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SR-1101-004 e .- ~CltYOf Santa Monieaoo City Council Report City Council Meeting: October 10, 2006 Agenda Item: ~ To: Mayor and City Council From: Marsha Jones Moutrie, City Attorney Subject: Ordinance Modifying Municipal Code Relating to Temporary Relocation Benefits Recommended Action Staff recommends that the City Council introduce for first reading the attached proposed ordinance amending Municipal Code Section 4.36.100 governing temporary relocation benefits. Executive Summary The attached, proposed ordinance would amend the City's temporary relocation law by establishing per diem limits on benefits to be set by Council resolution, requiring the Building Official to provide notice to landlords and tenants of benefit payment obligations, providing a right of appeal for landlords, and exempting landlords from the obligation to pay benefits to a tenant who was entirely or primarily responsible for causing the condition necessitating the relocation. Discussion Santa Monica Municipal Code Chapter 4.36 establishes requirements relating to the payment of both permanent and temporary relocation benefits. Section 4.36.100 1 governs temporary relocation mandated by a code compliance order. That section, which was adopted in 1990 and amended in 1999, provides that benefits must be paid covering specified classes of costs but makes no specification as to amounts which must be paid. Rather, for relocations longer than 30 days, the section requires the landlord to pay for housing "comparable" to the tenant's existing housing in a number of specified ways. For relocations shorter than 30 days, the ordinance provides that the landlord shall relocate the tenant to a motel or hotel in Santa Monica containing standard amenities and shall provide vouchers for food, laundry and pet accommodations. The Code provides that the requirements are inapplicable to situations involving earthquakes and natural disasters. The State adopted relocation requirements in 2004 set forth in Health and Safety Code Sections 17975 and following. The state system limits relocation payments to two months plus the cost of deposits for a new unit. Thus, the state system contemplates that the tenant will permanently relocate to a new residence. Additionally, the state system: (a) expressly denies benefits to a tenant who causes or substantially contributes to the condition requiring the order to vacate; and (b) exempts owners from the obligation to pay benefits if the local agency does not provide for an appeal of the order requiring payment of benefits. 2 Last year, the Building Official sought advice from the City Attorney's office, noting a lack of clarity in both state and local law. For instance, he noted that his obligations in determining fault were vague under state law and that local law left unclear how relocation rights should be determined in specific cases. After the Building Official raised his concerns, a lawsuit, entitled Bruno v. City, was filed against the City. It seeks a declaration that the City's temporary relocation ordinance is unconstitutional and as in conflict with state law. That case arises from an unusual fact situation in which two units in a building were rendered temporarily uninhabitable as a result of a fire. The Santa Monica Fire Department concluded that the fire's sole cause was the tenant in one of the units smoking in bed. The owner was ordered to recover possession in order to rehabilitate the damaged units, and a dispute arose as to which tenants were entitled to temporary relocation benefits. The plaintiff in Bruno claims that the City's temporary relocation law operates to effectuate an unconstitutional taking of property because it requires that benefits be conferred in "unlimited amounts," that it violates the due process rights of landlords by denying them adequate notice or a right to appeal, and that it impermissibly conflicts with Health & Safety Code Section 17975 in that, among other things, it requires relocation payments when relocation is necessitated through the fault of a tenant. The proposed ordinance would provide the clarity and address issues relating to notice and fairness. In particular, the ordinance would establish a mechanism for fixing per 3 . ---- diem benefit amounts, which would be set by Council resolution. The ordinance would clarify that the Building Official has the responsibility to notify landlords and tenants of the per diem rates. It would also create appellate rights for landlords and require the Building Official to give notice of those rights. Finally, the ordinance would create an exception to the payment obligation as to tenants who are entirely or primarily responsible for causing the condition which necessitates the relocation. A review of other cities' relocation ordinances reveals variety on the issue of durational limits for benefits. Berkeley and West Hollywood both have durational caps. Berkeley has a three month cap. West Hollywood has a six month cap; for longer periods, the landlord must pay a flat fee. Such caps provide insulation against legal challenge in that they establish a uniform limitation on a landlord's obligations. However, in the past, the Council opted to forego durational limits because they might diminish a landlord's incentive to promptly complete repairs. Staff is not recommending a cap for that reason. Alternatives The Council could direct staff to revise the proposed ordinance to include durational limits similar to those in effect in West Hollywood and Berkeley. Budqet/Financiallmpact Adoption of the proposed ordinance would have no direct financial impact; adoption could indirectly affect the attorney fee claim in the Bruno case. 4 Prepared by: Marsha Jones Moutrie, City Attorney Approved: Forwarded to Council: 5 f\atty\mu ni\laws\mjm\temporaryrelocationbenefits-1 .doc City Council Meeting 10-10-06 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS 4.36.100 AND 4.36.120 RELATING TO TEMPORARY RELOCATION BENEFITS WHEREAS, temporary relocation benefits are vital to Santa Monica tenants who must vacate their homes for repairs necessitated by law or government order; and WHEREAS, both tenants and landlords will benefit from enhancements to the clarify and certainty of relocation requirements and obligations; and WHEREAS, the City's relocation requirements are intended to protect the rights of both tenants and landlords, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 4.36.100 is hereby amended to read as follows: Section 4.36.100. Temporary relocation mandated by code compliance or by government order. 