can be made available for rent at market rate. The length of this time period varies, with some ordinances requiring 12 months to pass and others requiring as many as 36 or 60 months. If a landlord wants to rent the unit before this time period ends, the ordinance states whether a financial penalty must be paid to the previously evicted tenant. Alternatively, or in addition to a penalty, some ordinances provide a right of return for the evicted tenant. A right of return means that because the specified time period did not toll, the tenant may return to the unit at the rental rate that was in place at the time of eviction.
• Does the Council want to require that a unit that has been vacated through a no fault eviction remain off the market for a specified period.

If so, staff recommends a period of one year.
• If the landlord wants to rent the unit before the specified period ends, does the Council want to require the landlord to pay a penalty to the evicted tenant? Staff believes the right of return would be a sufficient provision. • If the landlord wants to rent the unit before the specified time period ends, does the Council want the evicted tenant to have the right of return at the rental rate that was in place at the time of eviction?
If the Council opts for a time period for the unit to be off the market, staff recommends that the evicted tenant have the right to return at the previously paid rental rate should the landlord wish to rent the apartment before the specified period has ended.

At the May 8 meeting, there appeared to be consensus for establishing a right of return, but Council did not find agreement on a time period.

Definition of a Substantial Remodel
Most local ordinances attempt to define a substantial remodel. Staff recommends that the definition include that the work requires a permit, requires the tenant to vacate, and will take more than 30 days.

STAFF RECOMMENDATION
Conduct a public hearing and provide direction to staff.

To help the Council advance its discussions, staff has attached a sample of rent stabilization and eviction protection ordinances adopted by other cities. The Council may wish to discuss the elements of these examples in the context of potential Larkspur ordinances. The ordinances by Oxnard align closely to the Tenant Protection Act and appear to be an effort to use the parameters of state law to craft a local ordinance. The ordinance from Bell Gardens (rent stabilization and eviction protections are combined in one ordinance) was referenced at the May 8 hearing. It contains one of the lowest caps in the state, but San Anselmo Item #: 3.4- Attachment 3 San Anselmo Item #: 3.4- Attachment 3 395
also offers a provision for landlords with below-market rents to “catch-up.” The ordinances from Fairfax are based on a “model ordinance” that the Council received from the Democratic Socialists of America and the Skylark tenants Association.

Respectfully submitted,
Dan Schwarz, City Manager
Attachments

1. Draft rent stabilization ordinance with some provisions unspecified (revised to delete incorrect references to mobile homes in the May 8, 2023, version)

2. Sample Ordinances from Oxnard, Fairfax, and Bell Gardens San Anselmo Item #: 3.4- Attachment 3
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CITY OF LARKSPUR

ORDINANCE XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LARKSPUR AMENDING THE LARKSPUR MUNICIPAL CODE TO ADD CHAPTER XX.XX

AND ESTABLISHING RENT STABILIZATION REGULATIONS INCLUDING

PROHIBITING RESIDENTIAL REAL PROPERTY RENTAL RATE INCREASES THAT EXCEED XXX PERCENT (X%) ANNUALLY
________________________________________________________________ [RECITALS TO BE ADDED TO SUPPORT LEGAL BASIS FOR ADOPTING RENT STABILIZATION REGULATIONS]

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LARKSPUR DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Recitals. The above Recitals are true and correct and are incorporated herein by reference.

Section 2. Amendment of Larkspur Municipal Code to Add Chapter XX. The Larkspur Municipal Code is hereby amended by adding a new Chapter XX, which shall read as follows:

XX.XX.010 Title.

This ordinance shall be known as the Larkspur Rent Stabilization Ordinance.

XX.XX.020 Purpose and Intent.

A. It is the purpose and intent of this chapter to adopt a rent stabilization ordinance for the City that ensures affordable rental rates for tenants while still allowing for landlords to realize a fair state of return as defined herein.

B. The City Council finds that the prohibitions herein are necessary for the preservation and protection of the public health, safety and/or welfare. These prohibitions are within the authority conferred upon the City Council by state law and are an exercise of its police powers to enact and enforce regulations for the public health, safety and/or welfare.

XX.XX.030 Definitions.
“Fair return petition” shall mean a petition made by an owner of residential real property for a rent increase in excess of that provided in section XX.XX.040 in order to obtain a fair and reasonable return on their property.
“Reasonable rate of return” shall have the meaning assigned the term by California and Federal courts in precedential published opinions regarding rent stabilization ordinances for residential tenancies. Generally, within the context of a rent stabilization ordinance the term refers to a rate of just and reasonable return on an owner’s property that is high enough to encourage and reward efficient management, discourage the flight of capital, maintain San Anselmo Item #: 3.4- Attachment 3
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adequate services, and enable operators to maintain and support an owner’s credit status, but not so high as to defeat the purpose of curtailing excessive rents and rental increases. “Rent” shall mean all periodic payments and all nonmonetary consideration, including, but not limited to, the fair market value of goods and services rendered to or for the benefit of the owner under an agreement concerning the use or occupancy of residential real property, including, but not limited to, all payment and consideration demanded or paid for parking, pets, furniture and subletting.

XX.XX.040 Prohibited Increases.

Increases in rent on residential real property in the City in excess of X%, and more than one rent increase in any 12 month period, are prohibited, unless approved pursuant to a fair return petition pursuant to this Chapter or expressly exempt under the Costa Hawkins Rental Housing Act codified in Cal. Civil Code, Section 1954.50 et seq.

XX.XX.050 Reasonable Rate of Return.

The adjustment of residential real property rent of up to X% is found and determined to provide a just and reasonable return on an owner’s property. Notwithstanding the foregoing, however, any owner of residential real property who contends that the limit on rental increases set forth in section XX.XX.040 above will prevent the owner from receiving a fair and reasonable return on their property may petition for relief from the cap set forth in section XX.XX.040 pursuant to the procedures set forth in section XX.XX.060 below.

XX.XX.060 Fair Return Petition for Rent Increase.

A. An owner of residential property may petition for a rent increase in excess of that provided in section XX.XX.040 in order to obtain a fair and reasonable return on their property. Such a fair return petition shall be on an application form prescribed by the City Manager and shall be decided by the City Manager, or their designee. The owner shall provide a copy of any fair return petition submitted to the City to the applicable tenant(s), and provide the City with proof of completing such service to the applicable tenant(s). The owner shall be responsible for accurately translating the fair return petition into the primary language(s) spoken by the applicable tenant(s). The tenant(s) will then have 30 days from the date of receiving the fair return petition to reply or provide additional materials to the City in response to the fair return petition. The owner shall bear the burden of establishing that a rate increase in excess of that provided in section XX.XX.040 is necessary to provide the owner with a fair and reasonable return on their property, including by providing an independent financial report and verified financial data demonstrating that without such an increase the owner will not realize a fair and reasonable return on their property.

B. The owner shall be responsible for all costs associated with the City’s review of the fair return petition. Upon receipt of a fair return petition, the City Manager shall determine the anticipated costs of review and whether the employment of expert(s) will be necessary or appropriate for a proper analysis of the owner’s request. If the City Manager so determines, the City Manager shall also determine the anticipated costs of employing such expert(s). The resulting figure shall be communicated to the owner, and the fair return shall not be further processed until the owner has paid to the City the estimated cost of the complete analysis. The City shall provide owner with an invoice of all costs incurred after the review of the fair return petition. Any unused portion of this advance payment for San Anselmo Item #: 3.4- Attachment 3
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analysis shall be refunded to the owner. If additional funds are required, payment of such funds shall be required before owner receives the determination on the fair return petition from the City.

C. The factors the City Manager may consider in deciding a fair return petition may include, but not be limited to:
(1) Changes in the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-Hayward, CA Area published by the Bureau of Labor Statistics. (2) The length of time since the last determination by the City Manager on a rent increase application, or the last rent increase if no previous rent increase application has been made.
(3) The completion of any capital improvements or rehabilitation work related to the spaces specified in the fair return petition, and the cost thereof, including materials, labor, construction interest, permit fees, and other items the City Manager deems appropriate.
(4) Changes in property taxes or other taxes related to the subject residential real property or land on which the home is located.
(5) Changes in the rent paid by the owner for the lease of the residential real property or land on which the home is located.
(6) Changes in the utility charges for the subject residential property paid by the owner, and the extent, if any, of reimbursement from the tenants. (7) Changes in reasonable operating and maintenance expenses. (8) The need for repairs caused by circumstances other than ordinary wear and tear.
(9) The amount and quality of services provided by the owner to the affected tenant(s).

D. A fair return petition shall be decided by the City Manager within 60 calendar days of the date that the application has been deemed complete, including proof of service of the fair return petition on the applicable tenant(s). The decision shall be emailed and sent by mail, with proof of mailing to the subject property owner, the owner’s designated representative(s) for the fair return petition, the applicable tenant(s), and the designated representative of the tenant(s), if any. The decision shall be translated into the primary language(s) spoken by the applicable tenant(s).

E. In the event that an affected tenant is dissatisfied with the approval or partial approval of a fair return petition, an affected tenant may invoke a mandatory mediation requirement , as set forth below. An approved or partially approved rent increase shall not become effective until after the period to invoke mandatory mediation passed or, if mandatory mediation has been invoked, after the mandatory mediation process has been completed. Such mediation is not binding, and either tenant or owner may challenge the San Anselmo Item #: 3.4- Attachment 3
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City Manager’s decision on the fair return petition in the event that the parties do not reach an agreement as a result of the mediation.

F. [MANDATORY MEDIATION PROCESS TO BE ADDED IF COUNCIL DIRECTS—

COULD BE INVOKED BY TENANT ONLY IF FAIR RETURN PETITION APPROVED OR PARTIALLY APPROVED]
G. The regulations governing appeal, review and rehearing of decisions set forth in Municipal Code Chapter 2.50 shall not be applicable to the City Manager’s decision on a fair return petition. Any applicable statute of limitation to challenge the City Manager’s decision on a fair return petition shall be tolled during any mandatory mediation process under this Chapter.

XX.XX.070 Exemptions.

A. Pursuant to the Costa-Hawkins Rental Housing Act, the provisions of this chapter regulating the amount of rent that a residential real property owner may charge shall not apply to the following: any residential real property that has a certificate of occupancy issued after February 1, 1995 (Cal. Civil Code, Section 1954.52(a)(1)), and any other provisions of the Costa-Hawkins Rental Housing Act addressing exemptions, as applicable.

B. Pursuant to the Tenant Protection Act of 2019, Cal. Civil Code, Section 1947.12(d), the provisions of this chapter regulating the amount of rent that a residential real property owner may charge shall not apply to the following:
(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low or moderate income, as define in Cal. Health and Safety Code, Section 50093 or comparable federal statutes. (2) Dormitories owner and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
(3) Residential real property that is alienable, separate from the title to any other dwelling unit, provided that both of the following apply:
(a) The owner is not any of the following:

1. A real estate investment trust, as defined in section 856 of the Internal Revenue Code.

2. A corporation.

3. A limited liability company in which at least one member is a corporation.
(b) At the time the tenancy is created:

1. The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:

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“This property is not subject to the rent limits imposed by Larkspur Municipal Code Chapter XX.XX, and the owner is not any of the following: (1) a real estate investment trust, as defined by section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

2. For a tenancy existing before the effective date of this chapter, the notice required under subsection (1) above may, but is not required to, be provided in the rental agreement.

3. For a tenancy commenced or renewed on or after the effective date of this chapter, the notice required under subsection (1) above must be provided in the rental agreement.

(4) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit.

C. The provisions of this chapter regulating the amount of rent that a residential real property owner may charge shall not apply to the following:
(1) Rent charged for tenancy in a mobilehome or recreational vehicle or for occupancy of a space in a mobilehome or recreational vehicle park. (2) 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 less than 30 days, and other transient occupancies as defined in Cal. Civil Code, Section 1940(b). (3) A unit in an institutional facility, including a hospital, medical care facility, residential care facility, asylum, group home for seniors or the disabled; a rental unit in a transitional housing program that assists homeless persons as defined in Cal. Civil Code, Section 1954.12; a convent or monastery owner and operated by a religious organization; and a fraternity or sorority house affiliated with a college or university. (4) A unit that the owner or the owner’s immediate family occupied as their principal place of residence at the beginning of the tenancy so long as the owner or the owner’s immediate family continues in occupancy.

XX.XX.080 Rent Increase Ineffective.

No rent increase shall be effective if the owner:

A. Fails to substantially comply with all provisions of this chapter, including but not limited to the failure to provide notices as required; or
B. Fails to maintain the residential real property in compliance with Cal. Civil Code, Sections 1941.1 et seq. and Cal. Health and Safety Code, Sections 17920.3 and 17920.10; or
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C. Fails to make repairs ordered by the city or court of competent jurisdiction.

XX.XX.090 Notice Requirements.

A. An owner of any residential real property subject to this chapter shall, on or before the date of commencement of a tenancy, give the tenant a written notice in a form prescribed by the city which must include the following information:
(1) The existence and scope of this Chapter 20 of the City Code; and (2) The tenant’s right to respond to any fair return petition filed with the city by the owner pursuant to section XX.XX.060.

B. As part of any notice to increase rent, an owner must include:
(1) Notice of the existence of this Chapter 20 of the City Code; and (2) The tenant’s right to respond to any fair return petition filed with the city by the owner and right to invoke mandatory mediation of an approved or partially approved fair return petition pursuant to section XX.XX.060.
(3) No rent increase shall take effect until the requirements of this chapter have been met.
(C) When the owner and tenant have entered into a written lease, the owner must give notices to the tenant in the language used in the lease. When the owner and tenant have not entered into a written lease, the owner must give notices to the tenant in the language that the owner and tenant used to negotiate the terms of the tenancy.

XX.XX.100 Violations.

A. It shall be unlawful and a public nuisance for any person to violate or fail to comply with any provision of this chapter. The City may enforce and seek compliance with the provisions of this chapter using the criminal, civil, and administrative remedies set forth in Chapter 9.24 of this Code in addition to any other legal remedy available to the City. Any violation of any provision of this chapter may be subject to the criminal, civil, and administrative penalties set forth in Chapter 9.24 of this Code.

B. Any owner who intentionally demands, accepts or retains any payment in violation of the provisions of this chapter shall be liable in a civil action to the tenant from whom such payment is demanded, accepted or retained for damages in the sum of three times the amount by which the payment demanded, accepted or retained exceeds the maximum amount which could be lawfully demanded, accepted or retained together with reasonable attorneys’ fees and costs as determined by the court.

XX.XX.110 Fees Established.

Owners subject to this chapter shall pay a rent stabilization program fee annually as established by City Council resolution. The rent stabilization program fee is to fund the City’s cost to implement and enforce the provisions of this Chapter.

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Section 3. Compliance with the California Environmental Quality Act. The approval of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The rent stabilization regulations imposed by the adoption of this Ordinance are to prohibit increases in excess of a certain amount of rent on an annual basis; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the regulations are not a project within the meaning of CEQA because it creates a regulatory mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required.

Section 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

Section 5. Effective Date and Publication. This Ordinance shall become effective thirty (30) days after it is adopted.

IT IS HEREBY CERTIFIED that the foregoing ordinance was duly introduced at a regular meeting of the Larkspur City Council held on ______, 2023 and thereafter passed and adopted by the Larkspur City Council, subject to voter approval, on ________, 2023 by the following vote, to wit:

AYES: COUNCILMEMBER:

NOES: COUNCILMEMBER:

ABSENT: COUNCILMEMBER:

ABSTAIN: COUNCILMEMBER
__________________________
Mayor

ATTEST:
__________________________
City Clerk
5346206.3
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ORDINANCE NO. 3013

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF OXNARD ADDING ARTICLE II TO CHAPTER 27 OF

THE OXNARD CITY CODE ESTABLISHING RENT

STABILIZATION REGULATIONS INCLUDING

PROHIBITING RESIDENTIAL REAL PROPERTY RENTAL
RATE INCREASES THAT EXCEED FOUR PERCENT (4%)

ANNUALLY

THE CITY COUNCIL OF THE CITY OF OXNARD DOES ORDAIN AS
FOLLOWS:

Section 1. The City Council of Oxnard hereby finds, determines and declares as follows:

A. At the City Council meetings on October 19, 2021, February 9, 2022, and April 13, 2022, the City Council discussed the City of Oxnard's ("Oxnard" or "City") ability to address rent increases on residential real property.

B. 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.

C. The average household in the City has a median annual income of $72,843, which is below the State median income ($80,440) and the Ventura County median income ($92,236). The median income in the City is also substantially lower than some of its neighboring cities, such as Thousand Oaks ($109,378).

The City's housing stock consists of 51,460 units-27,631 of which are owneroccupied and 23,829 of which are renter-occupied.

D. The U.S. Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who classifies as impoverished.

According to the Census Bureau, in 2019, the City had a poverty rate of 13.8%-- a number that is higher than the national average of 12.3%.

E. Between 1996 and 2016, median home sales prices in the Southern California Association of Governments ("SCAG") region increased 206% from $180,870 to $552,994. During that same period the median income decreased by $3,616 (when adjusted to 2016 dollars). In Oxnard, the median home price increased by

40.2% between 2013-2019 ($323,700 to $453,900). However, during that same period, the median family income in Oxnard grew at a disproportionate rate of 19% ($60,784 to $72,843).

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F. The increase in the cost of housing within the City can be attributed to new developments in the past 20 years, such as new communities like Seabridge, RiverPark and Victoria Estates where a three bedroom home ranges from $700,000 to $2,000,000. The two-bedroom average rent in the City has increased by 18% over the past three years from $1,823 to $2,155, which indicates that households with the median income of $72,843 cannot afford or would struggle to afford the average rent. A household with a median income of $72,843 living in a two bedroom unit costing $1,823 per month, would need to spend 30% of their income on housing.

G. In the City, approximately 6,839 renter-occupied households had more than one occupant per room, which meets California's definition for overcrowding. Further, approximately 2,500 renter-occupied households had more than 1.5 occupants per room, which meets California's definition of severe overcrowding.

H. The housing rent burden and poverty faced by many residents in Oxnard threatens the health, safety, and welfare of its residents, particularly when resulting in eviction and displacement. Studies have shown that 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.

I. Moreover, an eviction can remain on a renter's credit history for at least seven years, impacting one's ability to rent and find employment opportunities.

J. The Costa-Hawkins Rental Housing Act, California Civil Code section 1954.50, et seq., limits the applicability of local rent stabilization policies, including prohibiting local jurisdictions from applying rent stabilization to certain residential rental properties. This Ordinance intends to comply with the Costa-Hawkins Rental Housing Act, and all other applicable state and federal laws.

K. Increasing the number of homeless residents in Oxnard, particularly elderly residents who may be in need of medical or other care, could create a public health and safety risk.

L. The economic conditions and recognized housing shortage in Southern California have the potential to detrimentally impact a substantial number of residents in Oxnard, and impose a particular hardship on senior citizens, persons living on fixed incomes, and other vulnerable persons living in Oxnard.

M. The Mobilehome Residency Law ("MRL"), California Civil Code sections 798, et seq., expressly authorizes cities to regulate the setting and/or increasing of rents for the use and occupancy of a mobile home space, subject to certain exceptions.

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N. Through City Code Chapter 24, Article I, the City previously established a rent stabilization system for mobile home parks, and the City Council desires to leave that system intact.

0. With the exception of City Code Chapter 24, Article I, the City has not previously regulated the setting and increasing of rents for residential real property. Given the concerns discussed herein, the City Council desires to evaluate rent stabilization policies protecting residents outside of mobile home parks from unreasonable rent increases, while ensuring that the owners of residential real property may earn a fair and reasonable return on their property.

P. 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 peace, health, and welfare of the City and its residents.

Q. Based on the foregoing facts, and the facts presented to the City Council at the meetings at which this ordinance was introduced and adopted, the City Council finds that allowing owners of residential real property to have unfettered discretion to increase rents would pose a threat to the public health, safety, and welfare, and that a prohibition of rent increases, except as allowed herein, is therefore necessary.

R. The City Council hereby adopts these regulations in order to address the threats set forth below.

1. Absent the adoption of this ordinance, as a result of the economic conditions and recognized housing shortage in Southern California, significant rent increases will impact a substantial number of residents in Oxnard and constitute a threat to public health, safety, and welfare, and a particular hardship for senior citizens, persons living on fixed incomes, and other vulnerable persons living in the City;

2. For the preservation of the public peace, health, and safety, the City Council finds that it is necessary to adopt an ordinance stabilizing rents for all of the reasons set forth in the recitals above, which are hereby incorporated by reference; and

3. Certain aspects of public health, safety, and welfare are not adequately protected by the City's existing mobile home park rent stabilization system both because of that system's limited scope and due to the City's lack of rent stabilization mechanics or controls on residential real property generally, and it is in the interest of the City, owners, residents, and the community as a whole that the City adopt regulations to protect affordable housing within the City, including, but not limited to, rent stabilization regulations applicable to residential real property generally.

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S. The direction for this ordinance dated October 19, 2021, February 9, 2022, and April 13, 2022, shall be incorporated herein by this reference, and together with this ordinance, any amendments or supplements, and oral testimony, shall constitute the necessary findings for this ordinance.

T. The City Council finds, determines and declares that the threat to the public health, safety, and welfare of the City and its residents necessitates the enactment of the ordinance.

Section 2. The recitals and statements of fact set forth in the preamble to this ordinance are true and correct, constitute a substantive part of this ordinance, and are incorporated herein by this reference.

Section 3. Chapter 27, Article II, is hereby added to the City Code to read as follows:
"Article II: RENT STABILIZATION
SEC. 27-20. CITATION.

This Article shall be known as the "Rent Stabilization Ordinance." SEC. 27-21. PROHIBITED INCREASES.

Increases in rent on residential real property in the city of Oxnard in excess of four percent (4%), and more than one rent increase in any twelve (12) month period, are prohibited, unless expressly exempt under the Costa-Hawkins Rental Housing Act codified in California Civil Code section 1954.50, et seq.

SEC. 27-22. REASONABLE RATE OF RETURN.

This ordinance allows for an annual adjustment of residential real property rent of up to four percent (4%). Such an increase is found and determined to provide a just and reasonable return on an owner's property, and has been adopted to encourage good management, reward efficiency, and discourage the flight of capital, as well as to be commensurate with returns on comparable investments, but not so high as to defeat the purpose of curtailing excessive rents and rental increases. Notwithstanding the foregoing, however, any owner of residential real property who contends that the limit on rental increases set forth in Section 27-21 above will prevent the owner from receiving a fair and reasonable return on their property may petition for relief from the cap set forth in section 27-21 pursuant to the procedures set forth in section 27-23.

SEC. 27-23. FAIR RETURN PETITION FOR RENT INCREASE.

