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O27161 City Council Meeting September 13, 2022 Santa Monica, California ORDINANCE NUMBER 2716 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS 4.56.020, 4.28.030, AND ADDING SECTIONS 4.27.060 AND 4.27.070 TO CHAPTER 4.27 WHEREAS, the City of Santa Monica is committed to protecting housing for all segments of the community, in particular for its most vulnerable residents, as a matter of social justice and human dignity and in order to preserve diversity; and WHEREAS, a crisis exists in the City of Santa Monica due to the lack of affordable housing, the high number of homeless people, and the high number of people at risk of homelessness; and WHEREAS, this crisis has been created in part by high rental prices, insufficient production of affordable units, housing discrimination, tenant harassment, the inability of tenants to afford attorneys to represent them in evictions, and a lack of awareness of tenants’ rights; and WHEREAS, a second and even more dire crisis has been created by the COVD- 19 pandemic and its economic fallout, followed by high inflation in Santa Monica and in which many tenants have lost income while facing higher expenses to the extent they have difficulty paying all or part of their monthly rent; and WHEREAS, local, state, federal and court moratoriums on evictions are beginning to end or have new legal requirements for further protection, setting up an unprecedented wave of attempted evictions, and DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 2 WHEREAS, approximately 71% of Santa Monica households (32,295) rent their homes; and WHEREAS, Matthew Desmond reports in his Pulitzer Prize-winning book Evicted: Poverty and Profit in the American City, “Eviction’s fallout is severe. Losing a home sends families to shelters, abandoned homes, and the street. It invites depression and illness, compels families to move into degrading housing in dangerous neighborhoods, uproots communities, and harms children;” and WHEREAS, Santa Monica renters will not experience this housing and eviction crisis equally. Poor and working-class tenants, tenants of color, families with children, and persons with disabilities are disproportionately impacted by the pandemic and housing crisis due to inequities and shortcomings in health care, employment, and housing WHEREAS, providing Santa Monica residents with access to legal services for unlawful detainer actions will help mitigate these crises and reduce the serious threats to the public health, safety and general welfare of the residents of Santa Monica; and WHEREAS, a lack of knowledge and awareness of tenants’ rights, a lack of knowledge and awareness about recently enacted laws (such as the COVID-19 Tenant Relief Act of 2020) and orders (such as the Santa Monica Eviction Moratorium), and the fear of being evicted and being forced to seek housing in a limited housing market discourages many tenants from fighting evictions and asserting rights they may not be aware of, and this fear contributes to disruption of families and communities and to homelessness; and DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 3 WHEREAS, this housing emergency destabilizes families and neighborhoods, especially the most vulnerable among us, resulting in homelessness, and harm to social tranquility and the general welfare of Santa Monica, and WHEREAS, due to an inability to obtain legal representation because of a lack of resources, Santa Monica’s most vulnerable tenants are frequently unrepresented and evicted by landlords who are represented by competent and experienced counsel; and WHEREAS, landlords are overwhelmingly represented by attorneys in eviction cases in Los Angeles County, and tenants are not; and WHEREAS, according to the December 2019 STOUT report, Cost-Benefit Analysis of Providing A Right to Counsel to Tenants In Eviction Proceedings, providing Los Angeles County tenants with counsel levels the playing field and significantly improves the likelihood that eviction cases are decided fairly and on the merits; and WHEREAS, the STOUT report concluded even before the pandemic that Right to Counsel programs are investments (in the case of Los Angeles, at least $3 back for each dollar spent) in a community in that by preventing the displacement of its residents, a city will later spend much less on social services, law enforcement, and shelter and other housing services; and WHEREAS, providing tenants with counsel will increase housing stability, particularly for poor and working-class tenants, tenants of color, families with children and people with disabilities, which in turn will help prevent potentially massive displacement and homelessness; and WHEREAS, the City must track how many evictions and endeavors to evict occur in Santa Monica, along with the nature of these attempts and their outcomes, and DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 4 WHEREAS, the City has made commitments to preserve and protect affordable housing in its current Consolidated Plan, Analysis of Fair Housing Impediments, and its April 2020 Assessment of Fair Housing; and WHEREAS, one of the City’s top three stated goals in its April 2020 Assessment of Fair Housing was to “prevent displacement of low- and moderate-income