SR-1101-001
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City Council Meeting 6-22-04 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Ordinance Amending Chapter 4.36 of the Santa Monica Municipal Code to
Extend Relocation Benefits To All Residents Displaced by Ellis Act
Evictions
INTRODUCTION
In April 2004, in response to a recent change in State law, Council directed staff
to prepare an ordinance extending relocation benefits to all residents displaced by Ellis
Act evictions, irrespective of household income. The attached ordinance fulfills that
direction. Staff recommends that the Council introduce the ordinance for first reading
and also adopt a resolution adjusting for inflation the amount of permanent relocation
fees paid to tenants.
BACKGROUND
The City’s Relocation Assistance Ordinance (Chapter 4.36 of the Municipal
Code) originally required relocation assistance for all tenants whose units were
withdrawn from the rental market under Government Code Sections 7060 et seq. (the
“Ellis Act”). In Channing v. City of Berkeley (1992) 11 Cal App.4th 88, the California
Court of Appeal interpreted Government Code Section 7060.1(c) to restrict local
authority on Ellis relocation benefits to lower income households. In response to the
Channing decision, Council amended the Relocation Assistance Ordinance to limit Ellis
relocation benefits to lower income households.
Effective January 2004, the California Legislature amended Government Code
Section 7060.1(c) to broaden local authority on Ellis relocation benefits to all tenants
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regardless of income. This amendment renders moot the Court of Appeal’s holding in
Channing.
The Relocation Assistance Ordinance provides for periodic adjustments in the
fees pursuant to the CPI-W rent index. The index has increased substantially in the
area, but relocation benefits have not been adjusted since November of 1999.
DISCUSSION
Pursuant to changes in state law, the City may now reinstate relocation benefits
for all tenants displaced by Ellis evictions. The attached, proposed ordinance would
accomplish that purpose and provide benefits to all Ellised tenants who are forced to
confront the realities of the area’s rental housing market.
The proposed ordinance would have the additional benefit of conserving staff
time and resources. In recent years, the Consumer Unit of the City Attorney’s Office
has handled many Ellis relocation complaints that involved disputes over the tenants’
income. Such disputes are often legally complex and fact-intensive. Removing the low-
income requirement would eliminate the issue of tenants’ income and thereby allow staff
to spend more time on other housing and consumer issues.
The attached resolution would adjust and update relocation fees according to the
formula set forth in Santa Monica Municipal Code Section 4.36.040.
FINANCIAL/BUDGET IMPACT
The proposed ordinance would have no direct financial impacts on the City.
RECOMMENDATION
Staff recommends that Council introduce the attached ordinance for first reading
and adopt the attached resolution.
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PREPARED BY: Marsha Jones Moutrie, City Attorney
Adam Radinsky, Deputy City Attorney
Bob Moncrief, Housing and Redevelopment Manager
Jim Kemper, Senior Administrative Analyst, Housing and
Redevelopment Division
ATTACHMENT: Ordinance
Resolution (See Adopted Resolution No. 9961 (CCS)).
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City Council Meeting 6-22-04 Santa Monica, California
ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING CHAPTER 4.36 OF THE SANTA MONICA MUNICIPAL
CODE TO EXTEND RELOCATION BENEFITS TO ALL RESIDENTS DISPLACED BY
ELLIS ACT EVICTIONS
WHEREAS, the City’s Relocation Assistance Ordinance (Chapter 4.36 of the
Santa Monica Municipal Code) originally required relocation assistance for all tenants
whose units were withdrawn from the rental market under Government Code Sections
7060 et seq. (the “Ellis Act”); and
WHEREAS, the California Court of Appeal in Channing v. City of Berkeley (1992)
11 Cal App.4th 88, interpreted Government Code Section 7060.1(c) to restrict local
authority on Ellis relocation benefits to lower income households; and
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WHEREAS, in 1994, by Ordinance Number 1765 (CCS), in response to the
Channing decision, the City amended the Relocation Assistance Ordinance to limit Ellis
relocation to lower income households; and
WHEREAS, effective January 1, 2004, the California Legislature amended
Government Code Section 7060.1(c) so as to broaden local authority on Ellis relocation
benefits to all tenants regardless of income; and
WHEREAS, the new amendment to Government Code Section 7060.1(c)
renders moot the Court of Appeal’s holding in Channing; and
WHEREAS, finding replacement rental housing in Santa Monica or surrounding
communities is very difficult irrespective of household income; and
WHEREAS, the City wishes to assure fair and proper compensation for all
tenants who are displaced by Ellis Act evictions in order to facilitate their relocation,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 4.36.030 of the Santa Monica Municipal Code is amended
to read as follows:
Section 4.36.030 Notice to tenants being displaced.
