1 SANTA MONICA RENT CONTROL BOARD MEMORANDUM
TO: Santa Monica Rent Control Board
FROM: Jonathan Holub, Executive Director
FOR MEETING OF: April 9, 2026
RE: Discussion of Proposed Charter Amendments for November 2026 Ballot
Summary
The Board will discuss proposed amendments to Article XVIII (Rent Control) of the Santa Monica City Charter, developed by the Charter Amendment Subcommittee (Vice Chair Ambriz and Commissioner Gonska), and consider whether to proceed with a public hearing and potential recommendation to the City Council for placement on the November 2026 ballot.
Discussion
In November 2026, the City of Santa Monica will hold a general municipal election. The Rent Control Board may recommend that the City Council place proposed amendments to Article XVIII of the City Charter.
The proposed amendments presented in this report were developed through subcommittee discussions and are intended to provide targeted updates to improve clarity, administrative efficiency, and alignment with current practices. The amendments retain the core structure and substantive framework of the existing Charter provisions while providing additional precision in specific areas.
The proposed amendments for discussion by the full Board address four primary areas:
• Aligning Commissioner term limits with City Charter provisions • Establishing a clearer and more durable financing framework • Clarifying the regulatory framework governing petition timelines • Clarifying tenant protections related to familial occupancy The amendments are presented as discrete items for the Board’s consideration. The Board may consider each item independently and provide direction on whether to proceed with a public hearing and, if so, on a potential recommendation to the City Item 12.A
2 Council. The full text of each proposed amendment and redlined versions are attached to this report.
Proposed Amendment: Term Limits Alignment (Section 1803(e)) The proposed amendment would revise Section 1803(e) to allow Commissioners to serve a maximum of three terms, whether consecutive or not, and clarify that term limits apply to both elected and appointed terms.
Section 1803(e) currently limits Commissioners to two terms and establishes four-year terms but does not expressly address whether appointed terms count toward that limit. The proposed amendment retains the existing term structure while modifying the number of allowable terms and clarifying application to appointed service.
The City Charter allows City Councilmembers to serve up to three terms and applies term limits to both elected and appointed service. Aligning Commissioner term limits promotes consistency across City governance structures and eliminates ambiguity regarding how prior service is counted. This alignment also supports continuity and institutional knowledge while maintaining reasonable limits on tenure.
This proposed change standardizes term limits, clarifies the treatment of appointed service, and aligns the Board’s structure with broader City governance practices, while retaining the existing four-year term framework.
Proposed Amendment: Financing and Registration Fee Framework (Section 1803(n)) The proposed amendment would clarify and structure the Board’s authority to establish an annual registration fee for controlled rental units, subject to a maximum allowable amount.
Key elements include:
• Initial maximum allowable fee of $288 per unit (current limit) • Clarification that the maximum allowable fee is a cap, not the fee charged • Retains up to 50% tenant pass-through, subject to Board regulation • CPI-based annual adjustments of maximum allowable fee beginning in 2028 (capped at 5%, no decreases)
• Preservation of Board discretion not to charge the maximum allowable fee When the Rent Control Charter Amendment was adopted in 1979, it authorized the Board to finance its operations through registration fees sufficient to cover its reasonable and necessary expenses, but did not impose a specific maximum fee. In 2014, the voters approved a Charter amendment establishing a maximum allowable annual registration fee of $288 per unit and allowing up to fifty percent (50%) of that fee to be passed through to tenants. This change was intended to provide a more stable and predictable funding framework while reducing the risk of recurring disputes over fee adjustments. 3 The 2014 amendment established the concept of a voter-approved maximum fee but did not provide a mechanism for adjusting that maximum over time, other than through voterapproved amendments when the Board’s budgetary needs approached the established cap.
The proposed amendment’s CPI-based adjustment mechanism provides a transparent, incremental approach to maintaining the real value of the maximum allowable fee over time, thereby limiting the need for periodic Charter amendments.