residents” and the top strategy for achieving that goal is “explore the feasibility of a Right to Counsel Ordinance to protect tenants’ legal rights; and WHEREAS, Santa Monica City Council has police and emergency powers under its charter, and WHEREAS, pursuant to these aforementioned police and emergency powers, in order to protect the health, safety and welfare of the residents of Santa Monica, it is necessary to provide access to legal services to tenants who are subject to eviction proceedings. WHEREAS, the City of Santa Monica has a long history of protecting and tenants and applicants for housing from housing discrimination, tenant harassment, bad faith evictions, and bad faith business practices; and WHEREAS, protecting applicants and tenants from housing discrimination and tenant harassment is of paramount importance, especially during the current affordable housing crisis, and WHEREAS, the City Attorney’s Office’s successful enforcement program regarding Section 8 and rental assistance discrimination has not only helped reverse numerous refusals by landlords to rent to protected tenants and applicants, it has also revealed the types of such discrimination, and DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 5 WHEREAS, the City’s Tenant Harassment Ordinance prohibits a landlord from, in bad faith, influencing or attempting to influence “a tenant to vacate a rental housing unit through fraud, intimidation or coercion” it does not provide clarifying specific examples of such conduct, and WHEREAS, examples of such harassment include excessive rent increases, baseless threats to evict, threats to report immigration status, terminating a tenancy on a fraudulent basis of owner-occupancy, and excessive and baseless entries by landlord or landlord’s agents, and WHEREAS, the City’s Tenant Harassment Ordinance prohibits bad faith housing discrimination based on several protected classes such as race and disability, it does not include several relatively new classes added to state fair housing law such as source of income and immigration status, and WHEREAS, a landlord’s change-of-lease terms limiting attorneys fees can be misleading in that a Santa Monica resident has a legal right under local law to attorneys fees if they are the prevailing party in a tenant protection case, and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 4.56.020 Prohibitions: 4.56.020 Prohibitions. No landlord shall, with respect to property used as a rental housing unit under any rental housing agreement or other tenancy or estate at will, however created, do any of the following in bad faith: DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 6 (a) Interrupt, terminate or fail to provide housing services required by contract or by State, County or local housing, health or safety laws; (b) Fail to perform repairs and maintenance required by contract or by State, County or local housing, health or safety laws; (c) Fail to exercise due diligence in completing repairs and maintenance once undertaken; (d) Abuse the landlord’s right of access into a rental housing unit as that right is specified in California Civil Code Section 1954. This includes entries for “inspections” that are not related to necessary repairs or services; entries excessive in number; entries that improperly target certain tenants or are used to collect evidence against the occupant or otherwise beyond the scope of an otherwise lawful entry; (e) Abuse the tenant with words which are offensive and inherently likely to provoke an immediate violent reaction; (f) Influence or attempt to influence a tenant to vacate a rental housing unit through fraud, intimidation or coercion (Examples of such influence or attempts include but are not limited to the following: excessive rent increases, baseless threats to evict, threats to report immigration status, terminating a tenancy on a fraudulent basis of owner-occupancy, excessive and baseless entries by landlord or landlord’s agents.) (g) Threaten the tenant, by word or gesture, with physical harm; (h) Violate any law which prohibits discrimination based on race, gender, sexual preference, sexual orientation, ethnic background, nationality, religion, age, parenthood, marriage, pregnancy, disability, AIDS or occupancy by a minor child, immigration status, DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 7 source of income, gender identity, gender expression, or any other class expressly protected by a local, state, or federal law. (i)(1) Take action to terminate any tenancy including service of any notice to quit or other eviction notice or bring any action to recover possession of a rental housing unit based upon facts which the landlord has no reasonable cause to believe to be true or upon a legal theory which is untenable under the facts known to the landlord. No landlord shall be liable under this subsection for bringing an action to recover possession unless and until the tenant has obtained a favorable termination of that action. (2) This subsection shall not apply to any attorney who in good faith initiates legal proceedings against a tenant on behalf of a landlord to recover possession of a rental housing unit; (j) Interfere with a tenant’s right to quiet use and enjoyment of a rental housing unit as that right is defined by California law; (k) Refuse to acknowledge receipt of a tenant’s lawful rent payment; (l) Interfere with a tenant’s right to privacy, including, but not limited to, entering or photographing portions of a rental housing unit that are beyond the scope of a lawful entry or inspection. SECTION 2. Santa Monica Municipal Code Section 4.28.030, Prohibited Activities. 