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SR-072396-9B 98 I " CA:atty\munl\strpts\bar\rc2amend - .. Clty Councll Meetlng 7-23-96 Santa Monlca, Callfornla JUL 2 3 1996 TO: Mayor and Clty Councll FROM: Clty Attorney SUBJECT: Proposed Tenant Harassment and Relocatlon Asslstance Charter Amendments Introductlon At the July 9, 1996 Clty Councll meetlng, the Steerlng COffimlttee of the Santa Monlcans for Renters Rlghts ("SMRR Steerlng COffimlttee") requested that the Clty Counell place proposltlons on the November ballot that would cause the Relocatlon Ordlnance and the Harassment Ordlnance to become part of the Clty Charter. The SMRR Steerlng COffimlttee also suggested certaln modlflcatlons to the measures. The Clty Councll dlrected the Clty Attorney's Offlce to prepare proposed charter amendments to place these two ordlnances In the Clty Charter, taklng lnto account the modlflcatlons to these ordlnances suggested by the SMRR Steerlng Commlttee. The proposed amendments are attached to thls report.' The EXlstlng Ordlnances On June 24, 1986, the Clty Councll adopted the Tenant Relocatlon Asslstance Ordlnance (the "Relocatlon Ordlnance"), Santa 1 These proposals are also Exhlblts 1 and 2 to the electlon resolutlons belng consldered by the Clty Councll at lts July 23rd meetlng. 1 98 -1 ~lt" JUl 2 3 1996 Monlca Munlclpal Code Sectlons 4.36.010 et seq. The Relocation Ordlnance has been tWlce amended. It requlres that monetary compensatlon and counsellng be provlded to an ellgible resldentlal tenant who lS eVlcted from or who terminates a tenancy for speclfled reasons, lncludlng eVlctlons pursuant to Government Code Sectlon 7060 et seq. (the Ellis Act), City Charter Sectlon 1806(h) (owner-occupancy) or Clty Charter Sectlon 1806 (l) (removal permlt) . Relocatlon fee amounts were based on four cost components: the rent dlfferentlal between the average Maxlmum Allowable Rent In the City and the average market rent In the Santa Monlca/West Los Angeles area, the securlty deposlt requlrements for a market rate unlt, movlng expenses, and utlllty start-up costs. On October 10, 1995, the Clty Councll adopted the Tenant Harassment Ordlnance (the "Harassment Ordinance" ) , Santa MOnlCa Munlclpal Code Sectlons 4.56.010 et seq. The Harassment Ordlnance makes certaln conduct by a landlord illegal If performed wlth the lntent to cause a tenant to vacate the tenant's rental houslng unlt. Thls conduct lncludes, but lS not Ilmited to: (a) Interruptlng or terminatlng houslng serVlces requlred by contract or by State or local houslng, health or safety laws. (b) Fallure to perform repalrs and malntenance requlred by contract or by State or local housing, health or safety laws, or fallure to exerClse due dlllgence In 2 completlng repalrs and malntenance once undertaken. (c) Abuslng the tenant wlth words which are offenslve and lnherently llkely to provoke an lmmedlate vlolent reaction. (d) Entlclng a tenant to vacate a unit through fraudulent mlsrepresentation. (e) Engaglng In an actlvlty prohlblted by Munlclpal Code Section 4.28.030(a), (d) , (e) , and (f) (WhlCh prohlblts houslng dlscrlmlnatlon based on age, parenthood, marrlage, pregnancy, or occupancy of a mlnor Chlld) or Sectlon 4.40.040 (WhlCh prohlblts undertaklng certaln real estate practlces based on sexual orlentatlon) . The Harassment Ordinance also speclfles remedles available for ltS vlolatlon. Proposed Tenant Harassment Charter Amendment ThlS proposed charter amendment would amend the deflnltions SeC1:10n of 1:he Rent Control Law, Charter Section 1801, and add Sectlon 1816 to the Clty Charter. The provlslons of Sectlon 1816 would be ldentlcal to the Harassment Ordlnance wlth the followlng slgnlflcant modiflcatlons: l. The lntent requlrement would be changed. The actlons or conduct speclfled In the amendment would constltute unlawful 3 harassment If undertaken wlth mallce, rather than wlth the lntent to cause a tenant to vacate the tenant's rental housing unlt. Sectlon 1801 (g) would define mallce as "an lntent to vex, annoy, or inJure another person.'" The SMRR Steerlng Commlttee suggested that mallce be defined as set forth In Penal Code Sectlon 7 (4) . Under thls approach, mallce would not only be deflned as an lntent to vex, annoy, or inJure another person, but would also mean "an lntent to do a wrongful act, establlshed either by proof or presumptlon of law." We have not lncluded thls addltlonal definltlon of mallce In the proposed amendment for two reasons. Flrst, It lS unclear what lS neant by the provlslon "establlshed either by proof or presumptlon of law." Case law lnterpretlng Penal Code Sectlon 7(4) has not addressed thls speclflc provlslon. Indeed, CALJIC 1.22 of the Callfornla Jury Instructions, which deflnes mallce, excludes thls phrase. Second, deflnlng mallce as an lntent to do a wrongful act would have the practlcal effect of maklng a landlord guilty of tenant harassment Slmply If a landlord lntended to perform or undertake the actlons or conduct speclfied In the proposed amendment. We do not believe that thls llmlted lntent requirement would be conslstent wlth the leglslatlve lntent of prohlbitlng harassment of tenants. Harassment normally lmports a notlon of lll-wlll. Deflnlng malice to slmply mean the lntent to comml t a , In addltlon to addlng a deflnltlon of "mallce" to Sectlon 1801 of the Charter, the proposed amendment would also add a deflnltlon of "fraud" to thls Section. Fraud would be deflned exactly as It is presently deflned in the Harassment Ordlnance. 