SR-11-A (18)
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city Council Meeting 7-19-88
STAFF REPORT
TO:
Mayor and City Council
FROM:
city Attorney
SUBJECT:
Report and Recommendation Concerning Proposals
to Amend the Owner Occupied Exemption
provisions of the Rent Control Law and
Proposal to Amend the Tenant Relocation
Assistance Law
INTROOUCTION
At its meeting on June 28, 1988, the City Council directed
the City Attorney to prepare a Staff Report on proposals to amend
city Charter section 1801(c) (4). That section exempts from the
Rent Control Law "rental units in owner-occupied dwellings with
no more than three (3) units."
The dual purposes of the Rent Control Law are preservation
of affordable housing and protection of owners' property
interests. Two limitations are contained in Section 180l(c) (4)
to effectuate these purposes:
(l) an owner-occupier must own at
least a 50% interest in the property and (2) the exemption
provided expires automatically when the owner moves from the
premises. section l806(h) (l) complements section 180l(c} (4). It
allows eviction for owner or relative occupancy in controlled
units where the owner has "at least a fifty (50) percent
ownership interest."
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The salient purpose of section l80l(c} (4) is frustrated
when, instead of protecting the interests of owners living on the
premises, it becomes a vehicle for removal of units contrary to
the intent of the law. The Rent Control Board has partially
addressed this issue with the repeal of Regulation 5017, which
had provided for removal permits for section 180l(c} (4)
properties. The repeal is currently being challenged in
litigation. Further protection could be provided by providing
that the exemption is only from rent and eviction provisions and
not the removal permit requirements.
A second problem arises with exempt units. The Tenant
Relocation Assistance Law, Municipal Code section 4850 et seq.,
is intended to protect tenants displaced from their homes. It
covers the principal causes of eviction, owner-occupancy and
withdrawal or removal of units. However, since exempt units are
not covered by the Rent Control Law, there is nothing to prevent
excessive rent increases or other evictions without cause. In
some cases, substantial rent increases may cause the displacement
of tenants just as readily if they had been formally evicted.
The purpose of tenant relocation assistance is to protect all
tenants involuntarily displaced. Extension of the program to
cost-induced displacement and other evictions would further this
salient purpose.
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SUMMARY OF PROPOSALS AND ANALYSIS
A. Charter Amendment.
The Rent Control Board reports that there are 1,332 two and
three unit properties in the city, conta ining a total of 3, 249
units. Of these, 773 properties (58%) have been granted
exemptions under section 1801(0) (4) as of May 1, 1988i 559
properties (42%) remain subject to rent control. Another l8 or
so applications are pending. Of the 773 exemptions granted, an
undetermined number have expired because the landlord no longer
resides on the premises. However, lapsed exemptions are not
normally reported to the Rent Control Board. Under the current
procedure, it is reasonable to assume that most, if not all,
remaining two and three unit properties would apply for
exemptions in the future.
Three different proposals are put forward for the City
council's consideration. Their respective language appears in
Appendices A-I, A-2, and A-3 to this Staff Report.
Proposal 1. This version limits the exemption provided by
section l80l(c) (4) to rent and eviction controls. Landlords
would still be required to obtain removal permits from the Rent
Control Board prior to demolishing or converting their buildings,
pursuant to Section la03 (t) . In essence, this proposal writes
into the city Charter the Rent Control Board's repeal of
Regulation 5017.
until repeal of Regulation 5017, landlords with Section
1801(c} (4) exemptions could obtain a removal permit upon proof
that they had resided on the property for one year or longer. As
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its name implied, once removed, the owner was free from
restrictions on conversion or demolition. The Rent Control Board
repealed Regulation 5017 because experience had shown the
procedure could be used merely as a vehicle to withdraw units,
rather than protect the possessory interest of landlords. This
proposal would reaffirm existing Rent Control Board policy and
remove any doubt as to its consistency with the City Charter.
(For this reason, it has also been incorporated into Proposals 2
and 3 below.)
proposal 2. This proposal would repeal section l80l(c} (4)
for all two and three unit properties which did not have an
unexpired exemption on July 1, 1988, or an application for
exemption pending before the Rent Control Board on that date.
The exemption would expire when the current landlord ended his
residency in the building, unless a relative qualified for
exemption. Once an exemption lapsed, the building would no
longer be eligible for exemption under section 180l(c} (4). The
effect on three unit and less properties would be as follows:
(a) Qualifying single family homes would
continue to be automatically exempt under city
Charter section 1815.
(b) Exempt Units.
( i) Two and three unit properties, and
single family homes not covered by Section 1815, that
were exempt under section l80l(C} (4) on July 1, 1988,
will retain their exemption so long as the owner
meets the requirements of the section and Rent
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Control Board Regulations that were operative on July
l, 1988.
