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