SR 08-23-2022 10G
City Council
Report
City Council Meeting: August 23, 2022
Agenda Item: 10.G
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To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration
Subject: Introduction and Adoption of an Emergency Ordinance to Add Santa Monica
Municipal Code Section 4.27.080 to the Santa Monica Municipal Code
Recommended Action
Staff recommends that the City Council consider adoption of an emergency ordinance
adding Santa Monica Municipal Code Section 4.27.080 to provide temporary eviction
protection for residential tenants in rent-controlled units who, effective September 1,
2022, face an increase in the maximum allowable rent (MARs) up to six (6) percent; are
not able to pay the increased rent due to financial hardship; and are at risk of being
evicted for nonpayment of rent.
Council may want to consider adopting this Ordinance first as an emergency ordinance
under Sections 615 and 619 of the City Charter, and separately adopting this identical
Ordinance as a regular ordinance, subject to the usual procedure of two readings.
Summary
For rent controlled units, the City Charter currently allows annual upwards adjustments
to rent ceilings according to a formula based on a percentage of the change in the
annual Consumer Price Index (CPI), not to exceed 6% or fall below zero. The annual
general adjustment (AGA) is announced by the Santa Monica Rent Control Board
(Board) in June of each year and is based on the change in CPI from March to
February. In June 2022, faced with unprecedented inflation due to a global pandemic
and other extraneous forces, the 6% cap was reached for the first time.
Recognizing that tenants hardest hit during the COVID-19 pandemic with
unemployment and other hardships are now struggling to make ends meet and remain
ill-equipped to afford a 6% rent increase, the Board recommended, and the Council
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adopted, several ballot measures including one tailored to blunt the impact of the 2022
AGA.
This Ordinance (Attachment A) would enable the meaningful implementation of the
measures placed on the November 8, 2022, ballot which would amend Article XVIII of
the City Charter (Rent Control Charter Amendment or RCCA) to lower the current 6%
cap on annual rent ceiling adjustments to 3%, and adjust the 2022 AGA of 6% effective
September 1, 2022, down to 0.8% for the period of February 1 through August 31,
2023, so that the overall AGA for the 12-month period of September 1, 2022, to August
31, 2023, averages 3%.
The Ordinance may help to prevent evictions and allow protected tenants to stay
housed when unable to pay the increased rents until the voter-approved rent maximum
rent decrease down to 0.8% becomes effective and provides time for the 2022 MAR to
adjust so that the 2022 AGA averages 3%, consistent with the voters’ will. The
Ordinance is also necessary to preserve housing stability and help prevent rent-
burdened tenants from becoming displaced and unhoused.
This report is made in context of the passage of the proposed measures on the
November 8, 2022, ballot amending the City Charter as discussed and as set forth in
the Resolution for Proposed Ballot Measures (Attachment B).
Discussion
Background: Santa Monica Tenants are Struggling to Pay Increasing Rents and
Risk Being Displaced for Nonpayment of Rent
Many Santa Monica tenants are at risk, as they face unprecedented rent increases and
heightened threat of eviction due to financial hardship. As discussed in greater detail in
the Staff Report regarding the Adoption of Resolution for Proposed Ballot Measures on
the November 8, 2022, Election Amending Article XVIII of the City Charter (Attachment
C), many tenants in Los Angeles County and the City of Santa Monica are grappling
with the devastatingly inflationary impacts caused by global supply chain disruptions
and the COVID-19 pandemic.
As recently reported in Los Angeles Times, based on rent increases across the country
between 2021 and 2022, Santa Monica is one of the most expensive places for renters
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in the United States; according to a report by the listing portal Rent, Santa Monica is
now ranked the fifth most expensive city for renters in the United States. Los Angeles
Times, California rents are spiking – and in places you might not expect. ‘I was in shock’
(August 15, 2022). According to the report “[r]ent in Santa Monica (No. 5), costs an
average of $4,357, an increase of 15.07 percent over last year.” Rent., Alicia Underlee
Nelson, Cities With the Highest Rent in the U.S. (July 22, 2022).
Significantly,
• 14,460 renter households in the City are cost burdened (meaning they pay over
30% of their income for rent), representing 31.6% of renter households
• There are 10,225 households in Santa Monica experiencing severe housing cost
burden (meaning they pay over 30% of their income for rent), of which 2,930 of
these households are families
See Attachment C.
Facing a 6% increase in rent starting September 2022, Santa Monica tenants are
struggling and at risk. The Board recommended, and the Council on August 3, 2022,
approved, ballot measures to blunt the impact of the extraordinary rent increases facing
tenants in controlled units effective September 1, 2022. The ballot measures respond to
the need for immediate action to address the compounding negative impacts of the
scheduled rent increases and the looming threat of evictions faced by low-income and
rent-burdened tenant households in the City. See Attachment B.