(ii) An application for exemption duly
filed on or before July I, 1988, shall be considered
under Rent Control Board standards applicable on the
date of application. If granted, the exemption shall
remain effective as if it had been issued on July 1,
1988.
(iii) The holder of an exemption under
parts (i) or (ii) may not transfer or assign the
exemption, except to a family member as defined in
City Charter section l806 (h) . In all other cases,
the exemption shall expire when the exempt
owner-occupier (a) ceases to be a 50% owner, or (b)
quits the property as his or her principal place of
residence. After an exemption for a property
expires, it shall no longer be eligible for
exemption.
(c) All other three unit and less properties
shall no longer be eligible for exemption. (Single
family homes would continue to be eligible for
exemption under section leIS.)
This proposal would terminate the exemption program, except
that currently exempted properties would be grandfathered in so
long as their exemptions remain valid. Once the owner vacates
the property, it would become recontrolled, and would not
thereafter be eligible for exemption. This feature protects the
expectancy interests of owners in possession. Accordingly, the
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exemption would terminate upon sale or transfer of the property
to other than a relative. This would not have a significant
effect on the alienability of properties because new 50% owners,
although not entitled to exemptions, could nonetheless evict for
owner occupancy pursuant to Section 1806(h} in most cases. It
could, however, affect the selling price of currently exempt
units because successors would not enjoy continued exemption. As
properties are sold over time, they would be returned to the
controlled housing stock.
proposal 3. This proposal is similar to Proposal 2, except
that a currently valid exemption would be transferable to any
successor owner. provision (iii) would be changed accordingly.
Under this version, a property which is currently exempt
would remain so as long as a 50% owner resided on the property.
It differs from Proposal 2 in that exemptions would be
transferable, along with the property, to successors. It has the
advantage of not affecting values of exempt properties. It has
the disadvantage of maintaining the distinction, indefinitely,
between currently exempt properties and those which failed to
qualify by July 1, 1988. Also, it would not result in the return
of two and three unit properties to the controlled housing stock
unless the property was no longer owner occupied.
The Rent control Board would be authorized to interpret and
implement these changes by appropriate regulation.
B. Tenant Relocation Assistance Ordinance.
The very purpose of rent control is to protect tenants from
excessive rent increases. This goal and the companion one of
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providing security of tenure are well accomplished in Santa
Monica. Yet, despite comprehensive protection from arbitrary
eviction contained in the Rent Control Law, tenants are
occasionally displaced through no fault of their own. In 1986,
the city Council joined a growing number of other jurisdictions
which extended some modicum of protection to evicted tenants.
This was thought especially necessary here because displaced
tenants face a dim prospect of finding suitable replacement
housing. They are usually uprooted from the community and forced
to relocate many miles away from family, friends, work, and
established social patterns.
Tenants residing in units which are exempt or otherwise
uncontrolled have, by definition, no protection under the Rent
Control Law. Under some circumstances, however, they are
protected by the Relocation Assistance Ordinance. But the most
common causes of displacement -- excessive rent increases -- are
not covered. Tenants in exempt uni ts are thus doubly
disadvantaged. They do not enjoy rent and eviction protection in
the first instance and are usually not eligible for relocation
assistance upon displacement. This sharp division in treatment
is not supported by any overriding community interest.
The most thorough analysis of displacement caused by
excessive rent increases appears in Legates & Hartman,
Displacement, l5 Clearinghouse Review 207 (1981). They explain
that I1cost-induced displacement is a major phenomenon, and that
total cost-induced displacement may equal or exceed displacement
attributable to [other causes]." Id. at 2l7. Displacement
caused by rent increases beyond the tenant's ability to pay is
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especially problematic among lower income tenants. See U. S.
Department of Housing and Urban Development, Displacement Report
(1979) ("low-income households -- who are already spending a
disproportionate share of their incomes on housing -- are much
more susceptible to price-induced displacement") .
other studies indicate the breadth of the problem. The
Seattle Office of Policy Planning estimated that during a five
year period, 25% of renter moves had been involuntary and that
more than half of those were cost-induced. More dramatic figures
are given in a study for the National Commission on Neighborhoods
(Dolbeare, 1978), which estimated that between 1970 and 1976
approximately 1.5 million urban households were priced out of the
rental market.
