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SR-8-E (6) " . , .. .. . r !!) j _ ( au' " ). , , .' l . lE; Ei99~ CA:RMM:ll581jhpc city Council Meeting 2-13-90 Santa Monica, California STAFF REPORT TO: Mayor and city council FROM: city Attorney SUBJECT: Ordinance Amending Chapter 8B of Article IV of the Santa Monica Municipal Code Relating to Tenant Relocation Assistance At its meeting on January 30, 1990, the City council directed the City Attorney to expedi te its review of proposed revisions to the City's Tenant Relocation Assistance Ordinance. In response to that direction, the accompanying ordinance has been prepared and is presented to the City Council for its consideration. The ordinance has been revised in two main areas. First, the relocation fee amounts have been adjusted as reflected in the table below. Housing unit size Current Fee Proposed Fee Bachelor or Single $2,000 $2,500 $3,000 $3,000 One Bedroom $3,750 Two Bedroom* $4,250 Three Bedrooms* $5,250 Four or More Bedrooms* $5,500 *The current ordinance requires that a fee of $3,000 be paid for units with two or more bedrooms. 8-E FEB 1 j 193D - 1 - . . . . " As can be seen in the table below, the newly proposed relocation fee represents the sum of four cost components: 1. The differential between the average Maximum Allowable Rent ("MAR") and the average market rent. This component represents the difference in payment a displaced tenant must make when that tenant pays the first month's rent at a new unit. 2. Two times the average market rent. This component represents the security deposit that a displaced tenant will likely be required to pay in order to move to a market rate unit of the same size the tenant is vacating. 3. Moving expenses. This component represents the average cost to hire a professional moving company to move a displaced Santa Monica tenant to a unit in the Santa Monica/West Los Angeles area. 4. Utility start-up Costs. This component represents the average installation/hook-up charges for gas, water and power, and telephone service for a residential unit in the Santa Monica/West Los Angeles area. The following table shows the average maximum allowable rents in the City as well as the average rents for market rate units in the city: - 2 - ~ . . Average Average # Bedrooms MAR* Market Rent** 0 Bedroom $380 $ 950 1 Bedroom $416 $1,186 2 Bedroom $558 $1,357 3 Bedroom $662 $1,684 4 Bedroom $698 $1,784 *Source: Rent Control Board. **Source: Community and Economic Development Department. The following table shows the relocation fee cost components: # Bedrooms Difference Between Averaqe MAR and Average Market Rent Security Deposit* (2x Market Rate) o $ 570 $ 770 $ 799 $1,900 1 $2,372 2 $2,71.4 3 $1,022 $1,086 $3,368 $3,568 4 Average Moving Costs** $288 $360 $432 $504 $576 utility startup Costs*** $153 $178 $1.98 $218 $238 Total Relocation Fee (Rounded) $3,000 $3,750 $4,250 $5,250 $5,500 *State law allows a maximum security deposit of two months' rent for an unfurnished unit. **Based on rates quoted by five local moving companies. Rates include two movers and one van for between four hours for a 0 bedroom unit move to 8 hours for a 4 bedroom unit move. ***Based on rates quoted by Southern California Gas Company (costs range from $15 for a 0 bedroom unit to approximately $100 for a 4 bedroom unit), General Telephone Company ($75, assuming it is necessary to install GTE equipment at the unit), and Department of Water and Power ($13 application fee and $50 deposit; the latter assumes no prior DWP account). - 3 - . . In addition to the relocation fee set forth above, if a displaced tenant is a senior citizen, disabled person, or tenant with whom a minor child resides, an additional $1,000 fee is required. This does not reflect a change from the current ordinance. The second maj or change involves extension of the relocation ordinance to cover tenants who vacate their units prior to receipt of a notice to terminate tenancy but subsequent to receipt of a written notice from either the landlord or the Rent Control Board stating that their landlord has filed a removal permit application or a notice of intention to withdraw units pursuant to the Ellis Act with the Rent Control Board. In addition to these major modifications, clarifying language has been added where necessary and is underlined in the attached ordinance. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced for first reading. PREPARED BY: Robert M. Myers, City Attorney Laurie Lieberman, Deputy City Attorney Barry Rosenbaum, Deputy City Attorney - 4 - . . CA:RMM:lld582jhpc City Council Meeting 2-13-90 Santa Monica, California ORDINANCE NUMBER (city Council series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING CHAPTER 8B OF ARTICLE IV OF THE SANTA MONICA MUNICIPAL CODE RELATING TO TENANT RELOCATION ASSISTANCE THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 8B of Article IV of the Santa Monica Municipal Code is amended 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. - 1 - . . (b) Displaced Tenant. Any tenant who vacates a rental housing unit in the ci ty 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) Minor Child. Any person younger than eighteen (18) years of aqe. (e) Rental Housinq 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. tlRental housing unitU does not include any unit occupied pursuant to an innkeeper-guest relationship. (f) senior citizen. Any person sixty-two (62) years of age or older. (q) Tenant. Any tenant, subtenant, lessee, sublessee, or any other person occupying a rental housing unit pursuant to a rental housing agreement. - 2 - . . SECTION 4851. Required. (a) A relocation fee shall be paid in accordance with the provisions of this Chapter by any landlord who terminates or causes the termination of a tenancy for When Relocation Fee any of the following reasons: (1) The landlord seeks to withdraw all rental housing units from the rental housing market as provided in Government Code sections 7060 et seq. (2) The landlord seeks to recover possession of a rental housing unit pursuant to Section 1806 (h) or section 1806(i) of the city Charter. (3) 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. (b) A relocation fee shall be paid in accordance with the provisions of this Chapter to a displaced tenant who serves a landlord with a notice to terminate tenancy after having received written notice from either the landlord or the Santa Monica Rent Control Board that the - 3 - . . landlord has filed a Notice of Intent to Withdraw Residential Rental Units pursuant to Government Code section 7060.4 and Santa Monica Rent Control Board Regulation 16002(a) or an Application for Removal Permit pursuant to Santa Monica Charter section 1803(t). (c) 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 Being Displaced. (a) 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: (1) A written statement of the rights and obligations of tenants and landlords under this Chapter. (2) A written statement informing relocation the tenants that the required fee has been placed in an - 4 - . . escrow account or other account approved by the city. (3) 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. (b) A landlord shall comply with the provisions of this section within two (2) workinq days after receiving a tenant's notice to terminate tenancy as set forth in section 4851(b). 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 determined according to the size of rental housing unit as follows: Housing Unit size Relocation Fee Bachelor or Single $3,000.00 One Bedroom $3,750.00 Two Bedroom $4,250.00 Three Bedroom $5,250.00 Four Bedroom $5,500.00 be the - 5 - . . (b) If the rental housing unit from which the tenant is being evicted is furnished, Two Hundred Fifty Dollars ($250.00) shall be deducted from the amount set forth in subsection (a) of this section. For purposes of this subsection, 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, and the displaced tenant(s) occupied the rental housing unit on or before the effective date of this Chapter, an additional One Thousand Dollars ($1,000.00) shall be added to the amount set forth in subsection (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 (a), prior to service of a notice to terminate tenancy, the landlord shall pay - 6 - . . a fee to the City in the amount of Two Hundred Fifty Dollars ($250.00) to be used by ci ty to pay for counseling or other assistance required by displaced tenants as a result of displacement. (b) In lieu of the fee required by subsection (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 One Hundred Dollars ($100.00) for each rental housing unit. SECTION 4855. Deposit of Relocation Fee into Escrow. (a) The relocation fee required by this Chapter shall be placed in an escrow account prior to service by a landlord - 7 - . . upon any tenant of a notice to terminate tenancy for one of the reasons set forth in section 4851(a) or within two (2) working days of service by a tenant upon a landlord of a notice to terminate tenancy as set forth in Section 4851(b). All costs of an escrow opened pursuant to the provisions of this Section shall be borne by the landlord. Escrow instructions shall be approved by the city. (b) The escrow instructions shall provide that monies deposited in the escrow account shall only be distributed to displaced tenants in accordance with the instructions of the landlord and that no monies deposited in escrow may be returned to the landlord wi thout the written approval of the city. (c) In lieu of deposit of the relocation fee in an escrow account, a landlord may deposi t the fee in another account approved by the city. SECTION 4856. Tenants. (a) within two (2) workinq days of the written request by the tenant, the landlord shall deliver written payment to Displaced - 8 - . . 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 (3) workinq days of del i very of the instructions. (b ) within two (2) workinq days of the vacation of the rental housing unit, the landlord shall deliver written instruction to the 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 (3) workinq 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 (2) 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 - 9 - . . 