How the Ordinance Works
The Ordinance narrowly targets eviction protection for nonpayment of rent, as it only
applies to tenants in controlled rental units facing a rent increase of more than 3%
above the MAR in place prior to September 1, 2022; who are unable to pay rent for the
“protected period” of September 1, 2022, through January 31, 2023; and where
nonpayment of rent is due to financial distress. The protected tenants are required to
provide notice and documentation to their landlord within 30 days after the rent is due. A
tenant’s self-certification of inability to pay due to financial distress is sufficient to meet
the notice and documentation requirement.
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Once the tenant provides notice, a landlord may not evict for nonpayment of rent for that
protected period, until September 1, 2023. If the tenant pays the deferred rent accrued
during the protected period by September 1, 2023, the tenant is permanently protected
from eviction for nonpayment for rent accrued during the protected period. If the tenant
is not able to pay the unpaid (deferred) rent accrued during the protected period by
September 1, 2023, the landlord may then proceed with eviction. The protection
provided will constitute an affirmative defense for any tenant in an unlawful detainer
action brought by the landlord.
This Ordinance would then allow the protected tenant up to 12 months to pay the
increased rent (which accrued during the five-month protected period, September 1,
2022, through January 31, 2023), and not risk eviction until September 1, 2023.
Significantly, the protection does not excuse or take away a landlord’s ability to evict, it
merely extends the period in which the tenant can pay the increased unpaid rent that
accrued during the protected period.
The Ordinance is Necessary as an Emergency Measure To Preserve the Health
and Safety, and Housing Stability for the City’s Vulnerable Tenant Households
Critically the emergency Ordinance would allow tenants who face the initial increase up
to 6% from September 1, 2022, to January 31, 2023, eviction protection while the
annual MAR adjusts, starting on February 1, 2023, when the adjustment cap will be
reduced to 0.8% of the MAR in effect as of August 31, 2022, and remain at 0.8% until
August 31, 2023. The tenant household can stay housed in place until the ballot
measures kick in and effectuate the rent reduction relief the voters directed. The
Ordinance is necessary to preserve the health and safety, and housing stability for the
City’s most vulnerable, rent-burdened households, and fills the gap between the
September 2022 - 6% rent increase, and the February 1, 2023 - 0.8 % ballot measure
rent decrease relief.
Current Eviction Protection
Los Angeles County COVID-19 tenant eviction protections remain in place for qualifying
low-income households through December 31, 2022. The County of Los Angeles
extended its eviction moratorium on January 25, 2022. This moratorium applies to
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tenants residing in incorporated cities within the County of Los Angeles, including the
City of Santa Monica. Effective June 1, 2022, through December 31, 2022, a residential
tenant whose household income is at 80 percent Area Median Income (AMI) or below
and who is unable to pay rent incurred from June 1, 2022, through December 31, 2022,
is protected from eviction under the County Moratorium, so long as the reason for the
nonpayment was financial impacts related to COVID-19, and the residential tenant has
provided notice to the landlord to this effect and self-certified their income level and
financial hardship within specified time frames (see
https://dcba.lacounty.gov/noevictions/ for more information on the County’s eviction
moratorium as well as self-certification forms).
The protection provided by this Ordinance differs from that offered by the County
Moratorium, as follows: this Ordinance would apply only to the City’s tenants in rent-
controlled units who have their rents increased more than 3%; the protection covers
unpaid rents accrued for the five-month period of September 1, 2022 to January 31,
2023; the financial distress that renders the tenant unable to pay rent need not be
COVID-19 related; and tenant has until September 1, 2023 to pay the unpaid accrued
rent.
In addition to adopting this Ordinance as an emergency ordinance, Council may
concurrently adopt the first reading of this Ordinance as a regular ordinance, with
second reading to occur at the next regularly scheduled council meeting. The
emergency Ordinance would take effect immediately. The regular Ordinance would
take effect 30 days from second reading.
Potential Local Funding to Provide Financial Assistance for Low Income Tenants
In addition to the ballot measures in the resolution (Attachment B), the City is actively
exploring funding avenues to provide rental and other financial assistance for low-
income tenants.
Fiscal Impact.
None.
