SR 07-12-2022 11B
City Council
Report
City Council Meeting: July 12, 2022
Agenda Item: 11.B
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To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration
Subject: Adoption of Resolutions for Proposed Ballot Measures on the November 8,
2022 Election Amending Articles XVIII and XXIII of the City Charter
Recommended Actions
Staff recommends that the City Council:
1. Adopt the attached resolution (Attachment A) placing a measure on the
November 8, 2022 ballot that would amend Article XXIII of the City Charter to
establish a rent registry for Nonrentcontrolled Rental Units; or, alternatively,
approve the first reading of an ordinance to establish a rent registry for
Nonrentcontrolled Rental Units (Attachment B).
2. If the resolution placing an amendment to Article XXIII of the City Charter on the
November 8, 2022, ballot (Attachment A) is approved, authorize City
Councilmembers to file written arguments for or against the measure and direct
the City Attorney to prepare an impartial analysis.
3. Adopt the attached resolution (Attachment C) placing a measure on the
November 8, 2022, ballot that would amend Article XVIII of the City Charter to
• Revise requirements for owners to evict tenants for owner-occupancy;
• Revise election procedures;
• Revise Commissioner term limits; and
• Authorize the Rent Control Board to impose a rent freeze during a
declared emergency.
4. If the resolution placing an amendment to Article XVIII of the City Charter on the
November 8, 2022, ballot (Attachment C) is approved, authorize City
Councilmembers to file written arguments for or against the measure and direct
the City Attorney to prepare an impartial analysis.
Executive Summary
At its April 28, 2022, Board meeting, the Santa Monica Rent Control Board voted to
recommend that the City Council place on the ballot for the November 8, 2022, general
election amendments to the City Charter, as follows:
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1) Add new Section 2304.5 to Article XXIII of the City Charter to require
the registration of all Nonrentcontrolled Rental Units;
2) Modify Article XVIII, Section 1806(a)(8)(iv) and (v) of the City Charter to
require that an owner intend to occupy a unit for at least three years
instead of one year before evicting a tenant, and occupy the unit within
sixty (60) days of vacancy;
3) Modify Article XVIII, Section 1803(e) of the City Charter to allow Rent
Control Board Commissioners to be elected to a maximum of three full
terms to align with City elected officials; and
4) Modify Article XVIII, Section 1803(d) of the City Charter to state that an
election need not be held if the number of qualified candidates does not
exceed the number of open Rent Control Board positions.
At its June 9, 2022 meeting, the Board voted to propose an additional charter
amendment giving the Board discretion to modify or suspend the annual general
adjustment during declared emergencies.
The Board believes that these amendments are in the public interest because they
would provide greater transparency about rental and occupancy rates for all rental units;
would strengthen tenant protections from unnecessary displacements; would streamline
elections to improve governmental functions; and would protect tenants during a
declared state of emergency. The attached Santa Monica Rent Control Board staff
reports dated April 28, 2022, (Attachment D) and June 9, 2022, (Attachment E),
respectively, explain in greater detail the reasons for these proposals.
Discussion
a. Registration of rental units not subject to the Rent Control Law.
Requiring the registration of all rental units could assist the City in a greater
understanding of the scope of the affordable housing crisis in Santa Monica and in
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determining more effective ways to mitigate its impact, an impact that is driving
housing instability, displacement, and greater numbers of the unhoused population.
i. Existing law
All units subject to the City’s Rental Control Law (Article XVIII of the City Charter,
also referenced as “RCCA”) must be registered with the City’s Rent Control agency.
Owners must provide information related to unit size, base rent, amenities and other
basic information. In addition, units must be re-registered following a vacancy and re-
rental. In this way, the agency obtains basic information about each rental unit to
allow it to administer and enforce the law more effectively. This information also helps
inform the agency about rental rates and trends as well as the loss/gain of controlled
units and the effectiveness of measures to maintain and increase the controlled rental
housing stock.
Currently, the City Charter does not require registration of Nonrentcontrolled Rental
Units. Like the registration requirements for controlled units, registration of
uncontrolled units would assist City officials in monitoring and mitigating the
affordable housing crisis and ensure that the tenant protections in the City Charter are
followed. Moreover, with the state limits on rent increases and eviction protections,
tenants would be better informed as to their rights.
To accomplish this, the Rent Control Board recommended that Article XXIII of the
Santa Monica City Charter be amended to require owners to register with the City
Nonrentcontrolled Rental Units. Article XXIII governs the City’s housing policies,
including tenant protections, in non-controlled rental units.
ii. Other jurisdictions
Most jurisdictions with some form of rent control or tenant protections require the
registration of rental units. The table below illustrates the requirements of some of
these cities.
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Jurisdiction Type of units
Initial
registration? Re-registration?
West Hollywood Controlled units Yes
Upon vacancy and re-
rental
Los Angeles Controlled units Yes Annual
LA County Controlled units Yes Annual
Culver City All rental units Yes
Annual, upon new tenancy
and changes in housing
services
Berkeley
Controlled and
partially exempt units Yes
Upon vacancy and re-
rental; annually for PE units
Beverly Hills Controlled units Yes
Upon vacancy and re-
rental
iii. Other considerations
The requirement to register rental units and provide basic information such as the
rental rate, ownership details, occupancy dates and amenities is not a new concept.
In fact, most jurisdictions that provide any tenant protections either in the form of rent
limits or just-cause eviction protections require the registration of rental units to gauge
the effectiveness of the laws and to aid in enforcement. These requirements have
been in place for decades in some jurisdictions, including Santa Monica. The RCCA
has required the registration of rent controlled rental units since its enactment.
iv. Potential requirements for a rent registry for Nonrentcontrolled
Rental Units in the City Charter, Article XXIII
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Article XXIII of the Santa Monica City Charter provides, among other things, eviction
protections for tenants living in Nonrentcontrolled Rental Units. Section 2302(a)
defines Nonrentcontrolled Rental Units as: “All residential rental units in the City of
Santa Monica except those units that are subject to rent control pursuant to Article
XVIII of this Charter or are single-family homes.” Section 2305, titled
“Implementation”, describes the broad authority of the City Council to “protect
community health, safety and welfare by, among other things, adopting ordinances,
resolutions or regulations to implement and effectuate the provisions of this Article,
including, but not limited to, provisions relating to exemptions, just cause, notices,
comparability of units, and good faith. Additionally, the City Council may create any
administrative mechanisms it deems necessary for this Article’s implementation.”
Requiring the registration of uncontrolled rental units that are subject to this Article
could arguably be accomplished through an ordinance or regulation since it could
reasonably be construed as a mechanism to ensure that landlords are adhering to the
just cause provisions. An annual registration requirement along with a requirement to
explain the reasons for changes in tenancy could greatly enhance these tenant
protections.
Alternatively, the City Council could propose an amendment to the City Charter to
require registration of these Nonrentcontrolled Rental Units. A new section could be
added to Article XXIII requiring that the units subject to this article must be registered
as set forth in the section and accompanying regulations. The City could also require
that rental units subject to Article XXIII be registered annually to ensure rental rates
and vacancy/tenant information is kept current and require registrations to be updated
upon a new tenancy or changes in housing services as Culver City has done.
As part of the annual registration, the City could require owners to provide some or all
of the following information:
1) Occupancy status and commencement date of the current tenancy;
2) The amount of rent the current tenant is paying;
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3) The reason the prior tenant vacated the unit, if known;
4) The water/utility metering status of the unit;
5) The amenities provided with the tenancy;
6) Any changes in ownership information; and
7) Any other information the City deems necessary.
To cover the reasonable expenses necessary to administer the rent registry and
provide counseling services and enforcement, the City could establish an annual per
unit fee that would be charged to property owners.
A new section, 2304.5, could be added to read:
2304.5 Registration of Nonrentcontrolled Rental Units
(a) Registration required. Upon issuance by the City of Santa Monica of a
valid written Rent Registration certificate, as set forth in this Section 2304.5, no
Landlord shall demand or accept Rent for a Nonrentcontrolled Rental Unit (NRU)
without first serving on the Tenant, or displaying in a conspicuous place, such
Rent Registration certificate.
(b) Registration Process.
(1) A Landlord shall provide Rent amount and Tenancy information
for every Rental unit on a Rent Registration form provided by the City. The
Rent Registration form shall be submitted on a date to be determined by
the City and on that date each year thereafter. Registration is complete
only when all of the following information is provided: ownership
information; property information; year built and certificate of occupancy
date; number of bedrooms and bathrooms for each NRU; the amount of
Rent in effect at the time of registration; a description of housing services;
water/utility metering status of the unit; and the property vacancy rate. If
any NRU has been vacant for more than 30 days, the Landlord shall
provide the date of vacancy and whether the vacancy is due to a buyout
agreement.
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(2) Every NRU Rent Registration certificate shall be updated
annually, as required by Section 2304.5(b)(1), upon a new tenancy, or
when there are changes in housing services.
(3) If an NRU is vacant for more than 30 days, the Landlord shall
provide a certification to the City of the duration of the vacancy, and that
the NRU shall be secured against unauthorized entry.
(4) For every property for which a Landlord is required to procure a
Rent Registration certificate pursuant to this section, the Landlord shall
post a notice in a form provided by the City, providing information about
this Subchapter 2304.5 and City contact information. Notices must be
posted in a conspicuous location in the common area, at the entry or
entries to the building or units, or other similar location or locations as
necessary to provide Tenants a reasonable opportunity to view the notice.
If there is no common area or similar location, this requirement may be
satisfied by mailing the notice to each Tenant of the building, by certified
mail, return receipt requested. The notice shall be written in English and
Spanish, and in any other languages as required by the City.
(c) Notice of Rent information deficiencies and opportunity to cure;
Appeals; and Final Administrative Decision.
(1) The City shall provide written notification to the Landlord of a
failure to comply with this section and allow fifteen (15) calendar days to
respond. The City shall not issue a Rent Registration certificate for the
NRU until the Landlord has substantially complied by providing the rental
information as required by this section.
(2) Any Landlord disputing the City’s notification of deficient
registration may file a written appeal with the City Manager or designee
within ten (10) calendar days of the date of the notice of deficiency. The
City Manager or designee shall provide a written notice within thirty (30)
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calendar days of its appeal decision, which shall be a final administrative
decision.
