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C~ti Counc~l Meet~ng 7-10-84 Santa Mon1.ca, Ca1iforn1.a
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SUPPLE~ffiNTAL STAFF REPORT NUMBER 1
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TO: Mayor and City Council
FROM: C1.ty Attorney
SUBJECT: Proposed Amendment to Rent Control Law
INTRODUCTION
Since the preparat~on_ of the Staff Report containing the
C1.ty Attorney's proposed amendments to the Rent Control Law, the
City Attorney has met w1.th Rent Control Board Cornm1ssioner Penny
Nagler, Board Admlnistrator Howell Tumlin, and Board Attorney
Joel Levy. The City Attorney recommends that certain mod1.fica-
t10ns to our proposals be made. These changes are briefly
descr1bed below. The text of the proposed Charter Amendment, as
mod1.f1ed, 1S attached as Exhibit liB" .
PROPOSED MODIFICATIO~S
l. Le~1slat1.ve Find1ngs. It is recommended that City
Charter Sect10n 1800, whl.ch st a tes the purpose of the law, be
amended to chang e the term "fa1r return on investment" to "fair
return. " Th1.S 1.5 cons1stent with the suggested changes to
S ect10n 1805 (e) .
2. Ch11d Care Exemption. We suggest modif1catl.on of
Section 1801(5) so that the third sentence read s "Th~s exempt1.on
shall on1" ~l.JP J Y to units as they become vacant and shall only
opera"':.e a 10,., the specified use w1thout the necessity of ob-
ta1n1fg ! e; .)vdl permit under this Artl.c1e."
3. Board Personnel. A mod1ficat1on to Section 1802(b) 1.S
suggested so that the Board has responsibl.lity for decl.sions to
lay:off and recall its employees. It is also suggested that lan-
guage be ad ded to specl.fy that Board personnel regulatl.ons
prevail over l.ncons1. stent provisions of the Municl.pal Code. As
modl.fied, Sectl.on 1B02(b) would read:
(b) Personnel. Except for the
elected or appointed Commissioners, the
Adm1nistrator and attorneys employed to
represent or advl.se the Board, all
employees of the Board are within the
1 4dJ.ft, rqlCD#/
JUL 10 11M
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classified civJ.l service of the City.
The Board shall appo~nt an Administrator
to adminl.ster and supervise the exerC1.se.
of J. ts powers and duties, who shall be'
d1.rectly responsl.ble to the Board. All
employees of the Board, except the
i Adminl.stratar and attorneys, shall be
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h1.red, termJ.nated, suspended, and demoted
.1n accordance with the prov.1s.1ons of
ArtJ.cle XI of the Charter and implement-
~ng provis~ons of the Munic~pal Code.
The Board shall classify employee posi-
tions, establish employee salarJ.es and
benef1ts, evaluate the performance of its
employees, and be ~esponsible for the
layoff and r~call of its employees, pur-
suant to resulations and procedures that
it establishes. The Board may enter into
and approve a Memorandum of Understanding
wi th repr ese nta ti ves of its employees
concernJ.ng their wages, benefi ts, hours
of work, and terms and condi tions of
employment in accordance WJ.th state law.
The C1 ty Council shall have no power to
aboliSh posi tJ.ons established or classi-
fied by the Board under thJ.s Article,
notwl.thstandJ.ng any other section of this
Charter. Any regulation, polJ.cy, ~
t-1emorandum of Understand1ns of the Board
consJ.stent with thl.s subsect10n shall
preva11 over inconsl.stent prov1.sions of
the Municipal Code and other ordJ.nances
~ resolutions of the City Councl.l.
4. Board Contracts. A modification is suggested so that
the Board would have sole authority to employ all types of
professional consultants. The second sentence of Section 1802{d)
would read: "ProvJ.ded, however, that the Board shall have sole
and final author1ty 1:.0 f~mploy attorneys, legislative lobby~sts,
and other professJ.o lals _ and to approve contracts for such
profess1onal s,:rvices. or Given the current exceptions to competi-
tJ. ve b1dding in the to':.'ln.l.C1-pa 1 Code, the language proposed 1n our
1nit1al staff report effectively provided the exempt10n specif1ed
in ~he revised language. The purpose of the revJ.sed language is
to insulate the Board from poss1ble future changes in ord1nances
and resolut1ons regulating compet1tive b1ddingr it would not ef-
fect a change in current procedures.
5. Meet1n9S' It is suggested that Section l803(h) be
modified by replacing the second and th1rd sentences wi th the
fOllowing sentence: "All regular and special meet1ngs shall be
called and conducted in accordance WJ. th state law."
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6. Rent Increases. We suggest a minor modification to
Sect~on 1 BO 5 ( E.' ) ; the phrase "necessary and reasonable" sho u Id be
inserted before the phrase "capital improvement. "
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7. Rent Increases for Vacant Units. The intent of new
Sect~on l805(f){3} ~s that no rent ~ncrease can be taken if, at
~he t1me of the rent increase not1ce, any unit on the property 15
vacant and has been vacant for three consecut~ve months. This
intent 1S clarified by the addition of the words "is and" to the
landlord's cert1ficate required under the se ction.
B. Changes Declarat~ve in Nature. It is suggested that a
new Sect10n 1814 be ad ded to spec1fy that a charter change that
incorporates an ex 1st1ng Board regulation 1S declarat1ve of ex-
i st 10g law. The proposed lang uage is as follows:
Sect10n 1814. EX1st1ns Board
Pract1ces. To the extent that the amend-
ments to Article XVIII adopted at the
same time as th is Section incorporate
rules, regulat1ens, polic1es, and prac-
tices of the Rent Control Board eXl.sting
on the date of the adopt1on hereof, such
amendments are declarat1ve of eX1sting
law and do not impose any new requ1re-
ments or limit any exist~ng ones.
9. Typograph1cal Changes. Several ml.nor changes have been
made in text and under11n1ng to correct typographical and edl.ting
errors.
RECOMMENDATION
It is respectfully recommended that the City Council direct
the C1ty Attorney to prepare a resolution submitting the proposed
Amendm ent to Art~cle XVIII of the City Charter for the approval
of the voters, as modif1ed and shown in Exhibit "B", "Ill. th such
chang es as the City Council may direct.
PREPARED BY: Robert M. Myers. . City Attorney
Stephen S. Stark, Assistant City Attorney
Karl M. Hanhel.ffi, Deputy C~ty Attorney
- Marsha J. Moutrl.e, Deputy City Attorney
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EXHIBIT B
(This exhibit contains all the changes noted on Exhib~t A.
