TEMPORARY RENT INCREASE MORATORIUM
The proposed temporary rent increase moratorium would apply only to units that are subject to local regulation under the Costa-Hawkins Rental Housing Act (Cal. Civ. Code §§ 1954.50 – 1954.535). It would not apply to any of the following rental units:
Units for which a certificate of occupancy was issued after February 1, 1995. Rental units that are alienable separate from title to any other dwelling unit or is a subdivided interest in a subdivision (e.g. single-family dwellings and most condominium units).
Temporary occupancies in hotels, motels, inns, tourist homes, lodging and rooming houses and boarding houses, or other similar temporary lodgings. Institutional housing such as rental units in a hospital, convent, monastery, extended medical care facility, dormitory, or transitional housing facility. Rental units owned, operated, or managed by a public agency or not-forprofit organization and subject to a recorded covenant or other restriction that limits rental of the unit to rents affordable to low- or moderate income households.
Government operated rental units exempt from municipal rent control by applicable federal or state law.
Rental units under the Federal Section 8 program or similar rent subsidy program where the tenant's portion of the rent is determined based on their household income and a specific formula so long as the rent demanded does not exceed the authorized payment standard minus the applicable utility allowance as determined by the City or the City Housing Authority. Temporary short term vacation rentals, when permitted.
See Section 2 of the proposed ordinance for full details regarding application.
The proposed ordinance would prohibit a landlord from increasing the base rent of a unit until December 31, 2026, or on the operative date of a permanent rent stabilization program as established pursuant to ordinance, whichever is earlier. The current timeline for consideration and adoption of a rent stabilization ordinance contemplates adoption this coming summer. Base rent is defined in Section 3 of the proposed ordinance as either: (1) the rent for a rental unit in effect on December 16, 2025, for tenancies commencing on or before December 16, 2025, or (2) the rental rate established upon initial occupancy of a rental unit for tenancies commencing after December 16, 2025, provided the rental rate is established in accordance with state law. It is recommended that the base rent per these two definitions be used for the determination of lawful rent under a future permanent residential rent stabilization program. Further, to address the gap between the December 16, 2025 and the effective date of the temporary rent increase moratorium ordinance, when rent for an existing tenant is lawfully increased before the effective date of the moratorium ordinance, then the amount of the increase would be Council Agenda Report
Tenant Protection – Temporary Rent Increase Moratorium Ordinance and Ordinance Adding Requirements for Just Cause “Ellis Act” Evictions [Ordinance Introduction; Ordinance Adoption]
January 13, 2026
counted against future rent increases authorized under a future rent stabilization program when adopted.
The proposed ordinance broadly defines rent to include all periodic payments under a rental housing agreement concerning the use or occupancy of a rental unit, including all payments and other consideration demanded or paid for housing services. Rent does not include refundable security deposits or avoidable fees imposed by a landlord such as fees for late payment of rent or for checks returned for insufficiency of funds. The proposed ordinance also broadly defines “housing services.” Thus, if rent for a rental unit includes housing services, then any reduction of such services or initiation of a requirement for direct payment by a tenant to a service provider (e.g. new requirement for direct payment by tenant to a utility service provider) is considered a rent increase unless there is a corresponding reduction in rent paid to the landlord
The proposed ordinance includes findings to allow the ordinance to be adopted as an emergency measure to take effect immediately. Under the City’s charter, an emergency measure requires five affirmative votes for adoption and the ordinance must be read in full at the time of adoption. Alternatively, the ordinance may be adopted by the regular procedure of introduction after reading of title only and subsequent adoption. The regular process requires four affirmative votes for adoption and the ordinance will take effect 30 days after adoption. However, as mentioned previously, regardless of the effective date, if a landlord increases the rent for a rental unit after December 16, 2025, but before the effective date of the proposed ordinance, the base rent for the unit will not change and the amount of the increase will be counted against future rent increases authorized under the future rent stabilization program if and when adopted.
ADDITIONAL REQUIREMENTS FOR JUST CAUSE “ELLIS ACT” EVICTIONS Government Code Sections 7060 – 7060.7 (commonly known as the “Ellis Act”) generally precludes cities and counties from adopting laws or regulations that compel an owner of any residential real property to offer, or continue to offer, accommodations in the property for rent or lease. The legislation was adopted to overturn and supersede a California Supreme Court holding in Nash v. City of Santa Monica (1984) 37 Cal. 3d 97, which essentially provides a statutory right of landlords to get out of the rental housing business.