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(A) An owner of residential real property may petition for a rent increase in excess of that provided in section 27-21 in order to obtain a fair and reasonable return on their property ("Fair Return Petition"). Such Fair Return Petition shall be on an application form prescribed by the City Manager and shall be decided by the City Manager, or their designee ("City Manager''). Owner shall provide a copy of any Fair Return Petition submitted to the city to the applicable tenant(s), and provide City with proof of completing such service to the applicable tenant(s). The tenant(s) will then have thirty (30) days from the dale of receiving the Fair Return Petition to reply or provide additional materials to the City in response to the Fair Return Petition. The owner shall bear the burden of establishing that a rate increase in excess of that provided in section 27-21 is necessary to provide the owner with a fair and reasonable return on their property, including by providing an independent financial report and verified financial data demonstrating that without such an increase, they will not realize a fair and reasonable return on their property.
(B) Owner shall be responsible for all costs associated with the City's review of the Fair Return Petition. Upon receipt of a Fair Return Petition, the City Manager 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 owner's request. If the City Manager so determines, the City Manager shall also determine the anticipated costs of employing such expert(s). The resulting figure shall be communicated to the Owner, and the Fair Return Petition shall not be processed until the owner has paid to the city the estimated cost of the complete analysis. City will provide owner with an invoice of all costs incurred after the review of the Fair Return Petition. Any unused portion of the advance payment for analysis shall be refunded to the owner. If additional funds are required, payment will be required before Owner receives the determination on the Fair Return Petition from the city.
(C) The factors the City Manager may consider in deciding a Fair Return Petition may include, but not be limited to:
(1) Changes in the Consumer Price Index for All Urban Consumers in the Oxnard-Thousand Oaks-Ventura Metropolitan Area published by the Bureau of Labor Statistics.
(2) The length of time since the last determination by the City Manager on a rent increase application, or the last rent increase if no previous rent increase application has been made.
(3) The completion of any capital improvements or rehabilitation work related to the residential real property or mobile home space or spaces specified in the Fair Return Petition, and the cost thereof, including materials, labor, construction interest, permit fees, and other items the City Manager deems appropriate.

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(4) Changes in property taxes or other taxes related to the subject residential real property or mobile home park.
(5) Changes in the rent paid by the owner for the lease of the residential real property or land on which the subject mobile home park is located.
6) Changes in the utility charges for the subject residential real property or mobile home park paid by the owner, and the extent, if any, of reimbursement from the tenants.
(7) Changes in reasonable operating and maintenance expenses. (8) The need for repairs caused by circumstances other than ordinary wear and tear.
(9) The amount and quality of services provided by the owner to the affected tenant(s).
(D) A Fair Return Petition shall be decided by the City Manager within sixty (60) calendar days of the date that the application has been deemed complete, including proof of service of the Fair Return Petition on the applicable tenant(s). The decision shall be emailed and sent by mail, with proof of mailing to the subject property owner, the owner's designated representative(s) for the Fair Return Petition, the applicable tenant(s}, and the designated representative of the tenant(s), if any. The decision of the City Manager shall be final and not appealable.

SEC. 27-24. EXEMPTIONS.
(A) Pursuant to the Costa-Hawkins Rental Housing Act, the provisions of this ordinance regulating the amount of rent that a residential real property owner may charge shall not apply to the following: any residential real property that has a certificate of occupancy issued after February 1, 1995 (California Civil Code section 1954.52(a)(1 )); and, any other provisions of the Costa-Hawkins Rental Housing Act addressing exemptions, as applicable.
(B) Pursuant to the Tenant Protection Act of 2019, California Civil Code section 1947.12(d}, the provisions of this ordinance regulating the amount of rent that a residential real property owner may charge shall not apply to the following:

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(1) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the California Health and Safety Code, or subject to an agreement that provides San Anselmo Item #: 3.4- Attachment 3
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housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the California Health and Safety Code or comparable federal statutes.
(2) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. (3) Residential real property that is alienable separate from the title to any other dwelling unit, provided that both of the following apply:
(a) The owner is not any of the following:
i. A real estate investment trust, as defined in section 856 of the Internal Revenue Code.
ii. A corporation.
iii. A limited liability company in which at least one member is a corporation.
(b) At the time the tenancy is created:
i. The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:
"This property is not subject to the rent limits imposed by Oxnard City Code Chapter 27, Article II and the
owner is not any of the following: (1) a real estate
investment trust, as defined by section 856 of the
Internal Revenue Code; (2) a corporation; or (3) a
limited liability company in which at least one member
is a corporation."
ii. For a tenancy existing before the effective date of this ordinance, the notice required under clause (i) may, but is not required to, be provided in the rental agreement. iii. For a tenancy commenced or renewed on or after the effective date of this ordinance, the notice required under clause (i) must be provided in the rental agreement.
(4) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner's principal place of residence at the beginning of the tenancy

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so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. (C) The provisions of this ordinance regulating the amount of rent that a residential real property owner may charge shall not apply to the following:
(1) A unit subject to City Code Chapter 24, Article I, the City's Mobile Home Park Rent Stabilization System.
(2) 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 less than 30 days; and other transient occupancies as defined in California Civil Code section 1940, subdivision (b}.
(3) A unit in an institutional facility, including a hospital, medical care facility, residential care facility, asylum, group home for seniors or the disabled; a rental unit in a transitional housing program that assists homeless persons as defined in California Civil Code section 1954.12; a convent or monastery owned and operated by a religious organization; and a fraternity or sorority house affiliated with a college or university.
(4) A unit that the owner or the owner's immediate family occupied as their principal place of residence at the beginning of the tenancy so long as the owner or the owner's immediate family continues in occupancy.

SEC. 27-25. RENT INCREASE INEFFECTIVE.

No rent increase shall be effective if the owner:
(A) Fails to substantially comply with all provisions of this article, including but not limited to the failure to provide notices as required; or (B) Fails to maintain the residential real property in compliance with California Civil Code Sections 1941.1 et seq. and California Health and Safety Code sections 17920.3 and 17920.1 0; or
(C) Fails to make repairs ordered by the city or court of competent jurisdiction.

SEC. 27-26. NOTICE REQUIREMENTS.
(A) An owner of any residential real property subject to this article shall, on or before the date of commencement of a tenancy, give the tenant a written notice in a form prescribed by the City which must include the following information:

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(1) The existence and scope of this Chapter 27, Article II of the City Code;and
(2) The tenant's right to respond to any Fair Return Petition filed with the City by the owner pursuant to section 27-23.
(B) As part of any notice to increase rent, an owner must include:
(1) Notice of the existence of this Chapter 27, Article II of the City Code;and
(2) The tenant's right to respond to any Fair Return Petition filed with the City by the owner pursuant to section 27-23, unless such rent increase is pursuant to an approved Fair Return Petition. (3) No rent increase shall take effect until the requirements of this article have been met.
(C) When the owner and tenant have entered into a written lease, the owner must give notices to the tenant in the language used in the lease. When the owner and tenant have not entered into a written lease, the owner must give notices to the tenant in the language that the owner and tenant used to negotiate the terms of the tenancy.

SEC. 27-27. DEFINITION OF RENT.

For the purposes of this article, "Rent" means all periodic payments and all nonmonetary consideration, including, but not limited to, the fair market value of goods or services rendered to or for the benefit of the owner under an agreement concerning the use or occupancy of residential real property, including, but not limited to, all payment and consideration demanded or paid for parking, pets, furniture, and subletting.

SEC. 27-28. VIOLATIONS.
(a) It shall be unlawful for any person to violate or fail to comply with any provision of this article. The violation of any provision of this article shall first be punished through the use of a civil citation, prior to prosecution as a misdemeanor, infraction, or civil injunction as provided in City Code section 1-10. (b) Any owner who intentionally demands, accepts or retains any payment in violation of the provisions of this article shall be liable in a civil action to the tenant from whom such payment is demanded, accepted, or retained for damages in the sum of three limes the amount by which the payment demanded, accepted, or retained exceeds the maximum amount which could be lawfully demanded, accepted, or retained together with reasonable attorneys' fees and costs as determined by the court.

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SEC. 27-29. FEE ESTABLISHED.

Owners subject to this Ordinance shall pay the rent stabilization fee as established by city council resolution. The rent stabilization program fee is to fund the city's cost to implement and enforce the provisions of this Ordinance.

SEC. 27-30. SUNSET.

This Article shall automatically sunset on December 31, 2030." Section 4. The City Council finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility it will have a significant effect on the environment, and it is not a "project", as defined in section 15378 of the State CEQA Guidelines.

Section 5. If any section, subsection, phrase, or clause of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, phrase or clause thereof irrespective of the fact that any one or more sections, subsections, phrases, or clauses be declared invalid or unconstitutional.

Section 6. Within 15 days after passage, the City Clerk shall cause a summary of this ordinance to be published one lime in a newspaper of general circulation published and circulated in the City. Ordinance No. 3013 was first read on April 13, 2022, and finally adopted on May 3rd , 2022, to become effective thirty (30) days thereafter.

Section 7. This ordinance shall become effective thirty (30) days after it is finally adopted. The foregoing Ordinance was adopted at a regular meeting of the City Council of the City of Oxnard, State of California, held on the 3rd day of Ill
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May 2022 , by the following vote:

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AYES: Counci lmembers Basua, Lopez, Madrigal, Teran and Zaragoza NOES: Councilmember s Ma cDonald and Perella
ABSENT: None.

ABSTAIN: None .

ATTEST:
yf? ~CVMCJ 5 /,3/ddRose Chaparro, ityClerk
APPROVED AS TO FORM:
~ )--====:'> r/2/4;1-~
Stephen M. Fischer, City Attorney ·

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ORDINANCE NO. 3012

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF OXNARD ADDING ARTICLE I TO CHAPTER 27 OF

THE OXNARD CITY CODE ESTABLISHING JUST CAUSE

EVICTIONS AND OTHER TENANT PROTECTIONS

THE CITY COUNCIL OF THE CITY OF OXNARD DOES ORDAIN AS
FOLLOWS:

Section 1. The City Council of Oxnard hereby finds, determines, and declares as follows:

A. At the City Council meetings on October 19, 2021, February 9, 2022, and April 13, 2022, the City Council discussed the City of Oxnard's ("Oxnard" or "City") ability to address just cause evictions and other tenant protections.

B. Housing instability threatens the public peace, health, and safety 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.

C. Eviction creates particular hardships for individuals and households of limited means, given the shortage of affordable housing within Oxnard and the region generally.

D. The California State Legislature adopted the Tenant Protection Act of 2019 ("AB 1482"), codified in part in California Civil Code section 1946.2 ("section 1946.2"), which became effective by its own terms on January 1, 2020, and, with certain exceptions, prohibits an owner of residential property from terminating a tenancy without just cause.

E. Under AB 1482, landlords are required to give tenants a reason for their eviction.

Just causes such as nonpayment of rent, nuisance to other tenants, damage to property, and illegal activity continue to be legal with zero relocation assistance.

However, tenants served "no fault" evictions (owner move-in, substantial remodel, demolishing the rental unit, etc.) receive only one month of relocation assistance from their landlords. Most landlords require first months' rent, last months' rent, security deposit, and application fees upon move-in. Many tenants also pay for temporary storage and other moving costs. These move-in related expenses can easily surpass available savings, without which the tenant may be forced into homelessness or displacement. One month of relocation assistance may not adequately cover these expenses, so relocation assistance must be

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strengthened to reflect the realities of the rental market. A minimum of $5,000 in relocation assistance is the minimum needed to adequately cover most relocation and move-in costs when the relocation is at no-fault of the tenant.

F. The housing rent burden and poverty faced by many residents in Oxnard threatens the health, safety, and welfare of its residents, particularly when resulting in eviction and displacement. Studies have shown that 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.

G. Moreover, an eviction can remain on a renter's credit history for at least seven years, impacting one's ability to rent and find employment opportunities.

H. AB 1482 provides that a local ordinance adopted after September 1, 2019, requiring just cause for termination of a residential tenancy shall supersede California Civil Code section 1946.2 only if the ordinance is "more protective" than section 1946.2.

I. In accordance with California Civil Code section 1946.2(g)(1 )(B), the City Council finds that the provisions of this Ordinance regulating just cause terminations or tenancies are more protective than California Civil Code section 1946.2 for the following reasons:

1. The just cause for termination of a residential tenancy under this Ordinance is consistent with California Civil Code section 1946.2.

2. This Ordinance provides additional tenant protections that are not prohibited by any other provisions of applicable law in that the ordinance triggers tenant protections after 30 days of tenancy, applies to tenants that are not covered by AB 1482, and requires a minimum of $5,000 in relocation assistance.

J. 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, and safety.

K. Pursuant to the City's police power, as granted broadly under Article XI, section 7 of the California Constitution, the Oxnard City Council has the authority to enact and enforce ordinances and regulations for the public peace, health, and welfare of the City and its residents.

L. The City Council hereby adopts these regulations in order to address the threats set forth below.

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1. Housing, particularly affordable housing, is difficult to procure in this region, including in Oxnard. Evictions without just cause destabilize the housing market and can result in the loss of affordable housing;

2. For the preservation of the public peace, health, and safety, the City Council finds that it is necessary to adopt an ordinance regulating just cause evictions, for all of the reasons set forth in the recitals above, which are hereby incorporated by reference;

3. Without the imposition of this Ordinance, evictions without just cause may result in the displacement of residential tenants who would be forced to find new housing in an ever-more expensive housing market, and would significantly increase the risk of residential tenants becoming homeless; and

4. There is a threat to the public peace, health, and safety of the City and its community, thereby necessitating the enactment of this Ordinance in order to ensure that tenants are not turned out of their homes without just cause.

M. The direction for this ordinance dated October 19, 2021, February 9, 2022, and April 13, 2022, shall be incorporated herein by this reference, and together with this ordinance, any amendments or supplements, and oral testimony, shall constitute the necessary findings for this ordinance.

Section 3. A new Chapter 27 "Tenant Protection and Rent Stabilization Ordinance" is added to the City Code.

Section 4. A new Article 1 "Evictions and Tenant Protection" is added to Chapter 27 of the City Code to read as follows:
"Article I - JUST CAUSE EVICTIONS AND TENANT PROTECTION SEC. 27-1. CITATION.

This Article shall be known as the "Just Cause Eviction and Tenant Protection Ordinance."
SEC. 27-2. RESTRICTIONS ON TERMINATION OF TENANCY WITHOUT JUST CAUSE.

Notwithstanding any other law, after a tenant has continuously and lawfully occupied a residential real property for thirty (30) days, the Owner of the residential real property

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shall not terminate the Tenancy without just cause, which shall be stated in the written notice to terminate Tenancy.

For purposes of this Article, "just cause" includes either at-fault just cause or no-fault just cause.

SEC. 27-3. AT-FAULT JUST CAUSE
At-Fault Just Cause includes any of the following:
(A) Default in the payment of rent.
(B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the California Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation.

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A "breach of a material term" shall not include:
(1) The obligation to limit occupancy, provided that the additional occupant who joins the tenant of the residential real property thereby exceeding the limits on occupancy set forth in the lease is dependent under age 18, or a replacement tenant who moved in after an approved tenant vacated the residential real property, so long as the addition does not exceed the Uniform Housing Code.

The Owner shall have the right to approve or deny the
prospective additional or replacement tenant, who is not a minor dependent child, provided that the Owner does not
unreasonably withhold approval. If the Owner fails to respond to the tenant in writing with a description of the reasons for the denial of the request within a reasonable amount of time of receipt of the tenant's written request, the tenant's request shall be deemed approved by the Owner if the lease is for a period of one ( 1) year or less.
(2) A change in the terms of the Tenancy that is not the result of an express written agreement signed by both of the parties. An Owner is not required to obtain a tenant's written consent to a change in the terms of the Tenancy if the change in the terms of the Tenancy is authorized by this section, or if the Owner is required to change the terms of the Tenancy pursuant to federal, State, or local law. Nothing in this subsection shall exempt an Owner from providing legally required notice of a change in the terms of the Tenancy.

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(C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the California Code of Civil Procedure.
(D) Committing waste as described in paragraph (4) of Section 1161 of the California Code of Civil Procedure.
(E) The tenant had a written lease that terminated on or after the effective date of this Ordinance, and after a written request or demand from the Owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law. If the tenant had a written lease that terminated on or after the effective date of this Ordinance, and after a written request or demand from the Owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of non-similar duration and/or with non-similar lease provisions, then the cause for eviction will be NoFault Just Cause under City Code section 27-4 below. (F) Criminal activity by the tenant on the residential real property, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the California Penal Code, on or off the residential real property, that is directed at any Owner or agent of the Owner of the residential real property or members of tenant's household or other tenants of the residential real property. This at-fault, just cause provision shall apply if the Owner has, within a reasonable time, reported the criminal activity to law enforcement. Further, at-fault, just cause eviction of a tenant under this provision shall only apply to that tenant who committed the criminal activity described herein. If a tenant is acquitted or found not guilty of the charges giving rise to eviction, or if charges are not filed against the tenant within the applicable statute of limitations period, the tenant shall be offered the right to restore the Tenancy only if the same residential real property is available.
(G) Assigning or subletting the premises in violation of the tenant's lease, as described in paragraph (4) of Section 1161 of the California Code of Civil Procedure.

Notwithstanding any contrary provision in this section, an Owner shall not take any action to terminate a Tenancy based on a tenant's sublease of the residential real property if all the following requirements are met:
(1) The tenant requests permission from the Owner in writing to sublease the residential real property;

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(2) The tenant continues to reside in the residential real property as their primary residence;
(3) The sublease replaces one or more departed tenants under the lease on a one-for-one basis; and
(4) The Owner fails to respond to the tenant in writing within a reasonable amount of time of the receipt of the tenant's written request. If the Owner fails to respond to the tenant's written request, the request shall be deemed approved by the Owner if the lease is for a period of one (1) year or less. An Owner'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 residential real property exceeds the maximum number of occupants as determined under Section 503(b) of the Uniform Housing Code or successor provision.
(H) The tenant's refusal to allow the Owner to enter the residential real property as authorized by Sections 1101.5 and 1954 of the California Civil Code, and Sections 13113. 7 and 17926.1 of the California Health and Safety Code.
(I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the California Code of Civil Procedure. (J) The employee, agent, or licensee's failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the California Code of Civil Procedure. (K) When the tenant fails to deliver possession of the residential real property after providing the Owner written notice as provided in Section 1946 of the California Civil Code of the tenant's intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the Owner but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the California Code of Civil Procedure.

SEC. 27-4. NO-FAULT JUST CAUSE
No-Fault Just Cause includes any of the following:
(A) Intent to occupy the residential real property by the Owner or their spouse, domestic partner, children, grandchildren, parents, or grandparents.

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For leases entered into on or after the effective date of this Ordinance, this subsection shall apply only if the tenant agrees, in writing, to the San Anselmo Item #: 3.4- Attachment 3
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termination, or if a provision of the lease allows the Owner to terminate the lease if the Owner, or their spouse, domestic partner, children, grandchildren, parents, or grandparents unilaterally decides to occupy the residential real property for a period of at least 24 months, as affirmed by the Owner in a written affidavit submitted to the city. Addition of a provision allowing the Owner to terminate the lease as described in this clause to a new or renewed rental agreement or fixed-term lease constitutes a similar lease provision for the purposes of City Code section 27-3 (E). (B) Withdrawal of the residential real property from the rental market under, and subject to, the provisions of the Ellis Act.
(C) The Owner complying with an order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.
(1) Exception. If it is determined by any government agency or court that the tenant is at fault for the condition or conditions triggering the order or need to vacate, then the tenant shall not be entitled to relocation assistance as outlined in Section 27-6(C).
(D) Intent to demolish or to substantially remodel the residential real 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, that cannot be reasonably accomplished in a safe manner with the tenant in place and that requires the tenant to vacate the residential real property for at least 30 days. 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.
(1) The Owner shall provide 60 days advance written notice to the tenant of the ability to reoccupy the unit upon completion of the repairs, or if requested by the tenant, the right of first refusal to any comparable vacant rental unit which has been offered at comparable rent owned by the Owner; and
(2) In the event the Owner seeks to rent the remodeled unit within six (6) months following the completion of the remodeling work, the evicted tenant shall have the right of first refusal to reoccupy

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and rent the unit, unless the Owner provides a written waiver by the tenant of their right to reoccupy the premises pursuant to this subsection.

SEC. 27-5. JUST CAUSE CURABLE LEASE VIOLATION
Before an Owner of residential real property issues a notice to terminate a Tenancy for just cause that is a curable lease violation, the Owner shall first give notice of the violation to the tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the California Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the Tenancy.

Any written notice to cease or correct must:
(A) Be dated and served upon the tenant, pursuant to at least one of the methods authorized under California Code of Civil Procedure Section 1162, as may be amended;
(B) Inform the tenant that failure to cure may result in the initiation of eviction proceedings;
(C) Inform the tenant of the right to request a reasonable accommodation; (D) Inform the tenant of the contact number for the City; and (E) Include a specific statement of the reasons for the written notice to cease or correct with specific facts to help the tenant determine the date(s), place(s), witness(es), and/or circumstance(s) that support the reason(s) for the eviction.

SEC. 27-6. NO-FAULT JUST CAUSE TENANT RELOCATION ASSISTANCE (A) For a Tenancy for which just cause is required to terminate the Tenancy under this Article, if an Owner of residential real property issues a termination notice based on a no-fault just cause as defined in section 27- 4, the Owner shall, regardless of the tenant's income, provide a direct payment to the tenant as described in paragraph C of this Section. (B) If an Owner issues a notice to terminate a Tenancy for no-fault just cause, the Owner shall notify the tenant of the tenant's right to relocation assistance and all other rights pursuant to this section.

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(C) The amount of relocation assistance shall be equal to (i) two months of the tenant's rent that was in effect when the owner issued the notice to terminate the tenancy, or (ii) $5,000, whichever is greater. Any relocation assistance shall be provided within 15 calendar days of service of the notice.
(1) If a tenant fails to vacate after the expiration of the notice to terminate the Tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this subdivision shall be recoverable as damages in an action to recover possession.
(2) The relocation assistance required by this section shall be credited against any other relocation assistance required by any other law. (D) An Owner's failure to strictly comply with this section shall render the notice of termination void.

SEC. 27-7. EXEMPTIONS
This Article shall not apply to the following types of residential real properties or residential circumstances:
(A) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940 of the California Civil Code, and properties that have obtained a City of Oxnard Short Term Vacation Rental Permit and are operating in compliance with that permit and regularly remitting the required Transit Occupancy Tax demonstrating active use as a vacation rental property.
(B) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the California Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by the State Department of Social Services.
(C) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
(D) Housing accommodations in which the tenant shares a bathroom or kitchen facilities with the Owner who maintains their principal residence at the residential real property.
(E) Single-family Owner-occupied residences, including a residence in which the Owner-occupant rents or leases no more than two bedrooms.

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(F) A duplex in which the Owner occupied one of the units as the Owner's principal place of residence at the beginning of the Tenancy, so long as the Owner continues in occupancy.

SEC. 27-8. DEFINITIONS
For the purposes of this Article, the following definitions shall apply:
(A) "Owner" and "residential real property" have the same meaning as those terms are defined in California Civil Code Section 1946.2. (B) "Tenancy" means the lawful occupation of residential real property, including Accessory Dwelling Units, or mobile home spaces that are not subject to Chapter 24, Mobile Home Parks, of the Oxnard City Code, and includes a lease or sublease, as such may be subject to local ordinance.

SEC. 27-9. NOTICES
(A) Notice of existence of this Chapter

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The Owner shall post a notice providing information about the existence of this Chapter 27 of the City Code, including protections related to immigration or citizenship status of tenant found under California Civil Code section 1940.35 and California Code of Civil Procedure section 1161.4, as may be amended. Notice must be posted in English, Purepecha, Mixteco, Otomi, Tagalog, Zapoteco, Nahuatl, and Spanish in a conspicuous location on the property.

