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SR 04-12-2016 7A City Council Report City Council Meeting: April 12, 2016 Agenda Item: 7.A To: Mayor and City Council From: David Martin, Director, Planning and Community Development, Planning and Community Development Subject: Introduction and first reading of an ordinance amending Chapters 4.36 and 8.100 of the Santa Monica Municipal Code clarifying various aspects of temporary and permanent tenant relocation benefits Recommended Action Staff recommends that the City Council: 1. Introduce for first reading the attached proposed ordinance amending Chapters 4.36 and 8.100 of the Santa Monica Municipal Code clarifying various aspects of the temporary and permanent tenant relocation provisions; and 2. Provide direction on the creation of a new Temporary Relocation Coordinator versus a Housing Crisis First Responder team. Executive Summary At its January 26, 2016 meeting, Council directed staff to explore and propose specifics for establishing a Housing Crisis First Responder team to respond to housing emergencies. As a result of meetings to review the current framework for addressing tenant issues, staff determined that various provisions of Chapters 4.36 and 8.100 related to permanent and temporary relocation benefits for tenants and responsibilities of landlords required clarification to assist with administration of the law and with enforcement. The proposed ordinance attempts to provide this clarification. In order to Responder team, staff seeks additional guidance from Council and direction on the potential creation of a new Temporary Relocation Coordinator in lieu of a Housing Crisis First Responder Team. Background At its August 26, 2015 meeting, staff was directed to focus on maintaining an inclusive and diverse community as a strategic goal of the Council. Addressing temporary and permanent relocation issues, including those created during construction or the performance of basic maintenance is central to this goal. 1 of 14 At its January 26, 2016 meeting, Council directed staff as part of the FY 2016/17 exception based budget process to explore and propose specifics for establishing a Housing Crisis First Responder team to respond to housing emergencies. At its January 12, 2016 meeting, Council directed staff to support statewide legislation to amend the Ellis Act to require landlords to give one years notice to all tenants of the termination of their tenancies under the Act and to notify tenants of an intent to re-offer the property for rent. At its January 13, 2015 meeting (Attachment A) the Council adopted an ordinance tenants, by modifying the state-of-mind requirement, clarifying the scope of certain prohibited conduct, and increasing penalties. The ordinance modified the required state prohibited conduct as to improper entries into units and invasions of privacy, increased the maximum potential civil penalty for violations to $10,000, and increase civil penalties for violations committed against senior or disabled tenants. The ordinance also added new notice and reporting requirements for owners who engage in buyout negotiations with tenants. At its January 14, 2014 meeting (Attachment B), Council adopted an ordinance amending Section 4.36.085 and 4.36.090 prohibiting agreements that limit tenants from engaging in public processes. At its December 13, 2011 meeting, Council adopted an ordinance amending the Chapter 4.36 and 4.56 of the Santa Monica Municipal Code (SMMC) 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. Preceding the adoption of this ordinance, a number of public meetings were held with Council regarding tenant relocation benefits and tenant harassment. For reference the following 2 of 14 two staff reports are attached from meetings held on September 13, 2011 (Attachment C) and December 6, 2011 (Attachment D). At its June 12, 2007 meeting Council adopted an ordinance clarifying and amending the ion law by requiring that permanent benefit amounts be updated annually and by making various changes to the temporary relocation law. These changes, among other things, established deadlines for benefit payments, established per diem limits on benefits to be set by Council resolution, required the Building Officer to provide notice to landlords and tenants of their obligations, provided a right of appeal for landlords and tenants, exempted landlords from the obligation to pay benefits to a tenant who was entirely or primarily responsible for causing the condition necessitating the relocation, and modified the remedies for violations. For reference the following two staff reports are attached from meetings held on May 8, 2007 (Attachment E) and May 24, 2007 (Attachment F) At its October 23, 2007 meeting (Attachment G) Council adopted an ordinance clarifying that periodic increases to the amount of permanent relocation benefits that are effective on or before the date a tenant actually vacates a rental housing unit, are payable to the tenant even when certain filings or proceedings related to the relocation predated the effective date of the increase. Thus, for example, when the amounts of permanent relocation benefits increase on July 1 of a given year, a tenant who vacates on July 15 of that year is entitled to the new amount, even if the landlord is completing an Ellis Act eviction that was begun prior to the effective date of the increase. At its October 9, 2007 meeting (Attachment H) Council adopted an ordinance amending detainer action before a landlord could be