SR 08-09-2016 10A
Ci ty Council
Report
City Council Meeting : August 9, 2016
Agenda Item: 10.A
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To: Mayor and City Council
From: Elaine Polachek, Asst. City Manager , City Manager's Office, Administration
Subject: Request from Santa Monica Rent Control Board to Conduct a Study to
Determine Which Factors, if any, Contribute to an Owner's Decision to
Withdraw Controlled Units from the Rental Market
Recommended Action
Staff recommends that the City Council :
1. R eview and comment on the Santa Monica Rent Control Board's request to study
factors contributing to owners deciding to withdraw controlled units from the
rental market, and direct staff to proceed with conducting such a study;
2. Allocate $80,000 of Council discretionary funds to conduct the study
recommended by the Rent Control Board ; and
3. Authorize budget changes as outlined in the Financial Impacts and Budget
Actions section of this report.
Executive Summary
The Santa Monica Rent Control Board has observed a marked increase in rental units
being withdrawn from the housing market under the Ellis Act. Twenty nine units were
withdrawn in 2013, 85 uni ts were affected in 2014, and 153 units were withdrawn in
2015. Given that Council has identified inclusion and diversity as a top strategic goal,
including preserving affordable housing, City staff joins the Rent Control Board to
request Council authorize staff to initiate a study into what factors are contributing to this
increase in units being removed from the market under the Ellis Act and how the City
might develop new public policies to protect affordable housing in the community .
Discussion
Given the relatively marked increase in rental units being withdrawn from the Santa
Monica rental market, the Rent Control Board passed a resolution requesting Council
direct appropriate staff to research and analyze which factors, if any, make Ellis
withdrawal s more likely (Attachment A). Such factors might include land values, rates
of appreciation, zoning, neighborhood, building size, changes in ownership, the ratio of
market to long -term rentals, and any other factors that staff might deem relevant. The
Re nt Control Board is committed to provide any information in its possession that will
facilitate this research and analysis.
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It is the consensus of the Rent Control Board that a public purpose would be served by
better understanding, based on firm data, what factors lead some landlords to withdraw
property from the rental market. The Board believes that if contributing factors can be
identified, city policies might be amended to respond to those factors, thereby reducing
the loss of controlled housing.
City s taff support the need for addressing the loss of affordable rental units and request
Council authorize up to $80,000 in Council discretionary funds to conduct this study.
Council discussed making an allocation for this study during budget adoption at the
June 14 Council meeting. Staff will evaluate the best approach and perform the
necessary procurement steps to identify the most qualified consultant or firm to conduct
this study.
Financial Impacts and Budget Actions
A study to determine which f actors, if any contribute to an owner’s decision to withdraw
controlled units from the rental marked is anticipated to cost $80,000. Funds are
available in the FY 2016 -17 City Council budget. If additional funding is needed, staff
will return to Council.
Prepared By: Christopher Smith, Assistant to the City Manager
Approved
Forwarded to Council
Attachments:
A. Rent Control Board Resolution Regarding Proposed Ellis Study