In addition to all other notice requirements specified elsewhere in this Article, the Owner of any residential real property is required to provide written notice to tenants of their rights under this Article as follows:
(1) The notice required by this Article must include the following information:
(a) The existence and scope of this Article of the City Code; and, (b) The right to relocation assistance in limited circumstances pursuant to Section 27-6.
(2) The Owner must provide tenant with the notice upon serving any notice of change in terms of Tenancy.
(3) The Owner must provide the notice on or before the commencement of all Tenancies initiated after the effective date of this Chapter.

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(B) Notice of termination of Tenancy
When terminating a Tenancy either at-fault or no-fault, an Owner must comply with all of the following:
(1) The Owner must serve a written notice in accordance with California Civil Code sections 1946 through 1946.5, to the tenant that states that, in addition to any information required by federal or State law, the Owner will terminate the Tenancy, and that indicates at least one atfault or no-fault just cause reason; and (2) The Owner has not accepted and will not accept rent or any other consideration in return for the continued use of the residential property beyond the term of the terminated Tenancy in compliance with California Civil Code sections 1945 through 1946.5; and (3) The Owner qualifies the termination as at-fault or no-fault just cause; and
(4) The Owner has submitted to the city, within five (5) days after service of the notice of termination on the tenant, a true and accurate copy of the Owner's written notice of termination, and proof of such service, signed by the Owner under penalty of perjury, on the tenant. The Owner shall maintain proof of service to the city as evidence that the Owner has complied with this section.
(5) When the Owner and tenant have entered into a written lease, the Owner must provide the notice in the language used in the lease, in addition to English. When the Owner and tenant have not entered into a written lease, the Owner must provide the notice in the language that the Owner and tenant used to negotiate the terms of the Tenancy, in addition to English.
(C) Notice as addendum to lease or rental agreement
An Owner of residential real property subject to this Section shall provide notice to the tenant as follows:
(1) For any Tenancy commenced or renewed on or after the effective date of this Ordinance, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(2) The Owner must provide the notice in the language that the Owner and tenant used to in the lease, in addition to English.

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(3) For a Tenancy existing prior to the effective date of this Ordinance, by written notice to the tenant no later than thirty (30) days after the effective date of this Ordinance, or as an addendum to the lease or rental agreement.
(4) The notification or lease provision shall be in no less than 12-point type, and shall include the following: "The Oxnard City Code provides that after all of the tenants have continuously and lawfully occupied the property for at least thirty (30) days, an Owner must provide a statement of cause in any notice to terminate a Tenancy. In addition, Oxnard City Code provides tenants evicted for no-fault just cause with the right to relocation payments. See Chapter 27 of the Oxnard City Code for more information."
(5) Owners must provide the notice to tenants in writing if the application and lease are processed in writing, electronically if the application or lease are processed electronically, or both if both methods are utilized.

The provision of the notice shall be subject to California Civil Code Section 1632.

SEC. 27-10. ADDITIONAL TENANT PROTECTIONS
(A) The city manager may adopt administrative procedures and regulations to implement the provisions of this Ordinance.
(B) Once established by the City Council, all owners with rental units shall pay the tenant protection program fee, as established by city council resolution. The tenant protection program fee is to fund the city's cost to implement and enforce the provisions of this Ordinance. (C) It is illegal for an Owner or representative to retaliate against a tenant for lawfully and peaceably exercising their legal rights, including but not limited to, the right to file a complaint with Code Compliance. No owner may take any action increasing any rental amount, reducing any service, causing the tenant to involuntarily quit the premises, or discriminating against the tenant because of the tenant's use of any remedy provided by this Ordinance.
(D) Any provision of a rental housing agreement that purports to waive any provision of this Ordinance is void as against public policy. (E) An owner's failure to comply with any requirement of this Ordinance is an affirmative defense in an unlawful detainer or other action brought by the owner to recover possession of the rental unit.

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SEC. 27-11. VIOLATIONS
(A) It shall be unlawful for any person to violate or fail to comply with any provision of this Article. The violation of any provision of this chapter shall first be punished through the use of a civil citation, prior to prosecution as a misdemeanor, infraction, or civil injunction as provided in Oxnard City Code section 1-10.
(B) Any person whose rights pursuant to this Ordinance have been violated shall have the right to file an action for injunctive relief and damages.

Whoever is found to have violated this Ordinance shall be subject to appropriate injunctive relief and shall be liable for damages, costs, and reasonable attorney fees. Treble damages shall be awarded for willful failure to comply with the Relocation Payment obligations established by this Ordinance. Any action pursuant to this Ordinance shall be a civil matter and adjudicated through civil court.

SEC. 27-12. SUNSET
This Article shall automatically sunset on December 31, 2030." Section 5. The City Council finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2), 15060(c)(3) and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility it will have a significant effect on the environment, and it is not a "project," as defined in section 15378 of the State CEQA Guidelines.

Section 6. The city manager shall, on an annual basis and at any other time that the city manager determines to be appropriate, provide a report that documents the level of landlord compliance with this chapter and other related rental housing matters.

At least 60 days prior to the expiration date of this ordinance, the city manager shall provide a report to city council that addresses the status of the rental housing market, including, but not limited to, the affordability and availability of rental units.

Section 7. If any section, subsection, sentence, clause or phrase of this chapter is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this chapter. The City Council declares that it would have adopted this chapter and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause, or phrase be declared invalid.

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Section 8. Within 15 days after passage, the City Clerk shall cause a summary of this ordinance to be published one time in a newspaper of general circulation published and circulated in the City. Ordinance No. 301 2 was first read on April 13, 2022, and finally adopted on May 3rd , 2022, to become effective thirty (30) days thereafter.

Section 9. This ordinance shall become effective thirty (30) days after it is finally adopted. The foregoing Ordinance was adopted at a regular meeting of the City Council of the City of Oxnard, State of California, held on the 3rd day of May , 2022, by the following vote:

AYES: Counc ilrnembers Basua , Lopez , Madri gal , Perella, Teran and Zaragoza NOES: Council rnernber MacDona l d
ABSENT: None .

ABSTAIN: None .

ATTEST:

W ~ ~ mia Rose Chaparro,Cicierk

APPROVED
~
AS TO FORM:
s-M Ji
Stephen M. Fischer, City Attorney

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ORDINANCE NO. 871

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX AMENDING CHAPTER 5.55 “MANDATORY MEDIATION FOR RENTAL
INCREASES” OF TITLE 5 OF THE FAIRFAX TOWN CODE
WHEREAS, more than 1,200 Fairfax households rent their homes, constituting approximately 37% of total Town households, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and
WHEREAS, approximately 24% of Fairfax rental households are low income, which is defined as earning between 51% and 80% of the county’s area median income, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and WHEREAS, approximately 12% of Fairfax rental households are very low income, which is defined as earning between 30% and 50% of the county’s area median income, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and WHEREAS, approximately 36% of Fairfax rental households are extremely low income, which is defined as earning between 0% and 30% of the county’s area median income, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and WHEREAS, approximately 48% of Fairfax renters were estimated to be rentburdened, which is defined as spending more than 30% of household income on rent, with 28% of renters estimated to be severely rent-burdened, which is defined as spending more than 50% of household income on rent, as identified by the U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates; and
WHEREAS, an estimated 530 renter-occupied lower-income households in Fairfax are spending more than 30% of their annual income on rent, including 335 who are spending more than 50% on rent, as identified in Appendix H-B: Housing Needs Assessment of the Town’s Housing Element Update 2015-2023; and WHEREAS, according to the National Low Income Housing Coalition’s “Out of Reach 2021” study, a renter household would need to earn $55.77 an hour to afford an average one-bedroom apartment or $67.69 an hour to afford an average two-bedroom apartment in Fairfax without being rent-burdened, although the average real wage for Marin renters is just $23.23 an hour; and
WHEREAS, according to the Elder Index developed by the Gerontology Institute at the University of Massachusetts Boston, the average Marin senior renter spends $2,695 per month on housing, constituting between 64-68% of their total monthly expenses; and
WHEREAS, 87% of Fairfax householders under the age of 35 are renters, as identified by the U.S. Census Bureau, 2019: American Community Survey 5-Year Estimates; and
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WHEREAS, 68% of Fairfax householders who identify as Hispanic or Latino are renters, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and WHEREAS, 66% of Fairfax householders who identify their race as something other than white are renters, as identified in the 2021-04-02 Housing Needs Data Report:

Fairfax; and
WHEREAS, the rising costs of rents are forcing people out of their homes and out of our community; and
WHEREAS, seniors on fixed incomes, young people, people of color, immigrants, and working people of all backgrounds increasingly cannot afford to buy a house in Fairfax or elsewhere in Marin and depend on stable rents in order to live here; and WHEREAS, stabilizing rents will protect existing affordable housing stock, enabling local residents to live where they work, thereby shortening commutes, improving traffic and air quality, and lowering local carbon emissions; and WHEREAS, the State Of California’s Tenant Protection Act of 2019 establishes an annual allowable rent increase of 5% plus inflation, far exceeding that of all municipal rent stabilization districts in the Bay Area; and
WHEREAS, the Tenant Protection Act of 2019 depends on renters knowing their rights and pursuing legal remediation when those rights are violated; and WHEREAS, Town staff has identified changes to Chapter 5.55 (Mandatory Mediation for Rental Increases) of the Fairfax Town Code that will streamline and improve the landlord-tenant negotiation process for rental adjustments and provide clarity regarding relocation procedures, landlords’ and tenants’ rights, and available remedies to all parties; and
WHEREAS, there are an estimated 699 multi-family rental units in Fairfax, constituting approximately 57% of total renter-occupied housing units, as identified in the 2021-04-02 Housing Needs Data Report: Fairfax; and
WHEREAS, an estimated 97% of all Fairfax housing units are in structures built before 1995, as identified in Appendix H-B: Housing Needs Assessment of the Town’s Housing Element Update 2015-2023.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF FAIRFAX DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The recitals above are each incorporated by reference and adopted as findings of the Town Council.

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SECTION 2. Chapter 5.55 Amended. Chapter 5.55, “Mandatory Mediation for Rental Increases,” is hereby amended in its entirety to read as follows:
“CHAPTER 5.55: RENT STABILIZATION PROGRAM

SECTIONS

5.55.010 Purpose and Intent

5.55.020 Definitions

5.55.030 Applicability

5.55.040 Reserved

5.55.050 Reserved

5.55.060 Reserved

5.55.070 Rent Stabilization

5.55.080 Stabilization of Rents; Right of Reasonable Return for Landlords

5.55.090 No Waiver

5.55.100 Judicial Review

5.55.110 Remedies

5.55.120 Injunctive and Other Civil Relief

5.55.010 PURPOSE AND INTENT.

It is the purpose and intent of this Chapter to increase certainty and fairness in the residential rental market within the Town of Fairfax, in order to promote the health, safety, and general welfare of residents and businesses within the Town. This Chapter only governs disputes between Landlords and Tenants of certain rental Dwelling Units located within the Town of Fairfax.

5.55.020 DEFINITIONS.

APPEALS BOARD. The Town Council of the Town of Fairfax.

HOUSING SERVICES. Housing Services include, but are not limited to, repairs, maintenance, painting, providing light, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, access to exterior doors, entry systems, and gates, utilities (unless separately metered and billed to the Tenant by the utility company since the inception of the tenancy, as provided in the lease), refuse removal, furnishings, telephone, parking, the right to have a specified number of occupants or Tenants, the right to have pets, utility infrastructure, and any other benefit, privilege or facility connected with the use or occupancy of any Rental Unit. Housing Services to a Rental Unit shall include a San Anselmo Item #: 3.4- Attachment 3
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proportionate part of services provided to common facilities of the building in which the Rental Unit is contained.

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.

MAXIMUM ALLOWABLE RENT. The Maximum Allowable Rent which may be legally charged on any Stabilized Rental Unit covered by this Chapter.

PROPERTY. All rental units on a parcel or lot or contiguous parcels or contiguous lots under common ownership.

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 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 to the Landlord for parking on or near the Property, utilities, pets, furniture, and subletting.

RENTAL 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 5.55.070 of this Chapter.

STABILIZED RENTAL UNITS. All Rental Units in the Town of Fairfax except those rental units exempt under one or more of the following provisions:

(1) Rental Units in hotels, motels, and inns, which are rented primarily to transient guests for a period of fewer than thirty (30) days. This exemption does not apply (a) to a Tenant who has resided at the Property for more than thirty continuous days (b) a Tenant who has entered into an agreement to lease a Rental Unit for 30 days or more, or (c) where a Landlord has violated California Civil Code 1940.1 with regard to the Tenant.
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Building Code section 202 that is solely owned and operated by an accredited institution of higher education.
(3) Rental Units which a government unit, agency or authority fully owns, operates and manages. This exemption applies only if applicable federal or state law or administrative regulation specifically exempt such units from municipal Rent stabilization.
(4) Rental Units exempt pursuant to the Costa-Hawkins Rental Housing Act (Civil Code sections 1954.50—1954.535). If this subsection (4) is repealed by operation of law, new Rental Units shall be exempt per this subsection only if newly constructed within ten years prior to such repeal. In such case, pursuant to Government Code § 66300(d)(2)(A), all units built on the same parcel where any Stabilized Rental Unit was previously demolished shall not be exempt as new construction.
(5) Private, for profit care homes, assisted care facilities, supportive housing. (6) Exemptions listed in Section 5.55.030(B) of this Chapter.

TENANT. A tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a Rental Agreement to the use or occupancy of any Rental Unit.

TENANT ORGANIZATION. Any group of Tenants who organize collectively for their shared interest(s) as Tenants, including concerns regarding repairs and maintenance, Rent amounts or Rent increases, evictions, discrimination, or harassment, regardless of whether they share the same Landlord or management company.

TOWN. The Town of Fairfax, California
TOWN MANAGER. The Town Manager of the Town of Fairfax, California or designee.

UTILITY CHARGES. Any charges for gas, electricity, water, hot water, sewer, refuse removal, cable or internet.

5.55.030 APPLICABILITY.
(A) Applicability. Except as provided herein, the provisions of this Chapter shall apply to all properties in Fairfax that are hired, rented, or leased to a household within the meaning of Cal. Civil Code section 1940, including properties that contain any of the following: (1) Dwelling Units which contain a separate bathroom, kitchen, and living area in a multifamily or multipurpose dwelling; (2) Dwelling Units in single room occupancy residential structures; or (3) units in a structure that is being used for residential uses whether or not the residential use is a conforming use permitted under the Fairfax Town Code. This definition applies to any dwelling space that is actually San Anselmo Item #: 3.4- Attachment 3
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used for residential purposes, including live-work spaces, whether or not the residential use is legally permitted.
(B) Exemptions. The following Rental Units shall be exempt from the provisions of this Chapter:
(1) Rental Units in hotels, motels, and inns, which are rented primarily to transient guests for a period of fewer than thirty (30) days. This exemption does not apply (a) to a Tenant who has resided at the Property for more than thirty continuous days (b) a Tenant who has entered into an agreement to lease a Rental Unit for 30 days or more, or (c) where a Landlord has violated California Civil Code 1940.1 with regard to the Tenant, or (d) a Rental Unit used exclusively as a Short-Term Rental as defined in Fairfax Town Code Section 17.008.020.
(2) Rental Units in any 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) Rental Units which a government unit, agency or authority fully owns, operates and manages. This exemption applies only if applicable federal or state law or administrative regulation specifically exempt such units from municipal Rent stabilization.
(4) Any Dwelling Unit located in a development where the Dwelling Units are subject to legally binding restrictions enforceable against and/or governing such units that limit the Rent to no more than an affordable Rent, as such term is defined in Cal. Health & Safety Code section 50053 and as subsequently amended. (5) Exemptions listed in the definition of Stabilized Rental Units in this Chapter.

5.55.040 Reserved

5.55.050 Reserved

5.55.060 Reserved

5.55.070 RENT STABILIZATION.

(A) Authority and Duties. The Town Manager or Town Council shall have the following authority and duties under this Chapter:
(1) Establish a Base Rent under section 5.55.080(A).

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(2) Make adjustments in the Rent Increase and Decreases in accordance with section 5.55.080.
(3) Set Rents at fair and equitable levels in order to achieve the intent of this Chapter.
(4) Issue orders, rules and regulations, conduct hearings and charge fees as set forth below.
(5) Make such studies, surveys and investigations, conduct such hearings, and obtain such information as is necessary to carry out required duties. (6) Report annually to the Fairfax Town Council on the status of rental housing covered by this Chapter. This shall include a summary of the numbers of notices served, the basis upon which they were served, the amount of the Rent increases and the addresses for which they were served. A searchable database will be created so that service of notice may be determined as well as the summaries. A Rent increase, termination, or change in terms of tenancy is not valid if not served on the Town Manager.
(7) Administer oaths and affirmations and subpoena witnesses. (8) Establish rules and regulations for deducting penalties and settling civil claims under section 5.55.110.
(9) Seek authorization from the Town Council to seek injunctive and other civil relief under sections 5.55.110 and 5.55.120. (10) Charge and collect the Rental Housing Fee, including penalties for late payments.
(11) Make available on a contract basis legal assistance services for low-income residents of Fairfax related to evictions and petitions, hearings and appeals. (12) Collect and/or receive copies of notices of termination of tenancy, Rent increase, and changes in terms of tenancy.
(13) Any other duties necessary to administer and enforce this Chapter. (B) Rules and Regulations. The Town Council may issue such rules and regulations, including those which are contained in this Chapter as will further the purposes of the Chapter. The Town Council shall publicize its rules and regulations prior to promulgation on the Town’s website.
(C) Community Education. The Town Manager may publicize this Chapter and Chapter 5.54 so that all residents of Fairfax will have the opportunity to become San Anselmo Item #: 3.4- Attachment 3
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informed about their legal rights and duties under this Chapter. The Town Manager will prepare a brochure which fully describes the legal rights and duties of Landlords and Tenants under Chapters 5.54 and 5.55 of this Code. The brochure will be available to the public and each Tenant of a Rental Unit shall receive a copy of the brochure from their Landlord. Landlords shall provide the brochure at the commencement of the tenancy and with each notice of Rent increase. This brochure will be made available for download from the Town website and/or other appropriate technology. Information about the Rent Stabilization Program may be made available in other languages as requested by the community.

(D) Collection of Rental Housing Fee. All Landlords shall pay the business license fee required by the Town Code section 5.16.010, if applicable, in addition to the Rental Housing Fee. The Town may charge the Rental Housing Fee at the same time as the business license fee. The Rental Housing Fee will be set by resolution of the Town Council. Enforcement of this Chapter shall be funded by the Rental Housing Fee.

(E) Reporting and Fee Payment Requirements.
(1) Within sixty (60) days after the implementation date of this Chapter, all Landlords shall file a copy of all rental increase notices, change of terms of tenancy and tenancy termination notices with the Town Manager before serving the Tenant the notice. A proof of service with time and date of service of notice shall be included with notice filed with the Town Manager.
(2) After proper notice and hearing, if it is determined that a Landlord has willfully and knowingly failed to properly report, as described above, any rental increase notices, change of terms of tenancy or tenancy termination, or pay the Rental Housing Fee, the Town Manager may authorize the Tenant of such a non-reporting or fee paid Unit to withhold all or a portion of the Rent for the Rental Unit until such time as the Rental Housing Fee is paid or notice filed. After a notice is properly filed or fee paid, the Town Manager shall determine what portion, if any, of the withheld Rent is owed to the Landlord for the period in which the notice is not properly filed or fee paid. Whether or not the Town Manager allows such withholding, no Landlord who has failed to properly report or pay the fee shall at any time increase Rents for a Stabilized Rental Unit until such fee or notice is reported.
(3) Failing to pay the fee or file a timely copy of a notice before the filing of an unlawful detainer lawsuit is a complete defense to an unlawful detainer.

5.55.080 STABILIZATION OF RENTS; RIGHT OF REASONABLE RETURN FOR LANDLORDS.
(A) Establishment of Base Rent. Beginning on the effective date of this Chapter, no Landlord shall charge Rent for any Stabilized Rental Unit in an amount San Anselmo Item #: 3.4- Attachment 3
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greater than the Rent in effect for that unit on February 2, 2022 except for increases expressly allowed under this Chapter. The Rent in effect on that date is the Base Rent.

If there was no Rent in effect on February 2, 2022 the Base Rent shall be the Rent that was charged on the first date that Rent was charged following February 2, 2022. For tenancies commencing after the adoption of this Chapter, the Base Rent is the initial rental rate in effect on the date the tenancy commences. As used in this subsection, the term “initial rental rate” means only the amount of Rent actually paid by the Tenant for the initial term of the tenancy. The Base Rent is the reference point from which the Maximum Allowable Rent shall be adjusted upward or downward in accordance with section 5.55.080(C).
(B) Posting. As soon as the Landlord is aware of the Annual General Adjustment the Landlord shall post it in a prominent place in or about the affected Stabilized Rental Units.
(C) Annual General Adjustment. No later than June 30 each year, the Town Manager shall announce the percentage by which Rent for eligible Rental Units will be adjusted, effective September 1 of that year.
(1) The Annual General Adjustment shall be equal to 60% of the percentage increase in the Consumer Price Index (All Urban Consumers, San Francisco-Oakland-Hayward region, or any successor designation of that index that may later be adopted by the U.S. Bureau of Labor Statistics) as reported and published by the U.S. Department of Labor, Bureau of Labor Statistics, for the 12-month period ending as of March of the current year.
(2) Paragraph 1 of this subsection notwithstanding, in no event shall the Annual General Adjustment be less than 0% not greater than 5%. (3) For the period between the effective date of this Chapter and the first Annual General Adjustment announced September 1, 2023, the Landlord may submit a request to the Town Manager for an increase to the Maximum Allowable Rent.

Guidelines for approving or denying such request shall be promulgated by the Town Council.
(D) Petitions. Upon receipt of a petition by a Landlord and/or a Tenant, the Maximum Allowable Rent of individual Stabilized Rental Units may be adjusted upward or downward in accordance with the procedures set forth elsewhere in this section. The petition shall be on the form provided by the Town Manager and shall include a declaration by the Landlord that the Rental Unit meets all requirements of this Chapter.

Notwithstanding any other provision of this section, the hearing examiner may refuse to hold a hearing and/or grant a Rent adjustment if an individual hearing has been held and decision made with regard to the Maximum Allowable Rent within the previous twelve (12) months.

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(E) Hearing Procedure. The Town Council shall enact rules and regulations governing hearings and appeals of individual adjustment of Maximum Allowable Rents which shall include the following:
(1) Hearing Examiner. A hearing examiner appointed by the Town Manager shall conduct a hearing to act upon the petition for individual adjustment of Lawful Rent and shall have the power to administer oaths and affirmations. (2) Notice. The Town Manager shall notify the Landlord, if the petition was filed by the Tenant, or the Tenant, if the petition was filed by the Landlord, of the receipt of such a petition and provide a copy thereof.
(3) Time of Hearing. The hearing officer shall notify all parties as to the time, date and place of the hearing.
(4) Records. The hearing examiner may require either party to a Rent adjustment hearing to provide it with any books, records and papers deemed pertinent in addition to that information contained in registration statements. The hearing examiner may conduct a current building inspection and/or request the city to conduct a current building inspection if the hearing examiner finds good cause to believe the Board's current information does not reflect the current condition of the Stabilized Rental Unit. The Tenant may request the hearing examiner to order such an inspection on or prior to the date of the hearing. All documents required under this section shall be made available to the parties involved prior to the hearing at Town offices. In cases where information filed in a petition for Maximum Allowable Rent adjustment or in additional submissions filed at the request of the hearing examiner is inadequate or false, no action shall be taken on said petition until the deficiency is remedied. (5) Open Hearings. All Maximum Allowable Rent adjustment hearings shall be open to the public.
(6) Right of Assistance. All parties to a hearing may have assistance in presenting evidence and developing their position from attorneys, legal workers, Tenant Organization representatives or any other persons designated by said parties. (7) Hearing Record. The Town Manager shall make available for inspection and copying by any person, an official record which shall constitute the exclusive record for decision on the issues at the hearing. The record of the hearing, or any part of one, shall be obtainable for the cost of copying. The record of the hearing shall include: all exhibits, papers and documents required to be filed or accepted into evidence during the proceedings; a list of participants present; a summary of all testimony accepted in the proceedings; a statement of all materials officially noticed; all recommended decisions; orders and/or rulings; all final decisions, orders and/or rulings, and the reasons for each final decision, order and/or ruling. All hearings shall be recorded. Any party may receive a copy of the audio that was made. Reasonable costs may be charged.

