City of Sunnyvale
Agenda Item
23-0515 Agenda Date: 4/25/2023
REPORT TO COUNCIL
SUBJECT
Introduce an Ordinance to Add Chapter 19.71 of Title 19 of the Sunnyvale Municipal Code Creating a Residential Tenant Protections Program (Study Issue)
SUMMARY OF COMMISSION ACTION
The Housing and Human Services Commission considered this item on March 22, 2023. There were two members of the public who spoke at the meeting, one supporting the staff’s recommendation and one opposing it. The meeting minutes can be found as Attachment 7 to this report. The Commission voted to recommend to City Council to introduce an ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Program with the following modifications: (1) language clarifying that relocation assistance be available only to those named on the lease; (2) only one month of relocation assistance would be required; and (3) language asserting that relocation assistance would not vary based on income of the tenant(s). The vote was 6-0-1, with Commissioner Davis absent.
The Planning Commission considered this item on April 10, 2023. There were two members of the public who spoke at the meeting, one supporting the staff recommendation and one opposing it. The Commission voted to recommend to City Council to introduce an ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Program with the following modifications: (1) if feasible, the lease addendum containing applicable information on the proposed ordinance must be made available to tenants in Spanish, and (2) a tenant can agree to waive their right to relocation assistance, equal to two months of rent, in exchange for other accommodations provided by the property owner (e.g., storage for their household items, differential rental payment for temporary lodging, guarantee that the tenant may return to their unit under the same lease terms, etc.), and any such arrangement must be memorialized in a written agreement signed by the tenant and their property owner. The vote was 6-1.
Public Comment letters are provided in Attachment 5 to the report.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Public Library, Senior Center, Community Center and in the Department of Public Safety Lobby. In addition, the agenda and report are available at the Sunnyvale Public Library, Office of the City Clerk, and on the City's website.
ALTERNATIVES
1. Introduce an Ordinance (Attachment 6) to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential
Attachment 5
23-0515 Agenda Date: 4/25/2023
Tenant Protections Program.
2. Introduce an Ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Program with modifications.
3. Do not introduce an Ordinance and provide direction to staff.
Housing and Human Services Commission Recommendation
4. Introduce an Ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Program with the following modifications: language clarifying that relocation assistance would be available only to those named on the lease; only one month of relocation assistance would be required; and language asserting that relocation assistance would not vary based on income of tenant(s).
Planning Commission Recommendation
5. Introduce an Ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Program with the following modifications:
if feasible, the lease addendum containing applicable
information on the proposed ordinance must be made available to tenants in Spanish; and a tenant can agree to waive their right to relocation assistance, equal to two months of rent, in exchange for other accommodations provided by the property owner (e.g., storage for their household items, differential rental payment for temporary lodging, guarantee that the tenant may return to their unit under the same lease terms, etc.), and any such arrangement must be memorialized in a written agreement signed by the tenant and their property owner.
STAFF RECOMMENDATION
Alternative 1: Introduce an Ordinance (Attachment 6) to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Program.
Alternative 1 meets the City’s goal of providing enhanced tenant protections while being cognizant of the landlords and property owners who already provide affordable housing in terms of affordable market rate rent. Additionally, the proposed Ordinance would provide tenants and landlords/property owners with the stability and clarity that were identified in the Study Issue. While the Housing and Human Services Commission and Planning Commission recommendations provide protection for differing support for tenants, staff continues to recommend Alternative 1 to ensure the extent of substantial relocation costs can be covered by the proposed two-month relocation assistance and clarity of the Ordinance and landlord requirements are retained. The recommendation to provide formal lease or lease addendum materials in Spanish (or other languages for that matter) may already be covered by Civil Code section 1632. Under section 1632, if a landlord and tenant negotiated primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean regarding a tenancy agreement, then the landlord is legally obligated to provide the tenant a translation of the agreement in the language that was used to negotiate the agreement between the parties.
The City does not recommend requiring a landlord to provide a translation of a tenancy agreement, including a lease addendum, beyond the scope of Civil Code section 1632 (i.e., provide a translation even though the negotiation of the tenancy agreement was conducted in English or another language
Attachment 5
23-0515 Agenda Date: 4/25/2023
not specified by the statute), even if the language used to translate the agreement is the preferred language of the tenant. Under such a requirement, the City would be requiring all landlords to provide all lease documents in a variety of languages at their expense and, more critically, could not ensure the accuracy of the translation or the involvement of a competent translator. City staff can, however, provide City-only outreach materials on the City’s website in various languages as needed.
Prepared by: Ernie Defrenchi, Affordable Housing Manager Reviewed by: Jenny Carloni, Housing Officer
Reviewed by: Trudi Ryan, Director, Community Development Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Report to Planning Commission [23-0485, April 10, 2023] (without attachments, same as Report to Housing and Human Services Commission)
2. Excerpt of Final Minutes of the Housing and Human Services Commission Meeting of September 21, 2022
3. Survey Results - Surrounding Jurisdictions
4. Survey Results - Stakeholders/General Public
5. Correspondence Received from the Public
6. Draft Ordinance
Additional Attachments for Report to Council
7. Excerpt of Draft Minutes of the Housing and Human Services Commission Meeting of March 22, 2023
8. Excerpt of Draft Minutes of the Planning Commission Meeting of April 10, 2023
Attachment 5
City of Sunnyvale
Agenda Item
23-0485 Agenda Date: 4/10/2023
REPORT TO PLANNING COMMISSION
SUBJECT
Forward a Recommendation to the City Council to Introduce an Ordinance to Add Chapter 19.71 of Title 19 of the Sunnyvale Municipal Code Creating a Residential Tenant Protections Programs (Study Issue)
BACKGROUND
On October 12, 2020, City Council approved the Housing Strategy (RTC No. 20-0809), which resulted from a cumulation of many workshops, outreach meetings and several public hearings. The Housing Strategy identified areas for improvement to current programs as well as new programs to consider for Sunnyvale’s growing population and housing needs. Two items from the Housing Strategy that emerged as Tier 1 and 2 items were a relocation assistance requirement for no-fault just cause evictions and a right to lease requirement for landlords to offer tenants a longer-term lease rather than just month-to-month tenancy. The right to lease component of this Ordinance was also a 2019 City Council Study Issue (CDD 18-0710). City staff realized an opportunity to combine both projects into one and named it Tenant Protections. If approved, the resulting Ordinance will become part of Sunnyvale’s Municipal Code.
The Housing and Human Services Commission (HHSC), Planning Commission and City Council were all scheduled to hear this item in the fall of 2022 but due to the complexity of the Ordinance, all hearings were continued to a date uncertain. Staff did hold a meeting with HHSC on September 21, 2022, to request feedback on conceptual ideas for an ordinance. The Commission provided feedback, which is summarized in the meeting minutes as Attachment 2 to this report.
During their March 22, 2023 meeting, the Housing and Human Services Commission considered the draft Ordinance. The Commission voted 6-0 (one commissioner absent) to recommend the Ordinance to City Council, with a modification to retain the state law provision for relocation assistance equal to one month of rent, which is distinguishable from the staff recommended relocation assistance equal to two months of rent.
This item is scheduled for consideration during the April 25, 2023 City Council meeting.
EXISTING POLICY
Sunnyvale General Plan, Housing Element
GOAL HE-1 Adequate Housing: Assist in the provision of adequate housing to meet the diverse needs of Sunnyvale’s households of all income levels.
GOAL HE-2 Enhanced Housing Conditions and Affordability: Maintain and enhance the conditions and affordability of existing housing in Sunnyvale.
Attachment 5
23-0485 Agenda Date: 4/10/2023
GOAL HE-5 Equal Housing Opportunities: Promote equal housing opportunities for all residents, including Sunnyvale’s special needs populations, so that residents can reside in the housing of their choice.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the provisions of the California Environmental Quality Act (“CEQA”) under CEQA Guidelines Section 15061(b)(3) in that the City Council finds there is no possibility that the implementation of this ordinance may have a significant effect on the environment.
DISCUSSION
Housing in Sunnyvale and the greater Bay Area is marked by high home values and rents. At a minimum, the cost of housing is driven by both the high demand from strong employment growth and the limited housing supply. Unfortunately, a limited supply of housing can result in changes in land use that may leave renters with fewer options for housing. During the Housing Strategy outreach meetings and community workshops in 2019, renters in the community expressed concerns about the rental housing market; specifically, affordability, lack of affordable units, and tenant protections.
Although there are current state laws to address some of these items, renters were looking for increased protections and stability.