(d) Registration fee.
(1) A fee for the registration of NRU’s may be established by
resolution of the City Council. Such fees are intended to recover the City’s
reasonable costs associated with the administration and enforcement of
this section.
(2) A Landlord may pass through to the Tenant fifty percent (50%) of
the annual fee for the registration of the Tenant’s NRU (the pass-through
fee) if such Tenant continuously occupied the NRU during the period
covered by the completed registration. The City may establish applicable
conditions and procedures governing the pass-through. The pass-through
fee is not considered Rent and should appear as a separate line item on
the Rent statement. A Landlord may collect a maximum of one-twelfth
(1/12) of the pass-through fee per month.
Adopting this registration requirement as an ordinance provides more flexibility in
modifying or adding provisions to facilitate implementation which cannot be
anticipated at this stage. On the other hand, adding this registration requirement as a
charter amendment would make it much more difficult to repeal since it would require
voter approval, assuming the measure passed in November 2022.
b. Good faith requirements for owner-occupancy evictions
The RCCA prohibits evictions of tenants except as enumerated in the law. Owners or
qualified relatives who wish to move into their units and reside there permanently may
evict current tenants to do so, but only if they meet the requirements set forth in the
RCCA. One of those requirements is that the owner or relative “intend in good faith to
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move into the unit within thirty (30) days after the tenant vacates and to occupy the
unit as a primary residence for at least one year.”1
The Board has heard input from the public on the feasibility of requiring owners or
their qualified relatives to intend to occupy the unit for at least three years, instead of
one year, upon evicting an existing tenant. The purpose of placing both a
requirement to occupy the unit within a certain time frame and a good faith intent to
live there for a certain period is to ensure that the eviction is not used as a pretext for
the owner to rent the unit to a new tenant paying market rates.
i. Existing tools to prevent sham evictions and their
effectiveness.
Currently, if an owner or relative fails to move into the unit within 30 days, the landlord
is required to re-offer the unit to the displaced tenant and pay the tenant any
expenses incurred in the unlawful displacement.2 Moreover, owners cannot set a
new initial rent for the first tenancy following an owner-occupancy eviction; the
Maximum Allowable Rent (MAR) for this tenancy is the same MAR as the previous
tenancy.4 Other protections include a requirement that the owner offer to the
displaced tenant any unit that becomes vacant within a year of the tenant’s
displacement, including the unit from which the tenant was evicted.3 The Board also
has the ability to determine whether the first tenancy is a legitimate tenancy or a
sham, in which case the landlord cannot set the initial rent for a subsequent tenant.6
The table below illustrates the rate of evictions for owner-occupancy in the 5 years
preceding the current COVID-19-related eviction moratoria, the current status of the
units, and whether they have been re-rented. This information is based upon copies
1 RCL Section 1806(a)(8)(iv).
2 RCL Section
1806(a)(8)(v). 4
Regulation
3301(b)(1).
3 Regulations 9002(d)(4) and
9002(g). 6 Regulation 3301(k).
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of eviction notices filed with the agency, notices of ownership changes and vacancy
unit registrations.
Notices by
year from
2015 to
2019
Avg
property
size
Current
status
Rent still
restricted? New tenancy?
2019 - 5 4 units
1 sold to new
owner Yes 1 – May 2020
2018 - 7 5 units
1 Ellis, 1 sold
to new owner
6 restricted; 1
market
1 – 2020; 2021
(market rate)
2017 - 11 5 units
3 sold to new
owners
8 restricted; 3
market
5 new tenancies:
12018, 4-2019
2016 - 7 5 units
6 sold to new
owners
3 restricted; 4
market
6 new tenancies:
1-
2016; 3-2018; 1-
2019; 1-2021
2015 - 5 3 units
3 sold to new
owners Yes None
There are two instances of the re-rental of a formerly owner-occupied unit at the year
mark, but more typical is the re-rental around two years or later. There does not
seem to be a pattern as to the frequency of re-rental following an owner-occupancy
exemption. The units that were owner-occupied in 2016 have mostly been re-rented
while the units owner-occupied in 2015 all remain owner-occupied.
It is important to note that the good faith requirement to intend to live in the unit for a
certain period of time serves as evidence of bad faith in an enforcement proceeding if
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the owner or relative moves out before the requisite time period is up. Such evidence
is typically supported by other evidence to show that the eviction was carried out in
bad faith.
ii. Good faith requirements in other jurisdictions
The table below illustrates the requirements for other jurisdictions.
Jurisdiction
Time to
occupy
unit
Period of
residency
Evidence of
bad faith
Right to return if
vacated within
period?
West
Hollywood 90 days
12 consecutive
months
Rebuttable
presumption
Yes, if re-offered
for rent
Los Angeles 3 months
2 consecutive
years Yes
Yes, if tenant
notified owner
LA County 60 days
3 years unless
extenuating
circumstances Yes Yes
Culver City 3 months 36 months Yes No
Berkeley 3 months
36 consecutive
months Yes Yes
iii. Potential impact of extending length of residency requirement
The residency requirement is a statement of intent before owners can evict a tenant
using this section. So, if this change is made, an owner would have to declare an
intention to reside in the unit for at least three years. An owner who vacates the unit
within that time period would be presumed not to have acted in good faith in evicting
the tenant under this section.
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Based on past practices, Rent Control staff has found that the agency’s most effective
tool in deterring sham evictions has been the bar to setting a new initial rent for the
first tenancy following an owner-occupancy eviction as well as the tenant’s right to re-
rent the unit if the owner vacates it within a year. The requirement to re-register the
unit when it is re-rented allows the agency to enforce the limits on the MAR as well as
to determine whether the tenancy itself is legitimate.
To implement this change, RCCA Section 1806(a)(8)(iv) could be amended to read:
(iv) The landlord or enumerated relative must intend in good faith to
move into the unit within thirty (30) sixty (60) days after the tenant vacates
and to occupy the unit as a primary residence for at least one year three
years.
To strengthen this requirement, the Board has recommended a requirement that
owners re-offer the unit to the displaced tenant if the owner vacates the unit within
three years. In addition, currently, owners must move into the unit within 30 days
after a tenant vacates. If the owner fails to take possession within 30 days, the owner
must re-offer the unit to the displaced tenant. Many owners who genuinely intend to
occupy the unit as their primary residence find it difficult to make the transition that
quickly. And most jurisdictions allow at least 60 days for owners to move into the unit
after the tenant vacates.
To implement these changes, Section 1806(a)(8)(vi) and (v) could be amended as
follows:
(iv) The landlord or enumerated relative must intend in good faith to
move into the unit within thirty (30) sixty (60) days after the tenant vacates
and to occupy the unit as a primary residence for at least one year three
years.
(v) If the landlord or relative specified on the notice terminating tenancy
fails to occupy the unit within thirty (30) sixty (60) days after the tenant
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vacates or fails to occupy the unit as a primary residence for at least three
years, the landlord shall:
A. Offer the unit to the tenant who vacated it.
B. Pay to said tenant all reasonable expenses incurred in
moving to and/or from the unit.
c. Election administration
Term limits
RCCA Section 1803(e), Term of Office, states “Commissioners shall serve a
maximum of two full terms.” The Santa Monica City Charter also sets term limits for
its councilmembers. Article VI, Section 600 allows councilmembers to serve up to
three terms. For both agencies, terms are four years. The City Charter also states
that term limits apply to appointed terms as well as elected terms. The RCCA does
not specify whether appointed terms count toward the term limits.
In order to align with the City Charter and to have greater efficiency and cost
reductions in the administration of elections, the Board has proposed that the RCCA
be amended as follows:
Section 1803(e) TERM OF OFFICE: Commissioners shall serve a
maximum of two three full terms. These term limits shall not apply to
appointed terms, only elected terms.
Election efficiency
Currently, the RCCA requires that an election be held even if there are only as
many candidates as open Board positions. The Board has proposed an amendment
to the RCCA that an election is not necessary when the number of qualified
candidates does not exceed the open positions. To accomplish this, Section 1803(d)
could be amended as follows:
Section 1803(d) ELECTION OF COMMISSIONERS:
Commissioners shall be elected at general municipal elections in the
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same manner as set forth in Article XIV of the Santa Monica Charter,
except that the first Commissioners shall be elected at a special municipal
election held within ninety (90) days of the adoption of this Article. The
elected Commissioners shall take office on the first Tuesday following
their election. If, upon the City Clerk’s determination of the qualified
candidates, the number of candidates does not exceed the number of
vacant positions, no election will be held and the qualified candidates shall
be seated upon swearing in by the City Clerk.
d. Emergency Authority to Freeze Rents
i. The Board does not currently have the authority to alter or
suspend the General Adjustment in an emergency.
It is well-settled that the Rent Control Board derives its authority solely from the
language of the Charter. Administrative bodies, such as the Board, do not have general
police powers and cannot act in a way that contravenes the instrument from which they
were created.4
The Board, unlike the Governor, a city, or a county, has not been granted emergency
powers. The Board is not the governing body of the City of Santa Monica, and for that
reason has no emergency powers under the Emergency Services Act. Nor does any
other state law grant emergency powers to a municipal administrative agency; so the
Board’s emergency powers, if any exist, must be found in the statute that created it, the
City Charter. But nothing in the City Charter, from which the Board solely derives its
authority, grants it such powers. To the contrary, the Board’s powers are circumscribed
by the Charter, which lists only 15 things that the Board may or must do.5 One of those
4 Ocean Park Associates v. Santa Monica Rent Control Bd. (2004) 114 Cal.App.4th 1050, 1064, quoting
from Kerr’s Catering Service v. Department of Industrial Relations (1962) 57 Cal.2d 319, 329-330. In
Ocean Park, the Court struck down the Board’s practice, not provided for by the Charter, of allowing
the Administrator to file rent decrease petitions on behalf of all tenants in a building when an individual
petition revealed the presence of a common-area issue.
5 SMMC § 1803(f). See, also, Westsiders Opposed to Overdevelopment v. City of Los Angeles (2018)
27 Cal.App.5th 1079, 1086 (“A charter city may not act in conflict with its charter, and any act that is …
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things is “to make adjustments in the rent ceiling in accordance with [Charter] section
1805”, under which the adjustment is made according to a mandatory formula.