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Prepared By: Douglas Sloan, City Attorney
Approved
Forwarded to Council
Attachments:
A. EORD-ord-Eviction Moratorium
B. B-August 3 Resolution
C. C-August 3 Staff Report
D. Written Comment
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City Council Meeting August 23, 2022 Santa Monica, California
ORDINANCE NUMBER ____ (CCS)
(City Council Series)
AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA ADDING SECTION 4.27.080 TO THE SANTA MONICA MUNICIPAL CODE
TO PROMOTE THE PUBLIC SAFETY AND WELFARE BY TEMPORARILY
PROHIBITING CERTAIN EVICTIONS DUE TO TENANTS’ FINANCIAL HARDSHIP
WHEREAS, the global pandemic due to COVID-19 has caused unprecedented
hardships, disruptions, and long-term impacts that continue to negatively affect Santa
Monica residents; and
WHEREAS, while there has been some relief in the form of an eviction moratorium,
rental assistance, and other efforts to prevent displacement, those programs are winding
down while the pandemic’s impacts continue to be felt; and
WHEREAS, inflation rates continue to spike, and rising costs are hampering
residents’ ability to recover from the loss of income and unexpected expenses that many
experienced during the pandemic’s first two years; and
WHEREAS, COVID-19 cases are increasing even as mitigation measures, such as
masking and social distancing, are no longer required; and
WHEREAS, 14,460 renter households in the City are cost burdened, representing
31.6% of renter households, as further discussed in the City’s most recent draft of the
Housing Element relating to fair housing; and
WHEREAS, there are 10,225 households in Santa Monica experiencing severe
housing cost burden, of which 2,930 of these households are families; and
WHEREAS, approximately 11.7% of Black and 8.6% of Hispanic/Latino family
households in the City were cost burdened even before the COVID-19 pandemic; and
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WHEREAS, on or about November 6, 2012, Section 1805 of the City Charter was
amended to allow for an Annual General Adjustment to the maximum rent ceiling using a
formula based upon the CPI, with a maximum increase of 6%; and
WHEREAS, applying that formula and maximum increase, the Rent Control Board
has approved an Annual General Adjustment of 6% to take effect starting September 1,
2022; and
WHEREAS, the Costa-Hawkins Rental Housing Act (Civil Code sections 1954.50
to 1954.535), allows owners to charge fair market rents upon vacancy of certain rental
housing units in accordance with Civil Code section 1954.52 (also known as “vacancy
decontrol”); and
WHEREAS, due to vacancy decontrol allowed by the Costa-Hawkins Rental
Housing Act, several other jurisdictions in the state have lowered their annual general
adjustment caps to address the imbalance caused by allowing a higher cap on the annual
general adjustment in addition to vacancy decontrol; and
WHEREAS, reducing the rent cap from 6% to 3% would strike the correct balance
in times of higher inflation given that property owners continue to have the benefit of setting
the initial rents at any amount upon a vacancy and, thus, can account for any maintenance
cost increases; and
WHEREAS, other rent stabilization jurisdictions have been able to adjust to these
conditions by freezing, lowering, or implementing caps on rent increases for controlled
units, including Oakland (3% cap) and City of West Hollywood (freeze), among others; and
WHEREAS, on August 3, 2022, the City Council approved a resolution to submit to
the voters a measure to amend Article XVIII of the City Charter providing that commencing
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on February 1, 2023, the rent control general adjustment during the period from February
1, 2023, through August 31, 2023, shall be 0.8% of the maximum allowable rent in effect
as of August 31, 2022, with a maximum dollar amount limit of nineteen dollars, with the
effect that the average annual general adjustment for the period from September 1, 2022,
through August 31, 2023, shall be no more than 3%, and providing thereafter the maximum
permitted annual increases shall be at the reduced 3% cap; and
WHEREAS, if that measure is approved by voters in the November 8, 2022,
election, it will not go into effect until January 1, 2023; and
WHEREAS, any tenant who cannot pay the 6% rent increase and who is evicted
for nonpayment will not be protected by the reduction in the maximum permissible rent
increase to be considered by the voters in the November 2022 election and, if passed, to
go into effect on February 1, 2023; and
WHEREAS, Santa Monica is one of the most expensive rental markets in the
country and one of the most challenging in which to find affordable apartment homes and
tenants who would be evicted for inability to pay the 6% rent increase would struggle to or
be unable find alternative housing in Santa Monica or in the Los Angeles area, causing
major disruption in their lives and their children’s education and in the worst cases leading
to long-term housing insecurity and homelessness; and
WHEREAS, vacancy decontrol means that eviction of rent controlled tenants who
cannot pay the 6% increase between September 1, 2022, and January 31, 2023, would
result in controlled units being rented out at substantially higher rents, thereby reducing
the overall stock of affordable housing during a time of acute need; and
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WHEREAS, this ordinance is presented for adoption as an emergency ordinance,
to be introduced, adopted, and immediately effective upon its passage by at least five
affirmative votes, pursuant to City Charter Section 615, because of the imminent
extraordinary rent control rent increase of 6% to take effect on September 1, 2022, amidst
ongoing public health, housing affordability, homelessness, and cost of living crises, giving
rise to long-term and irreversible consequences for displaced tenants and the City, as set
forth above; and
WHEREAS, the City Council hereby finds that: the addition to the Santa Monica
Municipal Code implemented by this emergency ordinance is immediately necessary as
an emergency measure in order to preserve the public health, safety, and welfare by
protecting vulnerable tenants subject to an extraordinary rent increase while preserving
property owners’ rights, including to pursue eviction of covered tenants and collection of
covered rent after September 1, 2023.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 4.27.060, is hereby added to
Santa Monica Municipal Code Chapter 4.27, TENANT PROTECTION, to read as follows:
4.27.60 Temporary eviction moratorium for rent controlled tenants subject to
extraordinary rent increase.
