SR-05-05-2015-7ACity of City Council Report
Santa HollicA
City Council Meeting: May 5, 2015
Agenda Item: . —
To: Mayor and City Council
From: Marsha Jones Moutrie, City Attorney
Subject: Ordinance Prohibiting Housing Discrimination Based On Source of
Income, Including Section 8 Vouchers and Other Rent Subsidies
Recommended Action
Staff recommends that the City Council introduce for first reading the attached
ordinance amending the Santa Monica Municipal Code section 4.28.030 to prohibit
housing discrimination based on the source of a tenant's income and section 4.28.060
to increase the penalties for housing discrimination violations, and to add injunctive
relief to the civil remedies.
Executive Summary
Council has received complaints that some local landlords will not rent units to tenants
who receive housing assistance in the form of rent subsidies such as Section 8
vouchers. And, Housing Division personnel have noted that tenants receiving Section 8
vouchers often cannot find housing within the City. Accordingly, Council directed staff
to prepare an ordinance that would prohibit housing discrimination based on the source
of income. The attached ordinance fulfills that directive. It would add discrimination
based on the source of income to the existing list of prohibited forms of housing
discrimination. Under the civil remedies section, the amendment would also increase
the penalty for a violation from $500 to a range of $1000 to $10,000 while also adding
injunctive relief.
Background
As real estate values have continued to increase and market rents have continued to
rise, low income renters have experienced great difficulty locating housing within the
City. Many of those seeking rental housing are long -time City residents forced from
their homes by circumstances beyond their control. And many are low- income
individuals and families who receive rental assistance, most often in the form of Section
8 vouchers.
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Many voucher holders have reported to Council members that some local landlords
refuse to rent to voucher holders, either in particular cases or even as a business
practice. These reports are consistent with Housing staff's observations that Section 8
tenants experience disproportionate problems finding homes in Santa Monica.
Accordingly, on December 16, 2014, Council directed staff to prepare an ordinance that
would prohibit such discrimination.
The current civil remedies section of the City's Housing Anti - Discrimination Ordinance
does not include injunctive relief and the penalties for violations are capped at $500.
These limitations do not give judges sufficient flexibility to assess proper penalties and
deter future acts of discrimination. Earlier this year, Council approved increased
penalties for violations of the Tenant Harassment Ordinance to range from $1000 to
$10,000.
Discussion
State law already prohibits discrimination against tenants based on their source of
income. However, in a case involving a well -known Santa Monica landlord, a court
determined that Section 8 vouchers are not an income source under state law. This
decision was later codified under the state law. Therefore a local provision is necessary
to prevent discrimination against voucher holders.
While federal and state fair housing laws do not protect Section 8 voucher holders, they
also do not preempt local laws that prohibit such discrimination. Accordingly, twelve
states, nine counties, and eighteen cities have made such discrimination illegal in three
basic ways. The California cities include San Francisco, Corte Madera, East Palo Alto,
and Woodland, and three of these city ordinances demonstrate the three basic options
to prohibit Section 8 discrimination:
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1. Banning all source of income discrimination, including in the definition of "source
of income" any participation in rental assistance programs or housing subsidy
programs. This is the East Palo Alto model.
2. Requiring landlords to accept Section 8 vouchers only from existing tenants who
qualify for Section 8 after moving in. (Corte Madera)
3. Prohibiting discriminating against Section 8 voucher holders only as to housing
developments with affordability restrictions. (Woodland.)
The attached proposed ordinance would fulfill Council's directive by adding
discrimination based on source of income to those forms of housing discrimination
already prohibited by local law, and would make clear that Section 8 vouchers are
included within the protection. Thus, it would fill the gap in tenant protection created by
the state's narrow definition of "source of income." One concern over prohibiting all
such discrimination — including against applicants and in -place tenants —is that owners
might raise their rents above the Section 8 payment standards to make the use of
vouchers impossible.
The attached ordinance also increases the statutory damages for violations from $500
to a range between the sum of $1000 and $10,000. This will give judges sufficient
flexibility to assess proper penalties. Injunctive relief is added as a civil remedy as it is
often needed to deter future acts of discrimination.
Alternatives
Given the state's narrow definition of "source of income ", the only other alternative
available at the local level is to impose a local prohibition such as the one contained in
the proposed ordinance, but have it apply only to already existing tenancies. Such an
ordinance would protect tenants whose source of income changes.
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Next Steps
If Council adopts the proposed ordinance, the Consumer /Fair Housing Division of the
City Attorney's Office and the Housing Division of the Housing and Economic
Development Department, will provide information about the new provision of law to the
landlord and tenant communities to ensure that those communities have notice of their
new rights and responsibilities.
