Agenda packet, second session — Santa Monica City Council, July 28, 2026

City of Santa Monica
City Council Meeting
AGENDA

CAROLINE TOROSIS
MAYOR

ELLIS RASKIN JESSE ZWICK

COUNCILMEMBER MAYOR PRO TEM

DAN HALL BARRY SNELL

COUNCILMEMBER COUNCILMEMBER

LANA NEGRETE NATALYA ZERNITSKAYA

COUNCILMEMBER COUNCILMEMBER
OLIVER C. CHI

CITY MANAGER

HEIDI VON TONGELN

CITY ATTORNEY

DENISE ANDERSON-WARREN

INTERIM CITY CLERK

STANDARDS OF BEHAVIOR THAT PROMOTE CIVILITY AT ALL PUBLIC MEETINGS:
• Treat everyone courteously; • Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive
public process, and tools for forging sound decisions
• Hate has no place in Santa Monica. The City opposes
abusive or threatening hate speech, intolerance, or
dehumanization, and supports basic civil respect and
human decency.
• Listen to others respectfully;
• Exercise self-control;
• Give open-minded consideration
to all viewpoints;
• Focus on the issues and avoid
personalizing debate;
Regular meetings are broadcast live on CityTV cable channel 16 and on the internet at santamonica.gov. Cable television re-broadcasts air on Thursday and Saturday at 11:30 AM. The agenda will air on CityTV on Saturday and Sunday at 11:00 AM and 6:00 PM, and on Monday and Tuesday at 12:30 PM and 6:00 PM.

City of Santa Monica Generated: 7/29/2026 11:30 AM Page 2

RULES OF ORDER FOR THE CONDUCT OF CITY COUNCIL MEETINGS (Resolution No.11663(CCS))

WAYS TO PROVIDE PUBLIC COMMENT
If you are interested in providing public comment at a City Council meeting, there are several ways to participate:
(1) Written public comment. In lieu of oral public comment, the public is strongly encouraged to submit written public comment on agenda items via email to [email protected]. For written public comment submitted by 12:00 pm on the day of the meeting, best efforts shall be made to have them available online for viewing. Please note the agenda item number in the subject line of your written comments.
(2) Oral public comment.
- In-person: Persons wishing to address the City Council regarding items on the agenda must be present and submit their name and address (optional) to the City Clerk before the public comment section is opened for that item or before the public hearing is opened where one is required by law. Register to speak at the Speaker Kiosk prior to the meeting. - Telephone: Persons wishing to address the Council by telephone must register at santamonica.gov/public-comment no later than 5:00 p.m. the day before a meeting. Showing electronic presentation materials are not permitted when commenting by telephone.

Oral public comment from any one individual is limited to a total of 6 minutes per City Council meeting, with a maximum of 2 minutes per agenda item if speaking on multiple items. A member of the public may allocate time between items in one-minute increments up to 2 minutes and those requesting to speak on only one agendized item for the meeting may speak for up to 4 minutes on that one item. Except for noticed public hearings or quasi-judicial items, if more than 25 speakers are registered to speak during a public input section, the amount of time shall be reduced to 1 minute per speaker during that section.

Except for the author of the request, public comment on 15-items are limited to 1 minute.

Levine Act Disclosure. Pursuant to the Levine Act (Govt Code Section 84308), any party to a permit, license, contract, or other entitlement before the Council is required to disclose on the record any contribution, including aggregated contributions, of more than $500 made by the party or the party's agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made. Information regarding the Levine Act can be found here or you can contact the FPPC.

ORDER OF BUSINESS (may not be changed except by majority vote of the City Council.)

1. General Public Input
(Members of the public may address the City Council
only on items not on the agenda, but within the
subject matter jurisdiction of the City and on Special
Agenda Items.)

2. Special Agenda Items (Commendations and
Proclamations presented).

3. Public Comment for Consent Calendar and Closed
Sessions Only.

4. Consent Calendar (All items considered in one
motion unless removed by a City Councilmember for
discussion. No public comment is permitted on
second readings.)

5. Closed Sessions.

6. Public Comment on remaining Agenda Items

7. Study Session.

8. Continued Items.

9. Administrative Proceedings.

10. Ordinances:
• 1
st Reading
• 2
nd Reading (No public comment is
permitted on second readings.)

11. Staff Administrative Item.

12. Public Hearings.

13. Reports of Boards and Commissions.

14. Resolutions.

15. Written Communications (Other than
Reports of Commission and Officers.)

16. Councilmember Discussion Items.

Agendas and reports are accessible on the City's webpage at smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y pida hablar con Esterlina Lugo.

City of Santa Monica Generated: 7/29/2026 11:30 AM Page 3

AGENDAS

CITY OF SANTA MONICA

SPECIAL MEETING

CITY HALL COUNCIL CHAMBERS
1685 MAIN STREET, ROOM 250,
TUESDAY, JULY 28, 2026
MEETING BEGINS AT 8:45 PM

HOW TO PROVIDE PUBLIC COMMENT BY TELEPHONE
Participants may join a meeting by phone via Zoom. Dial, the phone number to access Zoom’s audio system, and enter the Zoom Meeting ID to join the meeting.

Zoom Dial-In Information: Phone Number (669) 900-6833 (US), Meeting ID:978 8290 3006# Persons wishing to address the Council by telephone must register at santamonica.gov/public-comment no later than 5:00 p.m. the business day before a meeting. Donation of time and showing electronic presentation materials are not permitted when commenting by telephone.

CALL TO ORDER

PLEDGE OF ALLEGIANCE / LAND ACKNOWLEDGEMENT

ROLL CALL
(This is a special City Council meeting. Public comment is restricted to only items listed on the agenda.)
City of Santa Monica Statement of Accountability (Land Acknowledgement) The City of Santa Monica is located on the land of Tovangaar. With great respect, the City acknowledges the Gabrieleño/Tongva as the First People of this ancestral and unceded territory of Kuruvungna, a village that we know as Santa Monica. We honor their elders, past and present, and the Gabrieleño descendants who are part of the Gabrieleño /Tongva tribes.

We recognize that these peoples are still here, and as settlers and kuyam (guests), we recognize our responsibility and obligation to care for their land in partnership with them.

The City of Santa Monica commits to work in partnership with the Gabrieleño/Tongva people to uplift their voices and visibility on their ancestral land.

City of Santa Monica Generated: 7/29/2026 11:30 AM Page 4

LEVINE ACT DISCLOSURES AND ANNOUNCEMENTS / PROCEDURAL

MOTIONS
(Please note that Agenda Items may be reordered during the Council meeting at the discretion of the City Council.)

1. GENERAL PUBLIC INPUT AND COMMENT ON SPECIAL AGENDA ITEMS (For regular meetings, public comment is permitted on Special Agenda Items and items not on the agenda that are within the subject matter jurisdiction of the City. State law prohibits the City Council from taking any action on items not listed on the agenda, including issues raised under this agenda item. For special meetings, public input is limited to scheduled Special Agenda Items only.)
. Public input under this item will not be heard at this meeting. This is a special meeting and public input is limited to agenda items only.

2. SPECIAL AGENDA ITEMS
No items

3. PUBLIC INPUT (ITEMS UNDER CONSENT CALENDAR AND CLOSED SESSION ONLY)

4. CONSENT CALENDAR
(All items will be considered and approved in one motion unless removed by a Councilmember for discussion. In accordance with Charter section 615, the adoption of all ordinances and resolutions shall be by reading of title only unless a Councilmember present dissents. No public discussion is permitted on ordinances for second reading and adoption.)
No items

5. CLOSED SESSIONS
No items

CITY MANAGER REPORT

TRAVEL ANNOUNCEMENT AND MAYOR'S HIGHLIGHT

6. PUBLIC INPUT ON REMAINING AGENDA ITEMS
. Public Input for 12-Items will be heard at the time when the Public Hearing is called.

City of Santa Monica Generated: 7/29/2026 11:30 AM Page 5

7. STUDY SESSION
No items

8. CONTINUED ITEMS
No items

9. ADMINISTRATIVE PROCEEDINGS
No items

10. ORDINANCES
(Public comment is permitted on ordinances for introduction and first reading. No public discussion is permitted on ordinances for second reading and adoption. In accordance with Charter section 615, the adoption of all ordinances and resolutions shall be by reading of title only unless a Councilmember present dissents.)
No items

11. STAFF ADMINISTRATIVE ITEMS

11.A. Adoption of Resolution Placing Proposed Ballot Measure Amending Chapter

6.68 of the Santa Monica Municipal Code on the November 3, 2026 Ballot to Maintain Existing Tax Rates; Authorize the City Council to Establish Major Event Periods When the Tax Will Apply to Corporate Bookings of More than 30 Days and to Adjust the Tax Rate During those Major Event Periods; Clarify When Returns Are Available; and Authorize the Adoption of Administrative Guidelines - ADD-TO ITEM 11.A. 7/28/26
Recommended Action
Staff recommends that Council

1. Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (common sense exemption) of the California Environmental Quality Act (CEQA) Guidelines; and

2. Adopt a resolution placing a measure on the November 2026 election that would amend the City Transient Occupancy Tax to: (1) keep existing transient occupancy tax rates unchanged; (2) authorize the City Council to establish defined Major Event Periods when the tax will apply to lodging paid for or obtained by corporations and other legal entities for stays over 30 days; (3) authorize the City Council to reduce the tax rate for hotels and motels for such stays during Major Event Periods; (4) clarify that TOT refunds require a natural person to occupy the room for thirty-one consecutive days; and (5) authorize related administrative regulations; and

3. Direct the City Attorney to prepare an impartial analysis of the measure.

City of Santa Monica Generated: 7/29/2026 11:30 AM Page 6

11.B. Rescind Resolution Number 11785 (CCS) that was Adopted at the July 14, 2026 City Council Meeting, to Place a Proposed Ballot Measure Amending Articles XVIII and XXIII of the City Charter to Revise Requirements for Owners to Evict Tenants for Breach of a Rental Agreement Based on the Addition of New Occupants, Revise Protections for Certain Occupants Remaining in a Rental Unit After the Original Tenant Vacates, Expand Just Cause Eviction Protections to Single-Unit Dwellings, and Modify Requirements for Good Faith Owner Move-In Evictions from Non-Rent Controlled Rental Units; and Adopt a Resolution to Place a Proposed Ballot Measure Amending Only Article XXIII, Housing Policies, of the City Charter on the November 3, 2026 Ballot to Expand Just Cause Eviction Protections to Single-Unit Dwellings, and Modify Requirements for Good Faith Owner Move-In Evictions For Non-Rent Controlled Rental Units - ADD-TO ITEM 11.B. 7/28/26
Recommended Actions
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (common sense exemption) of the California Environmental Quality Act (CEQA) Guidelines; and

2. Per Rent Control Board recommendation and City Council direction at the July 27, 2028 Special Joint Meeting of the City Council and the Rent Control Board, rescind Resolution Number 11785 (CCS) adopted at the July 14, 2026 City Council meeting and attached as Attachment C to Item 11(B) of the Agenda for the July 14, 2026 City Council meeting, placing a measure on the November 3, 2026 ballot that would amend Articles XVIII and XXIII of the City Charter to revise requirements for owners to evict tenants for breach of a rental agreement based on the addition of new occupants, revise eviction protections for certain occupants remaining in a rental unit after the original tenant vacates, add just cause eviction protections to single-unit dwellings and condominiums, and modify requirements for good faith owner move in evictions from non-rent controlled rental units; and

3. Per Rent Control Board recommendation and City Council direction at the July 27, 2028 Special Joint Meeting of the City Council and Rent Control Board, adopt a replacement resolution placing a measure on the November 3, 2026 ballot that would amend only Article XXIII of the City Charter to add just cause eviction protections to single-unit dwellings and condominiums, and modify requirements for good faith owner move in evictions from non-rent controlled rental units; and

4. Authorize City Councilmembers to file written arguments for or against and direct the City Attorney to prepare an impartial analysis for the replacement measure.

ADJOURNMENT
Agendas and reports are accessible on the City's webpage at www.smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

City of Santa Monica Generated: 7/29/2026 11:30 AM Page 7 Members of the public unable to attend a meeting but wishing to comment on an item(s) listed on the agenda may submit written comments prior to the meeting by meeting by mailing them to: City Clerk, 1685 Main Street, Santa Monica, CA 90401 or to [email protected]. Written comments received from the public by 12 PM on the day of the City Council meeting will be distributed to the City Council prior to the meeting and posted online. Members of the public who submit written public comment on an agenda item may be subject to the Levine Act which requires disclosure of campaign contributions of more than $500 to an officer of the City within the preceding 12 months.

City Hall and the Council Chambers are wheelchair accessible. If you require any special disability related accommodations to either attend or provide public testimony at a Council meeting (i.e. sign language interpreting, access to an amplified sound system, remote option, etc.), please contact the City Clerk’s Office at (310) 458-8211 or TDD: (310) 917- 6626 or via email at [email protected] at least 72 hours prior to the scheduled meeting. Best efforts shall be made to accommodate requests received after the 72-hour deadline. In the case of special meetings, requests should be submitted as early as possible, but no later than noon the day of the special Council meeting.

Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y pida hablar con Esterlina Lugo.

Santa Monica Blue Bus Lines #1, #2, #3, #5, #9 and the EXPO Line serve City Hall.

Parking is available on Main Street, on Olympic Drive, and in the Civic Center Parking Structure (validation free).

City Council
Report
City Council Meeting: July 28, 2026
Agenda Item: 11.A
1 of 6
To: Mayor and City Council
From: Oscar Santiago, Director, Finance Department, Revenue Subject: Adoption of Resolution Placing Proposed Ballot Measure Amending Chapter

1. Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (common sense exemption) of the California Environmental Quality Act (CEQA) Guidelines; and

3. Direct the City Attorney to prepare an impartial analysis of the measure.

Executive Summary
To ensure the City’s Transient Occupancy (TOT) ordinance is modernized for significant growth and activity on the horizon, staff recommends placing a measure on the ballot to update the TOT ordinance. The proposed amendments are intended to update key definitions that affect both tax applicability and eligibility for tax refunds, ensuring the TOT ordinance remains clear and aligned with the City’s future operational needs.

11.A
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If approved, the ordinance would be modernized ahead of the 2028 Olympics to taking into account evolving hotel booking patterns, particularly those involving corporate groups and long-term activations. The changes would also provide Council with additional flexibility during any future major events similar in nature to the Olympics, while also looking to establish more defined pathways for exemptions for individuals experiencing catastrophic circumstances. The proposed ballot measure and ordinance language are attached.

Discussion
Consistent with the direction established in the City Council’s Realignment Plan, Santa Monica is preparing for a period of renewed growth and activation, a “renaissance” fueled by several major events, including the 2026 Ocean Way Festival, the 2027 Super Bowl, and the 2028 Los Angeles Olympic and Paralympic Games. As global interest accelerates, hotel package deals have emerged to meet demand from event visitors and corporate groups seeking premium accommodation. In parallel, questions have surfaced concerning the application of Transient Occupancy Tax (“TOT”) to corporate block bookings, as Santa Monica’s lodging establishments manage changing usage needs and varying booking approaches.

In light of major upcoming events, including the 2028 Olympic and Paralympic Games, the City has received an increased number of inquiries regarding corporate block bookings over extended periods of time that exceed 30 days during the 2028 Olympic and Paralympic Games.