(a) The following terms as used in this Section have the following meanings:
(1) “Protected Period” means September 1, 2022, through January 31,
2023.
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(2) “Protected Period Rent” means rent that became due between
September 1, 2022, and January 31, 2023.
(3) “Financial Distress” means lacking sufficient funds to pay the rent
while foregoing or without foregoing adequate food, shelter, healthcare,
childcare, necessary transportation, or other life necessities for oneself or
one’s dependents.
(4) “Rent Controlled Residential Tenant” means a tenant in a Controlled
Rental Unit as that term is defined in section 1801(c) of the Charter of the
City of Santa Monica.
(5) “Maximum Allowable Rent” means the maximum permissible rent as
determined by the Rent Control Board pursuant to section 1804 of the
Charter of the City of Santa Monica.
(b) From September 1, 2022, until September 1, 2023, no landlord who has
increased a rent controlled residential tenant’s rent by more than three percent above the
maximum allowable rent in place prior to September 1, 2022, shall evict a rent controlled
residential tenant whose rent was so increased for nonpayment of protected period rent if
nonpayment was due to the tenant’s financial distress. As set forth in section (e) below, a
tenant who has repaid unpaid rent prior to September 1, 2023, is permanently protected
from eviction.
(c) If a rent controlled residential tenant whose rent was increased as described
in section (b) is unable to pay protected period rent due to financial distress, the tenant
shall provide notice and documentation to the landlord within 30 days after rent is due. A
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tenant’s self-certification of inability to pay due to financial distress is sufficient to meet this
notice and documentation requirement.
(d) The protections provided in this section shall constitute an affirmative
defense for a tenant in any unlawful detainer action brought pursuant to California Code
of Civil Procedure section 1161, as amended, and any other civil action seeking repayment
of rental debt. To qualify for the affirmative defense, a tenant must provide notice and
documentation of inability to pay due to financial distress. A tenant may provide notice and
documentation, including self-certification, at any time prior to judgment against the tenant.
A tenant who does not provide notice and documentation within 30 days after rent is due
but does provide notice and documentation prior to judgment against them in an unlawful
detainer matter, is eligible for the affirmative defense. Notice and documentation shall
create a rebuttable presumption that nonpayment was due to the tenant’s financial
distress.
(e) A rent controlled residential tenant protected from eviction by this section
shall have until September 1, 2023, to repay protected period rent that was not paid due
to financial distress. A tenant may repay covered protected period rent in any number of
payments or in a lump sum at any time before September 1, 2023. A tenant who so repays
covered protected period rent shall be permanently protected from eviction for
nonpayment of that rent.
SECTION 2. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this ordinance.
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SECTION 3. If any section, subsection, sentence, clause, or phrase of this
ordinance is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this ordinance. The City Council hereby declares that it would have passed
this ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of
this ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. Pursuant to Sections 615 and 619 of the City
Charter, for the reasons stated in the recitals above, the City Council declares this
ordinance to be necessary as an emergency measure for preserving the public peace,
health, and safety, with the result that this ordinance shall be introduced and adopted at
the same meeting, shall become effective immediately upon its adoption.
APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney
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City Council Meeting: August 3, 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, AND LOWER THE
CAP ON THE ANNUAL GENERAL ADJUSTMENT 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 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 Santa Monica Rent Control Board (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 a longer period, 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 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 Board has recommended the City
Charter be amended to modify Article XVIII, Section 1806(a)(8)(iv) and (v), to require an
owner intend to occupy a unit for at least three years, and occupy the unit within sixty
days of vacancy; and
WHEREAS, after consideration of the Board’s recommendation, the City Council
desires the City Charter be amended to require an owner intend to occupy a unit for at
least two years, unless extenuating circumstances exist; and require the owner to occupy
the unit within sixty days of vacancy; and
WHEREAS, on or about November 6, 2012, Section 1805 of the City Charter was
amended to allow for an Annual General Adjustment to the maximum rent ceiling, based
upon the CPI, with a maximum increase of 6%; and
WHEREAS, the Costa-Hawkins Rental Housing Act (Civil Code sections 1954.50
to 1954.535), allows owners to charge fair market rents upon vacancy of certain rental
housing units in accordance with Civil Code section 1954.52 (also known as “vacancy
decontrol”); and
WHEREAS, due to vacancy decontrol allowed by the Costa-Hawkins Rental
Housing Act, several other jurisdictions in the state have lowered their annual general
adjustment caps to address the imbalance caused by allowing a higher cap on the annual
general adjustment in addition to vacancy decontrol; and
WHEREAS, the global pandemic due to COVID-19 has caused unprecedented
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hardships, disruptions, and long-term impacts that continue to negatively affect Santa
Monica’s residents; and
WHEREAS, reducing the rent cap from 6% to 3% would strike the correct balance
in times of higher inflation given that property owners continue to have the benefit of
setting the initial rents at any amount upon a vacancy and, thus, can account for any
maintenance cost increases; and
WHEREAS, while there has been some relief in the form of an eviction moratorium,
rental assistance, and other efforts to prevent displacement, those programs are winding
down while the pandemic’s impacts continue to be felt; and
WHEREAS, inflation rates continue to spike and rising costs are hampering
residents’ ability to recover from the loss of income and unexpected expenses that many
experienced during the pandemic’s first two years; and
WHEREAS, COVID-19 cases are increasing even as mitigation measures, such
as masking and social distancing, are no longer required; and
WHEREAS, 14,460 renter households in the City are cost burdened, representing
31.6% of renter households, as further discussed in the City’s most recent draft of the
Housing Element relating to fair housing; and
WHEREAS, there are 10,225 households in Santa Monica experiencing severe
housing cost burden, of which 2,930 of these households are families; and
WHEREAS, approximately 11.7% of Black and 8.6% of Hispanic/Latino family
households in the City were cost burdened even before the COVID-19 pandemic; and
WHEREAS, other rent stabilization jurisdictions have been able to adjust to these
conditions by freezing, lowering, or implementing caps on rent increases for controlled
units, including Oakland (3% cap) and City of West Hollywood (freeze), among others;
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and
WHEREAS, following the economic hardships of COVID and the unanticipated
highest inflation rates in recent history, to strike a balance between tenant relief and
landlords obtaining a fair rate of return, Section 1805(a) could be amended as follows:
(a) Annual General Adjustment. No later than June 30 each year, the
Board shall announce the percentage by which rent ceilings for eligible units
will be generally adjusted effective September 1 of that year.
(1) The adjustment shall be equal to seventy-five (75) percent of
the percentage increase in the Consumer Price Index (All Urban
Consumers, Los Angeles, Riverside, Orange County region, or any
successor designation of that index that may later be adopted by the
U.S. Bureau of Labor Statistics) as reported and published by the
U.S. Department of Labor, Bureau of Labor Statistics, for the twelve
(12) month period ending as of March of the current year.
(2) In determining the allowable percentage increase, numbers of
.04 and below shall be rounded down to the nearest tenth decimal
place and numbers of .05 and above shall be rounded up to the
nearest tenth decimal place.
(3) Subparagraph 1 of this subsection notwithstanding, in no
event shall the general adjustment be less than zero percent or
greater than six (6) three (3) percent; and
(4) Commencing on March 1, 2023, the general adjustment
during the period from March 1, 2023, through August 31, 2023, shall
be zero percent (0%) of the maximum allowable rent (MAR) in effect
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as of August 31, 2022, with a maximum dollar amount limit of zero
dollars ($0) (“Adjusted GA”). Absent an individual adjustment
pursuant to subparagraphs (c) through (h) of this Section, the MAR
during this six month transition period shall be the MAR in effect as
of August 31, 2022, plus the Adjusted GA. Notwithstanding the
Board’s June 2022 announcement of the 2022 general adjustment,
the MAR for any period after August 31, 2023, shall be calculated
pursuant to this Section 1805 as if the General Adjustment for the
entire period from September 1, 2022 through August 31, 2023, had
been three (3) percent, with a maximum dollar amount limit of
seventy dollars ($70).
(5) If any section, subsection, subdivision, paragraph, sentence,
clause or phrase of this Section is for any reason held to be invalid,
unlawful, or unconstitutional, such decision shall not affect the
validity of the remaining portions of this Section or any portion
thereof.
WHEREAS, an owner in Santa Monica would still be able to petition for a rent
increase if rents were adjusted to a 3% increase from rents in effect as of August 31,
2022, which would enable the owner to obtain a fair and reasonable return. Charter
Section 1805(c) provides a due process safety net for landlords who believe they are not
making a fair return, despite other Sections of the Charter that limit rent increases:
1805(c). Petitions. Upon receipt of a petition by a landlord and/or a
tenant, the maximum rent of individual controlled rental units may be
adjusted upward or downward in accordance with the procedures set
forth elsewhere in this Section. The petition shall be on the form
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Packet Pg. 1226 Attachment: B-August 3 Resolution (5319 : Emergency Ordinance - Eviction Protection)
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provided by the Board and shall include a declaration by the landlord
that the unit meets all requirements of Section 1805(h).
