Cities Index.
B - Housing Protections Presentation

Rules Committee
January 22, 2025

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B - Housing Protections Presentation
Meeting
January 22, 2025
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Rules Committee
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1 HOUSING PROTECTIONS UPDATE
Consideration of Draft Amendment to Municipal
Code, to add Chapter 4-45 Rental Registry, and
Possible Direction on Other Housing Protections
Rules Committee
Housing Services Division/Community Development Department January 22, 2025
2 Overview of Today’s Presentation
I) Background
II) Review of April 24 Rules Committee Presentation on Rental Housing Data and Policy Options
III) Review proposed Rent Registry Ordinance
IV) Staff Recommendation
2 3
Background
4 How Did We Get Here?
• February 2023: City Council included housing protections under Housing/Homeless Priority • July 2023: City Council requested assessing housing protections not currently in SL (stricter rent control, just cause & tenant anti-harassment, plus rent registry), existing housing protection programs & cost impacts to the City; directed to Rules Committee • Fall 2023: wide outreach to landlords, renters, & mobile home park owners and renters • November 2023: Rules Committee requested staff present on more comprehensive & current rental housing and eviction data
• April 24, 2024: Rules Committee requested further information on rent registries • October 23, 2024: Rules Committee requested staff prepare draft Rent Registry Ordinance • January 22, 2025: Today, staff will present
o data/policy options (from April 2024 Rules)
o proposed Rent Registry Ordinance
4 5
Public Outreach/Engagement (2023)
• Community-wide meetings (Oct 10 & 25)
• Oct 10 (online) –simultaneous translation in Spanish, Mandarin & Cantonese • Oct 25 (in person)
• Focus groups/listening session meetings (Fall 2023)
• Held 4 meetings for each group: housing providers, tenants, mobilehome residents & mobilehome park owners
• All meeting/focus group presentations and summaries posted on City Housing Protections webpage (sanleandro.org/Slhousingprotections) 5 6
April 24, 2024 Rules Committee
Meeting Presentation on Rental
Housing Data & Policy Options
7 Eligible Units
Eligible Units (Updated)
Unit Type
Eligible for Rent
Control
Eligible for
Other
Protections
Single-Unit 19,108
Duplex 1,288 1,298
Triplex 393 417
Fourplex 532 532
5-8 Units 815 815
9-19 Units 792 808
20+ Units 3,873 3,873
Multi-Family Restricted 2,094
Mobile Home Spaces 855 855
Condos/Townhomes 3,040
Total 8,548 32,840*
• There are an estimated 8,548
units that could be eligible for
rent control under Costa
Hawkins (pre-1995)
• An estimated 32,840 units are
eligible for non-rent control
protections
• These estimates include units
that are currently owneroccupied
8 Multi-Family
Units Map
9 Mobilehome
Park Map
0 10
11 San Leandro Rental Housing
Data Summary
12 Data Package
• Nov 9, 2023: Rules Committee
requested relevant data to inform
housing protections
• MIG Consulting prepared rental data
package, including:
• Demographic Trends
• Profile of Renter Households
• Rental Housing Supply and Cost
12 Renter Households vs. Bay Area Region
Source: U.S. Census Bureau, "Total Population in Occupied Housing Units by Tenure," 2022. American Community Survey, ACS 5-Year Estimates Detailed Tables, Table B25008, 2022
• 12,080 renter households
• Slightly smaller share of renter
households (40%) compared to
other locations
57% 54% 57% 60% 59%
43% 46% 43% 40% 41%
Alameda County City of Alameda City of Hayward City of San Leandro
San Jose-San
Francisco-Oakland
Combined
Statistical Area
Population by Tenure, 2022 5-Year Estimates
Owner-Occupied Renter-Occupied
13 Income of Renter Households vs. Bay Area Region
Source: U.S. Census Bureau, "Median Household Income in the Past 12 Months (in 2022 Inflation-Adjusted Dollars) by Tenure," 2022. American Community Survey, ACS 5-Year Estimates Detailed Tables, Table B25119, 2022
$-
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
$70,000.00
$80,000.00
$90,000.00
$100,000.00
2008-2012 2013-2017 2018-2022
Median Household Income, Renter Occupied, Over
Time
Alameda County
City of Alameda
City of Hayward
City of San Leandro
San Jose-San Francisco-Oakland Combined Statistical Area • Median household income for
renter households lower than other
local areas over time
14 Rental Housing Units vs. Bay Area Region
Sources: U.S. Census Bureau, "Selected Housing Characteristics," 2017, 2022. American Community Survey, ACS 5-Year Estimates Data Profiles, Table DP04 • 2013-2017: Lower rental vacancy
rate than other local areas
• 2018-2022: Vacancy rate closer to
that of other locations