4 wrongful act would slgnlflcantly alter this common understanding of tenant harassment. 2. The llst of prohlblted actions or conduct established In the ordlnance would be expanded in two ways. Flrst, the proposed amendrnent would prohibit a landlord from committing an act or falllng to perform an obllgatlon required by contract or law whlch lnterferes wlth a tenant's rlght to qUlet use and enJoyment as that rlght lS deflned by Callfornla law. Second, the llst of prohlblted dlscrlmlnatory conduct would be expanded. The Harassment Ordlnance prohiblts a landlord from engaglng in discriminatory actlvltles set forth In Santa Monlca Munlclpal Code Sections 4.28.030(a), (d) , (e) , and (f) and 4.40.040. The proposed amenclrnent would expand thls provlslon to address any law whlch prohlblts dlscrlmlnatlon based on race, gender, sexual preference or orlentatlon, ethnlc background, nationallty, rellglon, age, parenthood, marriage, pregnancy, dlsablllty, AIDS, or occupancy by a minor chlld. As to the tenant's rlght of qUlet enjoyment, the SMRR Steerlng CO~~lttee proposed prohlbltlng any act or fallure to perform any obllgatlon lmposed by law or contract wlth the lntent to lnterfere wlth a tenant's rlght to quiet enJoyment. We belleve that the SMRR proposal could lead to confuslon Slnce It would cause the amenclrnent to contaln multiple provlslons which prohlblt the same conduct but wlth dlfferent lntent requlrements. For lnstance, a landlord would vlolate proposed Sectlon 1816 (a) (2) If the landlord falled to perform requlred repalrs wlth mallce. Under the SMRR proposal, a landlord would also vlolate the amenclrnent's provislons If the 5 landlord falled to perform the requlred repalrs wlth the intent to lnterfere wlth a tenant's rlght to qUlet enJoyment.' 3. The avallable remedles would be modlfled. Current law provides that any person who vlolates or aids in the vlolation of the ordlnance would be llable for actual damages suffered by the aggr1eved tenant. The proposed charter amendment would modlfy th1S prov1s1on to prov1de that the vlolator 1S llable for m1n1mum statutory damages of f1ve hundred dollars unless the actual damages are greater than th1S amount. Add1 tlonally, the proposed charter amendment would change the Harassment Ord1nance ln two less slgn1ficant respects. F1rst, the Harassment Ordlnance proh1b1ts the 1nterrupt1on or term1nat1on of hous1ng serV1ces and the fa1lure to perform repalrs and malntenance requlred by contract or by State or local housing, health or safety laws. The amendment would also extend the same prohlbltlons to services, repalrs, and malntenance requlred by county houslng, health, or safety laws. Second, occupancles deflned by C1Vll Code Sectlon 1940(b) -- trans lent occupancy ln a hotel, motel, etc. subJect to occupancy taxes, or occupancy ln hotel or motel WhlCh provides speclfied serVlces -- are exempt from the provlslons of the Harassment 3 In its July 1, 1996 letter to the City Councll, the SMRR Steerlng CO~~lttee lndlcated that this proposed amendment should "prevent landlords from lnterfer1ng wlth a tenant's rlght to qUlet use and enJoyment of a controlled rental unlt." The language that thlS offlce recommends lS fully conslstent wlth thlS request. 6 Ordlnance. Slnce the proposed amendment only applles to controlled rental units, whlch does not lnclude rental units in hotels, motels, lnns, etc. whlch are rented prlmarlly for tranSlent guests for a perlod of less than fourteen (14 ) days (see Charter Sectlon 1801(c) (1)), the express reference to Sectlon 1940 (b) appears unnecessary and would be ellmlnated. One change to the Harassment Ordinance suggested by the SMRR Steerlng Corrunlttee lS not lncluded In the proposed charter amendment. The present ordlnance prohlblts a landlord from faillng to exerClse due dlllgence In completlng repairs and malntenance once undertaken If done wlth the requislte lntent. The SMRR Steerlng Corrunlttee proposed only prohiblting this conduct if the repalrs and malntenance were requlred by contract or by State, county, or local houslng, health or safety laws. However, the eXlstlng approach lS more conslstent wlth the purpose of thls leglslatlon Slnce It requlres a landlord to exerClse due dillgence In completlng repalrs and malntenance lrrespectlve of the reason the repalrs and malntenance were undertaken in the flrst instance. The proposed amendment retalns thls