liable for bringing a wrongful action to recover possession of the rental housing unit. In response to a change in State law, at its July 13, 2004 meeting (Attachment I) Council adopted an ordinance extending relocation benefits to all residents displaced by 3 of 14 Ordinance (Chapter 4.36 of the Municipal Code) originally required relocation assistance for all tenants whose units were withdrawn from the rental market under Berkeley (1992) 11 Cal App.4th 88, the California Court of Appeal interpreted Government Code Section 7060.1(c) to restrict local authority on Ellis relocation benefits to lower income households. In response to the Channing decision, Council amended the Relocation Assistance Ordinance to limit Ellis relocation benefits to lower income households. Effective January 2004, the California Legislature amended Government Code Section 7060.1(c) to broaden local authority on Ellis relocation benefits to all tenants regardless of income w holding in Channing. Discussion Tenant related issues can range from the straightforward where one agency may be involved and the concerns are addressed quickly by a responsive landlord, to the very complex in nature involving multiple agencies and resistant landlords. In the case of complex cases where tenant related cases cross departmental and divisional lines, the multiple agencies work together on an ad hoc basis to coordinate efforts, as well as with non-city non-profit organizations, such as the Legal Aid Foundation of Los Angeles. This staff report is specific to questions of habitability of a residential housing unit and is focused on recommendations to address issues related to this topic, particularly as it relates to temporary relocation benefits, which can be on an emergency basis. To clarify the various roles and to assist with the discussion of this topic, following is a summary of the various agencies that are involved in tenant related issues. These groups coordinate on an ad hoc bases when necessary. Santa Monica Rent Control Board and Agency - Administers the Rent Control law with the goal of controlling residential rents, preserving rental housing, encouraging maintenance, and ensuring rental-property owners a fair return. 4 of 14 Santa Monica Department of Housing and Economic Development Housing Division - Responsible for preserving existing affordable housing in Santa Monica and creating new housing opportunities for residents with low and moderate Housing Choice Voucher Program (i.e. Section 8). - Responsible for enforcing the Tenant Harassment Ordinance (THO) and assists tenants and property owners with understanding their rights and responsibilities, while encouraging cooperation. Santa Monica Department of Planning and Community Development Code Enforcement Division - The Code Enforcement Division is responsible for responding to complaints regarding habitability, enforcing relocation orders, and issuing Notice of Violations and citations. Santa Monica Department of Planning and Community Development Building and Safety Division - The Building Officer is responsible for determining if a unit is habitable, issuing temporary relocation orders when warranted, and 1 administering the means and methods requirements when construction work will be performed to determine and mitigate impacts on tenants. Los Angeles County Health Department (LACHD) - Responsible for enforcing the California Health and Safety Code, inspects apartments for health code violations such as cockroaches and rodents, and lack of maintenance. Investigates complaints regarding general sanitation, nuisance problems, and excessive dust, 1 If the property is tenant-occupied and, as determined by the Building Officer, the construction work could impact the habitability of any unit on the property, prior to obtaining a permit, the applicant is required to submit a construction means and method plan to the Building Officer. The means and method outlines the scope of the project to identify potential impacts on tenants so that the Building Officer can institute mitigation measures, including relocation if necessary. 5 of 14 lead-based paints, asbestos, and mold conditions. Outside Non-profit tenant serving organizations such as the Legal Aid Foundation of Los Angeles Advocates for tenants through eviction defense and advises tenants regarding housing issues. American Red Cross - Provides emergency temporary assistance to individuals and families (not limited to tenants) who are displaced by natural and man-made disasters, including home fires, wildfires, earthquakes, floods, hazardous materials spills, transportation accidents, and other emergencies. Assistance may include shelter, food, clothing, toiletry items, clean-up items, medical and mental health support, and referrals to organizations that help with long-term needs. Responder team, staff has reviewed the various and diverse aspects of tenant related issues which are handled by the multiple government and non-profit agencies outlined above. Staff also convened meetings with representatives of a number of City departments, including Building and Safety, Code Enforcement, Human Services, Housing and Economic Development and Rent Control Agency staff to conduct an after action assessment of the response to the fire, subsequent relocation of tenants, and the Ellising of the building at 1605 Ocean Front Walk. As part of Santa Monica Municipal Code (SMMC) Chapters 4.36Tenant Relocation Assistant and 8.100Tenant Protection During Construction to clarify existing