2.6 2.5

3.2 1.1
3 4.9

5.4 4.6

4.1 4.4
Alameda County City of Alameda City of Hayward City of San Leandro San Jose-San Francisco-Oakland
Combined Statistical
Area
Rental Vacancy Rate, Over Time
2013-2017 2018-2022
15 Rental Housing Units
Source: U.S. Census Bureau, "Physical Housing Characteristics for Occupied Housing Units," 2017, 2022. American Community Survey, ACS 5-Year Estimates Subject Tables, Table S2504
*Number suppressed due to margin of error over 50%
• Between 2013-2017 and 2018-
2022: Decline in renter-occupied
1-unit detached rentals and 2
apartment rentals
4,268
1,151 967
1,317 1,314
5,567
3,191
1,296
363
912 985
5,896
1, detached 1, attached 2 apartments 3 or 4
apartments
5 to 9
apartments
10 or more
apartments
Mobile home or
other type of
housing*
San Leandro Renter-Occupied Housing Units by Type, Over Time
2013-2017 2018-2022
16 Cost of Rent Bay Area Region
(Corrected January 3, 2025)
Source: U.S. Bureau of Labor Statistics "Consumer Price Index for All Urban Consumers (CPI-U): All items in San Francisco-Oakland-Hayward, CA, all urban consumers, not seasonally adjusted”
• Tenant Protection Act limits rental
increases to Consumer Price Index
(CPI) plus 5% maximum, not to
exceed 10% total per year
• 2022: SF Bay Area CPI plus 5%
capped at 10%

3.8%

5.0%

4.2% 3.8%

8.8%

10.0%

9.2% 8.8%
2021 2022 2023 2024
Maximum Rental Increase Under Tenant Protection
Act
CPI Increase Maximum Increase (5% + CPI, capped at 10%) AB1482
Cap
17 Cost of Rent vs. Bay Area Region
Source: U.S. Census Bureau, "Median Contract Rent (Dollars)," 2010-2022. American Community Survey, ACS 1-Year Estimates Detailed Tables, Table B25058, 2010-2022 $-
$500
$1,000
$1,500
$2,000
$2,500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021 2022 Median Contract Rents 2010-2022
Alameda County
City of Alameda
City of Hayward
City of San Leandro
San Jose-San Francisco-Oakland Combined Statistical Area • Comparable median contract rents
• Since 2010: San Leandro slightly
lower than other local areas
Note: The U.S. Census Bureau defines contract rent as “The monthly rent agreed to or contracted for, regardless of any furnishings, utilities, fees, meals, or services that may be included. For vacant units, it is the monthly rent asked for the rental unit at the time of interview.”
18 Cost of Rent (New Data as of 12/24)*
Source: Yardi Matrix, “Rental Rate Trends Grouped by Submarket,“ December 2014 – December 2024. Not adjusted for inflation. Multifamily rental properties with 50+ units. $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Average Rental Rates by Area, 2014-2024
Downtown Oakland Alameda Hayward San Leandro
• San Leandro has slightly lower
rents and higher rent growth rates
than neighboring East Bay
submarkets
19 Occupancy Rates (New Data as of 12/24)*
Source: Yardi Matrix, “Occupancy Rate Trends Grouped by Submarket,“ December 2014 – December 2024. Multifamily rental properties with 50+ units. 90%
91%
92%
93%
94%
95%
96%
97%
98%
99%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Occupancy Rates by Area, 2014-2024
Downtown Oakland Alameda Hayward San Leandro
• 94.8% of rental units in large
multifamily developments in San
Leandro are being rented
• Occupancy rates have slightly
decreased over the last 10 years
locally and regionally
20 Housing Burden in San Leandro
Source: Zillow Research
• To afford median rent for 1BR
apartment in San Leandro, a
person would need to earn
$37.04/hour at a full-time job –
more than double the $16/hour
State minimum wage
Median
Rent
Hourly Rate Needed to
Afford Median Rent
(before Taxes)
1-Bedroom $1,925 $37.04
2-Bedroom $2,495 $48.48
21 Housing Burden vs Bay Area Region
Sources: U.S. Census Bureau, "Median Contract Rent (Dollars)," 2010-2022. American Community Survey, ACS 1-Year Estimates Detailed Tables, Table B25058, 2010 U.S. Bureau of Labor Statistics "Consumer Price Index for All Urban Consumers (CPI-U):

