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O1374 e e CA:RMM:lld084b/hpc City Council Meeting 6-24-86 Santa Monica, California ORDINANCE NUMBER 1374(CCS) (City Council series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING CHAPTER 8B TO ARTICLE IV OF THE SANTA MONICA MUNICIPAL CODE RELATING TO TENANT RELOCATION ASSISTANCE AND DECLARING THE PRESENCE OF AN EMERGENCY THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter aB is hereby added to Article IV of the Santa Monica Municipal Code to read as follows: CHAPTER 8B. TENANT RELOCATION ASSISTANCE. Section 4850. Definitions. For purposes of this Chapter, the following words and phrases shall have the following meaning: (a) Disabled Person. Any person who is receiving benefits from a Federal, state, or local government, or from a private entity on account of a permanent disability that prevents the person from engaging in regular, full-time employment. (b) Displaced Tenant. Any tenant who vacates a rental housing unit in the - 1 - e e City for any of the reasons set forth in Section 4851. (c) Landlord. Any owner, lessor, sublessor, or any other person entitled to receive rent for the use and occupancy of a rental housing unit, or any agent, representative or successor of any of the foregoing. (d) Rental Housing unit. A housing unit in the City of Santa Monica including a room in a single family home, hotel or motel, roominghouse or apartment, single family home, mobile home or mobile home space, trailer or trailer space, offered for rent. "Rental housing unit" does not include any uni t occupied pursuant to an innkeeper-guest relationship. (e) Senior citizen. Any person sixty-two (62) years of age or older. (f) Tenant. Any tenant, subtenant lessee, sublessee, or any other person occupying a rental housing unit pursuant to a rental housing agreement. section 4851. When Relocation Fee Required. A relocation fee shall be paid in accordance with the provisions of this - 2 - e e Chapter by any landlord who terminates a tenancy for any of the following reasons: (a) The landlord seeks to withdraw all rental housing units from the rental housing market as provided in Government Code section 7060 et ~eq. (b) The landlord seeks to recover possession of a rental housing unit pursuant to section l806(h) or section l80G(i) of the City Charter. (c) The landlord seeks to recover possession to demolish or otherwise remove a rental housing unit from residential rental housing use after having obtained all proper permits from the city. The fee required by this Chapter shall be due and payable to a displaced tenant whether or not the landlord actually utilizes the rental housing unit for the purposes stated in the notice of eviction. section 4852. Notice to Tenants Beinq Displaced. Any notice to terminate a tenancy which is served upon tenants for any of the reasons set forth in section 4851 shall be accompanied by the following on the form provided by the City: - 3 - e e (a) A wri tten statement of the rights and obligations of tenants and landlords under this Chapter. (b) A written statement informing the tenants that the required relocation fee has been placed in an escrow account or other account approved by the city. (c) A written statement that the landlord has complied with Section 4854. If the landlord has complied with section 4854 by obtaining City approval of a Displacement Plan, a copy of the Displacement Plan shall accompany the written statement. section 4853. Amount of Relocation Fee. The amount of relocation fee payable pursuant to the provisions of this Chapter shall be determined as follows: (a) The relocation fee shall be determined according to the size of the rental housing unit as follows: Housincr unit size Relocation Fee Bachelor or Single One Bedroom Two or More Bedrooms $2,000.00 $2,500.00 $3,000.00 (b) If the rental housing unit from which the tenant is being evicted is - 4 - e e furnished, $250.00 shall be deducted from the amount set forth in subdivision (a) of this section. For purposes of this subdivision, a rental housing unit shall be considered to be furnished if the landlord has provided substantial furnishings in each occupied room of the rental housing unit. (c) If one or more of the displaced tenants is a senior citizen or disabled person, or is a tenant with whom a minor child resides, who occupied the rental housing unit on or before the effective date of this Chapter, an additional $1,000 shall be added to the amount set forth in subdivision (a) of this section. section 4854. Additional Fee for Required Counseling. (a) For each rental housing unit from which tenants are displaced for any of the reasons set forth in section 4851, prior to service of a notice to terminate tenancy, the landlord shall pay a fee to the City in the amount of $250.00 to be used by City to pay for counseling or other assistance required by displaced tenants as a result of displacement. - 5 - e . (b) In lieu of the fee required by subdivision (a) of this section, a landlord may prepare a Displacement Plan which must be approved by the community and Economic Development Department prior to service of a notice to terminate tenancy. The Displacement Plan shall identify the special needs of the displaced tenants, identify the types of assistance