Existing State Law - AB 1482
Governor Newsom signed Assembly Bill (AB) 1482, which added Sections 1946.2, 1947.12 and 1947.13 to the California Civil Code, to address and create a number of rental housing policies including maximum annual rent increases for certain properties, just cause eviction protections for those evicted due to no-fault of the tenant, and relocation assistance for those displaced. AB 1482 went into effect on January 1, 2020, and sunsets on January 1, 2030. AB 1482 is the basis for the City’s proposed Tenant Protections Ordinance. Below is a summary of AB 1482:
· Rent Cap
o Places an upper limit on annual rent increases: five percent (5%) plus cost-of-living inflation based on the Consumer Price Index (CPI) up to a maximum of 10 percent (10%) increase each year.
o Allows only one rent increase over a 12-month period. o Rent cap is only applicable to existing tenants, and landlord may increase rent as needed in between tenancies.
o Exemptions from this rent cap include:
· Properties issued a Certificate of Occupancy within last 15 years. · Single family homes, townhouses, and condominiums, unless owned by a real estate investment trust, corporation or LLC, in which one member is a corporation. · Owner-occupied duplexes.
· Properties subject to more restrictive local rent control ordinances. · At-Fault Just Cause Eviction Protection
o Landlords who evict tenants for an at-fault eviction are not required to pay the tenant any type of relocation assistance. Examples of at-fault just causes include:
· Non-payment of rent.
· Breach of material lease term.
Attachment 5
23-0485 Agenda Date: 4/10/2023
· Commission of nuisance, waste, or criminal acts on the residential real property. · Subletting unit in violation of the tenant’s lease.
· Failure to vacate after providing notice.
· No-Fault Just Cause Eviction Protection
o Events of eviction that are not the fault of the tenant (no-fault) but are a legal cause for eviction are referred to as “no-fault just cause”. In these instances, AB 1482 requires the landlord to provide 30 days’ notice to the tenant and the landlord is required to pay an amount equal to one-month’s rent as relocation assistance. No-fault just causes include:
· Compliance with an order issued by the government or court, or a local ordinance that requires vacation of the unit (e.g., red tag). · Removal of the rental unit from the marketplace.
· Intent to demolish or substantially remodel the unit. · Intent to occupy the residential property or for specified family members of the landlord to occupy the property (for leases entered into on or after July 1, 2020, this clause applies only if the tenant agrees to such termination or if the lease allows for unilateral termination for such occupation).
Outreach
Surveys
Housing staff conducted three surveys to gather input on the tenant protection topics.
1. Local Jurisdictions
:
Staff used internal county-wide housing working group meetings to discuss the proposed Ordinance and learn more about neighboring jurisdictions. Attachment 3 provides the results from the survey. The four cities that have existing tenant protection programs (either through Rent Control or another program) include Mountain View, Palo Alto, San Jose, and Milpitas.
2. Stakeholders
:
Staff surveyed landlords, property managers, and owners of multifamily rentals to gauge concerns regarding enhanced protections. In all, 714 responses were received. Attachment 4 provides informational results gathered from the survey (see pages 1-3). Attachment 4 also includes merged stakeholder/general comments that staff felt were important to show together (see pages 7-8).
3. General Public/Tenants
:
The City received 261 responses from renters in Sunnyvale and/or members of the public.
Attachment 4, pages 4-6, provides informational results gathered from the survey. As stated above, pages 7-8 of Attachment 4 are merged stakeholder/general comments that staff felt were important to show together.
Outreach Meetings
Staff held three outreach meetings: two for stakeholders and one for the general public/tenants.
Feedback from the stakeholders’ outreach meeting includes:
Attachment 5
23-0485 Agenda Date: 4/10/2023
· Current State Law provides adequate protection for tenants. · Smaller property owners generally charge rents below market rates and that having to pay two or three times the fair market rent for Santa Clara County for a no-fault just cause eviction would create a financial burden.
· Smaller property owners are already assisting the community by not charging market rate rents.
· Sunnyvale’s new Ordinance should keep the State’s requirement regarding relocation after the initial 12 months of residency.
· Only moving cost support should be considered if a landlord or property owner can provide a “like unit” within a reasonable distance of the current property. · It could be overly burdensome on landlords and property owners by creating additional steps in the leasing process.
· It would create an issue for renters and owners who are looking to rent a room(s) in their home for a short period, typically three months and who are not in the short-term rental business, similar to Airbnb and VRBO.
The feedback from the general public/tenants outreach meeting was that:
· Increased protections for renters are needed.
· More than one month’s rent would be needed to pay for relocation assistance. · It may be difficult to find a similar type of rental at the same rate in Sunnyvale. · It should be the City’s responsibility to educate property owners and landlords on any new right to lease requirements.
Attachment 5 contains all correspondence received by the public as a result of the surveys and outreach meetings.
Draft Ordinance
Staff considered many options to craft an ordinance (Attachment 6) to ensure that the requirements are not overly burdensome to landlords and property owners while ensuring enhanced protections to renters. Using AB 1482 as the basis for the City’s proposed Ordinance and considering what neighboring jurisdictions offer in terms of tenant protections, the Ordinance has been drafted to differ from AB 1482 in the following ways:
1. All rental units that received a certificate of occupancy (COO) within the last fifteen (15) years shall be subject to the City’s Tenant Protections Ordinance. · Current state law exempts units that have been built within 15 years. · The City Ordinance will parallel all the other state exemptions.
2. Relocation assistance for tenants residing in a subject rental unit shall receive relocation
Attachment 5
23-0485 Agenda Date: 4/10/2023
assistance equal to two months of rent.
· Current state law is one (1) month’s rent.
· It should be noted that at the September 2022 HHSC meeting, the Commission recommended relocation assistance equal to one (1) month. Staff is recommending two months relocation assistance based on: high costs of moving and related expenses associated with new rental deposits, neighboring cities require similar or higher assistance, and feedback from tenant population.
The right to lease portion of the Ordinance includes:
1. Landlords shall be required to offer a one (1) year lease to all new tenants. If the tenant rejects a one-year lease, then the landlord may offer a shorter-term lease, including month to month.
2. Tenants with month to month leases in place prior to the effective date of the Tenant Protections Ordinance shall have 120 days from the effective date of the Ordinance to request a one (1) year lease from their landlord.
3. Leases offered by landlords for a one (1) year term shall be substantially similar to all shorter- term lease offerings.
Tenants may use the Ordinance as the basis of a private civil action or a defense to a wrongful detainer action. The City would not issue citations or bring legal action to enforce the Ordinance on behalf of tenants.
FISCAL IMPACT
No direct impact to the General Fund is anticipated with adoption of the proposed Ordinance. The Housing Division will continue to use federally and locally funded tenant/landlord mediation and fair housing services to support Sunnyvale residents impacted by this new Ordinance.
PUBLIC CONTACT
Public contact was made by posting the Housing and Human Services Commission agenda on the City's official-notice bulletin board outside City Hall and by making the agenda and staff report available on the City’s website.
ALTERNATIVES
Recommend that the City Council:
1. Introduce an Ordinance (Attachment 6) to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Programs.
2. Introduce an Ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Programs with modifications.
3. Do not introduce an Ordinance and provide direction to staff.
Housing and Human Services Commission Recommendation
4. Introduce an Ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections
Attachment 5
23-0485 Agenda Date: 4/10/2023
Program with the following modifications: language clarifying that relocation assistance would be available only to those named on the lease; only one month of relocation assistance would be required; and language asserting that relocation assistance would not vary based on income of tenant(s).
RECOMMENDATION
Alternative 1: Recommend that the City Council introduce an Ordinance (Attachment 6 to the report) to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Programs.
Alternative 1 meets the City’s goal of providing enhanced tenant protections while being cognizant of the landlords and property owners who already provide affordable housing in terms of affordable market rate rent. Additionally, the proposed Ordinance would provide tenants and landlords/property owners with the stability and clarity that were identified in the Study Issue. While the Housing and Human Services Commission recommendation provides protection for valid tenants identified on the lease, staff continues to recommend Alternative 1 to ensure the extent of substantial relocation costs can be covered by the proposed two-month relocation assistance.
Prepared by: Ernie Defrenchi, Affordable Housing Manager Reviewed by: Shaunn Mendrin, Planning Officer
Reviewed by: Jenny Carloni, Housing Officer
Reviewed by: Trudi Ryan, Director, Community Development Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Reserved for Report to Council
2. Excerpt of Final Minutes of the Housing and Human Services Commission Meeting of September 21, 2022
3. Survey Results - Surrounding Jurisdictions
4. Survey Results - Stakeholders/General Public
5. Correspondence Received from the Public
6. Draft Ordinance
7. Excerpt of Draft Minutes of the Housing and Human Services Commission Meeting of March 22, 2023
Attachment 5
City of Sunnyvale
Excerpt Meeting Minutes - Final
Housing and Human Services
Commission
7:00 PM Teleconference Meeting: City Web
Stream
Wednesday, September 21, 2022
Special Meeting
CALL TO ORDER
Vice Chair Riviere called the meeting to order at 7:07 p.m.
