sr-120611-7b10
City o City Council Report
Santa Monica'
City Council Meeting: December 6, 2011
Agenda Item: -7- B
To: Mayor and City Council
From: Marsha Jones Moutrie; City Attorney
Subject: Ordinance for First Reading Amending Relocation and Tenant
Harassment Ordinances and Related Information Requested By
Council
Recommended Action
Staff recommends that City Council introduce for first reading the attached
ordinance increasing permanent relocation benefit amounts; expanding the
eligibility of households with seniors, children or disabled for increased benefits,
and extending tenant harassment protections to all tenants covered by just cause
eviction rules.
Executive Summary
At its meeting of September 13, 2011, Council directed staff to draft an ordinance
for first reading that would:
1) increase permanent relocation benefits;
2) change the eligibility requirements for the permanent relocation
enhancement for seniors, disabled and families with children;
3) correct certain code section references in the relocation ordinance;
4) extend tenant harassment protections to all tenants covered by just
cause eviction rules.
That ordinance is attached.
This report also addresses certain questions posed by Council at the September
13 meeting related to relocation benefits and other matters of landlord- tenant
relations.
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Background
City law requires landlords to pay permanent relocation benefits to tenants who
are evicted in certain situations including Ellis Act withdrawals and owner-
occupancies. Council last increased the amounts of these benefits (other than
annual CPI increases) in 2007.
Discussion
Changes to Relocation and Tenant Harassment Ordinances
The attached proposed ordinance would amend the City's rules for permanent
relocation assistance for residential tenants in several respects. It would also
expand the definition of tenants who are protected under the City's tenant
harassment ordinance. And it would correct certain code references. The
proposed changes are as follows:
1. Increase amount of permanent relocation benefits
The proposed new amounts are as follows:
# of
Bedrooms
Proposed regular
relocation assistance
Proposed relocation assistance
for households with seniors,
children or disabled
0
$7,800
$8,900
1
12,050
13,850
2+
16,300
18,750
2. Change The Eligibility Criteria For Higher Benefits
Under existing law, to be eligible for higher relocation benefits due to seniors,
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children, or disabled tenants, the tenancy must have been in place since
November 1999. The proposed ordinance as requested by Council would
remove the date requirement and apply the increased benefits to all such
households.
3. Amend The Existing Ordinance To Reflect New Code Sections
The proposed ordinance corrects several inaccurate code section references in
Municipal Code Section 4.36.020(a)(2) to reflect the current and correct sections
of the City Charter for evictions that trigger permanent relocation. Specifically,
Municipal Code Section 4.36.020 is amended to reference Charter Sections
1806(a)(8) and (9), and 2304(a)(8) and (9).
The proposed ordinance also changes the term "remove" to "withdraw" in
Municipal Code Section 4.36.020(a)(3) to clarify that, in the wake of Measure RR,
all tenants whose units are withdrawn from rental use are eligible for benefits
regardless of rent control status.
4. Extend Tenant Harassment Protections To All Just Cause Tenants
Under existing law, only units under rent control are included. The proposed
ordinance extends the protections of the tenant harassment ordinance to all
tenants with just cause eviction protections, a group recently made larger by the
passage of Measure RR.
Additional questions posed by Council
1. Domestic partners. Council inquired whether the protections of domestic
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partnership might be extended to non -rent controlled tenants in the wake of
Measure RR. That change is unnecessary because Municipal Code Chapter
4.60 already covers all tenants regardless of rent control status
2. Interruption of housing services. Council inquired about extending the
protections of Municipal Code Section 4.32.100(a) (regarding disruptions of
housing services) to non -rent controlled tenants. That section already prohibits
housing service disruptions with respect to all tenants regardless of rent control
status. So, the change is unnecessary.
3. Relocation procedure. Council inquired as to the procedures that follow a
permanent relocation, with a concern of property owners re- renting units at
market rates after paying the required benefits to the outgoing tenant. The two
most common such scenarios are when the owner withdraws the property from
the rental market under the Ellis Act and owner occupancies. A third scenario is
when the owner otherwise withdraws a unit from residential rental use, as
allowed by the Ellis Act.
As to Ellis evictions, state law mandates the procedures and limits the potential
penalties against owners who re -rent vacated units within various times following
the eviction. The Rent Control Board already has adopted regulations consistent
with the state law requirements and staff does not believe that additional tenant
protections could be adopted.