that will be provided and include a commitment to pay for any such assistance. At the time of submitting the Displacement Plan to the city for review and approval, the landlord shall pay a fee to the City for such review and approval in the amount of $100.00 for each rental housing unit. Section 4855. DeDosit of Relocation Fee into Escrow. (a) The relocation fee required by this Chapter shall be placed in an escrow account prior to service upon any tenant of a notice to terminate tenancy for one of the reasons set forth in section 4851. All costs of an escrow opened pursuant to the provisions of this section shall be borne by the landlord. - 6 - e e (b) The escrow instructions shall provide that monies deposited in the escrow account shall only be distributed to displaced tenants in accordance wi th the instructions of the landlord and that no monies deposited in escrow may be returned to the landlord without the written approval of the city. (c) In lieu of deposit of the relocation fee in an escrow account, a landlord may deposit the fee in another account approved by the city. Section 4856. Payment to Displaced Tenants. (a) within two days of the written request by the tenant, the landlord shall deliver written instructions to the escrow holder to distribute all or a portion of the relocation fee to a third party providing moving or replacement housing to the tenant. The instructions shall direct the escrow holder to make the distribution within three days of delivery of the instructions. (b) within two days of the vacation of the rental housing unit, the landlord shall deliver written instruction to the - 7 - e . escrow holder to distribute the amount of the remaining relocation fee to the displaced tenant or displaced tenants of such rental housing unit. The instructions shall direct the escrow holder to make the distribution within three days of delivery of the instructions. (c) The entire fee shall be paid to a tenant who is the only displaced tenant in a rental housing unit. If a rental housing unit is occupied by two or more displaced tenants, the relocation fee shall be paid to all displaced tenants jointly. In no event shall a landlord be liable to pay a total amount more than the fee required by Section 4853 of this Chapter for one rental housing unit, and the landlord shall have no responsibility or liability for disputes between displaced tenants over allocation of the relocation fee between such displaced tenants. (d) In the event the landlord is required to commence a legal action to recover possession of the rental housing unit, the landlord may instruct the escrow holder to withhold from distribution to - 8 - e e the displaced tenant or displaced tenants of such rental housing unit the amount of any unsatisfied monetary jUdgment entered in such action in favor of the landlord. Upon the judgment becoming final, the city shall authorize the escrow holder to return to the landlord the amount withheld. section 4857. In Lieu of Fee. Ca) In lieu of the relocation fee Physical Relocation required by Sections 4853 and 4854, the landlord may, at the landlord's option, relocate the displaced tenant into a comparable replacement housing unit satisfactory to the tenant, in which event the landlord shall be liable only for the actual costs of relocating the tenant, except that this section shall not abrogate any rights already created by Section 1806 (h) (2) of the city Charter. A tenant shall not unreasonably wit.hhold approval of a comparable replacement rental housing unit offered by the landlord. For purposes of this section, a replacement unit shall be comparable to the existing unit if both units are - 9 - . e comparable in size, price, location, proximity to medical and recreational facilities, parks, community centers, shops, transportation, schools, churches and synagogues, amenities, and if the tenant desires, location of the rental unit in the city of Santa Monica. (b) If a tenant displaced for the reason set forth in section 4851(b), elects to occupy a non-comparable vacant unit on the same property from which that tenant is being displaced, pursuant to the terms set forth in Section 1806(h) of the City Charter, in lieu of the relocation fee required by Sections 4853 and 4854, the landlord shall only be liable for the actual costs of relocating the tenant. Section 4858. Remedies. (a) In any action by a landlord to recover possession of a rental housing unit for one of the reasons set forth in Section 4851, the landlord shall allege and prove compliance with this Chapter. (b) Any landlord who fails to provide monetary relocation assistance as required by sections 4853, 4854, and 4856, of this Chapter shall be liable in a civil - 10 - e e action to the tenant to whom such assistance is due for damages in the amount of the relocation fee the landlord has failed to pay, a civil penalty in the amount of $500.00, and reasonable attorney's fees and costs as determined by the court. (c) Any person violating any of the provisions or failing to comply with the requirements of this Chapter shall be guilty of a misdemeanor. (d) No landlord shall attempt to secure from a tenant any waiver of any provision of this Chapter. Any agreement, whether written or oral, whereby any provision of this