O2478City Council Meeting: January 13, 2015 Santa Monica, California
ORDINANCE NUMBER 2478 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING CHAPTER 4.56 OF THE SANTA MONICA MUNICIPAL
CODE TO CLARIFY AND EXTEND PROTECTIONS AGAINST TENANT
HARASSMENT
WHEREAS, Santa Monica has experienced an increase in reported instances of
harassment of tenants during the past year; and
WHEREAS, many believe that it is difficult than to prove violations of the current
tenant harassment ordinance due to its requirement of "malice," a term that may be
confused with stricter standards in other areas of the law; and
WHEREAS, Santa Monica has experienced an increase in reported instances of
local residential landlords and managers entering tenants' units without legal
justification, or to harass tenants, or extending those entries beyond their proper scope
to improper locations and reasons; and
WHEREAS, tenants have reported increased invasions of their privacy by
property owners and managers, in particular through the use of "inspections" not
authorized by law; and
WHEREAS, the current fixed civil penalty of One Thousand Dollars ($1,000.00)
for violations of the tenant harassment ordinance is insufficient to deter violations of that
law and provides judges insufficient flexibility to assess proper penalties; and
WHEREAS, the civil penalty for violations of the tenant harassment ordinance
should be amended to the range of up to Ten Thousand Dollars ($10,000.00); and
WHEREAS, senior and disabled tenants are both disproportionately subjected to
tenant harassment, and more vulnerable to its ill effects; and
WHEREAS, with the rebounding of both the rental and real estate markets, the
disparity between rent - controlled and market rate rentals has continued to grow in
recent months; and
WHEREAS, landlords have greater incentives to induce tenants in rent - controlled
units to move out and many are selling their property knowing that an unoccupied unit
can command a significantly higher sale price than an occupied one; and
WHEREAS, some landlords offer cash buyouts in exchange for tenants vacating
rental units; and even buyouts worth tens of thousands of dollars, or more, can be
recouped by a landlord retaining ownership and re- renting at market rates or selling the
unit; and
WHEREAS, many buyout negotiations are not conducted at arms - length, and
landlords sometimes employ high - pressure tactics or intimidation to induce tenants to
sign the agreements; and
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WHEREAS, landlords' tactics sometimes result in tenants entering into Buyout
Agreements without a full understanding of their rights and in amounts even below
minimum relocation benefits which are required to be paid for all no -fault evictions; and
WHEREAS, legislation is needed to promote fairness in buyout negotiations and
agreements by requiring landlords to provide tenants with a statement of rights and
allowing tenants to rescind a Buyout Agreement for up to 30 days after signing the
agreement, thus reducing the likelihood of landlords pressuring tenants into signing
Buyout Agreements without allowing the tenants sufficient time to seek advice; and
WHEREAS, collecting data about Buyout Agreements would help the City
compile comprehensive information about the number, location, and terms of such
agreements, and thereby assess the true level of tenant displacement in Santa Monica,
and collecting data will help promote fairness in buyout negotiations by fostering
transparency.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 4.56.010 of the Santa Monica Municipal Code is hereby
amended to read as follows:
Section 4.56.010 Definitions.
(a) Bad Faith. An intent to vex, annoy, harass, provoke or injure
another person. This includes, but is not limited to, the intent of a
property owner or manager to induce a tenant to vacate a rental
housing unit through unlawful conduct.
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(b) Buyout Agreement. An agreement where a landlord pays a
tenant money or other consideration to vacate a rental housing unit.
An agreement to settle a pending unlawful detainer action shall not
be a 'Buyout Agreement."
(c) Buyout Offer. An offer by a landlord to pay a tenant money
or other consideration to vacate a rental housing unit. An offer to
settle a pending unlawful detainer action shall not be a 'Buyout
Offer."
(d) Fraud. Intentional misrepresentation, deceit or concealment
of a material fact.
(e) 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.
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(f) 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.
(g) 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.
(h) Rental Housing Unit. A housing unit in the City that
constitutes either a controlled rental unit pursuant to City Charter
Section 1800 et seq., (including 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.