ROLL CALL
Vice Chair Leesa Riviere
Commissioner Jim Davis
Commissioner Scott Duncan
Commissioner Sue Harrison
Commissioner Ken Hiremath
Present: 5 -
Chair Elinor StetsonAbsent: 1 -
Commissioner Ken Hiremath arrived at 7:12 p.m.
Council Liaison Russ Melton (present)
PUBLIC HEARINGS/GENERAL BUSINESS
2 22-0952 Consider Requirements for a Tenant Protections and Right to Lease Ordinance (Study Issue)
Affordable Housing Manager Ernie Defrenchi gave the staff presentation.
After clarifying questions of staff, Vice Chair Riviere opened the public at 7:44 p.m.
Emily Ann Ramos, Preservation and Protection Associate at SV@Home spoke in support of staff's recommendation for tenant relocation assistance and one-year leases as overall concepts. She note that 55% of Sunnyvale's residents are renters, approximately 30,000 rental units. Lastly she shared that the cities of Mountain View and Palo Alto provide extra protections.
Janet Murdock, owner of a 50-year-old fourplex in Sunnyvale, opposed staff's recommendation. She shared that she lives in one of the units and rents the other three. She expressed concern about the impact of staff proposal to "small" landlords
Attachment 5
September 21, 2022Housing and Human Services
Commission
Excerpt Meeting Minutes - Final
such as herself which are only aggravated by the age of her property and the impending repairs and upgrades that it will need.
Vice Chair Riviere closed the public hearing at 7:53 p.m.
During questions and discussion, multiple commissioners expressed concern with two-month relocation benefit and did not support it citing potential unintended consequences for some landlords.
Vice Chair Riviere asked for any further discussion or a motion.
MOTION: Commissioner Harrison moved and Commissioner Davis seconded the motion to Alternative 2. Approve the requirements listed in Attachment 5 to the report and return to the Commission with an ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code to create enhanced tenant protections, with the modification to reduce the relocation amount to one month's rent.
The motion carried by the following vote:
Yes: Vice Chair Riviere
Commissioner Davis
Commissioner Duncan
Commissioner Harrison
Commissioner Hiremath
5 -
No: 0
Absent: Chair Stetson1 -
Attachment 5
Jurisdiction Relocation
Assistance
Notes Right to
Lease
Notes
San Jose Yes $10,353 (Base Amount W/ Annual CPI Increase) applies to multi‐family built before 1979. SJ has a form of rent control on units constructed prior to 1979.
No
Mt. View Yes 3‐Months, Median Monthly Rent, applies to lots with 3+ rental units. Includes provide additional assistance for “special circumstance” households (i.e., elderly, low‐income, disabled). Has citywide rent control.
No
Palo Alto Yes $14,153.05 (W/ Annual CPI
Increase) applies to lots with 10+
rental units. Includes provide additional assistance for “special circumstance” households (i.e., elderly, low‐income, disabled).
Yes Required to offer 1‐year lease. Applies to multi‐family, duplexs and mobile homes
Los Gatos Yes Rental Dispute Program ‐ similar
to rent control, applies to 3
or more units. Similar to Campbell with a process for
resolution of tenant/landlord disputes concerning rent
increases, housing services or proposed evictions. Uses Project Sentinel.
No
Campbell Yes Rent Increase Dispute Resolution Program, applies to 4 or more units. Process for resolution of
tenant/landlord disputes concerning rent increases, housing services or proposed evictions. Uses Project Sentinel
No
Milpitas No Has a rent
review ordinance that was never used ‐ and the
state assembly bill on tenant protections made the
ordinance obsolete. Milpitas does not have enhanced
tenant protections beyond the state protections ‐ and
funding for Project Sentinel.
No
Cupertino No No
Santa Clara No No
Morgan Hill No No
Gilroy
No No
Saratoga No No
SC County HA No Does not get involved in this type of local government action.
No Does not get involved in this type of local government action.
Attachment 5
Stakeholder Charts
Attachment 5
Attachment 5
Attachment 5
Tenant Charts
Attachment 5
Attachment 5
Attachment 5
Combined Tenant/Landlord Charts
Attachment 5
Attachment 5
From:
To: Ernie Defrenchi
Subject: Re: You’re Invited to a Stakeholder Group Discussion for the City of Sunnyvale: Right-to-Lease and Tenant Protections Ordinance
Date: Monday, June 13, 2022 7:03:16 PM
ATTN: Email is from an external source; Stop, Look, and Think before opening attachments or links.
First: 1 Year lease is a common option for lease after Month to Month option, and it is up to home owner to have or have not this option - this is his Privet Property and it is only subject of an agreement between Owner and Tenant, it is nobody else Business. ( see "Private Property" meaning in both California and Federal constitutions).
Second: No one
tenant evicted for a no-fault just cause, it is always going through Lawyers and a court of law, so
second part is meaningless and see "Private Property" meaning in both California and Federal constitutions" every time you are writing your Ordinances, it is very helpful, before you go to the class action lawsuit from the owners, which can bring dawn all the City and County and State Ordinance structure. It can be arrange, just for fun of it.
I doubt you want to have this kind of Ordinance for "Car rental" companies, 'Equipment rental' Companies,
"Public travel" companies (Buses, Planes, Railroads) - you renting space or seat in them for time traveled.
What difference do you see? law wise it is NONE - they are all the private properties giving to some entity or individual for a limited time use according to an agreement which suppose to follow the Law of the
Land.
Of course, if you want to eliminate "Private Property" by small steps, then Welcome to Communist China this is what you'll get as a result!
Best regards
Home owner.
-----Original Message-----
From: Ernie Defrenchi <[email protected]>
To: HousDiv AP <[email protected]>
Sent: Mon, Jun 13, 2022 11:53 am
Subject: You’re Invited to a Stakeholder Group Discussion for the City of Sunnyvale: Right-to-Lease and Tenant Protections Ordinance
Good afternoon, the City of Sunnyvale is preparing a draft Right-to-Lease and Tenant Protections ordinance. This ordinance would require property owners to:
Offer at least a one-year lease to tenants
Provide relocation assistance to tenants who are evicted for a no-fault just cause The City would like to hear your concerns, suggestions or alternative solutions at a stakeholder meeting for just the development community as well as landlords and property owners on June 20th at noon and 6pm. The City is offering two time options however information provided at the meeting will be the same.
Please Note: This is an invitation based event, please do not share with others.
Attachment 5
Online Link: https://sunnyvale-ca-gov.zoom.us/j/89521630868 By telephone 833-548-0276 | Meeting ID 833 548 0276
Additionally, you can provide us with your feedback anonymously by completing this survey before July 1.
Regards,
Ernie Defrenchi
Affordable Housing Manager
Community Development Department
(c) 408-483-0663
Direct Line:
408-730-2784
Fax: 408-737-4906
Sunnyvale.ca.gov
Attachment 5
From: HousDiv AP
To: Ernie Defrenchi
Subject: FW: June 20 Housing meeting ... Rental Owner feedback Date: Monday, June 20, 2022 1:13:51 PM
FYI
From: Mick W
Sent: Monday, June 20, 2022 12:26 PM
To: HousDiv AP <[email protected]>
Subject: June 20 Housing meeting ... Rental Owner feedback
ATTN: Email is from an external source; Stop, Look, and Think before opening attachments or links.
City of Sunnyvale June 20, 2022 One Year Right to Lease, Relocation Assistance, “Tenant Protections”
Please Stop your destruction of private property.
The ‘no fault just cause eviction’ RELOCATION ASSISTANCE is a BAD IDEA.
When major repairs occur such as the new Sewer line on Murphy Avenue a few years ago, we paid thousands of dollars for new ‘sewer laterals,’ not the renters.
When our insurance company required a new roof on our property, we paid, not the renters.
When real estate taxes, bonds and fees creep up annually, owners pay, not renters.
Money does not grow on trees or rentals.
Another government cost discourages rental ownership and construction in Sunnyvale.
‘Relocation Assistance’ is another cost that owners will be forced to pay.
And like all Government programs, it will be ‘gamed,’ and taken advantage of….
In the long run Sunnyvale will be regarded as a bad investment, too costly, legally unpredictable and hostile towards property owners.
As a result, there will be less rental property and fewer housing options for renters.
Also, we already have State Wide Rent Control ( 5 % + CPI) on most rental property.
If you insist on ‘helping’ renters, why not be fair and allow Owners to take 5% of Tenant income increases & pay raises.