As currently crafted, our existing TOT ordinance would exempt all such stays of more than 30 days from paying any TOT rate at all. Historically, this TOT structure has not created a material financial consideration for the City, and aligns with how competitor jurisdictions handle TOT assessments for stays of 30+ consecutive days. For instance, Beverly Hills, Newport Beach, Huntington Beach, Marina Del Rey, Long Beach, and Santa Barabara all have TOT collection regulations that mirror our practice in Santa Monica.

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However, in light of how hotel booking pattens could evolve in Santa Monica during the 2028 Olympics – especially when considering the number, volume, and scale of the Olympic-related activations that are planned in the City – the lack of ability to collect TOT for corporate hotel bookings of 30+ days could be meaningful.

To address this particular circumstance, staff has been engaged in discussions with relevant stakeholders to assess the best way to address the potential loss of TOT collections during the 2028 Olympics, while also taking into account hotel operator considerations as it relates to existing corporate booking practices that extend beyond 30 days. Those conversations were meaningful, and during the outreach process, the City learned that our local hotels do at times serve groups that remain in the same hotel room for 31 or more days due to displacement, medical treatment, or business related travel.

Taking into account that feedback, while also addressing the TOT collection issues that could emerge for extended duration stays during the 2028 Olympics, staff has developed a narrowly crafted update to our TOT ordinance that would, if enacted, create the following new procedure.
• The update would allow the City Council to recognize and designate Major Event Period in Santa Monica, including the 2028 Olympic and Paralympic Games. • During that Major Event Period, corporations and other corporate entities would have to pay TOT for the entire duration of the stay.
• Further, to address concerns raised by hoteliers regarding the competitive landscape, the proposed update would establish that during Major Event Periods, the City Council would have the authority to adjust the TOT rate for hotels and motels to a rate of between 0% to 15%.

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• Of note, there would no change to natural persons making hotel reservations on their own, as any such individual booking a room for more than 30 days would be subject to the same TOT regulations as currently exist.

The proposed adjustment of establishing a formal Major Event Period would apply to both hotel / motel and homeshare stays, would ensure that any TOT adjustment would be temporary, and would also be clearly tied to a defined timeframe in which tourism activity is expected to surge for longer durations of time. Such temporary adjustments may be used when doing so is expected to meaningfully increase tourism, enhance visitor experience, encourage attendance, or support local business activity.

In addition to the adjustments related to Major Event Periods, the proposed ordinance updates also take into account an administrative fix related to how TOT is handled for a natural person staying in a hotel for more than 30 days outside of Major Event Periods.

Our current TOT regulations do not have an express exemption for permanent residents, and instead, Section 6.68.040 contains a refund mechanism for stays over 30 days. The proposed measure seeks to clarify that Section 6.68.040’s refund mechanism is limited to when the same natural person completes thirty-one consecutive days of occupancy or more and qualifies as a permanent resident under Section

6.68.010(f). Ultimately, if enacted, this additional adjustment would establish that when a natural person is staying in the same hotel for 31 or more days, the TOT refund may be applicable whether the stay is paid for by either the individual or a corporate entity.

Additionally, the proposed update authorizes the Finance Director, or their designee, to establish administrative regulations to implement Chapter 6.68 and to administer exemptions for individuals who qualify as permanent residents and face catastrophic circumstances such as natural disasters, medical treatment or similar situations in which room rentals are paid by non-natural persons are appropriately recognized and exempted in accordance with the updated definitions. This ensures compassionate, consistent administration aligned with the refined definitions.

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Attached as Exhibit A is the resolution submitting this measure to the voters of the City of Santa Monica. The measure text is as follows:

MEASURE " ":

Shall the measure, which maintains the
existing transient occupancy tax rates;
authorizes the City Council to establish
Major Event Periods, as defined, when
the tax applies to lodging paid for or
obtained by corporate entities for stays
over 30 days, and to adjust the hotel and
motel tax rate for such stays; clarifies
that refunds require a natural person to
complete at least thirty-one consecutive
days of occupancy, and authorizes
administrative regulations, be adopted?

YES ________
NO _________
Environmental Analysis
The proposed resolution and/or ordinance are exempt from the provisions of California Environmental Quality Act (CEQA) pursuant to 15061(b)(3) of the State Implementation Guidelines (common sense exemption). The proposed amendments to the City’s Transient Occupancy Tax ordinance are administrative in nature, and based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed resolution ordinance may have a significant effect on the environment.

Financial Impact
There is no immediate financial impact or budget action necessary as a result of recommended action. While temporary rate adjustments may cause short-term decreases in TOT collection per stay, these effects are expected to be offset by increased average daily rates, visitation, and other economic activity. Staff will return to Council if specific budget actions are required in the future.

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Prepared By: Haley Favre-Smith, Business and Revenue Operations Manager Approved Forwarded to Council
Attachments:

A. Reso - TOT Major Event Period Ballot Measure 07.28.26 B. PowerPoint Presentation

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1 City Council Meeting: July 28, 2026 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 AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026, A MEASURE TO AMEND CHAPTER 6.68 OF THE SANTA MONICA MUNICIPAL CODE TO MAINTAIN EXISTING TRANSIENT OCCUPANCY TAX RATES; AUTHORIZE THE CITY

COUNCIL TO ESTABLISH MAJOR EVENT PERIODS WHEN THE TAX APPLIES

TO LODGING PAID FOR OR OBTAINED BY CORPORATIONS AND OTHER LEGAL ENTITIES FOR STAYS OVER 30 DAYS, AND TO ADJUST THE TAX RATE DURING MAJOR EVENT PERIODS TO BETWEEN 15% TO 0%; CLARIFY

THAT REFUNDS REQUIRE A NATURAL PERSON TO OCCUPY THE SAME ROOM FOR THIRTY ONE CONSECUTIVE DAYS; AND AUTHORIZE

ADMINISTRATIVE REGULATIONS TO ADMNISTER THE TAX, AUTHORIZING

CITY COUNCIL MEMBERS TO FILE WRITTEN ARGUMENTS FOR OR AGAINST

THE MEASURE, AND DIRECTING THE CITY ATTORNEY TO PREPARE AN

IMPARTIAL ANALYSIS OF THE MEASURE
WHEREAS, on October 8, 1963, the City Council of the City of Santa Monica adopted Ordinance No. 625 (CCS), which established the City’s Tax on Transients for Occupancy (the “TOT”), which has been codified in Chapter 6.68 of the Santa Monica Municipal Code; and
WHEREAS, the TOT is an excise tax imposed on transients for the privilege of enjoying lodging within the City; and
WHEREAS, on November 2, 2004, the voters approved Measure N, which established a TOT rate of 14% of the total charge for room rental within the City; and WHEREAS, on November 8, 2022, the voters approved Measure CS, which established the current TOT rate of 15% for hotels and 17% for home-shares of the total charge for room rental within the City; and

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification 2 WHEREAS, many residents live in the City of Santa Monica because the City invests in community priorities, offering extensive services and programs that substantially enhance the quality of life of its residents; and WHEREAS, in alignment with the City Council’s Realignment Plan, the City has been proactively preparing for a “renaissance” through strategic initiatives, including promoting major upcoming events, including activations associated with the 2026 Ocean Way Festival, the 2027 Super Bowl, and the 2028 Los Angeles Olympic and Paralympic Games; and
WHEREAS, as global interest in staying in the City intensifies, hotel package deals have emerged to meet demand from event visitors and corporate groups seeking premium accommodations over an extended period of time; and WHEREAS, corporations have expressed interest in block booking rooms ahead of the 2028 Olympic Games and other events; and
WHEREAS, Santa Monica Municipal Code Section 6.68.010(f) defines a “transient” as “[a]ny person who, for any period of not more than thirty days either at that person’s expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel as hereinafter defined, for which lodging or use of lodging space a charge is made”; and
WHEREAS, corporations have inquired whether corporate block bookings exceeding 30 days fall outside the definition of “transient” and therefore are not subject to the TOT; and
WHEREAS, “person” is broadly defined as “[a]ny individual, corporation, company, association, firm, copartnership, or any group of individuals acting as a unit”; and

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification 4 WHEREAS, authorizing the City Council to adjust the TOT rate between 15% and 0% for room rentals by corporations or other corporate entities regardless of length of stay during Major Event Periods provides additional flexibility to hotels and motels; and WHEREAS, Chapter 6.68 does not preclude the City from collecting TOT for lodging paid for, obtained, controlled, or held by a corporation or other legal entity for more than 30 days is excluded from taxation under the existing provisions of Chapter

6.68; and
WHEREAS, other local jurisdictions that collect TOT, including San Francisco, have been involved in litigation over the applicability of their TOT to corporate reservations; and
WHEREAS, although the City Council intends the proposed amendments to clarify the proper application of the existing TOT, the City Council is further submitting the amendments to the voters to avoid uncertainty concerning their enforceability; 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 3, 2026, for the purpose of electing members of the Santa Monica City Council, the Santa Monica Rent Control Board, the Santa Monica-Malibu Unified School District, and the Santa Monica 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 3, 2026, the

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification 5 following measure shall be submitted to the qualified electors of the City of Santa Monica:

MEASURE " ":

YES ________
NO _________
SECTION 2. The measure shall be adopted if approved by a majority of the voters voting on the measure.

SECTION 3. 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 4. 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 5. 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 it, which shall not exceed 500 words in length and shall state that the measure was placed on the ballot by the City Council. The impartial analysis shall be filed

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification 6 by the date set by the City Clerk for the 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 election materials available for public examination in the City Clerk's office.

SECTION 6. The City Council authorizes its members, as follows, to file written arguments for or against the measure described above, the text of which is contained in Exhibit 1 to this Resolution, which Exhibit is incorporated by reference herein:

FOR:

AGAINST:

All written arguments filed by any person in favor of or against any 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 7. The City Clerk shall cause the text of the measure, which is contained in Exhibit 1, together with the City Attorney’s impartial analysis, and any arguments for or against the measure, as well as any rebuttal, to be mailed to all qualified voters with the sample ballot. 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) days before the General Municipal Election, shall cause the text of the measure to be published once in the official

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification 7 newspaper and in each 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 conduct properly the election.

SECTION 8. The provisions of Resolution Numbers 11763 and 11764 are referred to and incorporated into this resolution for more particulars concerning the conduct of the General Municipal Election to be held on November 3, 2026, 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 9. Neither this Resolution nor the submission of the measure to the voters shall be construed as an admission or concession concerning the proper interpretation or application of the existing provisions of Chapter 6.68, and the City reserves all rights and authority to administer and enforce the existing provisions consistent with the City’s interpretation of those provisions.

SECTION 10. 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:
______________________

HEIDI VON TONGELN
City Attorney

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Exhibit 1
CITY COUNCIL PROPOSED MEASURE TO AMEND CHAPTER 6.68 OF THE

SANTA MONICA MUNICIPAL CODE TO MAINTAIN EXISTING HOTEL TAX

RATES, AUTHORIZE THE CITY COUNCIL TO ESTABLISH MAJOR EVENT

PERIODS WHEN THE TAX APPLIES TO LODGING PAID FOR OR OBTAINED BY CORPORATIONS AND OTHER LEGAL ENTITIES FOR STAYS OVER 30

DAYS, AND TO ADJUST THE TAX RATE DURING MAJOR EVENT PERIODS TO BETWEEN 15% TO 0%; CLARIFY THAT REFUNDS REQUIRE A NATURAL

PERSON TO OCCUPY THE SAME ROOM FOR THIRTY ONE CONSECUTIVE DAYS; AND AUTHORIZE ADMINISTRATIVE REGULATIONS TO ADMNISTER

THE TAX
WHEREAS, on October 8, 1963, the City Council of the City of Santa Monica adopted Ordinance No. 625 (CCS), which established the City’s Tax on Transients for Occupancy (the “TOT”), which has been codified in Chapter 6.68 of the Santa Monica Municipal Code; and
WHEREAS, the TOT is an excise tax imposed on transients for the privilege of enjoying lodging within the City; and
WHEREAS, on November 2, 2004, the voters approved Measure N, which established a TOT rate of 14% of the total charge for room rental within the City; and WHEREAS, on November 8, 2022, the voters approved Measure CS, which established the current TOT rate of 15% for hotels and 17% for home-shares of the total charge for room rental within the City; and
WHEREAS, many residents live in the City of Santa Monica because the City invests in community priorities, offering extensive services and programs that substantially enhance the quality of life of its residents; and WHEREAS, in alignment with the City Council’s Realignment Plan, the City has been proactively preparing for a “renaissance” through strategic initiatives, including promoting major upcoming events, including activations associated with the 2026 Ocean

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Exhibit 1
Way Festival, the 2027 Super Bowl, and the 2028 Los Angeles Olympic and Paralympic Games; and
WHEREAS, as global interest in staying in the City intensifies, hotel package deals have emerged to meet demand from event visitors and corporate groups seeking premium accommodations over an extended period of time; and WHEREAS, corporations have expressed interest in block booking rooms ahead of the 2028 Olympic Games and other events; and
WHEREAS, Santa Monica Municipal Code Section 6.68.010(f) defines a “transient” as “[a]ny person who, for any period of not more than thirty days either at that person’s expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel as hereinafter defined, for which lodging or use of lodging space a charge is made”; and
WHEREAS, corporations have inquired whether corporate block bookings exceeding 30 days fall outside the definition of “transient” and therefore are not subject to the TOT; and
WHEREAS, “person” is broadly defined as “[a]ny individual, corporation, company, association, firm, copartnership, or any group of individuals acting as a unit”; and
WHEREAS, the existing 30-day limitation in the definition of “transient” was intended to benefit natural persons residing in hotels on a long-term basis, and not corporations or other legal entities that pay for, obtain, control, or hold rights to lodging for use by others; and
WHEREAS, a corporation, company, association, firm, partnership, or other legal

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Exhibit 1
entity is not a natural person and cannot physically occupy a room; and WHEREAS, although not a natural person, a corporation or other legal entity may pay for, obtain, control, or hold the legal right to occupancy and may sell or transfer such use rights to others for profit; and
WHEREAS, Section 6.68.040 provides a refund mechanism for room rentals when occupancy extends for 31 or more days; and
WHEREAS, clarifying that the refund mechanism in Section 6.68.040 is limited to occupancy by the same natural person for 31 or more days is consistent with existing City practices; and
WHEREAS, during the 2028 Olympic and Paralympic Games and other similar events (“Major Event Periods”), the City expects materially increased tourism and demand for hotel accommodations in the City over an extended period of time; and WHEREAS, the City may lose significant revenue if corporate entities take the position that the City’s TOT does not apply to corporate block booking during Major Event Periods; and
WHEREAS, clarifying the TOT ordinance to require that TOT must be paid by corporations or other corporate entities during Major Event Periods, as declared by the City Council, regardless of the length of stay avoids potential disputes; and WHEREAS, authorizing the City Council to adjust the TOT rate between 15% and 0% for room rentals by corporations or other corporate entities regardless of length of stay during Major Event Periods provides additional flexibility to hotels and motels; and WHEREAS, Chapter 6.68 does not preclude the City from collecting TOT for lodging paid for, obtained, controlled, or held by a corporation or other legal entity for

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Exhibit 1
more than 30 days is excluded from taxation under the existing provisions of Chapter

SECTION 1. Section 6.68.010 of the Santa Monica Municipal Code is amended to read as follows (new text is shown by underlining and deleted text is shown by strikeout):

6.68.010 Definitions.

The following words and phrases, when used in this ordinance, shall, for the purpose of this Chapter, have the following respective meanings except where the context clearly indicates a different meaning:
a) Transient.