provlslon. Concern was expressed at the July 9th City Councll meetlng about the constltutlonallty of a law whlch prohiblts landlord harassment of tenants, but does not prohlblt tenant harassment of landlords. However, the guarantee of Equal Protectlon does not deprlve a leglslatlve body of ltS broad power to address percelved soclal llls so long as the leglslatlve actlon lS ratlonal and does 7 not establl.sh a subJect classl.ficatl.on. As the Unl.ted States Supreme Court stated l.n Pennell v. San Jose, 485 U.S. 1 (1988) : [W]e will not overturn [a statute that does not burden a suspect class or a fundamental l.nterest] unless the varYl.ng treatment of different groups or persons is so unrelated to the achl.evement of any combl.natl.on of legitl.mate purposes that we can only conclude that the legl.slature's actl.ons were l.rratl.onal. rd. at 14, quotl.ng Vance v. Bradley, 440 U.S. 93, 97 (1979) . See also Schnuck v. Cl.ty of Santa Monl.ca, 935 F.2d 171, 175-76 -- ( 1991) (" [b] ecause the Rent Control Law ratl.onally serves the legltl.mate purpose of protectl.ng tenants and because landlords are nct a suspect class, the Rent Control Law does not vl.olate equal protectl.on); Norsco Enterprl.ses v. Cl.ty of Fremont, 54 Cal. App. 3d 488, 497, 126 Cal. Rptr. 659, 665 ( 1976) ("'there l.S no constl.tutl.onal requl.rement that a regulatl.on, l.n other respects permlsslb1e, must reach every class to whlch It mlght be app1led-- that the Legl.slature must be held rl.gl.d1y to the choice of regu1atl.ng all or none' ") (cl.tatl.on oml.tted). Accordingly, we bell.eve that the proposed charter amendment would wl.thstand a constl.tutl.onal challenge. 8 Proposed Tenant Relocatlon Asslstance Charter Amendment ThlS proposed charter amendment would add Section 1817 to the Clty Charter. It mlrrors the Relocatlon Ordlnance, wlth the followlng modlflcatlons: 1. The proposed amendment would be admlnlstered exclusively by the Rent Control Board. ThlS would be a slgnlflcant change because the City presently adminlsters the relocatlon asslstance program. The proposed charter amendment would ellmlnate all references to the City or to Clty departments and replace them wlth references to the Rent Control Board. 2. The Rent Control Board would have the authorlty to lssue regulations ad]Ustlng the amount of the relocatlon fee, ad]Ustlng the amount of the fee requlred for counsellng or other serVlces, and establlshlng the type of serVlces to be provlded to tenants. 3. The Relocation Ordlnance requlres the payment of a fee to the Clty ln the amount of $250.00 to be used for counsellng or other asslstance requlred by the dlsplaced tenant. The proposed amendment would modlfy thlS requlrement by provldlng that the fee can be used for counsellng or other serVlces requlred by the tenant. Certaln modlflcations requested by the SMRR Steerlng Coronuttee have not been made. More speclflcally, the SMRR Steerlng Coromlttee requested that the proposed amendment provlde the Board wlth expllclt power to refer cases to the Clty Attorney's Offlce for prosecutlon and to create regulatlons. However, Charter Sectlon 9 1803 (f) (13) already provldes the Rent Control Board wlth the power to refer vlolatlons of the Rent Control Law to appropriate authorltles for crlilllnal prosecutlons. Charter Sectlon 1803 (g) already provldes that the Board shall lssue such rules and regulatlons as wlII further the purposes of the Rent Control Law. Includlng these powers In the proposed amendment would be redundant. The proposed amendment would apply to any tenant in possession of a controlled rental unit on or after November 5, 1996, who lS served wlth a notlce to termlnate tenancy based on one of the grounds entltllng a tenant to relocation asslstance. A landlord who has served a tenant wlth a notlce to termlnate tenancy or who has been served wlth a notice to terminate tenancy by a tenant prlor to November 5, 1996 would have untll November 11, 1996 to comply Wl th the applicable provisions of the proposed amendment unless the landlord had already compIled wlth the comparable reqUlrements of the Tenant Relocatlon Assistance Ordlnance. The proposed amendment would repeal most sections of the Relocation Ordlnance but would not repeal those sectlons of the ordlnance that address temporary relocatlon asslstance due to necessary code enforcement. Since code enforcement is wlthln the Clty'S purvlew not the Rent Control Board's, the provlslons of the Relocatlon Ordlnance relatlng to the need for relocatlon asslstance due to code enforcement would contlnue to be admlnlstered and enforced by the Clty. 10 The Relocatlon Ordlnance provides that a tenant lS ellglble for relocatlon asslstance when a landlord seeks to recover possesslon of a rental houslng unlt to demollsh or remove the unlt after havlng obtained all necessary permlts. See Munlcipal Code Sectlon 4.36.020(a) (3). The proposed amendment would ellminate thls provlslon for several reasons. First, It