New changes are noted as follows: Addit~ons are
CAPITALIZED; delet10ns are horizontally e~efs~~~ek.)
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TEXT OF PROPOSED CHARTER AMENDMENT.
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, SECTION 1- Sect~on 1800 of the City Charter is amended to
r<e ad as follows:
Sect~on 1800. Statement of Purpose. A grow~ng shortage of
hous~ng un~ts result~ng ~n low vacancy rate and rapidly ris~ng
rents exploltlng this shortage const1tute a ser10US hous~ng
problem affect1ng the l1ves of a substantial portion of those
Santa Monlca residents who reside in resident~al housing. In
add~tion, speculat10n 1n the purchase and sale of existlng
res~dentlal hous~ng unlts results in further rent increases.
These cond~tions endanger the public health and welfare of Santa
Monica tenants, especially the poor, minorities, students, young
famill.es, and senior citizens. The purpose of this Article,
therefore, 1S to allevlate the hardshl.p caused by this serious
hous~ng shortage by establlshlng a Rent Control Board empowered
to regulate rentals in the City of Santa Monica so that rents
wlll not be increased unreasonably and so that landlords will
recelve no more than a fal.r return e~-~hei~-inves~fflen~.
In order to accomplish th1S purpose, thlS Artl.cle provides
for an elected Rent Control Board to ensure that rents are at a
fair level by requlrlng landlords to Justify any rents in excess
of the rents in effect one year prior to the adoption of thLs
Article. Tenants may seek rent reductions from the rent 1.n
effect one year prior to the adoption of this Article by
establ1shlng that those rents are excessive. In addition to
giving tenants an opportunity to contest any rent l.ncrease, this
Art1cle attempts to provide reasonable protect~on to tenants by
controlling removal of controlled rental units from the housing
market and by requlrlng Just cause for any eviction from a
controlled rental unlt.
SECTION 2. Section 1801 of the City Chart~r is amended to
read as follows:
Sectlon 1801. Definitl.ons. The following words or phrases
as used 1n th1S Article shall have the followlng meanings:
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( a) Board: The term "Board" refers to the elected Rent
Control Board established by thl.s Article.
( b) Commlssioners: The members of the Board and Interim
Board are denominated Commissioners.
( c) Controlled Rental Unl.ts: All residential rental units
in the Clty of Santa Monica, 1ncluding mobile homes, and mobile
home spaces, and trailers and trailer spaces, except those found
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by the Board to be exempt under one or ~ of the followin9
prov~sions:
(I) Rental units in hotels, motels, inns,- tourist
homes and rooming and board~ng houses which are rented primarily
to transient guests for a per10d of less than fourteen (14) days.
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l (2) Rental un~ts 1n any hospital, convent,
monastery, extended medlcal care faclllty, asylum, non-proflt
home for the aged, or dormitory owned and operated by an
instltutlon of higher education.
(3) Rental un1tS Which a government unit, agency or
author1ty owns, operates, manages, or ~n Wh1Ch governmentally
subsidlzed tenants reside only if appl1cable Federal or State law
or admin1strative regulation specially exempt such unlts from
munlcipal rent control.
(4) Rental units in owner-occupied dwellings with no
more than three (3) units. For purposes of this section:
~ The term "owner" means ~ natural person
wh~ ~~ at least ~ fifty 1?O} per cent ownership lnterest 1n the
EUlldlng and resIdes on the property as hlS or her prlnclpal
place of res~dence.
(il) An exemption under this sectlon shall
~~plre EY operatlon of law when the owner ~~ases to reside on the
Eroperty as h~s ~~ her prlnc~pa! place of residence; thereafter,
~ll units on the property shall be sUbJect to all provls~ons of
thlS Artlcle.
(11i) Notwlthstand1n9 any other provision of
!his Article, ~ exemption under thlS section shall not excuse
!he owner from the requirement of obtalnln9 ~ permlt to remove
~~ unlts from the rental housins market in accordance wlth thlS
Artlcle.
(5) Rental units and dwellings constructed dft~r the
adoption of this Article; thlS exemption does not apply t) unlts
created as a result of conversion as opposed to ne... c...""'n:st cuction.
(6) Where ~ unit is actually used for purposes of
providing, on a Eon-~rofit E~sis, Chlld care or other resldential
soc~al serVlces in accordance w1th applicable laws. ThlS
exemptlon shall exp1re when the use u~on which exemption is based
ceases. Th1s ~xemptlon shall only apply t~ units ~ka~-a~e AS
THEY BECOME vacant a~-~he-t~me-e~-a~~~:ea~~efl7 and shall only
~Eerate to allow the specified use w~thout the necess1ty of
~bta1nln~ ~ remova! permit under this Art1cle. Th1S exemption
shall no~ be construed to authorize the eviction of any tenant
Eor to authorize the charging of rent in excess of that permltted
under thlS Article. The Board may adopt regulatlons to determlne
whether a unlt qual1fles for ~ exemptlon under th1s sect10n.
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(7) Exemptions are not automatic but shall pe
granted ~ the Board upon applicati.on EY. the owner pursu<:.nt to
Board rules, provided that if the Board does not act upon a
~ompleted appl1catlon for ~xemption with1n ninety (90} days of
lts fll1n~ 1t shall be deemed approved.
( d) Houslng Service: HOUS1h3 serv lces include, but are
not lim1 ted to repa lrs, maintenance, pal.ntlng, providing light,
hot and cold water, elevator service, w1ndow shades and screens,
storage, In tchen, ba th and laundry faClll.tles and privl1eges,
Janitor services, refuse removal, fur nl.sh1.ng s, telephone,
parklng, and any other benef1.t, pr1vl.lege or faci11ty connected
w1th the use or occupancy of any rental unit. Services to a
rental un1.t shall lnclude a proport1.onate part of services
provided to cammon fac1.ll.tles of the bU1.1ding 1.n which the rental
unlt 1S conta1.ned.
( e) Landlord: An owner, lessor, sublessor or any other
person entitled to rece1.ve rent for the use and occupancy of any
rental unit, or an agent, r~presentative or successor of any of
the foregolng. -
(f) Rent: All per10dic payments and all nonmonetary
conslderation including but not limited to, the fair market value
of goods or services rendered to or for the benefit of the
I and lord under an agreement concern1ng the use or occupancy of a
rental Uhlt and premises l.ncludl.ng all payment and consideratlon
demanded or pal.d for parking, pe t s , furniture, subletting and
securlty deposits for damages and cleaning.