As to what level of rent increase ought to be considered
excessive, "there is no conceptual agreement on 'how much is too
much I what level, proportion of income, or amount or
proportion of increase over a given time constitutes enough of a
jolt that a household should be considered involuntarily
displaced." Displacement, supra at 2l6. Legates and Hartman
report that low-income households which "expected a 20 percent
increase in rents were almost three times more likely to move
than those who expected rents to be stable." Id. But, since any
rent increase, even those under rent control, may prompt a tenant
to move, it is not easy to delineate a bright line definition for
"cost-induced displacement." Rather, the amount, whether it be a
fixed percentage or tied to the CPI (e.g., 2 x CPI) , is a policy
choice to be determined by the City Council. The proposed
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language in Appendix B recommends using a standard of twice the
Consumer Price Index or 10%, whichever is greater.
While increases in excess of the amount specified by the
City Council can be justified in many circumstances, such as in
the case of extensive capital improvements, the impact on the
tenant is the same. If displacement results, relocation
assistance ought to be paid. The landlord is then free to impose
the higher rent on successor tenants. This scheme is independent
of the Rent Control Law and is not administered by the Rent
Control Board.
One proposal is put forth for City Council consideration.
The proposal amends the Relocation Assistance Law in three
principal respects.
First, Municipal Code section 4851 is amended to require
relocation assistance for cost-induced displacement from a
Section l80l(c} (4) exempt unit, i.e., where a tenant vacates
because of an excessive rent increase. Since only rent increases
of significant magnitude to cause displacement would be covered,
the ordinance should define a threshold by reference to some
easily ascertainable and objective numerical figure. The
proposal recommends using a standard of twice the Consumer Price
Index or 10%, whichever is greater. only displacement caused by
such rent increases would trigger relocation paYments. Thus, the
ordinance would be appl icable only where the tenant qui ts the
premises within sixty (60) days of the operative date of the rent
increase.
Second, Municipal Code Section 4851 is amended to provide
for relocation assistance in the event of any eviction, other
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than those deemed for "good cause" as specified in City Charter
Section 1806. While most cases of involuntary displacement would
be covered by the existing ordinance, this version would fill in
some of the gaps that are left. Again, the personal and social
cost of displacement are typically the same regardless of the
reason for eviction.
Eviction for any of the "good cause"
provisions in the Rent Control Law, other than owner-occupancy
and removal, would be exempted from the Relocation Ordinance
because eviction may be considered self-induced in those cases.
Finally, Municipal Code sections 4852, 4853, 4854, and 4855
are amended to implement procedurally the amendment to section
4851.
RECOMMENDATION
It is respectfully recommended:
1. That the City Council direct the City Attorney to
prepare necessary resolutions to submit Proposal 3, contained in
Appendix A-3, to the voters at the November general municipal
election.
2. That whether or not the City Council pursues the first
recommendation, the City Council direct the City Attorney to
prepare an ordinance as proposed in Appendix B.
PREPARED BY: Robert M. Myers, city Attorney1/
Joseph Lawrence, Assistant City Attorney
Barry Rosenbaum, Deputy city Attorney
1/ The city Attorney thanks Professor Karl Manheim for his
assistance in preparing this staff Report.
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APPENDIX A-l
TEXT OF PROPOSED CHARTER AMENDMENT
Proposal 1.
section l80l(c) of the city Charter is amended to read as
follows:l/
(c) Controlled Rental Units. All residential units in the
City of Santa Monica, including mobile homes, and mobile home
spaces, and trailers and trailer spaces, except single family
homes to the extent provided for in section 1815 and those units
found by the Rent Control Board to be exempt under one or more of
the following provisions:
(l) Rental units in hotels, motels, inns, tourist
homes, and rooming and boarding houses which are rented primarily
to transient guests for a period of less than fourteen (14) days.
(2) Rental uni ts in any hospi tal, convent,
monastery, extended medical care facility, asylum, nonprofit home
for the aged, or dormitory owned and operated by an institution
of higher education.
(3) Rental units which a government unit, agency, or
authority owners, operates, manages, or in which governmentally
subsidized tenants reside only if applicable federal or state law
or administrative regulation specially exempt such units from
municipal rent control.
l/ Additions are indicated by underlining.
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(4) Rental units in owner-occupied dwellings with no
more than three (3) units. For purposes of this subsection:
( i) The term "owner" means a natural person
who owns a fifty percent (50%) ownership interest in the building
and resides on the property as his or her principal place of
residence.
(ii) An exemption under this subsection shall
expire by operation of law when the owner ceases to reside on the
property as his or her principal place of residence. Thereafter,
all units on the property shall be subject to all provisions of
this Article.
(iii) An exemption under this subsection
(c) (4) shall only exempt the property from sections l804, l80S,
and 1806 of this Article. No unit exempt pursuant to this
subsection shall be demolished, converted, or otherwise removed
from the rental housing market without a permit obtained in
accordance with section 1803 (t) . This subsection (c) (4) (iii)
shall apply to any unit regardless of when the exemption was
obtained and is declarative of the law in effect on the date that
it was added to subsection (c) (4).