All items in San Francisco-Oakland-Hayward, CA, all urban consumers, not seasonally adjusted." 2010-2023. https://data.bls.gov/pdq/SurveyOutputServlet Note: 2010 represents base year for comparison.
0 0.1

0.2 0.3

0.4 0.5

0.6 0.7

0.8 0.9
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021 2022 Median Rents Compared with Consumer Price Index
(San Francisco-Oakland-Hayward), 2010-2023
CPI % change from 2010
Alameda County Median Rent % change from 2010
City of Alameda Median Rent % change from 2010
City of Hayward Median Rent % change from 2010
San Leandro Median Rent % change from 2010
San Jose-San Francisco-Oakland Combined Statistical Area Median Rent % change from 2010 • Median rents increased 82% over
2010 levels, outpacing CPI, which
increased 44%
• Follows same trend as other local
areas
22 Housing Burden vs Bay Area Region
Source: U.S. Census Bureau, "Selected Housing Characteristics," 2022. American Community Survey, ACS 5-Year Estimates Data Profiles, Table DP04, 2022 San Leandro and Hayward
• 43.9% and 43.7% of renter
households pay 35%+ of income
on rent
• More than half pay 30%+ of
income in rent
• 30% is a widely used benchmark
of “housing burden”

11.2% 14.2% 8.4% 7.9% 12.6%

12.3%

13.6%

11.5% 12.6%

12.5%

13.5%

15.8%

12.1% 12.4%

13.1%

12.0%

11.0%

13.6% 12.9%

11.9%

9.9%

10.3%

10.7% 10.3%

9.2%

41.2% 35.1%

43.7% 43.9% 40.7%
Alameda County City of Alameda City of Hayward City of San Leandro
San Jose-San
Francisco-Oakland
Combined
Statistical Area
Rent as Percentage of Income