(g) Rental Housing Agreement: An agreement, oral, written
or implled, between a landlord and tenant for use or occupancy of
a rental unit and for housl.ng services.
(h) Rental Units: Any bu~lding, structure, or part
thereof, or land appurtenant thereto, or any other rental
property rented or offered for rent for living or dwelling house
un1.ts, and other real properties used for 11.Vlng or dwell~ng
purposes, together w1.th all housing services connected with use
or occupancy of such property such as common areas and
r ecrea tl.onal fac~litl.es held out for use by the tenant.
( i) Tenant: A tenant, subtenant, lessee, sublessee or any
other person entl.tled under the terms of a rental hous1.ng
agrlEement to the use or occupancy of any rental un:Lt.
( j) Recognized Tenant Organl.Zatlon: Any group of tenants
residing 1.n controlled rental units in the same building or in
different buildings operated by the same management company,
agent or landlord, who requests to be so designated.
(k) Rent Ceiling: Rent ceiling refers to the limit on the
maXl.mum allowable rent Which a landlord may charge on any
controlled rental unit.
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( 1) Base Rent Ceiling: The maximum allowable rent
establ~shed in Section 1804(b).
(m) Property: All rental un~ts on ~ parcel or -,lot ~
cont1suouS parcels or lots under common ~wn~rsh1p.
l SECTION 3. Sect10n 1802 of the C1ty Charter is amended to
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read as follows:
$e~ti~~ll$~tl I 11aietimlie~tl~~att~11.~atd. JJrd>ll<lt~tli1h.~
tbitiyl(~~}ld~Y$lattetlitela~d>Fii~ald>!li~i$l!tii~l~J It~tl~ltt
tv~t~ilI4!li~~I~ittld>tl$~~i~I~~~i~al$~~111~Fw~i!tlaltit~l$emi4t
t~tetimlie~tl~cmitd>ll$c.tdj I 1~d>I~et$~~ls~~111~~I~wwvi~t~dlt~li~e
t!ietiml~~~il~c~ttd>11.v<lt~ldil~$$lbeld>tI4teli.I~I~ultlq~~liti.d
e144i~tld>tli~.I~ityl~!I$~~t~lmvmi~al I Itieltmietiml'vatdl$~.11
e*4t4i'elt~~ltvlld>wi~IIF~w~t$I.~dld~ti~$lu~iillti4It$t~a~~tl$~at~
i$lel~ditdli~la~dd>t~a i~lwit~tlbeljtd>+i$l~a$Id>!I$e~ti~~ll$~$1 (dl
.ndr4'$~m$$[d>ftl~~1
(1t I It~4mit4Ite4i$tttii$~I$fl~111~~dtt~11.~lt.~i'1Idiii'
~~d~tl$e~ii~nll$~$(~}!
tit I l$e4*I~timi!all~emaltl'$lundetl$e~iid>~11$1~l
(~) I l$e$*li~iu~~iit~lt.1i~tl~~~~tl$~~ti~~ll$lll
Sect~on 1802. Inte9rity and ~utonomy of Board. The Rent
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Control Board shall be ~ integral Eart of the 90vernment of the
C~ty, but shall exerc~se its powers and dut~es under this Art~cle
independent of and w~thout 1nterference from the C1ty Council,
C).ty Manager, and City Attorney_ W~th respect to the internal
~r9an1zation and affa~rs of the Board:
(a) Budget. The Board shall, prior to the beginning of
~ach fiscal year, ~uly ~ hold ~ publ1c h7arin~ on,a proposed.
Eudset and ~dopt ~ annual budget. The C1ty Counc1l and the C1ty
Mana~er shall have no authority to oversee, s~Ferv1se, or approve
!91S budset. ~po~ final adoption, the budset shall be in effect
for theens~1ng f1scal ye~r and the amounts stated therein shall
be and become appropriated by the Board for ~~e respective
obJects and purposes t~erein specified. ~t any meet1ng after the
~dopt1on of the budge~ the Board may amend or supplement the
bud~et ~ the aff1rmative votes of at least three members.
C~pies of the ~dopted budset and any amendments or supplements
~hall be f1led W1th the City Clerk, City Controller, and City
Manaser. Necessary adJustments to qity administrative procedures
shall be made.
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(b) Personn~l. ~x~ept for ~he elected ~ appointed
Commiss~oners, THE Administrator, and attorneys employed to
represent or adv1se the Board. all employees of the Board are
withi? the-classified civil service of the City. The Board shall
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appo~nt an Administrator to administer and ~upervise the exercise
~ its powers and duties who shall be directly respons~ble to the
Board. All employees of the Board, except the Administrator ~
attorneys, shall be ~ired, terminated, su~pended. AND demoted,
~a~6-effT-a~a-reea~~e~ in accordance with the provisions of
Article XI of the Charter and implementing provisions of the
< .Munic~pal Code. The Board shall ~lassify ~mployee positions.
< establish ewployee salaries and benefits, a~d evaluate the
performance of ~ts eITployees~ND BE RESPONSIBLE FOR THE LAYOFF
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AND RECALL OF ITS EMPLOYEES, PURSUANT TO REGULATIONS AND
PROCEDURES THAT IT ESTABLISHES. The Board may' enter into and
approve ~ MeMorandum of Understand1ng with representat~ves of its
e~ployees concerning their wages, benef~ts, hours of work, and
terms and condit~ons of employment in accordance with state law.
The C1ty Council shalr-have no power-to abolish pos~t~ons ----
establ1shed or classified br the Board under th~s Art~cle,
notw1thstandin9 any other section 2! this Charter. ANY
REGULATION, POLICY, OR MEMORANDUM OF UNDERSTANDING OF THE BOARD
CONSISTENT WITH THIS SUBSECTION SHALL PREVAIL OVER INCONSISTENT
PROVISIONS OF THE MUNICIPAL CODE AND OTHER ORDINANCES OR
RESOLUTIONSIDP THE CITY COUNCIL. --- --
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(c) Board Legal Work. Legal staf~ hired by the Board
shall represent and adv1se the Board, its Commiss1oners, and its
staff ~ any C1V1l matters, actions, or proceedings in which the
Board, its Co~missioners, ~ 1ts staff, in ~ by reason of the~r
off1c~al capac1ty, ~ concerned ~ ~ ~ party. The Board may,
in its sole discretion, and without approval of the City Council,
reta1n private attorneys to furn1sh legal advice 2E
representation in part1cular matters, actions ~ proceedings.