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(8) Proof Required and Notice of Decision. No individual adjustment shall be granted unless supported by the preponderance of the evidence submitted at the hearing. All parties to a hearing shall be sent a notice of the decision and a copy of the findings of fact and law upon which said decision is based. At the same time, parties to the proceeding shall be notified of their right to an appeal to the Town Council and/or to judicial review of the decision on appeal pursuant to this section and section 5.55.100 of this Chapter.
(9) Consolidation. All Landlord petitions pertaining to Tenants of the same Property shall be consolidated for hearing, and all petitions filed by Tenants occupying the same Property shall be consolidated for hearing unless there is a showing of good cause not to consolidate such petitions. (10) Time for Decision. Decisions decreasing Rents shall remain in effect until the Town Manager finds that the Landlord has corrected the defect warranting the decrease. 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 Civil Procedure section 1942.4. If the Landlord is found to be in violation of California Civil Procedure section 1942.4 then no rent shall be charged for the period during which the Landlord was in violation.
(11) Appeal. Any person aggrieved by the decision of the hearing examiner may appeal to the Town Council acting as the Appeals Board. On appeal, the Town Council may affirm, reverse or modify the decision of the hearing examiner. (12) Finality of Decision. The decision of the hearing examiner shall be the final decision in the event of no appeal to the Town Council. The decision of the hearing examiner shall not be stayed pending appeal; however, in the event that the Town Council on appeal, reverses or modifies the decision of the hearing examiner, the Landlord, in the case of an upward adjustment in Rent, or the Tenant, in the case of a downward adjustment of Rent, shall be ordered to make retroactive payments to restore the parties to the position they would have occupied had the hearing examiner's decision been the same as that of the Town Council.
(F) Individual Adjustment Rent Increase. In making individual adjustments of the Annual Adjustable Rent Increase, the hearing examiner shall consider the purposes of this Chapter and the requirements of law, including state law. In making an individual downward adjustment, the hearing examiner may consider decreases in Housing Services; substantial deterioration of the Stabilized 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 substantially with applicable housing, health and safety codes.

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(G) No Direct Charge for Utilities. A Landlord may not charge a Tenant for Utility Charges indirectly. In order to be paid by a Tenant, the utility service must be separately or individually metered and the utility account must be registered to the Tenant and not the Landlord.
(H) Landlords’ Right of Reasonable Return. In making individual adjustments of the Maximum Allowable Rent, the hearing examiner shall consider the purposes of this Chapter and shall specifically consider all relevant factors, including (but not limited to):
(1) Increases or decreases in Property taxes;
(2) Unavoidable increases or any decreases in maintenance and operating expenses;
(3) The cost of planned or completed capital improvements to the Rental Unit (as distinguished from ordinary repair, replacement and maintenance) where such capital improvements are necessary to bring the Property into compliance or maintain compliance with applicable local code requirements affecting health and safety, and where such capital improvement costs are properly amortized over the life of the improvement;
(4) Increases or decreases in the number of Tenants occupying the Rental Unit, living space, furniture, furnishings, equipment, or other Housing Services provided, or occupancy rules;
(5) Substantial deterioration of the Rental Unit other than as a result of normal wear and tear;
(6) Failure on the part of the Landlord to provide adequate Housing Services, or to comply substantially with applicable state rental housing laws, local housing, health and safety codes, or the Rental Agreement; and (7) The pattern of recent rent increases or decreases.
(I) No upward adjustment of an individual Maximum Allowable Rent shall be authorized under this section if the Landlord:
(1) Has continued to fail to comply with any provisions of this Chapter and/or orders or regulations properly issued thereunder, or (2) Has failed to bring the Rental Unit into compliance with the implied warranty of habitability.
(J) Allowable Rent increases pursuant to an individual upward adjustment of the rent ceiling shall become effective only after the Landlord gives the Tenant at least a San Anselmo Item #: 3.4- Attachment 3
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thirty (30) day written notice of such Rent increase and the notice period expires. If the hearing examiner makes a downward individual adjustment of the rent ceiling, such Rent decrease shall take effect no sooner than thirty (30) days after the effective date set for the downward adjustment.
(K) No provision of this Chapter shall be applied so as to prohibit the hearing examiner from granting an individual Rent adjustment that is demonstrated by the Landlord to be necessary to provide the Landlord with a fair return on investment.

Limits on the total increase per month and length of monthly increase may be promulgated by the Town Council through regulations.

5.55.090 NO WAIVER.

Any provision, whether oral or written, whereby any provision of this Chapter for the benefit of the Tenant is waived, shall be deemed to be against public policy and shall be void.

5.55.100 JUDICIAL REVIEW.

A Landlord or Tenant aggrieved by any final action or decision of the Town Council may seek judicial review by appealing to the appropriate court within the jurisdiction. No action or decision by the Town Council shall go into effect until thirty (30) days have expired to allow for such appeal.

5.55.110 REMEDIES.
(A) Any Landlord who demands, accepts, receives, or retains any payment of Rent in excess of the maximum lawful Rent, in violation of the provisions of this Chapter or any rule, regulation or order hereunder promulgated, including the provisions ensuring compliance with habitability standards and registration fee requirements, shall be liable in a civil action to the Tenant from whom such payments are demanded, accepted, received or retained, for reasonable attorney fees and costs as determined by the court, plus damages in the amount by which the payment or payments demanded, accepted, received or retained exceeds the maximum lawful Rent. A civil penalty of treble the amount by which the payment or payments demanded, accepted, received or retained exceeds the maximum lawful Rent shall be awarded against the Landlord upon a showing that the Landlord has acted willfully or with oppression, fraud or malice. The statute of limitations for all remedies in this subsection shall be three years. The remedies of this subsection are cumulative and may be used in addition to any other remedy in this Chapter, at law, statute or ordinance.
(B) In lieu of filing a civil action for violation of section 5.55.070 of this Chapter, a Tenant may file an administrative complaint. The Town Council may establish by resolution a hearing procedure similar to that set forth in section

5.55.080(E).

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In any administrative hearing under this section, a Landlord who demands, accepts, receives or retains any payment of Rent in excess of the maximum lawful Rent shall be liable for damages in the amount by which the payment or payments demanded, accepted, received or retained exceeds the maximum lawful Rent and may be liable for an additional amount not to exceed Five Hundred Dollars ($500), for costs, expenses incurred in pursuing the hearing remedy, and damages. The Tenant shall bear the burden of proving entitlement to this amount. The Tenant may deduct the $500 costs payment and award of damages from future Rent payments in the manner provided by the Town Manager. An order authorizing Rent withholding under this Chapter shall survive the sale or other transfer of the Rental Unit and shall be binding upon successors of the Landlord against whom the order was made. If a Tenant authorized to withhold Rent under this Chapter vacates the Rental Unit, the Landlord shall pay to such Tenant a sum equal to the balance of the Rent that the Tenant could have withheld.
(C) If the Tenant from whom such excessive payment is demanded, accepted, received or retained in violation of the foregoing provisions of this Chapter or any rule or regulation or order hereunder promulgated, fails to bring a civil or administrative action as provided for in this section within one hundred twenty (120) days from the date of occurrence of the violation, the Town Manager may settle the claim arising out of the violation or bring such action. Thereafter, the Tenant on whose behalf the Town Manager acted is barred from also bringing an action against the Landlord in regard to the same violation for which the Town Manager has made a settlement or brought action. In the event the Town Manager settles said claim, the Town shall be entitled to retain the costs it incurred in settlement thereof, and the Tenant against whom the violation has been committed shall be entitled to the remainder.

5.55.120 INJUNCTIVE AND OTHER CIVIL RELIEF.

Tenants and Landlords of Rental Units, may seek relief from the appropriate court within the jurisdiction within which the affected Rental Unit is located to enforce any provision of this Chapter or its implementing regulations or to restrain or enjoin any violation of this Chapter and of the rules, regulations, orders and decisions.” SECTION 3. Compliance with CEQA. The Town Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of the Ordinance may have a significant effect on the environment, in that this ordinance applies residential tenant protection to existing residential units in the Town of Fairfax, which is solely an administrative process resulting in no physical changes to the environment. Accordingly, this ordinance contains no provisions modifying the physical design, development, or construction of residences or nonresidential structures.

SECTION 4. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance, or the application thereof to any person or place, is San Anselmo Item #: 3.4- Attachment 3
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for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The Town Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

AYES: ACKERMAN, COLER, CUTRANO, GODDARD, HELLMAN
NOES: None
ABSENT: None
ABSTAIN: None
/s/

Stephanie Hellman, Mayor
Attest:
/s/ 11-04-22

Michele Gardner, Town Clerk Date
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ORDINANCE NO. 870

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX AMENDING CHAPTER 5.54 “JUST CAUSE EVICTIONS” OF TITLE 5 OF THE

Fairfax; and
WHEREAS, the right to adequate housing is an internationally recognized human right, sanctioned by the United Nations and enumerated to include protection against forced evictions, security of tenure, and non-discriminatory access, as identified by the Office of the United Nations High Commissioner for Human Rights, The Right to Adequate Housing, Fact Sheet No. 21/Rev.1; and
WHEREAS, the State of California’s Tenant Protection Act of 2019 depends on renters knowing their rights and pursuing legal remediation when those rights are violated; and
WHEREAS, Chapter 5.54 (Just Cause Evictions) of the Fairfax Town Code does not presently include protections found in some other Bay Area rent stabilization and just cause eviction ordinances, such as relocation payments for renters evicted due to no fault San Anselmo Item #: 3.4- Attachment 3
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of their own, securing the right of return/first right of refusal for renters who are evicted due to no fault of their own, and special protections against eviction for seniors, the Disabled, and for Educators and students during the school year; and WHEREAS, in accordance with Civil Code section 1946.2(g)(1)(B), the Fairfax Town Council finds that this ordinance is more protective than the provisions of Civil Code section 1946.2 for the following reasons:

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF FAIRFAX DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The recitals above are each incorporated by reference and adopted as findings of the Town Council.

SECTION 2. Chapter 5.54 Amended. Chapter 5.54, “Just Cause Evictions,” is hereby amended in its entirety to read as follows:
“CHAPTER 5.54: JUST CAUSE EVICTIONS
Section

5.54.010 Purpose and Intent

5.54.020 Definitions

5.54.030 Just Cause for Eviction – Protections

5.54.040 Reserved

5.54.050 Relocation

5.54.060 Units Withdrawn from the Rental Market Pursuant to the Ellis Act

5.54.070 Remedies

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5.54.010 PURPOSE AND INTENT.

5.54.020 DEFINITIONS.

For the purpose of this Chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CREDITWORTHINESS. Any standard of determining suitability to receive credit or reliability to pay money owed, including any financial or income standard.

DISABLED. The term “disabled” shall have the same meaning as that in Government Code section 12955.3, as may be amended or renumbered from time to time.

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.

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PRIMARY RESIDENCE. Occupancy of a Primary Residence 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 a 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 the individual’s primary residence;
(3) Utilities are billed to and paid by the individual at the subject premises; (4) A 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) All or most of the individual’s personal possessions have been moved into the subject premises;
(7) The subject premises are the place the individual normally returns to as their home, exclusive of military service, hospitalization, vacation, family emergency, travel necessitated by employment or education, incarceration, or other reasonable temporary periods of absence; (8) Other relevant factors demonstrating a residence is the person’s Primary Residence.

PROPERTY. All Rental Units on a parcel or lot or contiguous parcels or contiguous lots under common ownership.

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 Agreement, as defined in this section, concerning the use or occupancy of a Rental Unit and premises, including all payment San Anselmo Item #: 3.4- Attachment 3
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and consideration demanded or paid to the Landlord for parking on or near the Property, utilities, pets, furniture, and subletting.

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

SCHOOL YEAR. The first day of instruction for the Fall Semester through two weeks after the last day of instruction for the Spring Semester, as posted on the School District website for each year.

TENANT. A tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a Rental Agreement to the use or occupancy of any Rental Unit.

TOWN. The Town of Fairfax, California
TOWN MANAGER. The Town Manager of the Town of Fairfax or designee.

5.54.030 JUST CAUSE FOR EVICTION – PROTECTIONS.
(A) Applicability. Except as provided herein, the provisions of this Chapter shall apply to all properties in Fairfax that are hired, rented, or leased to a household within the meaning of Cal. Civil Code section 1940, including properties that contain any of the following: (1) Dwelling Units which contain a separate bathroom, kitchen, and living area in a multifamily or multipurpose dwelling; (2) Dwelling Units in single room occupancy residential structures; or (3) units in a structure that is being used for residential uses whether or not the residential use is a conforming use permitted under the Fairfax Town Code. This definition applies to any dwelling space that is actually used for residential purposes, including live-work spaces, whether or not the residential use is legally permitted.
(B) Exemptions. The following Rental Units shall be exempt from this section, except that all exempt units must comply with the requirement of section 5.54.030(D). (1) Rental Units in hotels, motels, and inns, which are rented primarily to transient guests for a period of fewer than thirty (30) days. This exemption does not apply (a) to a Tenant who has resided at the Property for more than thirty continuous days (b) to a Tenant who has entered into an agreement to lease a Rental Unit for 30 San Anselmo Item #: 3.4- Attachment 3
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days or more (c) where a Landlord has violated California Civil Code 1940.1 with regard to the Tenant or (d) a Rental Unit used exclusively as a Short-Term Rental as defined in Fairfax Town Code Section 17.008.020.
(2) Rental Units in any 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) Rental Units which a government unit, agency or authority fully owns, operates and manages. This exemption applies only if applicable federal or state law or administrative regulation specifically exempt such units from municipal Rent stabilization.
(4) Any Dwelling Unit located in a development where the Dwelling Units are subject to legally binding restrictions enforceable against and/or governing such units that limit the Rent to no more than an affordable rent, as such term is defined in Cal. Health & Safety Code section 50053,and as subsequently amended. (C) No Landlord shall take action to terminate any tenancy, including but not limited to making a demand for possession of a Rental Unit, threatening to terminate a tenancy verbally or in writing, serving any notice to quit or other eviction notice, bringing any action to recover possession or be granted recovery of possession of a Rental Unit, including by seeking the entry of an eviction judgment or by causing or permitting a writ of possession to be entered unless the Landlord is able to prove the existence of one of the following grounds as stated in the termination notice on which the court action is based:
(1) Failure to Pay Rent. The Tenant has failed to pay the Rent to which the Landlord is legally entitled under the Rental Agreement, this Chapter, federal, state, and any other local law.
(a) In any action to recover possession of a Rental Unit filed under this subsection, it shall be a defense if the Landlord impeded the Tenant's effort to pay Rent by refusing to accept Rent paid on behalf of the Tenant from a third party, or refusing to provide a W-9 form or other necessary documentation for the Tenant to receive rental assistance from a government agency, non-profit organization, or other third party. Acceptance of rental payments made on behalf of the Tenant by a third party shall not create a tenancy between the Landlord and the third party as long as either the Landlord or the Tenant provide written notice that no new tenancy is intended. (b) COVID-19 State Law Preemption. This Chapter shall not apply to unlawful detainer action for nonpayment of Rent originally due from March 1, 2021 through March 31, 2022, where prohibited by Code of Civil Procedure section 1179.05 or successor statute.

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(2) Breach of Lease. The Tenant has continued, after written notice to cease, to substantially violate any of the written material terms of the Rental Agreement, except the requirement to surrender possession on proper notice as required by law. To constitute a breach of lease, the substantially violated term must be reasonable and legal and have been accepted in writing by the Tenant as part of the Rental Agreement; and provided further that, where such term was accepted by the Tenant or made part of the Rental Agreement subsequent to the initial creation of the tenancy, the Landlord must have first notified the Tenant in writing that they need not accept such terms or agree to the terms being made part of the Rental Agreement. (a) Notwithstanding any lease provision to the contrary, a Landlord shall not take any action to terminate a tenancy based on a Tenant’s sublease of the Rental Unit if the Landlord has unreasonably withheld the right to sublease following written request by the Tenant. The following requirements must be met:
(i) The Tenant continues to reside in the Rental Unit as their primary residence.
(ii) The sublease replaces one or more departed Tenants under the Rental Agreement on a one-for-one basis or the sublease adds additional occupants up to the maximum amount of occupants legally allowed under section 503(b) of the Uniform Housing Code as incorporated by California Health & Safety Code section 17922, except where prohibited by law.
(iii) A Landlord’s refusal of a subtenant must state the reason for the refusal. If the Landlord fails to respond to the Tenant’s request to sublease in writing within fourteen (14) days of receipt of the Tenant’s request, the Tenant’s request shall be deemed approved by the Landlord. (iv) 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 the occupant will not be legally obligated to pay some or all of the Rent directly to the Landlord. A Landlord's reasonable refusal of the Tenant's written request may be based on the ground that the total number of occupants in a Rental Unit exceeds the maximum number of occupants under section 503(b) of the Uniform Housing Code as incorporated by California Health & Safety Code section 17922. (b) Before endeavoring to recover possession based on the violation of a lawful 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 (ii) of section

5.54.030(C)(2)(a) or by using other reasonable means to cure the violation.

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(c) Protections for Families. Notwithstanding any contrary provision in this section, a Landlord shall not endeavor to recover possession of a Rental Unit as a result of the addition to the Rental Unit of a Tenant's child, 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 a 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 & Safety Code section 17922.
(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 and, after written notice, has refused to cease damaging the premises, or has refused to either make satisfactory correction or to pay the reasonable costs of repairing such damage over a reasonable period of time.

The fact that a Tenant has been arrested or convicted of a crime, been the victim of a crime, or contacted the police, in and of itself, is not evidence of nuisance for purposes of this subsection.
(4) Failure to Give Access. The Tenant has continued to refuse, 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 unit to a prospective purchaser or mortgagee or making necessary repairs or improvements required by the laws of the United States, the State of California or any subdivision thereof. To terminate a tenancy under this subsection, a Landlord must show that written notice was provided to the Tenant in compliance with Civil Code section 1954. (5) Temporarily Vacate in Order to Undertake Substantial Repairs. The Landlord, after having obtained all necessary permits from the Town, seeks in good faith 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 of code violations affecting the health and safety of Tenants of the building, and where such repairs while the Tenant resides on the premises require the Tenant to temporarily vacate for at least 30 days.
(a) Where such repairs can be completed in a period of 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 subsection unless the Tenant shall fail or refuse to vacate the premises in accordance with such agreement.
(b) Where the Landlord owns any other residential Rental Units in the Town of the same number of bedrooms or fewer, and any such unit is vacant and available at the time of service of the written notice terminating the tenancy, or at any time thereafter until the earlier of the Tenant's vacating the premises or the entry of a San Anselmo Item #: 3.4- Attachment 3
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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 each such vacant Rental Unit and offer the Tenant the right, at the Tenant's option, to enter into a Rental Agreement (to be designated as a "temporary rental agreement") for the 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 Rent in effect at the time of the notice of termination of tenancy on the unit being vacated. Said Rental Agreement shall be for a term of the lesser of ninety days or until completion of repairs for the Rental Unit being vacated by Tenant. (c) A notice terminating tenancy under this subsection must include the following information:
(i) A statement informing Tenants as to their right to
relocation payments under this Chapter.
(ii) The statement, "When the needed repairs are
completed on your unit, the Landlord must offer you the opportunity to return to your unit with a Rental Agreement containing the same terms as your original one and with the same rent.”
(iii) A description of the repairs to be completed and the approximate expected duration of the repairs.
(d) Where the Landlord recovers possession under this
subsection either prior to or after an unlawful detainer judgment, the Tenant must be given the right of first refusal to re-occupy the unit. The Landlord shall notify the Tenant household at least sixty (60) days in advance of the availability of the unit or room.

