SR-10-A (5)
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RENT CONTROL ADMINISTRATION MEMORANDUM
JAN 1 6 1990
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DATE:
January 9, 1990
TO:
Santa Monica City Council
FROM:
Santa Monica Rent Control Board
RE:
possible Abuses of the TORCA Law
During the last several months, the Rent Control Board
has been contacted by numerous tenants concerned about threats
to "Ellis" their homes. The disturbing phenomenon is that the
threat of Ellis withdrawal is being used to intimidate or
coerce tenants into agreeing to a TORCA conversion. Tenants
are being told that if they don't agree to a TORCA conversion,
the property will be withdrawn under the Ellis Law.
The Rent Control Board is also concerned about
instances where, after an Ellis withdrawal, and all of the
existing tenants have been evicted or displaced, the building
is re-rented for the purpose of a TORCA conversion. The
building is reoccupied, not by the original tenant, but by new
tenants. In one instance, the original tenants were offered a
cash payment of the Ellis penalty provision if they would give
up their rights to reoccupy their old unit. In that case, the
owner has installed other people in the building and is
preparing to apply for a TORCA conversion.
In light of these abuses and others of a similar
nature, the Rent Control Board proposes that the City Council
take the following action:
l) Propose an amendment to the TORCA provisions
of the City Charter to prohibit a TORCA conversion
after an Ellis withdrawal of the property. This could
be an outright ban or a prohibition for a number of
years.
2) Declare a moratorium on the processing of TORCA
conversions until the vote on the Charter provisions.
10-8
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3) If the City continues to process TORCA
conversions, investigate the circumstances surrounding
the signing of the Notices of Intent carefully. If
the threat of an Ellis withdrawal has been made at the
property and the tenants influenced to sign the Notice
of Intent, don't approve the conversion.
4) Substantially increase the tenant relocation
assistance paid to tenants who are displaced because
of an Ellis withdrawal.
MAY:jpl
cc: City Manager
City Attorney
OlOOC