Thus, for example, Santa Barbara Municipal Code Chapter 26.50 defines a no-fault just cause eviction to include: “The owner seeks in good faith to recover possession to permanently withdraw the rental unit from the rental market. The notice of termination must be filed with the Community Development Department when it is given to the tenant and must specify the intended use of the unit and the lot on which the rental unit is located.”
The proposed ordinance amending Chapter 26.50 would add two additional requirements consistent with the Ellis Act.
Council Agenda Report
Tenant Protection – Temporary Rent Increase Moratorium Ordinance and Ordinance Adding Requirements for Just Cause “Ellis Act” Evictions [Ordinance Introduction; Ordinance Adoption]
January 13, 2026
First, the ordinance would prohibit a landlord from removing from the rental market less than all of the rental units the landlord owns on a property. Notices of termination would be required to be given concurrently to all tenants, provided, however, that eviction dates stated in the notices may vary to coincide with the termination dates of leases or rental agreements of affected tenants. All evictions would be required to comply with Chapter
26.50 and be completed within one year.
Second, when an owner has recovered possession to permanently withdraw the property from the rental market, then the property may not be used for residential rental purposes for a period of 5 years following the date of the last eviction.
The proposed ordinance would apply to proceedings to terminate a tenancy or recover possession of a unit that has not been fully completed before the effective date of this ordinance. The proposed ordinance is recommended for adoption using the standard procedure – first reading, adoption, and then to become effective 30 days following adoption.
ENVIRONMENTAL REVIEW
This ordinance is not subject to environmental review pursuant to CEQA Section 15060(c)(3) pertaining to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and Section 15061 (b)(3), the common sense exception, because the ordinances have no potential for resulting in a physical change to the environment directly or indirectly in that it merely regulates existing physical development.
PREPARED BY: Daniel S. Hentschke, Assistant City Attorney SUBMITTED BY: John S. Doimas, City Attorney
APPROVED BY: Kelly McAdoo, City Administrator
1 ORDINANCE NO. _____
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
SANTA BARBARA ESTABLISHING A TEMPORARY RENT
INCREASE MORATORIUM DURING THE PREPARATION,
CONSIDERATION, AND POTENTIAL ADOPTION OF A
PERMANENT RENT STABILIZATION PROGRAM
THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:
SECTION 1. Findings and Determinations. The City Council finds and determines as follows:
A. Safe, decent, affordable, and sanitary housing is a human necessity and right.
B. The City Council reaffirms its General Plan Housing Element goal, first stated in 2005, of “ensuring affordable housing opportunities for all economic levels in the community, while protecting the character of established neighborhoods.” (2015 Housing Element, p.57.) There is a critical shortage of low and moderate income housing within the City and on the south coast of Santa Barbara County. The City Council recognizes that providing a wide range of housing options is important to maintain an economically viable and socially diverse population, and to retain and house the City’s local workforce.
The City’s General Plan Housing Element identifies renter-occupied housing units as comprising nearly 60% of the housing available in the City. (2015 Housing Element, p.26.) The Housing Element also documents that given local housing costs, nearly 44% of all households and almost 50% of renters are over-paying for housing. (2015 Housing Element, p.50.) Both the total percentage of City renters and the percentage of City renters overpaying for housing are higher than statewide averages. Therefore, the City Council desires to establish reasonable protection for City residents living in rental housing that recognize the important role that rental housing plays in the provision of affordable housing.
C. The City Council has previously adopted laws establishing reasonable protection for City residents living in rental housing including: Santa Barbara Municipal Code Chapters 26.06 (establishing mobile home park lease regulations, including rent control), 26.40 (requiring one-year lease offers to residential tenants), 26.50 (requiring just cause for residential evictions), and 26.60 (protecting tenants from harassment and other abusive conduct).