The proposed amendment is intended to build upon the framework established in 2014 by providing greater clarity, predictability, and long-term stability. By clearly distinguishing between the maximum allowable fee and the fee actually charged, the amendment reinforces that fee-setting remains a policy decision of the Board within voter-established limits. At the same time, the cap on annual increases, the prohibition on decreases, and the preservation of Board discretion provide appropriate guardrails and flexibility.
In sum, the proposed amendment maintains the existing financing structure while adding a defined mechanism for adjusting the maximum allowable fee over time. It preserves the Board’s authority to set fees annually and maintains existing tenant pass-through provisions.
Proposed Amendment: Petition Decision Timeline (Section 1805(d)(12)) The proposed amendment would clarify that the Board’s rules and regulations are to provide for the timing of final action on individual rent adjustment petitions, including a general 120- day timeframe, and would expressly recognize that such regulations may allow for extensions of time for good cause.
Section 1805(d)(12) directs the Board to adopt rules and regulations governing the processing of individual rent adjustment petitions, including provisions addressing the timing of final action. Consistent with this directive, the Board has adopted regulations that establish procedures for processing petitions, including timing provisions and mechanisms that allow for additional time where appropriate. These mechanisms are structured and generally tied to specific procedural requirements, including written requests, findings, or party action, and are supported by a showing of good cause. In addition, the regulations allow adjustments to the timing where necessary to accommodate procedural developments, including where parties agree to waive applicable time limits. Taken together, these provisions reflect an established regulatory framework governing the timing of petition processing.
The amendment is intended to clarify within the Charter framework for addressing petition timing by expressly recognizing that the Board’s regulations govern both the general timeframe for resolution and the circumstances under which additional time may be appropriate. This clarification improves transparency regarding how petition timing is administered, while preserving the Board’s authority to adopt and apply regulations governing petition procedures.
This change clarifies the Charter’s existing structure by expressly recognizing the role of Board-adopted regulations in establishing and administering petition timelines, without 4 altering the Board’s existing regulatory framework. This clarification is intended to reflect and preserve the Board’s existing regulatory framework governing petition timelines.
Proposed Amendment: Tenant Protections – Occupancy (Section 1806(a)(2)) The proposed amendment would clarify that a landlord may not terminate a tenancy based on:
• Occupancy by specified family members beyond lease limits, including a spouse, registered domestic partner, parent, grandparent, sibling, aunt, uncle, niece, nephew, or non-dependent child or grandchild (by blood or adoption) • Additional occupancy resulting from the birth, adoption, or legal custody of a minor child
These provisions remain subject to applicable legal limits on occupancy.
Section 1806(a) establishes the exclusive grounds for eviction and reflects longstanding Charter protections limiting terminations of tenancy to specified circumstances. The Charter does not expressly address certain occupancy scenarios, including the addition of family members or changes in household composition resulting from the birth, adoption, or legal custody of a minor child.
The amendment is intended to clarify that these types of changes in household composition do not, in themselves, constitute grounds for termination of tenancy. In practice, disputes may arise when landlords treat the addition of family members or minor children as a basis for eviction. The absence of explicit Charter language addressing these scenarios can lead to inconsistent outcomes.
By clarifying that such changes in occupancy are not grounds for termination, the amendment reinforces the Charter’s existing structure, which limits evictions to specified causes, and provides clearer protection for tenants in these circumstances. The approach reflected in the proposed amendment is consistent with broader policy considerations regarding tenant occupancy protections and is grounded in the Board’s existing Charter framework.
The amendment clarifies that specified changes in household composition, including the addition of family members or minor children, are not grounds for eviction, thereby strengthening the predictability and application of existing tenant protections.
Fiscal Impact
Based on prior election experience, staff anticipates that actual costs may be lower than preliminary estimates, which are intentionally conservative at this stage. Staff will refine cost projections as part of the FY 2026–27 budget process and return to the Board with updated information prior to any final action.