4. Disclosures regarding condominium status. Council inquired whether the
City could require additional disclosure to incoming tenants as to a unit's
potential status as a condominium, due to a concern that tenants may be
charged by the property owner for condominium assessments the following year.
Staff is not aware of any legal requirement that tenant pay such fees; and if an
owner seeks to charge them, the requirement should be addressed in the written
lease. Nor is staff aware of such assessments on tenants taking place. If this
problem exists, the City could use its police power to address it, but it would be
advisable to do so only upon a record.
5. Temporary relocation per diem amounts. Council inquired whether the
current per diem amounts required for temporary relocation expenses are
adequate in light of current expenses for temporary housing and related costs.
These per diem amounts are adjusted annually for inflation by the percentage
change in the Consumer Price Index as required by Municipal Code section
4.36.100(d). Council can also periodically establish new rates pursuant to section
4.36.100(d). The rates were last set (apart from CPI increases) in 2007. Staff is
not aware of any current shortcomings in these amounts in light of the CPI
adjustments, and believes that most of the costs have remained relatively flat
over the past four years.
Alternatives
As to the criteria for higher relocation benefits, Council could consider restricting
them to tenancies in place as of the effective date of this ordinance. However, at
its September 13, 2011 meeting Council voted to expand eligibility to all
protected classes of tenants regardless of move -in date.
R
Financial Impacts & Budget Actions
There are no likely financial impacts from the ordinance options being
considered. The fees in question are paid directly from property owners to
vacating tenants.
Prepared by: Adam Radinsky, Head, Consumer Protection Unit
Approved:
Mar a Jone's outrie
City orny
Attachments: Proposed Ordinance
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Forwarded to Council:
Rod Gould
City Manager
City Council Meeting: December 6, 2011 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING CHAPTERS 4.36 AND 4.56 OF THE SANTA MONICA
MUNICIPAL CODE TO INCREASE PERMANENT RELOCATION BENEFITS;
CHANGE ELIGIBILITY REQUIREMENTS FOR RELOCATION ENHANCEMENTS;
EXTEND TENANT HARASSMENT PROTECTIONS TO ALL TENANTS COVERED BY
JUST CAUSE EVICTION RULES; AND CORRECT CERTAIN CODE SECTION
REFERENCES
WHEREAS, Santa Monica has not increased its permanent relocation benefit
amounts (other than for cost of living increases) since 2007, during which time rent
levels in the City have increased and vacancies have decreased; and
WHEREAS, Council wishes to extend additional permanent relocation benefits to
households with seniors, disabled, and children tenants regardless of their date of
occupancy because these households are particularly vulnerable; and
WHEREAS, certain code section references in the permanent relocation
ordinance are outdated and inaccurate; and
WHEREAS, Measure RR has extended just cause eviction protections to most
residential tenants in the City regardless of rent control status; and
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WHEREAS, certain non -rent controlled tenants are therefore newly subject to
potential unlawful harassment for the purpose of forcing them to vacate their units; and
WHEREAS, Council wishes to extend tenant harassment protections to all
tenants in the City who have just cause eviction protections, regardless of their rent
control status.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
Municipal Code Section 4.36.020 is amended to read as follows:
4.36.020 When relocation fee required.
(a) A relocation fee shall be paid in accordance with the provisions of this
Chapter by any landlord who terminates or causes the termination of a tenancy for any
of the following reasons:
(1) The landlord seeks to withdraw all rental housing units from the rental
housing market as provided in Government Code Sections 7060 et seq.
(2) The landlord seeks to recover possession of a rental housing unit
pursuant to Section s 1806(a)(8), 1806(a)(9), 2304(a)(8), or
2304(a)(9) of the City Charter.
(3) The landlord seeks to recover possession to demolish or otherwise
Yemoove withdraw a rental housing unit from residential rental housing use, including
units that were illegally converted to residential use, after having obtained all proper
permits from the City, if any such permits are required.
(b) A relocation fee shall be paid in accordance with the provisions of this
Chapter to a displaced tenant who serves a landlord with a notice to terminate tenancy
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after having received written notice from either the landlord or the Santa Monica Rent
Control Board that the landlord has filed a Notice of Intent to Withdraw Residential
Rental Units pursuant to Government Code Section 7060.4 and Santa Monica Rent
Control Board Regulation 16002(a) or an Application for Removal Permit pursuant to
Santa Monica Charter Section 1803(t).