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared by: Marsha Jones Moutrie, City Attorney
roved:
Forwarded to Council:
Elaine M. Polachek
Interim City Manager
Attachments: Ordinance Prohibiting Housing Discrimination Based on Source of Income
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City Council Meeting: May 5, 2015
Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA PROHIBITING HOUSING DISCRIMINATION BASED ON
SOURCE OF INCOME, INCLUDING SECTION 8 VOUCHERS AND OTHER RENT
SUBSIDIES
WHEREAS, the City of Santa Monica is committed to providing and preserving
affordable housing for all segments of the community as a matter of social justice and to
preserve diversity; and
WHEREAS, the City of Santa Monica desires to eliminate any discrimination in
the provision of housing, including discrimination based on a person's source of income;
and
WHEREAS, the City of Santa Monica Housing Authority, which administers the
Section 8 program, reports a shortage of landlords participating in the Section 8
program; and
WHEREAS, this shortage may reflect discrimination against the holders of
Section 8 vouchers; and
WHEREAS, discrimination against Section 8 voucher holders significantly
reduces the pool of housing that is available to them; and
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WHEREAS, California and federal law requires the City to identify impediments
to providing affordable housing and discrimination -free housing and to develop
strategies for removing those impediments; and
WHEREAS, in order to fulfill its commitment to fair and affordable housing
opportunities and to fulfill its legal obligations it is necessary to prohibit housing
discrimination based on source of income; and
WHEREAS, the current fixed civil penalty of Five Hundred Dollars ($500.00) for
violations of the Housing Anti - Discrimination 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 Housing Anti - Discrimination
Ordinance should be amended to the range of One Thousand Dollars ($1000.00) up to
Ten Thousand Dollars ($10,000.00); and
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WHEREAS, injunctive relief is often needed to deter future discriminatory acts;
WHEREAS, the Housing Anti - Discrimination Ordinance should be amended to
include injunctive relief as a possible civil remedy.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 4.28.030 is hereby amended
to read as follows:
4.28.030 Prohibited activities.
It shall be unlawful for any person offering for rent or lease,
renting, leasing, or listing any housing accommodation, or
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any authorized agent or employee of such person, to do or
attempt to do any of the following:
(a) Refuse to rent or lease a housing
accommodation, or access to or use of the common areas
and facilities of the housing accommodation, serve a notice
of termination of tenancy, commence an unlawful detainer
action, or otherwise deny to or withhold from any person or
persons, a housing accommodation on the basis of disability,
age, source of income, parenthood, pregnancy, or the
potential or actual occupancy of a minor child.
(b) Represent to any person, on the basis of
disability, age, source of income, parenthood, pregnancy, or
the potential or actual occupancy of the minor child that a
housing accommodation is not available for inspection or
rental when such housing accommodation is in fact available
for inspection or rental.
(c) Make, print, or publish, or cause to be made,
printed, or published any notice, statement, sign,
advertisement, application, or contract with regard to a
housing accommodation offered by that person that
indicates any preference, limitation, or discrimination with
respect to disability, age, source of income, parenthood,
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pregnancy, or the potential or actual occupancy of a minor
child.
(d) Include in any rental agreement or lease for a
housing accommodation a clause providing that as a
condition of continued occupancy, the tenants shall remain
childless or shall not bear children or otherwise not maintain
a household with a person or persons of a certain age.
(e) Threaten to commence or commence eviction
proceedings against any tenant on the grounds that he or
she has breached a rental agreement if the alleged breach
arises out of an increase in the number of occupants due to
the marriage of the tenant, provided that the occupancy of
the spouse and children of the spouse is otherwise lawful.
(f) Threaten to commence or commence eviction
proceedings against any tenant head of household on the
grounds that he or she has violated the provisions of a rental
agreement where the violation consists of an increase in the
number of occupants arising out of the birth, adoption, or
change of legal custody of a minor child of whom the tenant
head of household or his or her spouse is the parent or legal
guardian, and provided that the occupancy of said minor
child is otherwise lawful.
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(g) Refuse to make reasonable accommodations
in rules, policies, practices, or services, when such
accommodations may be necessary to afford a person with a
disability equal opportunity to use and enjoy any dwelling.
(h) Refuse to allow a person to make reasonable
modifications, alterations or additions to existing premises
occupied or to be occupied by a person with a disability that
are necessary to make the rental property accessible by
persons with disabilities, under the following conditions:
(1) The landlord is not required to pay for the
alterations, additions, or restoration unless otherwise
required by State or Federal law;
(2) The landlord has the right to demand
assurances that all modifications will be performed in a
professional manner, and in accordance with applicable
building codes, permitting requirements and other applicable
laws;
(3) The landlord may, where it is reasonable to do
so, condition permission for modification on the tenant's
agreement to restore the interior of the premises to its pre-
existing condition, reasonable wear and tear excepted.
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(i) For purposes of this part, "disability". includes,
but is not limited to, any physical or mental disability as
defined in California Government Code Section 12926.
Q) For purposes of this part, "source of income"
includes any lawful source of income or rental assistance
from any federal State local or non - profit- administered
benefit or subsidy program including, but not limited to, the
Section 8 voucher program.
SECTION 2. Santa Monica Municipal Code Section 4.28.060 is hereby amended
to read as follows:
4.28.060 Civil remedyies.
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(a) 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.
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(b) Iniunction. Any person who commits an act,
proposes to commit an act, or engages in any pattern and
practice which violates Section 4.28 may be enjoined
therefrom by anV 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 fairlV and adequately represent the interest of
the protected class.
(c) Penalties and Other Monetary Awards. AnV
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 between the sum
of one thousand dollars and ten thousand dollars, whichever
is greater, and shall be liable for such attorneys' fees and
costs as may be determined by the court in addition thereto.
(e) Nonexclusive Remedies and Penalties. The
remedies provided in this Chapter are not exclusive, and
nothinq in this Chapter shall preclude any person from
seekina anv other remedies. penalties or procedures
rovided by law
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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:
MARSHA dO ES MOU RIE
Cit , ttorrjeyJ
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