Call it Rental Provider Assistance
. Fair is Fair.
And regarding One Year Leases.
Silicon Valley employment is cyclical and unpredictable. People move from job to job for more money or relocation demanded by their employer. People move and break their leases.
When Tenants break their leases, we have always let them go. We never drag them to court to pay months of rent or hold their Deposit when they skip out early.
But maybe we should enforce Leases and make tenants pay or ‘ding’ their credit score a few points. We could. That’s the law.
In Summary, if the rental business becomes onerous for landlords, it will become onerous for Renters too. There will always be housing ‘shortages’ and periods of over supply when real estate prices drop. Markets are cyclical. Things change. If you want to provide rental housing, change the Zoning laws. Allow ‘high-rise’ construction everywhere. Subsidize rents. Or Cap rents at just $ 100 per month.
Why not? You could turn Sunnyvale into Manhattan and eventually there would still be a housing shortage.
If I were you, I would leave the ‘market’ to work out the rental situation.
Attachment 5
As the old quote goes, “don’t just do something, stand there.”
Michael Wasylyshyn
Attachment 5
Attachment 5
Attachment 5
1 Ernie Defrenchi
Subject: FW: Right to lease and Tenant Protection
From: Helia Carvalho
Sent: Friday, August 26, 2022 11:16 PM
To: Ryan Dyson <[email protected]>
Subject: Right to lease and Tenant Protection
ATTN: Email is from an external source; Stop, Look, and Think before opening attachments or links.
August 26, 2022
I have been unable to respond to you by taking the survey, I did spend some time on the phone yesterday with Ryan. He listened to me, but I didn't feel I was really heard for the simple reason his message was the same.
I'm in disbelief about what the city of Sunnyvale is trying to do, one more nail in the coffin of the property owners. No one looks to help, assist or protect the property owners, it's all protecting the tenants, but who pays for all the
destruction or lack of rent tenants don't pay. plus the taxes to the city we do.
Do I just call the city of Sunnyvale and ask for protection and help? No when the Moratorium was pushed upon us, we had to pay Taxes, Insurance, Repairs, Utilities, Mortgages ther e was no help from the City. I called the city to see about helping tenants that couldn't pay their rent one tenant one time received assistance, then no more.
So problems are created for property owners, with no resolution in sight. Now you are trying to pass another law, the property owner does a one year lease agreement. Are you going to be available if they don't pay rent yet they have 8 or 9 months on their lease
.
The best one is for a property owner to pay relocation assistance to a tenant for a no fault just cause. My questi on is
who is taking over my property, the city of Sunnyvale or am I the owner. Someone told me sometime ago that the government's goal is to take over properties, I laughed, but after the city of San Jose and now Sunnyvale is doing its no longer laughable
The City Council sits around, votes on these out of control laws and never mind thinking things out. Large Corporations can purchase properties owned by small owners, and let them go no longer are they taken care of as a small owner does pretty soon it all looks like a dump. I know it happened to me. Th e cooperation bought out a building of mine, increased
the rents sky high, and let it go. The outside looks horrible. Embarrassing for the neighborhood then property values go down that's it.
You ask for owners, and managers
input but you have already made up your minds what we say and think is baseless. keep in mind I can't imagine any owner is happy about any of this in my way of thinking thats many NO's.
Sincerely
Helia Carvalho
Attachment 5
From: Agnes Veith
To: Ernie Defrenchi
Cc: Jenny Carloni
Subject: Agnes Veith: Housing and Human Services Commission Meeting Date: Wednesday, March 22, 2023 8:51:11 PM
Importance: High
ATTN: Email is from an external source; Stop, Look, and Think before opening attachments or links.
Hi Ernie and ,
I am currently listening to the commission meeting but when I raised my hand my hand was not recognized. The comment I intended to make is below.
Agnes
----
Good Evening,
I am Agnes Veith.
I am on the board of Livable Sunnyvale but tonight I am speaking on my own behalf.
I understand 55% of Sunnyvale’s residents are renters. Protecting renters is extremely important and I want to thank city staff for their efforts on this ordinance. I would like to make one suggestion however, because I do not think thirty days notice is sufficient time for anyone to find housing in our current market.
I would like to see this ordinance changed to reflect
ninety days notice required in the case of a no fault eviction.
Over time, I would also like to see city leadership consider changing the rent cap calculation.
The upper limit on annual rent increases is based on 5% plus CPI which will almost certainly exceed any renter’s annual salary increase.
Thank you.
Attachment 5
The Mom-and-Pop Perspective on
Sunnyvale’s proposed Tenant Protection
Ordinance
Janet Murdock
30 years as a Bay Area renter
11 years as the ‘mom’ of a Sunnyvale mom-and-pop 4-plex Regarding Agenda Item 23-0485
Sunnyvale Planning Commission Meeting
April 10, 2023
1 Attachment 5
The Rental Market Problems of 2019 Are Gone; There’s Time to Carefully Evaluate New Laws We had essentially zero vacancy and tech workers flooding to the area with large paychecks, desperately looking for a place to live.
Rent-gouging and frivolous evictions were lucrative for the unscrupulous owners who chose that path The proposed Sunnyvale Tenant Protection Ordinance arose out of these conditions 2019
2023 The market changed:
• Tech workers moved elsewhere and work from home permanently • Some tech workers are being laid off
• Plenty of vacancy
• Turnover is costly, not lucrative
• Rent-gouging isn’t possible
The laws changed--State Law AB 1482 enacted January of 2020:
• Imposes rent control
• Restricts evictions after one year of tenancy, requiring ‘No Fault Just Cause’ or ‘At Fault Just Cause. • Law doesn’t apply to properties 15 years old or less, and some other exceptions 2 Attachment 5
About Me and the 4 Other Mom-and-Pops I know :
We provide good deals and stable tenancies through booms and busts. • We all have policies that result in very low rent increases for our existing tenants • I raised rents an average of 3% per year during the recent tech boom. I’ve had no turnovers in my 11 years as an owner, so my tenants now pay rents that are 30-35% below fair market • One Pop doesn’t raise rents until the tenant asks for improvements or a remodel • Two Mom and Pop’s don’t raise rents at all on their existing tenants; one decided that after 10 years without turnover, a rent increase was necessary.
• Why do we keep rent increases small and turnover low? • To avoid spikes in workload—the time it takes from our lives matters extra cash doesn’t make up for it • To avoid spikes in stress--turnover and the risk of getting a bad tenant are stressors • Our low-turnover operations keep costs down
• No maintenance and cleaning crew to handle turnovers
• No front office staff to handle screenings and paperwork • No legal department to handle evictions of new tenants who turn out to be bad tenants But the proposed Tenant Protection ordinance will force changes in how we operate 3 Attachment 5
120-day Enactment Period Unfairly Penalizes Some Rent-Controlled (AB 1482) Properties • California’s new law, AB 1482, imposes rent caps on many properties: Rent cannot be increased more than the capped amount in any 12-month period.
• The date of the annual rent increase varies from property to property. • The start date for 12-month leases mandated by the 120-day enactment period will lock in the current rent for 12 months, forcing some properties to miss their annual rent increase. • It is unfair to arbitrarily (just by happenstance of the date of the property’s last rent increase) deny some owners their annual rent increase, especially in a time when inflation is high and costs of operation are going up.
A better solution: For properties covered by AB1482 rent control, • Allow for a 4-month education period to get word out about the new law • Require 12-month leases to be offered at the time of the first rent increase that occurs after the education period
• 12-month leases must be offered in all cases no later than 16 months after the enactment Reminder: The rental market has calmed. Evicting tenants is not lucrative like it may have been in the tech boom.
There’s no need to rush a 12-month lease requirement into place to stop frivolous evictions. 4 Attachment 5
The requirement that 12-month leases must be renewed forever can cause unnecessary evictions • Buildings don’t last forever
• Sunnyvale has many old buildings serving as rentals, up to ~80 years old • Building-wide maintenance keeps old buildings functional and up-to-date • Earthquake retrofit
• Slow, small, long-term water intrusion impairs structural soundness over the decades • Old electrical systems that can’t handle the demands of an all-electric era and become safety issues • The wonder materials of yesteryear—Asbestos and lead have to be removed when found • Building-wide maintenance can cause the building to be uninhabitable for a few weeks or more • Building-wide maintenance can be accomplished under month-to-month leases without evictions • Coordinate with tenants’ schedules: School events? Graduations? Knee-replacement surgery? Vacations? • If we can’t leave all furniture and belongings in the units while work proceeds, I rent storage PODs • Make a deal with the 4-plex owner 3 doors away who runs as an Air BnB to house my tenants temporarily • Change the rental agreement for one month: zero rent and belongings can stay on property • Win-Win: My tenants keep their below-market rents and I keep my good tenants • Under Sunnyvale’s proposed forever-renewing 12-month leases, I would have no choice but to evict at the end of the leases; No consideration for tenants’ school schedules or surgeries is possible 5 Attachment 5
Three Alternatives to the 12-month leases forever to accommodate building-wide maintenance on old buildings
City of Sunnyvale waives of the 12-month lease on a case-by-case basis, based on:
• Owner’s maintenance plan
• Tenant accommodations during maintenance
• Tenants retain the same rents after maintenance with a 12-month lease offer Exempt buildings that are 30 years old or older from the leasing requirement • Big maintenance starts to be necessary at about 30 years • These buildings (including my 4-plex) are covered by AB 1482’s rent control and ‘No Fault Just Cause’ eviction limitations already
Exempt the Mom-and-Pop 0perations
• There are many 4-plexes in Sunnyvale that were built (a long time ago) for owners who live on site (in a so-called ‘owners unit’) and rent out the other 3 units • Our interests are already aligned with our tenants; We keep turnover down by keeping rent increases small.