Notwithstanding any other provision of this Section, the Board or
hearing examiner may refuse to hold a hearing and/or grant a rent
adjustment if an individual hearing has been held and decision made
with regard to maximum rent within the previous six (6) months.
and
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 andidates
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 City Council has considered and approved the Board’s
recommendation because these amendments are in the public interest as they would
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strengthen tenant protections from unnecessary displacements and would streamline
elections to improve governmental functions; and
WHEREAS, pursuant to California Elections Code Section 10403, the City Council
has previously requested 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 require owner occupancy of a rent-
controlled unit for two years before tenant eviction,
absent extenuating circumstances; require owner
occupancy within 60 days of vacancy; reduce the
maximum Annual General Adjustment from 6% to
0% from March 1, 2023, through August 31, 2023,
and a 3% maximum Annual General Adjustment
thereafter; and require an election only if the number
of qualified candidates exceeds the number of open
Board positions?
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 additional costs may be
incurred by the County by reason of the addition of this measure to the ballot and agrees
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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
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
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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.
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 two years, unless extenuating
circumstances exist.
(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 two years, unless extenuating
circumstances exist, 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 1805(a) of Article XVIII of the City Charter shall be amended as follows:
(a) Annual General Adjustment. No later than June 30 each year, the Board shall
announce the percentage by which rent ceilings for eligible units will be generally
adjusted effective September 1 of that year.
(1) The adjustment shall be equal to seventy-five (75) percent of the
percentage increase in the Consumer Price Index (All Urban Consumers,
Los Angeles, Riverside, Orange County region, or any successor
designation of that index that may later be adopted by the U.S. Bureau of
Labor Statistics) as reported and published by the U.S. Department of
Labor, Bureau of Labor Statistics, for the twelve (12) month period ending
as of March of the current year.
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(2) In determining the allowable percentage increase, numbers of .04
and below shall be rounded down to the nearest tenth decimal place and
numbers of .05 and above shall be rounded up to the nearest tenth decimal
place.
(3) Subparagraph 1 of this subsection notwithstanding, in no event shall
the general adjustment be less than zero percent or greater than six (6)
three (3) percent; and
(4) Commencing on March 1, 2023, the general adjustment during the
period from March 1, 2023 through August 31, 2023, shall be zero percent
(0%) of the maximum allowable rent (MAR) in effect as of August 31, 2022,
with a maximum dollar amount limit of zero dollars ($0) (“Adjusted GA”).
Absent an individual adjustment, the MAR during this six month transition
period shall be the MAR in effect as of August 31, 2022, plus the adjusted
GA. Notwithstanding the Board’s June 2022 announcement of the 2022
general adjustment, the MAR for any period after August 31, 2023, shall be
calculated pursuant to this Section 1805 as if the General Adjustment for
the entire period from September 1, 2022, through August 31, 2023, had
been three (3) percent, with a maximum dollar amount limit of seventy
dollars ($70).
(5) If any section, subsection, subdivision, paragraph, sentence, clause
or phrase of this Section is for any reason held to be invalid, unlawful, or
unconstitutional, such decision shall not affect the validity of the remaining
portions of this Section or any portion thereof.
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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
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.
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City Council
Report
City Council Meeting: August 3, 2022
Agenda Item: 11.A
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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 of the City Charter
Recommended Actions
1. Per Rent Control Board direction, adopt the attached resolution (Attachment A)
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; and reduce the Annual General
Adjustment, while maintaining the landlord’s ability to petition for an individual
rent adjustment; and
2. Per Council direction, adopt the attached resolution (Attachment B) placing a
measure on the November 8, 2022, ballot that would amend Article XVIII of the
City Charter to authorize the Rent Control Board to freeze or modify otherwise-
allowed annual general adjustments to rent ceilings during a declared state of
emergency by the President of the United States, the Governor, the County of
Los Angeles or upon a declaration of a local emergency by the City Council or
Director of Emergency Services, while maintaining the landlord’s ability to petition
for an individual rent adjustment; and
3. Authorize City Councilmembers to file written arguments for or against and direct
the City Attorney to prepare an impartial analysis for each measure.
Executive Summary
At its April 28, 2022 meeting, the Santa Monica Rent Control Board (the “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:
1) Add new Section 2304.5 to Article XXIII of the City Charter to require
the registration of all Nonrentcontrolled Rental Units;
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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.
