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Rent Control Board Letter to Council re Recommendations - June 16, 2026

Santa Monica City Council
July 14, 2026

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Rent Control Board Letter to Council re Recommendations - June 16, 2026
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July 14, 2026
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Santa Monica City Council
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Rent Control Board
1685 Main Street, Rm. 202
Santa Monica, CA 90401
Phone: 310-458-8751
June 16, 2026
Mayor Caroline Torosis and Members of the City Council
1685 Main Street, Room 209
Santa Monica, CA 90401
Re: Proposed Charter Amendments Concerning Commissioner Term Limits, the Registration Fee Framework, and the Petition Decision Timeline
Dear Mayor and Councilmembers,
At its June 11, 2026 meeting, the Santa Monica Rent Control Board voted to recommend that the City Council place three proposed amendments to Article XVIII of the City Charter before the voters at the November 2026 general election.

The proposed amendments would:

1. Revise the Charter’s term-limit provision for Rent Control Board Commissioners;

2. Update and clarify the Charter’s registration fee framework while preserving the Board’s discretion to set the actual annual registration fee through its regular budget and fee-setting process; and

3. Clarify that the Board’s rules and regulations may allow extensions, for good cause, of the 120- day timeline for final action on individual rent adjustment petitions.

The Board believes these amendments are in the public interest because they would improve clarity, administrative efficiency, fiscal stability, and consistency with the Board’s current operational needs while preserving the core structure and tenant protections of Article XVIII.

The attached staff report and proposed Charter amendment language explain the amendments in greater detail. If there is anything the Board or staff can do to assist the Council in its consideration of these proposals, please let me know.

Sincerely,
Jonathan Holub, Executive Director
cc: Oliver Chi, City Manager
Heidi Von Tongeln, City Attorney
Denise Anderson-Warren, City Clerk
Kevin Mitchell, General Counsel
Rent Control Board Commissioners
1 SANTA MONICA RENT CONTROL BOARD MEMORANDUM
TO: Santa Monica Rent Control Board
FROM: Jonathan Holub, Executive Director
FOR MEETING OF: June 11, 2026
RE: Public Hearing to Consider Proposed Charter Amendments Concerning Commissioner Term Limits, Registration Fee Framework, and Petition Decision Timeline
Subject
The Board will conduct a continued public hearing regarding three proposed administrative amendments to Article XVIII (Rent Control) of the Santa Monica City Charter and determine whether to recommend one or more of the proposed amendments to the Santa Monica City Council for placement on the November 2026 ballot.

Summary
At its April 9, 2026 meeting, the Board reviewed four proposed Charter amendments developed by the Charter Amendment Subcommittee and directed staff to return with the proposals for public hearing. At its May 14, 2026 meeting, the Board opened the public hearing on the proposed amendments and also heard a presentation from the City Attorney’s Office regarding separate tenant-protection proposals that may warrant parallel amendments to Article XVIII.

Following the May 14 discussion, the Board continued the public hearing and directed staff to reconvene the Charter Amendment Subcommittee to review the City Attorney’s Office proposals and related Article XVIII issues. The Subcommittee met on May 26, 2026 and agreed that the three Board-originated administrative amendments should return to the Board at the June 11 regular meeting for continued public hearing and possible recommendation to the City Council. The tenant-protection proposals will be addressed separately as an administrative item and may return for public hearing at a future Board meeting.

The three proposed administrative amendments before the Board at this meeting concern:
• Commissioner term limits;
• Registration fee framework; and
• Petition decision timeline.

These proposals are intended to provide targeted updates to improve clarity, administrative efficiency, fiscal stability, and consistency with current operational practices while preserving Item 11.C
2 the broader structure of Article XVIII. They do not address the separate tenant-protection proposals currently under review.

Discussion
In November 2026, the City of Santa Monica will hold a general municipal election. The Rent Control Board may recommend Charter amendments to the Santa Monica City Council for placement before voters. Staff’s current target is to have any Board-recommended Charter amendments ready for City Council consideration at its July 14, 2026 meeting.

The full text of each proposed administrative amendment, along with redlined versions reflecting the proposed changes to the current Charter language, are attached to this report for public review.