D. On December 16, 2025, the City Council reviewed a comprehensive presentation and staff report outlining a proposed work plan for the development of a permanent residential rent stabilization program consistent with the limitations imposed 2 by state and federal law. The City Council provided preliminary feedback on the proposed program, which includes a timeline for consideration and adoption of a rent stabilization ordinance in the summer of 2026. The City Council also took action directing staff to prepare appropriate ordinances to establish a temporary rent increase moratorium during the development and consideration of permanent rent stabilization regulations and to make certain amendments to Santa Barbara Municipal Code Chapter 26.50. The motion included direction to explore legal options to provide effective rent relief at the earliest possible date.
SECTION 2. Application.
A. This ordinance applies to all residential rental units in the City for which a certificate of occupancy was issued on or before February 1, 1995, except:
1. Rental units that are alienable separate from title to any other dwelling unit or is a subdivided interest in a subdivision, as specified in subdivision (b), (d), or (f) of Section 11004.5 of the California Business and Professions Code. This exception does not apply to rental units that are described in subdivision (a)(3(B) of Section 1952.52 of the California Civil Code.
2. Rental units in hotels, motels, inns, tourist homes, lodging and rooming houses and boarding houses, or other similar temporary lodgings provided that at such time as an accommodation has been occupied as the primary residence of one or more of the same tenants for any period more than 30 days such accommodation shall become subject to this ordinance. The computation of the 30 days shall include days in which the Tenant was required to:
(a) Move into a different guestroom or efficiency unit before the expiration of 30 days occupancy; or
(b) Check out and re-register before the expiration of 30 days occupancy if a purpose was to avoid application of this ordinance, or (c) Enter into successive or overlapping rental agreements, extensions, or renewals, whether for the same or a different unit, before the expiration of 30 days occupancy.
3. Rental Units in any hospital, convent, monastery, extended medical care facility, asylum, non-profit home for the aged; dormitory owned and operated by an accredited institution of higher education, or rental units in a facility that has the primary purpose of operating a treatment or recovery program, where such rental units are provided incident to a client's participation in the treatment or recovery program and where the client has been informed in writing of the temporary or transitional nature of the housing at the inception of his or her participation in the program. 3 4. Rental units owned or operated or managed by a public agency or not-forprofit organization and subject to a recorded covenant or other restriction that limits rental of the unit to rents affordable to low- or moderate income households.
5. Rental units which a government unit, agency or authority owns, operates, or manages, if applicable federal or state law or administrative regulation specifically exempt such units from municipal rent control.
6. Rental units leased to tenants assisted under the Section 8 program (42 U.S.C. Section 1437f) or the Continuum of Care Rental Assistance (42 U.S.C. 11381 et. seq.) or similar rent subsidy program where the tenant's portion of the rent is determined based on their household income and a specific formula. This exemption applies only for so long as the rent demanded does not exceed the authorized payment standard minus the applicable utility allowance as determined by the City the Housing Authority of the City of Santa Barbara, as applicable.
7. Permitted short term vacation rentals for a rental period of 30 days or less.
SECTION 3. Definitions.
The following definitions apply to the interpretation of this ordinance:
Base rent. Base rent means either: (1) the rent for a rental unit in effect on December 16, 2025, for tenancies commencing on or before December 16, 2025, or (2) the rental rate established upon initial occupancy of a rental unit for tenancies commencing after December 16, 2025, provided the rental rate is established in accordance with state law.
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, utility charges that are paid by the landlord, refuse removal, furnishings, telephone, parking, common areas, recreational facilities, the right to have a specified number of occupants, and any other benefit, privilege, arrangement, or facility provided or contracted for in connection 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, predecessor, or successor of any of the foregoing.
Rent. All periodic payments under a rental housing agreement concerning the use or occupancy of a rental unit, including all payments and other consideration demanded or paid for housing services. Rent does not include refundable security 4 deposits or avoidable fees imposed by a landlord such as fees for late payment of rent or for checks returned for insufficiency of funds.
Rental unit. Any building or structure, or part thereof, or land appurtenant thereto, or any other property rented or offered for rent for residential purposes, whether or not such unit possesses a valid certificate of occupancy for use as rental housing, together with all housing services connected with use or occupancy of such property.
SECTION 4. Temporary prohibition of rent increases.
A. So long as this ordinance is in effect, a landlord shall not increase the base rent of a rental unit.
B. If rent for a rental unit includes housing services, then any reduction of such services or initiation of a requirement for direct payment by a tenant to a service provider (e.g. new requirement for direct payment by tenant to a utility service provider) is considered a rent increase unless there is a corresponding reduction in rent paid to the landlord.