Chapter is waived, shall be deemed against public policy and shall be void. section 4859. Relocation Due to Necessary Code Enforcement. If a landlord is required to recover possession of a rental housing unit in order to comply with local housing, health, or safety laws, or if a tenant is required to vacate a unit upon the order of any government officer or agency, the landlord shall be responsible for the reasonable - 11 - e e cost of temporary accommodations for the displaced tenant necessitated by such recovery of possession until such time as the tenant is restored to possession. In the event that the tenancy of such person is subsequently terminated for one of the reasons set forth in Section 4 8 5~ , the landlord shall pay the relocation fee required by Sections 4853 and 4854 and the landlord shall have no further obligation for temporary accommodations under this Section. Section 4860. Applicability of Relocation Assistance Requirements as Provided in this Chapter. (a) The relocation assistance requirements set forth in this Chapter shall apply to any tenant in possession of a rental housing unit on or after the effective date of this Chapter, including any tenant who has been served wi th a notice to terminate tenancy for one of the reasons set forth in Section 485l prior to the effective date of this Chapter. (b) The landlord shall comply with the requirements contained in Sections 4852, 4854, and 4855 within five days of - 12 - e. e the effective date of this Chapter in the event that a notice to terminate tenancy for one of the reasons set forth in section 4851 has been served on a tenant prior to the effective date of this Chapter. (c) Nothing in this Chapter shall limi t the amount of the relocation fee that the City council may require under Government Code Section 65863.7. section 4861. Inapplicability of Chanter to Certain Evictions. (a) Notwithstanding Section 4860, the requirements set forth in this Chapter shall not apply to any tenant whose tenancy is terminated pursuant to a lawful notice to terminate tenancy pursuant to Section 1806(h) of the City Charter served on or before June 10, 1986. (b) section 4859 shall not be applicable if the displacement and relocation of the tenant is the result of a fire not caused by the landlord, earthquake, or other natural disaster. Section 4862. Coordination with other Relocation Requirements. In the event that a landlord is required by any - 13 - e e other governmental body to provide relocation benefi ts to a tenant who receives a notice to terminate tenancy for one of the reasons set forth in section 4851, such benefits shall be offset against the amount of relocation benefits required by section 4853 . This Chapter shall not apply to any relocation plan approved by agreement by the Rent Control Board on or before June 24, 1986. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to affect the provisions of this ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional wi thout regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. - 14 - e . SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. SECTION 5. Pursuant to City Charter section 619(d), this ordinance shall take effect and be in full force immediately after the passage and adoption thereof. SECTION 6. This ordinance is declared to be an emergency measure adopted pursuant to the provisions of City Charter Section 615 and is necessary for preserving the public peace, health, and safety. The urgency for its adoption is so that the relocation assistance requirements take effect by July 1, 1986, the effective date of the Ellis Act, Government Code section 7060 et seq. The Ellis Act, if upheld by the courts, could effectively render portions of City Charter Section 1806 invalid or unenforceable, thereby subverting the eviction protections otherwise provided by the Rent Control Law. If landlords attempt to exercise the rights they claim are conferred upon them in the Ellis Act, an undetermined number of Santa Monica tenants could receive notices to terminate tenancy beginning July 1, 1986, resul ting in a serious hardship and housing emergency. The assistance that this ordinance requires landlords to provide to tenants subject to eviction due to no fault of their own is vital to the ability of those displaced tenants to find replacement housing. The failure to provide relocation benefits could result - 15 - . e in tenants being left homeless, greatly increasing demands on already limited social services in the city. APPROVED AS TO FORM: ~~. ROBERT M. MYERS City Attorney ~ - 16 - "0 --r t . . Adopted and approved this 24th day of June, 1986. el ~~) I2-Jl I _ / Mayor I hereby certi fy that the foregoIng OrdInance No. 1374 (CCS) was duly and regularly lntroduced at a meetIng of the City CouncIl on the 24th day of June 1986; that the saId Ordinance was thereafter duly adopted at a meeting of the City Council on the 24th day of June 1986 by the following Council vote: Ayes: Councilmembers: Conn, Epstein, Jennings, A. Katz, H. Katz, Zane and Mayor Reed Noes: Councilmembers: None AbstaIn: Councilmembers: None Absent: Councilmembers: None ATTEST: . ._. '!o 01. ....... "" .~ . ~ -"'" ,,-- '- -- i t2i~ ~9i:.;:-~ ~ ,,;:;.. - ~~~~ : _- Cit.~~k - . ': -.. .... - - ...---"- ---:. - '- -r '- -"- -