is largely dupllcatlve of proposed Charter Sectlon 1817 (b) (1) (li) whlch authorlzes relocatlon asslstance, In part, when a landlord seeks to recover possession of a rental houslng unlt after having obtalned a re~oval permlt from the Rent Control Board pursuant to Sectlon Charter 1803(t). Second, thls offlce lS unaware of any lnstance In whlch thls provlslon has actuallyprovlded the basls for relocatlon asslstance. Further, to the extent that Municlpal Code Sectlon 4.36.020 (a) (3) could be construed to encompass non-rent controlled unlts, it would have no place in thls proposed amendment. Thls amendment If approved by the voters, would become part of the Rent Control Law whlch only applles to controlled rental unlts. Indeed, the proposed amendment has been expressly drafted to only apply to controlled rental unlts. Flnally, lD draftlng the proposed amendment, all appllcable deflnltlons presently In the Relocatlon OrdlDance have been lncluded In proposed City Charter Sectlon 1817. Whlle l t would have been thls offlce's preference to place these deflnltlons In Charter Sectlon 1801, thls was not possible glven that the tenant harassment charter amendment adds new deflnltlons to Section 1801 11 and these two charter amendments are belng presented to the voters separately. RECOHMENDATION If the Clty Councll chooses to place tenant harassment and tenant relocation measures on the ballot, staff respectfully recommends adoptlon of the accompanYlng resolutlon submlttlng these ballot measures to the voters. Prepared By: Marsha Jones Moutrie, City Attorney Barry A. Rosenbaum, Deputy Clty Attorney 12 ATTACHMENTS PROPOSAL BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO BE SUBMITTED TO THE VOTERS OF A PROPOSED AMENDMENT OF THE CHARTER OF THE CITY OF SANTA MONICA, CALIFORNIA Section 1801 of the city Charter of the City of Santa Monica is amended to read as follows: 1801. Definitions. The fOllowing words or phrases as used in this Article shall have the following meanings: (a) Board. The term "Board" refers to the elected Rent Control Board established by this Article. (b) commissioners. The members of the Board and Interim Board are denominated commissioners. (c) Controlled Rental Units. All residential rental units in the City of Santa Monica, including mobile homes, and mobile home spaces, and trailers and trailer spaces, except single family homes to the extent provided for in Section 1815 and those units found by the Board to be exempt under one or more of the following provisions: (l) Rental units in hotels, motels, inns, tourist homes and rooming and boarding houses which are rented primarily to transient 1 guests for a period of less than fourteen (14) days. (2) Rental units in any hospital, convent, monastery, extended medical care facility, asylum, non-profit home for the aged, or dormitory owned and operated by an institution of higher education. (3) Rental units which a government unit, agency or authority owns, operates, manages, or in which governmentally subsidized tenants reside only if applicable Federal or state law or administrative regulation specially exempt such units from municipal rent control. (4) Rental units in owner-occupied dwellings with no more than three (3) units. For purposes of this section: (i) The term "ownerll means a natural person who owns a fifty (50) percent ownership interest in the building and resides on the property as his or her principal place of residence. (ii) An exemption under this section shall expire by operation of law when the owner ceases to reside on the property as his or her principal place of residence; 2 thereafter, all units on the property shall be subject to all provisions of this Article. (5) Rental units and dwellings constructed after the adoption of this Article; this exemption does not apply to units created as a result of conversion as opposed to new construction. (6) Where a unit is actually used for purposes of providing, on a nonprofit basis, child care or other residential social services in accordance with applicable laws. This exemption shall expire when the use upon which exemption is based ceases. This exemption shall only apply to units as they become vacant and shall only operate to allow the specified use without the necessity of obtaining a removal permit under this Article. This exemption shall not be construed to authorize the eviction of any tenant nor to authorize the charging of rent in excess of that permitted under this Article. The Board may adopt regulations to determine whether a unit qualifies for an exemption under this section. (7) Exemptions are not automatic but shall be granted by the Board upon 3 application by the owner pursuant to Board rules, provided that if the Board does not act upon a completed application for exemption within ninety (90) days of its filing it shall be deemed approved. 1.1' Fraud. 1 r. t C Jl t . ~: Jl.\ ! I ~, 0"1 !