1. Commissioner Term Limits (Section 1803(e))
This amendment would revise Section 1803(e) to allow Commissioners to serve a maximum of three terms, whether consecutive or non-consecutive, and clarify that appointed terms count toward the overall limit. The proposed language would also provide that a partial term of more than two years counts as one term.

The proposal would align Board term limits more closely with broader City Charter provisions while preserving the Board’s existing four-year term structure. It would also remove obsolete transitional language related to the first Commissioners elected after the original adoption of Article XVIII.

2. Registration Fee Framework (Section 1803(n))
This amendment would revise the Board’s registration fee framework by:
• retaining the current maximum allowable fee of $288 per controlled rental unit; • clarifying that the maximum allowable fee is a cap rather than the actual fee charged; • preserving the Board’s annual discretion to set the registration fee below the cap; • maintaining the existing tenant pass-through framework; • preserving the Board’s authority to request and receive funding from other available sources when necessary; and
• establishing annual CPI-based adjustments to the maximum allowable fee beginning in 2028, subject to a five percent annual cap and no annual decreases.

The proposal is intended to preserve long-term fiscal stability and reduce the need for future Charter amendments related solely to inflationary adjustments. The amendment would not itself set the annual registration fee at the maximum amount. The Board would continue to determine the actual annual fee through its regular budget and fee-setting process.

3. Petition Decision Timeline Clarification (Section 1805(d)(12)) This amendment would clarify that Board rules and regulations govern petition processing timelines, including the general timeframe for final action and circumstances where extensions may be permitted for good cause.
3 The amendment is intended to reflect the Board’s longstanding regulatory framework and clarify that procedural timelines are administered through Board regulations. The proposed language preserves the 120-day final-action framework while recognizing that limited extensions may be necessary for good cause.

Relationship to Tenant-Protection Proposals
The Board is also considering separate tenant-protection proposals concerning just-cause eviction protections under Article XVIII. Those proposals are being reviewed separately in light of the City Attorney’s Office presentation at the May 14 meeting and subsequent Subcommittee discussion. Those items are being considered separately for possible public hearing. Separating the administrative proposals for consideration at this meeting allows the Board to maintain progress on items that are already developed while preserving additional review time for the more substantive tenant-protection proposals.

Recommendation
Conduct the continued public hearing, receive public testimony, close the public hearing as to the proposed amendments concerning Commissioner term limits, the registration fee framework, and petition decision timeline, and determine whether to recommend one or more of those proposed amendments to the Santa Monica City Council for placement on the November 2026 ballot.

Attachment A: Proposed Amendment – Commissioner Term Limits (Clean) Attachment B: Proposed Amendment – Commissioner Term Limits (Redline) Attachment C: Proposed Amendment – Registration Fee Framework (Clean) Attachment D: Proposed Amendment – Registration Fee Framework (Redline) Attachment E: Proposed Amendment – Petition Decision Timeline Clarification (Clean) Attachment F: Proposed Amendment – Petition Decision Timeline Clarification (Redline) Section 1803(e):

TERM OF OFFICE: Commissioners shall be elected to serve terms of four years, beginning on the first Tuesday following their election. No person shall serve more than three terms as a Commissioner, whether consecutive or not. For purposes of this section, a partial term of more than two years shall count as one term. These term limits shall apply to appointed terms as well as elected terms.

Attachment A
Term limits - clean
Section 1803(e):

TERM OF OFFICE: Commissioners shall be elected to serve terms of four years, beginning on the first Tuesday following their election, except that of the first five Commissioners elected in accordance with Section 1803(d), the two Commissioners receiving the most votes shall serve until April 15, 1985 and the remaining three Commissioners shall serve until April 18, 1983. Commissioners shall serve a maximum of two full terms. No person shall serve more than three terms as a Commissioner, whether consecutive or not. For purposes of this section, a partial term of more than two years shall count as one term.

These term limits shall apply to appointed terms as well as elected terms.

