San Pablo City Council Priority Work Plan
Overview of Rental Housing Regulations
City Council Meeting
July 1, 2025
City Manager’s Office
Economic Development & Housing Division
City Council Adopted Policies
HOUSING ACTION PLAN – KEY FOCUS AREAS:
Affordable Housing Strategy restated and adopted in the Council Priority Workplan on April 7, 2025:
2 ADOPTED HOUSING ACTION PLAN – KEY FOCUS AREAS:
Prioritize efforts on developing policy/program implementation on the following key focus areas for 2024-2031 Period, as follows:
• Complete Rumrill Corridor Plan and Amend the 23rd Street Specific Plan
• Provide incentives for High-Density Infill and Missing Middle Housing opportunities
• Preserve existing Deed-Restricted Affordable Housing Units • Partner with Community Land Trust
• Continue robust Residential Health and Safety (RH&S) Inspection Program to promote quality housing and eliminate substandard housing
• Continue Neighborhood Clean-Up and Vehicle Abatement Programs City Council Adopted Policies
3 1. Just Cause Eviction Protections (3-G)
• California law AB1482 provides protection from steep rent increases and SB567 puts further requirements on no fault just cause evictions.
• City to explore adopting an ordinance codifying these protections under the San Pablo Municipal Code.
2. Awareness of Fair Housing Programs (3-H)
• Surveys indicate that San Pablo residents are largely unfamiliar with fair housing programs available to them.
• City to explore community education campaigns to raise awareness on state law and resources available.
3. Relocation Fund
• San Pablo Municipal Code 8.05.03 requires Owners to pay relocation benefits to displaced T enants due to unsafe or hazardous living conditions. San Pablo Municipal Code 8.05.080 states that in the event the Owner fails, neglects or refuses to pay the displaced T enant, the City may, within budget limitations, make payment of such relocation benefits and recover it from the Owner. • City to explore establishing a T enant Relocation Fund for this purpose.
TENANT SUPPORT:
City Council Adopted Policies
4 4. T emporary Housing Fund
• The City receives calls from residents that have been unhoused through no-fault of their own asking for temporary housing assistance.
• City to explore establishing a T emporary housing Relocation Fund to provide funding/temporary housing for qualified residents.
5. Landlord –T enant Mediation Services
• The City receives calls for legal services for tenant disputes. • City to explore working with a non-profit legal services provider to help provide mediation for landlord and tenant conflicts and disputes.
• City to create a T enant page on the City website to link tenant resources.
TENANT SUPPORT Continued:
City Council Adopted Policies
5 NEW POLICY #310: (ADOPTED ON 4/07/25)
Rental Protections: Explore Policy Feasibility to Enhance Tenant Protections provided by the City to include:
a. Just Cause Eviction beyond State Law
(AB 1482 – CA Tenant Protection Act of 2019); and
b. New Anti-Harassment Protection Ordinance for Tenants City Council Adopted Policies
6 City Council Adopted Policies
7 #1-D Revise Multifamily Minimum Parcel Size
#1-E Facilitate Lot Consolidation
#1-G Reduced Parking Standards
#1-H Faith-Based Community Housing
#1-I Shopkeeper Housing
#2-F Mobile Home Park Conversion
#2-G Single-Room Occupancy Hotels
#3-A Housing for Extremely Low-Income Households and Special Needs Groups #3-B Emergency Shelters
#3-C Employee Housing
#3-D Zoning for Residential Care Facilities
#3-E Transitional and Supportive Housing
#3-J Low-Barrier Navigation Centers
#3-K Density Bonus
#3-M Definition of Family
Housing Related Zoning Code Updates Currently in Process by Staff City Council Adopted Policies
Rental
Housing
Regulations
Just Cause
Eviction
Regulations
Awareness of
Fair Housing
Programs
Relocation
Fund
Temporary
Housing Fund
Property Owner-
Tenant Mediation
(From May 29, 2025 EDHPM STANDING COMMITTEE REVIEW)
8 Community Development Department
Residential Health & Safety (RH&S) Inspection Program (Current) Rental Housing Regulation – Program Spotlight
Before
After 9
• Systematic inspection of all single family and multi-family residential rentals
• Inspection of all units upon point of sale. Inspections may also occur when property owner refuses tenant repair request. • Ensures rentals units comply with existing building, electrical, and plumbing code. This current program helps ensure that structures are safe for occupancy, improves & maintains housing stock and eliminates substandard housing.