=rC'p:-r:.':;I:=nt..It" :.C~, aC:':l'~ t:. or c:om:C'd IlIIt",t o~ :"I<lt'~ri 11 f h:t.. :(~J: Housing Service. Housing services include, but are not limi ted to repairs, maintenance, painting, providing light, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, refuse removal, furnishings, telephone, parking, and any other benefit, privilege or facility connected with the use or occupancy of any rental unit. services to a rental unit shall include a proportionate part of services provided to common facilities of the building in which the rental unit is contained. '(~,):< Landlord. An owner, lessor, sublessor or any other person entitled to receive rent for the use and occupancy of any rental unit, or an agent, representative or 4 successor of any of the foregoing. ('3) Malice. /,,:~ ~r:.~(!l:1t too vex I .mr.or, C! lnjuro anot:,c:- pO:"t..on. :&), Rent. All periodic payments and all nonmonetary consideration including but not limited to, the fair market value of goods or services rendered to or for the benefit of the landlord under an agreement concerning the use or occupancy of a rental unit and premises including all payment and consideration demanded or paid for parking, pets, furniture, subletting and security deposits for damages and cleaning. fiJ, Rental Housing Aqre_ent. An agreement, oral, written or implied, between a landlord and tenant for use or occupancy of a rental unit and for housing services. ;(~t Rental units. Any building, structure, or part thereof, or land appurtenant thereto, or any other rental property rented or offered for rent for living or dwelling house units, together with all housing services connected with use or occupancy of such property such as common areas and recreational facilities held out for use by the tenant. 5 ;~lF) Tenant. A tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a rental housing agreement to the use or occupancy of any rental unit. f~~ Recognized Tenant Organization. Any group of tenants residing in 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. :~} Rent ceiling. Rent ceiling refers to the limit on the maximum allowable rent which a landlord may charge on any controlled rental unit. ;Cn); Base Rent Ceiling. The maximum allowable rent established in section 1804(b). J:l:!f property. All rental units on a parcel or lot or contiguous parcels or contiguous lots under common ownership. Jpt single Family Home. A property that has been developed with only one one-family dwelling and any lawful accessory structures, or a lawfully created condominium, stock cooperative or similar unit that is part of a larger residential structure or complex, excepting those condominiums, stock 6 cooperatives, or similar units converted after April 10, 1970 for which no removal permit or vested right determination has been issued by the Board, and those created pursuant to Article XX of this Charter. Section 1816 is added to the City Charter of the City of Santa Monica to read as follows: 1816. Tenant Harassment. (a) Prohibition. No landlord shall, with respect to property used as a controlled rental unit under any rental housing agreement or other tenancy or estate at will, however created, do any of the following with malice: (1) Interrupt or terminate housing services required by contract or by State, county, or local housing, health or safety laws. (2) Fail to perform repairs and maintenance required by contract or by state, county, or local housing, health or safety laws. (3) Fail to exercise due diligence in completing repairs and maintenance once undertaken. 7 (4) Abuse the landlord's right of access into a controlled rental unit as that right is specified in California civil Code Section 1954. (5) Abuse the tenant with words which are offensive and inherently likely to provoke an immediate violent reaction. (6) Seek to entice or entice a tenant to vacate a controlled rental unit through fraud. (7) Threaten the tenant, by word or act, with physical harm. (8) violate any law which prohibits discrimination based on race, gender, sexual preference, sexual orientation, ethnic background, nationality, religion, age, parenthood, marriage, pregnancy, disability, AIDS, or occupancy by a minor child. (9) Take action to terminate any tenancy, including service of any notice to quit or other eviction notice, or bring any action to recover possession of a controlled rental unit based upon facts which the landlord has no reasonable cause to believe to be true or upon a legal theory which is untenable under the facts known to the 8 landlord. This subdivision shall not apply to any attorney who in good faith initiates legal proceedings against a tenant on behalf of a landlord to recover possession of a controlled rental unit. (10) Commit any other act, or fail to perform any other obligation imposed by contract or law, which interferes with a tenant's right to quiet use and enjoyment of a controlled rental unit as that right is defined by California law. (b) Lawful