SR 09-10-2019 7C
City Council
Report
City Council Meeting: September 10, 2019
Agenda Item: 7.C
1 of 4
To: Mayor and City Council
From: Lane Dilg, City Attorney, City Attorney's Office, Administration
Subject: Introduction and First Reading of an Ordinance Amending Santa Monica
Municipal Code 4.36.020 To Improve Clarity and Add an Additional Basis for
Payment of Permanent Tenant Relocation Expenses
Recommended Action
Staff recommends that the City Council:
1. Introduce for first reading the attached ordinance amending Santa Monica
Municipal Code Section 4.36.020 to improve clarity and precision and to add an
additional basis for mandatory payment of relocation expenses;
2. Amend the Affordable Housing Production Program Administrative Guidelines
(Attachment B) and the Housing Trust Fund Guidelines (Attachment C) to
provide affordable-housing-referral priority for income-qualified households
displaced as a result of constructive eviction associated with owner-occupancy,
rent-decontrol of their apartments.
3. Direct staff to explore whether such households could also qualify for affordable -
housing priority for federally funded housing vouchers.
2 of 4
Executive Summary
For more than three decades, the City of Santa Monica has mandated relocation
assistance to displaced tenants. On August 27, 2019, the City Council adopted a 13-
item introduced by Councilmember Winterer and directed staff to develop the necessary
ordinances and/or resolutions to require relocation benefits for those tenants in
duplexes and triplexes who are constructively evicted due to owner occupancy
decontrol of their units and to provide those income-qualified tenants who must relocate
priority on the City’s affordable housing waitlist. Staff now proposes an ordinance in
response to that direction, as well as changes to the Affordable Housing Production
Program (AHPP) Administrative Guidelines and Housing Trust Fund (HTF) Guidelines
to provide for the requested priority on the City’s affordable-housing waitlist.
Discussion
Tenant relocation requirements promote housing stability by providing landlord -paid
relocation assistance to tenants who are displaced by no fault of their own. Tenant
relocation assistance was first established by the City Council in 1986.
Currently, Chapter 4.36 of the Santa Monica Municipal Code, Tenant Relocation
Assistance, requires a landlord to pay a permanent relocation fee to a tenant whenever
the landlord seeks to withdraw the tenant’s unit from the rental market pursuant to the
Ellis Act or seeks to recover possession of the tenant’s unit for owner occupancy.
3 of 4
The proposed ordinance addresses an additional circumstance that Council has
identified in which relocation fees are necessary to ensure residential stability for
tenants whose leases are terminated at no fault of their own. Specifically, the proposed
ordinance would require a landlord to pay relocation assistance whenever a duplex or
triplex is decontrolled based on the owner’s decision to occupy one of the units and
tenants in the remaining units are not evicted but are subject to rent increases beyond
those permitted pursuant to City Charter Section 1805. Permanent relocation fees are
paid in the amount set forth by Council by resolution and were most recently adjusted
on January 22, 2019, pursuant to Resolution No. 11159.
Pursuant to Council direction, amendments are also proposed to the AHPP Guide lines
and HTF Guidelines to provide a referral priority for affected, income-qualified tenants.
The priorities for federally funding housing vouchers will require further investigation.
As a result, staff seeks Council direction to further explore whethe r priority could be
granted for any of the housing vouchers administered by the Housing Authority.
Past Council Actions
Meeting Date Description
02.13.1990 (Attachment D) Tenant Relocation Assistance Staff Report
02.27.1990 (Attachment E) Tenant Relocation Ordinance
04.12.2016 (Attachment F) Tenant Relocation Assistance Staff Report
04.26.2016 (Attachment G) Tenant Relocation Assistance Ordinance
02.14.2017 (Attachment H) Tenant Protection Laws Staff Report
03.28.2017 (Attachment I) Tenant Protection Laws Ordinance
08.28.2018 (Attachment J) Tenant Relocation Ordinance
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of
recommended action.