At its July 12, 2022, meeting (Attachment C), the City Council considered the Board
recommendations and provided the following direction to City staff:
1) Instead of adding new Section 2304.5 to Article XXIII of the City Charter to
require the registration of all Nonrentcontrolled Rental Units, prepare an
ordinance at a later date for Council consideration, to require such
registration given that Article XXIII already gives the City Council flexibility
to implement its housing policies by ordinance, and more time is needed
to receive community and staff input before adoption of such a program;
2) Revise the proposed ballot language to require an owner to intend to
occupy a unit for two years, unless extenuating circumstances exist;
3) Retain existing Charter language regarding term limits of Rent Board
Commissioners;
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4) Add new ballot measure language that would lower the cap on the annual
general adjustment from 6% to 3% and reduce the 2022 general
adjustment from 6% to 3% effective January 1, 2023; and
5) Revise the proposed ballot language to allow the City Council to suspend
or reduce rent adjustments during a federal, state, or local declared state
of emergency.
At its July 26, 2022, meeting (Attachment D), Council discussed alternative proposals
to the 6% to 3% proposal discussed in the July 12, 2022, staff report, but ultimately
deferred making a decision for another week, giving the Rent Control Board time to
review the alternative proposals.
The Rent Control Board met on July 28, 2022, and voted to adopt a net 3% reduction in
the general adjustment, as further discussed in the Rent Control Board staff report
(Attachment E).
Discussion
As further discussed, below, due to unprecedented inflationary impacts caused by
global supply chain disruptions and COVID-19 hardships, many households face an
ever-increasing threat of eviction due to the inability to pay rent.
2020 Fair Housing Assessment
In accordance with state Housing Element law, the City researched and drafted a fair
housing assessment, which is included in the City’s latest draft Housing Element. The
fair housing assessment indicates that 14,460 renter households in the City are cost
burdened (meaning they pay over 30% of their income for rent), representing 31.6% of
renter households. There are 10,225 households in Santa Monica experiencing severe
housing cost burden (meaning they pay over 30% of their income for rent), of which
2,930 of these households are families.
Approximately 11.7% of Black and 8.6% of Hispanic/Latino family households in the
City were cost burdened even before the COVID-19 pandemic.
Rent Control Board 2021 Annual Report
As of April 5, 2022, the online dashboard at Housingiskey.com shows that 3,037 Santa
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Monica tenants and landlords filed complete applications for the California COVID-19
Rent Relief Program by the March 31st deadline. Almost 2,000 households (1,878)
have received assistance, averaging $15,220 per household. To date, more than 28.5
million dollars has been distributed to local tenants and landlords to cover unpaid rent
and utilities. But many applications across the state remain unprocessed. Swift
legislative action extended eviction protections for COVID impacted tenants, however,
these protections ended on June 30th.
Legal Aid Foundation Data
The Legal Aid Foundation for Los Angeles (LAFLA) has been retained by the City to
provide comprehensive eviction prevention services, including a Right to Counsel
Program funded through the City Attorney’s Office. LAFLA has provided extensive
written comments on the continuing effect of the COVID-19 pandemic, which constitutes
further evidence of the need for immediate action to address the compounding negative
impacts of the 6% rent increases authorized to go into effect on September 1, 2022, and
the looming threat of evictions faced by LAFLA’s clients. These comments are in
Attachment E.
Reducing the current cap on the Annual General Adjustment
To mitigate the looming threat of evictions caused by the 6% increase in the maximum
allowable rent (MARs), effective September 1, 2022, Council has focused intently on
ways to modify the annual general adjustment authorized by the City Charter, as further
discussed, below.
On or about November 6, 2012, Section 1805 of the City Charter was amended to allow
for an Annual General Adjustment to the rent ceiling based upon the percentage
increase in the CPI, with a maximum increase of 6%. The Costa-Hawkins Rental
Housing Act (Civil Code sections 1954.50 to 1954.535), allows owners to charge fair
market rents upon vacancy of controlled rental housing units in accordance with Civil
Code section 1954.52 (also known as “vacancy decontrol”). Due to vacancy decontrol
allowed by the Costa-Hawkins Rental Housing Act and the unprecedented spike in
inflation due to the global pandemic’s interruption of supply chains and fluctuations in
demand, the current 6% cap creates an imbalance in the dual goals of maintaining
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affordable rents while providing owners with a fair return.
The global pandemic due to COVID-19 has caused unprecedented hardships,
disruptions, and long-term impacts that continue to negatively affect Santa Monica’s
residents. Reducing the rent cap from 6% to 3% would strike the correct balance in
times of higher inflation given that property owners continue to have the benefit of
setting the initial rents at any amount upon a vacancy and, thus, can account for any
maintenance cost increases. Moreover, an owner would still be able to petition for an
individual adjustment if the reduced adjustments would prevent the owner from
obtaining a fair and reasonable return.
