1 Published May 7, 2025
Preventing Displacement from
Substandard Conditions and Associated
Code Enforcement Activities
Substandard conditions and physical deterioration of
buildings are significant concerns in the region. Where rental housing stock and unsubsidized affordable housing units do not meet code standards, these conditions can
create health and safety risks for tenants and can lead to condemnation, abandonment and/or demolition of
housing units. The remediation of substandard conditions in unsubsidized affordable housing is not only necessary to preserve this housing but also represents an important anti-displacement strategy. Code enforcement programs
need to ensure habitability issues and needs for
substantial property repairs do not lead to the permanent displacement of tenants. The programs also need to
require maintaining housing stability for tenants during any temporary displacement necessary for repairs. Code
enforcement and other programs to address substandard
conditions need to be centered in an anti-displacement
framework, otherwise these activities can lead to
the immediate displacement of vulnerable tenants if
properties are deemed uninhabitable. An effective
program which prevents the loss of housing stock due to code issues provides public support to landlords and low- income homeowners to maintain their properties.
Legal Context
What Does State Law Require?
California Health & Safety Code defines substandard
conditions, outlining what are considered inadequate
sanitation or structural hazards. When a jurisdiction receives a complaint, they are required to inspect the building, document findings, prescribe a remedy to the property owner and schedule a reinspection. Tenants cannot be required to vacate unless code compliance requires demolition or substantial repair.
At-A-Glance
RELEVANT STATE LAWS
California Health & Safety
Code Sections 17920.3, 17970 –
17972, 17980 – 17992
POTENTIAL FUNDING
SOURCES
• Community Development
Block Grant (CDBG) funds
• General Fund
• Housing Trust funds
COST
Low
ADMINISTRATIVE BURDEN
Medium
Staff capacity needed for
designing and overseeing
program and leading public
and legislative processes.
WHICH P?
Preservation
POTENTIAL PARTNERS
• Property Owner
Associations
• Community-based
organizations
• Nonprofits specializing
in home repair and
modifications
OPTION FOR TOC POLICY
COMPLIANCE?
Yes!
CODE ENFORCEMENT 2
How Can Jurisdictions Implement
Programs That Go Beyond State Law?
Jurisdictions can implement programs that
allow amnesty for property owners legalizing
unpermitted units and provide loans, grants or
fee waivers for property owners experiencing
financial hardship or located in neighborhoods
with high displacement-risk.
Program Design, Implementation and Evaluation Considerations Elements of the Program
• Outreach and education for both property
owners and tenants
• Support and resources for property owners,
such as programs that provide a pathway to
legalization for unpermitted units, amnesty
fee waivers and financial assistance for low-
income property owners
• In the case of financial assistance programs,
clearly defined eligibility criteria and
minimum/maximum loan or grant amounts
• Program enforcement and monitoring
• Interdepartmental coordination
Program Design Considerations
Jurisdictions may want to consider the
following:
AMNESTY PROGRAMS: Assisting property
owners with legalizing unpermitted rental
units. Jurisdictions can waive fines, fees and
penalties in exchange for protecting tenant
housing stability. Amnesty programs can assist
low-income property owners with bringing
substandard units up to code or legalizing
unpermitted units in exchange for agreements
to continue renting to the existing tenant at an
affordable rent.
HABITABILITY PLANS: Requiring landlords
to provide habitability plans during the
code compliance process to prioritize timely
building repairs. Habitability plans serve
as commitments between landlords and
the jurisdiction to protect tenants from
displacement and preserve affordability.
They can include progress updates to
tenants, commitments to continue renting
the unit to the existing tenant and relocation
compensation.
FINANCIAL ASSISTANCE FOR LOW-INCOME
PROPERTY OWNERS: Providing assistance to
address deferred maintenance and preserve
affordable housing. This financial assistance can
include:
• Low-interest or no-interest loans, forgivable
loans or grants to low-income homeowners
• Special considerations for low-income senior
property owners, or property owners in
vulnerable neighborhoods
• Home repair funds through Community
Development Block Grants, Housing Trust
Funds or other local sources
• Loans for habitability, energy savings or cost
savings
PROGRAM ELIGIBILITY: Targeting households
at or below a specific income level. Some
jurisdictions provide special considerations
for low-income senior homeowners and/or
homeowners with disabilities.
