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City Council Meeting: July 12, 2022 Santa Monica, California RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
SUBMITTING TO THE VOTERS A MEASURE TO AMEND ARTICLE XXIII OF THE
CITY CHARTER TO ESTABLISH A RENT REGISTRY FOR NONRENTCONTROLLED
RENTAL UNITS AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY NOVEMBER 8, 2022, AND AUTHORIZING CITY COUNCILMEMBERS TO
FILE WRITTEN ARGUMENTS FOR OR AGAINST THE MEASURE AND DIRECTING
THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE WHEREAS, State restrictions on a local government’s ability to regulate rents across tenancies or to update local ordinances to apply rent control to buildings built after the adoption of the local law (April 1979 in Santa Monica) have substantially hobbled local entities’ efforts to ameliorate the worsening affordable housing crisis; and
WHEREAS, most new housing units are market rate units that are exempt from local rent control laws and, therefore, do not improve local housing’s affordability; and WHEREAS, despite the claims of developers, simply increasing the supply of housing has not resulted in lower market rents; and
WHEREAS, rental rates continue to increase even as the market-rate housing supply grows; and
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WHEREAS, as rent-controlled units continue to be withdrawn from the rental market through the Ellis process and demolished and replaced with exempt units, the balance continues to shift toward fewer controlled units; and WHEREAS, state laws have led to a two-tiered system in which some tenants enjoy protections from large, unpredictable rent increases while others’ rents are limited only by a one-size-fits-all state law with no local enforcement mechanism; and WHEREAS, requiring the registration of all rental units could assist the City in a greater understanding of the scope of the affordable housing crisis in Santa Monica and in determining more effective ways to mitigate its impact, an impact that is driving housing instability, displacement, and greater numbers of the unhoused population; and
WHEREAS, in light of the foregoing recitals, the Santa Monica Rent Control Board has recommended that Article XXIII of the City Charter be amended to add new Section 2304.5 to require the registration of all Nonrentcontrolled Rental Units; and WHEREAS, the City Council has considered and approved the Board’s recommendation because this amendment is in the public interest because it would provide greater transparency about rental and occupancy rates for all rental units and would strengthen tenant protections from unnecessary displacements; and WHEREAS, pursuant to California Elections Code Section 10403, the City Council has previously requested that the County of Los Angeles consent and agree to the consolidation of all aspects of a General Municipal Election with the Statewide General Election scheduled for Tuesday, November 8, 2022, for the purpose of electing 3 of 7
members of the Santa Monica City Council, the Santa Monica Rent Control Board, the Santa Monica-Malibu Unified School District, and the Santa Monica College Community College District.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AND PROCLAIM AS FOLLOWS:
SECTION 1. At the General Municipal Election called for November 8, 2022, the following measure shall be submitted to the qualified electors of the City of Santa Monica:
PROPOSITION " ": Shall the City Charter be
amended to add new Section 2304.5 to Article
XXIII of the City Charter to require the registration
of all Nonrentcontrolled Rental Units?
Yes
_________
No
SECTION 2. That the City Clerk shall file a certified copy of this resolution with the Board of Supervisors and with the county election department of the County of Los Angeles.
SECTION 3. That the City of Santa Monica recognizes that additional costs may be incurred by the County by reason of the addition of this measure to the ballot and agrees to reimburse the County for any additional costs.
SECTION 4. The City Clerk shall transmit to the City Attorney, in accordance with applicable law, a copy of the proposed measure. The City Attorney shall prepare an impartial analysis of the measure, which shall not exceed 500 words in length. The impartial analysis for the measure shall be filed by the date set by the City Clerk for the 4 of 7
filing of primary arguments. In accordance with applicable law, not less than 10 calendar days before the City Clerk submits the official election materials for printing, the City Clerk shall make a copy of all applicable elections materials available for public examination in the City Clerk’s office.
SECTION 5. The City Council authorizes its members, as follows, to file written arguments for or against the measure described above and which is contained in Exhibit 1 to this Resolution, which Exhibit is incorporated by reference herein:
Registration of Nonrentcontrolled Rental Units (Exhibit 1):
FOR: _____________________________________________
AGAINST: _____________________________________________
All written arguments filed by any person in favor of or against the measure, including any rebuttal arguments, shall be accompanied by the names and signatures of the persons submitting the argument as required by applicable law, and any names, signatures and arguments may be filed until the time and date fixed by the City Clerk in accordance with applicable law, after which no change may be submitted to the City Clerk unless permitted by law.