(c) 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.
Municipal Code Section 4.36.040 is amended to read as follows:
4.36.040 Amount of relocation fee.
The amount of the permanent relocation fee payable pursuant to the provisions
of this Chapter shall be established in accordance with the following formula: 1998 2011
relocation fee adjusted for inflation by the percentage change in the rent of primary
residence component of the CPI -W Index for the Los Angeles /Riverside /Orange County
area, as published by the United States Department of Labor, Bureau of Labor
Statistics, between Marsh 1990 November 2011 and the July 1st preceding the date of
vacancy rounded to the nearest fifty dollars. This amount shall be updated annually
commencing on July 1, 2DO7 2012 and on July 1 st of each year thereafter.
(a) The 4998 2011 relocation fee established pursuant to Ordinance 1615CGS
follows:
and determined' according to the size of the retail housing unit, was as
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Apartment size
2011 relocation amount
2011 augmented amount
Sin le or studio
7 800
8 900
One bedroom
12 050
111850
Two or more bedrooms
$16,300
$18,750
(b) If a tenant is evicted from more than one rental housing unit on a property,
the tenant shall not be entitled to receive separate relocation fees for each rental
housing unit. The tenant shall receive a single relocation fee based on the combined
total number of bedrooms in the rental housing units from which the tenant is being
evicted. If one of the rental housing units is a bachelor or single unit, it shall be counted
as a one bedroom unit for purposes of determining the amount of the relocation fee
(e.g., a tenant who is evicted from a bachelor rental housing unit and a one bedroom
rental housing unit would receive relocation benefits for a two bedroom unit).
(c) If the rental housing unit from which the tenant is being evicted is furnished,
two hundred fifty dollars shall be deducted from the amount set forth in subsection (a) of
this Section. For purposes of this subsection, 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.
(d) 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, and the displaced tenaRt(6) ^^^ ,pied *"°
...
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shall be added te the amount an augmented amount shall be paid as set forth in
subsection (a) of this Section. The amount added pursuant to this subsection shall be
adjusted annually pursuant to the formula specified above commencing on July 1, 2012,
and each July 1st thereafter.
(e) Any tenant still in possession of a rental unit after the relocation amounts
have been updated pursuant to this Section, shall be entitled to the updated relocation
amounts even if the landlord commenced the termination of the tenancy prior to the
update. In the event that a landlord has already complied with the provisions of Section
4.36.060 based on the relocation amounts previously in effect, but has not yet received
a written request from a tenant for distribution of the fee pursuant to Section 4.36.070,
the landlord shall place in escrow the additional amount of relocation fee required by
this Section within five working days of the effective date of the updated amount.
Municipal Code Section 4.56.010 is amended to read as follows:
4.56.010 Definitions.
(a) Fraud. Intentional misrepresentation, deceit or concealment of a material
fact.
(b) Housing Service. Housing services include, but are not limited to, hot and
cold water, heat, electricity, gas, refrigeration, elevator service, window shades and
screens, storage, kitchen, bath and laundry facilities and privileges, janitor services,
refuse removal, furnishings, telephone, parking, effective waterproofing and weather
protection, painting, and any other benefit, privilege or facility that has been provided by
the landlord to the tenant with use or occupancy of any rental housing unit. Services to
a rental housing unit shall include a proportionate part of services provided to common
facilities of the building in which the rental housing unit is contained.
(c) Landlord. An owner, lessor, sublessor, or any other person entitled to receive
rent for the use and occupancy of any rental housing unit, or an agent, representative or
successor of any of the foregoing.
(d) Malice. An intent to vex, annoy, harass or injure another person.
(e) Rental Housing Agreement. An agreement, oral or written or implied, between
a landlord and tenant for use or occupancy of a rental housing unit and for housing
services.
(f) Rental Housing Unit. A housing unit in the City that constitutes either a
controlled rental unit pursuant to City Charter Section 1800 et seq. jincluding a room in
a single - family home, hotel or motel, rooming house or apartment, single - family home,
mobile home or mobile home space, trailer or trailer space); or a rental unit pursuant to
City Charter Section 2300 et seq.
(g) Tenant. A tenant, subtenant, lessee, sublessee or any other person entitled
under the terms of a rental housing agreement to the use or occupancy of any rental
housing unit.
SECTION 1. 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 2. 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 3. 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.
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MA SHA NES MO `TRIE
City ttor
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