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Exhibit 1
1) Any natural person who Any person who, for any period of not more than thirty days either at that person's expense or at the expense of another, obtains lodging or the use of any lodging space in any hotel as hereinafter defined, for which lodging or use of lodging space a charge is made.; or
2) Any corporation, company, copartnership, partnership, joint venture, limited liability company, or other legal entity that pays or is obligated to pay any portion of the room rental associated with its own right of occupancy or the occupancy of another, exercises a right of occupancy, or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement.
b) Person. Any natural person, individual, corporation, company, association, firm, copartnership, partnership, joint venture, limited liability company, estate, trust, business trust, receiver, trustee, syndicate, other legal entity, or any group of individuals acting as a unit.
c) Hotel. Any public or private hotel, inn, hostelry, tourist home or house, motel, rooming house, bed and breakfast, home-share (as defined in Santa Monica Municipal Code Section 6.20.010), or other lodging place within the City of Santa Monica offering lodging, wherein the owner and operator thereof, for compensation, furnishes lodging to any transient.
d) Room rental. Any charge required by any such hotel for lodging and/or lodging space furnished to any such transient, including, but not limited to, furniture, fixtures, appliances, linens, towels, non-coin-operated safes, and maid service. Room rental shall not include any amount upon which a sales or use tax is imposed with respect to the sale of food products.

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Exhibit 1
e) Director of Finance. The Director of Finance of the City of Santa Monica. f) Permanent resident. Any natural person who, as of a given date, has occupied or has had the right to occupy a room or rooms in a particular hotel, as herein defined, for the thirty consecutive days next preceding such date.

SECTION 2. Section 6.68.040 of the Santa Monica Municipal Code is amended to read as follows (new text is shown by underlining):

6.68.040 Collection; Returns for Room Rentals of Thirty-One or More Consecutive Days.
(a) Collection. On and after the effective date of this ordinance, every person receiving any payment for room rental with respect to which a tax is levied under this ordinance shall collect the amount of tax hereby imposed from the transient on whom the same is levied or from the person paying for such room rental, at the time payment for such room rental be made.
(b) Returns for Room Rentals of Thirty-One or More Consecutive Days. (1) Eligible Returns. Except as provided in subsection (2), below, and Section

6.68.105, Exemptions, where Where the tax has been collected for room rental for thirty days or less and: (i) the room rental occupant subsequently completes extends beyond thirty-one consecutive days of occupancy; and (ii) the same natural person has occupied the room for 31 days or more, the person whose duty it is to collect said tax may return such tax to the occupant or person obligated to pay such tax.

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Exhibit 1
(2) Ineligible Returns. When the tax was imposed during a Major Event Period on a non-natural person described in 6.68.010(a)(2), the person whose duty it is to collect said tax shall not be required to return such tax to the transient obligated to pay such tax. (c) If said person whose duty it is to collect said tax has paid such tax over to the City, he or she may, within one year from the date of payment to the Director of Finance, and provided he or she has returned such tax as authorized above to the occupant or person obligated to pay such tax, either take credit for the tax so paid on any subsequent return filed by him or her or file a claim for refund of such tax. Such claim may be paid to such person by the Director of Finance. The taxes required to be collected hereunder shall be deemed to be held in trust by the person required to collect the same until remitted as hereinafter required.

SECTION 3. Section 6.68.030 of the Santa Monica Municipal Code is added to read as follows:

6.68.030 Major Event Period; Council Authority to Temporarily Adjust Tax Rate (a) The City Council may, by resolution, establish a Major Event Period in connection with a major event or series of related events that the City Council determines is reasonably expected to materially increase tourism or demand for hotel accommodations in the City or surrounding region over an extended period of time, including, but not limited to, the 2028 Olympic and Paralympic Games. The resolution shall identify the underlying event or series of events and the beginning and ending dates of the Major Event Period. A Major Event Period may begin before and end after the underlying event or series of events. (b) For a Major Event Period established pursuant to subsection (a), the City Council may, by resolution, temporarily adjust the transient occupancy tax rate imposed under Section 6.68.020

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Exhibit 1
on transients described in Section 6.68.010(a)(2) for stays of thirty days or less, or for stays of thirty-one consecutive days or longer, to a rate between fifteen percent and zero percent. The resolution shall specify the adjusted rate, the effective beginning and ending dates of the rate adjustment, and any administrative requirements necessary to implement the reduction. The adjusted rate may apply only during all, or a portion of, the Major Event Period. (c) A temporary rate adjustment adopted pursuant to this Section does not amend the tax rate otherwise imposed by this Chapter. Upon expiration of the temporary reduction, the otherwise applicable tax rate shall automatically resume without further action by the City Council.

SECTION 4. Section 6.68.105 of the Santa Monica Municipal Code is amended to read as follows:

6.68.105 Additional Exemptions and Administrative Regulations. (a) Notwithstanding any other provision of this Chapter, the Director of Finance, or designee, may establish and administer an exemption from the tax for room rental associated with occupancy by a natural person who has occupied or had the right to occupy a room or rooms in a particular hotel for at least thirty-one consecutive days, when any portion of the room rental is paid by a person other than a natural person and the occupancy is necessitated by:
(1) displacement from a residence caused by fire, natural disaster, or other casualty; (2) extended medical treatment; or
(3) other comparable circumstances beyond the natural person’s control; or (4) other grounds approved by the Director of Finance.
(b) The Director of Finance may adopt administrative regulations, rules, or require supporting documentation, to implement the provisions of this Chapter including, authorizing the return,

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Exhibit 1
refund, or credit of tax collected or remitted with respect to a qualifying occupancy. Any claim for refund or credit shall be subject to the one-year limitation established by Section 6.68.040.

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Attachment: Reso - TOT Major Event Period Ballot Measure 07.28.26 (7824 : 11.A Transient Occupancy Tax Code Exemption Clarification Proposed Ballot Measure to Amend
Transient Occupancy Tax
Chapter 6.68
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)

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Attachment: PowerPoint Presentation (7824 : 11.A Transient Occupancy Tax Code

WHAT IS TRANSIENT

OCCUPANCY TAX
(TOT)?
• A tax on rental of lodging
(hotels, motels, homeshares) for stays under 30
days
• 15% on hotel and motels stays
• 17% on home-sharing
• Collected and remitted
monthly to the City by lodging
operators
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)

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Attachment: PowerPoint Presentation (7824 : 11.A Transient Occupancy Tax Code

WHY UPDATE THE TOT
ORDINANCE?
• TOT collections are currently only collected
for stays of up to 30 days
• With major events coming to the region – the
2028 Olympics & Paralympic Games – we
have had an increase in inquiries regarding
long-term hotel bookings that would extend
beyond 30 days.
• Accordingly, we have worked with our hotel
partners to develop TOT regulatory updates
to take into account transient stays during
Major Event Periods.

Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)

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Attachment: PowerPoint Presentation (7824 : 11.A Transient Occupancy Tax Code • Maintain existing tax rates (15% hotels, 17% home-sharing) • Allow City Council to define Major Event Periods under certain circumstances
• Requires paying TOT on corporate-paid stays over 30 days during these periods
• Permit TOT rate adjustments (from 0% to 15%) for such stays during these periods
• Require 31-day consecutive stay by a natural person for waiver of TOT payments
• Empower administrative regulations for exemptions

TOT AMENDMENTS
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)

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Attachment: PowerPoint Presentation (7824 : 11.A Transient Occupancy Tax Code

RECOMMENDED ACTIONS
• Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (common sense exemption) of the CEQA Guidelines;
• Adopt a resolution placing a measure on the November 2026 election that would amend the City Transient Occupancy Tax to:

1. Keep existing hotel tax rates unchanged;

2. Authorize the City Council to establish defined Major Event Periods when the tax will apply to lodging paid for or obtained by corporations and other legal entities for stays over 30 days;

3. Authorize the City Council to reduce the tax rate for hotels and motels for such stays during Major Event Periods;

4. Clarify that TOT refunds require a natural person to occupy the room for thirty-one consecutive day;

5. Authorize related administrative regulations; and
• Direct the City Attorney to prepare an impartial analysis of the measure.

Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)

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Attachment: PowerPoint Presentation (7824 : 11.A Transient Occupancy Tax Code

BALLOT QUESTION
Item 11-A
July 28, 2026 (Special Meeting)
Item 11-A
July 28, 2026 (Special Meeting)

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Attachment: PowerPoint Presentation (7824 : 11.A Transient Occupancy Tax Code City Council
Report
City Council Meeting: July 28, 2026
Agenda Item: 11.B
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To: Mayor and City Council
From: Heidi Von Tongeln, City Attorney, City Attorney's Office Subject: Rescind Resolution Number 11785 (CCS) that was Adopted at the July 14, 2026 City Council Meeting, to Place a Proposed Ballot Measure Amending Articles XVIII and XXIII of the City Charter to Revise Requirements for Owners to Evict Tenants for Breach of a Rental Agreement Based on the Addition of New Occupants, Revise Protections for Certain Occupants Remaining in a Rental Unit After the Original Tenant Vacates, Expand Just Cause Eviction Protections to Single-Unit Dwellings, and Modify Requirements for Good Faith Owner Move-In Evictions from Non-Rent Controlled Rental Units; and Adopt a Resolution to Place a Proposed Ballot Measure Amending Only Article XXIII, Housing Policies, of the City Charter on the November 3, 2026 Ballot to Expand Just Cause Eviction Protections to Single-Unit Dwellings, and Modify Requirements for Good Faith Owner MoveIn Evictions For Non-Rent Controlled Rental Units Recommended Actions
Staff recommends that the City Council:

1. Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (common sense exemption) of the California Environmental Quality Act (CEQA) Guidelines; and

3. Per Rent Control Board recommendation and City Council direction at the

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July 27, 2028 Special Joint Meeting of the City Council and Rent Control Board, adopt a replacement resolution placing a measure on the November 3, 2026 ballot that would amend only Article XXIII of the City Charter to add just cause eviction protections to single-unit dwellings and condominiums, and modify requirements for good faith owner move in evictions from non-rent controlled rental units; and

4. Authorize City Councilmembers to file written arguments for or against and direct the City Attorney to prepare an impartial analysis for the replacement measure.

Executive Summary
Santa Monicans have voted to enshrine eviction protections for most of the City’s renters in the City Charter. In 1979, the voters adopted Article XVIII (Rent Control), which both limits rent increases for rent controlled units and the “just cause” reasons for eviction from rent controlled units. In 2010, the voters passed Measure RR, which amended Article XVIII and adopted Article XXIII (Housing Policies) to effectively extend the just cause eviction protections that already applied to rent controlled properties, to most multi-unit rental properties exempt from Article XVIII-i.e., multi-unit properties built after Article XVIII was adopted. The just cause eviction provisions of both Article XVIII (Section 1806) and Article XXIII (Section 2304) are materially the same in that they prohibit evictions except for the same 9 reasons and Section 1806 allows evictions for one additional reason not applicable to non-rent controlled units. The result is that tenants in multi-unit housing enjoy essentially the same protections from eviction without cause, whether the tenant lives in a rent controlled or non-rent controlled unit.

On January 27, 2026, the City Council directed the City Attorney’s Office to return to council with options for ensuring that existing tenancies will not be terminated when certain close family members move into existing tenancies and directed the City Manager and City Attorney to evaluate additional tenant-stability and anti-displacement tools used in similarly situated jurisdictions. The Council further directed this work to be done in consultation with the Rent Control Board, understanding that the Charter respects the Rent Control Board’s ability to exercise its powers and duties independent of the City Council, City Manager, and City Attorney.

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Following a survey of eviction regulations in jurisdictions with strong tenant protections, on May 14, 2026, the City Attorney’s Office presented to the Rent Control Board potential amendments to both Articles XVIII and XXIII to expand just cause eviction protections to single-unit dwellings, limit certain existing grounds for eviction, and provide additional tools to ensure deed restricted affordable housing units are utilized by low-income households who need them. The City Attorney’s Office sought feedback from the Board as to each of the proposed eviction protections.

At its June 11, 2026 meeting, the Santa Monica Rent Control Board voted to consider the options presented by the CAO.

At its June 25, 2026 meeting, the Board voted to recommend that the City Council place additional proposed amendments to Article XVIII on the November 3, 2026 ballot, as follows:
1) Amend Article XVIII, Section 1806(a)(1), to establish a small-rental-debt threshold, based on the average of HUD Small Area Fair Market Rents for equivalent-sized units in residential ZIP Codes located wholly or partially within the City, before nonpayment of rent may serve as a basis to terminate a tenancy; 2) Amend Article XVIII, Section 1806(a)(2), to prohibit terminating a tenancy based on the addition of certain family members, dependents, minor children, and non-family household members, subject to applicable law, affordable housing deed restriction, notice and approval requirements, and occupancy limits; 3) Amend Article XVIII, Section 1806(a) to add just cause grounds for eviction and related notice provisions to address compliance with applicable affordable housing deed restrictions;
4) Amend Article XVIII, Section 1806(c), to prohibit the eviction of certain covered occupants who have resided in a rental unit for at least one year at the time a tenant vacates;

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5) Amend Article XVIII, by adding new Section 1822 to include a finding that Article XVIII is more protective than California Civil Code section 1946.2, to support continued application of Section 1806 to rent-controlled tenancies.

At its July 14, 2026 meeting, the City council adopted three resolutions consistent with the recommendation of the Rent Control Board and, where applicable, including parallel provisions that would extend the same new protections to non-controlled residential rental units, as follows:
• Resolution Number 11783 (CCS) adopted the recommendation to submit a ballot measure to the voters to make certain administrative changes and add requirements for owners to evict tenants for noncompliance with affordable housing deed restrictions;
• Resolution Number 11784 (CCS), adopted the recommendation to submit a ballot measure to prohibit evictions based on non-payment of rent when the tenant owes less than a fair threshold amount of rent; and • Resolution Number 11785 (CCS)adopted the recommendation to submit a ballot measure to revise requirements for owners to evict tenants for breach of a rental agreement based on the addition of new occupants, revise protections for certain occupants remaining in the unit after the original tenant vacates, expand just cause eviction protections to single-unit dwellings, and modify requirements for good faith owner move in evictions from non-rent controlled rental units. (Attachments A, B)
Following the adoption of Resolution 11785 at the July 14, 2026 City Council meeting, the City received concerns regarding the proposed amendments to Sections 1806(a)(2) and 1806(c) of Article XVIII and Sections 2304(a)(2) and 2304(c) of Article XXIII that would revise the requirements for owners to evict tenants for breach of a rental

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agreement based on the addition of new occupants and revise protections for certain occupants remaining in the unit after the original unit vacates. New concerns raised included that the proposed amendments may effectively force landlords to enter into new landlord-tenant relationships, that the proposed amendments could create a possibility that a landlord would be prohibited from taking back possession of their property perpetually, and that the proposed amendments would circumvent state-law rights to reset rents under specified conditions.

In light of the new concerns raised, the City Council and Rent Control Board conducted a Joint Special Meeting on July 27, 2028 to receive an update from staff on the concerns raised and give direction on potential modifications to the provisions in the ballot measure adopted by Resolution 11785.