35.0 percent or
more

30.0 to 34.9
percent

25.0 to 29.9
percent

20.0 to 24.9
percent

15.0 to 19.9
percent
Less than 15.0
percent
23 Unlawful Detainers
Sources: Alameda County Superior Courts, “Unlawful Detainers, San Leandro, September 2021-December 2023.”
50 44
49 38 38
35 59
40 59
57 61 61
39 38
17 41
15 16
29 36
3 11 12
26 200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023 Unlawful Detainers, San Leandro, Excluding Commercial
• Unlawful detainers in San Leandro
averaged 41.1 per year prior to
2020 (2000-2019)
• Unlawful detainers had been on a
downward trend since peaking at
61 in 2010-2011
• Includes zip codes: 94577, 94578,
94579
24 Threats of Displacement
• Centro Legal de La Raza’s San
Leandro cases have more than
doubled between 2019 (45) and
2023 (100)
• 2023: 40% of cases involved rent
increase, 10% increase from prior
year
Sources: Centro Legal de La Raza
• Percentages will add up to more than 100% because cases can have more than one threat of displacement.
• The category "Notice of termination of tenancy" includes verbal threats of eviction as well as written notices
0 12
50 19 20
7 9
37 36
14 20
11 50
29 26
5 5
10 41
15 6
13 19 17
25 0
7 10
23 28
11 9
29 29
22 19
9 8 9
30 45
39 97
102 100
0 20
40 60
80 100
120
2019 2020 2021 2022 2023
Threats of Displacement Analysis
Impacted by covid-19 Landlord harassment
Notice of termination of tenancy Rent increase
Repairs necessary for health or safety Unable to pay rent Unfair or illegal behavior by landlord Unlawful Detainer Total cases
25 26
Policy Options
Current City Programs Timeline
1989
Tenant/
Landlord
Counseling
and Fair
Housing
Services
2001
Mobile
Home Park
Conversion
Ordinance
2001
Rent
Review
Board
Ordinance
2003
Rent
Review
Board
Ordinance
2004
Inclusionary
Housing
Ordinance
2006
Amended
Inclusionary
Housing
Ordinance
2015
Amended
Rent
Review
Board
Ordinance
2016
Amended
Rent
Review
Board
Ordinance
2017
Tenant
Relocation
Ordinance
2019
Mobile
Home
Space Rent
Stabilization
Ordinance
2020
Tenant
Legal
Services/
Eviction
Defense
2021
Mobile
Home Park
Overlay
Zoning
& Updated
Mobile
Home Park
Conversion
Ordinance
27 Limitations on Rent Increases
(e.g., Rent Control)
Limitations on Evictions
(e.g., Just Cause) Rent Registry Anti-Harassment
Baseline
State
Protections
• AB 1482 caps allowable rent
increase in a 12-month period: 5% +
CPI* (10% max.). Sunsets Jan 1, 2030
• Exemptions: housing built in last
15 years, owner occupied
duplexes, single-family homes, deedrestricted affordable housing • Costa Hawkins - State law took effect
in 1995:
1) Limits cities’ ability to regulate
rents on new housing built after 1995
2) Removed regulatory barriers for
new rental housing construction
3) Exempts single family rentals,
condos, and townhomes; and
4) Prohibits vacancy control
• AB 1482 & SB 567 (Homeless Prevention Act of
2023) establishes just cause eviction
requirement if all tenants have occupied unit for
at least 1 year, or at least one tenant
has occupied for 2 years. Sunsets on Jan 1, 2030
• Landlord must have “at-fault” just cause or “nofault” just cause to evict or not renew lease. If “no-fault” just cause, landlord must pay onemonth’s rent as compensation. At-fault evictions involve conduct by the tenant (e.g. unpaid rent,
violating material lease term,
unpermitted sublease, etc.). No-fault evictions
do not involve conduct by the tenant (e.g. owner
move-in, removal of unit from rental market,
etc.)
• Exemptions: Housing built in last 15 years, ADUs,
Owner occupied duplexes, single family
homes &residential real property separate from
another dwelling unit & not owned by a
corporation, real estate trust or LLC; and deedrestricted affordable housing • N/A
• CA fair housing laws prohibit
discrimination or
harassment based on
protected characteristics and
require reasonable
accommodations and
modifications for persons
with disabilities. A housing
provider may not retaliate
against someone who
exercised their rights under
fair housing laws
• Civil Code Section 1940.5
prohibits threatening and
harassing conduct that
interferes with quiet
enjoyment of unit
• Civil Code Section 1942.5
prohibits retaliation for
landlord exercising rights
Current State Protections
28 29
Council Direction
• City Council Meeting – July 17, 2023
• Analyze Existing and New Housing Protection Options:
• Stricter Rent Control
• Stricter Just Cause Eviction Requirements
• Rent Registry
• Stricter Tenant Anti-Harassment Regulations
• Assess Implementation and Cost Impacts to the City
29 Limitations on Rent Increases
(e.g., Rent Control)
Limitations on Evictions
(e.g., Just Cause) Rent Registry Anti-Harassment Other Resources Highest
Protections
Cap maximum allowable rent
increase Prohibit “No Fault” evictions Require expansive rental property registration Adopt Anti-Harassment
ordinance enforceable by third
parties, with award of attorneysfees for successful cases • Include options below for
Increased Protections and
Current Protections
Increased
Protections
• Amend Rent Review
Ordinance: 1) Lower 7% rent
cap threshold for hearing; 2)
expand types of covered
units; 3) allow appeals to
neutral hearing officer
• Adopt Minimum Lease Term
Ordinance that:
1) requires mandatory offer
of minimum term leases to in
place tenants; 2) limits
frequency of rent increases
• Increase Tenant/Landlord
Counseling and Tenant Legal
Assistance
• Require landlords to provide
City with copy of termination
notices
• Narrow types of evictions
which qualify as “at-fault”
just cause
• Add requirements for “No
Fault” evictions
Require basic rental property
registration
Expand Anti-Harassment policies
• Fund rental assistance
program
• Create Rental Housing
Inspection Program
• Establish Education/
Mediation/ Legal Enforcement
• Amend Tenant Relocation
Assistance: 1) increase
assistance and 2) expand
types of covered units
Current
Protections
• AB 1482 & Costa Hawkins
• Rent increases of more than
7% or 2+ rent increases in a
12-month period eligible for
Rent Review Board hearing.
• Exemptions: Single-family
homes, townhomes,
condominiums
• Rent control ordinance for
mobile home spaces
• AB 1482 & SB 567
• See programs under "Other
Resources"
• City business license required
to rent units in San Leandro
• Rent registry for mobile home
park spaces
• Rent Review and Tenant
Relocation Ordinances include
anti-retaliation requirements
for tenants exercising rights
• See programs under
"Other Resources"
• Tenant/Landlord Counseling
• Tenant Legal Assistance
• Tenant Relocation Assistance
• Fair Housing Services
Policy Options
30 Implementation - Budget/Staffing
Impacts
Increased
Enforcement
Additional
Staff
Legal
Support
Current Staff
Rental Units Impacted & Level of Enforcement
Implementation Costs*
* Costs may be passed through to landlords and tenants
31 Services provided
Highest
• Proactive enforcement by staff, without receipt of complaints • Complaints from public lead to in-depth investigations • Significant enforcement, including possible civil lawsuits or criminal enforcement, in addition to administrative fines • Expert hearing officers are available to handle appeals of complex enforcement matters Increased
• Minor administrative enforcement of clear violations, such as the issuance of notices of violation and administrative fines. • Additional counseling and individualized advice/education for tenants and landlords (proactively and in response to complaints, public education workshops)
Current
• Produce reference materials about local regulations (such as FAQs) • Answer basic questions about local regulations
• When significant issues arise, refers public to Centro Legal and other third-party organizations • When staff receives complaints of alleged violations, follow-up/education with relevant parties regarding applicable regulations
Enforcement Service Models
32 Rental Housing Program Cost
Comparison FY2021-22
Program Components Berkeley Beverly Hills Richmond Santa Monica West Hollywood Average
Year Rent Stabilization Program was
Established 1978 2017 2017 1979 1985 --
Population 123,065 31,896 110,051 92,408 35,399 --
Rent-stabilized Units 19,607 7,794 7,665 27,484 16,741 -- Units Subject to “Just Cause” Only 24,306 -- 10,485 -- -- -- Total Program Costs $5,446,666 $1,600,000 $2,595,497 $5,505,179 $2,523,827 $3,534,234 Fee Per Unit $400 $59 $353 $228 $144 $237
33 Source: Management Partners, “Objective Analysis of a Ballot Measure, Titled “The Pasadena Fair and Equitable Charter Amendment," August 2022. 34 Possible Policy Options
• Staff seeks direction from the Rules Committee on Policy option(s) to move forward:

1. Rent Increases 2. Evictions 3. Rent Registry 4. Anti-Harassment 5. Other Highest A. Cap maximum allowable rent
increase (“Rent Control”) A. Prohibit “No Fault” evictions A. Require expansive rental property registration A. Adopt Anti-Harassment
ordinance with award of
attorneys-fees
A. Include options below for
Increased Protections and
Current Protections
Increased
B. Amend Rent Review
Ordinance:

C. Adopt Minimum Lease Term
Ordinance
B. Increase Tenant/Landlord
Counseling and Tenant Legal
Assistance
C. Require landlords to provide
City with copy of termination
notices
D. Narrow types of evictions
which qualify as “at-fault”
just cause
E. Add requirements for “No
Fault” evictions
B. Require basic rental property
registration
B. Expand Anti-Harassment
policies
B. Fund rental assistance
program
C. Create Rental Housing
Inspection Program
D. Establish Education/
Mediation/ Legal
Enforcement
E. Amend Tenant Relocation
Assistance
34 35
Draft Rent Registry Ordinance
36 Purpose of Ordinance
• “Establish a program for the collection of important data regarding the rental market in San Leandro.”
• Applicable rental housing providers shall annually pay a fee and submit registration statement with data to the City by January 31 • Rental unit defined as:
• Any unit in any real property…rented or available for rent for residential use or occupancy….
• Includes rental units exempted from Costa Hawkins such as single family homes, condos/townhome, & post 1995 rental units
36 37
Which Properties Are Exempt?
1) Rental units subsidized or regulated by City, State, federal & other public agencies 2) Rental units owned by any public agency
3) Rental units rented or leased for 30 consecutive days or less (hotels/motels, hosted Airbnb) 4) Hospital or facility for assisted living, skilled nursing, convalescence…. 5) Rooms in a building or in a rental unit where the primary use is providing short-term treatment, assistance or therapy for alcohol, drug or other substance abuse…. 6) Rooms in a building or in a rental unit that provide a structured living environment that has the primary purpose of helping formerly homeless persons obtain the skills necessary for independent living in permanent housing….
7) Mobile homes or mobile home lots (which are subject to requirements of Municipal Code section 4-39- 240) 8) Rooms in a facility that require, as part of the person's occupancy and use of the room and the facility, some or all of the following: intake, case management, counseling, and an occupancy agreement; 9) Rental units in which the landlord owns the rental unit, occupies the rental unit as the landlord's primary residence and shares kitchen or bath facilities with one or more tenants; or 10) Any part of a rental unit in which a tenant has allowed or permitted a person to use or occupy such part of the rental unit but that person does not meet the definition of tenant as defined in this chapter. 37 Rent Registry Data Categories
• Site address and Assessor Parcel Number
• Date purchased by current owner
• Year built
• Type of rental housing (single family,
duplex, triplex,etc)
• Total number of rental units
• Total number of rental units exempt from
this Ordinance
• Owner type (individual, corporation)
• Info of each person/legal entity possessing
ownership interest in the rental unit & the nature of
such interest
• Info on the person responsible for managing the
rental unit
• rent for the unit effective January 1 of current year • rent for the unit effective January 1 of previous year • listing of all other charges, including utilities not included in rent, paid by tenant, & approximate
amount of each such charge
• all other information required by the program
administrator
38 39
Program Fees
1) Per Ordinance, a reasonable fee may be established and collected to administer Rent Registry Program
1) Maximum annual fee: $100 per unit*
• Staff still assessing fee amount
• Criteria include pass through impacts on renters & funding for effective staffing 2) Approx. 16,000 to 20,000 rental units may fall under Rent Registry Ordinance • includes single family and condos/townhome units being rented * October 23, 2024 Rules Committee presentation
39 40
Program Cost & Staffing
1) Estimated annual program cost: $650,000
• Assumes 2 new FTE City Housing staff
• Current budgeted Housing Division staffing (4 FTE): 1) Manager, 2) Senior Project Specialist, 3) Project Specialist II, 4) Project Specialist I (vacant) • Includes 3rd party consultant to augment staff
• Includes rent registry software purchase & annual subscription/maintenance 40 41
• Within first 90 to 120 days of Ordinance adoption:
• Find/select database vendor
• Set up database
• Develop forms, public information & website
• Begin outreach to landlords
• Implementation Challenges
• Thousands of housing providers will need to submit registration • Approx. 3 to 5 years to achieve full annual compliance • Staff costs & fee revenue estimates may be wrong
• Administrative burden on existing Housing staff while staffing up Implementation & Challenges
41 42
Staff Recommendations
43 Staff Recommends Rules Committee Provide:
1) Direction on Rent Registry Ordinance
a) Proposed program costs/staffing levels
b) Referral to City Council (1st reading)
2) Possible direction (policy options, next steps) for other housing protections:
a) rent control
b) just cause
c) anti-harassment, and
d) amending Mobile Home Rent Stabilization Ordinance
43 44
For more information
sanleandro.org/SLhousingprotections
[email protected]
(510) 577-6006
44

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