• The extra cost of the unnecessary evictions can make it cost-prohibitive for small owners to maintain old buildings
6 Attachment 5
Bad Tenant Risk and Cost Increased by Sunnyvale’s Proposed Ordnance • State Law AB 1482’s requirements for ‘No Fault Just Cause’ eviction don’t apply until the tenant is been in place for 12 months
• An owner can remove a tenant on a month-to-month lease by simply giving sufficient notice. • Starting a 12-month lease on the first day of a tenancy imposes a bigger bad-tenant risk formom-and-pops • The only option is to hire an attorney and proceed with an unlawful detainer case (We don’t have a legal department.)
• Besides high cost, this requires a lot of my time and is high-stress • To mitigate those risks and costs, my best option is to
1. Institute higher minimums when screening new tenants (better credit rating, rental income, and minimum income)
2. Charge a higher deposit: Instead of the $500-$700 that is now customary, charge a full month’s rent, so that the new tenant has some skin in the game
3. A well-heeled tenant will eventually come along who will appreciate the good deal I can provide Under State Law AB 1482:
Under Sunnyvale’s Proposed Tenant Protection Ordinance:
7 Attachment 5
Tilting the Local Rental Market against Mom-and-Pops and towards Big Players
1. It’s not enough to have a lot of apartments available to keep rents moderate. There have to be a lot of owners.
2. Mom-and-Pops are providing great deals to tenants because long-term tenancies are fundamental to our quality of life.
3. Tilting the market removes rungs from the economic ladder. It will prevent current renters from becoming the next generation of Mom-and-Pops.
• I was a bay area renter for 30 years before becoming a 4-plex owner. • My next-door neighbor, also an owner who lives in his 4-plex, was a renter in that building prior to purchasing it from the previous owner, when that owner retired.
4. Big Players like Blackstone don’t out-compete Mom-and-Pops. They wait for us to become distressed.
• The proposed Sunnyvale Tenant Protections add complications, risks, and maintenance costs that fall heavily on the Mom-and-Pop style of operations. • We are likely heading into a recession in the broader economy. • It could be another great opportunity for private equity firms like Blackstone.
After the 2008 financial crisis, Blackstone, a large Wall Street private equity firm, scooped up distressed properties (including single family homes) in the Inland Empire, east of Los Angeles. Even though there was wide-spread unemployment and vacancy, rents were increasing significantly. Why? Not enough owners. (This
phenomenon was investigated by Rana Faroohar, a reporter for the Financial Times, as described in interviewed by Ezra Klein of the New York Times on June 17, 2022) 8 Attachment 5
Summary: We request that Sunnyvale Planning Commission Consider Alternatives Instead of the proposed Tenant Protection ordinance, consider instituting a law similar to the emergency ordinances used in California fire zones:
• When vacancy gets to zero (in the next tech boom)
• Impose a 10% annual across-the-board rent cap
• Turnover of any sort does not allow the rent to be raised beyond the annual cap • It applies to ALL rentals, not just buildings older than 15 years Exempt the Mom-and-Pop 0perations from Sunnyvale Tenant Protection Ordinance • There are many 4-plexes in Sunnyvale that were built (a long time ago) for owners who live on site (in a so-called ‘owners unit’) and rent out the other 3 units • Our interests are already aligned with our tenants; We keep turnover down by keeping rent increases small.
• We are already under the restrictions imposed by State Law AB 1482 because we own an old building
Exempt Old Buildings
• A lot of the burden of Sunnyvale Tenant Protection is due to the need to do building- wide maintenance and the complications imposed by the ‘forever’ 12-month leases. • This maintenance doesn’t start until buildings are about 30 years old. • Exempt buildings that are older than 30 years.
OR
OR
9 Attachment 5
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Council Agenda: March 22, 2023
Item No.:
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ORDINANCE NO. _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SUNNYVALE TO ADD CHAPTER 19.71 (RESIDENTIAL
TENANT PROTECTIONS PROGRAMS) TO TITLE
NINETEEN (ZONING) OF THE SUNNYVALE MUNICIPAL
CODE RELATING TO TENANT PROTECTION AND
RIGHT TO LEASE
WHEREAS, the “Tenant Protection Act of 2019” (Assembly Bill [“AB”] 1482) (Civil Code Sections 1946.2 and 1947.12) was approved by the California Legislature on September 11, 2019, signed by the Governor on October 8, 2019, and amended in July 2021 (AB 978) to include some rented mobile homes within the residential rental units covered by the Tenant Protection Act of 2019; and
WHEREAS, AB 1482 imposes statewide rent control and “just cause” eviction protections for tenants; and
WHEREAS, Civil Code Section 1946.2(g)(1)(B) authorizes the adoption of local eviction protection ordinances that are more protective than the provisions of the state law; and WHEREAS, the City Council, pursuant to its police powers as a Charter City, has broad authority to maintain public peace, health, and safety of its community and preserve the quality of life for its residents; and
WHEREAS, housing instability threatens the public peace, health, and safety as eviction from one’s home can lead to prolonged homelessness; increased residential mobility; loss of community; strain on household finances due to the necessity of paying rental application fees and security deposits; stress and anxiety experienced by those displaced; increased commute times and traffic impacts if displaced workers cannot find affordable housing within the city in which they work; and interruption of the education of children in the home; and WHEREAS, eviction creates particular hardships for individuals and households of limited means, given the shortage of housing, particularly affordable housing, within the City of Sunnyvale and the San Francisco Bay Area region generally; and WHEREAS, the City of Sunnyvale desires to adopt a local tenant protection ordinance that is more protective than the provisions of AB 1482, and add new sections to Chapter 19.71 of the Sunnyvale Municipal Code.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SUNNYVALE DOES ORDAIN AS FOLLOWS:
SECTION 1. Chapter 19.71 ADDED. Chapter 19.71 (Residential Tenant Protections Programs) is hereby added to Title 19 (Zoning) of the Sunnyvale Municipal Code and reads as follows:
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Council Agenda: March 22, 2023
Item No.:
851\07\3475385.1
Chapter 19.71. RESIDENTIAL TENANT PROTECTIONS PROGRAMS
19.71.010. Title, findings, and intent.
(a) Findings. Pursuant to Civil Code Section 1946.2(g)(1)(B), the City Council hereby makes the following binding findings within this chapter that this chapter is more protective than the provisions of Civil Code Section 1946.2 because:
(1) The just causes for termination of a residential tenancy under this chapter are consistent with Civil Code Section 1946.2, and such provisions relating to just cause are incorporated by reference into this chapter; and (2) This chapter provides additional tenant protections that are not prohibited by any other provision of law. Specifically, this chapter applies eviction protections to residential real properties that have received certificates of occupancy within the previous fifteen (15) years, provides for higher relocation assistance amounts than those available to tenants covered by Civil Code Section 1946.2, and requires certain minimum lease terms.
(b) Intent. As provided in Civil Code Section 1946.2(g)(2), a residential real property shall not be subject to both a local ordinance requiring just cause for termination of a residential tenancy and Civil Code Section 1946.2. This chapter incorporates Civil Code Section 1946.2 by reference with the intent that the protections of Civil Code Section 1946.2 be extended to apply to residential tenants covered by Civil Code Section 1946.2, as well as to residential real properties that have been issued certificates of occupancy within the previous fifteen (15) years; to increase the amount of relocation benefits available to tenants; and that those provisions of this chapter which differ from Civil Code Section 1946.2 supplement and are more protective of residential tenants than Civil Code Section 1946.2.