At the meeting, the Rent Control Board commissioners recommended that the City Council remove the proposals in Resolution 11785 that would amend Article XVIII to allow for more study and community input on those proposed changes. The City Council then directed staff to return so that the Council could consider: 1) rescinding Resolution 11785; and 2) enacting a new replacement resolution that would submit a ballot measure to the voters that would include the proposed amendments to Article XXIII of the City Charter only. Specifically, the ballot measure would expand just cause eviction protections to single-unit dwellings and condominiums and to modify requirements for good faith owner move in evictions from non-rent controlled rental units to align the requirements with those already in Article XVIII. The Resolution would not include the other amendments to Article XXIII or the amendments to Article XVIII proposed in Resolution 11785 related to revise the requirements for owners to evict tenants for breach of a rental agreement based on the addition of new occupants and revise protections for certain occupants remaining in the unit after the original unit vacates. The attached Resolution is consistent with Council direction, thereby effectively narrowing the original scope of Resolution 11785, giving the Board and the Council more time to carefully consider and develop appropriately tailored eviction protections related to adding additional occupants to a rental unit and family members and occupants being allowed to stay when a tenant of the owner vacates.

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Discussion
Consistent with the recommendation of the Rent Control Board and the direction of the City Council at the July 27, 2026 Special Joint Meeting, staff recommends the Council rescind Resolution 11785 and adopt the attached Resolution described in more detail below.

Proposed Resolution: Replacement Resolution Extending Just Cause Eviction Protections for Single-Unit Dwellings and Updating Owner Move-In Eviction Regulations (Section 2302 and 2304(a)(8))
The proposed removes the portions of Resolution 11785 covering eviction protections related to additional occupants and carries over, with no changes, those portions related to extending just cause eviction protections to tenants in single-unit dwellings and condominiums and updating owner move-in eviction regulations to align Article XXIII with Article XVIII. For ease of reference, the discussion on these provisions from the July 14, 2026 City Council staff report are set forth below:

Article XXIII as adopted in 2010 applies to residential rental units that are not subject to rent control and are not single-unit dwellings.

In the past several years, many jurisdictions in California have extended just cause eviction protections to most single-unit dwellings, including City of Los Angeles, County of Los Angeles (unincorporated areas), West Hollywood, Culver City, Pasadena, San Francisco, Oakland, Berkeley, Alameda, and East Palo Alto. Notably, some jurisdictions that extend just cause eviction protections to single-unit dwellings do exempt single-unit dwellings by an owner or owner’s immediate family member who shares a bathroom or kitchen facilities in common with the tenant. The TPA similarly applies to single-unit dwellings other than those in which the owner-occupant rents no more than two units (including ADUs) or bedrooms, those owned by certain business entities, and those otherwise eligible for exemption but for which the landlord has not served the tenant

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with a written notice of the exemption.

Should just cause eviction protections be extended to single-unit dwellings, including or limited to condominiums, landlords of such units are much more likely to seek to evict tenants for the owner or owner’s relative to move in than are landlords of multi-unit properties that are currently subject to Article XXIII. Section 2304(a)(8) authorizes landlords to terminate tenancies for the owner or family member to move in, subject to certain guardrails to ensure that this authorization is not used to circumvent just cause requirements.

When Section 2304(a)(8) was adopted in 2010, it contained all of the same limitations on owner move-in evictions as the parallel provision of Article XVIII, Section 1806(a)(8).

In particular, both provisions required that the owner or qualified relative seeking to move into the rental unit intend in good faith to move into the unit within 30 days after the tenant vacates and to occupy the unit for at least one year, and required that the landlord re-offer the unit to the tenant in the event the landlord or family member failed to move in to the unit within 30 days. These provisions of Article XVIII were amended in 2022 with the adoption of Measure RC, to require that the owner or qualified member who seeks to move into a unit intend in good faith do so within sixty days after the tenant vacates and to occupy the rental unit for at least two years, absent extenuating circumstances, and to provide that an owner must re-offer the unit if the owner or family member fails to occupy the unit for at least two years. No parallel amendment was made to Article XXIII in 2022, but if just cause eviction protections are extended to single family homes, it would be advisable to add the same protections to Article XXIII.

Should the City Council also wish to extend the just cause protections to single-unit dwellings and provide the same level of protection against bad faith owner move in evictions that rent controlled tenants have, it could do so by placing a measure on the November 2026 ballot to amend Article XXIII as set forth in the proposed resolution attached as Attachment C.

Environmental Analysis

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The proposed resolutions and/or ordinance are exempt from the provisions of California Environmental Quality Act (CEQA) pursuant to 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed resolutions and/or ordinance may have a significant effect on the environment.

Financial Impacts & Budget Actions
Based on past practice, the Rent Control Board would reimburse the City for any additional costs incurred by the City as a result of placing the measures on the November ballot.

Prepared By: Romy Ganschow, Chief Deputy City Attorney
Approved Forwarded to Council
Attachments:

A. A - July 14 2028 Staff Report
B. B-RESO 11785
C. C-Reso Article XXIII
D. Written Comments
E. PowerPoint Presentation

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City Council
Report
City Council Meeting: July 14, 2026
Agenda Item: 11.B
1 of 23
To: Mayor and City Council
From: Heidi Von Tongeln, City Attorney, City Attorney's Office, Administration Subject: Adoption of Resolutions Placing Proposed Ballot Measures Amending Articles XVIII, Rent Control Law, and XXIII, Housing Policies, of the City Charter on the November 3, 2026 Ballot
Recommended Actions

1. Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (common sense exemption) of the California Environmental Quality Act (CEQA) Guidelines; and

2. Per Rent Control Board recommendation and staff recommendation, adopt the attached resolution (Attachment A) placing a measure on the November 3, 2026, ballot that would amend Articles XVIII and XXIII of the City Charter to reaffirm the application of local just cause eviction laws, update term limit provisions for Rent Control Board Commissioners, update and clarify procedures for increasing the maximum annual rent controlled rental unit registration fee, clarify Rent Control Board authority to regulate time limits for deciding individual rent adjustment petitions, and add requirements for owners to evict tenants for non-compliance with affordable housing deed restrictions; and

3. Per Rent Control Board and staff recommendation, adopt the attached resolution (Attachment B) placing a measure on the November 3, 2026 ballot that would amend Articles XVIII and XXIII of the City Charter to prohibit evictions based on non-payment of rent when the tenant owes less than a fair threshold amount of rent; and

4. Per Rent Control Board and staff recommendation, adopt the attached resolution (Attachment C) placing a measure on the November 3, 2026 ballot that would amend Articles XVIII and XXIII of the City Charter to revise requirements for owners to evict tenants for breach of a rental agreement based on the addition of new occupants, revise eviction protections for certain occupants remaining in a rental unit after the original tenant vacates, add just cause eviction protections to single-unit dwellings and condominiums, and modify requirements for good faith owner move in evictions from non-rent controlled rental units; and

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Attachment: A - July 14 2028 Staff Report (7848 : 11.B. Ballot Measures Amending Rent Control Law) 2 of 23

5. Authorize City Councilmembers to file written arguments for or against and direct the City Attorney to prepare an impartial analysis for each measure.

Executive Summary
Santa Monicans have voted to enshrine eviction protections for most of the City’s renters in the City Charter. In 1979, the voters adopted Article XVIII (Rent Control), which both limits rent increases for rent controlled units and the “just cause” reasons for eviction from rent controlled units. In 2010, the voters passed Measure RR, which amended Article XVIII and adopted Article XXIII (Housing Policies) to effectively extend the just cause eviction protections that already applied to rent controlled properties, to most multi-unit rental properties exempt from Article XVIII—i.e., multi-unit properties built after Article XVIII was adopted. The just cause eviction provisions of both Article XVIII (Section 1806) and Article XXIII (Section 2304) are materially the same in that they prohibit evictions except for the same 9 reasons and Section 1806 allows evictions for one additional reason not applicable to non-rent controlled units. The result is that tenants in multi-unit housing enjoy essentially the same protections from eviction without cause, whether the tenant lives in a rent controlled or non-rent controlled unit.

On January 27, 2026, the City Council directed the City Attorney’s Office to return to council with options for ensuring that existing tenancies will not be terminated when certain close family members move into existing tenancies, and directed the City Manager and City Attorney to evaluate additional tenant-stability and anti-displacement tools used in similarly situated jurisdictions. The Council further directed this work to be done in consultation with the Rent Control Agency, understanding that the Charter respects the Rent Control Board’s ability to exercise its powers and duties independent of the City Council, City Manager, and City Attorney.

Following a survey of eviction regulations in jurisdictions with strong tenant protections, on May 14, 2026, the City Attorney’s Office presented to the Rent Control Board potential amendments to both Articles XVIII and XXIII to expand just cause eviction protections to single-unit dwellings, limit certain existing grounds for eviction, and provide additional tools to ensure deed restricted affordable housing units are utilized by

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low-income households who need them. The City Attorney’s Office sought feedback from the Board as to each of the proposed eviction protections.

At its June 11, 2026 meeting, the Santa Monica Rent Control Board voted to consider the options presented by the CAO. The Board further voted to recommend that the City Council place on the ballot for the November 3, 2026 general election other amendments to City Charter Article XVIII, as follows:
1) Amend Article XVIII, section 1803(e) to allow Board Commissioners to serve a maximum of three terms and clarify that appointed terms count toward the overall limit and that partial terms of more than two years count as one term;
2) Amend Article XVIII, section 1803(n) regarding registration fees for rent controlled units to clarify that the maximum allowable fee is a cap on the fee amount but not the actual fee, establish annual CPI-based adjustments to the maximum allowable fee beginning in 2028, subject to a five percent annual cap and no annual decreases, and otherwise preserve the Board’s discretion to set the registration fee below the cap, and to request and receive funding from other sources when necessary, and preserving landlords’ ability to pass-through a portion of the registration fee to tenants; and
3) Amend Article XVIII, section 1805(d)(12) to clarify that Board rules and regulations governing petition processing timelines shall provide for final action on any individual rent adjust petition within 120 days of filing of the petition, allowing for extensions of time for good cause. (Attachments D, E)

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At its June 25, 2026 meeting, the Board voted to recommend that the City Council place additional proposed amendments to Article XVIII on the November 3, 2026 ballot, as follows:
1) Amend Article XVIII, Section 1806(a)(1), to establish a small-rental-debt threshold, based on the average of HUD Small Area Fair Market Rents for equivalent-sized units in residential ZIP Codes located wholly or partially within the City, before nonpayment of rent may serve as a basis to terminate a tenancy;
2) Amend Article XVIII, Section 1806(a)(2), to prohibit terminating a tenancy based on the addition of certain family members, dependents, minor children, and non-family household members, subject to applicable law, affordable housing deed restriction, notice and approval requirements, and occupancy limits;
3) Amend Article XVIII, Section 1806(a) to add just cause grounds for eviction and related notice provisions to address compliance with applicable affordable housing deed restrictions;
4) Amend Article XVIII, Section 1806(c), to prohibit the eviction of certain covered occupants who have resided in a rental unit for at least one year at the time a tenant vacates;
5) Amend Article XVIII, by adding new Section 1822 to include a finding that Article XVIII is more protective than California Civil Code section 1946.2, to support continued application of Section 1806 to rent-controlled tenancies.
(Attachments F, G)
Should Council choose to follow the Rent Control Board’s recommendation and adopt a resolution placing the foregoing eviction regulation amendments on the November 2026

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ballot, staff recommends that the ballot measure include parallel amendments to Article XXIII, to ensure continued consistency of the City’s two just cause eviction laws. Staff further proposes that City Council place before the voters a measure to extend just cause eviction protections, including updated protections for owner move in evictions, to single-unit dwellings in keeping with many other jurisdictions around the state with strong renter protections.

Discussion
Based on the nature of the proposals that have been considered, staff recommends the adoption of 3 resolutions placing 3 separate measures on the November 2026 ballot as follows.

I. Ballot Measure 1 – Administrative Amendments
a. Preservation of Local Just Cause Requirements (Sections 1822 and 2310)
In 2019, the California legislature adopted the Tenant Protection Act (“TPA”), which implemented a version of rent control and just cause eviction protections state-wide, subject to certain exemptions. The just cause eviction provision of TPA, Civil Code section 1946.2, provides that rental units subject to a local law requiring just cause to terminate a tenancy are exempt from Civil Code 1946.2. If the local law is adopted or amended after September 1, 2019, however, the local law applies in place of the TPA only if it is more protective than the TPA.

To be “more protective,” all of the following must be satisfied: (1) the local law must include just cause reasons for terminating a tenancy consistent with the TPA; (2) the local law must further limit the reasons for terminating a tenancy, provide for higher relocation assistance amounts, or provide additional tenant protections not prohibited by any other provision of law; and (3) the local government must make a binding finding

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within the local just cause eviction law that the it is more protective than the TPA. Civil Code section 1946.2(i)(1)(B).

Accordingly, in order to ensure the continued application of Santa Monica’s just cause eviction laws, the Rent Control Board and the CAO recommend that Article XVIII and Article XXIII both be amended to reaffirm that the City’s just cause eviction laws are more protective and prevail over state law, consistent with Section 1946.2(i)(1)(B). b. Rent Control Board Commissioner Term Limits (Section 1803(e)) Article XVIII, Section 1803(e) currently limits Rent Control Board Commissioners to two terms and establishes four-year terms but does not expressly address whether appointed terms count toward that limit. In contrast, the City Charter allows City Councilmembers to serve up to three terms and applies term limits to both elected and appointed service.

The proposed amendment would revise Section 1803(e) to allow Rent Control Board Commissioners to serve a maximum of three terms, whether consecutive or not, and clarify that term limits apply to both elected and appointed terms. The proposed amendment retains the existing term structure while modifying the number of allowable terms and clarifying application to 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.
c. Rent Control Unit Registration Fee Framework (Section 1803(n)) 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

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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.

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 voter approved amendments when the Board’s budgetary needs approached the established cap.

The proposed amendment would clarify and structure the Rent Control Board’s authority to establish an annual registration fee for controlled rental units, subject to a maximum allowable amount. The Board currently charges an annual registration fee of $240 per unit, below the Charter cap of $288. Key elements of the proposed amendment include:
(1) An initial maximum allowable fee of $288 per unit, which is the current registration fee limit;
(2) CPI-based annual adjustments of maximum allowable fee beginning in 2028, capped at 5% with no decreases;
(3) Clarification that the maximum allowable fee is a cap, not the fee actually charged;
(4) Preservation of landlords’ ability to pass through up to 50% of registration fees to tenants, subject to Board regulation; and (5) Preservation of Board discretion not to charge the maximum allowable fee.

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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 guardrails and flexibility.
d. Rent Control Board Petition Decision Timeline Clarification (Section 1805(d)(12))
Section 1805(d)(12) directs the Rent Control 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 Rent Control 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.

The amendment is intended to clarify within the Charter framework by expressly recognizing that the Board’s regulations govern both the general timeframe for resolution of petitions and the circumstances under which additional time may be appropriate. This clarification improves transparency regarding how petition timing is administered, while

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preserving the Board’s authority to adopt and apply regulations governing petition procedures. The change further clarifies the Article XVIII existing structure by expressly recognizing the role of Board-adopted regulations in establishing and administering petition timelines, without altering the Board’s existing regulatory framework.
e. Preserving Affordable Housing (Sections 1806(a)(11), (12), and (b); and 2304(a)(10), (11), and (b))
Since 1979, most new affordable rental housing has taken the form of deed restricted affordable housing. However, audit and enforcement efforts by the Housing Division have shown substantial and recurring violations of deed restrictions in the City, including the renting of affordable units to over-income households, households who do not meet minimum occupancy requirements (i.e., one person in a three bedroom unit intended for a low-income household), and other kinds of prohibited tenants including family members of owners and property managers who may have circumvented lengthy affordable housing waitlists.