C. It is the City Council’s intent to use the base rent as defined in this ordinance as the stabilized reference for the determination of lawful rent under the permanent residential rent stabilization program described in Section 1. D. of this ordinance.
Therefore, if a landlord increases the rent for a rental unit after December 16, 2025, but before the effective date of this ordinance in accordance with applicable law, the base rent for the unit will not change and the amount of the increase will be counted against future rent increases authorized under the rent stabilization program when adopted.
SECTION 5. Expiration. This ordinance automatically expires on December 31, 2026, or on the operative date of a permanent rent stabilization program as established pursuant to ordinance, whichever is earlier.
SECTION 6. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance or any part hereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance of any part hereof. The City Council declares that it would have passed each section, subsection, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional.
SECTION 7. CEQA. The City Council finds that, on the basis of the whole record and exercising its independent judgment, this ordinance is not subject to environmental review pursuant to the State Guidelines for Implementation of the California Environmental Quality Act Sections 15060(c)(3) pertaining to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and 15061 (b)(3) because this ordinance has no potential for resulting in physical change to the environment directly or indirectly in that it merely regulates existing physical development. 5 SECTION 8. Emergency Measure Finding. This ordinance is necessary as an emergency measure for the immediate preservation of the public peace, health, or safety under City Charter Section 511. The City is currently experiencing a local homelessness emergency and suffering an acute shortage of affordable housing. Housing insecurity experienced by tenants is heightened by rent increases, including rent increases regulated by California Civil Code Section 1947.12. The City’s older multi-unit housing stock, which are the units regulated by this ordinance, are a substantial portion of the City’s affordable rental housing inventory. Immediate limitations on rents of such units is necessary to preserve the public health and safety and prevent displacement of residents who comprise a substantial portion of the community workforce.
INTRODUCTION DRAFT 1/13/26
1 ORDINANCE NO.
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING THE SANTA BARBARA
MUNICIPAL CODE BY THE ADDITION OF SECTION
26.50.100 RELATING TO ADDITIONAL REQUIREMENTS
FOR JUST CAUSE EVICTIONS FOR THE PURPOSE OF
PERMANENTLY REMOVING A UNIT FROM THE RENTAL
MARKET
THE CITY COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:
SECTION 1. Chapter 26.50 of Title 26 of the Santa Barbara Municipal Code is amended to add Section 26.50.100 as follows:
26.50.100. Additional Requirements and Limitations Applicable to Just Cause Evictions to Permanently Remove a Rental Unit from the Rental Market.
A. This Section applies to no-fault just cause evictions to recover possession to permanently withdraw a rental unit from the rental market.
B. An owner shall not withdraw from the rental market less than all of the rental units from a property. Notices of termination shall be given concurrently to all tenants, provided, however, that eviction dates stated in the notices may vary to coincide with the termination dates of leases or rental agreements of affected tenants. All evictions must be in accordance with this Chapter and completed within one year.
C. Property that has been withdrawn from the rental market pursuant to this Chapter may not be used for residential rent purposes for a period of 5 years following the date of the last eviction under subsection B.
SECTION 2. The provisions of this Ordinance shall apply to proceedings to terminate a tenancy or recover possession of a unit that has not been fully completed before the effective date of this Ordinance. If a final judgment awarding possession of a INTRODUCTION DRAFT 1/13/26
2 unit has not been entered or the owner has not otherwise lawfully obtained possession of a unit under Chapter 26.50 of the Santa Barbara Municipal Code as it existed before the effective date of this Ordinance, then the owner must comply with the provisions of this Ordinance, including giving a new notice of termination, before termination of the tenancy or recovery of possession of a unit.
SECTION 3. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Chapter or any part hereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this Chapter of any part hereof. The City Council declares that it would have passed each section, subsection, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional.
SECTION 4. The City Council finds that, on the basis of the whole record and exercising its independent judgment, this Ordinance is not subject to environmental review pursuant to the State Guidelines for Implementation of the California Environmental Quality Act Sections 15060(c)(3) pertaining to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and 15061 (b)(3) because this Ordinance has no potential for resulting in physical change to the environment directly or indirectly in that it merely regulates existing physical development.