19.71.020. Definitions.
When used in this chapter, these terms mean the following:
(a) “Just cause” for purposes of this chapter is defined as the at-fault causes set forth in Civil Code Section 1946.2(b)(1) and the no-fault causes set forth in Civil Code Section 1946.2(b)(2).
(b) “Owner” means any person, acting as principal or through an agent, having the right to offer residential real property for rent, and includes a predecessor in interest to the owner.
(c) “Rent” means all periodic payments and all nonmonetary consideration including, but not limited to, the fair market value of goods, labor performed or services rendered to or for the benefit of the tenant under a rental agreement concerning the use and occupancy of a residential real property and all attendant housing services, including all payments and consideration demanded or paid for parking, utility charges (if included in the rental amount paid Attachment 5
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Council Agenda: March 22, 2023
Item No.:
851\07\3475385.1
by the tenant to the owner), pets, furniture and other benefits, privileges or facilities connected with the use or occupancy of the residential real property. (d) “Residential real property” means any dwelling unit that is intended for human habitation, including any dwelling or unit in a mobile home park that is not owner-occupied.
However, residential real property as used in this chapter shall not include residential real properties or residential circumstances referenced in Civil Code Section 1946.2(e)(1) through (6) and (8).
(e) “Tenancy” means the lawful occupation of residential real property and includes a lease or sublease.
(f) “Tenant” means any individual or household who lawfully occupies residential real property including a subtenant.
19.71.030. Adoption of Civil Code Section 1946.2 by reference related to terminations of tenancy.
(a) This chapter adopts and incorporates by reference Civil Code Section 1946.2 in the Municipal Code in its entirety and as such statute may be amended from time to time, except for Civil Code Section 1946.2(e)(7), which is specifically excluded, and except for any other provisions that directly conflicts with this chapter.
(b) It is expressly intended that this chapter shall apply to residential real property regardless of when the certificate of occupancy has been issued, including residential real property for which a certificate of occupancy has been issued within the previous fifteen (15) years.
(c) This chapter shall not apply to Short Term Rentals, as defined in Chapter 19.76 of this code.
19.71.040. Notice of terminations of tenancy.
(a) Notice to Terminate Tenancy. Owners shall provide tenants written notice of the relocation assistance available to the tenant pursuant to Section 19.71.050 for any no-fault just cause eviction as defined in Civil Code Section 1946.2(b)(2) no less than thirty (30) days prior to the issuance of a notice of termination, unless the eviction is required by an order issued by a government agency and necessitates vacating the residential real property in a time sensitive manner.
(b) An owner’s failure to strictly comply with this section shall render the notice of termination void.
19.71.050. Relocation assistance for no-fault just cause evictions.
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Council Agenda: March 22, 2023
Item No.:
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(a) For a tenancy for which just cause is required to terminate the tenancy under Civil Code Section 1946.2(b)(2) (no-fault just cause), the owner shall be obligated to provide the tenant with relocation assistance in accordance with this Section 19.71.050. (b) The amount of relocation assistance provided to tenants for a no-fault just cause eviction shall be equal to two (2) times the tenant’s monthly rent that was in effect when the owner issued the notice of intent to terminate the tenancy. (c) The owner shall provide one-half of the relocation assistance owed to the tenant within fifteen (15) calendar days of service of the notice to terminate the tenancy. The remaining one-half of the relocation assistance may be provided either (1) in the form of a waiver of rent equivalent to one month towards the final month of tenancy, so long as the tenant has not previously paid the final month’s rent; or (2) a payment in cash or money order paid no later than the date the tenant vacates the residential real property. If the owner elects to waive the rent for the final month of tenancy, then the notice of relocation benefits provided pursuant to Section
19.71.040 shall state the amount of rent waived and that no rent is due for the final month of the tenancy.
19.71.060. Requirement to offer written lease; minimum lease terms. (a) One-Year Lease Term. If a prospective tenant or existing tenant identified under subsection (e) and (f) of this section wishes to rent residential real property from an owner and if said owner wishes to rent said residential real property to said prospective tenant, the owner must offer to the prospective tenant a written lease which has a minimum term of one (1) year. Such offer must be made in writing. If the prospective tenant accepts the offer of a written lease which has a minimum term of one year, this acceptance must be in writing. Signing a lease which has a minimum term of one year will be considered an offer if signed by the owner, and an acceptance if countersigned by the prospective tenant. If the prospective tenant rejects the offer for a written lease which has a minimum term of one year, such rejection must be in writing. Writing shall be defined as written notice or email. This written notice shall include, but is not limited to, the length of rental term offered and rental rate. Acceptance or denial of this offer shall include signature of both tenant and owner, which signature maybe via electronic signatures. (b) Shorter Lease Term. If said prospective tenant or existing tenant identified under subsection (e) of this section rejects the offer for a written lease which has a minimum term of twelve months as provided in subsection (a) of this section, said owner and said prospective tenant may then enter into a written lease that provides for a term of fewer than twelve (12) months, including a month to month lease term.
(c) Tenant Selected Lease Term. If owner offers an upfront menu of lease terms to tenant prior to lease acceptance, that shall satisfy this Section 19.71.060. The menu of term options shall allow the tenant the choice of the minimum number of options as follows: one (1) month, three (3) months, six (6) months, twelve (12) months. This chapter shall not cap the maximum term length that may be offered by the owner through this style of lease term offer.
The menu of term options can be presented to the tenant digitally through a rental software or rental website, or through a written form where the tenant selects the term length when applying for the residential real property. If the owner offers this style of a menu of term options, the owner is not required to comply with subsections (a) and (b) of this section.
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Item No.:
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(d) Rejection. It is the tenant’s responsibility to accept or reject the offer of a written lease in writing within five (5) calendar days of service of the written offer. If the tenant or prospective tenant rejects the offer for a written lease which has a minimum term of one (1) year, then the owner and tenant or prospective tenant may enter into an agreement, oral or written, that provides for a rental term of less than one (1) year. Failure to accept or reject shall allow owner to offer a lease to another tenant.
(e) Renewal of Lease. If both the owner and tenant wish to continue the rental relationship, upon the expiration of a written lease or rental agreement which has a term other than month to month, a written lease shall be offered again in accordance with the procedures set forth in subsections (a) through (c) of this section. The owner shall have no obligation to re-offer a tenant a one-year lease term if the tenant has previously rejected such offer(s) in accordance with the procedures set forth in subsections (a) through (c) of this section and has a written lease with a term of fewer than six (6) months.
(f) Existing Month to Month Tenancies. Within 120 days of the effective date of the ordinance codified in this chapter, any existing month to month tenant renting residential real property as of the effective date of this chapter may request a written lease with a minimum term of one (1) year, provided such tenant has not previously received a written notice of lease or rental agreement violation pursuant to Code of Civil Procedure Section 1161 and such violation remains uncured. The tenant shall make such a request in writing, as defined in subsection (a) of this section. The owner shall, upon receipt of such notice, offer to said tenant a written lease on terms substantially similar to those of the existing rental arrangement (except as to length of term) in accordance with the procedures set forth in this section, as applicable. (g) Good Faith. This chapter requires the exercise of good faith, which shall mean honestly and without fraud, collusion or deceit. It shall further mean that the written lease is not being utilized as a method of circumventing any of the provisions of this chapter. An example of good faith is when the owner offers in writing a lease which has a minimum term of one (1) year, that lease is substantially similar to the written rental agreement for a period of less than one (1) year.
(h) Exemptions. This section shall not apply to the following:
(1) Residential real property that is exempt from the just cause eviction protections set forth in Civil Code Section 1946.2, except for Civil Code Section 1946.2(e)(7), because it is expressly intended that this section shall apply to residential real property regardless of when the certificate of occupancy has been issued including residential real property for which a certificate of occupancy has been issued within the previous fifteen (15) years.
(2) Short Term Rentals, as defined in Chapter 19.76 of this code.
19.71.070. Notice of tenant rights.
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Council Agenda: March 22, 2023
Item No.:
851\07\3475385.1
(a) An owner of residential real property subject to this chapter shall provide notice to the tenant as follows:
(1) For any tenancy commenced or renewed on or after the effective date of the ordinance codified in this chapter, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant.
(2) For any tenancy existing prior to the effective date of the ordinance codified in this chapter, by written notice to the tenant no later than sixty (60) days after the effective date of this ordinance, or as an addendum to the lease or rental agreement.
(b) The notification or lease provision shall be in no less than 12-point type, and shall include the following:
City of Sunnyvale law provides that after all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See City of Sunnyvale Municipal Code Section 19.71.070 (Notice of tenant rights) for more information.
In addition, City of Sunnyvale Municipal Code Section 19.71.040 (Notice of terminations of tenancy) requires that tenants who are evicted for no-fault just cause receive a notice of available relocation benefits at least 30 days prior to receipt of the notice of termination, and the right to relocation payments in excess of those provided by state law. See City of Sunnyvale Municipal Code Section 19.71.040 for more information.