One recurring challenge is that landlords of deed restricted affordable housing units are generally required to include an affordable housing addendum in their standard lease agreements, which make the following material terms of the tenancy: the tenant qualifying for the unit under the terms of the applicable affordable housing deed restriction and the tenant providing proof of qualification. Despite this requirement, many landlords have failed to include such an addendum, such that over-income or otherwise unqualified households are living in affordable housing units and preventing those units from being rented by eligible moderate- or lowincome households who need them. Landlords are often left with no remedy to come into compliance with the deed restriction and provide the bargained-for benefit of the affordable housing unit to the City’s residents.

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Importantly, when a tenant initially qualified for an affordable unit but subsequently has an increase in income such that they no longer qualify for the unit, the City’s Affordable Housing Production Program (“AHPP”) Guidelines provide a process for making the unit available to a low- or moderate-income household who needs it without abruptly displacing the existing tenant. The AHPP Guidelines generally provide that a tenant who initially qualified for an affordable unit may remain in the unit even if their income increases to up to 140% of the income limit for the unit; once the tenant’s income exceeds 140% of the unit’s income limit, if there is another affordable unit at the property at a higher income level for which the tenant qualifies, or an available market rate unit at the property, the tenant will be offered that unit. If the tenant cannot or chooses not to relocate, the tenant will be given a one-year notice to vacate, and will have the right of first refusal to lease any market rate unit at the property that becomes available during that one-year term. The notice to vacate will also be rescinded if during the course of the year, the tenant recertifies their income and demonstrates they qualify again for their unit.

To ensure that affordable housing units remain available to and utilized by those who need them, and to ensure that any necessary displacement of tenants is consistent with applicable guidelines such as those described above, the Rent Control Board and the City Attorney’s Office recommend placing amendments to Article XVIII, Section 1806 and Article XXIII, Section 2304 on the November ballot to provide for two additional just cause grounds to terminate a tenancy in a deed restricted affordable housing unit. The amendments would allow a landlord to terminate a tenancy if the tenant does not qualify for the unit under the terms of the deed restriction and the landlord seeks to recover possession in order to comply with the deed restriction, provided the landlord complies with applicable guidelines; and would allow a landlord to terminate a tenancy when a tenant fails or refuses to provide proof of income or other relevant

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qualification for an affordable housing unit, where the deed restriction requires the tenant to do so.

The recommended language would further amend Section 1806(b) and 2304(b) to clarify that a landlord’s written notice requesting proof of income shall be given a reasonable period of time prior to serving a notice to terminate tenancy and shall notify the tenant that the failure to comply (i.e., by providing the requested information) may result in the initiation of eviction proceedings. This is consistent with warning notice requirements that already apply to other grounds for terminating a tenancy.

II. Ballot Measure 2: Non-Payment Eviction Regulations
a. Prohibiting Evictions Based on Relatively Small Rental Debts (Sections 1806(a)(1) and 2304(a)(1))
All just cause eviction ordinances permit eviction based on a tenant’s nonpayment of rent, though many ordinances now only prohibit evictions for relatively small rental debts. This protection helps to promote housing stability and prevent homelessness when a tenant experiences a shortterm loss of income or increase in expenses and needs time to get back on their feet.

Such short-term economic shocks are not uncommon and they directly impact renters’ ability to pay rent. According to the Federal Reserve 2025 Survey of Household Economics and Decisionmaking (SHED), nearly one-third of renters nationwide earning less than $50,000 per year fell behind on rent at some point in the year, and more than 17% of renters earning less than $100,000 per year fell behind on rent at some point in the year.1
1 https://www.federalreserve.gov/publications/2026-economic-well-being-of-us-households-in-2025- housing.htm

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The same study found that a majority of adults had at least one major, unexpected expense in the preceding year, such as a major vehicle repair or replacement, house or appliance repair, or medical expense,2 and over one-third said they would need to borrow money in order to pay an unexpected expense of as little as $400, which takes time.3 Likewise, when a job loss occurs, according the California Employment Development Department, it takes about three weeks to process a new application for unemployment benefits.4
If a tenant who is otherwise current on the rent but experiences such a short-term disruption in income or increase in expenses and misses any portion of a single month’s rent payment, current law provides the landlord may serve a three-day notice to pay the defaulted amount, and if the tenant fails to pay it within three business days, the landlord may proceed to evict the tenant.

Locally, approximately 75% of all unlawful detainer (eviction) lawsuits provided to the CAO since 2024 pursuant to Santa Monica Municipal Code section 4.27.060—which requires landlords to email copies of all eviction notices and lawsuits to the CAO but for which there is significant non-compliance—were for non-payment of rent. The amount of rent alleged due in the eviction cases provided to the CAO ranged from as little as $405.67 to as much $96,937, with a median amount of rent alleged due of $6,000 (not accounting for unit size).

Approximately 1,500 additional eviction notices based on non-payment of rent were provided to the CAO from the beginning of 2024 through first 6 months of 2026, which is likely a significant under reporting. The amount 2 https://www.federalreserve.gov/publications/2026-economic-well-being-of-us-households-in-2025- economic-hardships.htm
3 https://www.federalreserve.gov/publications/2026-economic-well-being-of-us-households-in-2025- savings-investments.htm
4 https://edd.ca.gov/en/unemployment/step-6-receive-your-first-payment/

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of rent at issue in these notices ranged from as little as $73.87 to $165,000, with a median amount of rent at issue of approximately $3,100.

It is unknown how many of these notices may have ripened into an eviction lawsuit, or how many tenants simply moved out after receiving such a notice.

To protect tenants from becoming homeless as a result of short-term financial strain when a tenant owes a relatively small rental debt, the CAO Consumer Protection Division and Rent Control Board recommend amending City Charter Sections 1806(a)(1) and 2304(a)(1) to prohibit terminating a tenancy based on non-payment of rent unless the amount due exceeds a threshold amount.

This amendment would not cancel or waive any rent amount that is unpaid and falls below the threshold, nor would it eliminate any other remedies available to a landlord to recover such debt, such as a small claims court action if appropriate. The amendments would simply provide that a landlord lacks just cause to evict a tenant as a remedy for the tenant owing less than the threshold amount rent.

Other jurisdictions with similar limitations on the right to evict a tenant for non-payment of rent under a threshold amount include the City of Los Angeles, County of Los Angeles (unincorporated), City of Berkeley, and City of Oakland. The City of Los Angeles’s ordinance, enacted in 2023, was upheld under state law as a lawful regulation on the substantive grounds for eviction, first by the Los Angeles County Superior Court in 2024 and again by the California Court of Appeal on April 15, 2026, in the case AAGLA v. City of Los Angeles, B336071 (LA Sup. Ct. Case No. 23STCP00720).

The jurisdictions that include a similar protection generally set the threshold amount that must be owed for a landlord to have just cause to

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evict a tenant at one month’s Fair Market Rent (“FMR”) for the applicable metropolitan area, as determined annually by the US Department of Housing and Urban Development (“HUD”). The County of Los Angeles is the notable outlier, and has recently amended its ordinance to set the threshold at two months’ FMR for the Los Angeles-Long Beach-Glendale Metropolitan Area, based in part on the local emergency declared by the Board of Supervisors related to federal immigration enforcement actions.

FMR refers to an estimate of the 40th percentile gross rent for standard quality units in the applicable metropolitan area. The metropolitan area applicable to Santa Monica (Los Angeles-Long Beach-Glendale) consists of all of Los Angeles County. By contrast, the Small Area Fair Market Rents (“SAFMRs”) are also calculated annually by HUD and are based on the 40th percentile gross rent for a ZIP Code. The average of the SAFMRs for the 5 ZIP codes wholly or partially in Santa Monica are approximately 30% higher than the FMRs for the Los Angeles-Long Beach-Glendale Metropolitan Area, as reflected in the chart below:

Studio 1-bed 2-bed 3-bed 4-bed
FY26 FMR for Los Angeles-Long
Beach-Glendale Metro Area
$2,079 $2,328 $2,903 $3,681 $4,098
Average of FY 26 SAFMRs for
Santa Monica ZIP Codes
$2,708 $3,034 $3,782 $4,796 $5,338
Therefore, if the eviction threshold were set at one month of FMR for the Los Angeles-Long Beach-Glendale Metropolitan Area, many market rate or close-to-market rate tenants in Santa Monica would still be subject to eviction for missing even less than one month’s rent.

In order to more directly respond to rental rates in Santa Monica, the Rent Control Board has recommended setting the threshold amount at one month of the average of the SAFMRs for the 5 ZIP codes wholly or partially in Santa Monica, for an equivalent sized rental unit. The City

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Attorney’s Office further recommends that this figure be rounded to the nearest dollar. While the individual ZIP code SAFMRS is readily available, the average of the 5 ZIP code SAFMRS is not. If this regulation is adopted, the City would publish this information on the City’s website.

III. Proposed Resolution 3: Other Eviction Regulations
a. Prohibiting Evictions Based on the Addition of New Occupants (Sections 1806(a)(2) and 2304(a)(2))
Both Charter Sections 2304(a)(2) and 1806(a)(2) currently prohibit evictions based on a tenant subleasing the unit in violation of the tenant’s lease if all of the following conditions are met: (1) the tenant continues to reside in the unit; (2) the sublease replaces a departed tenant under the lease on a one-for-one basis; and (3) the landlord has unreasonably withheld the right to sublease following written request by the tenant, including if the landlord fails to respond to the tenant in writing within 14 days of receipt of the tenant’s written request.

While this provision protects tenants from eviction in some cases when new family members or roommates move into the unit, it does not squarely address what happens when a tenant has a family member, friend, or other roommate move in in violation of a provision of the lease prohibiting new occupants or more than a specific number of occupants.

Tenants with such lease provisions may want or need family members or roommates to move in to help pay the rent, or for caregiving or other personal reasons, but may be threatened with eviction for doing so.

Since 2024, approximately 20% of all eviction lawsuits emailed to the CAO that were based on an allegation that a tenant breached their lease were based on an allegation that the tenant brought in an additional occupant or sublet the unit. This figure does not include any case in which the tenant was specifically accused renting out the unit on a short term rental

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platform like AirBnB, which accounts for nearly half of all lease-violation eviction lawsuits emailed to the CAO.

The Rent Control Board has recommended that Article XVIII, Section 1806(a)(2) be amended to prohibit evictions based on the occupancy of a rental unit by one or more additional persons in excess of the number of persons permitted by the tenant’s lease in the following circumstances:
(a) when a specified family member moves in with a tenant, provided the tenant has lived in the unit for at least one year and notifies the landlord who the additional occupant is within 14 days of moving in and that they have a qualifying familial relationship;
(b) when a minor child for whom the tenant, tenant’s spouse, or tenant’s domestic partner is legally obligated to care for moves in; and
(c) when a non-family member occupant who intends to create a household with the tenant moves in, provided the tenant has lived in the unit for at least one year and gives the landlord notice of the additional non-family member occupant, and the landlord does not unreasonably withhold approval of such person.

In all of these cases, to the extent the additional occupancy is prohibited by an affordable housing deed restriction or other law, including any law limiting the number of occupants in the unit for legitimate health or safety reasons, the tenant would not qualify for the protection from eviction.

Finally, the protection from eviction for additional family members and non-family members would apply only to the tenant of the owner; these provisions would not protect a subtenant or other occupant who is not a tenant of the owner of the rental unit from eviction if the subtenant or other occupant brings in additional occupants themselves.

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Other jurisdictions in California, including Pasadena, East Palo Alto, Berkeley, Oakland, San Francisco, and West Hollywood, have adopted regulations that prohibit evicting a tenant for moving in additional family members in a similar fashion, and Oakland and San Francisco additionally prohibit evictions based on the addition of non-family household members as is proposed here.

The Rent Control Board’s recommendations are also generally consistent with the City Council’s January 27, 2026 direction for options to ensure that existing tenancies are not terminated when close family members move into a unit. One difference is that City Council requested options for ensuring that tenancies are not terminated based on the addition of partners, parents, grandparents, children, aunts, uncles, nieces, nephews, or other close family members, and the Rent Control Board’s recommended language would not prohibit evictions based on the addition of aunts, uncles, nieces, or nephews. The Rent Control Board received some comments from the public noting that none of the other cited jurisdictions with similar protections specifically protected these additional family members.

The CAO recommends two other minor clarifications to the Rent Control Board’s recommended language. First, the CAO’s recommended language would provide that a tenant may cure any failure to notify the landlord of an additional family member occupant who moves in by providing that notice upon demand of the landlord. This language would ensure that tenants who failed to provide the required information within 14 days of the family member moving in, which a tenant may not know is a requirement of this law, are not permanently barred from having that family member live in the unit. Second, the added language would make clear that any non-family member additional occupant and the tenant of the owner must mutually intend to form a single household to qualify for

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the protection. Finally, the CAO recommends that parallel language be adopted in Article XXIII, Section 2304(a)(2) to protect non-rent controlled tenants.
b. Prohibiting Evictions of Family Members After a Tenant Vacates (Sections 1806(c) and 2304(c))
Current law, Charter Sections 1806(c) and 2304(c), prohibits landlords from evicting certain close family members of a tenant who remain in a unit after the tenant vacates due to death or incapacitation, provided the close family member lived in the unit with the tenant for a year before the tenant died or became incapacitated. The Rent Control Board has recommended amending this provision by:
(1) Broadening the list of occupants protected from eviction to include any remaining occupant who is a dependent of the tenant of the owner, any person who was authorized to reside in the unit pursuant to the provisions of Section 1806(a)(2)(B), (C), or (D) or 2304(a)(2)(B), (C), or (D) described above, any person who was otherwise authorized to reside in the rental unit by law, or any minor dependent of any such person;
(2) Eliminating the requirement that the tenant vacate due to death or incapacity;
(3) Limit the availability of the protection if the occupancy by the remaining occupant is prohibited by an affordable housing deed restriction.

The effect of these amendments would be that any person lawfully residing in a rental unit for at least one year at the time that the tenant of the owner vacates the unit for any reason may remain in the unit, provided

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the unit is not a deed restricted affordable housing unit that prohibits the continued occupancy. The latter provision is to ensure that this protection is not a means to circumvent affordable housing waitlists. c. Extending Just Cause Eviction Protections for Single-Unit Dwellings and Updating Owner Move-In Eviction Regulations (Section 2302 and 2304(a)(8))
Article XXIII as adopted in 2010 applies to residential rental units that are not subject to rent control and are not single-unit dwellings.

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When Section 2304(a)(8) was adopted in 2010, it contained all of the same limitations on owner move-in evictions as the parallel provision of Article XVIII, Section 1806(a)(8). In particular, both provisions required that the owner or qualified relative seeking to move into the rental unit intend in good faith to move into the unit within 30 days after the tenant vacates and to occupy the unit for at least one year, and required that the landlord re-offer the unit to the tenant in the event the landlord or family member failed to move in to the unit within 30 days. These provisions of Article XVIII were amended in 2022 with the adoption of Measure RC, to require that the owner or qualified member who seeks to move into a unit intend in good faith do so within sixty days after the tenant vacates and to occupy the rental unit for at least two years, absent extenuating circumstances, and to provide that an owner must re-offer the unit if the owner or family member fails to occupy the unit for at least two years. No parallel amendment was made to Article XXIII in 2022, but if just cause eviction protections are extended to single family homes, it would be advisable to add the same protections to Article XXIII.

