SR-407-000-02 (2)
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CC: DF: KKS : dvm
City Council Meeting 4/19/88
APR 1 q 19B~
Santa Monica, California
...
TO: Mayor and city council
FROM: Council Member David B. Finkel
SUBJECT: Discussion of 5B 1784
It is requested that Council discuss opposition to SB 1784
(Royce).
Under current law, an owner wishing to go out of
business under the Ellis Act must withdraw all rental units from
the rental market at the same time. This bill would permit an
owner seeking to occupy a unit to withdraw a single unit from the
rental market pursuant to the Ellis Act. This bill undermines
the owner occupancy restrictions in the Rent Control Law. If
enacted, the bill would pre-empt Section 1806 (h) of the Charter,
which restricts owner-occupancy eviction to owners with more than
fifty percent interests, among other restrictions.
The bill would also prohibit the City from restricting the use of
agents or delegation of authority in connection with the
withdrawal of units from rental use under the Act. Because a
withdrawal binds all owners to restrictions on the subsequent use
of the property, most cities require the signatures ot all owners
on an application to withdraw.
Further, the proponents of the original Ellis bill made a firm
commitment to Santa Monica representatives, when the Ellis bill
language was being negotiated, not to seek withdrawal of less
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5
APR 1 9 1988
.
than all the units of a building from the rental market if the
owner chose to go out of the rental business. Hence sa 1784 is,
in effect, a breach of that promise.
(SB1784)
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I
LEGISLATIVE BILL TEXT
<C}1984 BILLTRAK-CIM
ELECTRONIC DATA SYSTEMS
5 E N Ft T E
B ILL
f 784
AMENDED IN SENATE MARCH 10, 1988
Introduced by Senator <EllIs> (ROYCE)
January 19, 1988
An ect to 8Mend SectIon 7060.7 of, and to add SectIon
7060.8 to, the Govern~ent Code, relatIng to real
property.
LEGISLATIVE COUNSEL'S DIGEST
S8 1784, as aMended, <EllIS> {ROYCE]. ReSIdential real
property: regulatIon.
EXi~tlnQ law, with certaIn ey.ceptions, prohIbIts publIC
entItles frOM COMpelling owners of reSIdential real property to
offer or contInue to offer the property for rent or lease.
However, eXIsting Jaw perMits a publIC entIty with rent controls
1n effect to restrIct the right of 6 landlord to WIthdraw
reSldentJal aCCOMModatIons frOM the rental Market In accordance
with statutory conditions. Existing law perMIts these
restrIctions to include a requireMent that all of the rental
aCCOMModatIons, as defined, be WIthdrawn fro~ the rental ~arket
in order to Withdraw any of the rental ecco~~odation5 at a
particular location.
ThiS bIll would preclude these restrictions frOM reqUIrIng
WIthdrawal of all the rental aCCOMModatIons at a particular
locatIon fro~ the rental Market 1n order to per~lt ~lthdrawing a
partIcular unIt for occupancy by an owner of the property. The
bIll would also prohIbIt publIC entItles fro~ restrIctIng the use
of agents or delegation of authorIty, as aMong coowner! of
reSIdentIal real property, in connection with exerci!lng any
rIQht or perfOrMIng obligations under the above-descrIbed
statutory prOVISIons.
Vote: MaJorIty. ~pproprlatlon: no. FIscal COMMIttee: no.
State-Mandated local prograM: no.
The people of the State of California do enact as follows:
,
SECTION I. Section 70S0.7 of the Govern~ent Code 15 a~ended
to read:
7060.7. It 15 the Intent of the Legislature 1n enacting thiS
chapter to supersede any holding or portIon of any holding 1n
Nash v. C1ty of Santa Monlca. 37 Cal. 3d 97 to the extent thai
REPORT DATE: 04/11/88
581784
PAGE
2
the holding, or portion of the hold1ng. conflicts ~lth thiS
chapter, so as to per~lt landlords to go out of bus1ness.
However, thiS chapter is not otherwise Intended to do any of the
follow1ng:
< < 1 )}
[<A)] Interfere with local govern~ental authority over land
use, including regulation of the conversion of eXisting hous1ng
to condo~ln1u~s or other subdiVided Interests.
{<2>)
[es>] Override procedural protect1ons des1Qned to prevent
abuse of the right to eVict tenants.
<<3>>
[(C)] Per~it an owner to withdraw fro~ rent or lease less than
all of the accol'lModatlons, as def1ned by paragraph (I) or <2> of
aubdlvlsion (b) of Sectlon 7060, except for the purpose of
cO~Menclng occupancy of a reSldent1al rental unlt by an owner of
the reSidential real property.
(<4))
[(0)] Grant to any publiC entity any power which 1t does not
possess independent of thIS chapter to control or establish a
'yste~ of control on the price at whIch acco~~odatlon5 ~ay be
offered for rent or lease, or to dl~lnish any such power whlch
that publ1C entIty ~ay possess. except as speCIfically prOVided
in thls chapter.
(<5))
[<E)] Alter In any way either Section 65863.7 relatlng to the
withdrawal of acco~~odatlons which COMprise a ~ob1lehoMe park
frOM rent or lease or subd1vision <f) of Section 798.56 of the
CIVIl Code relatinQ to a change of u~e of a ~oblleho~e park.
SEC. 2. Sect10n 7060.8 15 added to the 6overn~ent Code, to
re/lld:
70S0.S. No publIC entIty, as defJned In SectIon 811.2. shall
li~lt the use of agents or restrlct delegatlon of author1ty as
a~onQ owners of Interests 1n reSIdential real property speCIfIed
In Sect10n 682 of the C1V1I Code, for purposes of exerclsIng any
rlQht or perfor~lng any oblIgatIon under thiS chapter.
LEGEND: <Deleted text> rNEW TEXT]
END OF BILL TEXT