Community Development Department
Residential Health & Safety (RH&S) Inspection Program (Current) Rental Housing Regulation – Program Spotlight
10 Work included:
• Kitchen and bathroom remodel
• Water heater replacement
• Window replacement
• Electrical alterations
• Damaged framing repair
All work was started without permits or required inspections.
W ithout the RH&S inspection, the home could ha ve been rented to a family without ass ura nce of sa fety or code complia nce!
RH&S inspection revealed unpermitted demolition and remodeling in progress at this house.
Before
After
Community Development Department
Residential Health & Safety (RH&S) Inspection Program (Current) Applicability:
• All For Sale Housing Units 10 years or Older
• All Rental Housing Units 3 years or Older
From 2022-2025:
• 216 Units Certified
• 154 Inspected but not Certified
• 54 Inspected and Signed a Resale Repair Agreement with the Buyer • 22 Notified but Delinquent to be Inspected
Rental Housing Regulation – Program Spotlight
11 Rental Housing Regulation – Program Spotlight
www.sanpabloca.gov/865/Residential-Health-Safety 12
Community Development Department
Residential Health & Safety (RH&S) Inspection Program (Current) Community Development Department
Rental Registry (Current)
Rental Housing Regulation – Program Spotlight
13 • On May 1, 2023, the City Council approved Resolution 2023-058 adopting the FY 2023-25 City of San Pablo City Council Priority Workplan, which included:
#308: Dedicate r esources to create a new r ental r egistr y (w/ fees to offset city costs) for available S an Pablo Housing Opportunities.
• On September 18, 2023, the City Council adopted Resolution 2023-138 approving the consulting services agreement with Hinderliter de Llamas & Associates (HdL) for Rental Registry Program implementation and administration services. • Scope of services includes:
• Rental property registration database management
• Renewal/update processing
• New account processing
• Payment posting/processing
• Rental support center
• On-line filing & payment processing
Rental Housing Regulation – Program Spotlight
14 Program Goals
1. Gather data to identify future housing policy, market trends, and rental housing supply needs.
2. Gather anecdotal data on rental housing assets City-wide.
3. Other benefits may include:
• Inform and influence future housing and community development policies • Identify households at risk of displacement (i.e. rent hikes or evictions) • Identify and address substandard housing and community health and safety concerns • Provide a better, prospective rental acquisition landscape in a community Community Development Department
Rental Registry (Current)
Rental Housing Regulation – Program Spotlight
15 • The Rent Registry Ordinance requires property owners register rental information regarding residential rental properties with the City. • Housing providers are required to annually register every rental unit that is subject to the ordinance via website, email, mail or fax. • Registration and renewals include rental property information, property owner information, rental unit tenancy changes, and other information deemed necessary.
Community Development Department
Rental Registry (Current)
Rental Registry
Rental Housing Regulation – Program Spotlight
16 Program Launched on July 1, 2024
Program status as of June 11, 2025
License Status Total Number of
Accounts
None (Non-compliant) 661
Current (Compliant) 925
In Progress 198
Grand Total 1784
Percentage of Non-Compliance for
Landlord Registration 37%
*A full report on the Rent Reg is try is sla ted for a future E DHP M S tanding Committee this summer .
On May 7, 2024, the EDHPM
Standing Committee recommended
staff to proceed with engaging RSG,
Inc. to produce a report to analyze
various elements and fiscal impacts
of a potential Rent Stabilization and
Rental Regulations program.
Findings from RSG, Inc. Fiscal Analysis on Rent Stabilization 17 • A rent stabilization program would support the City’s Housing Element by advancing several goals and policies related to housing affordability and stability. • Rent stabilization does not contribute toward meeting the City’s Regional Housing Needs Allocation (RHNA) production goals by 2031, as it does not create new deed-restricted affordable units.
• Limiting rental income may discourage future development and investment of both market-rate and affordable housing.
• Research and case studies show that rent stabilization policies can have both positive
and negative impacts including tenant stability, housing quality, and the relationships between housing providers and tenants.