Within thirty (30) days of receipt of the notice of availability, a Tenant household must notify the Landlord if it wishes to reoccupy the unit or room. The Landlord must hold the unit or room vacant at no cost to the Tenant for sixty (60) days from the date the Tenant household’s written notice of its intent to reoccupy the Rental Unit or room is received. (6) 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, child, parent or grandparent.
(a) A Landlord, as used in this subsection, shall only include a Landlord that is a natural person who has at least a 51% recorded ownership interest in the Property.
(b) 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. Only one specific unit per building may undergo an “Owner Move-in” eviction. Once a Landlord has successfully recovered San Anselmo Item #: 3.4- Attachment 3
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possession of a Rental Unit pursuant to this subsection, no other Landlords may recover possession of any other Rental Unit at the Property under the subsection. Any future evictions taking place at the same Property under this subsection must be of that same Rental Unit. At all times, a Landlord may request a reasonable accommodation if the Landlord or enumerated relative is Disabled and a different unit is necessary to accommodate the person’s disability. A Landlord who has terminated a tenancy for a Rental Unit under this subsection may not terminate a tenancy for a Tenant who subsequently reoccupies a Rental Unit after termination of tenancy under this subsection or relocates to a comparable Rental Unit on the same Property for a period of four years commencing from the date of the latest notice to vacate. (c) The notice terminating tenancy shall contain the name and relationship to the Landlord of the person intended to occupy the Rental Unit. (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 to occupy the Rental Unit as a Primary Residence for at least one year . (e) If the Landlord or relative specified on the notice terminating tenancy fails to occupy the Rental Unit within 90 days after the Tenant vacates, the Landlord shall:

(i) Offer the unit to the Tenant who vacated it at the
same Rent in effect at the time the Tenant vacated; and (ii) Pay to said Tenant all reasonable expenses incurred in moving to and from the unit, include lease termination fees. This subsection does not limit any other remedies a Tenant may have under this Chapter or applicable law. (iii) If the Landlord or enumerated relative fails to occupy the Rental Unit within 90 days after the Tenant vacates or does not occupy the Rental Unit as a Primary Residence for at least one year, the Landlord shall have the burden of producing evidence that the failure to occupy did not occur in bad faith. (f) If the Landlord or relative specified on the notice terminating tenancy fails to occupy the Rental Unit within ninety days and the previous Tenant declines to move back into the Rental Unit, any new Tenant moving into the Rental Unit will have as the original base Rent the Rent in effect at the time the previous Tenant vacated.
(g) Eviction Protection for Elderly, Disabled, or Terminally Ill Tenants. A Landlord may not evict a Tenant pursuant to this subsection if (a) the Tenant has resided in the Rental Unit for at least three (3) years and is either at least 62 years of age or Disabled; or (b) if the Tenant is certified as being terminally ill by the Tenant’s treating physician. For the purposes of this subsection, notwithstanding the above, a Landlord may evict a Tenant who qualifies for the exemption if the Landlord or San Anselmo Item #: 3.4- Attachment 3
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enumerated relative who will occupy the Rental Unit is also Disabled and no other units are available at the Property.
(h) Within 30 days after the effective date of a written notice of termination under this subsection is filed with the Town Manager, the Town Manager shall record a notice of constraints with the County Recorder identifying each Rental Unit on the Property that is the subject of the subsection 5.54.030(C)(6) notice to vacate, stating the nature and dates of applicable restrictions under subsections

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(9) Termination of Temporary Tenancy. The Landlord seeks in good faith to recover possession of a separately alienable Rental Unit for their occupancy as a Primary Residence. This shall apply only where the Landlord has previously occupied the Rental Unit as their Primary Residence and has the right to recover possession of the unit for their occupancy as a Primary Residence under an existing written Rental Agreement for a term of no more than 12 consecutive months that was executed with the current Tenants. The temporary Tenant must be provided, at the inception of the tenancy, with a written statement that includes the length of the tenancy and that the tenancy may be terminated at the end of the temporary tenancy period. No relocation is required under this subsection.
(D) In any action to recover possession of a Rental Unit pursuant to this section 5.54.030, a Landlord must allege and prove that the Landlord seeks to recover possession of the unit with good faith, honest intent and with no ulterior motive for the reason stated in the termination notice. If a Landlord claims the Rental Unit is exempt from this ordinance, the Landlord must allege and prove that the unit is covered by one of the exceptions enumerated in subsection 5.54.030(B) of this Chapter. Such allegations must appear in the notice of termination of tenancy. Failure to make such allegations in the notice shall be a complete defense to any unlawful detainer action. (E) Right of Return and First Right of Refusal. All Tenants that are displaced based on sections 5.54.030(C)(5) or (C)(6) or shall have the first right of refusal to return to the unit if it should ever be returned to the market by the Landlord or successor Landlord. The return tenancy shall include the same terms as the original tenancy and the Rent shall be the Rent lawfully paid by the Tenant at the time the Landlord gave notice of termination on a basis listed in sections 5.54.030(C)(5) or (C)(6) plus any lawful adjustment under section 5.55.080. All notices of termination of tenancy served under sections 5.54.030(C)(5) or (C)(6) shall state the lawful Rent in effect at the time of termination of tenancy. If the Tenant declines to reoccupy the Rental Unit after it is returned to the rental market, the lawful base Rent for the new tenancy shall be the Rent lawfully paid by the Tenant at the time the Landlord served the termination notice, plus any lawful adjustment under this Chapter or Chapter 5.55. (F) School Year Protections for Educators and Students. It shall be a defense to an eviction under sections 5.54.030(C)(5) or (C)(6) if a child under the age of 18 or any Educator resides in the unit, the child or Educator is a Tenant in the unit or the child has a custodial or family relationship with a Tenant in the unit, the Tenant has resided in the unit for 12 months or more, and the expiration date of the notice of termination of tenancy falls during the School Year.
(G) Written Warning Notice Requirements. Any written warning notice as described in subsections 5.54.030(C)(2)-(4) shall be served by the Landlord on the Tenant within a reasonable period prior to serving a notice to terminate tenancy and shall inform the Tenant that a failure to cure may result in the initiation of eviction proceedings, of the right to request a reasonable accommodation for disability, and the San Anselmo Item #: 3.4- Attachment 3
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contact number for the Town Manager. A reasonable period shall be presumed to be seven days. The notice shall also include sufficient details allowing a reasonable person to comply. 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.
(H) Retaliation is Barred. Notwithstanding the above provisions, possession shall not be granted if it is determined that the eviction is knowingly in retaliation for the Tenant reporting violations of this Chapter, for exercising rights granted under this Chapter or other law, or for forming or participating in a Tenant Organization. (I) Additional Notice Requirements. In any notice purporting to terminate 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. All notices described in subsections 5.54.030(C)(2)-(4) shall be attached to any notices that purport to terminate a tenancy for which they correspond. The Landlord shall file with the Town Manager a copy of any notice terminating tenancy within three (3) days after serving the notice on the Tenant. (J) Failure to Comply. Failure to comply with any requirement of this Chapter or any implementing regulation may be asserted as an affirmative defense in an action brought by the Landlord to recover possession of the Unit. Additionally, any attempt to recover possession of a Rental Unit or recover of possession in violation of this Chapter shall render the Landlord liable to the Tenant in a civil action for wrongful eviction for treble damages. The Tenant may seek injunctive relief, equitable relief, and money damages. In any action for equitable relief, it shall be presumed that a Tenant suffers irreparable harm through violation of this Chapter. A Tenant or Landlord prevailing in an action brought under this Chapter that is not an unlawful detainer action shall recover costs and reasonable attorney fees. The statute of limitations for all remedies in this section shall be three years. The remedies under this section are cumulative, and may be used in addition to any other remedies in this Chapter or at law, statute, or ordinance.

5.54.040 RESERVED.

5.54.050 RELOCATION.
(A) A Landlord seeking to recover possession under sections 5.54.030(C)(5)- (7) must make relocation payments to the Tenant’s household of the Rental Unit. The amount of the relocation benefit shall be equal to two months’ Rent, at the rate of Rent applicable at the time of the relocation. Relocation payments shall be paid at the time of the service of the notice of termination of tenancy. If the Tenant fails to vacate the unit, the relocation payment must be returned to the Landlord. (B) Notwithstanding subsections 5.54.050(A), any Tenant household that, at the time the notice of intent to withdraw Rental Units is filed with the Town, includes a San Anselmo Item #: 3.4- Attachment 3
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Tenant who is 62 years of age or older, 17 years of age or younger, Disabled, or certified as being terminally ill by the Tenant’s treating physician shall be entitled to receive an additional payment of $3,000.
(C) Every year following the date of passage, the relocation payments specified in subsections 5.54.050(A) and (B) shall increase annually at the rate of increase in the “rent of primary residence” expenditure category of the Consumer Price Index (CPI) for Marin County for the preceding calendar year, as that data is made available by the United States Department of Labor and published by the Town.
(D) Short-Term Tenant Relocation.
(1) Where a Tenant shall be displaced from their Rental Unit for renovation work for a period of thirty days or less, the Landlord shall immediately make short-term relocation payments to the Tenant as set out in subsection 3, below, or the Tenant may elect not to receive short-term relocation payments. If the Tenant receives short-term relocation payments, the Tenant remains obligated to pay the lawful Rent in effect when the Tenant vacated. If the Tenant has elected not to receive short-term relocation payments, the Tenant shall not be obligated to pay Rent until the Tenant reoccupies the Rental Unit. (2) Should a Tenant be displaced for a greater time than originally notified, the Landlord shall pay additional short-term relocation expenses for each additional day of displacement, to be paid on a weekly basis prior to each additional week.
(3) The following amounts shall be paid by the Landlord to the Tenant for each day of displacement:
(i) Hotel or motel accommodations: $168.15 per household; (ii) Meal expenses: $33.85 per occupant;
(iii) Laundry: $1.12 per household;
(iv) Pet accommodation: $32.73 per cat and $58.69 per dog. (4) Replacement amounts shall be adjusted yearly based on the CPI increase. The Town Manager shall publish the new relocation amounts each year following the increase.
(E) If a Landlord fails to provide relocation payments in accordance with this section, in addition to any other remedy under this Chapter, or at law, the Tenant may pursue a civil action for the amount of relocation payments they would have been entitled to and costs of suit. The statute of limitations for all remedies in this section San Anselmo Item #: 3.4- Attachment 3
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shall be three years. The remedies of this section are cumulative, and may be used in addition to any other remedy available in this Chapter or at law. (F) A Landlord’s failure to properly allege and prove a permissible ground for eviction under sections 5.54.030(C)(5)-(7) is not a defense to failing to provide relocation payments when a Landlord recovers the Rental Unit in violation of section

5.54.060 UNITS WITHDRAWN FROM THE RENTAL MARKET PURSUANT TO THE ELLIS ACT.

The following shall apply to a unit where possession is recovered pursuant to section

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This offer shall be deposited in the United States mail, by registered or certified mail with postage prepaid, addressed to the displaced Tenant at the address furnished to the Landlord as provided in this subsection, and shall describe the terms of the offer. The displaced Tenant shall have 30 days from the deposit of the offer in the mail to accept the offer by personal delivery of that acceptance or by deposit of the acceptance in the United States mail by registered or certified mail with postage prepaid.
(B) Re-Rental of Units within Five Years
(1) For all tenancies commenced during the time periods described below, the Rental Unit shall be offered and rented or leased at the lawful Rent in effect at the time any notice of intent to withdraw the Rental Unit is filed with the Town Manager, plus annual adjustments available under section 5.55.080 of this Code. (2) The provisions of paragraph (1) shall apply to all tenancies commenced during either of the following time periods:
(a) The five-year period after any notice of intent to withdraw the Rental Unit is filed with the Town Manager, whether or not the notice of intent is rescinded or the withdrawal of the Rental Unit is completed pursuant to the notice of intent.
(b) The five-year period after the Rental Unit is withdrawn. (3) This subsection shall prevail over any conflicting provision of law authorizing the Landlord to establish the rental rate upon the initial hiring of the Rental Unit.
(C) Re-Rental of Rental Units Within Five Years A Landlord who offers a Rental Unit again for Rent or lease within 5 years from the date on which it is withdrawn, and which is subject to this subsection, shall first offer the unit to the Tenant displaced from the unit by the withdrawal, if that Tenant requests the offer in writing within 30 days after the Landlord has notified the Town of an intention to offer the Rental Unit again for residential Rent or lease. The Landlord of the Rental Unit shall be liable to any Tenant who was displaced by that action for failure to comply with this paragraph, for punitive damages in an amount which does not exceed the contract Rent for six months, and the payment of which shall not be construed to extinguish the Landlord’s obligation to comply with this subsection.
(D) Demolition Restrictions. If the Rental Unit(s) are demolished, and new Rental Unit(s) are constructed on the same property, and offered for Rent or lease within four years of the date the Rental Unit(s) were withdrawn from Rent or lease, the newly constructed Rental Unit(s) shall be subject to the system of regulation established in section 5.55.080 at which they would be offered on the basis of a fair and reasonable San Anselmo Item #: 3.4- Attachment 3
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return on the newly constructed Rental Unit, notwithstanding any exemption from the system of regulations for newly constructed Rental Unit. (E) Applicability to Successors in Interest. This section shall apply to all successors in interest of a Landlord who has withdrawn Rental Units from Rent or lease. The Town Manager shall record a notice with the county recorder which shall specifically describe the real property where the Rental Unit is located, the dates applicable to the constraints and the name of the Landlord of record of the real property.

1.8 of Part 4 of Division 3 of the Civil Code).
(I) The Landlord must record with the county recorder a memorandum summarizing the provisions, other than the confidential provisions, of the notice in a form which shall be prescribed by the Town Manager, and will require a certification with that notice that actions have been initiated as required by law to terminate any existing tenancies.
(J) The Landlord must notify the Town Manager in writing of the intention to re-offer the Rental Unit for Rent or lease.
(K) The date on which the Rental Unit is withdrawn from Rent or lease for purposes of this Chapter is 120 days from the delivery in person or by first-class mail of the notice of withdrawal to the Town Manager. However, if the Tenant is at least 62 San Anselmo Item #: 3.4- Attachment 3
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years of age or Disabled, and has lived in their Rental Unit for at least one year prior to the date of delivery of the notice of intent to withdraw, then the date of withdrawal of the Rental Unit of that Tenant shall be extended to one year after the date of delivery of that notice, provided that the Tenant gives written notice of their entitlement to an extension to the Landlord within 60 days of the date of delivery of the notice of intent to withdraw. (L) Extension of Tenancy for Elderly or Disabled Tenants. If a Tenant notifies a Landlord in writing within 60 days of the Town Manager receiving the notice of intent to withdraw the Rental Unit, the following provisions shall apply:
(1) The tenancy shall be continued on the same terms and conditions as existed on the date of delivery to the Town Manager of the notice of intent to withdraw, subject to any adjustments otherwise available under this Chapter. (2) No party shall be relieved of the duty to perform any obligation under the lease or rental agreement.
(3) The Landlord may elect to extend the tenancy on any other Rental Unit within the rental Property up to one year after date of delivery of the notice of intent to withdraw, subject to paragraphs (1) and (2) of this subsection. (4) Within 30 days of the notification by the Tenant to the Landlord of their entitlement to an extension, the Landlord shall give written notice to the Town Manager of the claim that the Tenant is entitled to stay in their Rental Unit for one year after date of delivery of the notice of intent to withdraw. (5) Within 90 days of date of delivery to the Town Manager of the notice of intent to withdraw, the Landlord shall give written notice of the Landlord’s election to extend a tenancy under paragraph (3) and the revised date of withdrawal to the Town Manager and any Tenant whose tenancy is extended. (6) The date of withdrawal for the Rental Unit as a whole, for purposes of calculating any time-periods in this Chapter, shall be the latest termination date among all Tenants within the Rental Unit, as stated in the notices required by paragraphs (4) and (5). A Landlord’s further voluntary extension of a tenancy beyond the date stated in the notices required by paragraphs (4) and (5) shall not extend the date of withdrawal.
(M) The Landlord must notify any Tenant displaced pursuant to subsection

5.54.030(C)(7) of the following:
(1) That the Town Manager has been notified pursuant to subsection

5.54.060(G).
(2) That the notice to the Town Manager specified the name and the amount of Rent paid by the Tenant as an occupant of the Rental Unit.

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(3) The amount of Rent the Landlord specified in the notice. (4) Notice to the Tenant of their rights under this subsection. (5) Notice to the Tenant of the following:
(a) If the Tenant is at least 62 years of age or Disabled, and has lived in their Rental Unit for at least one year prior to the date of delivery to the Town Manager of the notice of intent to withdraw, then tenancy shall be extended to one year after date of delivery to the Town Manager of the notice of intent to withdraw, provided that the Tenant gives written notice of their entitlement to the Landlord within 60 days of date of delivery to the Town Manager of the notice of intent to withdraw. (b) The extended tenancy shall be continued on the same terms and conditions as existed on date of delivery to the Town Manager of the notice of intent to withdraw, subject to any adjustments otherwise available under section 5.55.080 of this Code.
(c) No party shall be relieved of the duty to perform any obligation under the lease or Rental Agreement during the extended tenancy. (N) Not later than the last day of the third and sixth calendar months following the month in which notice is given to the Town Manager, and thereafter not later than December 31 of each calendar year for a period of two years, beginning with the year in which the six-month notice is given, the Landlord of any Property which contains or formerly contained one or more Rental Units which a Tenant or Tenants vacated pursuant to section 5.54.030(C)(7) shall notify the Town Manager, in writing, under penalty of perjury, for each such Rental Unit:
(1) Whether the Rental Unit has been demolished;
(2) If the Rental Unit has not been demolished, whether it is in use; (3) If the Rental Unit is in use, whether that use is residential; (4) If the Rental Unit is in residential use, the date the tenancy began, the name of the Tenant(s), and the amount of Rent charged. (O) If a Rental Unit has been demolished, and one or more new units constructed on the lot, the Landlord shall furnish the information required by items (M)(2), (3) and (4), above, for each new unit. The Town Manager shall maintain a record of the notices received under this section and all notices received under this section for each Rental Unit withdrawn from the rental market pursuant to section 5.54.030(C)(7).

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(P) The Town Manager shall notify each person who is reported as having become a Tenant in a vacated or new Rental Unit subject to the reporting requirements of subsection 5.54.060(N) that it maintains the records described in subsection

5.54.070 REMEDIES.

This section creates a private right of action to enforce all terms, rights, and obligations under this Chapter. Whoever is found to have violated this Chapter shall be subject to appropriate injunctive relief and shall be liable for damages, costs, and reasonable attorneys’ fees, and whatever other relief the court deems appropriate. In the case of an award of damages, said award may be trebled if the trier of fact finds that the Landlord acted in knowing violation, reckless disregard, or otherwise willfully failed to comply with this Chapter. The court may award the defendant attorney’s fees and costs as the prevailing party in cases where plaintiff’s claim is deemed unreasonable, frivolous, meritless, or vexatious.
(C) Civil Actions to Determine Liability. Any Tenant may bring a civil action to determine the applicability of this Chapter to the tenancy. (D) Other Private Rights of Action. Nothing herein shall be deemed to interfere with the right of a Landlord to file an action against a Tenant or non-tenant third party for the damage done to said Landlord’s property. Nothing herein is intended to limit the damages recoverable by any party through a private action.” San Anselmo Item #: 3.4- Attachment 3
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SECTION 3. Compliance with CEQA. The Town Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of the Ordinance may have a significant effect on the environment, in that this ordinance applies residential tenant protection to existing residential units in the Town of Fairfax, which is solely an administrative process resulting in no physical changes to the environment. Accordingly, this ordinance contains no provisions modifying the physical design, development, or construction of residences or nonresidential structures.

SECTION 4. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance, or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The Town Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

AYES: ACKERMAN, CUTRANO, GODDARD, HELLMAN
NOES: COLER
ABSENT: None
ABSTAIN: None
/s/

Stephanie Hellman, Mayor
/s/ 11-04-22
Attest:

Michele Gardner, Town Clerk Date
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ORDINANCE NO. 925

AN ORDINANCE OF THE CITY OF BELL GARDENS CALIFORNIA
ADDING CHAPTER 5.62 "RENT STABILIZATION" AND CHAPTER 5.63 "TENANT EVICTION PROTECTIONS" TO TITLE 5 OF THE BELL

GARDENS MUNICIPAL CODE RESTRICTING RENT INCREASES AND

ESTABLISHING EVICTION PROTECTIONS AND OTHER

REGULATIONS APPLICABLE TO CERTAIN COVERED RESIDENTIAL

RENTAL UNITS IN THE CITY
WHEREAS, the City of Bell Gardens ("City") is a general law city, incorporated under the laws of the State of California; and
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries which promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws; and WHEREAS, in response to community concern about rising rents and the need for greater tenant protections, at the City Council meeting of April 8, 2019, the City Council of the City of Bell Gardens ("City Council") formed an Ad Hoc Committee ("Committee") to study the issue of rent control, engage in community outreach and consider the potential development of a rent stabilization and tenant eviction protection ordinance; and WHEREAS, on January 1, 2020, the California Tenant Protection Act of 2019 (the "Act") went into effect. Among other provisions, the Act requires just cause evictions and limits rent increases for rental properties subject to the Act to five percent plus -the I percentage change in the consumer price index up to a maximum of 10% (Civil Code Section 1947.12); and
WHEREAS, as of March of 2020, to mitigate the impact of the Coronavirus 2019 ("COVID-19") pandemic the State of California Legislature and County of Los Angeles Board of Supervisors implemented urgency measures to protect tenants from evictions and limit rent increases on residential properties. Because of these temporary measures, the City paused its efforts to consider a local rent control program within the City.

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WHEREAS, on February 22, 2021, at the regular City Council meeting, City Council appointed additional members to the Committee and directed staff to resume its directive to explore a permanent rent control program.

WHEREAS, between June of 2021 and March of 2022 the Committee met on several occasions to explore and discuss the issue. The Committee also held two community workshops on January 13, 2022, and March 12, 2022; and WHEREAS, on April 11, 2022, City staff provided an update to the City Council on the Committee's efforts and the City Council directed staff to prepare a rent stabilization and tenant eviction protection ordinance with input from the Committee for future consideration by the City Council; and
WHEREAS, on April 25, 2022, the City Council adopted Urgency Ordinance No. 922-U to temporarily restrict rent increases for certain residential properties while the City further considers and develops a rent stabilization and tenant eviction protection ordinance; and
WHEREAS, on July 11, 2022, the City Council adopted Urgency Ordinance No. 924-U extending the temporary rent freeze for covered units to allow more time to gather input from key stakeholders and finalize a permanent rent stabilization and tenant eviction protection ordinance for City Council consideration; and WHEREAS, rents in the City and throughout Los Angeles County continue to rise, and although the City has lower rents relative to surrounding communities, many local residents, particularly low-income households, struggle with paying for rising housing costs and meeting other basic needs such as food, transportation and health care; and WHEREAS, in the City of Bell Gardens, 77.8% of households are renters and approximately 88% of renter households fall within the low, very low, or extremely low income category, according to the City's Housing Element 2021-2029 ("Housing Element"). The Housing Element also indicates that 62% of renter-occupied households 2 of 48
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in the City are cost burdened, paying more than 30% of gross income on housing; and 31 % are severely cost burdened, paying more than half of gross income on housing; and WHEREAS, the effect of high rents coupled with low incomes, critical shortages of affordable rental housing, and rapidly rising costs for other basic necessities leaves residents vulnerable to economic hardship, housing insecurity and displacement, threatening the public health, safety and welfare of a substantial number of City residents; and
WHEREAS, the Costa-Hawkins Rental Housing Act, California Civil Code section 1954.50, et seq., ("Costa-Hawkins Act") limits the applicability of local rent stabilization policies, including prohibiting local jurisdictions from applying rent control to certain residential rental properties. This Ordinance intends to comply with the Costa-Hawkins Act and all other applicable state laws; and
WHEREAS, the protections provided in this Ordinance are more restrictive, or provide greater benefits than those set forth in California Civil Code section 1946.2 in that this Ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL GARDENS DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Findings. The Recitals above are true and correct and incorporated herein by reference.

SECTION 2. Chapter 5.62 of Title 5 of the Bell Gardens Municipal Code is hereby added to read as follows:

Sections:

Chapter 5.62

RENT STABILIZATION
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5.62.010

5.62.020

5.62.030

5.62.040

5.62.050

5.62.060

5.62.070

5.62.080

5.62.090

5.62.100

5.62.110

5.62.120

5.62.130

5.62.140

5.62.150

5.62.160
Purpose and Applicability
Definitions
Exemptions
Permitted Rent Increases for Covered Rental Units
Permitted Rent Increases for Below Market Rents
Capital Improvement Pass-Through Cost Recovery
Petition for Rent Adjustment
Security Deposits
Rental Unit Registration
Notices to Tenants
Enforcement
Administrative Review and Appeals
Administrative Citations
Remedies
Waiver
Severability

5.62.010. Purpose and Applicability.

A. The purposes of this Chapter are to protect tenants from excessive rent increases and to promote long-term stability and certainty for tenants in the rental market while providing landlords an ability to receive a fair return on their rental property.

B. This Chapter shall apply to all Rental Units within the jurisdictional boundaries of the City, unless otherwise exempted by State law or the provisions of this Chapter.

C. This Chapter regulates rents for certain tenancies. It requires landlords to register rental units, establishes an administrative petition process, and provides for procedures and guidelines for the implementation of this Chapter.

5.62.020. Definitions. For the purposes of this Chapter, unless the context requires otherwise, the following definitions shall apply:
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A. "Base Rent'' means the Rent charged for a Rental Unit in effect on April 11, 2022, when the City Council declared its intent to regulate rent for residential properties in the City, or at the initiation of the Tenancy, whichever is later, plus any rent increase allowed thereafter pursuant to this Chapter.