4 of 4
Prepared By: Lane Dilg, City Attorney
Approved
Forwarded to Council
Attachments:
A. CAO - Ordinance - Relocation Assistance - 09.10.2019
B. AHPP Amendment for constructive eviction
C. HTF Amendment for constructive eviction
D. Tenant Relocation Assistance Staff Report 02.13.1990 (Web Link)
E. Tenant Relocation Ordinance - 02.27.1990 (W eb Link)
F. Temporary and Permamnent Tenant Relocation Benefits Staff Report
04.12.2016 (Web Link)
G. Tenant Relocation Assistance Ordinance 04.26.2016
H. Tenant Protection Laws Staff Report 02.14.2017 (Web Link)
I. Tenant Protection Laws Ordinance 03.28.2017
J. Tenant Relocation Ordinance 08.28.2018 (Web Link)
K. Written Comments
City Council Meeting: September 10, 2019 Santa Monica, California
ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE 4.36.020
REGARDING RELOCATION EXPENSES
WHEREAS, tenants living in rental units exempt from the City’s Rent Stabilization
Ordinance pursuant to Charter Section 1801(c)(4) are at risk of being displaced from
those units due to no fault of their own due to large increases in rent that they are unable
to pay; and
WHEREAS, Government Code Section 7060.1(c) authorizes local governments to
mitigate any adverse impact resulting from tenants being permanently displaced from
their homes through no fault of their own; and
WHEREAS, finding replacement rental housing in the City or surrounding
communities is very difficult irrespective of income;
WHEREAS, judicial decisions interpreting Government Code Section 7060.1(c)
consistently authorize monetary payments as a form of mitigation for displaced tenants;
and
WHEREAS, the City’s long established temporary and permanent relocation
benefits are vital to Santa Monica tenants, especially to those who must vacate their
homes through no fault of their own, and such benefits are consistent with Government
Code Section 7060.1 and decisional precedents; and
WHEREAS, relocation benefits must be sufficient in amount to reasonably mitigate
the multitude of adverse impacts faced by tenants being permanently or temporarily
displaced from their homes through no fault of their own; and
WHEREAS, enhanced relocation benefits are necessary to cover increased costs
associated with relocations for senior citizens, disabled persons, or persons caring for
minor children; and
WHEREAS, the City Council is authorized to set permanent and temporary
relocation benefit fees by resolution; and
WHEREAS, on January 8, 2019, the City Council adopted Resolution No. 11158
(CCS) establishing permanent and temporary relocation benefit fees; and
WHEREAS, these permanent and temporary relocation benefits are reasonably
necessary and do not impose a prohibitive price on landlords’ right to exit the rental
housing business.
SECTION 1. Santa Monica Municipal Code Section 4.36.020 is hereby amended
as follows:
4.36.020 When permanent relocation fee required.
(a) A landlord shall pay a relocation fee to a tenant whose tenancy is
terminated or caused to be terminated in any of the follo wing circumstances: 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 has filed a notice of intent to withdraw the tenant’s
rental housing unit seeks to withdraw all rental housing units from the rental
housing market pursuant to as provided in Government Code Section 7060 et
seq.
(2) The landlord has filed a notice of intent seeks to recover
possession of the tenant’s a rental housing unit pursuant to Section 1806(a)(8),
1806(a)(9), 2304(a)(8), or 2304(a)(9) of the City Charter.
(3) The landlord has filed an application for removal permit pursuant to
City Charter Section 1803(t) seeks to recover possession to demolish or
otherwise withdraw the tenant’s rental housing unit from the rental housing
market. a rental housing unit, excluding single-family homes as defined in
Charter Section 2302, 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. For purposes of this
subsection, a tenant’s rental housing unit does not include a single-family home
as defined in City Charter Section 2302 but does include any unit that was
illegally converted to residential use.
(4) The landlord has been granted an exemption from provisions
governing controlled rental units as provided for by Charter Section 1801(c)(4)
and, at any time thereafter, has notified the tenant of intent to increase the rent in
an amount exceeding that which would have been permitted pursuant to City
Charter Section 1805.
(b) A relocation fee required pursuant to this Chapter shall be due and
payable to a tenant after the tenant receives 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 after having received written notice from either the landlord or the
Santa Monica Rent Control Board of any circumstance set forth in subdivision (a)
above. 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) A relocation 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. described in subsection (a).