(5) Rental units and dwellings constructed after the
adoption of this Article; this exemption does not apply to units
created as a result of conversion as opposed to new construction.
(6) Where a unit is actually used for purposes of
providing on a nonprofit basis, child care or other residential
social services in accordance with applicable laws. This
exemption shall expire when the use upon which exemption is based
ceases. This exemption shall only apply to units as they become
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vacant and shall only operate to allow the specified use without
the necessity of obtaining a removal permit under this Article.
This exemption shall not be construed to authorize the eviction
of any tenant nor to authorize the charging of rent in excess of
that permitted under this Article. The Rent Control Board may
adopt regulations to determine whether a unit qualifies for an
exemption under this section.
(7) Exemptions are not automatic but shall be
granted by the Rent Control Board upon application by the owner
pursuant to Rent Control Board rules, provided that if the Rent
Control Board does not act upon a completed application for
exemption within ninety (90) days of its filing, it shall be
deemed approved.
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APPENDIX A-2
TEXT OF PROPOSED CHARTER AMENDMENT
Proposal 2.
Section 1801(c} of the City Charter is amended to read as
follows:
(c) Controlled Rental Units. All residential units in the
City of Santa Monica, including mobile homes, and mobile home
spaces, and trailers and trailer spaces, except single family
homes to the extent provided for in Section 1815 and those units
found by the Rent Control Board to be exempt under one or more of
the following provisions:
(1) Rental units in hotels, motels, inns, tourist
homes, and rooming and boarding houses which are rented primarily
to transient guests for a period of less than fourteen (14) days.
(2) Rental uni ts in any hospi tal, convent,
monastery, extended medical care facility, asylum, nonprofit home
for the aged, or dormitory owned and operated by an institution
of higher education.
(3) Rental units which a government unit, agency, or
authori ty owns, operates, manages, or in which governmentally
subsidized tenants, reside only if applicable federal or state
law or administrative regulation specially exempt such units from
municipal rent control.
(4) Rental units on properties which had been
granted exemptions by the Rent control Board on or before July 1,
1988, on the basis that the property was an owner-occupied
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dwelling with no more than three (3) units, and which were owner
occupied on July l, 1988. For purposes of this subsection:
( 1., ) The term "owner" t 1
means a na ura person
who owns a fifty percent (50%) ownership interest in the building
and resides on the property as his or her principal place of
residence.
(ii) An exemption under this subsection shall
expire by operation of law when the owner ceases to reside on the
property as his or her principal place of residence. Thereafter,
all units on the property shall be subject to all provisions of
this Article.
(iii) An exemption under this subsection is
not transferable to successor owners and shall expire upon sale
or transfer by whatever means of the property to any person or
entity other than members of the owner I s family as defined in
Section 1806(h) of this Article provided that the family member
assumes residency on the property and applies for a transfer of
the exemption in the manner required by the Rent Control Board
within ninety (90) days of the sale or transfer, and meets the
other requirements of this subdivision.
(iv) In the event of expiration of an
exemption pursuant to this subsection, the owner of the property
shall report that fact to the Rent Control Board within thirty
(30) days in the manner required by the Rent control Board. Once
an exemption has expired no further exemption under this
subdivision shall be granted.
(v) Properties for which an application
pursuant to this subsection was pending on July 1, 1988, and is
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thereafter granted by the Rent Control Board shall, for purposes
of this subsection, be treated as if the exemption had been
granted on July 1, 1988.
(vi) An exemption under this subsection shall
only exempt the property from sections 1804, 1805, and 1806 of
this Article. No unit exempt pursuant to this subsection shall
be demolished, converted, or otherwise removed from the rental
housing market without a permit obtained in accordance with
Section 1803 (t) . This subsection (c) (4) (vi) is declarative of
the law in effect on the date it was added to subsection (c) (4) .
(vii) Subsection (c) (4), as amended, shall
apply to any unit regardless of when an exemption was obtained.
(5) Rental units and dwellings constructed after the
adoption of this Article; this exemption does not apply to units
created as a result of conversion as opposed to new construction.
(6) Where a unit is actually used for purposes of
providing on a nonprofit basis, child care or other residential
social services in accordance with applicable laws. This
exemption shall expire when the use upon which exemption is based
ceases. This exemption shall only apply to units as they become
vacant and shall only operate to allow the specified use without
the necessity of obtaining a removal permit under this Article.
This exemption shall not be construed to authorize the eviction
of any tenant nor to authorize the charging of rent in excess of
that permitted under this Article. The Rent Control Board may
adopt regulations to determine whether a unit qualifies for an
exemption under this Section.