evictions. Nothing in this Section shall be construed so as to prevent the lawful eviction of a tenant by appropriate legal means. (c) Remedies. violations of this Section shall be subject to the following remedies: (1) Any person who violates or aids or incites another person to violate the provisions of this Section shall be liable for each and every such offense for the actual damages suffered by any aggrieved tenant or for statutory damages in the sum of Five Hundred Dollars and Zero Cents ($500.00), whichever is greater, and shall be liable for 9 such attorney's fees and costs as may be determined by the court in addition thereto. The court may also award punitive damages in a proper case as defined by civil Code section 3294. (2) Any violation of this section may be asserted as an affirmative defense to any unlawful detainer action. (3) The remedies provided in this subsection are not exclusive, and nothing in this section shall preclude any person from seeking any other remedies, penalties, or procedures provided by law including, but not limited to, sections 1810 and 1811 of this Article. f:/atty/munl/laws/mtt/elec.def 10 PROPOSAL BY THE CXTY COUNCXL OF THE CXTY OF SANTA MONXCA TO BE SUBMXTTED TO THE VOTERS OF A PROPOSED AMENDMENT OF THE CHARTER OF THE CXTY OF SANTA MONXCA, CALXFORNXA Section 1817 is added to the City Charter of the city of Santa Monica to read as follows: 1817 Tenant Relocation Assistance. (a) Definitions. In addition to the definitions established in section 1801 of this Article, the following words or phrases as used in this section shall have the following meaning: (1) 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. (2) Displaced Tenant. Any tenant who vacates a rental housing unit in the city for any of the reasons set forth in section 1817(b). (3) Minor child. Any person younger than eighteen (18) years of age. (4) Senior citizen. Any person sixty-two (62) years of age or older. (b) When Relocation Fee Required. A 1 relocation fee shall be paid in accordance with the provisions of this section: (1) When any landlord terminates or causes the termination of a tenancy on the basis that: (i) The landlord seeks to withdraw all controlled rental units from the rental housing market as provided in Government Code Sections 7060 et seq. (ii)The landlord seeks to recover possession of a controlled rental unit pursuant to Sections 1806(h) or 1806(i) of this Article. (2)When a tenant 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 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 Section 1803(t) of this Article. (3) The fee required by this section shall be due and payable to a displaced tenant whether or not the landlord 2 actually utilizes the controlled rental unit for the purposes stated in the notice of eviction. (c) Notice to Tenants Being Displaced. The following notification requirements apply to tenants entitled to relocation assistance: (1) Except when section 1817(c) (2) is applicable, any notice to terminate a tenancy which is served upon a tenant for any of the reasons set forth in section 1817(b) shall be accompanied by the following on a form provided by the Rent Control Board: (i) A written statement of the rights and obligations of tenants and landlords under this Section; (ii) A written statement informing the tenant that the required relocation fee has been placed in an escrow account or other account approved by the Rent control Board; (iii) A written statement that the landlord has complied with section 1817(e). If the landlord has complied with section 1817(e) by obtaining Rent Control Board approval of a Displacement Plan, a copy 3 of the Displacement plan shall accompany the written statement. (2) When a landlord seeks to withdraw all controlled rental units from the rental market and terminate all tenancies pursuant to Government Code sections 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 Rent Control Board form informing the tenant of the landlord's determination of the tenant's 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 comply with the requirements of Section 1817(c) (1). A landlord's failure to 4 provide the information required by section 1817 (c) (1) at the time of service of the notice of termination shall not be considered a violation of this Section if the landlord's determination of tenant ineligibility was made in good faith and with due diligence. (3) A landlord shall comply with the provisions of this subsection (c) within two working days after receiving a tenant's notice to terminate tenancy as set forth in Section 1817(b)(2). (d) Amount of Relocation Fee. Subject to subsection (m) , the amount of relocation fee payable pursuant to the provisions of this Section shall be determined as follows: (1) The relocation fee shall be determined according to the size of the rental housing unit as follows: Housinq 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 or more Bedrooms $5,500.00 5 (2) If