SECTION 2. 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 3. 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 p ortion of the
ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. 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:
_________________________
LANE DILG
City Attorney
ATTACHMENT B
AHPP Guidelines amendment
Section 7.A. Priority Households
In establishing the list of households eligible to occupy affordable residences, the Housing Division shall
adhere to the following priorities:
1) First Priority
Persons who have been permanently displaced or face permanent displacement from
their housing residences in Santa Monica as a result of any of the following:
a) Eviction or constructive eviction pursuant to Santa Monica Municipal Code Section
4.36.070 (Ellis Act, owner-occupancy, or removal permit) eviction
b) Earthquake, fire, flood, or other natural disaster
c) Funding reductions in Santa Monica housing voucher assistance programs
d) Governmental Action, such as Code enforcement
e) Closure of a mobile home park
2) Second Priority
Persons who are:
a) Residents of Santa Monica
b) Working in Santa Monica at least 36 hours per week
ATTACHMENT C
HTF Guidelines amendment
Local Preference
(1) First priority shall be given to persons who have been permanently displaced or face
permanent displacement from housing in Santa Monica as a result of any of the following:
(a) A redevelopment project undertaken pursuant to California’s Community
Redevelopment Law (Health and Safety Code Sections 33000, et seq.) – applicable only
to projects funded by the Low-Moderate Income Housing Asset Trust Fund;
(b) Eviction or constructive eviction pursuant to Santa Monica Municipal Code Section
4.36.070 (Ellis Act, owner-occupancy, or removal permit) eviction;
(c) Earthquake, fire, flood, or other natural disaster;
(d) Cancellation of Section 8 contract by property owner; or
(e) Governmental Action, such as Code enforcement.
(2) Second priority shall be given to persons who are either:
(a) Residents of Santa Monica and/or
(b) Working in Santa Monica at least 36 hours per week for at least 6 months.
APARTMENT ASSOCIATION OF GREATER LOS ANGELES
AAGLA
“Great Apartments Start Here!”
6 2 1 S . WES T M ORE L A N D A V E ., L O S A N G E L E S, C A 9 0005 | 21 3 .38 4 .4 1 31 | AAG L A .OR G
Danielle Leidner-Peretz
Director, Government Affairs &
External Relations
danielle@aagla.org
213.384.4131; Ext. 309
September 9, 2019
Via Electronic Mail
Hon. Mayor Gleam Davis, and
Members of the Santa Monica City Council
City Hall
1685 Main Street
Santa Monica, California 90401
Re: Permanent Tenant Relocation Expenses for Triplexes and Duplexes (Agenda Item 7.C.)
Dear Mayor Davis and Members of the City Council;
This letter is written to express the Apartment Association of Greater Los Angeles’ (AAGLA)
strong opposition to the proposed ordinance under consideration by the Council which would require
owners of buildings of three units or less, who are exempt from the City’s rent control provisions as
set forth in the City Charter, to pay relocation fees to renters when the renter is provided written notice
of a rent increase in excess of the amount permitted pursuant to the Rent Stabilization Ordinance.
The proposed ordinance is in direct conflict with the City Charter as these owners are exempt
from the rent control ordinance, and as a result, are permitted to increase rent at their discretion. The
proposal serves to override the City Charter by, in effect, imposing rent control upon rent-controlled
exempt properties. Furthermore, the ordinance as drafted, necessitates the payment of relocation
fees triggered merely by the owner’s notice of “intent to increase the rent” in excess of the permitted
Rent Stabilization Ordinance amount.
Accordingly, this language creates a presumption that the renter will be moving without any
evidence of such intent and that the renter is vacating the unit specifically due to the rent increase. If
the Council moves to adopt this ordinance, it should be amended to require that following receipt of
a notice of a rent increase, the renter must provide the owner with written notice of intent to vacate
the unit due to the rent increase.
Additionally, small, “mom and pop” rental housing providers often have limited financial
resources to make large, lump sum relocation payments to renters that may be better financially
situated. Relocation benefits should be based on actual financial need (e.g., income, liquidity a nd
Item 7-C
09/10/19
1 of 2 Item 7-C
09/10/19
APARTMENT ASSOCIATION OF GREATER LOS ANGELES
AAGLA
“Great Apartments Start Here!”
6 2 1 S . WES T M ORE L A N D A V E ., L O S A N G E L E S, C A 9 0005 | 21 3 .38 4 .4 1 31 | AAG L A .OR G
assets test) and only for renters in good standing under their lease. The threshold for assessing need
should include household income of either 200% Federal Poverty Level or 80% Average Median
Income (AMI). The amount of relocation assistance should be based on actual rent paid or U.S
Department of Housing and Urban Development (HUD) Fair Market Rent.
Thank you for your time and consideration of these matters. If you have any questions, please
call me at (213) 384-4131; Ext. 309 or contact me via electronic mail at danielle@aagla.org.
Very truly yours,
Danielle Leidner-Peretz
Item 7-C
09/10/19
2 of 2 Item 7-C
09/10/19