b) Amend Just Cause provisions to
align with rent stabilization
Integration of administration and
enforcement across rent and eviction
policies may support coordination and
consistency
13. Tenant Rent
Subsidy Program
a) Do not establish a subsidy
program alongside the
ordinance
b) Establish a tenant subsidy
program alongside the
ordinance (e.g. Provide
assistance through direct aid,
emergency rental assistance, or
vouchers)
Typically administered separately from rent
stabilization programs
May complement rent stabilization by
addressing affordability beyond rent limits
Program design will require dedicated
funding and administrative structure
Updated Work Plan
The following narrative summarizes the status of the Rent Stabilization Program Work Plan as of March 2026. The overall target of ordinance adoption is July 2026 and full program launch in January 2027 remains the goal, though Council should note that the timeline for consultant procurement has introduced some compression in downstream phases. Staff will continue to manage the schedule closely and flag any adjustments needed as the project advances.
Upcoming Project Milestones
The following describes the key milestones and deliverables that staff anticipate completing through the remainder of the project, leading to ordinance adoption and program launch.
In the near term, staff and consultant team will continue to work on data analysis to determine the total number of units impacted by a Rent Stabilization Ordinance. The consultant has already begun a legal and policy scan of rent stabilization models implemented across California cities. The consultant will support staff in evaluating rental registry feasibility and structure, as well as a review of the Rental Housing Mediation Program and Access to Counsel expansion opportunities.
After Council direction is received on April 7, 2026, the City Attorney's Office will begin drafting the Rent Stabilization Ordinance, consistent with applicable state statutes and constitutional limitations. The draft ordinance will address definitions and covered units, exemptions, the allowable rent increase formula, notice requirements, petitions and appeals processes, enforcement and penalties, and data reporting and registry requirements. After comprehensive review by the internal City staff team, the draft Rent Stabilization Ordinance and accompanying fact sheets will be published for public review.
A 30- to 45-day public review window will be launched, during which staff will present at community meetings, events and listening sessions, as well as facilitate online public Council Agenda Report
Update on Development of a Rent Stabilization Program and Final Policy Direction from Council for Ordinance Draft
April 7, 2026
comment tools. The consultant will document and categorize the feedback received, and staff will prepare an initial response-to-comments matrix to guide the subsequent revision process.
During May 2026, staff will refine the draft ordinance based on public input and prepare the staff report and presentation for the Ordinance Committee. An internal implementation readiness assessment will also be completed during this phase, examining staffing needs, IT system requirements, and enforcement strategy. In June 2026, the draft ordinance will be presented to the Ordinance Committee for review and direction, with revisions incorporated as needed. The ordinance and rental registry component will also be presented to the Planning Commission for advisory review, and Planning Commission recommendations will be incorporated into the final draft. Staff will prepare the final Council staff report, Q&A briefs, and supporting materials for the Council adoption process.
The draft Rent Stabilization Ordinance is targeted for presentation to City Council at the end of June, with a second reading and final adoption to follow in July. Following ordinance adoption, the August through October 2026 period will focus on implementation planning, including staffing and training for program administration, development of the rental registry system, sustained support for the Access to Counsel program funding and partnerships, and procurement or expansion of mediation and enforcement resources. A comprehensive public education campaign will be developed and launched, covering landlord and tenant rights and responsibilities, registry onboarding instructions, enforcement mechanisms, and available repair incentives and mediation services.
Performance metrics and a reporting schedule will be established to enable ongoing program monitoring and evaluation. The Rent Stabilization Program is targeted for full launch in January 2027.
Alternative Path: November 2026 Ballot Measure
In addition to the Council-adopted pathway described throughout this report, it was raised during the community focus groups that Council may wish to consider placing a Rent Stabilization measure on the November 4, 2026 General Election ballot. Pursuing a ballot measure is an alternative method for the adoption of an ordinance– the two paths can be pursued in parallel up to the point of the Council resolution placing the measure on the ballot.
Direction on the key policy elements outlined in this report would be necessary whether the Council chooses to adopt an ordinance or place a measure on the ballot in November 2026. To place a measure on the November ballot, the Council would still need to review and finalize a draft ordinance in June that would then be forwarded to the County registrar of voters before the required deadlines for the November election.
Council Agenda Report
Update on Development of a Rent Stabilization Program and Final Policy Direction from Council for Ordinance Draft
April 7, 2026
BUDGET/FINANCIAL INFORMATION:
The initial costs for development of the Rent Stabilization Program are primarily associated with retaining the technical specialist/consultant to assist City staff with research, analysis, and ordinance drafting (not to exceed $65,105). Beyond the significant commitment of staff time from the City Administrator's Office, City Attorney's Office, Finance, and Communications, additional direct costs are not anticipated until implementation of the program. Implementation costs will be presented to Council as part of the fiscal impact analysis to be completed as part of Ordinance adoption.
Staff notes that the City is currently projecting a General Fund deficit of approximately $14.8 million in Fiscal Year 2027. Program design should therefore minimize ongoing administrative costs to the extent possible while maintaining effectiveness. Options such as using a professional hearing officer (rather than a full board), leveraging existing business tax certificate infrastructure for a rental registry, and phasing staffing additions will all be evaluated for cost efficiency. Potential funding mechanisms including program registration fees will also be analyzed.
PREPARED AND
SUBMITTED BY: Barbara Andersen, Sr. Assistant to the City Administrator APPROVED BY: Kelly McAdoo, City Administrator