Findings from Fiscal Analysis on Rent Stabilization
RSG Report, 2024
18 Potential Positive Impacts
of a San Pablo Rent Stabilization Program
Income Stability for Tenants and Long-Term Investors
• Predictable, steady rent increases may appeal to tenants and risk-averse landlords. • May result in lower tenant turnover resulting in reduced vacancy and marketing costs.
Supports Long-Term Tenancies
• May result in less movement.
• May foster stronger neighborhood ties.
Can Support Broader Affordability Goals
• When paired with other policies, rent stabilization may support vulnerable renters. • May enhance the perception of a commitment to housing affordability and stability. 19 Potential Negative Impacts of a
San Pablo Rent Stabilization Program
Reduced Incentives, less Development in San Pablo
• Lower profit margins may discourage new rental housing projects, negatively impacting RHNA. • Developers may prioritize nearby cities without rent caps negatively impacting RHNA. • Housing providers may exit the market, reducing rental supply.
Decreased Property Values
• Rent caps reduce income potential, leading to lower property appraisals. • Investor demand and valuations for rent-controlled buildings may be reduced.
Less Investment in Maintenance
• Limited rent increases can limit funds available for safety upgrades or needed repairs. • Risk of declining housing quality over time, increased blight, crime & code enforcement cases.
Reduced Turnover & Unit Availability
• Rents not based on tenant income and reduces incentives to move and free up the unit. 20 Findings from Fiscal Analysis on Rent Stabilization
• The estimated fiscal impact of a Rent
Stabilization and Tenant Protection
ordinance includes the creation of a new
City-funded Department/Division and
approximately $1.21m and an estimated five
(5) full-time staff members needed to
administer the new program annually.
• Programs in Cities of Alameda, Berkeley,
Hayward, Richmond, and East Palo Alto
were analyzed.
RSG Report, 2024
21 Findings from Fiscal Analysis on Rent Stabilization
Resources Needed:
New Department/Division consisting of;
• At least Five (5) FTEs:
• (1) Program Manager
• (2) Management Analysts
• (2) Administrative Clerks
Start-up costs & resources:
• New webpage
• Drafting program documents
• Outreach to educate housing providers
and tenants
RSG Report, 2024
Rent Stabilization Program Requirements
22 Findings from Fiscal Analysis on Rent Stabilization
Resources Needed:
New Department/Division consisting of;
• At least Five (5) FTEs:
• (1) Program Manager
• (2) Management Analysts
• (2) Administrative Clerks
Start-up costs & resources:
• New webpage
• Drafting program documents
• Outreach to educate housing providers
and tenants
First year costs & resources include:
• Legal consultation fees, staff training, office
setup, public awareness campaigns,
professional services, printing and
distribution, software licensing, community
workshops and translation services.
Ongoing costs & resources:
• Reviewing tenant petitions, holding hearings
and monitoring compliance.
RSG Report, 2024
Rent Stabilization Program Requirements
23 Potential City Fiscal & Administrative Impacts
24 Fiscal Analysis on Existing Rent Stabilization Programs The table above compares the administrative components of each rent stabilization program and program cost. 25 Fiscal Analysis on Existing Rent Stabilization Programs The table above compares the administrative components of each rent stabilization program and program cost. 26 Findings from Fiscal Analysis on Rent Stabilization
City of San Pablo
27 Findings from Fiscal Analysis on Rent Stabilization
±420
±1,424
±1,424
City of San Pablo
28 Findings from Fiscal Analysis on Rent Stabilization
±420
±1,424
±1,424
• Local Rent control does not apply to:
• Single-Family homes or condos
• Units built after 1995
• Units vacated by tenants (which can
reset to market rate)
• Per Costa Hawkins State Law
• Mobile Homes/Trailers/Boats/RV
City of San Pablo
29 Statewide Rent Control
California Protection Act (AB1482, 2019)
Rent Cap:
• Limits annual rent increases to 5% + CPI, not to exceed 10% total per year. • Currently, 8.4% allowable rent increase in San Pablo
• Effective on or after August 1, 2025, the maximum allowable rent increase in Contra Costa County is 6.3%
Just Cause Eviction Protections:
• After 12 months of tenancy, landlords must provide a valid reason for evictions (e.g., non- payment, breach of lease, owner move-in)
Applies To:
• Multi-family units 15 years or older
• Some single-family homes owned by corporations or Real Estate Investment Trusts Exemptions:
• New construction (<15 years old)
• Single-family homes/condos owned by individuals (with proper disclosure) • Affordable housing and government-subsidized units
30 San Pablo Rental Market
City Average Rent
San Pablo $2,000
Richmond $2,100
El Cerrito $2,500
Pinole $2,175
Hercules $1,700
Data Source: Zillow, May 11, 2025
The average rent across the five (5) cities is approximately $2,095.