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 has been required to commence a legal action to recover possession of the rental housing unit and iudgment in favor of the landlord has been entered prior to the tenant's vacation of the unit, the landlord may instruct the escrow holder to wi thhold from distribution to the displaced tenant or displaced tenants of such rental housing units 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. If no monetary judgment has been entered prior to the tenant's vacation of the uni t, the landlord must authorize the distribution of the entire relocation fee in accordance with section 4856. - 10 - . . SECTION 4857. Physical Relocation In Lieu of Fee. (a) In lieu of the relocation fee 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 l806(h) (2) of the city Charter. A tenant shall not unreasonably withhold 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 comparable in size, price, location, proximi ty 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(a) (2) - 11 - . . elects to occupy a noncomparable 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) If 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 civil 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 Five Hundred Dollars ($500.00) and reasonable attorneys' fees and costs as determined by the court. (c) Any person violating any of the provisions or failing to comply with the - 12 - . . 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 housing, health, or safety laws of the state of California or the City of Santa Monica, 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 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 4851, the landlord shall pay the relocation fee - 13 - . . required by Sections 4853 and 4854 and the landlord shall have no further obI igation for temporary accommodations under this Section. SECTION 4860. Applicability Requirements of as Relocation Assistance 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 the Ordinance amendinq this Chapter, including any tenant who has been served with a notice to terminate tenancy for one of the reasons set forth in section 4851 (a) prior to the effective date of the Ordinance amendinq this Chapter and has not yet vacated the unit. (b) The landlord shall comply with the requirements contained in Sections 4852, 4853, 4854, and 4855 within five (5) days of the effective date of the Ordinance amending this Chapter in the event that a notice to terminate tenancy for one of the reasons set forth in Section 4851{a) has been served on a tenant or a notice to terminate tenancy - 14 - . . pursuant to Section 4851 (b) has been served on a landlord prior to the effective date of the Ordinance amendinq this Chapter. In the event that on the effective date of this Section, a landlord has complied with the provisions of section 4855 previously in effect, but has not yet received a written request from a tenant for distribution of the fee pursuant to Section 4856, the landlord shall place in escrow the addi tional amount of relocation fee required by section 4853 within five (5) working days of the effective date of this Section. (c) Nothing in this Chapter shall limit the amount of the relocation fee that the City Council may require under Government Code Section 65863.7. SECTION 4861. Inapplicability of Chapter 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. - 15 - . . (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 other governmental body to provide relocation benefits 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 any competent - 16 - ~ . . . jurisdiction, such decision shall not affect the validlty 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 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. This Ordinance shall become effective after 30 days from its adoption. APPROVED AS TO FORM: ~ Y-/\. ROBERT M. MYERS City Attorney '0-- - 17 - . . INFo J~!?v n'l J G lAWRE:\CE & HARDING A Plli'OF:::SS O","A.. CCl;!j;;>:):;;:4T1C"" ATTC~.....EYS AT LAW 1250, 5 XTH STR~E:T SUI~E 30;:' $A.....-A IVO"lICA c,o.LIFORN A 9C401 "':'"ELE ~-C..... E f2 3} 393-1007 ....e::..e:CGj:lIEq- r213~ 458"'959 c:.....::; S-C='--E.R 'I HAq~:"""G .:lICHAi;O A :""'WRENCE KEI\I.... e:TH L I'('JTCr-IE ~ Io{R S-I.... H...-E!5A~D February 13, 1990 :)CN-";:A ~ .-J-.'A~i::O!EN KE'JI N V .....OZAL E_ ZA5::-... A ST::R.... S-Eq~AN _ STAcey "iIAND DELIVERED Santa Monica City Council 1685 Main Street Santa Monica, CA 90401 Re: Item No. BE Tenant Relocation Assistance Ordinance Dear Councilmembers: This firm has only recently received a copy of the city staff Report regarding the proposed amendment of Chapter BB of Article IV of the Santa Monica Municipal Code relating to tenant relocation assistance. We have not had ample opportunity to review the proposed amendment. Therefore, we request that you continue this item to your next IDeeting to enable our firm and other members of the public to adequately review the proposed ordinance and provide any pertinent comments. Sincerely yours, C~~~.~~ Christopher M. Harding of LAWRENCE & HARDING a Professional Corporation ------