(i) 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 2. Section 4.56.020 of the Santa Monica Municipal Code is hereby
amended to read as follows:
Section 4.56.020 Prohibition.
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No landlord shall, with respect to property used as a rental housing
unit under any rental housing agreement or other tenancy or estate
at will, however created, do any of the following in bad faith:
(a) Interrupt, terminate or fail to provide housing services
required by contract or by State, County or local housing, health or
safety laws;
(b) Fail to perform repairs and maintenance required by contract
or by State, County or local housing, health or safety laws;
(c) Fail to exercise due diligence in completing repairs and
maintenance once undertaken;
(d) Abuse the landlord's right of access into a rental housing unit
as that right is specified in California Civil Code Section 1954. This
includes entries for "inspections" that are not related to necessary
repairs or services; entries excessive in number; entries that
improperly target certain tenants or are used to collect evidence
against the occupant or otherwise beyond the scope of an
otherwise lawful entry;
(e) Abuse the tenant with words which are offensive and
inherently likely to provoke an immediate violent reaction;
(f) Influence or attempt to influence a tenant to vacate a rental
housing unit through fraud, intimidation or coercion;
(g) Threaten the tenant, by word or gesture, with physical harm;
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(h) Violate any law which prohibits discrimination based on race,
gender, sexual preference, sexual orientation, ethnic background,
nationality, religion, age, parenthood, marriage, pregnancy,
disability, AIDS or occupancy by a minor child;
(i)(1) Take action to terminate any tenancy including service of
any notice to quit or other eviction notice or bring any action to
recover possession of a rental housing unit based upon facts which
the landlord has no reasonable cause to believe to be true or upon
a legal theory which is untenable under the facts known to the
landlord. No landlord shall be liable under this subsection for
bringing an action to recover possession unless and until the tenant
has obtained a favorable termination of that action.
(2) This subsection shall not apply to any attorney who in good
faith initiates legal proceedings against a tenant on behalf of a
landlord to recover possession of a rental housing unit;
Q) Interfere with a tenant's right to quiet use and enjoyment of a
rental housing unit as that right is defined by California law;
(k) Refuse to acknowledge receipt of a tenant's lawful rent
payment;
(1) Interfere with a tenant's right to privacy, including, but not
limited to, entering or photographing portions of a rental housing
unit that are beyond the scope of a lawful entry or inspection.
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SECTION 3. Section 4.56.040 of the Santa Monica Municipal Code is hereby
amended to read as follows:
Section 4.56.040 Enforcement and penalties.
(a) Criminal Penalty. Any person who is convicted of violating
this Chapter shall be guilty of a misdemeanor and upon conviction
shall be punished by a fine of not greater than one thousand dollars
or by imprisonment in the County Jail for not more than six months,
or by both such fine and imprisonment.
(b) Civil Action. Any person, including the City, may enforce the
provisions of this Chapter by means of a civil action. The burden of
proof in such cases shall be preponderance of the evidence. A
violation of this Chapter may be asserted as an affirmative defense
in an unlawful detainer action.
(c) Injunction. Any person who commits an act, proposes to
commit an act, or engages in any pattern and practice which
violates Section 4.56.020 may be enjoined therefrom by any court
of competent jurisdiction. An action for injunction under this
subsection may be brought by any aggrieved person, by the City
Attorney, or by any person or entity who will fairly and adequately
represent the interest of the protected class.
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(d) Penalties and Other Monetary Awards. Any person who
violates or aids or incites another person to violate the provisions of
this Chapter is liable for each and every such offense for the actual
damages suffered by any aggrieved party or for statutory damages
in the sum of between One Thousand ($1,000.00) and Ten
Thousand Dollars ($10,000.00), whichever is greater, and shall be
liable for such attorneys' fees and costs as may be determined by
the court in addition thereto. Any violator shall be liable for an
additional civil penalty of up to Five Thousand Dollars ($5,000.00)
for each offense committed against a person who is disabled or
aged sixty -five or over. The court may also award punitive damages
to any plaintiff, including the City, in a proper case as defined by
Civil Code Section 3294. The burden of proof for purposes of
punitive damages shall be clear and convincing evidence.