(d) Contracts and Purchases. The Board shall complr w1th
the provisions of the C1ty Charter providing for ~ central1Z~
purchas1ng ~sten and compet1t1ve b~dding, and shall procure
~oods and serV1ces ~ do other City agencies. Provided, however,
that ~he Board shall have ~ole and final ?uthority to EMPLOY
ATTO&~EYS, LEGISLATIVE LOBBYISTS, AND OTHER PROFESSIONALS, AND TO
APPROVE contractS wi~h-a~d-emp~ey-~ne FOR SUCH profess1onal--- --
serV1ces. ~~e~~6~~~-a~~or~ey~-a~d-%e~isla~i~e-le58yis~sT
(e) Conforming Regulations. If any portion of this
Article is declared 1nvalid ~ unenforceable by decision of ~
court ~ competent iurisd~ction or rendered invalid or
unenforceable EY state or federal lesislation, the Board shall
n~ve authority to enact replacement regulations consistent with
the intent and purpose of the invalidated provision and
applicable law. Such replacement regulations shall supercede
invalidated or unenforceable provisions of this Article and
1nconsistent ordinances 2! the Citz Council to the extent
n~cessary to resolve any 1n~onsistency.
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SECTION 4. section 1803 of the City Charter is amended to
read as follows:
Section 1803. Permanent Rent Control Board. .
(a) Compositl.on: There shall be in the City of Santa
t Monica a Rent Control Board. The Board shall consist of five
l elected Commissioners. The Board shall elect annually as
chairperson, one of its members to serVe in that capac1ty.
(b) Eligibility: Duly qualified electors of the City of
Santa Monica are el~gible to serve as Commissioners of the Board.
(c) Full Disclosure of Holdings: Candidates for the
position of Commissioner shall submit a ver~fied statement
listing all of thel.r interests and dealings in real property,
including but not limited to its ownership, sale or management,
during the previous three ( 3) ye ars .
( d) Election of Commissioners: commissioners shall be
elected at general municipal elections in the same manner as set
forth in Article XIV of the Santa Monica Charter, except that the
first Comml.ssioners shall be elected at a specl.al municl.pal
election held wl.thin nl.nety (90) days of the adoption of this
Article. The elected Commissioners shall take office on the
first Tuesday following their election.
(e) Term of Off~ce: Commissl.oners shall be elected to
serve tenns of four years, beginnl.ng on the first Tuesday
following thel.r election, except that of the first fl.ve
Comml.ssioners elected in accordance with Section l803(d), the two
Comml.ssioners receiving the most votes shall serve until Aprl.l
15, 1985 and the remaining three Commissioners shall serve untl.l
April 18, 1983. Commissioners shall serve a maximum of two full
terms.
(f) Powers and Dutl.es: The Board shall have the following
powers and duties:
( 1 ) Set the rent ceilings for all controlled rental
unl.ts.
( 2 ) Require registration of all controlled rental
unl.ts under Section 1803(q).
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- (3 ) Establish a base rent ceiling on rents under
Section 1804 (b).
(4) To make adJustments in the rent ceiling in
accordance with Section 1805.
(5 ) Set rents at fair and equitable levels in order
to achieve the intent of this Article.
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(6) Hire and pay necessary staff, including hearing
examiners and personnel to issue orders, rules and regulations,
conduct hearings and charge fees as set forth below.
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(7 ) Make such studies, surveys and investigations,
conduct such hearings, and obtain such information as is
< necessary to carry out its powers and duties.
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(8) Report annually to the City Council of the City
of Santa Monica on the status of controlled rental housing.
(9 ) Remove rent controls under Section 1803(r).
(10 ) Issue permits for removal of controlled rental
units from rental housing market under Section IB03(t).
(11 ) Admlnister oaths and affirmations and subpoena
witnesses.
(12 ) Establish rules and regulations for deducting
penalt1es and settling ciyil claims under Section IB09.
(13 ) Seek crim1nal penalties under Section IBIO.
(14 ) Seek injunctive AND OTHER CIVIL relief under
Sect10n 1811.
(15 ) Char~e and collect !e9istration fees, includin9
penalties ~ late payments.
(g) Rules and Regulations: The board shall issue and
follow such rules and regulations. includlng those which are
contained in this Article, as will further the purposes of the
Article. The Board shall publicize its rules and regulations
prior to promulgation in at least one newspaper of general
clrculation in the City of Santa Monica. The Board shall hold at
least one (1) publlC hearing to consider the views of interested
parties prior to the adoption of general adjustments of the
ce1lings for maximum allowable rents under Section 1805 and any
dec1S1on to decontrol or reimpose control for any class of rental
unlts under Section 1803(r}. All rules and regulations, internal
staff memoranda, and wrltten correspondence explaining the
decisions, orders, and policies of the Board shall be kept in the
Board's off1ce and shall be available to the public for
iflspection and copying. The Board shall publicize this Article
so that all res1dents of Santa Monica will have the opportunity
to become informed about their legal rights and duties under Rent
Control in Santa Monica. The Board shall prepare a brochure
which fully describes the legal rights and duties of landlords
and tenants under Rent Control in Santa Monica. The broch ure
will be available to the public, and each tenant of a controlled
rental unit shall rece1ve a copy of the brochure from his or her
landlord.
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(h) Meetings: The Board shall hold .tl~+4+tlf~titt+~~~t
J.~J such regularly scheduled meetings ~ ~ necessary to ensure
the tlmely performance of ~~~ duties under thlS Artlcle. wlt
t*~ff S~~eia~-mee~~~~~-~~ai~-6e-eailea-a~-~he-re~~~~t-ef-a~
lea~~-~h~ee-eefflffli~~~e~er~-e~-~he-Beara~--~~e-Beara-~hai~-heid-~t~
ifl~tia~-~ee~in~-ne-ie~er-t~afl-15-eay~-after-~a~~~g-effiee~ ALL
REGULAR AND SPECIAL MEETINGS SHALL BE CALLED AND CONDUCTED IN
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(i) Quorum: Three Commissioners shall constitute a quorum
for the Board.
(J) Voting: The affirmative vote of three Commissioners
of the Board is required for a decision, including all motions,
regulatlons, and orders of the Board.
(k) Compensation: Each Commissioner shall receive for
every meeting attended seventy-five dollars ($75.00), but in no
event shall any Commissioner receive in any twelve month period
more than forty-seven hundred and fifty dollars ($4,750) for
serV1ces rendered. _
(1) Dockets: The Board shall maintain and keep in its
office all hearing dockets.