All Rentals – May 11, 2025
31 San Pablo Rental Market
Data Source: Zillow, May 11, 2025
All Rentals – May 11, 2025
Data Source: Zillow, May 11, 2025 32
*San Pablo average rent $2,000/month
Existing California State Rent Control (with 2025 CPI, effective 8/1/25) $2,000/month + 6.3% max annual increase is $126 = $2,126 33 Findings from Fiscal Analysis on Existing State Rent Control Compared to Potential Local Rent Stabilization
*Existing state Rent Cap is 8.8% until 7/31/25 per https://oag.ca.gov/tenants Existing California State Rent Control (with 2025 CPI, effective 8/1/25) $2,000/month + 6.3% max annual increase is $126 = $2,126 Potential Local Rent Stabilization Program
$2,000/month + 5% max annual increase is $100 = $2,100
34 Findings from Fiscal Analysis on Existing State Rent Control Compared to Potential Local Rent Stabilization
*San Pablo average rent $2,000/month
*Existing state Rent Cap is 8.8% until 7/31/25 per https://oag.ca.gov/tenants Existing California State Rent Control (with 2025 CPI, effective 8/1/25) $2,000/month + 6.3% max annual increase is $126 = $2,126 Potential Local Rent Stabilization Program
$2,000/month + 5% max annual increase is $100 = $2,100
35 Findings from Fiscal Analysis on Existing State Rent Control Compared to Potential Local Rent Stabilization
Cost-Benefit Analysis:
5 Staff and $1.21million annually expended for $26 difference *San Pablo average rent $2,000/month
*Existing state Rent Cap is 8.8% until 7/31/25 per https://oag.ca.gov/tenants POLICY #405.2 ADOPTED ON DECEMBER 16, 2024 DUE TO CITY’S
CURRENT FISCAL CONDITION & LACK OF REVENUE CAPACITY
Adopt a New Fiscal Discipline and Financial Practice to minimize new General Fund spending on any new program or service without a new, Fiscal Impact Analysis conducted by City Staff, including funding options, while maintaining existing city service delivery and budgeted FTE staffing levels in the adopted FY 2024-25 Class and Comp Plan until June 30, 2027, or until the City generates a total of +$1,000,000 in new, net increase in annual General Fund revenue capacity.
Potential City Fiscal Impacts
36 The City has other pressing budget and fiscal priorities once a net increase of +$1M is generated in new GF revenue capacity (per existing Policy #405.2) under consideration:
PRIORITY AREA #1: Vacant/Non-Budgeted FTE Staffing (+$1.2M est.) • (Funding deferred as a FY 2024-25 & 2025-26 budget balance measure on 05/20/24) Position Classification Need: Department:
(1.0) FTE Community Services Program Coordinator II (COMMUNITY SERVICES) (1.0) FTE Police Services Technician (POLICE)
(1.0) FTE Police Services Clerk (POLICE)
(1.0) FTE Senior Environmental Program Analyst (PUBLIC WORKS) (1.0) FTE Environmental Analyst (PUBLIC WORKS)
Opportunity Cost of Funding $1.2M in New Programs
37 The City has other pressing budget and fiscal priorities once +$1M is generated in new GF revenue capacity (per existing Policy #405.2) under consideration:
PRIORITY AREA #2: Funding NEW FTE Staffing Positions (+$1.2M est.) • (Potential new FTE Staffing Investments once new GF revenue identified**) Position Classification Need: Department:
(2.0) New FTE Building/Housing Inspector (COMMUNITY DEVELOPMENT) (2.0) New FTE Code Enforcement Officer II/I (COMMUNITY DEVELOPMENT) (2.0) New FTE Maintenance Worker II/I (PUBLIC WORKS)
(**NOTE: Subject to funding availability and collective bargaining after June 30, 2027) Opportunity Cost of Funding $1.2M in New Programs
38 The City has other pressing budget and fiscal priorities once +$1M is generated in new GF revenue capacity (per existing Policy #405.2) under consideration:
PRIORITY AREA #3: Debt Service Capacity for new CIP Bond Issuance (+1.2-2.0M est.)** • New Potential Bond Issuance: $18 - 23M est.