Section 1805 sets out the formula by which the Board must “announce” the annual
adjustment to rent ceilings to controlled units. Nothing in that section allows the Board
to alter that formula or suspend otherwise-allowed rent increases.
ii. Proposed Charter amendment would give the Board authority
to suspend rent increases in an emergency.
The global pandemic due to COVID-19 has caused unprecedented hardships,
disruptions and long-term impacts that continue to affect Santa Monica’s residents.
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. 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.
Meanwhile, COVID-19 cases are increasing even as mitigation measures, such as
masking and social distancing, are no longer required.
Other rent stabilization jurisdictions have been able to adjust to these conditions by
implementing temporary freezes on rent increases for controlled units.6 Because these
jurisdictions are not charter cities, they have the flexibility to enact measures through
ordinance changes passed by the governing body. By contrast, changes to Santa
Monica’s Charter can only be accomplished by a vote of the citizens of Santa Monica.
The proposed amendment would give the Board the discretion to respond to future
public health emergencies by suspending otherwise-allowed annual general
adjustments if such a suspension is necessary to protect the public’s health and safety.
not in compliance with the charter is void [citation]. A city charter operates as a limitation over all the
municipal affairs which the City is assumed to possess; it is not a grant of power.”)
6 See, e.g. City of Los Angeles and City of West Hollywood
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The proposed amendment is not a blank check; this authority could only be utilized
during a declared state of emergency. The Board could also be required to make
findings that the public’s health and safety is at risk and that implementing a rent
increase freeze, or modifying the otherwise-allowed increase, would mitigate the risks of
displacement and the attendant public health harms. Moreover, an owner would still be
able to petition for a rent increase if the inability to impose the general adjustment would
prevent the owner from obtaining a fair and reasonable return.
This amendment would provide the Board with the authority, which the Charter does not
currently provide, to address a future public health crisis and its financial impacts.
Proposed language for Board authority to deny rent increases during states of
emergency:
Section 1804(a) Temporary Freeze
(i) Rents shall not be increased during the one hundred-twenty (120) day
period following the date of adoption of this Article.
(ii) Notwithstanding Section 1805, the Board may, in its discretion and in
order to protect the public’s health and safety, disallow or, alternatively,
modify otherwise-allowed annual general adjustments to rent ceilings
during a state of emergency declared by the President of the United
States or the Governor, or upon the declaration of a local emergency by
the City Council or Director of Emergency Services, unless such individual
adjustment is necessary to obtain a fair and reasonable return per the
petition process in Section 1805.
Environmental Analysis
The proposed resolutions and/or ordinance are exempt from the provisions of
California Environmental Quality Act (CEQA) pursuant to 15061(b)(3) of the State
Implementation Guidelines (common sense exemption). Based on the evidence in
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the record, it can be seen with certainty that there is no possibility that the proposed
resolutions and/or ordinance may have a significant effect on the environment.
Financial Impacts & Budget Actions
Based on past practice, the Rent Board would reimburse the City for any additional
costs incurred by the City as a result of placing the measures and/or ordinance on the
November ballot.
Attachment A – Resolution to place an amendment to Article XXIII of the City Charter
on the November 8, 2022, ballot to establish a rent registry for Nonrentcontrolled Rental
Units
Attachment B – Ordinance to establish a rent registry for Nonrentcontrolled Rental
Units
Attachment C – Resolution to placement amendments to Article XVIII of the City
Charter on the November 8, 2022, ballot
Attachment D - April 28, 2022, Rent Control Staff Report
Attachment E – June 9, 2022, Rent Control Staff Report
Prepared By: Susan Cola, Assistant City Attorney
Approved
Forwarded to Council
Attachments:
A. RC-ExA-Resolution Art XXIII
B. RC-ExB-Ordinance
C. RC-ExC-Resolution Art XVIII
D. RC-ExD-042822 RC staff report
E. RC-ExE-060922 RC staff report
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City Council Meeting: July 12, 2022 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
SUBMITTING TO THE VOTERS A MEASURE TO AMEND ARTICLE XXIII OF THE
CITY CHARTER TO ESTABLISH A RENT REGISTRY FOR NONRENTCONTROLLED
RENTAL UNITS AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY NOVEMBER 8, 2022, AND AUTHORIZING CITY COUNCILMEMBERS TO
FILE WRITTEN ARGUMENTS FOR OR AGAINST THE MEASURE AND DIRECTING
THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE
WHEREAS, State restrictions on a local government’s ability to regulate rents
across tenancies or to update local ordinances to apply rent control to buildings built
after the adoption of the local law (April 1979 in Santa Monica) have substantially
hobbled local entities’ efforts to ameliorate the worsening affordable housing crisis;
and
WHEREAS, most new housing units are market rate units that are exempt from
local rent control laws and, therefore, do not improve local housing’s affordability; and
WHEREAS, despite the claims of developers, simply increasing the supply of
housing has not resulted in lower market rents; and
WHEREAS, rental rates continue to increase even as the market-rate housing
supply grows; and
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WHEREAS, as rent-controlled units continue to be withdrawn from the rental
market through the Ellis process and demolished and replaced with exempt units, the
balance continues to shift toward fewer controlled units; and
WHEREAS, state laws have led to a two-tiered system in which some tenants
enjoy protections from large, unpredictable rent increases while others’ rents are
limited only by a one-size-fits-all state law with no local enforcement mechanism; and
WHEREAS, requiring the registration of all rental units could assist the City in a
greater understanding of the scope of the affordable housing crisis in Santa Monica
and in determining more effective ways to mitigate its impact, an impact that is driving
housing instability, displacement, and greater numbers of the unhoused population;
and
WHEREAS, in light of the foregoing recitals, the Santa Monica Rent Control
Board has recommended that Article XXIII of the City Charter be amended to add new
Section 2304.5 to require the registration of all Nonrentcontrolled Rental Units; and
WHEREAS, the City Council has considered and approved the Board’s
recommendation because this amendment is in the public interest because it would
provide greater transparency about rental and occupancy rates for all rental units and
would strengthen tenant protections from unnecessary displacements; and
WHEREAS, pursuant to California Elections Code Section 10403, the City
Council has previously requested that the County of Los Angeles consent and agree to
the consolidation of all aspects of a General Municipal Election with the Statewide
General Election scheduled for Tuesday, November 8, 2022, for the purpose of electing
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members of the Santa Monica City Council, the Santa Monica Rent Control Board, the
Santa Monica-Malibu Unified School District, and the Santa Monica College Community
College District.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AND PROCLAIM AS FOLLOWS:
SECTION 1. At the General Municipal Election called for November 8, 2022, the
following measure shall be submitted to the qualified electors of the City of Santa
Monica:
PROPOSITION " ": Shall the City Charter be
amended to add new Section 2304.5 to Article
XXIII of the City Charter to require the registration
of all Nonrentcontrolled Rental Units?
Yes
_________
No
SECTION 2. That the City Clerk shall file a certified copy of this resolution with
the Board of Supervisors and with the county election department of the County of Los
Angeles.
SECTION 3. That the City of Santa Monica recognizes that additional costs may
be incurred by the County by reason of the addition of this measure to the ballot and
agrees to reimburse the County for any additional costs.
SECTION 4. The City Clerk shall transmit to the City Attorney, in accordance
with applicable law, a copy of the proposed measure. The City Attorney shall prepare
an impartial analysis of the measure, which shall not exceed 500 words in length. The
impartial analysis for the measure shall be filed by the date set by the City Clerk for the
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filing of primary arguments. In accordance with applicable law, not less than 10
calendar days before the City Clerk submits the official election materials for printing,
the City Clerk shall make a copy of all applicable elections materials available for public
examination in the City Clerk’s office.
SECTION 5. The City Council authorizes its members, as follows, to file written
arguments for or against the measure described above and which is contained in Exhibit
1 to this Resolution, which Exhibit is incorporated by reference herein:
Registration of Nonrentcontrolled Rental Units (Exhibit 1):
FOR: _____________________________________________
AGAINST: _____________________________________________
All written arguments filed by any person in favor of or against the measure,
including any rebuttal arguments, shall be accompanied by the names and signatures of
the persons submitting the argument as required by applicable law, and any names,
signatures and arguments may be filed until the time and date fixed by the City Clerk in
accordance with applicable law, after which no change may be submitted to the City
Clerk unless permitted by law.
SECTION 6. The City Clerk shall cause the text of the measure, which is
contained in Exhibit 1, together with the City Attorney impartial analysis, and any
arguments for or against the measure, as well as any rebuttals, to be mailed to all
qualified voters with the sample ballots. In addition to other notices and publications
required by law, the City Clerk, not less than forty (40) days and not more than sixty (60)
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days before the General Municipal Election, shall cause the text of the measure to be
published once in the official newspaper and in the edition thereof during the day of
publication. The City Clerk is authorized to give such notices and to fix such times and
dates as are required by law or which are appropriate to properly conduct the election.
SECTION 7. The provisions of Resolution Numbers 11425 (CCS) and 11426
(CCS) are referred to and incorporated into this resolution for more particulars
concerning the conduct of General Municipal Election to be held on November 8, 2022,
and in all respects the election shall be held and conducted as provided for by
applicable law. The City Clerk is authorized and directed to procure and furnish any
official ballots, notices, printed materials and all supplies or equipment that may be
necessary in order to properly and lawfully conduct the election.
SECTION 8. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
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Exhibit 1
New section 2304.5 shall be added to Article XXIII of the City Charter to read as follows:
2304.5 Registration of Nonrentcontrolled Rental Units
(a) Registration required. Upon issuance by the City of Santa Monica of a
valid written Rent Registration certificate, as set forth in this Section 2304.5, no
Landlord shall demand or accept Rent for a Nonrentcontrolled Rental Unit (NRU)
without first serving on the Tenant, or displaying in a conspicuous place, such
Rent Registration certificate.
(b) Registration Process.
(1) A Landlord shall provide Rent amount and Tenancy information
for every Rental unit on a Rent Registration form provided by the City. The
Rent Registration form shall be submitted on a date to be determined by
the City and on that date each year thereafter. Registration is complete
only when all of the following information is provided: ownership
information; property information; year built and certificate of occupancy
date; number of bedrooms and bathrooms for each NRU; the amount of
Rent in effect at the time of registration; a description of housing services;
water/utility metering status of the unit; and the property vacancy rate. If
any NRU has been vacant for more than 30 days, the Landlord shall
provide the date of vacancy and whether the vacancy is due to a buyout
agreement.