B. "Capital Improvement" means the addition, substantial repair or replacement of any improvements to dwelling units, buildings, or common areas, which materially adds to the value of the property, appreciably prolongs its useful life or adapts it to new uses, provided such improvement has a useful life expectancy of more than one (1) year and which is the same type of improvement as those allowed to be amortized over the useful life of the improvement in accordance with the Internal Revenue Code and its regulations or similar improvements as determined by the Department. Capital Improvement does not include normal or routine maintenance or repair or repairs covered by insurance.

C. "City11 means the City of Bell Gardens.

D. "Code" means the City of Bell Gardens Municipal Code.

E. "Comparable Unit" means Rental Units that have approximately the same living space and the same or similar number of bedrooms, are located in the same or similar neighborhoods, and feature the same, similar, or equal amenities and housing services.

F. "Consumer Price Index" or "CPI" means the Consumer Price Index for all urban consumers of the Los Angeles-Long Beach-Anaheim, California area, published by the U.S. Department of Labor, Bureau of Labor Statistics, or any successor designation of that index that may later be adopted by the U.S. Department of Labor.

G. "Covered Rental Unit'' means any Rental Unit that is not designated as exempt pursuant to Section 5.62.030 of this Chapter.

H. "Department" means the Community Development Department of the City of Bell Gardens, or other Department designated by the City Council to administer the provisions of this Chapter.

I. "Director'' means the Director of Community Development of the City of Bell Gardens, or their designee.
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J. "Hearing Officer" means the person designated by the City Manager or designee to conduct a review hearing and decide petitions and appeals under this Chapter.

K. "Housing Services" means all services provided by the Landlord related to the use or occupancy of a Rental Unit, including, water, heat, utilities, insurance, maintenance, repairs, painting, elevator service, laundry facilities, janitorial service, refuse removal, furnishings, window shades and screens, parking, storage, security services, recreational areas, right to have specified number of tenants or occupants, allowing pets, communications technologies (internet, cable and satellite services), and any other benefit, privilege or facility that has been provided by the Landlord to the Tenant with use or occupancy of a Rental Unit. Services to a Rental Unit shall include a proportionate part of services provided to common facilities of the building or residential complex in which a Rental Unit is contained.

L. "Landlord" means an owner, lessor, sublessor, or any other person entitled to offer any Rental Unit for Rent or entitled to receive Rent for the use and occupancy of a Rental Unit, and the agent, representative, or successor of any of the foregoing. "Landlord" includes a Mobilehome Park and its agent, representative, or successor.

M. "Mobilehome" means any mobilehome as defined under California Civil Code Section 798.3.

N. "Mobilehome Park" means an area of land located where two or more Mobilehome spaces are rented or leased out for Mobilehomes used as residences.

0. "Rent" means the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Rental Unit, including Tenant's access to and use of Housing Services. Rent includes, without limitation, the fair market value of goods accepted, labor performed, or services rendered. Rent does not include any of the following: security deposits, utility charges billed separately to the Tenant by the utility company, and pass-through fees and charges authorized pursuant to this Chapter.
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P. "Rental Agreement" means an agreement, oral, written, or implied, between a Landlord and Tenant for the use or occupancy of a Rental Unit and related Housing Services.

Q. "Rental Unit" means any dwelling unit, as defined under California Civil Code section 1940 subsection (c) located in the jurisdictional boundaries of the City of Bell Gardens and that is used or occupied for human habitation in consideration of payment of rent, whether or not the residential use is legally permitted, including Mobilehomes rented by the owner of the Mobilehome, and accessory dwelling units. "Rental Unit" also means a Mobilehome Park space located in the jurisdictional boundaries of the City of Bell Gardens.

R. "Residential Real Property" includes any parcel of land containing one or more dwelling units intended for human habitation.

S. "Service Reduction" means any decrease or diminution in the level of Housing Services provided by the Landlord on or after the effective date of this Chapter, including but not limited to, services the Landlord is required to provide pursuant to:

1. California Civil Code section 1941 et. seq.;

2. The Landlord's implied warranty of habitability, which cannot be contractually excluded or waived;

3. A Rental Agreement between the Landlord and the Tenant; and

4. The level of service as implied by the condition of improvements, fixtures, and equipment, and their availability for use by the Landlord at the time of execution of the Rental Agreement with the Landlord.

T. "Tenancy" means the lawful right or entitlement of a Tenant to use or occupy a Rental Unit. This includes a lease or a sublease.

U. "Tenant'' means a tenant, subtenant, lessee, sublessee, or any other person entitled, under the terms of a Rental Agreement to the use or occupancy of any Rental Unit.

5.62.030. Exemptions.
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A. This Chapter shall not apply to any Rental Unit expressly exempt pursuant to any provision of State or federal law, with the exception of the requirements of Section

5.62.090.

B. The following are specifically exempt from the provisions of this Chapter:

1. Any dwelling unit that has a certificate of occupancy or equivalent permit for residential occupancy issued after February 1, 1995.

2. Any dwelling unit that is alienable separate from the title to any other dwelling unit, including single family residences, condominiums and town homes, but excluding Mobilehomes offered for rent by the owner of the Mobilehome, or is a subdivided interest in a subdivision, as specified in California Business and Professions Code Section 11004.5 (b), (d) or (f).

3. Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low or moderate income, as defined in Health and Safety Code section 50093, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low or moderate income, as defined in Health and Safety Code section 50093 or comparable federal statutes, but excluding any dwelling unit for which a Landlord receives federal housing assistance vouchers issued under Section 8 of the United States Housing Act of 1937 line 9 (42 U.S.C. Sec. 1437f).

4. Owner-occupied residential real property containing no more than three (3) rental units in which the owner occupied one of the units as the owner's principal place of residence since the beginning of the tenancy, so long as the owner continues in occupancy. For purposes of this subsection:
a. The term "owner'' means a natural person who owns at least a 25% ownership interest in the residential real property.
b. An exemption under this subsection shall expire by operation of law when the owner ceases to reside on the property as their principal place of residence.
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5. Accommodations in hotels, motels, inns, tourist homes and boarding houses, and rooming houses, or other facilities, for which the City has received or is entitled to receive payment of transient occupancy tax pursuant to Chapter 3.24 of the Code (Transient Occupancy Tax) and California Civil Code section 1940 subdivision (b).

6. Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly (as defined in Health and Safety Code Section 159.2), or any other facility licensed by the State to provide medical care for residents.

C. Exemptions are not automatic but shall be granted by the Department upon application by the Landlord as set forth in Section 5.62.090.

5.62.040. Permitted Rent Increases for Covered Rental Units.

A. A Landlord shall not increase the Rent for a Covered Rental Unit by more than fifty percent (50%) of the change in CPI, or four percent (4%), whichever is lower.

For purposes of this Section, "change in CPI" means the percentage change in the Consumer Price Index over the previous 12-month period ending in April of each year.

B. A Landlord shall not impose more than one (1) Rent increase for a Covered Rental Unit in any 12-month period, calculated from the date the Rent increase takes effect, unless otherwise permitted pursuant to this Chapter.

C. Commencing ten (10) days after the effective date of this Chapter and no later than September 30 of each subsequent year, the Department shall announce the maximum allowable annual Rent increase _effective as of November 1 of that year, in accordance with the Department's procedures and guidelines.

D. A Landlord may impose an annual Rent increase for any Covered Rental Unit, as allowed in this Section, only after providing at least thirty (30) days written notice to the Tenant of the Rent increase pursuant to California Civil Code section 827.

E. A Landlord may impose an annual Rent increase only upon registering the Rental Unit with the City and paying any required annual registration fees pursuant to 9 of 48
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Section 5.62.090, and maintaining compliance with State and local laws and requirements.

F. A Landlord who does not impose an annual Rent increase or a portion of the permitted annual Rent increase waives that annual Rent increase or the remaining portion of that permitted annual Rent increase for the remainder of the Tenancy. A Landlord shall not bank any waived or unused permitted annual Rent increases for use in future years.

G. This Chapter does not supersede a Landlord's right to set the initial Rent for new tenancies under State law.

H. A Tenant of a Covered Rental Unit subject to this Section shall not enter into a sublease that results in a total Rent for the Rental Unit that exceeds the allowable Rent authorized by this Section. Nothing in this Section authorizes a Tenant to sublet or assign the Tenant's interest where otherwise prohibited I. A Tenant may refuse to pay a Rent increase which is in violation of this Chapter.

Such refusal to pay the unallowed increased amount in excess of permitted Rent charges shall be an affirmative defense in any action brought to recover possession of a Rental Unit or to collect the Rent increase owed.

5.62.050. Permitted Rent Increases for Below Fair Market Rent.

A. If the Landlord of a residential real property charges an existing Tenant Rent for a Covered Rental Unit that is less than 80% of Fair Market Rent for a Comparable Unit, upon approval of the Department, a Landlord may increase the Rent, in addition to the annual Rent increase allowed under Section 5.62.040, by an amount not to exceed three percent (3%) subject to the following:

1. The Department shall only approve adjustments to Rent increases under this subsection until the Rent equals or exceeds 80% of Fair Market Rent for a Comparable Unit.

2. The U.S. Department of Housing and Urban Development's Office of Policy Development and Research's (HUD PD&R) then most recently published Small Area Fair Market Rents (SAFMRs) calculated for the 10 of 48
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Bell Gardens Zip Code shall be used for determining Fair Market Rent.

In the event HUD PD&R ceases publishing such Small Area Fair Market Rent, the City Council, by resolution, may identify an alternative source of Fair Market Rent.

3. The Landlord files an application with the Department to request approval for a permitted below market rent increase in accordance with the Department's procedures and guidelines.

4. A Landlord may not increase the Rent under this Section until the Department approves the Landlord's application and the Landlord registers each affected Rental Unit pursuant to Section 5.62.090. Only one additional Rent increase may be approved in any 12-month period.

5. The Landlord shall provide Tenants with written notice of the Rent increase authorized by the Department.

6. Nothing in this Section shall be interpreted to authorize a Rent increase for a Covered Rental Unit in excess of the amount authorized pursuant to California Civil Code section 1947.12.

5.62.060. Capital Improvements Pass-Through Cost Recovery.

A. A Landlord may pass-through 50% of Capital Improvement costs to existing Tenants in Covered Rental Units in accordance with the provision of this Section.

B. Capital Improvements must be for the primary benefit, use and enjoyment of Tenants, cost-factored, and amortized over a useful life of at least five (5) years, and permanently fixed in place or relatively immobile and appropriate to the use of the rental property.

C. Capital Improvements eligible for pass-through cost recovery include, but are not limited to:

1. The addition, but not the replacement, of the following improvements to a Rental Unit or common areas of the building in which the Rental Unit is located: air conditioning, security gates and other security items, swimming pool, sauna or hot tub, fencing, children's play equipment permanently 11 of 48
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installed on the premises, and other similar improvements as determined by the Department.

2. Replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit pursuant to State or local law.

3. Abatement of hazardous materials, such as lead-based paint, mold or asbestos, in accordance with applicable federal, State, and local laws.

D. Capital Improvements cannot include regular maintenance or repairs from wear and tear, or be the result of a Landlord's failure to perform regular maintenance and repairs, or repairs covered by insurance.

E. Application Process.

1. A Landlord must apply to the Department for recovery of Capital Improvement costs, on a form approved by the Department, within one hundred eighty (180) days of completion of the Capital Improvement.

2. The pass-through application must contain the following information, and be accompanied by copies of relevant supporting documentation:
a. A description of the completed Capital Improvement;
b. A copy of all estimates, contracts, bills, invoices, and other documentation reasonably necessary to establish the cost of the Capital Improvement;
c. The proposed amortization period to be used based on the Department's procedures and guidelines, if the period differs from 60 months;
d. A list of Tenants that will be affected by or benefit from the Capital Improvement;
e. The formula used to calculate the pro rata share of each Tenant; f. The monthly cost to each affected or benefiting Tenant; g. The commencement and completion dates of the Capital Improvement; and
h. Such other information as the Department may reasonably request. 12 of 48
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3. Within five (5) calendar days after submission of the application with the Department, the Landlord shall serve each affected Tenant with notice of the application via personal service or certified mail return receipt requested. The notice must include a copy of the application.

4. Within ten (10) calendar days after submission of the application, the Landlord shall file with the Department a proof of service signed under penalty of perjury stating that a copy of the application was served upon the affected Tenant. Such proof of notice is required before the application will be reviewed by the Department.

F. Landlord may not pass-through costs of Capital Improvements to Tenants until the Department approves the Landlord's application and the Landlord registers each affected Rental Unit pursuant to Section 5.62.090.

G. No pass-through cost-recovery shall be approved in an amount that would exceed five percent (5%) of the Rent in effect at the time the pass-through application is filed with the Department. If the total amount of calculated pass-through costs would result in an increase that exceeds five percent (5%), the pass-through cost amortization period may be extended beyond the established amortization period to allow the Landlord to recover eligible Capital Improvement costs while not exceeding the maximum increase authorized by this subsection.

H. A Landlord shall provide written notice of an approved pass-through cost to Tenants in accordance with California Civil Code section 827 and the notice shall be delivered at least thirty (30) days before the approved pass-through cost takes effect.

I. The approved pass-through cost should appear as a separate line item on a Rent statement along with the end date of the amortization period and any remaining pass-through balance. An approved pass-through cost is not considered Rent for purposes of this Chapter.

J. Pass-through cost recovery applications will be considered and determined by the Director in accordance with guidelines and procedures established by the 13 of 48
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Department; and the Director's determination may be appealed to a Hearing Officer in accordance with the procedures set forth in Section 5.62.120.

5.62.070. Petition for Rent Adjustment.

A. Landlord's Application for Rent Increase. A Landlord may file an application with the Department to request an increase in Rent for a Covered Rental Unit in excess of that which is permitted under Sections 5.52.040 and 5.62.050 to in good faith ensure a fair and reasonable return on the Landlord's investment.

1. Presumption. It shall be a rebuttable presumption that the annual net operating income earned by a Landlord, and Rent increases allowed under Sections 5.62.040 and 5.62.050, provide the Landlord with a fair and reasonable return on their investment. A Landlord shall have the burden to prove the necessity of any additional Rent increase necessary to earn a fair and reasonable return.

2. Nothing in this Section shall be interpreted to authorize a Rent increase for a Covered Rental Unit in excess of the amount authorized pursuant to California Civil Code section 1947.12.

3. Approval of the Landlord's application for Rent increase may become effective only after all of the following:
a. A Landlord has provided written notice to the Tenant of the approved Rent increase for the Covered Rental Unit in accordance with California Civil Code section 827; and
b. A Landlord has registered each Rental Unit in the rental property, and is current on payment of registration fees, pursuant to Section

5.62.090.

4. Review and Approval of Application for Rent Increase. a. The Department shall consider the following factors, as well as any other relevant factors, in reviewing the application and making its determination, and no one (1) factor shall be determinative. i. Changes in the CPI.
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ii. The rental history of the affected Covered Rental Unit(s) and the rental property, including the Base Rent and pattern of past Rent increases or decreases;
iii. The Landlord's income and expenses as they relate to the rental property.
iv. Increases or decreases in property taxes.
v. The history or any prior hearings or determinations on an application for Rent increase by Landlord.
vi. The addition of Capital Improvements on the rental property. vii. The physical condition of the affected Covered Rental Unit(s) and building, including the quantity and quality of
maintenance and repairs performed during the preceding
twelve (12) months, as well as the long-term patterns of operating, maintenance, and Capital Improvement
expenditures.
viii. The need for repairs caused by circumstances other than ordinary wear and tear.
ix. Any increase or decrease of Housing Services since the last Rent increase.
x. Any existing Rental Agreement lawfully entered into between the Landlord and the Tenant.
xi. A decrease in net operating income.
xii. A fair and reasonable return on the building prorated among the Rental Units in the building.
xiii. If Landlord received Rent in violation of this Chapter or has otherwise failed to comply with this Chapter.
b. The Director may approve or deny an application for Rent increase beyond that which is permitted under Section 5.62.040 and 5.62.050 and make the following determinations, with written findings in support thereof, in compliance the provisions of this Chapter:
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i. The Department determines the Rent increase in the amount requested by Landlord is necessary and appropriate to ensure the Landlord receives a fair and reasonable return on the Landlord's investment, and will not cause an undue financial burden on the affected Tenant.
ii. The Department determines a lesser Rent increase than the amount requested by Landlord more appropriately ensures a fair and reasonable return on the Landlord's investment and will not cause an undue financial burden on the affected Tenant.
iii. The Department determines no additional Rent increase is necessary and appropriate to ensure the Landlord receives a fair and reasonable return on the Landlord's investment. c. Nothing in this Section shall be interpreted to authorize a Rent increase for a Covered Rental Unit in excess of the amount authorized pursuant to California Civil Code section 1947.12.

5. Notices Upon Filing Application for Rent Increase. Within five (5) calendar days after submission of an application for Rent increase with the Department, the Landlord, attheir own expense, shall provide written notice of said application to each affected Tenant via personal service or certified mail return receipt requested.

B. Tenant Application for Adjustment. A Tenant of a Covered Rental Unit may file an application for Rent adjustment with the Department for its determination in order to in good faith ensure the Tenant receives any adjustment they may be entitled to because of a Landlord's potential violation(s) of this Chapter. A Tenant must file such application for Rent adjustment within one hundred eighty (180) days from the date the Tenant knew, or reasonably should have known, of the Landlord's potential violation(s).

1. Unlawful Rent and/or Fees or Charges. A Tenant may file an application for adjustment with the Department due to a Landlord's demand for Rent, fees, 16 of 48
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or charges that may be in excess of that permitted for a Covered Rental Unit.

2. Failure to Maintain Habitable Premises. A Tenant may file an application for adjustment with the Department to request a refund of, or decrease in, Rent proportional to a Landlord's potential failure to maintain the Covered Rental Unit as a habitable premise in accordance with applicable laws or the Rental Agreement.
a. A Landlord shall not be liable to a Tenant for failure to maintain habitable premises if the Tenant caused the condition that is the subject of the application.

3. Decrease in Housing Services. A Tenant may file an application for adjustment with the Department for a Service Reduction in Housing Services, without a corresponding reduction in Rent, which may be considered an increase in excess of permitted Rent.

4. Prior to filing an application for adjustment with the Department, a Tenant shall provide the Landlord all of the following:
a. Written notice identifying the potential violation(s) of excess Rent, fees or charges, failure to maintain habitable premises and/or decrease in housing services; and
b. A reasonable opportunity for the Landlord to correct the issues.

5. Review and Determination of Application for Adjustment. The Department shall consider the following factors, as well as any other relevant factors, in making its determination and no one (1) factor shall be determinative. a. Increases or decreases in Rent or Housing Services since the effective date of this Chapter,
b. The pattern of recent Rent or Housing Service increases or decreases.
c. Whether the Landlord has received payment in excess of the maximum allowable Rent, fees, or charges permitted by this Chapter or has otherwise failed to comply with this Chapter.
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d. When and how the Service Reduction was first identified by the Tenant and when and how the Landlord was notified of the alleged Service Reduction, orally, or in writing, and Landlord's response to such notice and whether Housing Services were reinstated or restored by the Landlord, and if so, when and how.
e. Whether any habitability violations stated by the Tenant in the application was improved or corrected, and if so, when and how. f. The status of the habitability issues as of the date the application is signed.

6. Notice upon Filing Application for Adjustment. Within five (5) calendar days after submission of an application for adjustment with the Department, the Tenant shall provide written notice of said application to the Landlord via personal service or certified mail return receipt requested.

C. Application Submittal to Department for Rent Increase or Adjustment. Upon receipt of an application, the Department shall review and evaluate whether there should be a Rent increase or adjustment in accordance with this Section and the Department's procedures and guidelines.

1. The application shall be on a form approved by the Department, signed under penalty of perjury, and must be accompanied by an application fee, if any, and must include the following:
a. The specific Rent increase or adjustment requested; and b. Copies of any books, records, papers, or other financial information relevant to the review of the application; and
c. Other documentation reasonably required by the Department relevant to the application.

2. Application Fees. The Department may set a reasonable application fee to be paid by the applicant at the time of the filing based on the administrative expenses incurred in reviewing and processing the application.

3. The Department shall have the authority to deem an application complete. 18 of 48
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D. Right of Assistance. All parties to an application for Rent adjustment may seek assistance from attorneys or any other person designated by said parties.

E. Consolidation. Applications for Rent adjustment pertaining to Tenants in the same building or rental property may be consolidated for determination at the election of the Department.

5.62.080. Security Deposit.

A. Unless otherwise prohibited by State law or the terms of a written rental agreement, a Landlord may increase a Tenant's security deposit for a Covered Rental Unit at the same time the Landlord seeks to increase the Rent under sections 5.62.040. Any increase in the security deposit shall be clearly stated in the written notice of the annual rent increase and shall not exceed the maximum amount authorized by State law.

8. As used in this Section, security deposit means any "security" as defined in California Civil Code section 1950.5.

5.62.090. Rental Unit Registration.

A. On or before September 30, 2023, and on or before September 30 of each subsequent year, a Landlord must register with the Department each Rental Unit that is rented or available for Rent for a term exceeding thirty (30) consecutive days by filing a rental registration in a form approved by the Department. After initial Rental Unit registration, a Landlord shall notify the Department and update the rental registration within thirty (30) days of the start of a new tenancy or any subsequent change in tenancy or ownership.

8. Registration must include, but is not limited to, the following information:

1. Property information, including address, year built and certificate of occupancy date.

2. Rent for each Rental Unit in the rental property at the time of registration and the date and amount of the last Rent increase.

3. Ownership information for the rental property.
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4. The number of total Rental Units in the rental property.

5. The number of bedrooms and bathrooms for each Rental Unit

6. Tenant information, including names and move-in dates.

7. A description of Housing Services.

8. Any additional information reasonably required by the Department to implement this Chapter.

C. Registration Fee. A Landlord must pay an annual registration fee for each Rental Unit registered on or after September 30, 2023. The registration fee shall be established by resolution of the City Council. Such fees are intended to recover the City's reasonable costs to implement, administer and enforce its rent stabilization and eviction protection regulations as set forth in Chapters 5.62 and Chapter 5.63 of the Code. The registration fee established by this subsection shall be waived for any Rental Unit in an owner-occupied residential real property containing no more than four (4) dwelling units in which the owner occupies one of the units as the owner's principal place of residence, so long as the owner continues in occupancy. For purposes of this subsection:

1. The term "owner" means a natural person who owns at least a 25% ownership interest in the residential real property.

2. A waiver under this subsection shall expire by operation of law when the owner ceases to reside on the property as their principal place of residence.

D. Registration Fee Pass-Through. A Landlord may recover fifty percent (50%) of a registration fee from the Tenant. A Landlord may only collect one annual registration fee pass-through cost at a time and must also meet the following requirements to pass-through this registration fee:

1. Timely and accurately submits an annual registration for each Rental Unit in the rental property;

2. Lists the registration fee pass-through cost as a separate line item on the monthly obligation(s) statement;

3. Provides Tenant with thirty (30) days' notice before collecting any registration fee pass-through cost; and
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4. A Tenant's payment to the Landlord for the registration fee pass-through cost is paid in twelve (12) equal, monthly installments, unless otherwise agreed to by the Tenant.

E. Application for Rental Unit Exemption. Any person with an ownership interest in a Rental Unit may claim an exemption from this Chapter by filing with the Department an application of exemption on a form approved by the Department.