5 Conclusion
The proposed amendments represent targeted updates developed by the Charter Amendment Subcommittee that retain the core structure and substantive framework of the existing Charter while providing greater clarity, consistency, and administrative effectiveness.
Following Board discussion, the Board may direct that one or more of the proposed amendments be brought back for a public hearing and potential recommendation to the City Council for placement on the November 2026 ballot.
Recommendation
Discuss the proposed amendments developed by the Charter Amendment Subcommittee and provide direction on whether to proceed with a public hearing and potential recommendation to the City Council.
Proposed Article XVIII Charter Amendments – November 2026 Ballot 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.
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.
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Proposed Amendments
(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.
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.
Section 1806(a)(2):
…Notwithstanding any contrary provision in this Section, and notwithstanding any contrary provision in the rental housing agreement, a landlord shall not take any action to terminate a tenancy based on the following:
(i) a tenant’s sublease of the unit if the following requirements are met:
(I) The tenant continues to reside in the rental unit.
(II) The sublease replaces a departed tenant(s) under the rental agreement on a one-for-one basis.
(III) The landlord has unreasonably withheld the right to sublease following written request by the tenant. If the landlord fails to respond to the tenant in writing within fourteen (14) days of receipt of the tenant’s written request, the tenant’s request shall be deemed approved by the landlord.
(ii) occupancy of the rental unit by an additional person in excess of the number of persons permitted by the rental agreement if the additional person is the spouse, registered domestic partner, parent, grandparent, sibling, aunt, uncle, niece, nephew, or non-dependent child or grandchild (by blood or adoption); (iii) in addition to the occupancy permitted in (ii), occupancy of the rental unit by any number of persons in excess of the number of persons permitted by the rental agreement if the excess occupancy results from the birth, adoption, or change of legal custody of a minor child or children for whom the tenant or head of household or his or her spouse or registered domestic partner is the parent or legal guardian.
Nothing in this subsection shall permit occupancy in excess of any maximum allowable occupancy established by law.
Proposed Article XVIII Charter Amendments – November 2026 Ballot 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.
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.
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Proposed Amendments - Redline
(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.
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.
Section 1806(a)(2):
…Notwithstanding any contrary provision in this Section, and notwithstanding any contrary provision in the rental housing agreement, a landlord shall not take any action to terminate a tenancy based on a tenant’s sublease of the unit if the following requirements are met:
(i) The tenant continues to reside in the rental unit.
(ii) The sublease replaces a departed tenant(s) under the rental agreement on a one for-one basis.
(iii) The landlord has unreasonably withheld the right to sublease following written request by the tenant. If the landlord fails to respond to the tenant in writing within fourteen (14) days of receipt of the tenant’s written request, the tenant’s request shall be deemed approved by the landlord.
(i) a tenant’s sublease of the unit if the following requirements are met:
(I) The tenant continues to reside in the rental unit.
(II) The sublease replaces a departed tenant(s) under the rental agreement on a one-for-one basis.
(III) The landlord has unreasonably withheld the right to sublease following written request by the tenant. If the landlord fails to respond to the tenant in writing within fourteen (14) days of receipt of the tenant’s written request, the tenant’s request shall be deemed approved by the landlord.
(ii) occupancy of the rental unit by an additional person in excess of the number of persons permitted by the rental agreement if the additional person is the spouse, registered domestic partner, parent, grandparent, sibling, aunt, uncle, niece, nephew, or non-dependent child or grandchild (by blood or adoption); (iii) in addition to the occupancy permitted in (ii), occupancy of the rental unit by any number of persons in excess of the number of persons permitted by the rental agreement if the excess occupancy results from the birth, adoption, or change of legal custody of a minor child or children for whom the tenant or head of household or his or her spouse or registered domestic partner is the parent or legal guardian.
Nothing in this subsection shall permit occupancy in excess of any maximum allowable occupancy established by law.