(2) Every NRU Rent Registration certificate shall be updated
annually, as required by Section 2304.5(b)(1), upon a new tenancy, or
when there are changes in housing services.
(3) If an NRU is vacant for more than 30 days, the Landlord shall
provide a certification to the City of the duration of the vacancy, and that
the NRU shall be secured against unauthorized entry.
(4) For every property for which a Landlord is required to procure a
Rent Registration certificate pursuant to this section, the Landlord shall
post a notice in a form provided by the City, providing information about
this Subchapter 2304.5 and City contact information. Notices must be
posted in a conspicuous location in the common area, at the entry or
entries to the building or units, or other similar location or locations as
necessary to provide Tenants a reasonable opportunity to view the notice.
If there is no common area or similar location, this requirement may be
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satisfied by mailing the notice to each Tenant of the building, by certified
mail, return receipt requested. The notice shall be written in English and
Spanish, and in any other languages as required by the City.
(c) Notice of Rent information deficiencies and opportunity to cure;
Appeals; and Final Administrative Decision.
(1) The City shall provide written notification to the Landlord of a
failure to comply with this section and allow fifteen (15) calendar days to
respond. The City shall not issue a Rent Registration certificate for the
NRU until the Landlord has substantially complied by providing the rental
information as required by this section.
(2) Any Landlord disputing the City’s notification of deficient
registration may file a written appeal with the City Manager or designee
within ten (10) calendar days of the date of the notice of deficiency. The
City Manager or designee shall provide a written notice within thirty (30)
calendar days of its appeal decision, which shall be a final administrative
decision.
(d) Registration fee.
(1) A fee for the registration of NRU’s may be established by
resolution of the City Council. Such fees are intended to recover the City’s
reasonable costs associated with the administration and enforcement of
this section.
(2) A Landlord may pass through to the Tenant fifty percent (50%) of
the annual fee for the registration of the Tenant’s NRU (the pass-through
fee) if such Tenant continuously occupied the NRU during the period
covered by the completed registration. The City may establish applicable
conditions and procedures governing the pass-through. The pass-through
fee is not considered Rent and should appear as a separate line item on
the Rent statement. A Landlord may collect a maximum of one-twelfth
(1/12) of the pass-through fee per month.
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City Council Meeting: July 12, 2022 Santa Monica, California
ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ADDING SANTA MONICA MUNICIPAL CODE CHAPTER 4.25:
REGISTRATION OF NONRENTCONTROLLED RENTAL UNITS
WHEREAS, the State is experiencing a severe housing crisis that is driving the
cost of living beyond the reach of an increasing share of the population; and
WHEREAS, the City has long been committed to ensuring that Santa Monica is
an inclusive and affordable community despite mounting market pressures; and
WHEREAS, through discussions that occurred as part of the adoption process
for the City’s major policy documents, including the Land Use and Circulation Element
(“LUCE”) of the City’s General Plan in 2010, the current Housing Element in 2013, the
City’s new Zoning Ordinance, Chapters 9.01 through 9.52 of Article 9 of the Santa
Monica Municipal Code (“Zoning Ordinance”) in 2015, and the Downtown Community
Plan in 2017, and recent amendments to the City’s Affordable Housing Production
Program, the City has identified the need for a variety of housing types to serve all
household sizes at all income levels; and
WHEREAS, with approximately 75% of its residents in rental housing, the City
has maintained a long-standing commitment to protecting tenants and existing rental
housing stock; and
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WHEREAS, increased demand for rental housing in the City, combined with
rising housing costs across the City and the State, have made it increasingly difficult for
those who live and work in Santa Monica to find rental housing that is available,
affordable, and meets their needs; and
WHEREAS, Article XVIII of the City Charter, the City’s Rent Control Law, was
first adopted in 1979; and
WHEREAS, State restrictions on a local government’s ability to regulate rents
across tenancies or to apply rent control to buildings built after the adoption of a local
law have substantially hobbled local entities’ efforts to ameliorate the worsening
affordable housing crisis; and
WHEREAS, as rent-controlled units continue to be withdrawn from the rental
market through the Ellis process and demolished and replaced with exempt units, the
balance continues to shift toward fewer controlled units; and
WHEREAS, as a result, most rental housing units in the City are exempt from the
protections of the City’s Rent Control Law, and, therefore, do not improve the City’s
housing’s affordability; and
WHEREAS, rental rates for market rate rental housing units within the City
continue to increase even as the market-rate housing supply grows; and
WHEREAS, Article XXIII of the Santa Monica City Charter, Housing Policies,
provides, among other things, eviction protections for tenants living in rental housing
units that are not subject to the City’s Rent Control Law (“Nonrentcontrolled Rental
Units”); and
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WHEREAS, Santa Monica Charter Section 2305 authorizes the City Council to
adopt ordinances, resolutions or regulations, and create any administrative mechanisms
it deems necessary, to implement and effectuate the provisions of Article XXIII; and
WHEREAS, requiring the registration of all Noncontrolled Rental Units could
assist the City in a greater understanding of the scope of the affordable housing crisis in
the City and in determining more effective ways to mitigate its impact, an impact that is
driving housing instability, displacement, and greater numbers of the unhoused
population; and
WHEREAS, the City Council finds and declares that requiring registration of
Nonrentcontrolled Rental Units will: allow the City to gauge the effectiveness of the
Article XXIII and to aid in enforcement of the tenant protections set forth therein; assist
City officials in monitoring and mitigating the affordable housing crisis and ensure that
the tenant protections in the City Charter are followed; better inform tenants of
Nonrentcontrolled Rental Units as to their rights; and provide greater transparency
about rental and occupancy rates for all rental units.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Chapter 4.25 is hereby added to
read as follows:
Chapter 4.25 Registration of Nonrentcontrolled Units
4.25.010 Purpose.
The Council finds and declares that requiring the registration of rental housing
units not subject to the provisions of Article XVIII of the Santa Monica City Charter, the
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City’s Rent Control Law, will assist City officials in monitoring and mitigating the
affordable housing crisis and ensure that the tenant protections in Article XXIII, Housing
Policies, of the Santa Monica City Charter are followed; gauge the effectiveness of the
Article XXIII and to aid in enforcement of the tenant protections set forth therein; ensure
that tenants are better informed as to their rights under Article XXIII, and to obtain
greater transparency about rental and occupancy rates for all rental units.
4.25.020 Definitions.
For purposes of this Chapter, the following words or phrases shall have the same
meanings as set forth in Charter Section 2302 as follows:
(a) “Landlord” means an owner, lessor, sublessor or any other person entitled
to receive rent for the use and occupancy of any rental unit, or an agent, representative
or successor of any of the foregoing.
(b) “Nonrentcontrolled Units” or “NRUs” means All residential rental units in
the City of Santa Monica except those units that are subject to rent control pursuant to
Article XVIII of this Charter or are single-family homes.
(c) “Rent” means all periodic payments and all nonmonetary consideration
including, but not limited to, the fair market value of goods or services rendered to or for
the benefit of the landlord under an agreement concerning the use or occupancy of a
rental unit and premises including all payment and consideration demanded or paid for
parking, pets, furniture, subletting and security deposits for damages and cleaning.
(d) “Rental Housing Agreement” means An agreement, oral, written or
implied, between a landlord and tenant for use or occupancy of a rental unit and for
housing services.
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(e) “Rental Units” means any building, structure, or part thereof, or land
appurtenant thereto, or any other rental property rented or offered for rent for living or
dwelling house units, together with all housing services connected with use or
occupancy of such property such as common areas and recreational facilities held out
for use by the tenant.
(f) “Tenant” means a tenant, subtenant, lessee, sublessee or any other
person entitled under the terms of a rental housing agreement to the use or occupancy
of any rental unit.
(g) “Property” means all rental units on a parcel or lot or contiguous parcels
or contiguous lots under common ownership.
(h) “Single-Family Home” means a property that has been developed with
only one dwelling and any lawful accessory structures, or a lawfully created
condominium, stock cooperative or similar unit that is part of a larger residential
structure or complex.
4.25.030 Exemptions
(a) Rental units in hotels, motels, inns, tourist homes and rooming and
boarding houses which are rented primarily to transient guests for a period of less than
fourteen (14) days.
(b) Rental units in any hospital, convent, monastery, extended medical care
facility, asylum, non-profit home for seniors, or dormitory owned and operated by an
institution of higher education.
(c) Rental units which a government unit, agency or authority owns, operates,
manages, or in which governmentally subsidized tenants reside only if applicable
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Federal or State law or administrative regulation specially exempt such units from
municipal control.
(d) Where a unit is actually used for purposes of providing, on a nonprofit
basis, child care of other residential social services in accordance with applicable laws.
This exemption shall expire when the use upon which exemption is based ceases. This
exemption shall only apply to units as they become vacant. This exemption shall not be
construed to authorize the eviction of any tenant. The City may adopt regulations to
determine whether a unit qualifies for an exemption under this Section.
4.25.040 Registration required
Upon issuance by the City of Santa Monica of a valid written Rent Registration
certificate, as set forth in this Chapter 4.25, no Landlord shall demand or accept Rent
for a Nonrentcontrolled Rental Unit (NRU) without first serving on the Tenant, or
displaying in a conspicuous place, such Rent Registration certificate.
4.25.050 Registration Process
(a) A Landlord shall provide Rent amount and Tenancy information for every
Rental unit on a Rent Registration form provided by the City. The Rent Registration
form shall be submitted on a date to be determined by the City and on that date each
year thereafter. Registration is complete only when all of the following information is
provided: ownership information; property information; year built and certificate of
occupancy date; number of bedrooms and bathrooms for each NRU; the amount of
Rent in effect at the time of registration; a description of housing services; water/utility
metering status of the unit; and the property vacancy rate. If any NRU has been vacant
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for more than 30 days, the Landlord shall provide the date of vacancy and whether the
vacancy is due to a buyout agreement.
(b) Every NRU Rent Registration certificate shall be updated annually, as
required by paragraph (a), above, upon a new tenancy, or when there are changes in
housing services.