5.62.100. Notices to Tenants.

A. Mandatory Notices to Tenants. Landlords must provide to each Tenant, prior to, or at the time of agreeing to rent or lease a Covered Rental Unit, a notice of Tenant rights under this Chapter. The Department shall publish a form notice of Tenant rights in English and other frequently spoken languages. Landlords must provide the form notice in the following circumstances.

1. When entering into a Rental Agreement, by including a copy of the form notice as an exhibit or attachment to the written Rental Agreement;

2. When renewing a Rental Agreement; and

3. When providing notice of a Rent increase or decrease in a Covered Rental Unit

8. Notice Regarding Potential Pass-Through Costs and Fees. A Landlord shall include language in the Rental Agreement that Tenant may be subject to passthrough costs and fees that have been reviewed and approved by the Department.

C. If the Rental Agreement is negotiated or written in a language other than English, the Landlord must also provide the form notice of Tenant rights in English and the language in which the Rental Agreement was negotiated or written.

5.62.110. Enforcement.

A. Enforcement Authority. The Department is authorized to take appropriate steps it deems necessary to administer and enforce this Chapter.

B. The Director of the Department, or designee, may develop and publish procedures and guidelines to aid in the implementation of this Chapter. 21 of 48
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5.62.120. Administrative Review and Appeals.

A. Administrative Review.

1. The Department shall review and evaluate applications pursuant to this Chapter and issue a notice of decision in accordance with its procedures and guidelines.

2. The Department may request documents, interview witnesses and affected parties, and gather necessary evidence to review and make appropriate conclusions and findings.

B. Appeal. Any party dissatisfied by the Department's final decision pursuant to this Chapter may request an appeal of the Department's decision to a Hearing Officer, unless otherwise prohibited by this Chapter. The Department's administrative record shall be reviewable by the Hearing Officer.

C. Time Limit. A party must file an appeal in writing before the Department within thirty (30) of the Department's final decision. The Hearing Officer shall have no authority to consider matters not filed within thirty (30) days of the Department's final decision.

D. Filing of Appeals. An appeal shall be filed with the Department, on the prescribed form, along with any accompanying appeal fee, and shall state specifically whether the basis of the appeal is that:

1. The Department's determination or interpretation is not in accord with the purposes of this Chapter;

2. There was an error or abuse of discretion by the Department;

3. The administrative record includes inaccurate information; or

4. The Departmentls decision is not supported by the administrative record.

E. Procedures for Appeals.

1. Hearing Dates. A hearing on a request for appeal will be scheduled before a hearing officer for a date no sooner than fifteen (15) days and no later than sixty (60) days after receipt of the request for appeal, unless the hearing officer determines that good cause exists for an extension of time. 22 of 48
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Upon setting the hearing date, the hearing officer shall send written notice to the appealing party of the date, time and place set for the hearing.

2. Public Hearing. The appeal hearing shall be conducted at a hearing open to the public. At the hearing, the Hearing Officer shall review the record of the decision and hear testimony of the party requesting the appeal, representatives of the Department, and any other interested party.

3. Application and Materials. At an appeal hearing, the Hearing Officer shall consider only the administrative record that was the subject of the Department's final decision.

F. Decision and Notice.

1. After the hearing, the Hearing Officer shall either:
a. Affirm, modify, or reverse the Department's decision and specify the reasons for its decision; or
b. Refer the matter back to the Department for further review.

2. Decisions shall be rendered within thirty (30) days of the close of the hearing. If the Hearing Officer fails to act within thirty (30) days of the close of the hearing, the Department's decision shall be deemed affirmed.

G. The Hearing Officer shall mail the Hearing Officer's decision to the parties within ten (10) days after it is rendered.

H. Final decision. The decision of the Hearing Officer shall be final and not subject to further appeal.

I. Judicial Review of Hearing Officer Decision. Any person directly aggrieved by an administrative decision of a hearing officer pertaining to a request for appeal of a Director's decision under this Chapter, may seek judicial review in the Court pursuant to Government Code Section 53069.4 and/or Code of Civil Procedure Sections 1094.5 and 1094.6.

5.62.130. Administrative Citations.

A. Administrative Citation. Any Landlord or Tenant who violates any provision of this Chapter, or Department's procedures and guidelines, is subject to an 23 of 48
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administrative fine as set in a schedule of fines adopted by resolution by the city council as provided in Chapter 1.16 of the Code.

B. Remedies are Cumulative. Each day that a violation continues shall constitute a separate and distinct offense for which an administrative fine may be imposed. The remedies set forth in this section are cumulative and in addition to any other penalty provided by law, including any remedies which may be sought in a civil action. The provisions of this Chapter shall not be construed as limiting any party's right to obtain relief to which he or she may be entitled at law or in equity.

C. Notices of Violation and Administrative Fine. If the Department determines that a Landlord or Tenant has violated this Chapter, the Department may issue notices of violation and administrative fine in accordance with the authority and procedures set forth in Chapter 1.16 of the Code.

D. Administrative Appeals and Judicial Review.

2. Judicial Review of Hearing Officer Decision. Any Landlord or Tenant may seek judicial review of a hearing officer's decision pertaining to the imposition of an administrative fine in accordance Chapter 1.16 of the Code.

5.62.140. Remedies.

A. Civil Liability. Any Tenant, or any other person or entity acting on behalf of the Tenant who will fairly and adequately represent the Tenant's interest, including the City, is authorized to bring a civil action and/or proceeding in a court of competent jurisdiction for violation of this Chapter, for civil penalties, injunctive, declaratory and other equitable relief, restitution and reasonable attorneys' fees and costs and may take such other steps as necessary to enforce this Chapter. The court may award reasonable attorneys' fees and costs to a Landlord who prevails in any such action if the court determines that the Tenant's action was frivolous. 24 of 48
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8. Civil Penalty. Any person violating any of the provisions, or failing to comply with any of the requirements of this Chapter, may be liable for a civil penalty not to exceed One Thousand Dollars ($1,000) for each violation.

C. Criminal Penalty. Any person violating any of the provisions or failing to comply with any of the requirements of this Chapter, shall be guilty of a misdemeanor and punished by a fine of not more than One Thousand Dollars ($1,000), or by imprisonment in the county jail for a period of not more than six (6) months, or by both.

D. Defense to Eviction. A Tenant may assert as an affirmative defense a Landlord's failure to comply with the provisions of this Chapter in any action by a Landlord to recover possession of a Rental Unit.

E. Each violation of any provision of this Chapter, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense.

F. The above remedies are not exclusive and do not preclude the City or any Tenant from seeking other remedies or penalties provided by applicable law.

5.62.150. Waiver. Any waiver of rights under this Chapter shall be void as contrary to public policy.

5.62.160. Severability. If any provision of this Chapter or the application thereof to any person, property, or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this Chapter that can be given effect without the invalid provision(s) or application, and to this end, the provisions of this Chapter are declared to be severable.

SECTION 3. Chapter 5.63 of Title 5 of the Bell Gardens Municipal Code is hereby added to read as follows:

Chapter 5.63
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Sections:

5.63.010

5.63.020

5.63.030

5.63.040

5.63.050

5.63.060

5.63.070

5.63.080

5.63.090

5.63.100

5.63.110

5.63.120

TENANT EVICTION PROTECTIONS
Purpose and Applicability
Definitions
Termination of Tenancy
Relocation Assistance
Tenant Buyout Agreements
Retaliatory Eviction and Anti-Harassment
Notices to Tenants
Enforcement
Administrative Citations
Remedies
Waiver
Severability

5.63.010. Purpose and Applicability.

A. The purpose of this Chapter is to reasonably regulate just cause evictions so as to be more protective than Civil Code section 1946.2.

B. This Chapter shall apply to any Tenancy after at least one Tenant has continuously and lawfully occupied a Rental Unit for twelve (12) months or more.

C. This Chapter regulates evictions for certain tenancies. It requires landlords to provide relocation assistance for certain no-fault evictions, prohibits retaliation and harassment, and provides for the implementation and enforcement of this Chapter.

5.63.020. Definitions. For the purposes of this Chapter, unless the context requires otherwise, the following definitions shall apply. 26 of 48
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A. "Buyout Agreement" means a written agreement between a Landlord and a Tenant as provided in Section 5.63.050 by which a Tenant, typically in consideration for monetary payment, agrees to vacate a Rental Unit.

B. "City" means the City of Bell Gardens.

C. "Code" means the City of Bell Gardens Municipal Code.

D. "Department" means the Community and Economic Development Department of the City of Bell Gardens, or other Department designated by the City Council to administer the provisions of this Chapter.

E. "Director'' means the Director of the Department, or their designee.

F. "Ellis Act" means California Government Code sections 7060 - 7060.7.

G. "Housing Services" means all services provided by the Landlord related to the use or occupancy of a Rental Unit, including, water, heat, utilities, insurance, maintenance, repairs, painting, elevator service, laundry facilities, janitorial service, refuse removal, furnishings, window shades and screens, parking, storage, security services, recreational areas, right to have specified number of tenants or occupants, allowing pets, communications technologies (internet, cable and satellite services), and any other benefit, privilege or facility that has been provided by the Landlord to the Tenant with use or occupancy of a Rental Unit. Services to a Rental Unit shall include a proportionate part of services provided to common facilities of the building in which a Rental Unit is contained.

H. "Landlord" means an owner, lessor, sublessor, or any other person entitled to offer any Rental Unit for Rent or entitled to receive Rent for the use and occupancy of a Rental Unit, and the agent, representative, or successor of any of the foregoing.

I. "Landlord's Family Member" means a spouse, domestic partner, child, grandchild, parent, or grandparent of a Landlord who is a natural person whose name is on the title of the property.

J. "Mobilehome" means any mobilehome as defined under California Civil Code Section 798.3.
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K. "Mobilehome Park" means an area of land located where two or more Mobilehome spaces are rented or leased out for Mobilehomes used as residences.

L. "Rent" means the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Rental Unit or Mobilehome Park space located in the jurisdictional boundaries of the City of Bell Gardens, including Tenant's access to and use of Housing Services. Rent includes, without limitation, the fair market value of goods accepted, labor performed, or services rendered. Rent does not include any of the following: security deposits, utility charges billed separately to the Tenant by the utility company, and pass-through fees and charges authorized pursuant to this Chapter.

M. "Rental Agreement" means an agreement, oral, written, or implied, between a Landlord and Tenant for the use or occupancy of a Rental Unit and related Housing Services.

N. "Rental Unit" means any dwelling unit, as defined under California Civil Code section 1940 subsection (c) located in the jurisdictional boundaries of the City of Bell Gardens and that is used or occupied for human habitation in consideration of payment of rent, whether or not the residential use is legally permitted, including Mobilehomes rented by the owner of the Mobilehome, and accessory dwelling units.
0 . "Residential Real Property" includes any parcel of land containing one or more dwelling units intended for human habitation.

P. "Tenancy" means the lawful right or entitlement of a Tenant to use or occupy a Rental Unit. This includes a lease or a sublease.

Q. "Tenant" means a tenant, subtenant, lessee, sublessee, or any other person entitled, under the terms of a Rental Agreement to the use or occupancy of any Rental Unit.

5.63.030. Termination of Tenancy.
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A. No Landlord shall terminate a Tenancy of an occupied Rental Unit after a Tenant has continuously and lawfully occupied the Rental Unit for twelve (12) months or more unless the Landlord can demonstrate either a For Cause or No-Fault termination.

B. When terminating a Tenancy either For Cause or No-Fault, a Landlord must comply with all of the following:

1. The Landlord must serve a written notice to the Tenant in accordance with California Civil Code sections 1946 through 1946.5 that states the Landlord will terminate the Tenancy, indicates at least one For Cause or No-Fault reason for termination in reasonable detail, and includes any other information required by federal or State law; and

2. The Landlord has not accepted and will not accept Rent or any other consideration in return for the continued use of the Rental Unit beyond the term of the terminated Tenancy in compliance with California Civil Code sections 1945 through 1946.5; and

3. The Landlord qualifies the termination as For Cause or No-Fault, as specified in this Section; and

4. If the termination is a No Fault termination, the Landlord has provided the Tenant with the notice of relocation assistance required by Section

5.63.040.

5. The Landlord has submitted to the Department, within five (5) days after service of the notice of termination on the Tenant, a true and accurate copy of the Landlord's written notice of termination, and proof of such service, signed under penalty of perjury, on the Tenant. The Landlord shall maintain proof of service to the Department as evidence that the Landlord has complied with this Section.

C. For Cause Termination of Tenancy. If a Landlord can show any of the following circumstances with respect to a termination of Tenancy in a Rental Unit, the termination qualifies as a For Cause Termination.
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1. Failure to Pay Rent. Tenant failed to pay Rent within three (3) days of written notice being served on Tenant by Landlord demanding payment as provided in paragraph (2) of California Code of Civil Procedure Section 1161.

2. Violation of Material Term of Rental Agreement. Tenant has continued to violate a material term of the Rental Agreement as provided in California Code of Civil Procedure section 1161 subdivision (3), after written notice to cease, and did not cure such violation within ten (10) days after receiving written notice from the Landlord of such violation.

3. Waste. A Tenant committed waste as described in California Code of Civil Procedure section 1161 subdivision (4).

4. Nuisance or Illegal Purpose. Tenant has maintained, committed, or permitted the maintenance or commission of a nuisance or used the Rental Unit for an illegal purpose as provided in California Code of Civil Procedure section 1161 subdivision (4) including:
a. Any crime or act of violence committed by a Tenant of a Rental Unit which involves use of a gun or a deadly weapon, or inflicts serious bodily injury and for which a police report has been filed; b. Any threat of violent crime or violence, which includes any statement made by a Tenant, or at the Tenant's request, by the Tenant's agent, to any person who is on the property where the Rental Unit is located, threatening to commit a crime or violence which will result in death or serious bodily injury to another person, with the specific intent that the statement is to be taken as a threat, even if there is no intent of actually carrying it out, when on its face and under the circumstances in which it is made, it is unequivocal, immediate, and specific as to convey to the person threatened, a gravity of purpose and an immediate prospect of execution of the threat, and thereby causes that person reasonably to be in sustained fear for his or her own safety or for his or her immediate family's safety; or
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c.Tenant has created or is maintaining a dangerous condition or an unsanitary condition that endangers health, safety and welfare or physically damages the unit beyond normal wear and tear and that condition has not been promptly abated or repaired after written notice to the Tenant from the Landlord and the passage of a reasonable cure period.

It shall be an affirmative defense to an action for possession of a Rental Unit under this Subsection 5.63.030.E.4 if a court determines that: (i) The Tenant or the Tenant's household member is a victim of an act or acts that constitute domestic violence or sexual assault or stalking; and (ii) The notice of For Cause termination is substantially based upon the act or acts constituting domestic violence or sexual assault or stalking against the Tenant or a Tenant's household member, including but not limited to an action for possession based on complaints of noise, disturbances, or repeated presence of police.

5. Failure to Sign Substantially Similar Lease. The Tenant has refused to execute a written extension or renewal of a Rental Agreement upon expiration of a prior Rental Agreement, after written request or demand from the Landlord, but only if the provisions are substantially similar and the additional term is of similar duration to the prior written Rental Agreement, and is consistent with federal, State, and local laws. For purposes of this Subsection, the Landlord's written request or demand must be received no later than sixty (60) days before final day of Tenancy of the prior Rental Agreement.

6. Assignment or Subletting in Violation of Lease. The Tenant has assigned or sublet the Rental Unit in violation of the Rental Agreement, as provided in California Code of Civil Proc;:edure section 1161 (4).

7. Refuse Access. Tenant has continued to refuse, after Landlord has provided a written request, reasonable access to the Rental Unit by the Landlord for the purpose of making necessary repairs or improvements in 31 of 48
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accordance with California Civil Code Sections 1101.5 and 1954 and California Health and Safety Code Sections 13113. 7 and 17926.1.

8. Failure to Vacate After Termination of Employment. Tenant was employed by the Landlord to serve as a resident manager or other employee, was provided with the Rental Unit as part of or as a condition of the employment and the employment has been terminated. This provision shall not apply to any Tenant whose Tenancy in the building or complex housing the Rental Unit commenced prior to assuming managerial responsibilities or whose status as a Tenant commenced prior to their status as a resident manager.

9. Failure to Vacate After Termination of Lease. A Tenant's failure to timely deliver possession of the Rental Unit after: (i) providing the Landlord written notice as provided in Civil Code section 1946 of the Tenant's intention to terminate a lease; or (ii) making a written offer to surrender, that is accepted in writing by the Landlord, but the time specified in that written notice as described in Code of Civil Procedure section 1161 (5) has expired.

D. No-Fault Termination of Tenancy. If a Landlord can show any of the following circumstances with respect to a termination of Tenancy in a Rental Unit, the termination qualifies as a No-Fault termination.

1. A Landlord seeks in good faith to recover possession in order to imminently:
a. Demolish the Rental Unit
b. Withdraw the Rental Unit permanently from rental housing use pursuant to the Ellis Act and other applicable State laws.

2. A Landlord seeks in good faith to recover possession of a Rental Unit for the use and occupancy by Landlord or Landlord's Family Member as the principal residence. Said Rental Unit must be occupied as the principal residence within ninety (90) days of the Tenant household vacating the Rental Unit, and the Rental Unit must continue to be occupied as the principal residence of Landlord or Landlord's Family Member for at least three (3) years, unless extenuating circumstances exist. 32 of 48
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a. If the Rental Agreement was entered into on or after the effective date of this Chapter, this Subsection 5.63.030. D.2 shall apply only if the Tenant agrees, in writing, to the termination, or if a provision of the Rental Agreement allows the Landlord to terminate the Rental Agreement if the Landlord, or Landlord's Family Member unilaterally decides to occupy the Rental Unit.
b. A Landlord must provide the Tenant sixty (60) days' written notice that the Landlord intends to terminate the Tenancy.
c. Owner-Occupancy Disclosure.
i. Not less than sixty (60) days prior to the final date of the Tenancy, in addition to any notice required by California Civil Code section 827, the Landlord must disclose to the
Department the name(s) of the eligible individual(s) who will occupy the Rental Unit, and the relationship of said
individual(s) to the Landlord.
ii. The Department may contact Landlord during the three (3) year occupancy time frame to confirm that the Landlord or Landlord's Family Member resides in the recovered Rental Unit(s), and may obtain written verification of residency. d. A Landlord may not terminate a Tenancy under this Section if any of the following apply, unless the Landlord or Landlord's Family Member who will reside in the Dwelling Unit is similarly situated as the Tenant or Tenant's household members who are being
displaced:
i. any Tenant in the Rental Unit has continuously resided in the Rental Unit for at least five (5) years, and a member of Tenant's household is either: (i) 62 years of age or older; or (ii) disabled as defined in Section 12955.3 of the California Government Code or handicapped as defined in Section
50072 of the California Health and Safety Code;
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ii. any Tenant in the Rental Unit or member of Tenant's household is terminally ill as certified by a treating physician licensed to practice in the State of California; or
iii. any Tenant in the Rental Unit is a low-income tenant (lowincome tenant means a household whose income does not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to
Section 8 of the United States Housing Act of 1937, or as otherwise defined in California Health and Safety Code
Section 50079.5).
e. Tenant's Right of First Return.
i. If a Landlord or Landlord's Family Member ceases occupation of the Rental Unit within three (3) years after the final date of Tenancy, the Tenant of a Rental Unit is entitled to receive notice of the first right to return to rent the same unit at the Rent previously charged plus any annual Rent increases
allowed under Chapter 5.62 of the Code.
ii. Nothing in this Section shall be construed to relieve the Landlord of the obligation to directly contact the former Tenant and to advise the Tenant that the recovered Rental Unit will again be offered for Rent.

3. A Landlord seeks in good faith to recover possession to comply with any of the following: (i) An order issued by a government agency or court relating to habitability that necessitates vacating the Rental Unit; (ii) An order issued by a government agency or court to vacate the Rental Unit; or (iii) A local ordinance that necessitates vacating the Rental Unit. If it is determined by any government agency or court that the Tenant is at fault for the condition or conditions triggering the order or for the need to vacate under this Subsection, the Tenant shall not be entitled to relocation assistance.

E. All No-Fault terminations of Tenancy are eligible for relocation assistance. 34 of 48
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5.63.040. Relocation Assistance.

A. Permanent Relocation Assistance. When relocation assistance must be paid to Tenants who are evicted from their Rental Unit pursuant to Section 5.63.030, the Landlord must make the relocation assistance payment in accordance with this Section. The Landlord must provide written notice to the Tenant of the Tenant's entitlement to permanent relocation assistance at the same time the Landlord serves a notice of termination of Tenancy.

1. The Landlord shall pay a relocation assistance amount equal to three (3) times the Tenant's monthly Rent in effect when the Landlord served the notice to terminate the tenancy.

2. If any Tenant residing in the Rental Unit from which the Tenants are to be displaced includes a Qualified Tenant, then all Tenants living in the Rental Unit are collectively entitled to additional relocation assistance as follows:
a. The Landlord shall pay an additional relocation assistance amount equal to one (1) times the Tenant's monthly Rent in effect when the Landlord served the notice to terminate the tenancy.
b. For purposes of this Subsection, Qualified Tenant means any Tenant who:
i. Is sixty-two (62) years of age or older, disabled, as defined in Section 12955.3 of the California Government Code or
handicapped as defined in Section 50072 of the California Health and Safety Code;
ii. Has one or more dependent children under the age of eighteen (18) residing in the Rental Unit;
iii. Meets the income limits for a "lower-income household" as defined in California Health and Safety Code section 50079.5; or
iv. Has continuously resided in the Rental Unit for five (5) years or more.
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The Tenant shall notify Landlord within ten (10) days of receiving the termination of tenancy notice, if any of the Tenants living in the Rental Unit from which the Tenants are to be displaced includes a Qualified Tenant, along with any reasonable proof of eligibility.

3. Permanent relocation assistance payments must be paid directly to the Tenant.
a. If a Rental Unit is occupied by two (2) or more Tenants, then each Tenant of the Rental Unit shall be paid a pro-rate share of the relocation assistance payment.
b. Landlord shall pay one-half of the relocation assistance due no later than fifteen (15) days following service of the termination of tenancy and the balance due no later than five (5) business days after the Tenant has vacated the Rental Unit. If a Tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance provided pursuant to this Chapter shall be recoverable as damages in an action to recover possession.

B. Temporary Relocation Assistance. A Landlord must provide temporary relocation assistance to Tenants of a Rental Unit who are temporarily displaced due to repairs, rehabilitation of a Rental Unit, health and safety violations, or other work or activities that will make the Rental Unit an untenantable dwelling, as defined in California Civil Code Section 1941.1, or will expose the Tenant to toxic or hazardous materials, or that cannot otherwise be completed while the Tenant remains in the Rental Unit.

1. Thirty (30) Days or Less. A Landlord must provide the Tenant a per-diem payment if the Tenant will be temporarily displaced for thirty (30) days or less.

2. Thirty-One (31) Days or More. A Landlord must provide the Tenant either a per-diem payment or comparable temporary accommodations, if available. 36 of 48
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3. Per-Diem Payment.
a. Per-diem payment will be based on the Federal General Services Administration per-diem rate for lodging in the County of Los Angeles, which is updated on a yearly basis, unless otherwise agreed upon by the Landlord and Tenant, and may include any applicable transient occupancy taxes.
b. Upon mutual agreement by the Landlord and Tenant, per-diem payments may be paid directly to the Tenant, or in the event of a hotel, motel or short-term rental accommodations, directly to the hotel, motel or short-term rental.