(e) Nonexclusive Remedies and Penalties. The remedies
provided in this Chapter are not exclusive, and nothing in this
Chapter shall preclude any person from seeking any other
remedies, penalties or procedures provided by law
SECTION 4. Section 4.56.050 of the Santa Monica Municipal Code is hereby
added as follows:
Section 4.56.050 Buyout offers and agreements.
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(a) Applicability of Section. This section shall apply to every
rental housing unit in the City that is a controlled rental unit
pursuant to City Charter Section 1800 et seq., (including 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).
(b) Disclosure Prior To Buyout Offers. Prior to making a Buyout
Offer, the landlord shall provide each tenant in that rental unit a
written disclosure, on a form developed and authorized by the Rent
Board, that shall include the following:
(1) A statement that the tenant has a right not to enter into a
Buyout Agreement;
(2) A statement that the tenant may choose to consult with an
attorney before entering into a Buyout Agreement;
(3) A statement that the tenant may rescind the Buyout
Agreement for up to 30 days after it is fully executed;
(4) A statement that the tenant may visit the Rent Board for
information about other Buyout Agreements in the tenant's
neighborhood and other relevant information;
(5) Any other information required by the Rent Board consistent
with the purposes and provisions of this Section; and
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(6) A space for each tenant to sign and write the date the
landlord provided the tenant with the disclosure.
The landlord shall retain a copy of each signed disclosure form for
five years, along with a record of the date the landlord provided the
disclosure to each tenant.
(c) Requirements for Buyout Agreements. Every Buyout
Agreement shall:
(1) Be in writing. The landlord shall give each tenant a copy of
the Buyout Agreement at the time the tenant executes it.
(2) Include the following statements in bold letters in at least 14-
point type in close proximity to the space reserved for the signature
of the tenant(s).
(A) "You may cancel this agreement in writing at any time before
the 30th day after all parties have signed this agreement."
(B) "You have a right not to enter into a Buyout Agreement." (C)
"You may choose to consult with an attorney or the Rent Control
Board before signing this agreement. The Rent Control Board may
have information about other Buyout Agreements in your
neighborhood."
A Buyout Agreement that does not satisfy all the requirements of
this subsection shall not be effective and may be rescinded by the
tenant at any time.
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(d) Rescission of Buyout Agreements. A tenant shall have the
right to rescind a Buyout Agreement for up to 30 days after its
execution by all parties. In order to rescind a Buyout Agreement,
the tenant must hand - deliver, email, or place in the U.S. mail a
statement to the landlord indicating that the tenant has rescinded
the Buyout Agreement.
(e) Filing of Buyout Agreements. The landlord shall file a copy
of the Buyout Agreement no sooner than the 31st day after the
Buyout Agreement is executed by all parties, and no later than 60
days after the agreement is executed by all parties. Buyout
Agreements shall be filed with the Rent Control Board unless the
Board opts not to adopt regulations implementing this section, in
which case Buyout Agreements shall be filed with the City Clerk.
This filing requirement does not apply to Buyout Agreements
rescinded under subsection (d).
SECTION 5. 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 6. 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
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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 7. 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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Approved and adopted this 13th day of January, 2015.
L/Lk,gm,
Kevin McKeown, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Ordinance No. 2478 (CCS) had its introduction on December 16,
2014, and was adopted at the Santa Monica City Council meeting held on
January 13, 2015, by the following vote:
Ayes: Councilmembers: Davis, Himmelrich, O'Connor, O'Day, Winterer
Mayor McKeown, Mayor Pro Tern Vazquez
Noes: Councilmembers: None
Absent: . Councilmembers: None
A summary of Ordinance No. 2478 (CCS) was duly published pursuant to
California Government Code Section 40806 .
ATTEST:
Sarah P. Gorman, City Clerk