SR-8B (17)
CA:f\atty\muni\laws\barry\ellis.rev
city council Meeting 7-19-94
88
Santa Monica, California
JUL 1 9 'Z:1
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Proposed Amendment to the Tenant Relocation
Assistance Ordinance
INTRODUCTION
This report transmits for first reading a proposed amendment to
Chapter 4.36 of the Santa Monica Municipal Code, the Tenant
Relocation Assistance Ordinance.
This amendment would make the
provisions of this ordinance inapplicable when a tenancy is
terminated or caused to be terminated pursuant to the Ellis Act and
the displaced tenant does not qualify as a lower income household
as defined by State law.
BACKGROUND
The Tenant Relocation Assistance Ordinance was enacted by the city
Council on June 24, 1986 and amended effective March 29, 1990.
This ordinance requires that monetary compensation and counseling
be provided to any tenant whose tenancy is terminated for one of
several grounds including a landlord seeking to withdraw all rental
housing units from the rental market pursuant to Government Code
section 7060 et seq., the Ellis Act. However, a recent appellate
court opinion has interpreted the Ellis Act to restrict the
authority of a local entity to require a landlord to provide
JUL 1 9 199't
88
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relocation assistance when the landlord seeks to terminate the
tenancy pursuant to the Act.
More specifically, in Channinq Properties v. City of Berkeley, 11
Cal. App. 4th 88, 14 Cal. Rptr. 2d 32 (1992), the Court held that
a city could not require that relocation assistance be provided to
all tenants evicted from their property pursuant to the Ellis Act.
Instead, a city could only require that relocation assistance be
provided to lower income households as defined by Health & Safety
Code section 50079.5. This statutory provision defines a lower
income household to be persons and families whose income does not
exceed limits for lower income families established by the federal
Section 8 program -- eighty percent (80%) of area medium income.
The appellate court reached this result by comparing two specific
provisions of the Ellis Act -- Section 7060 (c) (1.) and section
7060(c) (2). The former section provides as follows:
Notwithstanding Section 7060, nothing in this
chapter does any of the following:
Diminishes or enhances any power which
currently exists or which may hereafter exist
in any public entity to mitigate any adverse
impact on persons displaced by reason of the
withdrawal from rent or lease of any
accommodations in any residential hotel, as
defined by Section 50519 of the Health and
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Safety Code, which is expressly reserved, or
generally used for occupancy by lower income
households as defined by Section 50079.5 of
the Health and Safety Code.
Subdivision (c) (2) provides:
The reference to residential hotels in
paragraph ( 1) is not intended by the
Legislature to diminish or enhance any power
which currently exists or which may hereafter
exist in any public entity to require those
same actions for other types of
accommodations.
The Channinq court interpreted subdivision (c) (l) to authorize
relocation assistance to a specifically defined group, low income
tenants in residential hotels. Id. at 99, 14 Cal. Rptr. 2d at 39.
The Court determined that subdivision (c) (2) was subsequently added
by the Legislature simply to clarify that cities retained the
authority to require the provision of relocation assistance to
lower income tenants residing in other types of housing. Id. The
Court rejected the City of Berkeley's claim that subdivision (c) (2)
allows a city to require relocation assistance to all displaced
tenants since according to the Court such an interpretation would
render subdivision (c) (1) meaningless. Id. The Court also
concluded that the City of Berkeley's interpretation would place a
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potentially insurmountable economic burden on landlords which would
conflict with the intent of the Ellis Act. Id. at 100, 14 Cal.
Rptr. 2d at 39.
The proposed amendment herein to the City's Relocation Assistance
Ordinance conforms the city's ordinance to the appellate court's
interpretation of the Ellis Act.
Thus, as amended, the
requirements of the ordinance shall not apply to any tenant whose
tenancy is terminated or caused to be terminated on the ground that
the landlord seeks to withdraw the property from the rental
business pursuant to the Ellis Act unless the tenant qualifies as
a lower income household as defined by Health and Safety Code
section 50079.5.
RECOMMENDATION
It is respectfully recommended that the city council accept the
attached ordinance for first reading and hold a public hearing
thereon.
Prepared By:
Marsha Jones Moutrie, city Attorney
Barry A. Rosenbaum, Deputy city Attorney
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CA: f\atty\muni\laws\barry\ellis. rev
City Council Meeting 7-19-94
Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING
THE TENANT RELOCATION ASSISTANCE ORDINANCE TO MAKE
ITS PROVISIONS INAPPLICABLE WHEN A TENANCY IS TERMINATED
PURSUANT TO THE ELLIS ACT AND THE DISPLACED TENANT
DOES NOT QUALIFY AS A LOWER INCOME HOUSEHOLD
WHEREAS, the Ellis Act, Government Code Section 7060 et seq.
contains provisions governing a local entity's authority to
impose relocation assistance requirements on an owner who
withdraws residential rental property from the market pursuant to
the Act; and
WHEREAS, the California Court of Appeal in Channinq v. City
of Berkelev, 11 Cal. App. 4th 88, 14 Cal. Rptr. 2d 32 (1993) has
interpreted these provisions to prohibit a local entity from
requiring an owner to provide relocation assistance unless the
displaced tenant qualifies as a lower income household; and
WHEREAS, the city Council is obligated to amend the city's
Tenant Relocation Assistance Ordinance, Santa Monica Municipal
Code Section 4.36 et seq. to conform to the appellate court's
interpretation of the Ellis Act;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES ORDAIN AS FOLLOWS:
SECTION 1.
Section 4.36.120 of Chapter 4.36, the Tenant
Relocation Assistance Ordinance is amended to read as follows:
(a) Notwithstanding Section 4.26.110, the
requirements set forth in this Chapter shall
not apply to any tenant whose tenancy is
terminated pursuant to a lawful notice to
terminate tenancy pursuant to section 1806(h)
of the City Charter served on or before June
10, 1986.
(b) section 4.36.100 shall not be applicable
if the displacement and relocation of the
tenant is the result of a fire not caused by
the landlord, earthquake or other natural
disaster.
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SECTION 2, Any provision of the Santa Monica Municipal Code
or appendices thereto, inconsistent with the provisions of this
Ordinance, to the extent of such inconsistencies and no further,
are hereby repealed or modified to that extent necessary to
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effect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause, or
phrase of this Ordinance is for any reason held to be invalid or
unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The city Council hereby
declares that it would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether
any portion of the Ordinance would be subsequently declared
invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption. This Ordinance shall be
effective 30 days from its adoption.
APPROVED AS TO FORM:
1lt~s-L,L~h~
MARSHA JON~ MOUTRIE
City Attorney
Revenue Account No. 01-500-421-00000-0179-10000, "Sidewalk Repair
Revenue." Any unpaid assessments will be placed on the 1994-95
property tax roll by the Los Angeles County Assessor's Office.
Recommendation
It is recommended that City Council:
1. Open the public hearing
2. Close the public hearing
3. Acknowledge any protest and adopt the attached Resolution
confirming the assessed costs
Prepared by:
Craig Perkins, Director of Environmental and Public
Works Management Department
Tony Antich, City Engineer
Attachment:
Resolution
Notices of Assessment and Time of Public Hearing
street Superintendent's Report
List of Property Owners
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