(m) Vacancies: If a vacancy shall occur on the Board, the
Board shall w1thin thirty (30) days appoint a qua11f~ed person to
fill such a vacancy until the followlng municipal election when a
qualified person shall be elected to serve for the remainder of
the terIll.
(n) Financing: The Board shall finance its reasonable and
necessary expenses by charging landlords annual registration fees
t+~!+tt.t!~*ifmt;,,~.itS,~;!+;tllilt;+i*;;t4Itltt!tttil!tlriil,
.ft.tl++.,~t~i ~~t~~+ The Board may d~rect that all or part ~~
such fees ~ay be passed throu9h from landlords to tenants and may
establish applicable cond~tions and procedures. The Board is
also empowered to request and receive funding when and if
lllljllllijIIII11!liillllllll!!!lllllllfllllilllifIJ!Ifil!!:~:::
(0) Recall: Commissioners may be recalled in accordance
with the provisions of Article XIV of the Santa Monica Charter.
(p) Staff: The Board shall employ and pay such staff,
including hearing examiners and inspectors, as may be necessary
to perform its funct~on efficiently in order to fulfill the
purpose of this Article.
B
- - -----
. ~ . .
(q) Registration: Within sixty (60) days after the
a,!option of this Artic le, the Board shall require the
registration of all controlled rental units, which shall be
re-registered at times deemed appropriate by the Board. The
initial registration shall include the rent in effect at the time
on the date of the adoption of this Article, base rent ce~ling,
l the address of the rental unit, the name and address of the
< landlord, the housing services provided to the unit, a statement
indicating all operat~ng cost increases since the base rent
ceiling date, and any other information deemed relevant by the
Board. The Board shall require the landlord to report vacancies
in the controlled rental units and shall make a list of vacant
controlled rental units available to the public. If the Board,
after the landlord has proper notice and after a hearing,
determines that a landlord has wilfully and knowingly failed to
reg~ster a controlled rental unit, the Board may author~ze the
tenant of such a non-registered controlled rental unit to
w~thhold all or a portion of the rent for the unit until such
time as the rental unit is properly registered. After a rental
unit is properly registered, the Board shall determine what
portion, if any, of the withheld rent is owed to the landlord for
the period in which the rental unit was not properly registered.
~~ether or not the Board allows such withholding, no landlord who
has failed to register properly shall at any time increase rents
for a controlled rental unit until such units are properly
registered.
(r) Decontrol: If the average annual vacancy rate in any
category, classification, or area of controlled rental units
exceeds five (5) percent, the Board is empowered, at its
discretion and in order to achieve the obJectives of this
Article, to remove rent controls from such category,
classification or area. The Board may determine such categories,
classifications, or areas for purposes of decontrol consistent
with the objectives of this Article. In determining the vacancy
rate for any category, classification or area of controlled
rental units, the Board shall consider all available data and
shall conduct its own survey. If units are decontrolled pursuant
to this sucsection, controls shall be reimposed if the Board
finds t~at 'he average annual vacancy rate has thereafter fallen
belo~ ~~ve '5) p~rcent for such category, classification or area.
(s) Secur1ty Depos1ts: Any payment or deposit of money
the pr~mary function of which is to secure the performance of a
rental agreement or any part of such agreement, including an
advance payment of rent, shall be placed in an interest bearing
.~t~~*i+i:t;T~:;*t.;ll~lil;I~;;$t~li$;t!*~~I;~~I~~4*1~~lttt4~'
~Tfw~f4tl~* until such time as it is returned to the tenant
together w~th all accrued interest or +*itit+~]t~llt used b~ the
landlord in accordance with state law. ~+ ~*t+t+ 1,*I+'l~
iti!it!!11:tlitti11!iJt!!lli!littliftiii ttf!!litJtl1r!i:.,t~~.
~
. r . .
. ' , ,
ttlttiit::t!~llttitt~~tt:4ttt~*tt~tt!ttiit\:tititttfl~1~~:I~~:~*t
may regulate the amount and use of security deposits cons1stent
with the purposes of this Article and state law. .
(t) Removal of Controlled Unit Fram Rental Housing Market:
< (1) Any landlord who desires to remove a controlled
.
rental unit from the rental housing market by demolition,
conversion or other means is required to obtain a permit from the
Board prior to such removal from the rental housing market in
accordance with rules and regulations promulgated by the Board.
In order to approve such a permit, the Board is required to ~.*+
+,~~I~fltl+lf~++~t~,~lft+~t,~+t f1nd
tt!*~ttt.~+'~tl!~ttt11*lt+~l~tt~ttt!tt~lti~~tlt!t~~ttll*illttt~
tt!!;~ltlt;liIli!ffliill!l!t!tlft!li~ltltlt*ii;tJjt;ltfIt~~tll.
t~11 1~.tlt~+lt'~~t41Itflt*+ltt:t~~ll+41t~tt'+I*~~t
tt!l~t$~!t:~tf+'lll'fff ilt~+'+~ p 1 ~fl~~ i ili'lt~+ ~iltl~f
it) that the landlord cannot make a fair return ~*
~~t+,tT+*t by retain1ng the controlled rental unit.
(2) Notw1thstanding the foregoing provisions of this
subsection, the Board may approve such a permit:
ill ( i ) If the Board finds that the controlled
rental unit is un1nhab1table and is incapable of being made
habitable in an economically feasible manner, or
ft! (ii) If the permit is being sought so that the
property may be dev~loped with multifamily dwelling units and the
permit app11cant agr~es as a condition of approval, that the
units will not '):;; e>, ;mpt from the provisions of this Article
pursuant to SectIon 1801 \c) and that at least fifteen (15)
percent of the controlled rental units to be built on the site
will be at rents affordable by persons of low income.
-
. ill The Housin9 Element 2! the General Plan of the
Ci~y of Santa Monica shall at all times contain ~ provision that
ne1ther the City ~ounc1l nor any City agency shall approve an
app11cation for tentat1ve subdivision tract map or parcel ma~ nor
1ssue ~ Residential Build1ng Report fo~ ~ converted unit unt11
and unless the applicant first obtains ~ removal permit ~
r~quired EY this Section.
10
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. r . .
. ,
(4) The Board shall render its final decis10n w1thin
one hundred ~nd tW€1ty (120) days of the filins of ~ completed
applicat10n under this section.