(c) If an NRU is vacant for more than 30 days, the Landlord shall provide a
certification to the City of the duration of the vacancy, and that the NRU shall be
secured against unauthorized entry
(d) For every property for which a Landlord is required to procure a Rent
Registration certificate pursuant to this section, the Landlord shall post a notice in a
form provided by the City, providing information about this Subchapter 2304.5 and City
contact information. Notices must be posted in a conspicuous location in the common
area, at the entry or entries to the building or units, or other similar location or locations
as necessary to provide Tenants a reasonable opportunity to view the notice. If there is
no common area or similar location, this requirement may be satisfied by mailing the
notice to each Tenant of the building, by certified mail, return receipt requested. The
notice shall be written in English and Spanish, and in any other languages as required
by the City.
4.25.060 Notice of Rent information deficiencies and opportunity to cure;
Appeals; and Final Administrative Decision
(a) The City shall provide written notification to the Landlord of a failure to
comply with this section and allow fifteen (15) calendar days to respond. The City shall
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not issue a Rent Registration certificate for the NRU until the Landlord has substantially
complied by providing the rental information as required by this section.
(b) Any Landlord disputing the City’s notification of deficient registration may
file a written appeal with the City Manager or designee within ten (10) calendar days of
the date of the notice of deficiency. The City Manager or designee shall provide a
written notice within thirty (30) calendar days of its appeal decision, which shall be a
final administrative decision.
4.25.070 Registration fee
(a) A fee for the registration of NRU’s may be established by resolution of the
City Council. Such fees are intended to recover the City’s reasonable costs associated
with the administration and enforcement of this section.
(b) A Landlord may pass through to the Tenant fifty percent (50%) of the
annual fee for the registration of the Tenant’s NRU (the pass-through fee) if such
Tenant continuously occupied the NRU during the period covered by the completed
registration. The City may establish applicable conditions and procedures governing the
pass-through. The pass-through fee is not considered Rent and should appear as a
separate line item on the Rent statement. A Landlord may collect a maximum of one-
twelfth (1/12) of the pass-through fee per month.
4.25.080 Administrative Regulations
The City Manager or designee may promulgate administrative regulations to
implement the provisions of this Chapter, including, but not limited to, regulations
related to additional annual registration reporting procedures and reporting
requirements. No person shall fail to comply with any such regulations.
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SECTION 2. Any provision of the 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. This Ordinance shall become
effective 30 days from its adoption.
APPROVED AS TO FORM:
_______________________
DOUGLAS SLOAN
City Attorney
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City Council Meeting: July 12, 2022 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
SUBMITTING TO THE VOTERS A MEASURE TO AMEND ARTICLE XVIII OF THE
CITY CHARTER TO REVISE REQUIREMENTS FOR OWNERS TO EVICT TENANTS
FOR OWNER-OCCUPANCY, REVISE ELECTION PROCEDURES, REVISE
COMMISSIONER TERM LIMITS, AND PROVIDE THE RENT CONTROL BOARD
WITH AUTHORITY TO FREEZE RENTS DURING A DECLARED EMERGENCY, AT
THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY NOVEMBER 8,
2022, AND AUTHORIZING CITY COUNCILMEMBERS TO FILE WRITTEN
ARGUMENTS FOR OR AGAINST THE MEASURE AND DIRECTING THE CITY
ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE.
WHEREAS, the City’s Rental Control Law (Article XVIII of the City Charter,
also referenced as “RCCA”) prohibits evictions of tenants except as enumerated in
the law; and
WHEREAS, owners or qualified relatives who wish to move into their units and
reside there permanently may evict current tenants to do so, but only if they meet the
requirements set forth in the RCCA; and
WHEREAS, one of those requirements is that the owner or relative “intend in
good faith to move into the unit within thirty (30) days after the tenant vacates and to
occupy the unit as a primary residence for at least one year”; and
WHEREAS, the Rent Control Board has heard input from the public on the
feasibility of requiring owners or their qualified relatives to intend to occupy the unit for
at least three years, instead of one year, upon evicting an existing tenant; and
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WHEREAS, the purpose of placing both a requirement to occupy the unit within
a certain time frame and a good faith intent to live there for a certain period is to
ensure that the eviction is not used as a pretext for the owner to rent the unit to a new
tenant paying market rates; and
WHEREAS, in light of the foregoing recitals, the Santa Monica Rent Control
Board has recommended that the City Charter be amended to modify Article XVIII,
Section 1806(a)(8)(iv) and (v) to require that an owner intend to occupy a unit for at
least three years instead of one year before evicting a tenant of the City Charter, and
occupy the unit within sixty (60) days of vacancy; and
WHEREAS, RCCA Section 1803(e), Term of Office, states “Commissioners
shall serve a maximum of two full terms”; and
WHEREAS, Article VI, Section 600 of the City Charter allows councilmembers
to serve up to three terms; and
WHEREAS, for both the Rent Control Board and the City Council, terms are
four years; and
WHEREAS, the City Charter also states that term limits apply to appointed
terms as well as elected terms; and
WHEREAS, the RCCA does not specify whether appointed terms count toward
the term limits; and
WHEREAS, in order to align with the City Charter and to have greater
efficiency and cost reductions in the administration of elections, the Board has
proposed that the RCCA be amended as follows:
Section 1803(e) TERM OF OFFICE: Commissioners shall serve a
maximum of two three full terms. These term limits shall not apply to appointed
terms, only elected terms.
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WHEREAS, currently, the RCCA requires that an election be held even if there
are only as many candidates as open Board positions; and
WHEREAS, the Rent Control Board has proposed an amendment to the
RCCA that an election is not necessary when the number of qualified candidates
does not exceed the open positions. To accomplish this, Section 1803(d) could be
amended as follows:
Section 1803(d) ELECTION OF COMMISSIONERS: Commissioners shall
be elected at general municipal elections in the same manner as set forth in Article XIV
of the Santa Monica Charter, except that the first Commissioners shall be elected at a
special municipal election held within ninety (90) days of the adoption of this Article. The
elected Commissioners shall take office on the first Tuesday following their election. If,
upon the City Clerk’s determination of the qualified candidates, the number of
candidates does not exceed the number of vacant positions, no election will be held and
the qualified candidates shall be seated upon swearing in by the City Clerk.
WHEREAS, the Rent Control Board derives its authority solely from the language
of the Charter; and
WHEREAS, administrative bodies, such as the Board, do not have general
police powers and cannot act in a way that contravenes the instrument from which they
were created; and
WHEREAS, the Rent Control Board, unlike the Governor, a city, or a county, has
not been granted emergency powers; and
WHEREAS, the Board is not the governing body of the City of Santa Monica, and
for that reason has no emergency powers under the Emergency Services Act nor does
any other state law grant emergency powers to a municipal administrative agency; and
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WHEREAS, the Rent Control Board’s emergency powers, if any exist, must be
found in the statute that created it, the City Charter; and
WHEREAS, due to the global pandemic due to COVID-19 has caused
unprecedented hardships, disruptions and long-term impacts that continue to affect
Santa Monica’s 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, other rent stabilization jurisdictions have been able to adjust to these
conditions by implementing temporary freezes on rent increases for controlled units;
and
WHEREAS, because these jurisdictions are not Charter cities, they have the
flexibility to enact measures through ordinance changes passed by the governing body;
and
WHEREAS, by contrast, changes to Santa Monica’s Charter can only be
accomplished by a vote of the citizens of Santa Monica; and
WHEREAS, the Rent Control Board has proposed an amendment that would
give the Rent Control Board the discretion to respond to future public health
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emergencies by suspending otherwise-allowed annual general adjustments if such a
suspension is necessary to protect the public’s health and safety; and
WHEREAS, the proposed amendment is not a blank check; this authority could
only be utilized during a declared state of emergency; and
WHEREAS, the Board would also be required to make findings that the public’s
health and safety is at risk and that implementing a rent increase freeze, or modifying
the otherwise-allowed increase, would mitigate the risks of displacement and the
attendant public health harms; and
WHEREAS, an owner would still be able to petition for a rent increase if the
inability to impose the general adjustment would prevent the owner from obtaining a fair
and reasonable return; and
WHEREAS, the Rent Control Board has proposed language for the Board to
deny or modify rent increases during states of emergency:
Section 1804(a) Temporary Freeze
(i) Rents shall not be increased during the one hundred-twenty (120) day
period following the date of adoption of this Article.
(ii) Notwithstanding Section 1805, the Board may, in its discretion and in
order to protect the public’s health and safety, disallow or, alternatively,
modify otherwise-allowed annual general adjustments to rent ceilings
during a state of emergency declared by the President of the United
States or the Governor, or upon the declaration of a local emergency by
the City Council or Director of Emergency Services, unless such individual
adjustment is necessary to obtain a fair and reasonable return per the
petition process in Section 1805.
WHEREAS, the City Council has considered and approved the Board’s
recommendation because these amendments are in the public interest because they
would strengthen tenant protections from unnecessary displacements; would streamline
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elections to improve governmental functions; and would provide protections to tenants
during a declared state of emergency; and
WHEREAS, pursuant to California Elections Code Section 10403, the City
Council has previously requested that the County of Los Angeles consent and agree to
the consolidation of all aspects of a General Municipal Election with the Statewide
General Election scheduled for Tuesday, November 8, 2022, for the purpose of electing
members of the Santa Monica City Council, the Santa Monica Rent Control Board, the
Santa Monica-Malibu Unified School District, and the Santa Monica College Community
College District.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AND PROCLAIM AS FOLLOWS:
SECTION 1. At the General Municipal Election called for November 8, 2022, the
following measure shall be submitted to the qualified electors of the City of Santa
Monica:
PROPOSITION " ": Shall the City Charter be
amended to give the Rent Control Board
discretion to adjust or suspend the annual
general adjustment in times of declared
emergencies, to require that an owner
intend to occupy a unit for at least three
years before evicting a tenant, to allow
Commissioners to be elected to three
terms, and to not require an election if the
number of qualified candidates does not
exceed the number of open Board
positions?
Yes
_________
No
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SECTION 2. That the City Clerk shall file a certified copy of this resolution with
the Board of Supervisors and with the county election department of the County of Los
Angeles.