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(7) Exemptions are not automatic but shall be
granted by the Rent Control Board upon application by the owner
pursuant to Rent Control Board rules, provided that if the Rent
Control Board does not act upon a completed application for
exemption within ninety (90) days of its filing, it shall be
deemed approved.
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APPENDIX A-3
TEXT OF PROPOSED CHARTER AMENDMENT
Proposal 3.
Section l80l(c) of the City Charter is amended to read as
follows:
(c) Controlled Rental Units. All residential units in the
city of Santa Monica, including mobile homes, and mobile home
spaces, and trailers and trailer spaces, except single family
homes to the extent provided for in section 1815 and those units
found by the Rent control Board to be exempt under one or more of
the following provisions:
(l) Rental units in hotels, motels, inns, tourist
homes, and rooming and boarding houses which are rented primarily
to transient guests for a period of less than fourteen (l4) days.
(2) Rental units in any hospital, convent,
monastery, extended medical care facility, asylum, nonprofit home
for the aged, or dormitory owned and operated by an institution
of higher education.
(3) Rental units which a government unit, agency, or
authori ty owns, operates, manages, or in which governmentally
subsidized tenants, reside only if applicable federal or state
law or administrative regulation specially exempt such units from
municipal rent control.
{4} Rental units on properties which had been
granted exemptions by the Rent Control Board on or before July 1,
1988, on the basis that the property was an owner-occupied
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dwelling with no more than three (3) units, and which was owner
occupied on July 1, 1988. For purposes of this subsection:
(i) The term "owner" means a natural person
who owns a fifty percent (50%) ownership interest in the building
and resides on the property as his or her principal place of
residence.
(ii) An exemption under this subsection shall
expire by operation of law when the owner ceases to reside on the
property as his or her principal place of residence. Thereafter,
all units on the property shall be subject to all provisions of
this Article.
(iii) An exemption under this subsection is
trans ferable to successor owners, provided that the new owner
assumes residency on the property and applies for a transfer of
the exemption in the manner required by the Rent Control Board
within ninety (90) days of the sale or transfer, and meets the
other requirements of this subsection.
(iv) In the event of expiration of an
exemption pursuant to this subsection, the owner of the property
shall report that fact to the Rent Control Board within thirty
(30) days in the manner required by the Rent Control Board. Once
an exemption has expired no further exemption under this
subdivision shall be granted.
(v) Properties for which an application
pursuant to this subsection was pending on July 1, 1988, and is
thereafter granted by the Rent Control Board shall, for purposes
of this subsection, be treated as if the exemption had been
granted on July 1, 1988.
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(vi) An exemption under this subsection shall
only exempt the property from Sections 1804, laOS, and 1806 of
this Article. No unit exempt pursuant to this subsection shall
be demolished, converted, or otherwise removed from the rental
housing market without a permit obtained in accordance with
Section 1803 (t) . This subsection (c) (4) (vi) is declarative of
the law in effect on the date that it was added to subsection
(c) (4) .
(vii) This subsection (c) (4), as amended,
shall apply to any unit regardless of when an exemption was
obtained.
(S) Rental units and dwellings constructed after the
adoption of this Article; this exemption does not apply to units
created as a result of conversion as opposed to new construction.
(6) Where a unit is actually used for purposes of
providing on a nonprofit basis, child care or other residential
social services in accordance with applicable laws. This
exemption shall expire when the use upon which exemption is based
ceases. This exemption shall only apply to units as they become
vacant and shall only operate to allow the specified use without
the necessity of obtaining a removal permit under this Article.
This exemption shall not be construed to authorize the eviction
of any tenant nor to authorize the charging of rent in excess of
that permitted under this Article. The Rent Control Board may
adopt regulations to determine whether a unit qualifies for an
exemption under this section.
(7) Exemptions are not automatic but shall be
granted by the Rent Control Board upon application by the owner
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pursuant to Rent Control Board rules, provided that if the Rent
Control Board does not act upon a completed application for
exemption within ninety (90) days of its filing, it shall be
deemed approved.
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APPENDIX B
TEXT OF PROPOSED AMENDMENT TO TENANT
RELOCATION ASSISTANCE ORDINANCE
Proposal.
Santa Monica Municipal Code Sections 4851-4855 are amended
to read as follows:
SECTION 485l.
fee shall be paid
Chapter:
(a) By any landlord who terminates a tenancy for any of the
following reasons:
(i) The landlord seeks to withdraw all rental housing
units from the rental housing market as provided in Government
Code Section 7060 et. seq.
(ii) The landlord seeks to recover possession of a
rental housing unit pursuant to Section 1806(h} or Section
l806(i) of the City Charter.
(iii) The landlord seeks to recover possession to
demolish or otherwise remove a rental housing unit from
residential rental housing use after having obtained all proper
permits from the city.