4. Temporary Relocation Assistance payments will be made on a pro-rata basis to the eligible Tenant household.

5. Temporary Hotel or Motel Accommodation. If relocation is to a hotel or motel, the Landlord must provide a hotel or motel accommodation which is safe, sanitary, and unless otherwise agreed upon by the Landlord and Tenant, within a reasonable distance of the Tenant's Rental Unit.

6. The temporary displacement and relocation of a Tenant pursuant to this Section 5.63.040.B shall not terminate the Tenancy of the displaced Tenant.

The displaced Tenant shall have the right to reoccupy his or her Rental Unit upon the completion of the work necessary for the Rental Unit to comply with housing, health, building or safety laws or any government order and the Tenant shall retain all rights of Tenancy that existed prior to the dis placement.

7. Nothing in this Section 5.63.040.B shall be construed as authorizing a Landlord to require a Tenant to vacate a unit, except as permitted under federal, state, or local law.

C. No Waiver. A Tenant cannot waive his or her right to receive relocation assistance required by this Chapter.
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D. Any action brought by a Tenant for a violation of this Section must be brought in a court of competent jurisdiction. No administrative remedy need be exhausted prior to filing suit pursuant to this Section.

5.63.050. Tenant Buyout Agreements.

A. Landlord's Disclosure Prior to Buyout Offer. At the time a proposed buyout agreement is provided, the Landlord shall provide each Tenant in the Rental Unit a written disclosure, on a form approved by the Department, in English and in the Tenant's primary language if other than English translated at the Landlord's expense, that shall include all of the following:

1. A statement that the Tenant has a right not to enter into buyout negotiations or a buyout agreement;

2. A statement that the Tenant may choose to consult with an attorney before entering into a buyout agreement;

3. A statement that the Tenant may rescind the buyout agreement for up to thirty (30) days after it is fully executed;

4. A statement that the Tenant may contact the Department for information about other buyout agreements in the Tenant's neighborhood and other relevant information;

5. Any other information required by the Department consistent with the purpose and provisions of this Section; and

6. A space for each Tenant to sign and write the date the Landlord provided the Tenant with the disclosure.

B. Requirement for Buyout Agreements. The buyout agreement shall:

1. Be in writing in English and the language in which the buyout agreement was negotiated if other than English translated at the Landlord's expense.

The Landlord shall give each Tenant a copy of the proposed buyout agreement at least forty-five (45) days before it is executed by the parties.

2. Include the following statement in bold letters in at least 12-point boldface type in close proximity to the space reserved for the signature of the Tenant:
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a. "You may cancel this buyout agreement in writing at any time before the thirtieth (30th) day after all parties have signed this buyout agreement."
b. "You have a right not to enter into a buyout agreement." c. "You may choose to consult with an attorney before signing this buyout agreement. The City of Bell Gardens Community
Development Department may also have information about other buyout agreements in your neighborhood."
C. Rescission of Buyout Agreement. A Tenant shall have the right to rescind a buyout agreement for up to thirty (30) days after its execution by all parties. In order to rescind a buyout agreement, the Tenant must hand-deliver, email, or send by certified mail return receipt requested, a statement to the Landlord indicating that the Tenant has rescinded the buyout agreement.

D. Filing of Buyout Agreement and Disclosure Notice. The Landlord shall provide the Tenant a copy of the fully executed buyout agreement within ten (10) days of execution. Landlord shall also file with the Department a copy of the executed buyout agreement, along with proof of service to the Tenant of the disclosure notice as required in this Section, within ten (10) days after the buyout agreement is executed by all parties.

5.63.060. Retaliatory Eviction and Anti-Harassment.

A. Retaliatory Eviction.

1. No Landlord may terminate a Tenancy or refuse to renew a Tenancy or otherwise cause a Tenant to vacate a Rental Unit, if the Landlord's intent in termination of the Tenancy or refusal to renew the Tenancy is retaliatory in nature, and if the Tenant is not in default as to the payment of Rent.

2. 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.
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3. Retaliation against a Tenant because of the Tenant's exercise of rights under this Chapter is prohibited. Retaliation claims may only be brought in court and may not be addressed administratively. A court may consider the protections afforded by this Chapter in evaluating a claim of retaliation.

B. Anti-Harassment. No Landlord, or any person, acting as a principal or agent, offering a Rental Unit for Rent, or any contractor, subcontractor or employee of the Landlord shall, with respect to property used as a Rental Unit under any Rental Agreement or other lawful Tenancy, do any of the following:

1. Interrupt, terminate, or fail to provide Housing Services required by Rental Agreement or by federal, State, or local housing, health, or safety laws, or threaten to do so, or violate California Civil Code sections 789.3 and 1940.2;

2. Do any of the actions in bad faith:
a. Fail to perform repairs and maintenance required by Rental Agreement or by federal, State, or local laws;
b. Fail to exercise due diligence in completing repairs and maintenance once undertaken;
c. Fail to follow appropriate industry repair, containment, or remediation protocols designed to minimize exposure to noise, dust, lead, paint, mold, asbestos, or other building materials with potentially harmful health impacts;
d. Conduct elective renovation or construction of Rental Unit for the purpose of harassing a Tenant;
e. Refuse to acknowledge or accept receipt of a Tenant's lawful Rent payment as set forth in a Rental Agreement, by usual practice of the parties, or in a notice to pay Rent or quit;
f. Refuse to cash or process a rent check or other form of acceptable Rent payment for over thirty (30) days after it is tendered; g. Fail to maintain a current address, in addition to any electronic payment methods, for delivery of Rent payments;
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h. Request information that violates a Tenant's right to privacy, including, but not limited to, residency or citizenship status, protected class status, or social security number, except as required by law or in the case of a social security number, for the purpose of determining the Tenant's qualifications for a Tenancy;
i. Release information protected by the Tenant's right to privacy except as required or authorized by law; or
j. Request or demand an unreasonable amount of information from Tenant in response to a request for reasonable accommodation.

3. Abuse the right of access into a Rental Unit as established by California Civil Code section 1954 or other applicable law. This includes, but is not limited to, entries for inspections that are not related to necessary repairs or services; entries that are unreasonable in frequency or duration; entries that improperly target certain Tenants or are used to collect evidence against the occupant or otherwise beyond the scope of an otherwise lawful entry.

4. Influence or attempt to influence a Tenant to vacate a Rental Unit through fraud, misrepresentation, intimidation or coercion, which shall include threatening to report a Tenant to the United States Department of Homeland Security.

5. Threaten the Tenant, by word or gesture, with physical harm, or repeatedly mistreat an occupant of a Rental Unit during in-person conversations, through social media postings or messages, or other communications, with language, verbal or written, that a reasonable person would consider likely to cause fear or provoke an immediate violent reaction.

6. Violate any law which prohibits discrimination based on race, gender, sexual preference, sexual orientation, ethnic background, nationality, religion, age, parenthood, marriage, pregnancy, disability, human immunodeficiency virus (HIV)/ acquired immune deficiency syndrome (AIDS), occupancy by a minor child, or source of income. 41 of 48
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7. Take action to terminate any Tenancy including service of any notice to quit or other eviction notice or bring any action to recover possession of a Rental Unit based upon facts which the Landlord has no reasonable cause to believe to be true or upon a legal theory which is untenable under the facts known to the Landlord. No Landlord shall be liable under this Subsection for bringing an action to recover possession unless and until the Tenant has obtained a favorable termination of that action.

8. Remove from the Rental Unit personal property, furnishings, or any other items without the prior written consent of the Tenant, except when done pursuant to enforcement of a legal termination of Tenancy.

9. Provide false written or verbal information regarding any federal, State, or local Tenant protections, including mischaracterizing the nature or effect of a notice to quit or other eviction notice.

10. Offer payments to:
a. A Tenant to vacate, including a Buyout Agreement offer, more frequently than once every six (6) months, after the Tenant has notified the Landlord in writing that the Tenant does not desire to receive further offers of payments to vacate.
b. Attempt to coerce the Tenant to vacate accompanied with threats or intimidation. This shall not include settlement offers in pending eviction actions made in good faith and not accompanied with threats or intimidation.

11. Interfere with a Tenant's right to quiet use and enjoyment of a Rental Unit as that right is defined by law.

12. Commit repeated acts or omissions of such significance as to substantially interfere with or disturb the comfort, repose, 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.
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13. Interfere with the right of Tenants to organize as Tenants and engage in concerted activities with other Tenants for the purpose of mutual aid and protection; provide property access to tenant organizers, advocates, or representatives working with or on behalf of Tenants living at a property; convene tenant or tenant organization meetings in an appropriate space accessible to Tenants under the terms of their Rental Agreement; or distribute and post literature in common areas, including lobby areas and bulletin boards, informing other Tenants of their rights and of opportunities to involve themselves in organized tenant activities.

C. Remedies and Penalties. For the purposes of this Section

1. If any Landlord or any person, acting as a principal or agent, offering a Rental Unit for rent, or any contractor, subcontractor, or employee of the Landlord violates the terms of this Section, an aggrieved Tenant may institute a civil action, as allowed under Section 5.63.100, for injunctive relief, direct money damages, and any other relief that the court deems appropriate.

2. The above remedies are not exclusive and do not preclude any Tenant from seeking other remedies or penalties provided by this Chapter or applicable law. No administrative remedy need be exhausted prior to filing suit pursuant to this Section.

5.63.070. Notices to Tenants.

A. Mandatory Notices to Tenants. Landlords must provide to each Tenant, prior to, or at the time of agreeing to rent or lease a Rental Unit, a notice of Tenant rights under this Chapter. The Department shall publish a form notice of Tenant rights in English and other frequently spoken languages. Landlords must provide the form notice in the following circumstances.

1. When entering into a Rental Agreement, by including a copy of the form notice as an exhibit or attachment to the written Rental Agreement;

2. When renewing a Rental Agreement; and
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B. If the Rental Agreement is negotiated or written in a language other than English, the Landlord must also provide the form notice of Tenant rights in English and the language in which the Rental Agreement was negotiated or written.

5.63.080. Enforcement.

A. Enforcement Authority. The Department is authorized to take appropriate steps it deems necessary to administer and enforce this Chapter.

B. The Director of the Department, or designee, may develop and publish procedures and guidelines to aid in the implementation of this Chapter.

5.63.090. Administrative Citations.

A. Administrative Citation. Any Landlord or Tenant who violates any provision of this Chapter, or Department's procedures and guidelines, is subject to an administrative fine as set in a schedule of fines adopted by resolution by the city council as provided in Chapter 1.16 of the Code.

D. Administrative Appeals and Judicial Review.

1. Administrative Appeal. Any Landlord or Tenant who receives a notice of administrative fine may request an administrative hearing before a hearing officer in accordance with Chapter 1.16 of the Code.
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5.63.100. Remedies.

B. Civil Penalty. Any person violating any of the provisions, or failing to comply with any of the requirements of this Chapter, may be liable for a civil penalty not to exceed One Thousand Dollars ($1,000) for each violation.

E. Each violation of any provision of this Chapter, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense.

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5.63.110. Waiver. Any waiver of rights under this Chapter shall be void as contrary to public policy.

5.63.120. Severability. If any provision of this Chapter or the application thereof to any person, property, or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this Chapter that can be given effect without the invalid provision(s) or application, and to this end, the provisions of this Chapter are declared to be severable.

SECTION 4. Inconsistent Provisions. Any provision of the Bell Gardens Municipal Code or appendices thereto that conflicts with the provisions of this Ordinance, to the extent of such conflict and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Interim Ordinance.

SECTION 5. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance, or any part thereof, 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 remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase would be subsequently declared invalid or unconstitutional.

SECTION 6. Compliance with California Environmental .Quality Act. ·The qity Council finds that this Ordinance is not subject to the California Environmental Quality Act pursuant· to Section 15060(c)(2), constituting an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment, and pursuant to Section 15060(c)(3) constituting an activity that is not a project as defined in Section 15378.
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Ordinance No. 925
SECTION 7. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.

SECTION 8. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published or posted as required by law.

This Ordinance shall become effective thirty (30) days after the date of its adoption.

PASSED, APPROVED, AND ADOPTED this 12th day of September 2022.

APPROVED AS TO FORM:

Rick Olivarez
City Attorney
foe

THE CITY OF BELL GARDENS
U-O~@L <.._.-/Maria Pulido, Mayor
ATTEST:

Daisy Gomez
City Clerk
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San Anselmo Item #: 3.4- Attachment 3
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I, DAISY GOMEZ, City Clerk of the City of Bell Gardens, hereby CERTIFY that Ordinance No. 925 was introduced and placed upon its first reading at a regular meeting of the Bell Gardens City Council held on Monday, August 22, 2022 and that thereafter said ordinance was duly adopted at a regular meeting of the Bell Gardens City Council held on Monday, September 12, 2022 and was approved and passed by the following vote:

AYES: Council Members Barcena, Cortez, Flores; Mayor Pro Tern Chavez; Mayor Pulido NOES: None
ABSTAIN: None
ABSENT: None
49 San Anselmo Item #: 3.4- Attachment 3
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1 CITY OF LARKSPUR
Staff Report
May 22, 2023, Special City Council Meeting
DATE: May 17, 2023
TO: Honorable Mayor Paulson and the Larkspur City Council FROM: Dan Schwarz, City Manager
Sky Woodruff, City Attorney
SUBJECT: PUBLIC HEARING #2 ON RENT STABILIZATION AND EVICTION

ACTION REQUESTED
Conduct a public hearing and consider the possible format and details of ordinances concerning rent stabilization and eviction protections.

With respect to eviction protections, staff has provided a series of discussion topics that should be addressed in the public hearing in order to craft an ordinance.

The Council conducted a public hearing on May 8, 2023. During the public hearing, the Council provided some feedback to staff that is identified in the body of the report.

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AGENDA ITEM 4.1
2 Rent Stabilization
During its workshops on rent stabilization, the Council expressed a desire that the ordinance it consider be as streamlined and easy to interpret and administer as possible. For the exercise of crafting the draft ordinance before the Council, staff reviewed ordinances across the state and concluded that the rent stabilization ordinance of the City of Oxnard would provide a good basis for Larkspur’s draft. Oxnard’s ordinance appears to have taken the general structure of the Tenant Protection Act and added the necessary elements for a local ordinance.

Staff believes it might be helpful to offer mandatory mediation as an option for tenants to invoke if the City Manager determines that an increase above the cap should be allowed.

If the Council does not agree with staff’s recommendation to make the City Manager’s determination final and not subject to appeal, the alternative is to create an appeals board.

At the May 8 meeting, some of the Councilmembers expressed a preference for an appeals board.

San Anselmo Item #: 3.4- Attachment 4 San Anselmo Item #: 3.4- Attachment 4 514
AGENDA ITEM 4.1
3 • As drafted the rent stabilization regulations would apply to the same properties as the Tenant Protection Act. Properties excluded would be:
o Single-family homes, unless owned by a real estate investment trust, a corporation, or an LLC in which one member is a corporation.
o Duplexes, if the owner lives in one of the units and the beginning of the rental tenancy.
o Property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. o Affordable housing restricted by deed or regulatory agreement. o Specified dormitories.

Under the Act, the following are the enumerated “at fault” reasons why a tenant may be evicted:
• Non-payment of rent;
• Breach of a material term of the rental agreement that has not been corrected after written notice under CC §1161(3) (the new law requires the landlord to serve an additional 3-day notice to quit after the cure period is passed);
• Maintaining or committing a nuisance as described in CC §1161(4); San Anselmo Item #: 3.4- Attachment 4 San Anselmo Item #: 3.4- Attachment 4 515
AGENDA ITEM 4.1
4 • Maintaining or committing waste as described in CC §1161(4); • Termination of the rental agreement without renewal (i.e. the tenant refuses to sign a written extension or renewal after written request or demand from the owner); • Criminal activity by the tenant;
• Unapproved subtenant;
• The tenant has refused to give the landlord access to the unit as permitted by law; • Illegal use of the unit;
• Failure to vacate after termination of employment or agency as described in CC §1161(1); and • Failure to deliver possession after the tenant provides written notice of intent to vacate or makes a written offer of surrender that is accepted by the landlord.

The Act provides for relocation assistance— equal to one month of rent either paid directly to the tenant or waived by the landlord—in the event of a no fault eviction.

The Act’s eviction protections are distinct from rent regulation in that they apply broadly to most forms of rental housing.

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AGENDA ITEM 4.1
5 • Does the Council want to require relocation assistance for temporary evictions – evictions where the tenant will be returning to the unit after repairs are made? If so, staff recommends a provision that a tenant shall not be required to pay rent during the period of temporary relocation.

At the May 8 meeting, the Council appeared to want to establish relocation assistance at either 3 months or 4 months of rent, with some minimum amount also specified.

At the May 8 meeting, there appeared to be consensus for establishing a right of return, but Council did not find agreement on a time period.

STAFF RECOMMENDATION
Conduct a public hearing and provide direction to staff.

To help the Council advance its discussions, staff has attached a sample of rent stabilization and eviction protection ordinances adopted by other cities. The Council may wish to discuss the elements of these examples in the context of potential Larkspur ordinances. The ordinances by Oxnard align closely to the Tenant Protection Act and appear to be an effort to use the parameters of state law to craft a local ordinance. The ordinance from Bell Gardens (rent stabilization and eviction protections are combined in one ordinance) was referenced at the May 8 hearing. It contains one of the lowest caps in the state, but San Anselmo Item #: 3.4- Attachment 4
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AGENDA ITEM 4.1
6 also offers a provision for landlords with below-market rents to “catch-up.” The ordinances from Fairfax are based on a “model ordinance” that the Council received from the Democratic Socialists of America and the Skylark tenants Association.

Respectfully submitted,
Dan Schwarz, City Manager
Attachments

1. Draft rent stabilization ordinance with some provisions unspecified (revised to delete incorrect references to mobile homes in the May 8, 2023, version)

2. Sample Ordinances from Oxnard, Fairfax, and Bell Gardens San Anselmo Item #: 3.4- Attachment 4
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4.1 ATTACHMENT 1
DRAFT 1

CITY OF LARKSPUR

ORDINANCE XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LARKSPUR AMENDING THE LARKSPUR MUNICIPAL CODE TO ADD CHAPTER XX.XX

AND ESTABLISHING RENT STABILIZATION REGULATIONS INCLUDING

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LARKSPUR DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Recitals. The above Recitals are true and correct and are incorporated herein by reference.

Section 2. Amendment of Larkspur Municipal Code to Add Chapter XX. The Larkspur Municipal Code is hereby amended by adding a new Chapter XX, which shall read as follows:

XX.XX.010 Title.

This ordinance shall be known as the Larkspur Rent Stabilization Ordinance.

XX.XX.020 Purpose and Intent.

4.1 ATTACHMENT 1
DRAFT 2
adequate services, and enable operators to maintain and support an owner’s credit status, but not so high as to defeat the purpose of curtailing excessive rents and rental increases. “Rent” shall mean all periodic payments and all nonmonetary consideration, including, but not limited to, the fair market value of goods and services rendered to or for the benefit of the owner under an agreement concerning the use or occupancy of residential real property, including, but not limited to, all payment and consideration demanded or paid for parking, pets, furniture and subletting.

XX.XX.040 Prohibited Increases.

XX.XX.050 Reasonable Rate of Return.

XX.XX.060 Fair Return Petition for Rent Increase.

4.1 ATTACHMENT 1
DRAFT 3
analysis shall be refunded to the owner. If additional funds are required, payment of such funds shall be required before owner receives the determination on the fair return petition from the City.

4.1 ATTACHMENT 1
DRAFT 4
City Manager’s decision on the fair return petition in the event that the parties do not reach an agreement as a result of the mediation.

F. [MANDATORY MEDIATION PROCESS TO BE ADDED IF COUNCIL DIRECTS—

XX.XX.070 Exemptions.

1. A real estate investment trust, as defined in section 856 of the Internal Revenue Code.

2. A corporation.

3. A limited liability company in which at least one member is a corporation.
(b) At the time the tenancy is created:

1. The tenants have been provided written notice that the residential real property is exempt from this section using the following statement:

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4.1 ATTACHMENT 1
DRAFT 5
“This property is not subject to the rent limits imposed by Larkspur Municipal Code Chapter XX.XX, and the owner is not any of the following: (1) a real estate investment trust, as defined by section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

2. For a tenancy existing before the effective date of this chapter, the notice required under subsection (1) above may, but is not required to, be provided in the rental agreement.

3. For a tenancy commenced or renewed on or after the effective date of this chapter, the notice required under subsection (1) above must be provided in the rental agreement.

XX.XX.080 Rent Increase Ineffective.

No rent increase shall be effective if the owner:

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C. Fails to make repairs ordered by the city or court of competent jurisdiction.

XX.XX.090 Notice Requirements.

XX.XX.100 Violations.

XX.XX.110 Fees Established.

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Section 3. Compliance with the California Environmental Quality Act. The approval of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The rent stabilization regulations imposed by the adoption of this Ordinance are to prohibit increases in excess of a certain amount of rent on an annual basis; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the regulations are not a project within the meaning of CEQA because it creates a regulatory mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required.

Section 5. Effective Date and Publication. This Ordinance shall become effective thirty (30) days after it is adopted.

AYES: COUNCILMEMBER:

NOES: COUNCILMEMBER:

ABSENT: COUNCILMEMBER:

ABSTAIN: COUNCILMEMBER
__________________________
Mayor

ATTEST:
__________________________
City Clerk
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San Anselmo Item #: 3.4- Attachment 4
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ORDINANCE NO. 3013

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF OXNARD ADDING ARTICLE II TO CHAPTER 27 OF

THE OXNARD CITY CODE ESTABLISHING RENT

STABILIZATION REGULATIONS INCLUDING

PROHIBITING RESIDENTIAL REAL PROPERTY RENTAL
RATE INCREASES THAT EXCEED FOUR PERCENT (4%)

ANNUALLY

THE CITY COUNCIL OF THE CITY OF OXNARD DOES ORDAIN AS
FOLLOWS:

Section 1. The City Council of Oxnard hereby finds, determines and declares as follows:

The City's housing stock consists of 51,460 units-27,631 of which are owneroccupied and 23,829 of which are renter-occupied.

D. The U.S. Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who classifies as impoverished.

According to the Census Bureau, in 2019, the City had a poverty rate of 13.8%-- a number that is higher than the national average of 12.3%.

40.2% between 2013-2019 ($323,700 to $453,900). However, during that same period, the median family income in Oxnard grew at a disproportionate rate of 19% ($60,784 to $72,843).

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F. The increase in the cost of housing within the City can be attributed to new developments in the past 20 years, such as new communities like Seabridge, RiverPark and Victoria Estates where a three bedroom home ranges from $700,000 to $2,000,000. The two-bedroom average rent in the City has increased by 18% over the past three years from $1,823 to $2,155, which indicates that households with the median income of $72,843 cannot afford or would struggle to afford the average rent. A household with a median income of $72,843 living in a two bedroom unit costing $1,823 per month, would need to spend 30% of their income on housing.

I. Moreover, an eviction can remain on a renter's credit history for at least seven years, impacting one's ability to rent and find employment opportunities.

K. Increasing the number of homeless residents in Oxnard, particularly elderly residents who may be in need of medical or other care, could create a public health and safety risk.

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San Anselmo City CouncilJune 13, 2023

San Anselmo City Council
June 13, 2023