.
SECTION 5. Sect10n 1805 of the C1ty Charter is amended to
read as fo 1 lows :
l
t
Section 1805. Ind1vidual and General Adjustment of
Ceilings on Allowable Rents.
(a) General AdJustment: The Board may, after holding those
public hearings prescr1bed by Section 1803 (g) , set and adjust
upward or downward the rent ceiling for all controlled rental
un1ts 1n general and/or for particular categories of controlled
rental units deemed appropriate by the Board. Such an
adjustment. however, need not take effect immediately, and the
Board may dec1de that new rent ce1lings shall not take effect
until some reasonable date after the above-stated time periods.
( b) Annual" General',AdJustment: Each year the Board shall
generally adJust rents as follows:
(1) Adjust rents upward by granting landlords a
ut~11ty and tax increase adjustment for actual increases in the
C1ty of Santa Monica for taxes and ut1lities.
( 2 ) AdJust rents upward by granting landlords a
maintenance increase adJustment for actual increases in the City
of Santa Mon1ca for maintenance expenses.
( 3 ) Adjust rents downward by requiring landlords to
decrease rents for any actual decreases in the City of Santa
Monica for taxes.
In adjusting rents under this subsection, the Board shall adopt a
iriiI!itrt~rtii1iitii\tirit!riittft!lfft~ti~t!t!itJtt!tttt~l+p~+
(c) Petitions: U~on rJceipt of a petition by a landlord
and/ or a tenant, the rraXiI'uIYl ..:"ent of individual controlled rental
units may be adjusted upward or downward in accordance with the
procedures set forth elsewhere in this Section. The petition
&~all be on the form provided by the Board and shall include ~
declaration ~ the landlord that the unit meets ~ll requirements
of Section 180STfT. NotwithstandIng any other provision of this
Section, the Board or hearing examiner may refuse to hold a
hearing and/or grant a rent adjustment if an individual hearing
nas been held and decision made with regard to maximum rent
within the preV10US six months.
(d) Hearing Procedure: The Board shall enact rules and
regulat10ns governing hearings and appeals of individual
11
:. '. . .
adJustment of ceilings on allowable rents which shall include the
followJ.ng:
(1) Hearing Examiner: A hearing examiQer appointed
by the Board shall conduct a hearing to act upon the petition for
J.nd1vidual adJustment of ceilings on allowable rents and shall
have the power to administer oaths and affirmations.
.
l
(2) Notice: The Board shall notify the landlord if
the petition was filed by the tenant, or the tenant, if the
petition was fJ.led by the landlord, of the receipt of such a
pet1tion and a copy thereof.
(3) Time of Hearing: The hearing officer shall
notify all parties, as to the time, date and place of the
hear1ng.
(4) Records: The hearing examiner may requ1re
either party to a rent adjustment hearing to provide it with any
books. records and papers deemed pert1nent in addition to that
information contained in ~egistration statements. The hearing
examiner shall conduct a current building inspection and/or
request the City to conduct a current building inspection if the
hearing examiner fJ.nds good cause to believe the Board's current
information does not reflect the current condition of the
controlled rental unit. The tenant may request the hear1ng
exam1ner to order such an inspection prior to the date of the
hear1ng. All documents required under this Section shall be made
available to the parties involved prior to the hearing at the
off1ce of the Board. In cases where information filed in a
petition for rent ceiling adjustment or in addJ.tional subm1ssions
filed at the request of the hearing examiner is inadequate or
false, no action shall be taken on said petition unt11 the
deficiency is remedied.
(5) Open Hearings: All rent ceiling adJustment
hearings shall be open to the public.
(6) Right of Assistance: All parties to a hearing
may have assistance in presenting evic~nce dnd develop1ng their
pos1t1on from attorneys, legal wo_~ers, rec~9nized tenant
organiza tion representatives or any ot.iler pE::crsons designated by
said parties.
- (7) Hearing Record: The Board shall make
available for inspection and copying by any person an official
record which shall constitute the exclusive record for decision
on the issues at the hearing. The record of the hearing, or any
part of one, shall be obtainable for the cost of copying. The
record of the hearing shall include: all exhibits, papers and
documents required to be filed or accepted into evidence during
the proceedings; a list of participants present: a summary of all
testimony accepted in the proceedings: a statement of all
materials off1cially noticed: all recommended decisions: orders
12
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. . .
' . .
and/or rulings~ all final decisions, orders and/or rulings, and
the reasons for each final decision, 0rder and/or ruling. Any
party may have the proceeding tape recorded or othe~ise
transcribed at his or own expense. .
(8) Quantum of Proof and Notice of Decision: No
. indiv~dual adJustment shall be granted unless supported by the
. preponderance of the evidence submitted at the hearing. All
parties to a hearing shall be sent a notice of the decision and a
copy of tne findings of fact and law upon which said decision is
based. At the same time, parties to the proceeding shall also be
notified of their right to any appeal allowed by the Board and/or
to judicial review of the dec1sion pursuant to this Section and
Sect10n 1808 of this Article.
(9) Consolidation: All landlord petitions
pertaining to tenants in the same building will be conso11dated
for hearing, and all petitions filed by tenants occupying the
same building shall be consolidated for hearing unless there is a
showing of good cause not,to consolidate such petitions.
(10) Appeal: Any person aggrieved by the decision
of the hearing examiner may appeal to the Board. On appeal, the
Board shall affirm, reverse or mod1fy the dec1sion of the hearing
exam1ner. The Board may conduct a de novo hear1ng or may act on
the basls of the record before the hearing exam1ner wlthout
holding a hearing.
(11) Flnality of Decision: The decision of the
hearing examiner shall be the fl.nal decision of the Board in
the event of no appeal to the Board. The decision of the hearing
examlner shall not be stayed pending appeal~ however, in the
event that the Board on appeal reverses or modifies the decision
of the hearing examiner, the landlord, in the case of an upward
adjustment in rent, or the tenant, in the case of a downward
adJustment of rent, shall be ordered to make retroactive payments
to restore the parties to the position they would have occupied
had the hear1ng examiner's decision been the same as that of the
Board.
(12 ) Time for Decision: The _ule!! and regulations
adopted by the Board shall provide for final a,::tion on any
1nd1vidual rent adjustment petition witt,in one-hundred and twenty
(120) days, following the date of filing of the individual rent
aOJustment pet1tion.