PROPERTY OWNER EDUCATION: Providing
clear, easy-to-understand information about
property owners’ responsibilities. Partnering
with property owner associations and providing
translated materials to help ensure the
information is clear, accessible and reaches a
wide audience.
Program Implementation,
Administration and Enforcement
A well-developed system for education and
outreach, implementation assistance, and
monitoring and enforcement is critical for
protecting vulnerable residents.
CODE ENFORCEMENT 3
Partnerships with non-profit service providers
can reduce the cost and administrative
commitment required for code enforcement
programs, while simultaneously improving
program reach and accessibility. Nonprofit
organizations can also administer support
programs for property owners and may be able
to access additional grant funding.
Outreach and education efforts can be
developed and carried out with partners to
ensure that both property owners and tenants
understand the law, their rights and obligations,
and available resources. Creative outreach
strategies developed with community partners
can supplement traditional outreach channels,
such as jurisdiction websites.
Monitoring is necessary to ensure landlord
compliance with requirements for both
assistance programs and enforcement actions,
including repeated inspections.
Monitoring plans should account for ongoing
tenant support, such as options to monitor
landlord responses to a tenant’s request
for information or resources promised in a
habitability plan.
Enforcement mechanisms should be clear
and consistently applied, with penalties
should landlords fail to comply with either
requirements for assistance or repairs. This
could include fines, limits on rent increases or
payments to tenants.
Jurisdictions may want to collaborate with
neighboring jurisdictions to help standardize
code enforcement policies and practices and
share staff resources and expertise.
TOC Policy Requirements: To comply with
TOC policy, jurisdictions must adopt either
(1) an amnesty program waiving code
enforcement fines in exchange for anti-
displacement commitments, or (2) a low-or
no-interest loan or grant program for low-
income homeowners.
Amnesty Program:
• Establish an amnesty program to waive
fines and fees for landlords with occupied
units constructed without permits in
exchange for updates to comply with
health and safety codes.
• Require landlords to complete a tenant
habitability plan as part of the permitting
process.
• As a condition of receiving amnesty for
fines and fees, the landlord must agree
to continue renting to the existing tenant
after repairs are complete with reasonable
limits on rent increases for that tenant.
Loan or Grant Program:
• Must support lower-income homeowners
with making repairs or modifications to
their residences.
• Provide a low- or no-interest loan or grant
of at least $10,000 per recipient.
• Define eligibility for receiving a loan
or grant, eligible uses for funds and
minimum/maximum loan or grant
amounts.
• Recipients must be below 80% AMI and
live in owner-occupied homes that are the
homeowner’s primary residence, including
mobile homes where the owner rents the
lot.
CODE ENFORCEMENT 4
Program Evaluation
To evaluate program effectiveness, jurisdictions can analyze whether units with substandard conditions are brought to code through a timely process that reduces disruption to tenants.
Jurisdictions can assess whether reporting mechanisms are easily accessible and make them available in multiple languages.
They can also evaluate whether property owners are able to reasonably meet requirements for assistance programs, and whether financial assistance available to owners meaningfully reduces the cost burden of repairs.
Complementary Policies
TENANT RELOCATION ASSISTANCE: In the case of landlords
participating in an amnesty program, relocation assistance can provide security to tenants who may need to relocate during repairs.
LEGAL ASSISTANCE: Legal assistance programs can help
tenants understand and assert their rights, including the right to safe, habitable housing and hold landlords accountable when they do not address habitability issues.
Other Resources
EXAMPLES*
City of San José - ADU
Amnesty Program
City of Los Angeles – Tenant
Habitability Plans
City of Hayward -
Partnerships for Home
Repair
County of Alameda -
Partnership with Habitat
for Humanity for Home
Repairs
OTHER RESOURCES
Metropolitan Transportation
Commission - Preservation
Policy 8: Preventing
Displacement from
Substandard Conditions
and Associated Code
Enforcement Activities
*Note that examples have
not been vetted for full
TOC Compliance.
This document is intended to provide general information and does not constitute legal advice. Additional facts, facts specific to a particular situation, or future developments may affect the subjects discussed in this document. Seek the advice of your jurisdiction’s legal counsel before acting or relying upon this information. For specific questions regarding TOC compliance, please reach out to [email protected].