language regarding temporary and permanent tenant relocation assistance requirements (Attachment J). These changes are specific to issues related to temporary relocation due to habitability (including construction related) and permanent relocation related to when tenants are being permanently displaced from their homes. Both provisions are currently enforced by the Planning and Community Development Department via the Building and Safety 6 of 14 Division and the Code Enforcement Division. As noted earlier in this report, when tenant issues beyond habitability and relocation arise, Building and Safety and Code Enforcement staff coordinate with other agencies as needed. Staff also seeks additional guidance and direction from Council on the creation of a Housing Crisis First Responder team. The report also outlines administrative changes to be implemented by these divisions to ensure greater education of tenants and landlords regarding the requirements of tenant protections and noticing during construction. Since January 1, 2015 to March 2016, there have been 46 cases related to habitability with 17 requiring relocation. These cases may or may not have included other issues that would have been enforced by Rent Control, such as rent adjustments, or tenant represented by legal counsel, such as LAFLA. Since this report is focused on habitability and tenant relocation specifically, other tenant issues are not addressed in this report. The main conditions that triggered the need for relocation were major construction and lack of gas/heat. There have been two fires that resulted in relocation. In most cases, landlords address issues timely without the need to cite or issue an order, however, there have been cases where landlords have been resistant to paying relocation or have disputed the requirement to pay relocation. Proposed Changes to Local Law staff determined that the laws related to tenant relocation and tenant protections during construction needed clarification and improvement. Accordingly, staff recommends the following amendments: Definitions 1. definitions that currently exist. 2. 7 of 14 outline clearly the conditions that require relocation, and clarify when either type of relocation is required, which will allow clarification that temporary relocation is required until such time tenancy is terminated as defined by State law. These definitions will ensure that in such cases when a tenant is displaced during an Ellis waiting period, the landlord is required to provide temporary relocation until such time the waiting period is over, and that the tenant is then entitled to permanent relocation at the end of that waiting period. 3. neither permitted by the City nor lawfully registered with the Rent Control Board. Remedies, Appeals, and Penalties 1. Clarify the availability of permanent relocation benefits to tenants who are displaced from illegal rental housing units that have no building and safety approval and are not lawfully registered with the Rent Control Board. Staff is proposing that at least one affected tenant must have resided continuously within that unit for the past 12 months to be eligible for the benefit, in order to ensure that residency has been established and to deter abuse of the relocation process. 2. Add language clarifying that failing to provide relocation assistance would make the landlord subject to injunctive relief as well as be liable in a civil action. 3. Add language clarifying that failing to comply with a relocation order issued by the Building Officer is an infraction with a fine not to exceed $250 or misdemeanor with a fine not greater than five hundred dollars. Existing law allows for misdemeanor fines to be up to $1,000 which is in conflict with City Charter Section 620, which limits misdemeanor penalties to $500. 4. Double administrative citation fines associated with the failure by the landlord to obtain permits to comply with housing, health, building or safety laws that then require the relocation of a tenant. For example, if a landlord installs a 8 of 14 heating system without a permit and the system fails requiring the relocation of a tenant, any fines for performing work without a permit would be double the amount established by resolution of the Council. The current fine for work without permit is $500. If the conditions of this provision are met, the fine would be fine $1000. 5. Making failure to comply with a relocation order a strict liability offense, which means that the City Prosecutor would not be required to prove criminal intent to obtain a conviction. 6. Require landlords convicted of violating tenant relocation requirements reimburse the City for all investigative costs. 7. Add language clarifying that if the landlord fails or refuses to provide relocation benefits, and the City chooses to pay such benefits to the tenants these expenses, plus any administrative fees for doing so. 8. Transfer the hearing of appeals from the Building and Fire Life-Safety Commission to a City Hearing Examiner to expedite the appeal process. Clarify that relocation orders are not stayed during an appeal, unless done so by the Building Officer or the Hearing Examiner. If the landlord wins their appeal and the Building Officer refused to stay the relocation order, the City would be responsible for reimbursing the landlord for any relocation expenses paid. This provision is intended to ensure that the tenant is housed immediately without any delays due to an appeal. 