(iv) For any unit exempt from Article XVIII of the
City Charter pursuant to City Charter section l80l{c) (4), the
landlord seeks to recover possession of a rental housing unit for
any reason other than those specified in sections 1806(a) through
lB06{g) inclusive, of Article XVIII of the City Charter.
When Relocation Fee Required. A relocation
in accordance with the provisions of this
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(b) By any landlord of a unit exempt from Article XVIII of
the city Charter pursuant to city Charter Section l801(c) (4)), if
a tenant vacates such unit within sixty (60) days of receivin9 a
rent increase if the rent increase t0gether wi th other rent
increases, if any, on the tenant or tenants in the unit during
the immediately preceding twelve (l2) month period, exceed the
greater of 10% or twice the Consumer Price Index ("CPI") for the
preceding calendar year. For purposes of this subsection, the
CPI shall mean the index for Urban Wage Earners and Clerical
workers for All Items for the Los Angeles/Long Beach/Anaheim
statistical area, as published by the United states Department of
Labor, Bureau of Labor statistics.
The fee required by this Chapter shall be due and payable
to a displaced tenant whether or not the landlord actually
utilizes the rental housing unit for the purposes stated in the
notice of eviction.
SECTION 4852. Notice to Tenants Being Displaced. Any
notice to terminate a tenancy which is served upon tenants for
any of the reasons set forth in section 485l(a) shall be
accompanied by the following en the ferm provided by city:
(a) A written statement of the rights and obligations of
tenants and landlords under this Chapter.
(b) 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.
(c) A written statement that the landlord has complied
with section 4854. If the landlord has complied with section
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4854 by obtaining City approval of a Displacement Plan, a copy of
the Displacement shall accompany the written statement.
A landlord who is required to pay relocation assistance
pursuant to section 4851 (b) shall comply with the requirements
contained in this Section within ten (lO) days of receiving the
tenant's termination notice.
SECTION 4853. Amount of Relocation Fee. The amount of
relocation fee payable pursuant to the provisions of this Chapter
shall be determined as follows:
(a) The relocation fee shall be determined according to the
size of the rental housing unit as follows:
Housing Unit Size Relocation Fee
Bachelor or Single $2,000.00
One Bedroom $2,500.00
Two or More Bedrooms $3,000.00
(b) If the rental housing unit from which the tenant
vacates is furnished, $250.00 shall be deducted from the amount
set forth in subdivision (a) of this Section. For purpose of
this subdivision, a rental housing unit shall be considered to be
furnished if the landlord has provided substantial furnishings in
each occupied room of the rental housing unit.
(o) If one or more of the displaced tenants is a senior
citizen or disabled person, or is a tenant with whom a minor
child resides, who occupied the rental housing unit on or before
the effective date of this Chapter, an additional $1,000 shall be
added to the amount set forth in subdivision (a) of this Section.
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SECTION 4854. Additional fee for Required Counseling.
(a) For each rental housing unit from which tenants are
displaced for any of the reasons set forth in section 4851, the
landlord shall pay a fee to the City in the amount of two hundred
fifty dollars ($250.00) to be used by city to pay for counseling
or other assistance required by displaced tenants as a result of
displacement.
(b) A landlord shall pay this counseling fee prior to
service of a notice to terminate tenancy when the relocation fee
is required to be paid pursuant to section 4851(a) or within ten
(10) days of receiving a tenant's termination notice when the
relocation fee is required to be paid pursuant to section
485l(b).
(c) In lieu of the fee required by Subdivision (a) of this
section, a landlord may prepare a Displacement Plan which must be
approved by Community and Economic Development Department. The
Displacement Plan shall identify the special needs of the
displaced tenants, identify the types of assistance that will be
provided and include a commitment to pay for any such assistance.
At the time of submitting the Displacement Plan to the City for
review and approval, the landlord shall pay a fee to the City for
such review and approval in the amount of one hundred dollars
($100.00) for each rental housing unit.
(d) The Displacement Plan must be approved by the
Communi ty and Economic Development Department within the same
time frame set forth in subsection (b) of this section.
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SECTION 4855. Deposit of Relocation Fee into Escrow.
(a) The relocation fee required by this Chapter shall be
placed in an escrow account prior to service upon any tenant of a
notice to terminate tenancy for one of the reasons set forth in
section 4851(a) or within ten (10) days of receiving a tenant's
termination notice when the landlord is required to pay the
relocation fee pursuant to Section 4851 (b) . All costs of an
escrow opened pursuant to the provisions of this Section shall be
borne by the landlord.
