General Fund Loan Interest Rate, Rent Program Fee Adoption & Prohibition of Fee Pass-Through to Tenants
City Council | June 1, 2026
Rent Program
Rental Registry & Rent Stabilization Timeline
April
2025
Rental Registry
Ordinance Adopted
April 21, 2025
Ord. 2025-002
October
2025
Rental Registry Deadline
January 31 → July 31
October 20, 2025
Ord. 2025-013
(Amendment)
February
2026
Rent Stabilization
Ordinance Adopted
February 2, 2026
Ord. 2026-001
January
2027
Current Rental Registry
Deadline
July 31, 2026
April-May
2026 Ordinance Effective
Dates
Rent Stabilization:
January 1, 2027
Rental Registry:
January 31, 2027
2 Council Direction on
Rent Program Budget,
Staffing, & General
Fund Loan
December 15, 2025
December
2025
Rent Program Budget &
Staffing Approved
Rental Registry Deadline
July 31 → January 31
April 20, 2026
May 4, 2026
RECOMMENDED COUNCIL ACTIONS
1. ADOPTED A RESOLUTION TO
IMPLEMENT RENT PROGRAM
✓Established Rent Program Special
Revenue Fund
✓Appropriated $2,230,433 for FY2026-27
✓Authorized Six (6) Rent Program FTEs
2. INTRODUCED AN ORDINANCE
ALIGNING RENT PROGRAM LAUNCH
✓ Amended SLMC §4-45-120(a) to revise the
Rental Registry annual filing deadline from
July 31, 2026 to January 31, 2027
May 4, 2026: Ordinance adopted at 2nd Reading
April 20, 2026 Council Actions
3 April 20, 2026 Council Direction
4 Council directed staff to return with three items:
1 Updated General Fund Loan Interest Rate
Based on U.S. Treasury return rates rather than City investment portfolio return. → Proposed interest rate of 4.03% based on April 2026 average of daily 5-year and 7- year U.S. Treasury par yield curve rates
2 Updated FY 2027 Rent Program Fees
Elimination of petition processing fees and updated penalty tiers. → Petition costs redistributed into base program fees; each base fee increased $1/unit 3 Eliminate Fee Pass-Through to Tenants
Amend SLMC §4-46-175(C) to prohibit property owners from passing through the Rent Stabilization fee to tenants.
→ Draft ordinance prepared for Council consideration
General Fund Loan (updated)
5 1
Proposed General Fund Loan Interest Rate
Based on U.S. Treasury return rates rather than City investment portfolio return
Data source: U.S. Treasury daily par yield curve rates (April 2026) Maturities used: 5-year CMT (avg. 4.04%) and 7-year CMT (avg.
4.02%)
Blended rate: Simple average of the two maturity averages = 4.03% Previous proposed rate: 3.76% (City investment portfolio return, Dec. 2025)
2 $2,230,500
4.03% 1
3-6 Years
General Fund Loan
1 Based on April 2026 average of daily 5-year
& 7-year U.S. Treasury par yield curve rates
FY 2027 interest accrual at 4.03%: $89,889 | Estimated total interest over loan life: $280,000 – $487,000 Rent Program Fees (updated)
1Maximum permissible FY27 fees at 100% cost recovery per NBS Fee Study Annual Fee Fee Per
Unit1
Estimated
Units
Estimated Annual
Revenue
Base Rent Program Fee – Rental Registry (All Units) per SLMC Chapter 4-45
$149 9,500 $1,415,092
Additional Rent Stabilization Program Fee – Rent
Stabilized Units Only per SLMC Chapter 4-46
$109 6,500 $708,198
Combined Fee – Rent Stabilized Units $258 6,500 --
TOTAL $2,123,290
Proposed FY2026-FY2027 Rent Program Fees
6 Program Staffing & Budget Development
Meeting Action
Rental Registry Rent Stabilization Combined Rent Program Staffing Budget Staffing Budget Staffing Budget
1/22/2025
Rules Comm.
Draft Rent Registry
Ordinance referred
to Council
~2 FTE ~$650K N/A N/A N/A N/A
3/17/2025
City Council
Rental Registry Ord.
2025-002 adopted
2 FTE
Approved
$650K
Approved N/A N/A N/A N/A
10/13/2025
City Council
Draft Rent
Stabilization
Ordinance and
prelim cost options
for comb program
2 FTE
Existing
$650K
Existing
Benchmark
~2 FTE
Enhanced
~3FTE
Benchmark
~$740K
Enhanced
~$956K
Benchmark
~4FTE
Enhanced
~5 FTE
Benchmark
~$1.4M
Enhanced
~$1.6M
12/15/2025
City Council
Council direction on
combined Rent
Program budget,
staffing & GF Loan
N/A N/A Passive Enf.
~0-2 FTE
Passive Enf.
~$500 - $750K
Basic Enf.
~4 FTE
Enhanced Enf.
~6 FTE
Basic Enf.
~$1M–$1.5M
Enhanced Enf.
~$1.3M–$2.2M
4/20/2026
City Council
Combined Rent
Program Budget,
Staffing, GF loan
N/A ~$1.4M
Revenue N/A ~$702K Revenue
6 FTE
Approved
$2,230,433
Approved
7 Updated budget / revenue projections reflect refined cost calculations based on 6 FTEs & updated cost data (i.e., salaries/benefits, software, indirect costs) informed by comparable program operations to administer an integrated & fully enforceable Rent Prog ram 8 Tier 1
1–30 days
Tier 2
31–89 days
Tier 3
90–119 days
Tier 4
120+ days
25%
50%
100%
150%
Proposed Tiered Late Penalties (updated)
First Cycle Waiver: Program Administrator may waive or reduce penalties
RECOMMENDED COUNCIL ACTIONS
CURRENT POLICY - §4-46-175(C)
✓Up to 50% of the Rent Stabilization
Program Fee may be passed through to
tenants
✓Charged in two equal installments, six
months apart
✓Cannot be included in Maximum
Allowable Rent calculation
PROPOSED AMENDMENT
✓ Prohibit fee pass-through option
✓ Property owners responsible for 100% of
Rent Stabilization Program Fee
✓ Any lease provision purporting to charge
tenants the fee is void and unenforceable
Elimination of Fee Pass-through
9 First reading: June 1, 2026 | Second reading: June 15, 2026 | Effective: July 15, 2026 Recommendation
Adopt a Resolution:
✓Approve a $2,230,500 General Fund loan with a maximum term of six years ✓4.03% interest (updated)
✓Establish FY27 Rent Program fees & late penalties & amend Master Fee Schedule (updated) ✓Approve NBS Rent Program Fee Study (updated)
Introduce an Ordinance:
✓Prohibiting the Rent Stabilization Program Fee Pass Through to Tenants (new) 10