a tenant is evicted from more than one controlled rental unit on a property, the tenant shall not be entitled to receive separate relocation fees for each controlled rental unit. The tenant shall receive a single relocation fee based on the combined total number of bedrooms in the controlled rental units from which the tenant is being evicted. If one of the controlled rental units is a bachelor or single unit, it shall be counted as a one bedroom unit for purposes of determining the amount of the relocation fee (e.g. , a tenant who is evicted from a bachelor controlled rental unit and a one bedroom controlled rental unit would receive relocation benefits for a two bedroom unit) . (3) If the controlled rental unit from which a tenant is being evicted is furnished, Two Hundred Fifty Dollars ($250.00) shall be deducted from the amount set forth in Section 1817(d) (1). For purposes of this subsection (d), a controlled rental unit shall be considered to be furnished if the landlord has provided substantial furnishings in each occupied room of the controlled rental unit. 6 (4) 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 controlled rental unit on or before June 24, 1986, an additional One Thousand Dollars ($1,000.00) shall be added to the amount set forth in Section 1817(d) (1). (e) Additional Fee for Required counseling or other Services. Subject to subsection (m) , an additional fee shall be imposed according to the fOllowing provisions: (1) For each controlled rental unit from which tenants are displaced for any of the reasons set forth in section 1817(b)(1), prior to service of a notice to terminate tenancy, the landlord shall pay a fee to the Rent Control Board in the amount of Two Hundred Fifty Dollars ($250.00) to be used by the Rent Control Board to pay for counseling or other services required by displaced tenants as a result of displacement. (2) In lieu of the fee required by section 1817(e)(1), a landlord may prepare a Displacement Plan which must be approved by the Rent Control Board prior to service of a 7 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 Rent Control Board for review and approval, the landlord shall pay a fee to the Rent Control Board for such review and approval in the amount of One Hundred Dollars ($100.00) for each controlled rental unit. (f) Deposit of Relocation Fee into Escrow. The relocation fee required by this section shall be placed in an escrow account, or in another account approved by the Rent Control Board, prior to service by a landlord upon any tenant of a notice to terminate tenancy for one of the reasons set forth in section 1817(b)(1), or within two working days of service by a tenant upon a landlord of notice to terminate tenancy as set forth in section 1817 (b) (2). All costs of an escrow opened pursuant to the provisions of this subsection (f) shall be borne by the landlord. Escrow instructions shall be approved by the Rent Control Board. The escrow instructions 8 shall provide that monies deposited in the escrow account shall only be distributed to a displaced tenant in accordance with the instructions of the landlord and that no monies deposited in escrow may be returned to the landlord without the written approval of the Rent Control Board. (g) payment to Displaced Tenants. The relocation fee required by this section shall be paid as follows: (1) within two (2) working 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 (3) working days of delivery of the instructions. (2) within two (2) working days of the vacation of the controlled rental unit, the landlord shall deliver written instructions to the escrow holder to distribute the amount of the remaining relocation fee to the displaced tenant or 9 displaced tenants of the controlled rental unit. The instruction shall direct the escrow holder to make the distribution within three (3) working days of delivery of the instructions. (3) The entire fee shall be paid to a tenant who is the only displaced tenant in a controlled rental unit. If a controlled rental 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 which is more than the fee required by Section 1817(d) for one controlled rental 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. (4) In the event the landlord has been required to commence a legal action to recover possession of the controlled rental unit and a decision is rendered or a judgment has been entered in favor of the landlord prior to the tenant's vacation of the unit, the landlord may instruct the escrow holder to 10 withhold from distribution to the displaced tenant or displaced tenants of such controlled rental units any unsatisfied monetary award provided in such decision or judgment in favor of the landlord. Upon the judgment becoming final, the Rent Control Board shall authorize the escrow holder to return to the landlord the amount withheld. If no decision has been rendered or no judgment has been entered for a monetary award in