Attachment B
Term limits - redline
Section 1803(n):

FINANCING OF BOARD OPERATIONS. The Board shall finance its reasonable and necessary expenses through annual registration fees and other available funding sources, as provided in this subsection.
(1) Registration Fee Authority. The Board may charge landlords an annual registration fee for each controlled rental unit. The amount of the registration fee shall be determined by the Board.
(2) Maximum Allowable Fee. The registration fee established by the Board shall not exceed the maximum annual registration fee allowable under this subsection, initially set at two hundred eighty-eight dollars ($288) per controlled rental unit. The maximum annual registration fee allowable under this subsection establishes a limit and does not itself establish the amount of the fee to be charged.
(3) Tenant Pass-Through. Up to fifty percent (50%) of the registration fee may be passed through from landlords to tenants, subject to conditions and procedures established by the Board.
(4) Additional Funding Sources. The Board may also request and receive funding, when necessary, from any available source for its reasonable and necessary expenses. (5) Adjustment of Maximum Allowable Fee. Beginning with the 2028 calendar year, the maximum annual registration fee allowable under this subsection shall be adjusted annually to reflect the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles region, as published by the United States Bureau of Labor Statistics, for the preceding calendar year. No adjustment shall result in a decrease to the maximum annual registration fee allowable under this subsection or exceed five percent (5%) in any single year.
(6) Notice of Adjustment. The Board shall announce any adjustment to the maximum annual registration fee allowable under this subsection on or before March 15 of each year in which an adjustment is made.
(7) Board Discretion. Nothing in this subsection shall be construed to require the Board to charge the maximum annual registration fee allowable under this subsection in any year.

Attachment C
Reg fee - clean
Section 1803(n):

FINANCING: The Board shall finance its reasonable and necessary expenses by charging landlords annual registration fees in amounts deemed reasonable by the Board up to a maximum annual registration fee of $288 per controlled unit. Fifty percent (50%) of the amount of the registration fees may be passed through from landlords to tenants, and the Board may establish applicable conditions and procedures governing the pass through.

The Board is also empowered to request and receive funding when and if necessary from any available source for its reasonable and necessary expenses.

FINANCING OF BOARD OPERATIONS. The Board shall finance its reasonable and necessary expenses through annual registration fees and other available funding sources, as provided in this subsection.
(1) Registration Fee Authority. The Board may charge landlords an annual registration fee for each controlled rental unit. The amount of the registration fee shall be determined by the Board.
(2) Maximum Allowable Fee. The registration fee established by the Board shall not exceed the maximum annual registration fee allowable under this subsection, initially set at two hundred eighty-eight dollars ($288) per controlled rental unit. The maximum annual registration fee allowable under this subsection establishes a limit and does not itself establish the amount of the fee to be charged.
(3) Tenant Pass-Through. Up to fifty percent (50%) of the registration fee may be passed through from landlords to tenants, subject to conditions and procedures established by the Board.
(4) Additional Funding Sources. The Board may also request and receive funding, when necessary, from any available source for its reasonable and necessary expenses. (5) Adjustment of Maximum Allowable Fee. Beginning with the 2028 calendar year, the maximum annual registration fee allowable under this subsection shall be adjusted annually to reflect the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles region, as published by the United States Bureau of Labor Statistics, for the preceding calendar year. No adjustment shall result in a decrease to the maximum annual registration fee allowable under this subsection or exceed five percent (5%) in any single year.
(6) Notice of Adjustment. The Board shall announce any adjustment to the maximum annual registration fee allowable under this subsection on or before March 15 of each year in which an adjustment is made.

Attachment D
Reg fee - redline
(7) Board Discretion. Nothing in this subsection shall be construed to require the Board to charge the maximum annual registration fee allowable under this subsection in any year.

Section 1805(d)(12):

TIME FOR DECISION: The rules and regulations adopted by the Board shall provide for final action on any individual rent adjustment petition within one-hundred and twenty (120) days, following the date of filing of the individual rent adjustment petition, allowing for extensions of the timeline for good cause.

Attachment E
Petition timeline - clean
Section 1805(d)(12):

TIME FOR DECISION: The rules and regulations adopted by the Board shall provide for final action on any individual rent adjustment petition within one-hundred and twenty (120) days, following the date of filing of the individual rent adjustment petition, allowing for extensions of the timeline for good cause.

Attachment F
Petition timeline - redline

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