SECTION 6. The City Clerk shall cause the text of the measure, which is contained in Exhibit 1, together with the City Attorney impartial analysis, and any arguments for or against the measure, as well as any rebuttals, to be mailed to all qualified voters with the sample ballots. In addition to other notices and publications required by law, the City Clerk, not less than forty (40) days and not more than sixty (60) 5 of 7
days before the General Municipal Election, shall cause the text of the measure to be published once in the official newspaper and in the edition thereof during the day of publication. The City Clerk is authorized to give such notices and to fix such times and dates as are required by law or which are appropriate to properly conduct the election.
SECTION 7. The provisions of Resolution Numbers 11425 (CCS) and 11426 (CCS) are referred to and incorporated into this resolution for more particulars concerning the conduct of General Municipal Election to be held on November 8, 2022, and in all respects the election shall be held and conducted as provided for by applicable law. The City Clerk is authorized and directed to procure and furnish any official ballots, notices, printed materials and all supplies or equipment that may be necessary in order to properly and lawfully conduct the election.
SECTION 8. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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DOUGLAS SLOAN
City Attorney
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Exhibit 1
New section 2304.5 shall be added to Article XXIII of the City Charter to read as follows:
2304.5 Registration of Nonrentcontrolled Rental Units
(a) Registration required. Upon issuance by the City of Santa Monica of a valid written Rent Registration certificate, as set forth in this Section 2304.5, no Landlord shall demand or accept Rent for a Nonrentcontrolled Rental Unit (NRU) without first serving on the Tenant, or displaying in a conspicuous place, such Rent Registration certificate.
(b) Registration Process.
(1) A Landlord shall provide Rent amount and Tenancy information for every Rental unit on a Rent Registration form provided by the City. The Rent Registration form shall be submitted on a date to be determined by the City and on that date each year thereafter. Registration is complete only when all of the following information is provided: ownership information; property information; year built and certificate of occupancy date; number of bedrooms and bathrooms for each NRU; the amount of Rent in effect at the time of registration; a description of housing services; water/utility metering status of the unit; and the property vacancy rate. If any NRU has been vacant for more than 30 days, the Landlord shall provide the date of vacancy and whether the vacancy is due to a buyout agreement.
(2) Every NRU Rent Registration certificate shall be updated annually, as required by Section 2304.5(b)(1), upon a new tenancy, or when there are changes in housing services.
(3) If an NRU is vacant for more than 30 days, the Landlord shall provide a certification to the City of the duration of the vacancy, and that the NRU shall be secured against unauthorized entry.
(4) For every property for which a Landlord is required to procure a Rent Registration certificate pursuant to this section, the Landlord shall post a notice in a form provided by the City, providing information about this Subchapter 2304.5 and City contact information. Notices must be posted in a conspicuous location in the common area, at the entry or entries to the building or units, or other similar location or locations as necessary to provide Tenants a reasonable opportunity to view the notice.
If there is no common area or similar location, this requirement may be 7 of 7
satisfied by mailing the notice to each Tenant of the building, by certified mail, return receipt requested. The notice shall be written in English and Spanish, and in any other languages as required by the City. (c) Notice of Rent information deficiencies and opportunity to cure; Appeals; and Final Administrative Decision.
(1) The City shall provide written notification to the Landlord of a failure to comply with this section and allow fifteen (15) calendar days to respond. The City shall not issue a Rent Registration certificate for the NRU until the Landlord has substantially complied by providing the rental information as required by this section.
(2) Any Landlord disputing the City’s notification of deficient registration may file a written appeal with the City Manager or designee within ten (10) calendar days of the date of the notice of deficiency. The City Manager or designee shall provide a written notice within thirty (30) calendar days of its appeal decision, which shall be a final administrative decision.
(d) Registration fee.
(1) A fee for the registration of NRU’s may be established by resolution of the City Council. Such fees are intended to recover the City’s reasonable costs associated with the administration and enforcement of this section.
(2) A Landlord may pass through to the Tenant fifty percent (50%) of the annual fee for the registration of the Tenant’s NRU (the pass-through fee) if such Tenant continuously occupied the NRU during the period covered by the completed registration. The City may establish applicable conditions and procedures governing the pass-through. The pass-through fee is not considered Rent and should appear as a separate line item on the Rent statement. A Landlord may collect a maximum of one-twelfth (1/12) of the pass-through fee per month.