IV. Resolution Alternatives
The City Attorney’s Office presents three draft resolutions for potential adoption: one to place all Rent Control Board Administrative Items, the affirmation of local just cause eviction laws, and the affordable housing preservation items on the ballot as a single measure; one to place the small rental debt eviction protection on the ballot as a single measure; and one to place protections against eviction based on changes or additions

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in occupancy and to expand and update just cause eviction protections with respect to single family homes and owner move-in evictions as a single ballot measure.

As an alternative, Council could provide direction to the City Attorney’s Office to return with revised proposed ballot measures that would group the eviction regulations as follows:

Option A
Ballot Measure 1: Eviction Regulations For Existing Occupants:
• Section 1806(a)(1)/2304(a)(1) (small rental debt eviction protection); and • Section 1806(a)(2)/2304(a)(2) (eviction protection for existing tenants for adding new household members); and
• Section 2302 and 2304(a)(8) (single-unit dwelling and owner move in eviction protections).

Ballot Measure 2: Eviction Regulations For Added Occupants:
• Section 1806(c)/2304(c) (eviction protection for new household members remaining after tenant vacates)
Option B
Ballot Measure 1: Household Sustainability Eviction Regulations • Section 1806(a)(1)/2304(a)(1) (small rental debt eviction protection); and • Section 1806(a)(2)/2304(a)(2) (eviction protection for existing tenants for adding new household members).

Ballot Measure 2: Expanded Eviction Protections for Added Occupants and Single-Unit Dwelling Tenants:
• Section 1806(c)/2304(c) (eviction protection for new household members remaining after tenant vacates); and
• Section 2302 and 2304(a)(8) (single-unit dwelling and owner move in eviction protections).

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Attachment: A - July 14 2028 Staff Report (7848 : 11.B. Ballot Measures Amending Rent Control Law) 22 of 23
Option C
Ballot Measure 1: All Substantive Eviction Regulations
• Sections 1806(a)(1)/2304(a)(1) (small rental debt eviction protection); and • Section 1806(a)(2)/2304(a)(2) (eviction protection for existing tenants for adding new household members); and
• Section 2302 and 2304(a)(8) (single-unit dwelling and owner move in eviction protections); and
• Section 1806(c)/2304(c) (eviction protection for new household members remaining after tenant vacates).

Environmental Analysis
The proposed resolutions and/or ordinance are exempt from the provisions of California Environmental Quality Act (CEQA) pursuant to 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed resolutions and/or ordinance may have a significant effect on the environment.

Prepared By: Romy Ganschow, Chief Deputy City Attorney
Approved Forwarded to Council
Attachments:

A. RESO - Administrative Items Ballot Measure (Arts. XVIII and XXIII) 2026.07.14

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Attachment: A - July 14 2028 Staff Report (7848 : 11.B. Ballot Measures Amending Rent Control Law) 23 of 23
B. RESO - Rental Debt Threshold Just Cause Ballot Measure (Arts. XVIII and XXIII) 2026.07.14
C. RESO - Other Eviction Regulations Ballot Measure (Arts. XVIII and XXIII) 2026.07.14
D. Rent Control Board Memorandum - April 9, 2026
E. Rent Control Board Letter to Council re Recommendations - June 16, 2026 F. Rent Control Board Memorandum - June 25, 2026
G. Rent Control Board Letter to Council re Recommendations - June 29, 2026 H. Federal Reserve 2025 SHED Survey - Housing
I. Federal Reserve 2025 SHED Survey - Economic Hardships J. Federal Reserve 2025 SHED Survey - Savings and Investments K. CA Employment Development Department - Unemployment Benefits Processing L. Written Comments
M. PowerPoint Presentation

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Attachment: A - July 14 2028 Staff Report (7848 : 11.B. Ballot Measures Amending Rent Control Law) 1 City Council Meeting: July 14, 2026 Santa Monica, California RESOLUTION NUMBER 11785 (CCS)
City Council Series)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA

SUBMITTING TO THE VOTERS A MEASURE TO AMEND ARTICLES XVIII AND XXIII

OF THE CITY CHARTER TO REVISE REQUIREMENTS FOR OWNERS TO EVICT

TENANTS FOR BREACH OF A RENTAL AGREEMENT BASED ON THE ADDITION

OF NEW OCCUPANTS, REVISE PROTECTIONS FOR CERTAIN OCCUPANTS

REMAINING IN A RENTAL UNIT AFTER THE ORIGINAL TENANT VACATES,

EXPAND JUST CAUSE EVICTION PROTECTIONS TO SINGLE-UNIT DWELLINGS,

AND MODIFY REQUIREMENTS FOR GOOD FAITH OWNER MOVE IN EVICTIONS

FROM NON-RENT CONTROLLED RENTAL UNITS
WHEREAS, the City’s Rental Control Law (Article XVIII of the City Charter, also referenced as “RCCA”) and the City’s Housing Policies Law (Article XXIII of the City Charter, also referenced as “HPCA”) prohibit evictions of tenants except as enumerated in the law, generally excluding only tenants renting single-unit dwellings and condominiums; and
WHEREAS, landlords generally may evict tenants for substantial violations of rental agreements, except as limited by the RCCA and HPCA; and WHEREAS, the RCCA and the HCPA currently do not permit evictions for violations of provisions of rental housing agreements prohibiting subleasing, if specified conditions are met, including that the new occupant replaces a departed subtenant on a one-for-one basis (“the roommate replacement right”); and WHEREAS, even where a rental housing unit has bedrooms or space for additional occupants, existing law may permit eviction of a tenant for allowing family or other household members to move into the unit, if prohibited by the written lease agreement; and
WHEREAS, fair housing law may require landlords to allow tenants to live with

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 2 spouses, domestic partners, and minor children, but may not always or unambiguously require landlords to allow tenants to live with other family members or household members; and
WHEREAS, protecting tenants from eviction for living with family and household members within lawful and safe maximum occupancy limits would reduce homelessness and rent burden and keep families and households together without altering the character of Santa Monica’s residential neighborhoods; and
WHEREAS, studies show that housing stability leads to better education, health, and economic outcomes for adults and children; and
WHEREAS, even where tenants may be able to afford higher rent, they may struggle to afford “first, last, and deposit” as well as moving expenses necessary to move into a new rental unit; and
WHEREAS, the death, incapacitation, departure of or separation from a family or household member may further limit tenants’ capacity to find and qualify for a new residence, as well as to afford “first, last, and deposit” payment and moving expenses to move to a new residence; and
WHEREAS, protecting family and household members who lawfully reside in a unit from being evicted after a tenant vacates would promote housing stability and prevent homelessness; and
WHEREAS, the HPCA permits owners to evict tenants based on the owner’s good faith intent to occupy the unit or have a qualified family member occupy the unit, subject to certain limitations to ensure tenants are not unfairly displaced for this reason; and WHEREAS, Article XVIII, Section 1806(a)(8) was amended by Measure RC in 2022 to further regulate owner move in evictions from rent controlled rental units to ensure

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 3 that owner move in evictions are not used to circumvent just cause requirements, but the same amendments were not made to Article XXIII, Section 2304(a)(8); and WHEREAS, owners of single-unit dwellings are significantly more likely to evict tenants for owner-occupancy than owners of multi-family properties; and WHEREAS, the Santa Monica Rent Control Board (the “Board”) has heard input from the public on the feasibility and desirability of the additions and amendments to the RCCA discussed herein; and
WHEREAS, in light of the foregoing recitals, the Board has recommended the City Charter be amended to modify Article XVIII as set forth in the transmittal letter dated June 29, 2026 and attached hereto as Exhibit 1; and
WHEREAS, the City Council has considered and approved the Board’s recommendation because these amendments are in the public interest as they would strengthen tenant protections from unnecessary displacements; and WHEREAS, after consideration of the Board’s recommendation, the City Council desires the City Charter be amended at both Article XVIII and Article XXIII to maintain consistency of “just cause” for eviction protections that apply to both controlled and noncontrolled rental units in the City; and WHEREAS, in addition to the amendments recommended by the Board and parallel corresponding amendments that would align the HPCA with the RCCA so that the same just cause protections would apply to controlled and non-controlled units, the City Council has considered expanding the HPCA to extend just cause for eviction protections to cover single-unit dwellings and condominiums; and WHEREAS, there are a growing and significant number of single-unit dwellings and condominiums being used for residential rentals in the City; and

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 4 WHEREAS, other jurisdictions, including the City of Los Angeles, County of Los Angeles, Culver City, Beverly Hills, West Hollywood, Pasadena, Berkeley, San Francisco, Oakland, and East Palo Alto currently extend just cause for eviction protections to singleunit dwellings and condominiums, making Santa Monica an outlier with respect to comparable jurisdictions with robust tenant protections; and WHEREAS, tenants of single family homes are more likely to be evicted for owner move in than tenants in multi-unit dwellings; and
WHEREAS, to ensure tenants of non-rent controlled units have adequate protection against bad faith owner move in evictions, it is necessary to amend the HPCA to align with the 2022 amendments of the RCCA with respect to owner move-in evictions.

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 3, 2026, the following measure shall be submitted to the qualified electors of the City of Santa Monica:

MEASURE " ": Shall the City Charter be amended to
prohibit evictions when additional occupants move
into a unit, subject to legal limits; prohibit evictions of lawful occupants who remain after a tenant vacates;
extend existing eviction protections to tenants renting single-unit dwellings and condominiums; and require
for owner occupancy evictions from non-rent
controlled units, that the owner occupy the unit within 60 days after the tenant vacates and for at least 2
years thereafter?
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 additional costs may be

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 5 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 each measure shall be filed by the date set by the City Clerk for the 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 2 to this Resolution, which Exhibit is incorporated by reference herein:

FOR: Councilmember Raskin
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 2, 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

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 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) days before the General Municipal Election, shall cause the text of the measure to be published once in the official newspaper and in each 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 conduct properly the election.

SECTION 7. The provisions of Resolution Numbers 11763 and 11764 are referred to and incorporated into this resolution for more particulars concerning the conduct of General Municipal Election to be held on November 3, 2026, 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:

HE VON TONGELN
City Attorney
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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) EXHIBIT 1

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) Rent Control Board
1685 Main Street, Rm. 202
Santa Monica, CA 90401
Phone: 310-458-8751
June 29, 2026
Mayor Caroline Torosis and Members of the City Council
1685 Main Street, Room 209
Santa Monica, CA 90401
Re: Proposed Charter Amendments Concerning Tenant- Protection and Related Just-Cause Eviction Provisions
Dear Mayor and Councilmembers,
At its June 25, 2026 meeting, following a public hearing, the Santa Monica Rent Control Board voted to recommend that the City Council place proposed amendments to Article XVIII of the City Charter before the voters at the November 2026 general election.

The proposed amendments would:

1. Establish a small-rental- debt threshold, based on the average of HUD Small Area Fair Market Rents for equivalent- sized units in residential ZIP Codes located wholly or partially within the City, before nonpayment of rent may serve as a basis to terminate a rent-controlled tenancy;

2. Expand and clarify protections against termination of tenancy based on the addition of certain family members, dependents, minor children, and non-family household members, subject to applicable law, affordable- housing deed restrictions, notice and approval requirements, and lawful occupancy limits;

3. Protect certain covered occupants who have resided in a rental unit for at least one year from being displaced solely because the tenant of the owner vacates;

4. Add just-cause grounds and related notice provisions to address compliance with applicable affordable housing deed restrictions; and

5. Add a finding that Article XVIII is more protective than California Civil Code section 1946. 2, in order to support continued application of the City’s local just-cause framework to rent-controlled units.

The Board believes these amendments are in the public interest because they would strengthen tenant stability, reduce displacement based on relatively small rental debts or reasonable household changes, preserve protections for long-term occupants in appropriate circumstances, and support consistent enforcement of affordable housing eligibility requirements while maintaining safeguards for landlords, deed-restricted housing, and lawful occupancy limits.

Attachment A contains the clean Board- recommended proposed Charter amendment language.

Attachment B contains a redline showing the proposed changes to current Article XVIII through strikeout and underline formatting. These attachments incorporate the revisions approved for recommendation by the Board at the June 25 public hearing and should be treated as the Board’ s recommended language.

The Board understands that final ballot structure and final measure language remain subject to City Attorney review and City Council consideration.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 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
Romy Ganschow, Chief Deputy City Attorney
Jonathan Erwin- Frank, Deputy City Attorney
Denise Anderson- Warren, City Clerk
Kevin Mitchell, General Counsel
Rent Control Board Commissioners

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT A
Proposed Amendment Concerning Small Rental Debts
Section 1806. Eviction
a) No landlord shall take action to terminate any tenancy including but not limited, to making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of a controlled rental unit unless:
1) The tenant has failed to pay the rent to which the landlord is entitled under the rental housing agreement and this Article, provided that the amount due exceeds the average of the Small Area Fair Market Rents set annually by the U.S. Department of Housing and Urban Development for equivalent sized rental units in the residential ZIP Codes located wholly or partially within the City of Santa Monica, and the written notice to the tenant terminating tenancy states the number of bedrooms in the tenant’s rental unit and the applicable average Small Area Fair Market Rent amount for an equivalent sized rental unit.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT A
Proposed Amendment Concerning Added Household Members
Section 1806. Eviction
a) No landlord shall take action to terminate any tenancy including but not limited, to making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of a controlled rental unit unless:
2) The tenant has continued, after written notice to cease, to commit a material and substantial breach of an obligation or covenant of his or her tenancy which the landlord has not waived, either expressly or impliedly through the landlord’ s conduct and which the landlord is not estopped from asserting, other than the obligation to surrender possession upon proper notice. 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, and there shall be no grounds to take action to terminate any tenancy, based on:

A) 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.

B) occupancy of the rental unit by one or more additional persons in excess of the number of persons permitted by the rental housing agreement if the tenant of the owner has continuously resided in the rental unit for at least one year before the additional person begins residing in the rental unit, and each additional person is the spouse, domestic partner who has led an Affidavit of Domestic Partnership with the City, parent, grandparent, child, grandchild, sibling, dependent of the tenant of the owner, or minor dependent of any additional person listed in this section, provided that the additional

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT A
person is not prohibited from occupying the rental unit by state or federal law or by an applicable affordable housing deed restriction.

The tenant of the owner shall give written notice to the landlord within fourteen (14) days after the additional person begins residing in the rental unit, and stating that the additional person is a family member or dependent covered by this subparagraph.

C) occupancy of the rental unit by any number of persons in excess of the number of persons permitted by the rental housing 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 the tenant’s spouse or domestic partner who has led an Affidavit of Domestic Partnership with the City, is the parent or legal guardian, provided that the occupancy is not prohibited by state or federal law or by an applicable affordable housing deed restriction.

D) occupancy of the rental unit by one or more additional persons in excess of the number of persons permitted by the rental housing agreement and such additional person intends to create a household with the tenant of the owner notwithstanding the fact that the additional person is not a family member or dependent of the tenant identied in subsection (B), if all of the following conditions are met:
i) The tenant of the owner has continuously resided in the rental unit for at least one year before the additional person begins residing in the rental unit and continues to reside in the rental unit; and
ii) The landlord has unreasonably withheld approval of the additional occupant following written request by the tenant of the owner. If the landlord fails to respond to the tenant in writing within fourteen (14) days of receipt of the tenant’s written request for approval, the tenant’s request shall be deemed approved by the landlord.