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 any authorized agent or employee of such person, to do or attempt to do any of the following: DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 8 (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, 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. DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 9 (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. (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 preexisting condition, reasonable wear and tear excepted. DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 10 (i) Refuse to accept from a prospective or current tenant rent in the form of 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. Refusal to accept includes failure or an unreasonable delay in filling out and returning any necessary paperwork. (j) 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. (k) 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, for an existing tenant or prospective tenant. SECTION 3. Santa Monica Municipal Code Section 4.27.060 Landlord Reporting Requirements for Endeavors to Evict Residential Tenants 4.27.060 Landlord Reporting Requirements for Endeavors to Evict Residential Tenants (a) For purposes of this section, the following terms shall have the following meanings: (1) “Endeavors to evict” means any attempt to begin the termination of tenancy or eviction process, such as notices to terminate tenancy, notices to pay rent or quit, notices to quit, and filing of unlawful detainer cases in court. DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 11 (b) Landlords shall email to the Santa Monica City Attorney’s Office (CAO) at EMReports@santamonica.gov unredacted copies of any notices of any endeavors to evict (pandemic-related or not), including a termination notice or a Summons and Complaint for Unlawful Detainer, within two (2) days of serving such notice or summons and complaint on a tenant. (c) Landlords shall also provide the CAO, by emailing to EMReports@santamonica.gov the following information within three (3) days of its availability to landlord: 1) whether tenant obtained a fee waiver; 2) whether tenant has legal representation; 3) whether landlord has legal representation; and 4) outcome of the endeavor to evict. (d) This section shall be enforceable as a misdemeanor pursuant to Government Code Section 8665 and Santa Monica Municipal Code Section 2.16.100, or through the issuance of administrative citations in accordance with Chapter 1.09 of the Santa Monica Municipal Code with a fine for each violation of this section up to a maximum of $1000. Violations of this section do not result in an affirmative defense for the tenant in an unlawful detainer action. SECTION 4. Santa Monica Municipal Code Section 4.27.070 Attorney fees provision in leases 4.27.070 Attorney fees provision in leases (a) No landlord shall serve notice of an amendment to a lease’s attorney’s fees provision without including a separate notice that includes the following statement: DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 12 “The attorney’s fees provisions in tenant protection laws such as the City’s Tenant Harassment Code and its Housing Anti-Discrimination Code that allow a prevailing tenant to pursue his or her own attorneys fees from the landlord (fee shifting) cannot be waived by a tenant or changed by a landlord’s amendments to a lease. Any such lease amendments or provisions are null and void with respect to the fee-shifting in tenant protection laws.” (b) This section shall be enforceable as a misdemeanor pursuant to Government Code Section 8665 and Santa Monica Municipal Code Section 2.16.100, or through the issuance of administrative citations in accordance with Chapter 1.09 of the Santa Monica Municipal Code with a fine for each violation of this section up to a maximum of $1000. SECTION 5. 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 6. 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. DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 13 SECTION 7. 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: _________________________ Douglas Sloan, City Attorney DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C Approved and adopted this 13th day of September, 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. 2716 (CCS) had its introduction on August 23, 2022 and was adopted at the Santa Monica City Council meeting held on September 13, 2022, by the following vote: AYES: Councilmembers Davis, de la Torre, Negrete, Parra, Mayor Himmelrich, Mayor Pro Tem McCowan NOES: None ABSENT: Councilmember Brock ATTEST: _____________________________________ _________________ Denise Anderson-Warren, City Clerk Date A summary of Ordinance No. 2716 (CCS) was duly published pursuant to California Government Code Section 40806. DocuSign Envelope ID: 6A023F1F-C926-4DB0-A459-47451424638C 9/21/2022