9. Strike the conditions outlined in the code to determine habitability and instead rely on State Health and Safety Code Section 17920.3 to guide the Building application of habitability requirements. Landlord Responsibilities and Options 1. cooperate with the Building Officer to ensure tenant can be notified of any relocation order that is issued, make a and provide tenants with advance notice of any changes to the anticipated 9 of 14 relocation period. 2. landlord pay a per diem until such time comparable housing is secured, and not allow the landlord to switch from comparable housing to per diems once comparable housing is provided. 3. Clarifying that the time period the landlord has to pay temporary relocation benefits is 24 hours from when the conditions requiring temporary relocation are triggered. This will ensure that any delays from when the conditions began to when staff is made aware of the conditions and able to issue any necessary orders do not delay the amounts due to the tenant for the actual periods the conditions requiring relocation existed. This will discourage landlords from delaying repairs, particularly during the time it may take staff to complete its investigation. 4. Allow for the landlord to request early termination of temporary relocation by the Build for cause, from his/her temporary housing accommodations to ensure that the landlord is not made responsible for the personal conduct of a tenant. 5. Clarify that relocation benefits are not required if a tenant refuses to vacate the property in response to a relocation order, since unless a building is deemed unsafe to enter (e.g. yellow or red tag) and the tenant is ordered to vacate, a tenant may not be forced to leave. 6. Clarify the exemptions to the requirement to pay relocation to include acts that are caused by conditions outside of the property such as a terrorist attack, accident, criminal activity, public utility failure, or conditions created by an adjacent building. However, staff also recommends the addition of language making any person, other than the landlord, who causes tenant relocation, be responsible to provide temporary relocation. This provision addresses those circumstances where an incident substantially initiated outside of the property, such as a vehicle crashing into a building, renders a living unit uninhabitable, the responsible party can be held accountable for the relocation benefits. 10 of 14 7. Increase the posting and notification requirements of the landlord related to construction activities in buildings with tenants to ensure that tenants are aware of the expected impacts and timeframe for construction projects and contact information for who to call to report issues. 8. Increase the landlords responsibility to monitor conditions and notify the city when changes to the project or the occupancy of units changes and submit updated means and methods documentation to ensure that the Building Officer is able to update mitigation requirements and/or order relocation if necessary. 9. When applying for a permit, requiring the landlord to provide a complete description of all construction related projects at the property that would commence concurrent with or immediately after the proposed project. This provision is intended to require a landlord to disclose the full scope of a project to ensure that staff is able to assess the potential impacts related to the full scope of a project instead of just one aspect of it. 10. Extend joint liability to a licensed contractor serving as the agent of the landlord for any violation of the means and methods requirements to ensure that the contractor, who frequently has a more direct impact on tenants is motivated to comply. Housing Crisis First Responder Team Based on the information available to staff currently, staff does not specifically recommend the creation of a new team at this time, but instead would recommend the creation of a Tenant Relocation Coordinator position for permanent and temporary relocation issues that would report into either the Building and Safety Division or the Code Enforcement Division. This is due mostly because multiple agencies and non- profits handle various aspects of tenant related issues, all of whom bring vastly different focus, skills, and expertise related to tenant issues beyond temporary or permanent relocation. These various groups currently coordinate as needed depending on the individual circumstances of each case; however, a full time position which coordinates the execution of these various resources, as well as monitor construction projects where tenants are living to ensure tenants are protected during the construction process, may 11 of 14 the creation of a new team. Staff seeks guidance from Council on whether the proposed Tenant Relocation Coordinator, outlined further direct support to landlords/tenants Council would expect staff to provide that is above and beyond current policies. For example, currently in the event of a natural disaster or accident such as a fire, the Red Cross currently provides short term emergency housing to individuals as it did in the 1605 Ocean Front Walk. Staff secured relocation for the tenants following the relocation provided by the Red Cross, since the landlord was unwilling at the time. emergencies, along with the Police and Fire departments, and actively find and/or provide housing for displaced tenants in lieu of the Red Cross? Tenant Relocation Coordinator The Tenant Relocation Coordinator position, which is recommended by staff in lieu of a new multi-disciplinary