A landlord’s denial of approval of an additional occupant shall be unreasonable if it is based on the additional occupant’ s lack of creditworthiness or nancial criteria and the additional occupant will not be legally obligated to pay some or all of the rent to the landlord.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT A
It shall not be unreasonable for a landlord to timely withhold approval of an additional occupant on the grounds that the landlord resides in the same rental unit as the tenant, that the proposed additional occupant is prohibited from occupying the rental unit by state or federal law or by the terms of an applicable affordable housing deed restriction, or on any other legitimate grounds.

Nothing in this subsection (a)(2) shall permit occupancy in excess of any maximum allowable occupancy established by law.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT A
Proposed Amendment Concerning Family-Member Occupancy After Tenant Vacancy Section 1806. Eviction
c) Notwithstanding any contrary provision in this Section or in the rental housing agreement, if a covered occupant has lived in the rental unit for at least one year at the time the tenant of the owner vacates, the landlord is prohibited from taking any action to obtain possession of the rental unit from the covered occupant on the ground that the covered occupant is not authorized to occupy the rental unit, unless the reason for being unauthorized is that the covered occupant is not qualied or authorized to occupy the rental unit under the terms of an applicable affordable housing deed restriction.

For purposes of this subsection, “covered occupant” means any remaining occupant of the rental unit who is a dependent of the tenant of the owner, was authorized to reside in the rental unit under subsection (a)(2)(B) or (D), was otherwise authorized to reside in the rental unit by law, or is the minor dependent of any such person.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT A
Proposed Amendment Concerning Affordable Housing Deed Restrictions Section 1806. Eviction
a) No landlord shall take action to terminate any tenancy including but not limited, to making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of a controlled rental unit unless:
11) The tenant does not qualify for the rental unit under the terms of an applicable affordable housing deed restriction, or is causing a violation of the affordable housing deed restriction, and the landlord seeks in good faith to recover possession of the rental unit in order to comply with the applicable affordable housing deed restriction or guidelines, provided the landlord complies with all applicable regulations. 12) The tenant of a rental unit subject to an affordable housing deed restriction has failed or refused to provide proof of income or other qualication for the rental unit, after written notice requesting such proof, where an applicable affordable housing deed restriction or applicable law requires the tenant to provide proof of income or other qualication in order to reside in the unit. b) Any written notice as described in Subsections (a)(2), (3), (6) or (12) shall be served by the landlord a reasonable period prior to serving a notice to terminate tenancy and shall inform the tenant that a failure to cure may result in the initiation of eviction proceedings. The Board may enact regulations regarding reasonable notice.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT A
Proposed Amendment Concerning Tenant Protection Act Findings Section 1822. Tenant Protection Act Finding
Whereas this Article limits the reasons for termination of a residential tenancy consistent with the provisions of California Civil Code section 1946.2; further limits the reasons for termination of a residential tenancy to a greater degree than California Civil Code section 1946.2; provides (in conjunction with implementing provisions of the Santa Monica Municipal Code) for higher relocation assistance amounts than California Civil Code section 1946.2; and provides additional tenant protections not prohibited by any other provision of law; this Article is found to be more protective than the provisions of California Civil Code section 1946.2, such that any rental unit subject to this Article is not subject to California Civil Code section 1946.2.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT B
Proposed Amendment Concerning Small Rental Debts
Section 1806. Eviction
a) No landlord shall take action to terminate any tenancy including but not limited, to making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of a controlled rental unit unless:
1) The tenant has failed to pay the rent to which the landlord is entitled under the rental housing agreement and this Article., provided that the amount due exceeds the average of the Small Area Fair Market Rents set annually by the U.S. Department of Housing and Urban Development for equivalent sized rental units in the residential ZIP Codes located wholly or partially within the City of Santa Monica, and the written notice to the tenant terminating tenancy states the number of bedrooms in the tenant’s rental unit and the applicable average Small Area Fair Market Rent amount for an equivalent sized rental unit.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT B
Proposed Amendment Concerning Added Household Members
Section 1806. Eviction
a) No landlord shall take action to terminate any tenancy including but not limited, to making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of a controlled rental unit unless:
2) The tenant has continued, after written notice to cease, to commit a material and substantial breach of an obligation or covenant of his or her tenancy which the landlord has not waived, either expressly or impliedly through the landlord’ s conduct and which the landlord is not estopped from asserting, other than the obligation to surrender possession upon proper notice. 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, and there shall be no grounds to take action to terminate any tenancy, based on: a tenant’ s sublease of the unit if the following requirements are met:

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT B
additional person listed in this section, provided that the additional person is not prohibited from occupying the rental unit by state or federal law or by an applicable affordable housing deed restriction.

D) occupancy of the rental unit by one or more additional persons in excess of the number of persons permitted by the rental housing agreement and such additional person intends to create a household with the tenant of the owner notwithstanding the fact that the additional person is not a family member or dependent of the tenant identied in subsection (B), if all of the following conditions are met:
i) The tenant of the owner has continuously resided in the rental unit for at least one year before the additional person begins residing in the rental unit and continues to reside in the rental unit; and
ii) The landlord has unreasonably withheld approval of the additional occupant following written request by the
tenant of the owner. If the landlord fails to respond to the tenant in writing within fourteen (14) days of receipt of the tenant’s written request for approval, the tenant’s request shall be deemed approved by the landlord.

A landlord’s denial of approval of an additional
occupant shall be unreasonable if it is based on the
additional occupant’s lack of creditworthiness or
nancial criteria and the additional occupant will not be

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT B
legally obligated to pay some or all of the rent to the landlord.

It shall not be unreasonable for a landlord to timely
withhold approval of an additional occupant on the
grounds that the landlord resides in the same rental unit as the tenant, that the proposed additional occupant is prohibited from occupying the rental unit by state or
federal law or by the terms of an applicable affordable housing deed restriction, or on any other legitimate
grounds.

Nothing in this subsection (a)(2) shall permit occupancy in excess of any maximum allowable occupancy established by law.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT B
Proposed Amendment Concerning Family-Member Occupancy After Tenant Vacancy Section 1806. Eviction
c) Notwithstanding any contrary provision in this Section or in the rental housing agreement, if the tenant’s spouse, child(ren), and/or domestic partner who has led an Affidavit of Domestic Partnership with the City a covered occupant have has lived in the rental unit for at least one year at the time the tenant of the owner vacates the unit due to death or incapacitation, the landlord is prohibited from taking any action to obtain possession of the rental unit from the tenant’s spouse, child(ren), and/or registered domestic partner covered occupant on the ground that the spouse, child(ren) and/or registered domestic partner covered occupant are is not authorized to occupy the rental unit, unless the reason for being unauthorized is that the covered occupant is not qualied or authorized to occupy the rental unit under the terms of an applicable affordable housing deed restriction.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT B
Proposed Amendment Concerning Affordable Housing Deed Restrictions Section 1806. Eviction
a) No landlord shall take action to terminate any tenancy including but not limited, to making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of a controlled rental unit unless:
11) The tenant does not qualify for the rental unit under the terms of an applicable affordable housing deed restriction, or is causing a violation of the affordable housing deed restriction, and the landlord seeks in good faith to recover possession of the rental unit in order to comply with the applicable affordable housing deed restriction or guidelines, provided the landlord complies with all applicable regulations. 12) The tenant of a rental unit subject to an affordable housing deed restriction has failed or refused to provide proof of income or other qualication for the rental unit, after written notice requesting such proof, where an applicable affordable housing deed restriction or applicable law requires the tenant to provide proof of income or other qualication in order to reside in the unit. b) Any written notice as described in Subsections (a)(2), (3), or (6) or (12) shall be served by the landlord a reasonable period prior to serving a notice to terminate tenancy and shall inform the tenant that a failure to cure may result in the initiation of eviction proceedings. The Board may enact regulations regarding reasonable notice.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law)

ATTACHMENT B
Proposed Amendment Concerning Tenant Protection Act Findings Section 1822. Tenant Protection Act Finding
Whereas this Article limits the reasons for termination of a residential tenancy consistent with the provisions of California Civil Code section 1946.2; further limits the reasons for termination of a residential tenancy to a greater degree than California Civil Code section 1946.2; provides (in conjunction with implementing provisions of the Santa Monica Municipal Code) for higher relocation assistance amounts than California Civil Code section 1946.2; and provides additional tenant protections not prohibited by any other provision of law; this Article is found to be more protective than the provisions of California Civil Code section 1946.2, such that any rental unit subject to this Article is not subject to California Civil Code section 1946.2.

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Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 24 Exhibit 2
Section 1806(a)(2) of Article XVIII of the City Charter shall be amended to read as follows:
1806 Evictions.
a) No landlord shall take action to terminate any tenancy including, but not limited, to making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of a controlled rental unit except on one of the following grounds:
2) The tenant has continued, after written notice to cease, to commit a material and substantial breach of an obligation or covenant of his or her tenancy which the landlord has not waived, either expressly or impliedly through the landlord’s conduct and which the landlord is not estopped from asserting, other than the obligation to surrender possession upon proper notice. 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, and there shall be no grounds to take action to terminate any tenancy, based on: a tenant’s sublease of the unit if the following requirements are met:

11.B.b
Packet Pg. 89
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 25 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.

B) Occupancy of the rental unit by one or more additional persons in excess of the number of persons permitted by the rental housing agreement if the tenant of the owner has continuously resided in the rental unit for at least one year before the additional person begins residing in the rental unit, and each additional person is the spouse, domestic partner who has filed an Affidavit of Domestic Partnership with the City, parent, grandparent, child, grandchild, sibling, dependent of the tenant of the owner, or minor dependent of any additional person listed in this section, provided that the additional person is not prohibited from occupying the rental unit by state or federal law or by an applicable affordable housing deed restriction. The tenant of the owner shall give written notice to the landlord within fourteen (14) days after the additional person begins residing in the rental unit or within fourteen (14) days of a written request by the owner. The written notice shall state the name of the additional person and that the additional person is a family member or dependent covered by this subparagraph. A landlord shall not take any action to terminate any tenancy, and there shall be no grounds to take action to terminate any tenancy under this subsection on the basis that the tenant did not provide written notice to the landlord within fourteen (14) days after the additional person began residing in the rental unit, unless the landlord has made a written request for the name and relation of the additional person and the tenant has unreasonably failed to respond within fourteen (14) days.

C) Occupancy of the rental unit by any number of persons in excess of

11.B.b
Packet Pg. 90
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 26 the number of persons permitted by the rental housing 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 the tenant’s spouse or domestic partner who has filed an Affidavit of Domestic Partnership with the City, is the parent or legal guardian, provided that the occupancy is not prohibited by state or federal law or by an applicable affordable housing deed restriction.

D) Occupancy of the rental unit by one or more additional persons in excess of the number of persons permitted by the rental housing agreement if the tenant of the owner and such additional person intend to create a single household together, notwithstanding the fact that the additional person is not a family member or dependent of the tenant identified in subsection (B), and if all of the following conditions are met:
i) The tenant of the owner has continuously resided in the rental unit for at least one year before the additional person begins residing in the rental unit and continues to reside in the rental unit; and ii) The landlord has unreasonably withheld approval of the additional occupant following written request by the tenant of the owner. If the landlord fails to respond to the tenant in writing within fourteen (14) days of receipt of the tenant’s written request for approval, the tenant’s request shall be deemed approved by the landlord.

A landlord’s denial of approval of an additional occupant shall be unreasonable if it is based on the additional occupant’s lack of creditworthiness or financial criteria and the additional occupant will not be legally obligated to pay some or all of the rent to the

11.B.b
Packet Pg. 91
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 27 landlord.

It shall not be unreasonable for a landlord to timely withhold approval of an additional occupant on the grounds that the landlord resides in the same rental unit as the tenant, that the proposed additional occupant is prohibited from occupying the rental unit by state or federal law or by the terms of an applicable affordable housing deed restriction, or on any other legitimate grounds.

Nothing in this subsection (a)(2) shall permit occupancy in excess of any maximum allowable occupancy established by law.

Section 1806(c) of Article XVIII of the City Charter shall be amended to read as follows:
1806 Evictions.
c) Notwithstanding any contrary provision in this Section or in the rental housing agreement, if a covered occupant the tenant’s spouse, child(ren), and/or domestic partner who has filed an Affidavit of Domestic Partnership with the City have has lived in the unit for at least one year at the time the tenant of the owner vacates the unit due to death or incapacitation, the landlord is prohibited from taking any action to obtain possession of the unit from the covered occupant tenant’s spouse, child(ren), and/or registered domestic partner on the ground that the covered occupant is spouse, child(ren) and/or registered domestic partner are not authorized to occupy the rental unit, unless the reason for being unauthorized is that the covered occupant is not qualified or authorized to occupy the rental unit under the terms of an applicable affordable housing

11.B.b
Packet Pg. 92
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 28 deed restriction.

For purposes of this subsection, “covered occupant” means any remaining occupant of the rental unit who is a dependent of the tenant of the owner, was authorized to reside in the rental unit under subsection (a)(2)(B), (C), or (D), was otherwise authorized to reside in the rental unit by law, or is the minor dependent of any such person.

Section 2302(a) and (h) of Article XXIII of the City Charter shall be amended to read as follows:
2302 Definitions.

The following words or phrases as used in this Article shall have the following meanings:
a) Nonrentcontrolled rental units.

All residential rental units in the City of Santa Monica except those units that are subject to rent control pursuant to Article XVIII of this Charter or are single-family homes. h) Single-family home.

A property that has been developed with only one dwelling and any lawful accessory structures, or a lawfully created condominium, stock cooperative or similar unit that is part of a larger residential structure or complex.

Section 2304(a)(2) of Article XXIII of the City Charter shall be amended to read as follows:
2304 Just cause eviction—Notices to cease.

11.B.b
Packet Pg. 93
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 29 a) No landlord shall take action to terminate a tenancy in a nonrentcontrolled rental unit including, but not limited to, making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of the unit except on one of the following grounds:
2) The tenant has continued, after written notice to cease, to commit a material and substantial breach of an obligation or covenant of his or her tenancy which the landlord has not waived, either expressly or impliedly through the landlord’s conduct and which the landlord is not estopped from asserting, other than the obligation to surrender possession upon proper notice. 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, and there shall be no grounds to take action to terminate any tenancy, based on: a tenant’s sublease of the unit if the following requirements are met:

A) A tenant’s sublease of the unit if the following requirements are met:
i) The tenant continues to reside in the 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.

B) Occupancy of the rental unit by one or more additional persons in

11.B.b
Packet Pg. 94
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 30 excess of the number of persons permitted by the rental housing agreement if the tenant of the owner has continuously resided in the rental unit for at least one year before the additional person begins residing in the rental unit, and each additional person is the spouse, domestic partner who has filed an Affidavit of Domestic Partnership with the City, parent, grandparent, child, grandchild, sibling, dependent of the tenant of the owner, or minor dependent of any additional person listed in this section, provided that the additional person is not prohibited from occupying the rental unit by state or federal law or by an applicable affordable housing deed restriction. The tenant of the owner shall give written notice to the landlord within fourteen (14) days after the additional person begins residing in the rental unit or within fourteen (14) days of a written request by the owner. The written notice shall state the name of the additional person and that the additional person is a family member or dependent covered by this subparagraph. A landlord shall not take any action to terminate any tenancy, and there shall be no grounds to take action to terminate any tenancy under this subsection on the basis that the tenant did not provide written notice to the landlord within fourteen (14) days after the additional person began residing in the rental unit, unless the landlord has made a written request for the name and relation of the additional person and the tenant has unreasonably failed to respond within fourteen (14) days.