SECTION 3. That the City of Santa Monica recognizes that additional costs may
be incurred by the County by reason of the addition of this measure to the ballot and
agrees to reimburse the County for any additional costs.
SECTION 4. The City Clerk shall transmit to the City Attorney, in accordance
with applicable law, a copy of the proposed measure. The City Attorney shall prepare
an impartial analysis of the measure, which shall not exceed 500 words in length. The
impartial analysis for each measure shall be filed by the date set by the City Clerk for
the filing of primary arguments. In accordance with applicable law, not less than 10
calendar days before the City Clerk submits the official election materials for printing,
the City Clerk shall make a copy of all applicable elections materials available for public
examination in the City Clerk’s office.
SECTION 5. The City Council authorizes its members, as follows, to file written
arguments for or against the measure described above and which is contained in Exhibit
1 to this Resolution, which Exhibit is incorporated by reference herein:
FOR: _____________________________________________
AGAINST: _____________________________________________
All written arguments filed by any person in favor of or against the measure,
including any rebuttal arguments, shall be accompanied by the names and signatures of
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the persons submitting the argument as required by applicable law, and any names,
signatures and arguments may be filed until the time and date fixed by the City Clerk in
accordance with applicable law, after which no change may be submitted to the City
Clerk unless permitted by law.
SECTION 6. The City Clerk shall cause the text of the measure, which is
contained in Exhibit 1, together with the City Attorney impartial analysis, and any
arguments for or against the measure, as well as any rebuttals, to be mailed to all
qualified voters with the sample ballots. In addition to other notices and publications
required by law, the City Clerk, not less than forty (40) days and not more than sixty (60)
days before the General Municipal Election, shall cause the text of the measure to be
published once in the official newspaper and in each edition thereof during the day of
publication. The City Clerk is authorized to give such notices and to fix such times and
dates as are required by law or which are appropriate to conduct properly the election.
SECTION 7. The provisions of Resolution Numbers 11425 and 11426 are
referred to and incorporated into this resolution for more particulars concerning the
conduct of General Municipal Election to be held on November 8, 2022, and in all
respects the election shall be held and conducted as provided for by applicable law.
The City Clerk is authorized and directed to procure and furnish any official ballots,
notices, printed materials and all supplies or equipment that may be necessary in order
to properly and lawfully conduct the election.
SECTION 8. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
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APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
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Exhibit 1
Section 1806(a)(8)(iv) and (v) of Article XVIII of the City Charter shall be
amended to read as follows :
(iv) The landlord or enumerated relative must intend in good faith to move into the unit
within thirty (30) sixty (60) days after the tenant vacates and to occupy the unit as a
primary residence for at least one year three years.
(v) If the landlord or relative specified on the notice terminating tenancy fails to occupy
the unit within thirty (30) sixty (60) days after the tenant vacates or fails to occupy
the unit as a primary residence for at least three years, the landlord shall:
A. Offer the unit to the tenant who vacated it.
B. Pay to said tenant all reasonable expenses incurred in moving to and/or
from the unit.
Section 1803(e) of Article XVIII of the City Charter shall be amended to read as
follows:
Section 1803(e) TERM OF OFFICE: Commissioners shall serve a maximum of two
three full terms. These term limits shall not apply to appointed terms, only elected
terms.
Section 1803(d) of Article XVIII of the City Charter shall be amended to read as
follows:
Section 1803(d) ELECTION OF COMMISSIONERS: Commissioners shall be elected at
general municipal elections in the same manner as set forth in Article XIV of the Santa
Monica Charter, except that the first Commissioners shall be elected at a special
municipal election held within ninety (90) days of the adoption of this Article. The
elected Commissioners shall take office on the first Tuesday following their election. If,
upon the City Clerk’s determination of the qualified candidates, the number of
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candidates does not exceed the number of vacant positions, no election will be held and
the qualified candidates shall be seated upon swearing in by the City Clerk.
Section 1804(a) Temporary Freeze shall be added to the City Charter
(i) Rents shall not be increased during the one hundred-twenty (120) day
period following the date of adoption of this Article.
(ii) Notwithstanding Section 1805, the Board may, in its discretion and in
order to protect the public’s health and safety, disallow or, alternatively,
modify otherwise-allowed annual general adjustments to rent ceilings
during a state of emergency declared by the President of the United
States or the Governor, or upon the declaration of a local emergency by
the City Council or Director of Emergency Services, unless such individual
adjustment is necessary to obtain a fair and reasonable return per the
petition process in Section 1805.
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1
SANTA MONICA RENT CONTROL BOARD MEMORANDUM
TO: Santa Monica Rent Control Board
FROM: Rebecca Sherman, Acting General Counsel
MEETING: April 28, 2022
RE: Public hearing on proposed Charter amendments
_____________________________________________________________________
Subject Matter
The Board will hold a public hearing and consider whether to recommend to
the City Council that the City place on the November 2022 ballot certain
amendments to the City Charter and the Rent Control Charter Amendment
(RCCA).
The first public hearing on this item was held on April 14, 2022. The Board
continued the item to April 28, 2022, to allow for additional opportunity for public
input. Staff has conducted additional outreach through public notices in the local
newspaper, additional email blasts and social media engagement.
Executive Summary
In November 2022, Santa Monica will hold a general municipal election. For
such elections, the Rent Control Board may make recommendations that the City
Council place proposed amendments to the Santa Monica City Charter, including
the Rent Control Charter Amendment, on the general election ballot.
The Board will hold a public hearing on the feasibility of certain amendments
to the Charter: 1) that the City of Santa Monica adopt an amendment to the City
Charter requiring the registration of all non-rent-controlled rental units; 2) that
Section 1806(a)(8)(iv) of the RCCA be amended to require that an owner intend
to occupy the unit for at least three years instead of one year; 3) that Section
1803(e) of the RCCA be amended to allow Commissioners to be elected to a
maximum of three full terms to align with City elected officials; and 4) that Section
1803(d) of the RCCA be amended to state that an election need not be held if the
number of qualified candidates does not exceed the number of open board
positions.
The Board will consider whether to recommend an amendment to City Charter
Article XXIII, which governs the City’s housing policies. Currently, this section of
the City Charter does not include a requirement for owners to register rental units
not subject to the RCCA. Such a requirement, if recommended, should be
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incorporated into the City Charter and city processes since the RCCA already
governs rental units subject to the Rent Control Law and requires owners to
register those units with the Rent Control Agency.
The Board will also consider whether to recommend an amendment to the
RCCA to increase from one year to three years the amount of time that an owner
must intend to reside in their unit before being allowed to evict an existing tenant.
Finally, the Board will consider whether to recommend amendments to the
RCCA regarding elections to align with term limits of the City Charter and
improve election efficiency.
Discussion
a. Registration of rental units not subject to the Rent Control Law.
State restrictions on a local government’s ability to regulate rents across
tenancies or to update local ordinances to apply rent control to buildings built
after the adoption of the local law (April 1979 in Santa Monica) have substantially
hobbled local entities’ efforts to ameliorate the worsening affordable housing
crisis. Most new housing units are market rate units that are exempt from local
rent control laws and, therefore, do not improve local housing’s affordability. And
despite the claims of developers, simply increasing the supply of housing has not
resulted in lower market rents. In fact, just the opposite is true: rental rates
continue to increase even as the market-rate housing supply grows. Moreover,
as rent-controlled units continue to be withdrawn from the rental market through
the Ellis process and demolished and replaced with exempt units, the balance
continues to shift toward fewer controlled units.
These state laws have led to a two-tiered system in which some tenants enjoy
protections from large, unpredictable rent increases while others’ rents are
limited only by a one-size-fits-all state law with no local enforcement mechanism.
Requiring the registration of all rental units could assist the City in a greater
understanding of the scope of the affordable housing crisis in Santa Monica and
in determining more effective ways to mitigate its impact, an impact that is driving
housing instability, displacement, and greater numbers of the unhoused
population.
i. Existing law
All units subject to the RCCA must be registered with the agency. Owners
must provide information related to unit size, base rent, amenities and other
basic information. In addition, units must be re-registered following a vacancy
and re-rental. In this way, the agency obtains basic information about each
rental unit to allow it to administer and enforce the law more effectively. This
information also helps inform the agency about rental rates and trends as well as
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the loss/gain of controlled units and the effectiveness of measures to maintain
and increase the controlled rental housing stock.
Currently, unlike the RCCA, the City Charter does not require registration of
non-controlled units. Like the registration requirements for controlled units,
registration of uncontrolled units would assist city officials in monitoring and
mitigating the affordable housing crisis and ensure that the tenant protections in
the City Charter are followed. Moreover, with the state limits on rent increases
and eviction protections, tenants would be better informed as to their rights.
To accomplish this, Article XXIII of the Santa Monica City Charter could be
amended to require owners to register with the City non-controlled rental units.
Article XXIII governs the City’s housing policies, including tenant protections, in
non-controlled rental units.
ii. Other jurisdictions
Most jurisdictions with some form of rent control or tenant protections
require the registration of rental units. The table below illustrates the
requirements of some of these cities.
Jurisdiction Type of units Initial
registration? Re-registration?
West Hollywood Controlled units Yes Upon vacancy and re-rental
Los Angeles Controlled units Yes Annual
LA County Controlled units Yes Annual
Culver City All rental units Yes
Annual, upon new tenancy
and changes in housing
services
Berkeley Controlled and partially-
exempt units Yes Upon vacancy and re-rental;
annually for PE units
Beverly Hills Controlled units Yes Upon vacancy and re-rental
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iii. Other considerations
The requirement to register rental units and provide basic information such
as the rental rate, ownership details, occupancy dates and amenities is not a new
concept. In fact, most jurisdictions that provide any tenant protections either in
the form of rent limits or just-cause eviction protections require the registration of
rental units to gauge the effectiveness of the laws and to aid in enforcement.
These requirements have been in place for decades in some jurisdictions,
including Santa Monica. The RCCA has required the registration of rental units
since its enactment.