(l3) Board Action in Lieu of Reference to Hearing
Examiner: The Board, on its own motl.on or on the request of any
landlord or tenant, may hold a hearing on an individual petition
for rent adJustment without the petition first being heard by a
hearing examiner.
(14) Decisions decreasing rents shall remain in
effect until~ Board flnds that the landlord has corrected the
- -- - -
13
. ,. . .
defect warranting the decrease. The Board shall, EY regulation,
establish procedures for making comp11ance det~rminations.
(e) In making individual and general adjustments of the
rent ceiling, the Board shall consider the purposes of this
Article and the requirements of law. The Boara may adopt ~ its
< fair return standard any lawful formula, includins but not
< l1m1ted to one based on investment or net operating income. The
Board shall consider all factors relevant to the formula it
employs~ such factors ~ 1nclude: .,~/t~.+l]~pt~t+lltlf~4.lt~t
'+llt,+,t4*tlf~t*~l*~tl,~~ ~~~l+~l ~ increases or
decreases in operating and maintenance expenses, the extent of
utilities pa1d by the landlord, NECESSARY AND REASONABLE capital
improvement of the controlled rental unit as dist1nguished from
normal repair, replacement and maintenance, increases or
decreases in living space, furniture, furnishings, ~tl equipment,
or services, substantial deterioration of the controlled rental
un1t other than as a result of ordinary wear and tear, failure on
the part of the landlord to provide adequate housing services or
to comply substantially with applicable housing, health and
safety codes, federal and~state income tax benefits, the
speculative nature of the investment, whether or not the property
was acquired or is held as a long term or short term investment,
.*~ the landlord's rate of return on investment, the landlord's
current and base date Net Operating Income, and any other factor
dee~ed relevant ~ the Board 1n prov1d1ng the landlord a fa1r
return.- +11i'lt~'I~'~lll~+1~tit~+'llff~~4l1~';t'
*~~tt;1~lt~t~1t~ttf~ll~tt~~;tt*ttt~~+tl*+~~++.ttlt~I~~+1 ~,4l~t~
tttt;t!!ilitt~!ttilli!Itlltit!t!t liitftlr!ttt!iltllirt!!ttitft
nut 1 ! 'CD," /, ,,', ::1>' nm~:
nm 1 i' "", J - :Hi I let>
ttt~ftflt~l tIJlt+l ~l ~ + rl ,c ~. t ,f + I ~l ~ 1(41- l4>t!. J'r}t~cp~ ~~
t <B III It ( ~I;' .
l '( I hi: ,~;( .(~~
-.< ~h. ~I t
l~. .(~
.~ ~ ..l ~. ~lll ~i I
.(.l. f
~I 11 ~1 .( '( 4*
:0. r~\ Y II .(ll II ~( 'c
(>I (ll ~(( ~Y
~4~+lcp~I.~~Jtl4>4Icp ljll+ ~ t~ll J
III (f) No landlord shall increase rent under this Article
if the landlord:
14
" . . .
(1) Has failed to comply with any provision of this
Article and/or regulations issued thereunder by the Boaed,
includ1ng the provis1ons requiring the payment ~ registrat10n
fees and registration penalties, or U .
(2) Has failed to comply substantially with any
applicable state or local housing, health or safety law. No
~ landlord shall increase rent unless the notice increasing rent
contains ~ statement in substantially ~h~ following form: "The
undersigned <,landlor~) certifies that this property complies
s~bstantially with all state and local ~ousin9' health and safety
laws." If a landlord fa1ls to comply with this subsection, the
tenant ~ay refuse to pay the-rmproperly noticed increase, maY--
seek administrative or civ1l rernedles under this Ar~icle, and may
raise the landlord's noncompliance ~ ~ affirmat1ve defense in
any resulting unlawful detainer action.
ill Has, at the time of serving ~ notice s:!. ~
1Dcrease, held a unit vacant for three (3) consecutive months or
longer w1thout good cause deter~ined b~ the Board. No landlor~
shall increase ~ unles~ the not1ce ;ncreasing rent contains
~ of the follow1ng state~ents, or their substa~tial .
equ1valents: "The undersi~ned (landlord) certifies that ~ un1t
~ the ~ property as the unit subject to this rent increase
not~ce IS AND has been vacant for three (3) consecutive months or
long~r.~or "The ~ndersigned (landlord) certifies that one or -
more unl ts .2!! the property r,5 ~D hC3:,s; been vacant f,?r :three l3 )
consecut~ve months or longer, and the Santa Monica Rent Control
Board ~ determined that there is good cause for such vacancy."
If a landlord fails to comply with this subsect1on, tenants on
the-same property ma)' refuse tc;--pay the improperly noticed -
1nCrease, may seek administrative ~ civil ~emed1e~.under this
A~ticle, and may raise the landlords noncompliance ~ ~
aff1rmative defense in any resulting unlawful detainer action.
(9) The Board shall provide ~n eXp'e~ited procedure for
consideration of rent increases for capital improve~ent~ where
both the landlord and the current tenant(s) of the effected units
CO'I1Cur in the nature of the _capital improvement to be made or
~~ready made. All other rent increases ~ capital improv~me~t
shall proceed according to re~ular administrat1ve procedur~.
SECTION 6. Section 1806 is amended to read as follows:
- Section 1806. Eviction. No landlord shall take action to
terminate any tenancy including service of any notice to ~uit or
other eviction not1ce or bring any action to recover possession
or be granted recovery-of possession of a controlled rental unit
unless:
(a) The tenant has failed to pay the rent to which the
landlord is entitled under the rental housing agreement and this
Art1cle.
IS
. . .
. .
(b) The tenant has violated an obligation or covenant
of his or her tenancy other than the obligation to surren~er
possession upon proper notice and has failed to cure such
violation after having received written notice thereof from the
landlord in the manner required by law.
< (c) The tenant is committing or expressly permitting a
l nU1sance in, or is causing substantial damage to, the controlled
rental unit, or is creating a substantial interference w1th the
comfort, safety, or enjoyment of the landlord or other occupants
or neighbors of the same.
( d) The tenant 1S convicted of using or expressly
permitt1ng a controlled rental unit to be used for any illegal
purpose.
(e) The tenant, who had a rental housing agreement which
had terminated, has refused, after written request or demand by
the landlord, to execute a written extension or renewal thereof
for a further term of like duration and in such terms as are not
inconsistent with or violative of any provisions of this Article
and are materially the same as in the previous agreement.
