O2712
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City Council Meeting August 23, 2022 Santa Monica, California
ORDINANCE NUMBER 2712 (CCS)
(City Council Series)
AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA ADDING SECTION 4.27.080 TO THE SANTA MONICA MUNICIPAL CODE
TO PROMOTE THE PUBLIC SAFETY AND WELFARE BY TEMPORARILY
PROHIBITING CERTAIN EVICTIONS DUE TO TENANTS’ FINANCIAL HARDSHIP
WHEREAS, the global pandemic due to COVID-19 has caused unprecedented
hardships, disruptions, and long-term impacts that continue to negatively affect Santa
Monica residents; and
WHEREAS, while there has been some relief in the form of an eviction moratorium,
rental assistance, and other efforts to prevent displacement, those programs are winding
down while the pandemic’s impacts continue to be felt; and
WHEREAS, inflation rates continue to spike, and rising costs are hampering
residents’ ability to recover from the loss of income and unexpected expenses that many
experienced during the pandemic’s first two years; and
WHEREAS, COVID-19 cases are increasing even as mitigation measures, such as
masking and social distancing, are no longer required; and
WHEREAS, 14,460 renter households in the City are cost burdened, representing
31.6% of renter households, as further discussed in the City’s most recent draft of the
Housing Element relating to fair housing; and
WHEREAS, there are 10,225 households in Santa Monica experiencing severe
housing cost burden, of which 2,930 of these households are families; and
WHEREAS, approximately 11.7% of Black and 8.6% of Hispanic/Latino family
households in the City were cost burdened even before the COVID-19 pandemic; and
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WHEREAS, on or about November 6, 2012, Section 1805 of the City Charter was
amended to allow for an Annual General Adjustment to the maximum rent ceiling using a
formula based upon the CPI, with a maximum increase of 6%; and
WHEREAS, applying that formula and maximum increase, the Rent Control Board
has approved an Annual General Adjustment of 6% to take effect starting September 1,
2022; and
WHEREAS, the Costa-Hawkins Rental Housing Act (Civil Code sections 1954.50
to 1954.535), allows owners to charge fair market rents upon vacancy of certain rental
housing units in accordance with Civil Code section 1954.52 (also known as “vacancy
decontrol”); and
WHEREAS, due to vacancy decontrol allowed by the Costa-Hawkins Rental
Housing Act, several other jurisdictions in the state have lowered their annual general
adjustment caps to address the imbalance caused by allowing a higher cap on the annual
general adjustment in addition to vacancy decontrol; and
WHEREAS, reducing the rent cap from 6% to 3% would strike the correct balance
in times of higher inflation given that property owners continue to have the benefit of setting
the initial rents at any amount upon a vacancy and, thus, can account for any maintenance
cost increases; and
WHEREAS, other rent stabilization jurisdictions have been able to adjust to these
conditions by freezing, lowering, or implementing caps on rent increases for controlled
units, including Oakland (3% cap) and City of West Hollywood (freeze), among others; and
WHEREAS, on August 3, 2022, the City Council approved a resolution to submit to
the voters a measure to amend Article XVIII of the City Charter providing that commencing
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on February 1, 2023, the rent control general adjustment during the period from February
1, 2023, through August 31, 2023, shall be 0.8% of the maximum allowable rent in effect
as of August 31, 2022, with a maximum dollar amount limit of nineteen dollars, with the
effect that the average annual general adjustment for the period from September 1, 2022,
through August 31, 2023, shall be no more than 3%, and providing thereafter the maximum
permitted annual increases shall be at the reduced 3% cap; and
WHEREAS, if that measure is approved by voters in the November 8, 2022,
election, it will not go into effect until January 1, 2023; and
WHEREAS, any tenant who cannot pay the 6% rent increase and who is evicted
for nonpayment will not be protected by the reduction in the maximum permissible rent
increase to be considered by the voters in the November 2022 election and, if passed, to
go into effect on February 1, 2023; and
WHEREAS, Santa Monica is one of the most expensive rental markets in the
country and one of the most challenging in which to find affordable apartment homes and
tenants who would be evicted for inability to pay the 6% rent increase would struggle to or
be unable find alternative housing in Santa Monica or in the Los Angeles area, causing
major disruption in their lives and their children’s education and in the worst cases leading
to long-term housing insecurity and homelessness; and
WHEREAS, vacancy decontrol means that eviction of rent controlled tenants who
cannot pay the 6% increase between September 1, 2022, and January 31, 2023, would
result in controlled units being rented out at substantially higher rents, thereby reducing
the overall stock of affordable housing during a time of acute need; and
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WHEREAS, this ordinance is presented for adoption as an emergency ordinance,
to be introduced, adopted, and immediately effective upon its passage by at least five
affirmative votes, pursuant to City Charter Section 615, because of the imminent
extraordinary rent control rent increase of 6% to take effect on September 1, 2022, amidst
ongoing public health, housing affordability, homelessness, and cost of living crises and
ongoing COVID-19 related states of emergency, giving rise to long-term and irreversible
consequences for displaced tenants and the City, as set forth above; and
WHEREAS, the City Council hereby finds that: the addition to the Santa Monica
Municipal Code implemented by this emergency ordinance is immediately necessary as
an emergency measure in order to preserve the public health, safety, and welfare by
protecting vulnerable tenants subject to an extraordinary rent increase and unable to pay
due to COVID-19 related financial distress, while preserving property owners’ rights,
including to pursue eviction of covered tenants and collection of covered rent after
September 1, 2023.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 4.27.060, is hereby added to
Santa Monica Municipal Code Chapter 4.27, TENANT PROTECTION, to read as follows:
4.27.60 Temporary eviction moratorium for rent controlled tenants subject to
extraordinary rent increase.