{b} The escrow instructions shall provide that monies
deposited in the escrow account shall only be distributed to
displaced tenants in accordance with the instructions of the
landlord and that no monies deposited in escrow may be returned
to the landlord without the written approval of the city.
(c) In lieu of deposit of the relocation fee in an escrow
account, a landlord may deposit the fee in another account
approved by the city.
rmd733jhpca
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July l~). l'JQP. ~~~9t., II-~
Fr~~: Vr. c. R. ndVP~r~rtJ 1506 A Pr11cetc~ St., Sart~ Va~lca. Cal.t 93ACA~ ~
To Sdr~~ ~onlca Courcil ~~~ lent LOdrd All ~e~bers _ _ _ _ _ _ _
QitS Cl(>rk~ ~;L,ff, City \'01 '~i f'r. City At~,~{. Int('rl'~ h,~l r"rtlf':~
--cny 01' &G ~<c ~f,or, lea, 1695 Vau St., Sc'.n">. ~fo'11.ca, Cal., ;::;401.
Reference: 'AJr lettpr JuJ.,y 11, 1"'1,} ,
Subjl'ct: ll-A, Ju1~.. 1'1 !I;,pr ra 0f thr C0uncil - (1" 'J'rl'~[", llupl(>x,
Owper Oc~u~~P~ Exe~rtlor8 ard (2) ~ena:t ?elocatloP ASsIst&nCe Law.
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Dear Pernic inus l'E rsuaders:
Least I be den:n:, or not aVd.l1able ftn "2 !"JUtE'3" to Sf'f!<lk ., ~~' ';,'UP0.
evenIng - deff'r 1-~ - -t' ne elF€' - or fall to 'wcl'r:-" .y'-; tr.t' full. Intent
on thIS IS.ue - let ne ?RY to clearly state my oplPlon:
1. ThE' (','" --tieY L'.r 3 unit-to or If'SS sf.auld not be t 1lpered I'.ill< U""('t'
our currprt Rent Cr)f trol Law. If arytr.irr,~ tlw law s ('UC ~ 'r, ~Crp llbe,;,',1
to f'xempt un to 6 or 10 ur.its, or fully L,' C::-~L.r rer tal stock fc:rever.
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This will tf'!l:d tC' "'ot ('O'!!....' e ;1l1'.' 'j,' '''\\''''If'l';\-dP ('f at If'af't "'~"f> of OUT' rr>r,ta]
stock w~cre G 1f'Ycotl, r':J <'ire tre ledst profltaLle. least Ol.'E_,illlZec, .l8~t
~lfflc~lt to 5ustco,;"n. Show 'riP <inJO'1E: w>-tQ gets "L':'('U" ."j _'C '-'1' t....'J ur:lts.
Then, show U:J <.111. \~'(' ;',or,tt rr'il(; . 'x f1l11:11(" r,(,U~lnl~ arn ,~,1J th" ref tape
that ~0es Wltt ~t,
? A tpr.nt relOCdtlor a~Rlsta~ce IctW IS unronstlt~tln'1~l :s a~ €~t~"
Into cortract lciw - t~:::"lf' ::if c. 1e :.::oe - (> 1:...;,,,,1 (c., ~ L~f'r, t.':":"'l l' d";;' .:.C'r:t...il
arrepli1~ - J:'o-r.tI1 by nor t h, tf'rl1 fc: tp c'" - ,'. r tevp r,
3. Vi~~~t h<-l~ "l"iV t~r-'1nt rort1. or tPi--r- Cil::pr U-:-J01" tc ~0t to re-r1uce ('\ur
populatIon, bUIld :'~c' 'r;:unt,Ldi ao~~ l:-:t, I a'!..ll v ~a. te ::,ar.klnC aT.d t ral f.:.c "roble];,s,
se',I,L.re prublf:::J.s. b'.lJ.l~ - rerdb - 01 1'c-1'er~t Va"ci.nc..:.e.J (t'J J.dW), WJ'c tever?_.
A. I rdve OT,}y tnf'fJy <;c.mr,f'(l ti-tc ~t"ff re"ort fer thIS I'leetln~ (art' iEY)
frOM the CIty Atty d~d stdff (7-1~-C8). SO far, I Cdnr~t ~ee art real
protf-':;tIOrl or <:die gUd-Ie'S tOle Vl' l'loperty GI'i['l.:r u cLr.y '-'1' t',e~:e 1)::,".].:0<:;,tl:.;.