And courts have consistently upheld these requirements as squarely within
the bounds of a local entity’s police powers and as Constitutional regulations of
the provision of housing. As recently as 2020, the 9th Circuit Court of Appeals in
Hotop v. City of San Jose unanimously upheld San Jose’s ordinance requiring
initial and annual registrations of rental units against a challenge on
Constitutional grounds.1 Plaintiffs claimed that the rent registry violated the 4th,
5th and 14th amendments to the Constitution as well as the Contracts Clause. In
rejecting the 4th amendment claim, the Court noted that no information was being
disclosed that wasn’t already provided in other contexts under regulations that
hadn’t been challenged. The Court also found there was no per se taking and no
facts that would plausibly assert a regulatory taking under the 5th amendment.
Finally, the Court rejected the contracts clause allegation for failure to state a
claim and the 14th amendment claim for the failure to show that the ordinance’s
distinctions could not survive rational basis review.
Here, the factual and legal landscape is similar to that in the Hotop case.
The information sought is the same or similar as that which is already required
for controlled units. And as in San Jose, the proposal would require information
pertinent to the regulation of rental housing and the enforcement of existing laws.
Similarly, in 2019, the federal district court granted the City of Beverly Hills’
motion to dismiss against AAGLA, who had brought suit under 42 USC section
1983 for that city’s registration requirements.
In the cases cited above, the Courts uniformly rejected challenges to
registration requirements based on privacy concerns. San Francisco Apartment
Association v City and County of San Francisco, 881 F.3d 1169, 1178-1179 (9th
Cir. 2018) involved a challenge to a San Francisco ordinance requiring certain
disclosures regarding buyout offers. The Court noted that information already
publicly available is not protected by the right to privacy under the California
Constitution and because information that is routinely submitted to the
government, such as the landlord's name and contact information, the property
1 982 F.3d 710 (2020); see also San Francisco Apartment Association v. City and County of San Francisco, 881 F.3d
1169 (9th Cir. 2018).
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address, information about proposed expenditures where applicable, the current
rent for each unit, detailed rental history, and the like, is regularly made publicly
accessible, there is no reasonable expectation of privacy in such information.
Hoptop v. City of San Jose, discussed above, reached the same result when
considering a local rent registry ordinance. And AAGLA v. Beverly Hills, U.S.D.C.
Central District, Case No. CV 18-6840 PSG (Ex). addressed the same issue, with
the same result.
iii. Potential requirements for a rent registry for non-
controlled units in the City Charter, Article XXIII
Article XXIII of the Santa Monica City Charter provides, among other
things, eviction protections for tenants living in uncontrolled rental units. Section
2302(a) defines Nonrentcontrolled rental units as: “All residential rental units in
the City of Santa Monica except those units that are subject to rent control
pursuant to Article XVIII of this Charter or are single-family homes.” Section
2305, titled “Implementation”, describes the broad authority of the City Council to
“protect community health, safety and welfare by, among other things, adopting
ordinances, resolutions or regulations to implement and effectuate the provisions
of this Article, including, but not limited to, provisions relating to exemptions, just
cause, notices, comparability of units, and good faith. Additionally, the City
Council may create any administrative mechanisms it deems necessary for this
Article’s implementation.”
Requiring the registration of uncontrolled rental units that are subject to this
Article could arguably be accomplished through an ordinance or regulation since
it could reasonably be construed as a mechanism to ensure that landlords are
adhering to the just cause provisions. An annual registration requirement along
with a requirement to explain the reasons for changes in tenancy could greatly
enhance these tenant protections.
Alternatively, the City Council could propose an amendment to the City
Charter to require registration of these uncontrolled rental units. A new section
could be added to Article XXIII requiring that the units subject to this article must
be registered as set forth in the section and accompanying regulations. The City
could also require that rental units subject to Article XXIII be registered annually
to ensure rental rates and vacancy/tenant information is kept current. The City
could also require registrations to be updated upon a new tenancy or changes in
housing services as Culver City has done.
As part of the annual registration, the City could require owners to provide
some or all of the following information: 1) occupancy status and commencement
date of the current tenancy; 2) the amount of rent the current tenant is paying; 3)
the reason the prior tenant vacated the unit, if known; 4) the water/utility metering
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status of the unit; 5) the amenities provided with the tenancy; 6) any changes in
ownership information; and 7) any other information the City deems necessary.
To cover the reasonable expenses necessary to administer the rent registry
and provide counseling services, the City could establish an annual per unit fee
that would be charged to property owners.
A new section, 2304.5, could be added to read:
2304.5 Registration of nonrentcontrolled rental units
(a) Registration required. Upon issuance by the City of Santa Monica of a
valid written Rent Registration certificate, as set forth in this Section 2304.5, no
Landlord shall demand or accept Rent for a Nonrentcontrolled Rental Unit (NRU)
without first serving on the Tenant, or displaying in a conspicuous place, such
Rent Registration certificate.
(b) Registration Process.
(1) A Landlord shall provide Rent amount and Tenancy information for
every Rental unit on a Rent Registration form provided by the City. The Rent
Registration form shall be submitted on a date to be determined by the City and
on that date each year thereafter. Registration is complete only when all of the
following information is provided: ownership information; property information;
year built and certificate of occupancy date; number of bedrooms and bathrooms
for each NRU; the amount of Rent in effect at the time of registration; a
description of housing services; water/utility metering status of the unit; and the
property vacancy rate. If any NRU has been vacant for more than 30 days, the
Landlord shall provide the date of vacancy and an explanation for the vacancy.
(2) Every NRU Rent Registration certificate shall be updated annually, as
required by Section 2304.5(b)(1), upon a new tenancy, or when there are
changes in housing services.
(3) If an NRU is vacant for more than 30 days, the Landlord shall provide a
certification to the City of the duration of the vacancy, and that the NRU shall be
secured against unauthorized entry.
(4) For every property for which a Landlord is required to procure a Rent
Registration certificate pursuant to this section, the Landlord shall post a notice in
a form provided by the City, providing information about this Subchapter 2304.5
and City contact information. Notices must be posted in a conspicuous location in
the common area, at the entry or entries to the building or units, or other similar
location or locations as necessary to provide Tenants a reasonable opportunity to
view the notice. If there is no common area or similar location, this requirement
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may be satisfied by mailing the notice to each Tenant of the building, by certified
mail, return receipt requested. The notice shall be written in English and Spanish,
and in any other languages as required by the City.
(c) Notice of Rent information deficiencies and opportunity to cure; Appeals;
and Final Administrative Decision.
(1) The City shall provide written notification to the Landlord of a failure to
comply with this section and allow fifteen (15) calendar days to respond. The City
shall not issue a Rent Registration certificate for the NRU until the Landlord has
substantially complied by providing the rental information as required by this
section.
(2) Any Landlord disputing the City’s notification of deficient registration
may file a written appeal with the Director within ten (10) calendar days of the
date of the notice of deficiency. The Director shall provide a written notice within
thirty (30) calendar days of its appeal decision, which shall be a final
administrative decision.
(d) Registration fee.
(1) A fee for the registration of NRU’s may be established by resolution of
the City Council. Such fees are intended to recover the City’s reasonable costs
associated with the administration and enforcement of this section.
(2) A Landlord may pass through to the Tenant fifty percent (50%) of the
initial fee for the registration of the Tenant’s NRU (the pass-through fee) if such
Tenant continuously occupied the NRU during the period covered by the
completed registration. The City may establish applicable conditions and
procedures governing the pass-through. The pass-through fee is not considered
Rent and should appear as a separate line item on the Rent statement. A
Landlord may collect a maximum of one-twelfth (1/12) of the pass-through fee
per month.
b. Good faith requirements for owner-occupancy evictions
The RCCA prohibits evictions of tenants except as enumerated in the law.
Owners or qualified relatives who wish to move into their units and reside there
permanently may evict current tenants to do so, but only if they meet the
requirements set forth in the RCCA. One of those requirements is that the owner
or relative “intend in good faith to move into the unit within thirty (30) days after
the tenant vacates and to occupy the unit as a primary residence for at least one
year.”2
2 RCL Section 1806(a)(8)(iv).
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The Board will hear input from the public on the feasibility of requiring owners
or their qualified relatives to intend to occupy the unit for at least three years,
instead of one year, upon evicting an existing tenant. The purpose of placing
both a requirement to occupy the unit within a certain time frame and a good faith
intent to live there for a certain period is to ensure that the eviction is not used as
a pretext for the owner to rent the unit to a new tenant paying market rates.
i. Existing tools to prevent sham evictions and their
effectiveness.
Currently, if an owner or relative fails to move into the unit within 30 days, the
landlord is required to re-offer the unit to the displaced tenant and pay the tenant
any expenses incurred in the unlawful displacement.3 Moreover, owners cannot
set a new initial rent for the first tenancy following an owner-occupancy eviction;
the Maximum Allowable Rent (MAR) for this tenancy is the same MAR as the
previous tenancy.4 Other protections include a requirement that the owner offer
to the displaced tenant any unit that becomes vacant within a year of the tenant’s
displacement, including the unit from which the tenant was evicted.5 The Board
also has the ability to determine whether the first tenancy is a legitimate tenancy
or a sham, in which case the landlord cannot set the initial rent for a subsequent
tenant.6
The table below illustrates the rate of evictions for owner-occupancy in the 5
years preceding the current COVID-19-related eviction moratoria, the current
status of the units, and whether they have been re-rented. This information is
based upon copies of eviction notices filed with the agency, notices of ownership
changes and vacancy unit registrations.
Notices by year
from 2015 to
2019
Avg property
size Current status Rent still
restricted? New tenancy?
2019 - 5 4 units 1 sold to new
owner Yes 1 – May 2020
2018 - 7 5 units 1 Ellis, 1 sold to
new owner
6 restricted; 1
market
1 – 2020; 2021
(market rate)
2017 - 11 5 units 3 sold to new
owners
8 restricted; 3
market
5 new tenancies: 1-
2018, 4-2019
3 RCL Section 1806(a)(8)(v).
4 Regulation 3301(b)(1).
5 Regulations 9002(d)(4) and 9002(g).
6 Regulation 3301(k).
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2016 - 7 5 units 6 sold to new
owners
3 restricted; 4
market
6 new tenancies: 1-
2016; 3-2018; 1-
2019; 1-2021
2015 - 5 3 units 3 sold to new
owners Yes None
There are two instances of the re-rental of a formerly owner-occupied unit at
the year mark, but more typical is the re-rental around two years or later. There
does not seem to be a pattern as to the frequency of re-rental following an
owner-occupancy exemption. The units that were owner-occupied in 2016 have
mostly been re-rented while the units owner-occupied in 2015 all remain owner-
occupied.