City of Sunnyvale Municipal Code Section 19.71.060 (Requirement to offer written lease; minimum lease terms) provides all new tenants with the right to written leases and minimum lease terms. Owners must offer tenants the option to enter into a one (1) year written lease. If a tenant declines a one (1) year written lease in writing, the Owner may enter into a written lease with a term of fewer than twelve (12) months, including month to month. Owners may also offer a menu of options to tenants prior to signing a lease which allow tenant the choice of term, with no fewer options than twelve (12) months, six (6) months, three (3) months, and one (1) month. See City of Sunnyvale Municipal Code Section 19.71.060 for more information.
(c) Manner of Notice. Owners must provide the notice to tenants in writing if the application and lease are processed in writing, electronically if the application and/or lease are processed electronically, or both if both methods are utilized. The provision of the notice shall be subject to Civil Code Section 1632.
19.71.080. Owner retaliation prohibited.
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Item No.:
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An owner is prohibited from retaliating against a tenant for lawfully and peaceably exercising their legal rights. No owner may take any action increasing any rental amount, reducing any service, causing the tenant to involuntarily quit the premises, or discriminating against the tenant because of the tenant’s use of any remedy provided by this chapter.
19.71.090. Nonwaiver.
Any waiver or purported waiver by a tenant of their rights under this chapter prior to the time when such rights may be exercised, except a rejection of a written lease which has a minimum term of one (1) year in accordance with the procedures set forth in Section 19.71.060 (Requirement to offer written lease; minimum lease terms) shall be void and unenforceable as contrary to public policy.
19.71.100. Remedies.
In the event of a violation of this chapter, a residential tenant may institute a civil proceeding for injunctive relief, money damages, and whatever other relief the court deems appropriate. The remedy available under this section shall be in addition to any other existing remedies which may be available to the residential tenant under local, county, state or federal law. In addition, this chapter grants a defense to eviction to any unlawful detainer actions in violation of this chapter.
SECTION 2. Compliance with CEQA. The City Council finds that the adoption and implementation of this ordinance are exempt from the provisions of the California Environmental Quality Act (“CEQA”) under CEQA Guidelines Section 15061(b)(3) in that the City Council finds there is no possibility that the implementation of this ordinance may have a significant effect on the environment.
SECTION 3. Constitutionality; Severability. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision or decisions shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 4. Effective Date. This ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.
SECTION 5. Posting and Publication. The City Clerk is directed to cause copies of this ordinance to be posted in three (3) prominent places in the City of Sunnyvale and to cause publication once in The Sun, the official publication of legal notices of the City of Sunnyvale, of a notice setting forth the date of adoption, the title of this ordinance, and a list of places where copies of this ordinance are posted, within fifteen (15) days after adoption of this ordinance.
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Council Agenda: March 22, 2023
Item No.:
851\07\3475385.1
Introduced at a regular meeting of the City Council held on ____________, and adopted as an ordinance of the City of Sunnyvale at a regular meeting of the City Council held on _________________, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
RECUSAL:
ATTEST: APPROVED:
DAVID CARNAHAN
City Clerk
Date of Attestation: _______________________
LARRY KLEIN
Mayor
(SEAL)
APPROVED AS TO FORM:
______________________________________
JOHN A. NAGEL
City Attorney
Attachment 5
City of Sunnyvale
Excerpt Meeting Minutes - Draft
Housing and Human Services
Commission
7:00 PM Online and Conference Room
Washington Community Swim Center,
255 S. Pastoria Ave.,
Sunnyvale, CA 94086
Wednesday, March 22, 2023
CALL TO ORDER
Chair Stetson called the meeting to order at 7 p.m.
SALUTE TO THE FLAG
Chair Stetson led the salute to the flag.
ROLL CALL
Chair Elinor Stetson
Vice Chair Leesa Riviere
Commissioner Scott Duncan
Commissioner Sue Harrison
Commissioner Ken Hiremath
Commissioner Helen Lei
Present: 6 -
Commissioner Jim DavisAbsent: 1 -
Commissioner Jim Davis (excused absence)
Council Liaison Larry Klein (present)
3 23-0260
Forward a Recommendation to the City Council to Introduce an Ordinance to Add Chapter 19.71 of Title 19 of the Sunnyvale Municipal Code Creating a Residential Tenant Protections Programs (Study Issue)
Affordable Housing Manager Ernie Defrenchi provided the staff report and answered questions.
After clarifying questions, Chair Stetson opened the public hearing at 8:33 p.m.
Marie Bernard, Sunnyvale Community Services Executive Director, spoke in support of the proposed ordinance providing enhanced relocation assistance for tenants.
She shared that the average cost to relocate a family in Sunnyvale is approximately
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March 22, 2023Housing and Human Services
Commission
Meeting Minutes - Draft
$10,000.00 to cover deposit and first month's rent.
Anil Babbar, spoke on behalf the California Apartment Association. He noted that this commission had voted to limit tenant relocation assistance to one month in September 2022 and encouraged them to do it again tonight. He committed to work with staff to incorporate the with the language of the right to lease ordinance in the forms to be used by all Sunnyvale landlords. Lastly, he countered staff's statements regarding newer construction exemptions. He noted that building housing in the Bay Area is extremely expensive and this exemptions help developers keep building and are not solely the result of lobbying.
Tessa McFarland, on behalf of a housing provider the owns several multi-family properties in Sunnyvale. She noted working with Project Sentinel and other tenant's rights organizations. She spoke in opposition of enhanced relocation assistance but added that if this was to pass it should include a means testing to ensure that only tenants who truly need the assistance receive it.
Janet Murdock, fourplex owner in Sunnyvale who lives in one of the units. She shared the unintended consequences to smaller property owners, such as less flexibility to get work done on units due to long term leases. She also noted having to raise rents more frequently since her units currently rent 30% under market.
Chair Stetson closed the public hearing at 8:47 p.m.
After a lengthy discussion about means testing, Chair Stetson asked for a motion.
MOTION: Commissioner Harrison moved and Commissioner Hiremath seconded the motion to approve Introduce an Ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Programs with the following modifications:
●
Relocation assistance only for those named on the lease ● Only one month of rental relocation assistance
The motion carried by the following vote:
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Meeting Minutes - Draft
Yes: Chair Stetson
Vice Chair Riviere
Commissioner Duncan
Commissioner Harrison
Commissioner Hiremath
Commissioner Lei
6 -
No: 0
Absent: Commissioner Davis1 -
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City of Sunnyvale
Excerpt Meeting Minutes - Draft
Planning Commission
5:30 PM Online and Bay Conference Room
(Room 145), City Hall,
456 W. Olive Ave.,
Sunnyvale, CA 94086
Monday, April 10, 2023
Special Meeting: Study Session - 5:30 PM | Public Hearing - 7:00 PM 7 P.M. PLANNING COMMISSION MEETING
CALL TO ORDER
Chair Pyne called the meeting to order at 7:40 PM.
SALUTE TO THE FLAG
Chair Pyne led the salute to the flag.
ROLL CALL
Chair Martin Pyne
Vice Chair Nathan Iglesias
Commissioner Daniel Howard
Commissioner John Howe
Commissioner Michael Serrone
Commissioner Neela Shukla
Commissioner Carol Weiss
Present: 7 -
PUBLIC HEARINGS/GENERAL BUSINESS
2. 23-0485 Forward a Recommendation to the City Council to Introduce an Ordinance to Add Chapter 19.71 of Title 19 of the Sunnyvale Municipal Code Creating a Residential Tenant Protections Programs (Study Issue) Affordable Housing Manager Ernie Defrenchi presented the staff report.
Commissioner Weiss confirmed with Affordable Housing Manager Defrenchi and Senior Assistant City Attorney Rebecca Moon that the proposed ordinance will go into effect by early to mid-June 2023 if it is approved by City Council.
Commissioner Weiss suggested that relocation expenses for no-fault evictions should be dependent on the length of a tenant’s residency. She also voiced her
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April 10, 2023Planning Commission Meeting Minutes - Draft opinion that perhaps these expenses should apply only to larger companies rather than smaller units, or duplexes, triplexes, and fourplexes in which the landlord also resides. Affordable Housing Manager Defrenchi responded that according to state law, landlords are exempt from providing tenant protections in the form of relocation if the tenant they are evicting is within the first twelve months of their lease. He added that this requirement does not apply to duplexes, including owner-occupied duplexes, or Accessory Dwelling Units (ADU).
Commissioner Serrone confirmed with Affordable Housing Manager Defrenchi that the proposed ordinance will apply to all developments regardless of how long they have had their certificate of occupancy.