(a) The following terms as used in this Section have the following meanings:
(1) “Protected Period” means September 1, 2022, through January 31,
2023.
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(2) “Protected Period Rent” means rent that became due between
September 1, 2022, and January 31, 2023.
(3) “Financial Distress” means lacking sufficient funds to pay the rent
while foregoing or without foregoing adequate food, shelter, healthcare,
childcare, necessary transportation, or other life necessities for oneself or
one’s dependents.
(4) “Rent Controlled Residential Tenant” means a tenant in a Controlled
Rental Unit as that term is defined in section 1801(c) of the Charter of the
City of Santa Monica.
(5) “Maximum Allowable Rent” means the maximum permissible rent as
determined by the Rent Control Board pursuant to section 1804 of the
Charter of the City of Santa Monica.
(b) From September 1, 2022, until September 1, 2023, no landlord who has
increased a rent controlled residential tenant’s rent by more than three percent above the
maximum allowable rent in place prior to September 1, 2022, shall evict a rent controlled
residential tenant whose rent was so increased for nonpayment of Protected Period Rent
if nonpayment was due to the tenant’s COVID-19 related financial distress. This eviction
moratorium shall not apply to tenants for which their landlord who had previously given
notice of a rent increase that exceeds three percent from September 1, 2022, and
thereafter, who shall have modified that notice so that it does not exceed three percent
and/or accepts an increase not to exceed three percent, during the Protected Period. As
set forth in section (e) below, a tenant who has repaid unpaid rent prior to September 1,
2023, is permanently protected from eviction for nonpayment during the Protected Period.
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(c) If a rent controlled residential tenant whose rent was increased as described
in section (b) is unable to pay Protected Period Rent due to COVID-19 related financial
distress, the tenant shall provide notice and documentation to the landlord within 30 days
after rent is due. A tenant’s self-certification of inability to pay due to financial distress is
sufficient to meet this notice and documentation requirement.
(d) The protections provided in this section shall constitute an affirmative
defense for a tenant in any unlawful detainer action brought pursuant to California Code
of Civil Procedure section 1161, as amended, and any other civil action seeking repayment
of rental debt. To qualify for the affirmative defense, a tenant must provide notice and
documentation of inability to pay due to financial distress. A tenant may provide notice and
documentation, including self-certification, at any time prior to judgment against the tenant.
A tenant who does not provide notice and documentation within 30 days after rent is due
but does provide notice and documentation prior to judgment against them in an unlawful
detainer matter, is eligible for the affirmative defense. Notice and documentation shall
create a rebuttable presumption that nonpayment was due to the tenant’s COVID-19
related financial distress.
(e) A rent controlled residential tenant protected from eviction by this section
shall have until September 1, 2023, to repay Protected Period Rent that was not paid due
to COVID-19 related financial distress. A tenant may repay covered Protected Period Rent
in any number of payments or in a lump sum at any time before September 1, 2023. A
tenant who so repays covered Protected Period Rent shall be permanently protected from
eviction for nonpayment of that rent.
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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 portion 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. Pursuant to Sections 615 and 619 of the City
Charter, for the reasons stated in the recitals above, the City Council declares this
ordinance to be necessary as an emergency measure for preserving the public peace,
health, and safety, with the result that this ordinance shall be introduced and adopted at
the same meeting, shall become effective immediately upon its adoption.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
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Approved and adopted this 23rd day of August, 2022.
_____________________________
Sue Himmelrich, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do
hereby certify that the foregoing Ordinance No. 2712 (CCS) had its introduction
and adoption at the Santa Monica City Council meeting held on August 23, 2022,
by the following vote:
AYES: Councilmembers Davis, Negrete, Parra,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: Councilmembers Brock, de la Torre
ABSENT: None
ATTEST:
_____________________________________ _________________
Denise Anderson-Warren, City Clerk Date
A summary of Ordinance No. 2712 (CCS) was duly published pursuant to California
Government Code Section 40806.
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8/31/2022