I canrct set' t~f' rPFd f~r '0~t ~f ~~e t~Tp~t pr~tectIcrc 01' t~f' artiflCIa.l
rreSerV2..tl,~n c:!'> (,L,scletp no:':'~ I~ e: s~,oc1.:. pn'r atec 'l>Y t:--,f ::'<."!~-;ltlb!:' ,,' thIS
stdff rc;.ort. 1"'If'rC CLirI:lot be 'l'1Y f(,.l i-1::lrr.cl"Y ,.1' L;; r"'f'~' 1'1 c~r Re"'t
Law or 1,[ prcpGsah~ c-f :.ius 2Jrt, St~ff ~E'::ort 7-1'~-e1J, u.!,_~ll w~ )!,,-ve ~~le_a.ct
2 of thf' ) rH"r"ber~ ur tt~f' tJent >>ctlrd c! the cu' ~prvHt.ivl' IdIth whu <1.1t. ;leCi.l
Prcncrt'rGWners rn'''Y ti"f' l~tf>r:n. -- ------------
_.. If. __ ~ ____-'
5. ':'r-,ere r-ay be &.bc...ses In t!cp :-er.tal ch::rFes <in::' serVl~es rer:c.erec on
I'uplex, TrIplex, E'O'lr::-lex€s or :ulld:.r~& ill-- to Ie ur;lts arc iDle. ~Ut, P~"ASE,
C!cr't t_lrrlsr :ell ':'Hlnr>n: t.".. thf' C<.;."'l(' bru~h. eW'1pr~~ of tt'ese :'1"'lall ur..:ts can.
only co-~etp ~lth thp-re-~-cf-;ur 6c~trol:e~ Rertal ~~r~et. T~ey carnot ab~se
wh;:;.t th2.~ c:)ntrollec. "',arlret h2L to offpr. Ti,€lr ter'~HtD L~ve too "Jar';",
alterr':ltlVef: to ?;0rV 'N1:" 'IIlth-:--''...lt the lrtf'rVf>"',tIO~' of a OlE-See CIty G:Jvern-;Jert.
6. ~~st of the cw"ers of these s~allf'r urlts are ~or.est hard W,rklnF,
COL3Clentious pecple try.:.~'[, tc :JICiVIde ~ bo'~e fer ther.~elves an:-:. f~r 8,,'riers
they 'T1d~Y" .8'~lu.l.e tr'.l' hor~e with. Th<,t lun't ed.~1Y - not I'l'<irl,; ,u; l',l.~'j a~ it
may SPPI". Vrny f'''culG c';' smcdl nrnpert;r c.vrpr ever bf' t'rreatf''led w:tr, t.fr,~r.lcal
relecatlcn fees :''::''::'r a, Cb.sCUH' ~-ouroe, lnvclur:tary tee :::.r,t ta.keovers arod
cr~rjve r~.lcr'~. Aftp :::' ,ill, ......h.' I {l ~ (\ thf' 11 cert 1 ve tti Cio"f.i ~lr:)rE rt.y. 'N!lCrJ ~ t rr.a.y
be "1'-'{"2.ily" tal<.e-::. l.;Y othprs P[rcl\.':~ h [cvermrE'r:t aC'tIor.? _ _ _ _ _"
....... 7. S~rely, b.e :":2'1"te1' of s""d.ll O'Nr.e:.::-s are 11'i:ltef (Pg. 2 of your Staff
Peport lfls'/nn). ':.'it'.'l car r,r'v(r f~U)W to becuilP a f":d.J0r ~~n'<lt t:: thf' l~f'rprdl
tenantjrprter populatlcr. They T1Fht frcw to own more unlt~ -- rr:ore houslrg
for ('VcIJ"orp -- 11,' bUl',] 11 r; ii' ,;T.", :l'I'J~: J,I I 11'; ~"'/".T ',": r '''1(''"' ..e......' r,.1 'x<>d
- ~,/;.. ... \... -.... - L..... .i...J -'...... I .I.............A. .... -L c;..L ~ .
The sJ'Jall OWIJe:!' m"'p,rls al::' th.~ r.e If ;:~:-l enc::J:l:.::'af'e....E':"~ he ~1'G'.t c2>{' ~c..ster. II ~
Our City C c;r.cIl! Hr>r.t :Ocare/ ;"dn~n.,'tr,dcr:.: [-'t, <".cl. sho :1. ",Crd.p\drl':" :lirt'.....prrt.... i
on C ').. t ro 1 l' r C" t ,".,.'" ~ u~ - 1- - - ~ ' -- -
" -<' ,l' ~ ;- ~.-, I: ~ r _:: l....':..'9_ 0.... . "5;'" drc :r:-~ ,...~':"'~ .J?-Y" '{ ~ nl- C t''':. ~ f'I r ~ .'-l..:f0_Vf' n:'l1P n"L cj
enac ~e~ rel~Cu.~h fef!~>. ~r.CEf,~::"Y ~~ '1 --.;:;;z~
'---- \lliUi.: 1'4 en"~.D'O.~. VIJ .
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