team, would serve as a central contact and facilitator for tenants when they are displaced or going to be displaced from their home, ensuring enforcement of Chapters 4.36Tenant Relocation Assistant and 8.100Tenant Protection During Construction as well as ensuring that displaced tenants needs are being considered. The position would assess each individual circumstance, respond to emergencies after hours on an on-call basis, coordinate with other agencies as needed, as Rent Co of Los Angeles, and emergency personnel, as well as actively assist tenants with engaging those resources. The position would also, as needed, engage the Santa Monica Human Services division and/or the Los Angeles County Department of Social Services as needed. to proactively educate landlords and tenants regarding their rights and obligations related to habitability, construction requirements, and relocation. The position would 12 of 14 track all construction projects where tenants live, monitoring means and method approvals and project scope of work to ensure that projects are within the scope of work approved by the Building Officer, making referrals to Code Enforcement and Building and Safety as necessary to address non-compliance as a proactive measure to mitigate potential impacts on tenants. This position would also work with all involved enfor and would liaise agencies to ensure successful prosecution of such cases. This new position would allow for greater review and tracking of construction projects that impact tenants and greater proactive coordination of the various agencies when a tenant is displaced. Staff would continue to evaluate and bring back additional recommendations for staffing or resources if needed. Administrative Procedural Changes and Budget Staff has changed its procedures to issue relocation orders in all cases where a unit is found to be uninhabitable, even when the landlord relocates the tenant without the need for an order, to ensure that the City has initiated its enforcement steps early in the process. This procedure will no longer be necessary should Council adopt the proposed ordinance. Staff also plans to increase administrative penalties, which can be issued by Code Enforcement staff, for failing to provide relocation benefits from $500 to $1000 and creating a new $1000 administrative penalty for failing to submit an updated means and methods plan when there are changes to the scope of work for a project where tenants reside. 13 of 14 Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of recommended action. If Council directs staff to add the new Tenant Relocation Coordinator, staff will include this request with the Fiscal Year 16/17 exception based budget. Prepared By: Salvador Valles, Assistant Director of PCD Approved Forwarded to Council Attachments: A. January 13, 2015 Council Action B. January 14, 2014 Council Action C. December 13, 2011 Council Action #1 - September 13, 2011 Meeting D. December 13, 2011 Council Action #2 - December 6, 2011 Meeting E. June 12, 2007 Council Action #1 - May 8, 2007 Meeting F. June 12, 2007 Council Action #2 - May 24, 2007 Meeting G. October 23, 2007 Council Action H. October 9, 2007 Council Action I. July 13, 2004 Council Action J. Tenant Relocation Assistance Ordinance K. Written comments 14 of 14 Add to 7-A 04/12/2016 Anne Samartha From:Denise McGranahan <DMcGranahan@lafla.org> Sent:Monday, April 11, 2016 3:45 PM To:Clerk Mailbox; Kevin McKeown Fwd; Tony Vazquez; Gleam Davis; Sue Himmelrich; Pam OConnor; Terry OÔDay; Ted Winterer Cc:Marsha Moutrie; Barbara Collins; David Martin; Yibin Shen; Adam Radinsky; Gary Rhoades Subject:LAFLA Letter to Council for April 12, 2016 Council Meeting on Agenda items 3-K, 3-T, 7-A Attachments:Letter to Mayor & City Council.pdf Importance:High Follow Up Flag:Follow up Flag Status:Flagged PleasefindattachedalettertotheMayorandCouncilmembersfortomorrowƓźŭŷƷ͸ƭcouncilmeetingonAgendaItems3K,3T,and 7A. Sincerely, DeniseMcGranahan DeniseMcGranahan|SeniorAttorney LegalAidFoundationofLosAngeles 16405thStreet,Suite#124|SantaMonica,CA90401 323.801.7966 direct|310.899.6208 facsimile dmcgranahan@lafla.org|www.lafla.org TheFrontlineLawFirmforPoorandLowIncomePeopleinLosAngeles This message contains information from the Legal Aid Foundation of Los Angeles which may be confidential and/or privileged. If you are not an intended recipient, please refrain from any disclosure, copying, distribution or use of this information and note that such actions are prohibited. If you have received this transmission in error, kindly notify the sender and immediately delete this email and any files that may be attached. 1 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016 Anne Samartha From:Joseph Fitzsimons <jfitzsimons@linkline.com> Sent:Tuesday, April 12, 2016 1:58 PM To:Clerk Mailbox Cc:Steve Carlson; Tracy Condon; 'Craig Mordoh'; Attorney Mailbox; Santa Monica City Manager's Office; David Martin; Fred Sutton; Tony Vazquez; Kevin McKeown Fwd; Gleam Davis; Sue Himmelrich; Pam OConnor; Terry OÔDay; Ted Winterer; William Dawson Subject:Communication for the Hearing Record to SMCC re Item 7A for Hearing Date April 12, 2016 Attachments:To SMCC re Proposed Tenant Relocation Amendments Item 7A Hearing 04_12_ 2016.pdf Follow Up Flag: Follow up Flag Status:Flagged TotheCityClerk: Pleasedistributeacopyoftheattachedlettertoallcouncilmembersandincludeitinthehearingrecordrelativeto AgendaItem7AforthehearingbeforecouncilonApril12,2016. Thankyouverymuch. 1 Add to 7-A 04/12/2016 Add to 7-A 04/12/2016