Commissioner Serrone discussed with Affordable Housing Manager Defrenchi the amount of time in which a landlord must return a tenant’s deposit in the event of a no-fault just cause eviction.
Commissioner Serrone asked whether notices pertaining to the proposed ordinance will be offered in languages other than English. Affordable Housing Manager Defrenchi answered that such notices will include verbiage in languages other than English which will advise the reader that the notice is important and will require interpretation by a translator.
Commissioner Serrone inquired about how many days’ notice a landlord must provide a tenant they are evicting under the proposed ordinance.
Commissioner Serrone confirmed with Affordable Housing Manager Defrenchi that tenants may hire a lawyer and sue their landlord if they do not receive relocation assistance equal to two months of rent.
Commissioner Serrone and Affordable Housing Manager Defrenchi discussed feedback from the stakeholders’ outreach meeting regarding the consideration of relocation assistance in the form of moving costs in the event a landlord or property owner can provide a “like unit” within a reasonable distance of the current property.
Commissioner Serrone and Commissioner Howard received clarification from Affordable Housing Manager Defrenchi regarding the applicability of tenant protections as stipulated by state law.
Vice Chair Iglesias shared his concerns regarding the negative impacts that the
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April 10, 2023Planning Commission Meeting Minutes - Draft requirement to provide tenant protections would have upon homeowners who are not profiting significantly from their tenants’ rent. Affordable Housing Manager Defrenchi responded that the Planning Commission may recommend that the relocation assistance required of applicable landlords and property owners may be equivalent to one month of rent rather than two. He added that the staff recommendation is in alignment with the requirements of neighboring jurisdictions.
Vice Chair Iglesias confirmed with Affordable Housing Manager Defrenchi that the event in which a tenant is displaced because of a landlord or property owner moving a relative into the property would be considered a no-fault just cause eviction.
Affordable Housing Manager Defrenchi explained that protections for this type of eviction would apply regardless of how long a development has had a certificate of occupancy.
Commissioner Shukla proposed that the City should offer a web page or website that includes information on the proposed ordinance and lease documents that landlords may use containing verbiage associated with the proposed ordinance.
Affordable Housing Manager Defrenchi stated that there is a plan in place to accommodate such a request, and he noted that community outreach meetings have been held to educate tenants, property owners, and residents about the proposed ordinance and what it entails.
Chair Pyne advocated for the comprehensibility of the proposed ordinance so that tenants may understand their rights. He asked whether the lease addendum containing information on the proposed ordinance will be made available in languages other than English. Affordable Housing Manager Defrenchi answered that while this may not be the case, the addendum will include verbiage in languages other than English which will advise the reader that the addendum is important and will require interpretation by a translator.
Vice Chair Iglesias confirmed with Affordable Housing Manager Defrenchi that the proposed ordinance would not affect tenants or landlords already in a lease.
Vice Chair Iglesias asked whether landlords might be incentivized to evict tenants prior to the completion of their twelve-month lease to avoid providing relocation assistance. Affordable Housing Manager Defrenchi answered that this is not a concern.
Chair Pyne opened the Public Hearing.
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April 10, 2023Planning Commission Meeting Minutes - Draft Janet Murdock, Sunnyvale resident and landlord, shared her concerns regarding the proposed ordinance and its requirement that twelve-month leases must be renewed indefinitely. She also detailed the negative impacts that this would have upon mom-and-pop fourplex owners such as herself.
Agnes Veith, Sunnyvale resident and Livable Sunnyvale Board member, emphasized the importance of providing tenant protections, commended staff on their efforts on the proposed ordinance, and urged the Planning Commission to authorize landlords to pay relocation assistance equal to two months of rent in the event of no-fault just cause evictions.
Chair Pyne closed the public hearing.
Commissioner Howard responded to earlier comments made by Vice Chair Iglesias.
He also suggested that the lease addendum be made available in Spanish, if feasible. Lastly, he noted that the costs associated with relocation assistance would be proportional to the rent charged by landlords.
Commissioner Serrone asked whether a tenant and their landlord may agree to temporary relocation provisions that may contradict the relocation assistance required by the proposed ordinance. Affordable Housing Manager Defrenchi responded that this may be agreed upon as long as it is amenable to both parties.
Commissioner Serrone commented that it is worth considering different requirements depending on different property types or property owners. Affordable Housing Manager Defrenchi stated that the Planning Commission may make this recommendation if desired.
Commissioner Weiss proposed that the recommendations made by the Planning Commission exempt owner-occupied duplexes, triplexes, and fourplexes.
Vice Chair Iglesias spoke in agreement with comments made by Commissioner Serrone and Commissioner Weiss. He added that the proposed ordinance must consider the wide range of income levels across City residents.
Commissioner Shukla voiced her support of staff recommendations.
MOTION: Commissioner Howard moved and Commissioner Howe seconded the
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April 10, 2023Planning Commission Meeting Minutes - Draft motion to approve Alternative 2 – Recommend that City Council: Introduce an Ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Programs with a modification.
The modification is stated below:
1.) If feasible, the lease addendum containing applicable information on the proposed ordinance must be made available to tenants in Spanish.
Commissioner Howard acknowledged that state law is what is informing the proposed ordinance and reiterated the importance of tenant protections when considering the better financial position that a property owner is in.
Affordable Housing Manager Defrenchi advised that the City may not require landlords to provide leases and lease addendums to their tenants in Spanish.
Commissioner Howard responded that this modification be accommodated only if feasible.
Commissioner Howe noted that the proposed ordinance may negatively impact operators of smaller rental properties and inhibit others from becoming landlords.
FRIENDLY AMENDMENT: Commissioner Howe proposed a friendly amendment to specify that if temporary relocation of a tenant becomes necessary, the tenant and their property owner may sign a written agreement that will allow the tenant to waive their right to relocation assistance equal to two months of rent in exchange for other accommodations provided by the property owner (i.e., storage for their household items, differential rental payment for temporary lodging) until they may return to their unit under the same lease terms. Commissioner Howard accepted the friendly amendment.
FORMAL AMENDMENT: Commissioner Weiss moved and Commissioner Serrone seconded the motion to exempt owner-occupied duplexes, triplexes, and fourplexes from the tenant protections requirements posed by the proposed ordinance.
Commissioner Weiss stated that there is a difference between property owners who live in the properties they rent out and large real estate investors. For this reason, she emphasized the importance of distinct requirements for tenant protections offered by different property owners of various property types.
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April 10, 2023Planning Commission Meeting Minutes - Draft Commissioner Serrone spoke in agreement with comments made by Commissioner Weiss. He added that neighboring cities have a similar exemption in place already.
Commissioner Howard shared his concerns that such an exemption might further complicate the comprehensibility of the proposed ordinance especially among populations that do not speak English as a first language, if at all.
Chair Pyne voiced his agreement with concerns expressed by Commissioner Howard and stated he is not entirely in agreement with the categorization of neighboring cities.
The motion for the formal amendment failed by the following vote:
Yes: Commissioner Serrone
Commissioner Weiss
2 -
No: Chair Pyne
Vice Chair Iglesias
Commissioner Howard
Commissioner Howe
Commissioner Shukla
5 -
Chair Pyne summarized the original motion which is as follows:
MOTION: Commissioner Howard moved and Commissioner Howe seconded the motion to approve Alternative 2 – Recommend that City Council: Introduce an Ordinance to add Chapter 19.71 (Residential Tenant Protections Ordinance) to Title 19 (“Zoning”) of the Sunnyvale Municipal Code creating a Residential Tenant Protections Programs with modifications.
The modifications are stated below:
1.) If feasible, the lease addendum containing applicable information on the proposed ordinance must be made available to tenants in Spanish.
FRIENDLY AMENDMENT: Commissioner Howe proposed a friendly amendment to specify that if temporary relocation of a tenant becomes necessary, the tenant and their property owner may sign a written agreement that will allow the tenant to waive
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April 10, 2023Planning Commission Meeting Minutes - Draft their right to relocation assistance equal to two months of rent in exchange for other accommodations provided by the property owner (i.e., storage for their household items, differential rental payment for temporary lodging) until they may return to their unit under the same lease terms. Commissioner Howard accepted the friendly amendment.
Chair Pyne spoke in support of the motion and thanked staff for the hard work they invested in the proposed ordinance which provides both tenant protections and property owner rights.
The motion carried by the following vote:
Yes: Chair Pyne
Commissioner Howard
Commissioner Howe
Commissioner Serrone
Commissioner Shukla
Commissioner Weiss
6 -
No: Vice Chair Iglesias1 -
This recommendation will be forwarded to the City Council for consideration at the April 25, 2023 meeting.
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