C) Occupancy of the rental unit by any number of persons in excess of the number of persons permitted by the rental housing 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 the tenant’s spouse or domestic partner who has filed an Affidavit of Domestic Partnership with the City, is the parent or

11.B.b
Packet Pg. 95
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 31 legal guardian, provided that the occupancy is not prohibited by state or federal law or by an applicable affordable housing deed restriction.

It shall not be unreasonable for a landlord to timely withhold approval of an additional occupant on the grounds that the landlord resides in the same rental unit as the tenant,

11.B.b
Packet Pg. 96
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 32 that the proposed additional occupant is prohibited from occupying the rental unit by state or federal law or by the terms of an applicable affordable housing deed restriction, or on any other legitimate grounds.

Nothing in this subsection (a)(2) shall permit occupancy in excess of any maximum allowable occupancy established by law.

Section 2304(a)(8)(iv) and 2304(a)(8)(v) of Article XXIII of the City Charter shall be amended to read as follows:
2304 Just cause eviction—Notices to cease.
a) No landlord shall take action to terminate any tenancy in a noncontrolled rental unit including, but not limited, to making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of a controlled rental unit except on one of the following grounds:
8) The landlord seeks to recover possession in good faith for use and occupancy by herself or himself, or her or his children, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, or daughter-in-law. For purposes of evictions under this Subsection:
iv) The landlord or enumerated relative must intend in good faith to move into the unit within thirty (30) sixty (60) days after the tenant vacates and to occupy the unit as a primary residence for at least one year two years, unless

11.B.b
Packet Pg. 97
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 33 extenuating circumstances exist. The City may adopt regulations governing the determination of good faith.
v) If the landlord or relative specified on the notice terminating tenancy fails to occupy the unit within thirty (30) sixty (60) days after the tenant vacates or fails to occupy the unit as a primary residence for at least two years, unless extenuating circumstances exist, the landlord shall:

A. Offer the unit to the tenant who vacated it.

B. Pay to said tenant all reasonable expenses incurred in moving to and/or from the unit.

Section 2304(c) of Article XXIII of the City Charter shall be amended to read as follows:
2304 Just cause eviction—Notices to cease.
c) Notwithstanding any contrary provision in this Section or in the rental housing agreement, if a covered occupant the tenant’s spouse, child(ren), and/or domestic partner who has filed an Affidavit of Domestic Partnership with the City have has lived in the unit for at least one year at the time the tenant of the owner vacates the unit due to death or incapacitation, the landlord is prohibited from taking any action to obtain possession of the unit from the covered occupant tenant’s spouse, child(ren), and/or registered domestic partner on the ground that the covered occupant is spouse, child(ren) and/or registered domestic partner are not authorized to occupy the rental unit, unless the reason for being unauthorized is that the covered occupant is not qualified or authorized to occupy the rental unit under the terms of an applicable affordable housing deed restriction.

11.B.b
Packet Pg. 98
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 34 For purposes of this subsection, “covered occupant” means any remaining occupant of the rental unit who is a dependent of the tenant of the owner, was authorized to reside in the rental unit under subsection (a)(2)(B), (C), or (D), was otherwise authorized to reside in the rental unit by law, or is the minor dependent of any such person.

11.B.b
Packet Pg. 99
Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) Adopted and approved this 14th day of July, 2026.

Caroline Torosis, Mayor
I, Denise Anderson -Warren, Interim City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11785 ( CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 14th day of July, 2026, by the following vote:

AYES: Councilmembers Zernitskaya, Raskin, Hall,
Mayor Torosis
NOES: Councilmembers Snell, Negrete
ABSENT: Mayor Pro Tem Zwick
ATTEST:
en ( ,[' mfitatv
Denise Anderson -Warren, nterim City Clerk

11.B.b
Packet Pg. 100 Attachment: B-RESO 11785 (7848 : 11.B. Ballot Measures Amending Rent Control Law) 1 City Council Meeting: July 28, 2026 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 EXPAND JUST CAUSE EVICTION PROTECTIONS TO SINGLEUNIT DWELLINGS, AND MODIFY REQUIREMENTS FOR GOOD FAITH OWNER

MOVE IN EVICTIONS FROM NON-RENT CONTROLLED RENTAL UNITS WHEREAS, the City’s Rental Control Law (Article XVIII of the City Charter, also referenced as “RCCA”) and the City’s Housing Policies Law (Article XXIII of the City Charter, also referenced as “HPCA”) prohibit evictions of tenants except as enumerated in the law, generally excluding only tenants renting single-unit dwellings and condominiums; and
WHEREAS, the HPCA permits owners to evict tenants based on the owner’s good faith intent to occupy the unit or have a qualified family member occupy the unit, subject to certain limitations to ensure tenants are not unfairly displaced for this reason; and WHEREAS, Article XVIII, Section 1806(a)(8) was amended by Measure RC in 2022 to further regulate owner move in evictions from rent controlled rental units to ensure that owner move in evictions are not used to circumvent just cause requirements, but the same amendments were not made to Article XXIII, Section 2304(a)(8); and WHEREAS, in order to align the HPCA with the RCCA so that the same just cause protections would apply to controlled and non-controlled units, the City Council has considered expanding the HPCA to extend just cause for eviction protections to cover single-unit dwellings and condominiums; and
WHEREAS, there are a growing and significant number of single-unit dwellings and condominiums being used for residential rentals in the City; and

11.B.c
Packet Pg. 101 Attachment: C-Reso Article XXIII [Revision 1] (7848 : 11.B. Ballot Measures Amending Rent Control Law) 2 WHEREAS, other jurisdictions, including the City of Los Angeles, County of Los Angeles, Culver City, Beverly Hills, West Hollywood, Pasadena, Berkeley, San Francisco, Oakland, and East Palo Alto currently extend just cause for eviction protections to singleunit dwellings and condominiums, making Santa Monica an outlier with respect to comparable jurisdictions with robust tenant protections; and WHEREAS, tenants of single family homes are more likely to be evicted for owner move in than tenants in multi-unit dwellings; and
WHEREAS, to ensure tenants of non-rent controlled units have adequate protection against bad faith owner move in evictions, it is necessary to amend the HPCA to align with the 2022 amendments of the RCCA with respect to owner move-in evictions.

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 3, 2026, the following measure shall be submitted to the qualified electors of the City of Santa Monica:

MEASURE " ": Shall Article XXIII of the City Charter
related to housing policies be amended to extend
existing eviction protections to tenants renting singleunit dwellings and condominiums and require that for owner occupancy evictions from non-rent controlled
units, the owner must intend in good faith to occupy
the unit within 60 days after the tenant vacates and
for at least 2 years thereafter?
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 additional costs may be incurred by the County by reason of the addition of this measure to the ballot and agrees

11.B.c
Packet Pg. 102 Attachment: C-Reso Article XXIII [Revision 1] (7848 : 11.B. Ballot Measures Amending Rent Control Law) 3 to reimburse the County for any additional costs.

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:

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

11.B.c
Packet Pg. 103 Attachment: C-Reso Article XXIII [Revision 1] (7848 : 11.B. Ballot Measures Amending Rent Control Law) 4 Clerk, not less than forty (40) days and not more than sixty (60) days before the General Municipal Election, shall cause the text of the measure to be published once in the official newspaper and in each 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 conduct properly 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:
_________________________

HEIDI VON TONGELN
City Attorney

11.B.c
Packet Pg. 104 Attachment: C-Reso Article XXIII [Revision 1] (7848 : 11.B. Ballot Measures Amending Rent Control Law) 5 Exhibit 1
Section 2302(a) and (h) of Article XXIII of the City Charter shall be amended to read as follows:
2302 Definitions.

The following words or phrases as used in this Article shall have the following meanings:
(a) Nonrentcontrolled rental units.

All residential rental units in the City of Santa Monica except those units that are subject to rent control pursuant to Article XVIII of this Charter or are single-family homes. . . .
(h) Single-family home.

Section 2304(a)(8)(iv) and 2304(a)(8)(v) of Article XXIII of the City Charter shall be amended to read as follows:
2304 Just cause eviction—Notices to cease.
(a) No landlord shall take action to terminate any tenancy in a noncontrolled rental unit including, but not limited, to making a demand for possession of a rental unit, threatening to terminate a tenancy, serving any notice to quit or other eviction notice or bringing any action to recover possession or be granted recovery of possession of a controlled rental unit except on one of the following grounds:
. . .

11.B.c
Packet Pg. 105 Attachment: C-Reso Article XXIII [Revision 1] (7848 : 11.B. Ballot Measures Amending Rent Control Law) 6 (8) The landlord seeks to recover possession in good faith for use and occupancy by herself or himself, or her or his children, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, or daughter-in-law. For purposes of evictions under this Subsection:
. . .
(iv) The landlord or enumerated relative must intend in good faith to move into the unit within thirty (30) sixty (60) days after the tenant vacates and to occupy the unit as a primary residence for at least one year two years, unless extenuating circumstances exist. The City may adopt regulations governing the determination of good faith.
(v) If the landlord or relative specified on the notice terminating tenancy fails to occupy the unit within thirty (30) sixty (60) days after the tenant vacates or fails to occupy the unit as a primary residence for at least two years, unless extenuating circumstances exist, the landlord shall:

A. Offer the unit to the tenant who vacated it.

B. Pay to said tenant all reasonable expenses incurred in moving to and/or from the unit.

11.B.c
Packet Pg. 106 Attachment: C-Reso Article XXIII [Revision 1] (7848 : 11.B. Ballot Measures Amending Rent Control Law) 1 David Yakobson
From: Ann Maggio <[email protected]>
Sent: Monday, July 27, 2026 9:57 PM
To: councilmtgitems
Subject: Update on Resolutions Placing Proposed Ballot Measures Amending Articles XVIII, Rent Control Law, and XXIII, Housing Policies, o

EXTERNAL
Where is the information?
No update here. Brown Act violation
Sent from my iPhone
Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.d
Packet Pg. 107 Attachment: Written Comments [Revision 1] (7848 : 11.B. Ballot Measures Amending Rent Control Law) Adoption of Resolution to Place A Measure on the
Ballot to Amend Article XXIII of the City Charter; and
Rescission of Previously-Adopted Resolution to Place
a Measure on the Ballot to Amend Articles XVII and
XXIII of the City Charter
Santa Monica City Council
July 28, 2026
Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 108 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent Process for Amending the City Charter
• Any change amending the City Charter requires a Charter Amendment • All Charter Amendments must be submitted to the voters for consideration • Charter Amendments can be placed on the ballot by either the voters or the City Council • Opportunities for Charter Amendments exist every two years when general elections are held
• The overall process is also subject to LA County timelines for elections • For the 2026 election cycle, the deadline to place an item on the ballot for voter consideration is August 7, 2026
Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 109 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent Resolutions Adopted on July 14
• Resolution 1 (11783 (CCS)):
• Affirming of local just cause eviction regulations
• Rent Control Board administrative amendments
• Preserving affordable housing
• Resolution 2 (11784 (CCS)):
• Rent threshold eviction regulation
• Resolution 3 (11785 (CCS)):
• Limiting evictions based on the addition of new occupants • Limiting evictions of remaining household members after tenant vacates • Extending just cause eviction protections to single unit dwellings and updating owner move-in eviction regulations
Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 110 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent Concerns Raised with Certain Provisions of Resolution 3 • After voting to place all three measures on ballot, concerns were brought to the City’s attention regarding the proposed Resolution 3 amendments to Charter Sections 1806(c) / 2304(c)
• The measure would circumvent Costa Hawkins
• The City’s proposed measure would circumvent the landlords ability to reset the rent as dictated under Costa Hawkins
• The measure limits a property owner’s ability to recover possession of a rental housing unit
Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 111 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent Proposed Amendments to 1806(c) and 2304(c)
(Part of Resolution 3)
• If approved by the voters, the proposed amendments to 1806(c) and 2304(c) would:

1. Remove the death-or-incapacity trigger entirely, and instead institutes protections when the tenant of the owner vacates for any reason
• Current regulation only covers spouses, domestic partners, and children, and only applies when the tenant of the owner vacates due to death or incapacitation

2. Broaden the protected class from close family to any lawful occupant of one year or more (“covered occupant”)
• Current regulations only includes a spouse and / or children as being part of the protected class
Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 112 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent Proposed Amendments
Have Not Been Tested in Court
• Based on research, staff has been unable to locate a jurisdiction that has removed the death / incapacity trigger for remaining occupants • We are not aware of any California city that bars eviction of remaining household members after a tenant’s purely voluntary departure, as the proposed amendment would do
• Based on staff research, we are also unable to locate a jurisdiction that has such a broad class of persons eligible for protection after the original tenant vacates the unit
Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 113 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent Other Provisions of Contained in Resolution 3
• Other component sections contained in Resolution 3 include:
• Extending just cause protections to single unit dwellings in Article XXIII (single family house / condo tenants)
• Update Owner Move-In Protections in Article XXIII (for consistency with Article XVIII)
Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 114 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent Special Joint Meeting of
City Council and Rent Control Board
• Yesterday, a special joint meeting was held between the City Council and Rent Control Board to discuss the concerns
• Following discussion, the following direction was provided:
• A vote to rescind Resolution 11785
• A new Resolution placing a measure on the ballot that would extend just cause protections to Single-Unit Dwellings and Update Owner-Move In Regulations for NonControlled Units to Align them with Controlled Units Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 115 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent Next Steps
• Based on that direction, staff recommends that the City Council take the following actions:

1. Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (common sense exemption) of the California Environmental Quality Act (CEQA) Guidelines; and

2. Per Rent Control Board recommendation and City Council direction at the July 27, 2028 Special Joint Meeting of the City Council and the Rent Control Board, rescind Resolution Number 11785 (CCS) adopted at the July 14, 2026 City Council meeting and attached as Attachment C to Item 11(B) of the Agenda for the July 14, 2026 City Council meeting, which placed a measure on the November 3, 2026 ballot that would amend Articles XVIII and XXIII of the City Charter to revise requirements for owners to evict tenants for breach of a rental agreement based on the addition of new occupants, revise eviction protections for certain occupants remaining in a rental unit after the original tenant vacates, add just cause eviction protections to single-unit dwellings and condominiums, and modify requirements for good faith owner move in evictions from non-rent controlled rental units; and

4. Authorize City Councilmembers to file written arguments for or against and direct the City Attorney to prepare an impartial analysis for the replacement measure.

Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 116 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent Proposed Resolution 1 – Administrative Items
Affirmation of
Local Just
Cause Eviction
Law
Rent Control
Board Term
Limits
Rent Control
Maximum Unit
Registration Fee
Amendment
Rent Control
Board Petition
Decision
Timeline
Preserving
Affordable
Housing
Article XVIII (Rent Control) X X X X X
Article XXIII (Housing Policies) X X
Proposed Resolution 2 -
Non-Payment Eviction Threshold
Non-Payment Eviction Threshold
Article XVIII (Rent Control) X
Article XXIII (Housing Policies) X
Proposed Resolution 3 – Additional Tenant Protections
Limiting Evictions
Based on New
Occupants
Limiting Evictions of
Remaining
Household Members
Extending Just Cause
Protections to Single
Unit Dwellings
Updating OwnerMove In Regulations
Article XVIII (Rent Control) X X
Article XXIII (Housing Policies) X X X X
Item 11-B
July 28, 2026 (Special Meeting)
Item 11-B
July 28, 2026 (Special Meeting)

11.B.e
Packet Pg. 117 Attachment: PowerPoint Presentation (7848 : 11.B. Ballot Measures Amending Rent

Santa Monica City CouncilJuly 28, 2026

Santa Monica City Council
July 28, 2026