• New Capital Bond Proceeds for Critical CIP Infrastructure Funding:
(1) McNeil Park Funding Shortfall CIP Funding Need: ($3.3M) (2) San Pablo Dam Road Pavement Rehab Project CIP Funding Need: ($2.5M) (3) SP Ave Bridge/23rd St. Replacement Project CIP Funding Need: ($9.0M) (4) SPDR/I-80 Interchange Project Phase II (City contribution) CIP Funding Need: ($2.5M) (5) Annual City-wide Pavement Rehab/Slurry Projects CIP Funding Need: ($3.0M) (6) Rollingwood Community Center (ADA+UBC Upgrades) CIP Funding Need: ($2.5M) (**NOTE: Based on bond market conditions, costs of bond issuance, and low-interest rates) Opportunity Cost of Funding $1.2M in New Programs
39 Nearby Impacts of Rent Control Regulations
Annual Rent Increase Cap for Multifamily Complexes Built Before February 1995.
Allowable annual rent increase is set at 5%. This replaces the prior cap of 3% or 60% of the Consumer Price Index (CPI), whichever was lower. Approved 4/22/25 40 City of Concord Modifies Rental Control Program
Nearby Impacts of Rent Control Regulations
The Richmond Rent Program is facing a $277,698 deficit due to a growing number of delinquent rental unit fees and overhead charges levied by the City of Richmond.
May 09, 2024 41
City of Richmond General Fund Required to Subsidize Rent Program Compliance & Enforcement
City is Responsible for Implementing Policies & Programs In their Adopted Housing Element
• City Council Adopted 56 Housing Action
Policies & Programs for Staff to Implement
42 Compliance & Enforcement
City is Responsible for Implementing Policies & Programs In their Adopted Housing Element
• City Council Adopted 56 Housing Action
Policies & Programs for Staff to Implement
• SB 1037, that court must subject violating
city’s to a minimum civil penalty of $10,000
per month, and not to exceed $50,000 per
month, for each violation, accrued from
the date of the violation until the date the
violation is cured.
43 44
Proposed Staff Recommendations
Rental Regulations
1). Authorize the City Manager/staff to prioritize implementation of existing adopted rental housing regulation policies/programs contained in the adopted FY 2025-27 Council Priority Workplan (updated as of April 7, 2025); and
2). Authorize the City Manager/staff to prioritize the implementation of all 56 Housing Action Plan programs identified under the City’s Housing Element certified by State HCD in March 2024; and
3). Authorize the City Manager/staff to prioritize seeking additional GF budget capacity and support for the existing rental housing regulations adopted in the FY 2025-27 Council Priority Workplan (as of April 7, 2027), as follows:
• Residential Health & Safety Inspection Program, Rent Registry, Mediation, Tenant Relocation Assistance
45 Additional City Council Policy Considerations
Rent Stabilization
A). Direct the City Manager to submit and draft amendment to the FY 2025-27 Council Priority Workplan to meet and partner with established housing policy experts and impacted stakeholders (i.e. CCAR, ACCE, Rising Juntos, CAA, California YI MB Y,etc.) to enhance community awareness, education and outreach on rental regulations and rent stabilization, including but not limited to the following:
• AB 1482 California T enantProtection Act (ACCE Supported) Education and Awareness • T enants’Rights and Responsibilities
• Home Ownership Opportunities with SPEDC Programs
• Housing Counseling and T enantLegal Services
• Cost-neutral Rental Regulations and Rent Stabilization policies • Community polling of community at-large and electorate on rental regulations and rent stabilization with Strategy Research Institute (SRI, Inc.)
B). Direct the City Manager to submit and draft amendment to the FY 2025-27 Council Priority Workplan to authorize the City Manager/staff to proceed with conducting supplemental comparative and impact analysis with a qualified third-party consultant (i.e. RSG) on policy options for additional Rental Housing Regulations Programs (i.e. Rent Stabilization, Rent Review and Mediation Program in the City of Fremont).
Discussion
46