1 (a) If a landlord is required to temporarily recover possession of a rental housing unit in order to comply with housing, health, building, or safety laws of the State of California or the City of Santa Monica, or if a tenant is required to vacate a unit upon the order of any government officer or agency, the landlord shall provide relocation benefits to the displaced tenant. These relocation benefits shall include both temporary housing as provided in subsection (b) of this Section and moving costs as provided in subsection (c) of this Section. In the event that the tenancy of such person is subsequently terminated for one of the reasons set forth in Section 4.36.020, the landlord shall pay the relocation fee required by Sections 4.36.040 and 4.36.050 and the landlord shall have no further obligation for temporary accommodations under this Section. (b) The type of temporary housing required by this Section is dependent on the duration of the tenant's displacement. C1Llf a tenant will be displaced for a period less than thirty days, the kClFtGtOfBshalt-relO€ate.the-tenaftt-tenant shall Q~_~.rJtitle_d to J:.E?J9J::EJ.te to a motel or hotel accommodation which is safe, sanitary, located in Santa Monica, and contains standard amenities such as a telephone. The 2 landlord shall Oeaf-tAe-wH-BOst-ef-trus accommodation ~:md also provide the tenant wHfl-vouchers compensation for food, laundry, and pet accommodations2Vhe~~able The 19.n d IQrQ.~b_'2:11J2.~Y..lb_~_lQll~J.lt re I Qg~.tJo n _b en_E:1its f 0 Uhe se LtE:.mS In the per diem arT:Lounj~_~~ set by City Council Qhjr~lE:!!lU_Q subse.ctiooJQ}. {ILlf the displacement will be for a period of thirty days or greater, the temporary housing shall be rental housing. The rental housing shall be comparable to the tenant's existing housing in location, size, number of bedrooms, accessibility, type and quality of construction, proximity to services and institutions upon which the displaced tenant depends, and amenities, including the allowance for pets should the tenant have pets. Should the temporary housing be more expensive than the tenant's existing housing, the landlord shall be responsible for the cost differential between the rent that the displaced tenant pays for his/her unit and the cost of the temporary housing. The landlord and the tenant may mutually agree upon a housing type other than the temporary housing required by this subsection. (c) Moving costs shall consist of all actual reasonable costs of moving, including, transportation of 3 personal property, packing and unpacking, insurance of personal property while in transit, compensation for any damage occurring during moving, storage of personal property, disconnection and reconnection of utility services and any other additional costs attributable to a tenant's special needs, including needs resulting from disability or age. 11LThf'~ CltLCouDfU shE!L2Qriodically estabJishJ2y g::$gJ~I.~_oJJ.!Q9sQ'l~J21~'p_er d[ernJates_for the followinq items Qltemp_Orill'L relocation expenses required under this Section L1LJj9JQL..e~~QiII m OQ9J!9 n s. La.Meal 9l1owance~ L:n Laundry allowance. L4L.pet accommodations. {~LThe BlJMJn.fLQfficial shall provide rlOtice to the landlord and all affected tenants of the relocation ---~-~~------- LE:;_Q.l::lJrements and responsibilities Qllrsuant to this Section. TD!$ notice may Include a.coRY of this Section and the City Council's resolution reqardi~ diem-.iates. 4 (dD The displacement and relocation of a tenant pursuant to this Section shall not terminate the tenancy of the displaced tenant. The displaced tenant shall have the right to reoccupy his/her unit upon the completion of the work necessary for the unit to comply with housing, health, building or safety laws or any governmental order and the tenant shall retain all rights of tenancy that existed prior to the displacement. (gLA IgDQlor~:Lwho disputes a determination by the ~il1'..thalterDQQ@C{J~loca.!lon benefits are owed to a tenant. QI'YlJl_()~1~p_ytesJJ1~EJJJoun.t of such benefits, may request !J}9L~Ul~.9llDgJ2.sU~gnducted pursuant t~~anta Monica MllDJgill~ Code. Section 1.10.060 et seq. SECTION 2. Santa Monica Municipal Code Section 4.36.120 is hereby amended to read as follows: Section 4.36.120. Inapplicability of Chapter to certa i nevictienss ituations. (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. 5 (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) 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. (d) The Building Officer and Director of Planning and Community Development may jointly authorize a longer 6 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 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. (e) 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. 7 (f) No landlord shall be required to provide temporary r_~_Ig~ation benefits pursuant to Section 4.36.100 to a tenant ~h~C:!s e_QJir~:i or primar~ responsible for causing the conditlonJbjlJ~ecessitC:!ted the temporary relocation. 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 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: ~ 8