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O1765 CA:f\atty\muni\laws\barry\ellis.rev City Council Meeting 8-9-94 Santa Monica, California ORDINANCE NUMBER 1765(CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING THE TENANT RELOCATION ASSISTANCE ORDINANCE TO MAKE ITS PROVISIONS INAPPLICABLE WHEN A TENANCY IS TERMINATED PURSUANT TO THE ELLIS ACT AND THE DISPLACED TENANT DOES NOT QUALIFY AS A LOWER INCOME HOUSEHOLD AND DECLARING THE PRESENCE OF AN EMERGENCY WHEREAS, the Ellis Act, Government Code section 7060 et seq. contains provisions governing a local entity's authority to impose relocation assistance requirements on an owner who withdraws residential rental property from the market pursuant to the Act; and WHEREAS, the California Court of Appeal in Channinq v. city of Berkelev, 11 Cal. App. 4th 88, 14 Cal. Rptr. 2d 32 (1993) has interpret~d these provisions to prohibit a local entity from requiring an owner to provide relocation assistance unless the displaced tenant qualifies as a lower income household; and WHEREAS, the City Council is obligated to amend the City'S Tenant Relocation Assistance Ordinance, Santa Monica Municipal Code section 4.36 et seq. to conform to the appellate court's interpretation of the Ellis Act; and 1 WHEREAS, the divergence between the requirements of the City's Relocation Assistance Ordinance and the appellate court's interpretation of the Ellis Act is causing substantial confusion in the landlord-tenant community as to their respective legal rights and obligations; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. section 4.36.030 of Chapter 4.36, the Tenant Relocation Assistance Ordinance is amended to read as follows: (a) Except when subsection (b) of this section is applicable, any notice to terminate a tenancy which is served upon tenants for any of the reasons set forth in section 4.36.020 shall be accompanied by the following on the form provided by the City: (1) A written statement of the rights and obligations of tenants and landlords under this Chapter. {2) 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. (3) A written statement that the landlord has complied with section 4.36.050. If 2 the landlord has complied with section 4.36.050 by obtaining a City approval of a Displacement Plan, a copy of the Displacement Plan shall accompany the written statement. (b) When a landlord seeks to withdraw all rental housing units from the rental market and terminate all tenancies pursuant to Government Code section 7060 et seq., any notice of termination served on a tenant who the landlord has determined to be ineligible for relocation assistance because the tenant does not qualify as a lower income household as defined by Health and Safety Code Section 50079.5 shall be accompanied by a City form informing the tenant of the landlord's determination of ineligibility. Upon receipt of this notice, any tenant who disagrees with this determination shall immediately provide his/her landlord with documentation demonstrating eligibility if the tenant has not already done so. The landlord shall immediately review this information and reassess his/her determination of tenant ineligibility. If the landlord determines that the tenant is eligible, the landlord shall immediately 3 comply with the requirements of subsectio~ (a) of this Section. A landlord's failure to have provided the information required by subsection (a) of this section at the time of service of the notice of termination shall not be considered a violation of this Ordinance if the landlord's determination of tenant ineligibility was made in good faith and with due diligence. (c) A landlord shall comply with the provisions of this section within two (2) working days after receiving a tenant's notice to terminate tenancy as set forth in section 4.36.020(b) . SECTION 2. section 4.36.120 of Chapter 4.36, the Tenant Relocation Assistance Ordinance is amended to read as follows: (a) Notwithstanding section 4.26.110, 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 4.36.100 shall not be applicable if the displacement and relocation 4 of the tenant is the result of a fire not caused by the landlord, earthquake or other natural disaster. (c) Except as provided in Section . 4.36.030(b), the requirements set forth in this Chapter shall not apply to any t~nant whose tenancy is terminated or caused to be terminated on the ground that the landlord seeks to withdraw all rental housing units from the rental market as provided in Government Code section 7060 et seq. unless the tenant qualifies as a lower income household pursuant to Health and Safety Code Section 50079.5. SECTION 3. 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 effect the provisions of this Ordinance. SECTION 4. This Ordinance is declared to be an urgency measure adopted pursuant to the provisions of section 615 of the Santa Monica City Charter. It is necessary for preserving the public health, safety, or welfare as set forth in the Findings and Purpose section of this Ordinance. 5 SECTION 5. 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 any competent jurisdiction, such decision 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 and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 6. 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. This Ordinance shall be effective upon its adoption. APPROVED AS TO FORM: 6 Adopted and approved this 9th day of August, 1994. ~/~~ or I hereby certify that the foregoing Ordinance No. 1765 (CCS) was duly and regularly adopted at a meeting of The City Council on the 9th day of August, 1994; by the following Council vote: Ayes: Councilmembers: Abdo, Genser, Holbrook, Olsen, Rosenstein, Vazquez Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmenibers: Greenberg ATTEST: --4~~ &~