It is important to note that the good faith requirement to intend to live in the
unit for a certain period of time serves as evidence of bad faith in an enforcement
proceeding if the owner or relative moves out before the requisite time period is
up. Such evidence is typically supported by other evidence to show that the
eviction was carried out in bad faith.
ii. Good faith requirements in other jurisdictions
The table below illustrates the requirements for other jurisdictions.
Jurisdiction Time to
occupy unit
Period of
residency
Evidence of
bad faith
Right to return if
vacated within
period?
West
Hollywood 90 days 12 consecutive
months
Rebuttable
presumption
Yes, if re-offered
for rent
Los Angeles 3 months 2 consecutive
years Yes Yes, if tenant
notified owner
LA County 60 days
3 years unless
extenuating
circumstances
Yes Yes
Culver City 3 months 36 months Yes No
Berkeley 3 months 36 consecutive
months Yes Yes
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iii. Potential impact of extending length of residency
requirement
The residency requirement is a statement of intent before owners can evict a
tenant using this section. So, if this change is made, an owner would have to
declare an intention to reside in the unit for at least three years. An owner who
vacates the unit within that time period would be presumed not to have acted in
good faith in evicting the tenant under this section.
Based on past practices, staff has found that the agency’s most effective tool
in deterring sham evictions has been the bar to setting a new initial rent for the
first tenancy following an owner-occupancy eviction as well as the tenant’s right
to re-rent the unit if the owner vacates it within a year. The requirement to re-
register the unit when it is re-rented allows the agency to enforce the limits on the
MAR as well as to determine whether the tenancy itself is legitimate.
To implement this change, RCCA Section 1806(a)(8)(iv) would be amended
to read:
(iv) The landlord or enumerated relative must intend in good faith to move into
the unit within thirty (30) days after the tenant vacates and to occupy the unit as a
primary residence for at least one year three years.
To strengthen this requirement, the Board could also require owners to re-
offer the unit to the displaced tenant if the owner vacates the unit within three
years. In addition, currently, owners must move into the unit within 30 days after
a tenant vacates. If the owner fails to take possession within 30 days, the owner
must re-offer the unit to the displaced tenant. Many owners who genuinely
intend to occupy the unit as their primary residence find it difficult to make the
transition that quickly. And most jurisdictions allow at least 60 days for owners to
move into the unit after the tenant vacates.
To implement these changes, Section 1806(a)(8)(v) could be amended as
follows:
(v) If the landlord or relative specified on the notice terminating tenancy fails to
occupy the unit within thirty (30) sixty (60) days after the tenant vacates or fails to
occupy the unit as a primary residence for at least three years, the landlord shall:
A. Offer the unit to the tenant who vacated it.
B. Pay to said tenant all reasonable expenses incurred in moving to and/or
from the unit.
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c. Election administration
Term limits
RCCA Section 1803(e), Term of Office, states “Commissioners shall serve
a maximum of two full terms.” The Santa Monica City Charter also sets term
limits for its councilmembers. Article VI, Section 600 allows councilmembers to
serve up to three terms. For both agencies, terms are four years. The City
Charter also states that term limits apply to appointed terms as well as elected
terms. The RCCA does not specify whether appointed terms count toward the
term limits.
In order to align with the City Charter and to have greater efficiency and
cost reductions in the administration of elections, the Board proposes that the
RCCA be amended as follows:
Section 1803(e) TERM OF OFFICE: Commissioners shall serve a
maximum of two three full terms. These term limits shall not apply to appointed
terms, only elected terms.
Election efficiency
Currently, the RCCA requires that an election be held even if there are
only as many candidates as open Board positions. The Board could propose an
amendment to the RCCA that an election is not necessary when the number of
qualified candidates does not exceed the open positions. To accomplish this,
Section 1803(d) could be amended as follows:
Section 1803(d) ELECTION OF COMMISSIONERS: If, upon the City
Clerk’s determination of the qualified candidates, the number of candidates does
not exceed the number of vacant positions, no election will be held and the
qualified candidates shall be seated upon swearing in by the City Clerk. The
elected Commissioners shall take office on the first Tuesday following the
general municipal election.
Conclusion
Following the public hearing and after consideration of public input, the Board
can determine whether to recommend these changes to the City Council. To
ensure the City Council has adequate time to consider any recommended
changes, they should be forwarded to the City Council no later than mid-May.
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SANTA MONICA RENT CONTROL BOARD MEMORANDUM
TO: Santa Monica Rent Control Board
FROM: Alison Regan, General Counsel
MEETING: June 9, 2022
RE: Public hearing on proposed Charter amendment to give the Board discretion to suspend rent increases during a declared emergency _____________________________________________________________________
Subject Matter
The Board will hold a public hearing and consider whether to recommend to the City Council that the City place on the November 2022 ballot an amendment
to the Rent Control Charter Amendment (RCCA) giving the Board discretion to
suspend the annual general adjustment during certain declared emergencies.
Executive Summary
In November 2022, Santa Monica will hold a general municipal election. For
such elections, the Rent Control Board may make recommendations that the City
Council place proposed amendments to the Santa Monica City Charter, including
the RCCA, on the general election ballot.
The Board will hold a public hearing on the feasibility of an amendment to the RCCA to provide the Rent Control Board the authority to suspend the annual general adjustment in order to protect the public’s health and safety during a declared state of emergency.
Discussion
a.The Board does not currently have the authority to alter or suspendthe General Adjustment in an emergency.
It is well-settled that the Rent Control Board derives its authority solely from the language of the Charter. Administrative bodies, such as the Board, do not have general police powers and cannot act in a way that contravenes the instrument from which they were created.1
1 Ocean Park Associates v. Santa Monica Rent Control Bd. (2004) 114 Cal.App.4th 1050, 1064, quoting from Kerr’s Catering Service v. Department of Industrial Relations (1962) 57 Cal.2d 319, 329-330. In Ocean Park, the Court struck down the Board’s practice, not provided for by
Item 11D 11.B.e
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The Board, unlike the Governor, a city, or a county, has not been granted emergency powers. The Board is not the governing body of the City of Santa Monica, and for that reason has no emergency powers under the Emergency Services Act. Nor does any other state law grant emergency powers to a
municipal administrative agency; so the Board’s emergency powers, if any exist,
must be found in the statute that created it, the City Charter. But nothing in the
City Charter, from which the Board solely derives its authority, grants it such
powers. To the contrary, the Board’s powers are circumscribed by the Charter,
which lists only 15 things that the Board may or must do.2 One of those things is
“to make adjustments in the rent ceiling in accordance with [Charter] section
1805”, under which the adjustment is made according to a mandatory formula.
Section 1805 sets out the formula by which the Board must “announce” the
annual adjustment to rent ceilings to controlled units. Nothing in that section
allows the Board to alter that formula or suspend otherwise-allowed rent
increases.
b. Proposed Charter amendment would give the Board authority to suspend rent increases in an emergency.
The global pandemic due to COVID-19 has caused unprecedented hardships, disruptions and long-term impacts that continue to affect Santa Monica’s residents. 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. 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. Meanwhile, COVID-19 cases
are increasing even as mitigation measures, such as masking and social
distancing, are no longer required.
Other rent stabilization jurisdictions have been able to adjust to these
conditions by implementing temporary freezes on rent increases for controlled
units.3 Because these jurisdictions are not Charter cities, they have the flexibility
to enact measures through ordinance changes passed by the governing body.
the Charter, of allowing the Administrator to file rent decrease petitions on behalf of all tenants
in a building when an individual petition revealed the presence of a common-area issue.
2 SMMC § 1803(f). See, also, Westsiders Opposed to Overdevelopment v. City of Los Angeles (2018) 27 Cal.App.5th 1079, 1086 (“A charter city may not act in conflict with its charter, and any act that is … not in compliance with the charter is void [citation]. A city charter operates
as a limitation over all the municipal affairs which the City is assumed to possess; it is not a
grant of power.”)
3 See, e.g. City of Los Angeles and City of West Hollywood
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Packet Pg. 332 Attachment: RC-ExE-060922 RC staff report (5228 : Rent Control Ballot Measures)
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By contrast, changes to Santa Monica’s Charter can only be accomplished by a vote of the citizens of Santa Monica.
The proposed amendment would give the Board the discretion to respond to future public health emergencies by suspending otherwise-allowed annual
general adjustments if such a suspension is necessary to protect the public’s
health and safety. The proposed amendment is not a blank check; this authority
could only be utilized during a declared state of emergency. The Board would
also be required to make findings that the public’s health and safety is at risk and
that implementing a rent increase freeze, or modifying the otherwise-allowed
increase, would mitigate the risks of displacement and the attendant public health
harms. Moreover, an owner would still be able to petition for a rent increase if
the inability to impose the general adjustment would prevent the owner from
obtaining a fair and reasonable return.
This amendment would provide the Board with the authority, which the Charter does not currently provide, to address a future public health crisis and its financial impacts.
Conclusion
Following the public hearing and after consideration of public input, the Board can determine whether to recommend this change to the City Council. To ensure the City Council has adequate time to consider any recommended changes, they
should be forwarded to the City Council no later than mid-June. Proposed
language for the amendment is attached to this staff report as Exhibit A.
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Packet Pg. 333 Attachment: RC-ExE-060922 RC staff report (5228 : Rent Control Ballot Measures)
Exhibit A
Proposed language for Board authority to deny rent increases during states of emergency:
Section 1804(a) Temporary Freeze
(i)Rents shall not be increased during the one hundred-twenty (120) day
period following the date of adoption of this Article.
(ii)Notwithstanding Section 1805, the Board may, in its discretion and in
order to protect the public’s health and safety, disallow or,
alternatively, modify otherwise-allowed annual general adjustments torent ceilings during a state of emergency declared by the President ofthe United States or the Governor, or upon the declaration of a localemergency by the City Council or Director of Emergency Services,unless such individual adjustment is necessary to obtain a fair andreasonable return per the petition process in Section 1805.
Exhibit A 11.B.e
Packet Pg. 334 Attachment: RC-ExE-060922 RC staff report (5228 : Rent Control Ballot Measures)