( f) The tenant has refused the landlord reasonable access
to the controlled rental unit for the purposes of making
necessary repa1rs or improvements required by the laws of the
United States, the State of California or any subdivision
thereof, or for the purpose of showing the rental housing to any
prospective purchaser or mortgagee.
(g) The tenant holding at the end of the term of the
rental housing agreement 1S a sub-tenant not approved by the
landlord.
(h) The landlord seeks to recover possession in good faith
for use and occupancy by herself or himself, or her or his
children, or parents. It*1,"t~1~~~t~tttfftltt$tt't+4t!
ZP~l*+ttt*+ll~ ~ 1.4>4tt,t For purposes of
evict~ons under this subsection:
ill ~ "landlord" shall be defined ~ ~ natural person
who has at least ~ 50 percent ownersh1p interest ~ the property.
~ ~ eviction may take place !! any landlord ~
,~pumerated relat1ve already occupies ~ un1t ~ the property.
ill The notice ~~rminating tenancy shall contain the
nawe, address and relationship to the landlord of the person
intended to occupy.
(4) 'I'he landlord or enumerated relative must intend
in sood faith to move into the unit within 30 days after the
tenant vacates and to occupy the unit as a primary residence for
at least six months~ The Board may adopt-regulations gqverning
the deterrn1nation of good fa4th.
16
- ------- - --
',,' I" . .
1il If the landlord or relative specified on the
notice terminatin9 tenancy fails to occupy the ~ within 30
days after the tenant vacates, the landlord shall:
(i) Offer the unit to the tenant who vacated it.
l (ii) Pay to said tenant all reasonable expenses
l incurred in movin9 to and70r from the un1t.
(6) No eviction pursuant to this subsection shall be
allowed in any condomin1um ~ stock cooperat1ve unit wh1ch has
been converted fro~ ~ apartment ~ other rental unit after April
10, 1979, unless the Rent Control Board has issued a removal
perIT'it or declared ~ vested ri9"ht for said un1t. As used in this
subpart, ~ unit shall be deeMed converted after April 10, 1979,
if on April 10, 1979, the recorded tract ~ap or parcel map for
the property showed the unit ~ included ~ the property.
(i) The landlord seeks to recover possession to demolish
or otherwise remove the controlled rental unit from rental
residential housing use after having obtained all proper permits
from the City of Santa Monica.
Notwithstanding the above provisions, possession shall not
be granted if 1t 15 determined that the eviction is in
retaliation for the tenant reporting v10lations of this Article,
for exercising rights granted under this Article, including the
right to w1thhold rent upon authorization of the Board under
Section l803(q) or Section 1809 or for organizat1on other
tenants. In any notice purporting to terminate tenancy the
landlord shall state the cause for the termination, and in any
act10n brought to recover possession of a controlled rental unit,
the landlord shall allege and prove compliance with this Section.
Any violation of this Section shall render the landlord
liable to the tenant in a civil action for actual and punitive
damages.
SECTION 7. Section 1809 of the City Charter is amended to
read as follows:
(a) Any landlord who demands, accepts, receives, or
retains any payment of rent in excess of the maximum lawful rent,
in violation of the provisions of this Article or any rule,
regulation or order hereunder promulgated, includin9 the
provisions ensuring compliance with habitability ,standards and
re~istration fee requirements, shall be liable ,+l~'~+t*~ft~
pt~t~~,~ 1n a civil action to the tenant from whom such payments
are demanded~ accepted, received or retained, for reasonable
attorney.s fees and costs as determined by the court, plus
~~~les in '*I.*tl~~I~~lt+t+I~~,~t+~t~~ll4t+1 t*$~~l t~tlt*t++lill
t+.tl~~ the amount by which the payment or payments demanded,
accepted, received or retained exceeds the maximum lawful rent.
17
--..... ~-
., -
~ civil penalty ~ treble the amount of excess charges shall be
awarded a9ainst the landlord upon ~ showin9 that the landlord has
acted willfully ~ with oppression, fraud 2E malice.
(b) In lieu of filing a civil action, .+ljt~f~4,4If~tl~*
$'~4~~*ll.$tl f'l~ ~ tenant may file ~ adrninistrat1ve complai~t.
The Board shall establish by rule and regulation a hearing
\ ~+i+tt.t+.ti*.t~fft*+I.~;~~ti+fftft'wt~+!tt,tf+~ftt:~fl!tl!rt~t++~
t~lw~t~~'4tlt~I$+~if~,ll~~tl ('l~ I~rt+tl~'~~ ~ t+ ~~,. ~
ill Upon the filins of the complaint~ the Board
shall 1nform the parties of the availability of mediation
services ~ funded or controlled ~ ~~~ ~~ard. W~thi~ 60 days
of the 1i11n9 of the ~omplaint, ~ upon wr1tten reJect~on of
rnediat10n services ~ e1ther the la~~lord ~ ~~n~nt, the Board
shall ~ ~ date for he~rin9 of the compla1nt.
11l ~ any administrative ~earin9 under this .
Section, a landlord who demands, accepts, receives or reta1ns any
payment or rent in excess, of the maximum -lawful rent shall be
l~able for damages in the-amount of ~ excess and may be liable
for ~ penalty of ~ to $500. The tenant may deduct the penalty
and award of d~~age~ from future rent payments in the manner
provided bY-the Board. An order autho~izin~ rent withpolding
under this Article shall surV1ve the sale or other transfer of
~h~ prqperty and shall be bindin~ upoO-SUccessors of the 'landUord
aaainst whom the order was made. If a tenant authorized to
wrthhold-rent-under th1S Article vacates the property, the-
landlord snarl pay to such tenant a sum equa~ !S the balance of
the rent that the tenant could have withheld.
---- -
(c) If the tenant from whom such excessive payment is
demandedl accepted I received or retained in violation of the
foregoing provisions of this Article or any rule or regulation or
order hereunder promulgated fails to bring a civil or
administrative action as provided for in section 1809 (a) and
1809 (b) within one hundred and twenty (120) days from the date
of occurrence of the violation, the Board may settle the claim
arising out of the violation or bring such action. Thereafter,
the tenant on whose behalf the Board acted is barred from also
bringing an action against the landlord in regard to the same
violation for wh1ch the Board bas made a settlement or brought
action. In the event the Board settles said claim, it shall be
~ntitled to retain the costs it incurred in settlement thereof,
ahd the tenant against whom the violation has been committed
shall be entitled to the remainder.
(d) The appropr~ate court in the jurisdiction in which the
controlled rental unit affected is located shall have
Jurisdiction over all actions brought under this Section.
18