favor of the landlord prior to the tenant's vacation of the unit, the landlord must authorize the distribution of the entire relocation fee to the displaced tenant(s) in accordance with this subsection (g) . (h) Physical Relocation Xn Lieu of Fee. The physical relocation of a displaced tenant is authorized under the following circumstances: (1) In lieu of the relocation fee required by sections 1817(d) and 1817 (e) , the landlord may, at the landlord's option, relocate the displaced tenant into a comparable replacement housing unit satisfactory to the tenant. In this case, the landlord shall be liable only for the actual 11 costs of relocating the tenant, except that this subsection (h) shall not abrogate any rights already created by section 1806 (h) (2) of this Article. A tenant shall not unreasonably withhold approval of a comparable replacement rental housing unit offered by the landlord. For purposes of this subsection (h), a replacement unit shall be comparable to the existing unit if both units are 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, a rental unit in the City of Santa Monica. (2) If a tenant displaced for the reason set forth in section 1817(b) (1) (ii) 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 this Article, in lieu of the relocation fee required by sections 1817(d) and 1817(e), the landlord shall only be liable for the actual costs of relocating the tenant. 12 (i) Remedies. In addition to the remedies established in sections 1810 and 1811 of this Article, the following remedies are available if the provisions of this section are violated: (1) In any action by a landlord to recover possession of a controlled rental unit for one of the reasons set forth in section 1817(b), the landlord shall allege and prove compliance with this section. (2) Any landlord who fails to provide monetary relocation assistance as required by sections 1817(d), 1817(e), and 1817(h) shall be liable in a 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 attorney's fees and costs as determined by the court. (3) No landlord shall attempt to secure from a tenant any waiver of any provision of this Section. Any agreement, whether written or oral, whereby any provision of this section is waived, shall be deemed against public policy and shall be void. 13 (j) Applicability of Relocation Assistance Requirements as Provided in this Section. The requirements of this section shall be applicable as follows: (1) The relocation assistance requirements set forth in this section shall apply to any tenant in possession of a controlled rental unit on or after November 5, 1996, including any tenant who has been served with or has served a notice to terminate tenancy for one of the reasons set forth in section 1817(b) prior November 5, 1996 and has not yet vacated the u~it. (2) A landlord shall comply with the requirements contained in sections 1817(c) , 1817 (d) , 1817(e), and 1817 (f) by November 11, 1996, in the event that a notice to terminate tenancy for one of the reasons set forth in section 1817(b) (1) has been served on a tenant or a notice to terminate tenancy pursuant to Section 1817(b) (2) has been served on a landlord prior to November 5, 1996. This requirement does not apply if a landlord has previously complied with the requirements contained in Santa Monica Municipal Code sections 4.36.030, 4.36.040, 14 4.36.050, and 4.36.060. (3) Nothing in this Section shall limit the amount of the relocation fee that the City Council may require under Government Code section 65863.7. (4) Chapter 4.36 of the Santa Monica Municipal Code is hereby repealed except for Sections 4.36.100 and 4.36.120(b) and (c) . (k) xnapplicability of section to certain Evictions. Except as provided in section 1817(c) (2), the requirements set forth in this section shall not apply to any tenant 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 sections 7060 et seq., unless the tenant qualifies as a lower income household pursuant to Health and Safety Code section 50079.5. (l) Coordination with Other Relocation Requirements. In the event 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 15 of the reasons set forth in section 1817(b), such benefits shall be off-set against the amount of relocation benefits required by section 1817(d). This section shall not apply to any relocation plan approved by agreement by the Rent Control Board on or before June 24, 1986. (m) Authority of the Rent Control Board. In addition to the powers and duties specified in section 1803 of this Article, the Rent Control Board shall have the authority to: (1) Issue regulations adjusting the amount of the relocation fee established in section 1817(d). (2) Issue regulations adjusting the amount of the fee for required counseling or other services established in section 1817(e). (3) Issue regulations establishing the type of services to be provided displaced tenants under section 1817(e). f:/atty/munl/laws/mtt/elec.ten 16