(a) Except when Subsection (b) of this Section is applicable, Any
notice to terminate a tenancy which is served upon tenants for any of the
reasons set forth in Section 4.36.020 shall be accompanied by the
following on the form provided by the City:
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(1) A written statement of the rights and obligations of tenants and
landlords under this Chapter;
(2) A written statement informing the tenants that the required
relocation fee has been placed in an escrow account or other account
approved by the City;
(3) A written statement that the landlord has complied with Section
4.36.050. If the landlord has complied with Section 4.36.050 by obtaining
a City approval of a Displacement Plan, a copy of the Displacement Plan
shall accompany the written statement.
(b) When a landlord seeks to withdraw all rental housing units from
the rental market and terminate all tenancies pursuant to Government
Code Section 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 City form informing the tenant of the landlord’s determination of
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
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requirements of Subsection (a) of this Section. A landlord's failure to have
provided the information required by subsection (a) of this section at the
time of service of the notice of termination shall not be considered a
violation of this Chapter if the landlord's determination of tenant ineligibility
was made in good faith and with due diligence.
(c) (b) A landlord shall comply with the provisions of this Section
within two working days after receiving a tenant's notice to terminate
tenancy as set forth in Section 4.36.020(b).
SECTION 2. Section 4.36.120 of the Santa Monica Municipal Code is amended
to read as follows:
Section 4.36.120 Inapplicability of Chapter to certain evictions.
(a) Notwithstanding Section 4.36.110, 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 an earthquake or other natural
disaster.
(c) Except as provided in section 4.36.030(b), the requirements set
forth in this Chapter shall not apply to any tenant whose tenancy is
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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 Section 7060 et seq., unless the tenant
qualifies as a lower income household pursuant to Health and Safety
Code Section 50079.5.
(d) (c) Section 4.36.100 shall not be applicable if the displacement
and relocation of the tenant is necessary to comply with the repair and
retrofitting requirements of Municipal Code Chapters 8.60, 8.64, 8.72,
8.76, and 8.80. However, in the event of such displacement, a landlord
shall be responsible to pay the displaced tenant the difference between
reasonable rent actually paid for comparable temporary accommodations,
and the rent which would have been payable to the landlord had the
displacement not occurred, for any period of displacement which exceeds
the following limits:
(1) For buildings less than five stories in height, one hundred eighty
days, or if asbestos removal is required, two hundred seventy days.
(2) For buildings five stories or more in height, two hundred seventy
days, or if asbestos removal is required, three hundred sixty days.
The Building Officer and Director of Planning and Community
Development may jointly authorize a longer time period to complete repair
and retrofitting if, prior to displacement, they find that due to
circumstances unique to the building, the repair and retrofitting will take
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longer than the preceding time limits. Additionally, after tenant
displacement, the Building Officer and Director of Planning and
Community Development may jointly grant a reasonable extension of the
time limit if they find that the landlord is proceeding diligently and
expeditiously with repair and retrofitting, and that the inability to complete
the project within the established time limit is due to the occurrence of
events that were reasonably unforeseeable by and beyond the control of
the landlord; provided, however, that the landlord's inability to finance such
repair and retrofitting shall not be grounds for such an extension.
The displacement and relocation of a tenant for repair and
retrofitting pursuant to Municipal Code Chapters 8.60, 8.64, 8.72, 8.76,
and 8.80 shall not terminate the tenancy of the displaced tenant. The
displaced tenant shall have the right to reoccupy the unit upon the
completion of the repairs and retrofitting and shall retain all rights of
tenancy that existed before the displacement. This amendment to
subsection (d) of this Section is declaratory of existing law.
SECTION 3. 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, is hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 4. 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
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court of 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 5. The Mayor shall sign and the City Clerk shall attest to the passage
of this Ordinance. The City Clerk shall cause the same to be published once in the
official newspaper within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adoption.
APPROVED AS TO FORM:
_________________________
MARSHA JONES MOUTRIE
City Attorney
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