While there has been some relief in the form of rental assistance, and other efforts to
prevent displacement, those programs are winding down while the pandemic’s impacts
continue to be felt. The County of Los Angeles extended its eviction moratorium on
January 25, 2022. This moratorium applies to tenants residing in incorporated cities
within the County of Los Angeles. Effective June 1, 2022 through December 31, 2022,
a residential tenant whose household income is at 80 percent Area Median Income or
below and who is unable to pay rent incurred from June 1, 2022, through December 31,
2022 is protected from eviction under the County Moratorium, so long as the reason for
the nonpayment was financial impacts related to COVID-19, and the residential tenant
has provided notice to the landlord to this effect and self-certified their income level and
financial hardship within certain timeframes (see https://dcba.lacounty.gov/noevictions/
for more information on the County’s eviction moratorium as well as self-certification
forms).
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. 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
freezing, lowering, or implementing caps on rent increases for controlled units, including
Oakland (3% cap), City of Los Angeles (freeze), City of Beverly Hills (3.1% cap for
eligible units, freeze for others), Los Angeles County unincorporated areas (freeze) and
City of West Hollywood (freeze), among others.
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The existing Annual General Adjustment formula in City Charter Section 1805 also
provides for a dollar-amount ceiling, which is based upon the average of the 85th
percentile of maximum allowable rent for all rent-controlled units and the 85th percentile
of the maximum allowable rent for all rent-controlled units with a base-rent established
before January 1, 1999 multiplied by the 6% annual general adjustment (effective
September 1, 2022). According to the Rent Control agency, this dollar cap is $140.00
per month. Similar to the 6% cap, a $140.00 per month increase imposes severe
hardship on tenants.
Two alternative proposals to address the general adjustment were discussed at the
Council meeting on July 26, 2022 and at the Rent Control Board meeting on July 28,
2022. One proposal consists of a modified reduction to the general adjustment formula
in Charter Section 1805 to reduce the 6% adjustment in effect on September 1, 2022 to
a net 3% average increase for the period from September 1, 2022 – August 31, 2023.
The other proposal would temporarily reduce the 6% adjustment by decreasing rents for
rent-controlled units with rents that are less than the median of the MARs for 2021 for 0-
,1-, 2-, and 3-bedroom units, respectively.
Staff now seeks direction on which proposal to place on the ballot and will combine
whichever proposal is approved with ballot language previously approved by the City
Council to require that an owner intend to occupy a unit for two years unless
extenuating circumstances exist and revise certain election procedures.
RCB authority to suspend or modify GA during emergencies
At its July 12 meeting, the City Council considered the Rent Control Board’s proposal to
amend the Charter to give the Board the authority to suspend or modify the otherwise-
allowed Annual General Adjustment during declared states of emergency in order to
protect tenants’ health and safety. The Council, instead, directed staff to bring back
proposed language to give the City Council that authority instead of the Rent Control
Board. This is problematic, however, insofar as the Board would still be responsible for
regulating rent controlled units and overseeing or processing the petition process for
rent adjustments based upon fair return. Therefore, staff is recommending that the
Board be allowed to suspend or modify Annual Rent Adjustments upon a declaration of
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a local emergency by the County of Los Angeles, the City Council or the Director of
Emergency Services.
To effectuate this change, staff is recommending that the Council reconsider its
direction and approve language that would amend Article XVIII to give the Board that
authority as proposed. Staff’s recommendation is based on two factors: 1) the
structure of the Charter and its delegation of authority; and 2) competing state law which
would preclude suspension of rent increases by the City Council outside the rent control
framework in Article XVIII of the City Charter.
State law governs rent increase limits for units not covered by Rent Control. As a result,
the City Council cannot amend the Charter to limit rent increases for non-controlled
residential rental units because that would conflict with state law. Given that only rent-
controlled units would be impacted by this change, any amendment must be to Article
XVIII, which is under the purview of the Rent Control Board. The Board governs the
Rent Control Law and is responsible for its administration, including petitions for
hearings for rent adjustments.
The Board’s authority, however, would be limited under this proposal in that it can only
be exercised after the City Council or other governing body has declared a local, state
or federal emergency and only if necessary to protect the public’s health and safety.
And, as always, property owners can avail themselves of the rent increase petition
process if a suspension or modification of the annual adjustment precludes them from
receiving a fair and reasonable return.
Ideally, the County’s eviction moratorium should work in concert with the voters’
approval of the Annual General Adjustment formula and the City’s financial support to
rent-burdened tenants to fill the gap for the period during which the 6% increase
remains in effect. As explained, above, based upon the existing Annual General
Adjustment formula in the City Charter, the 6% Annual General Adjustment (or $140.00
per month cap), will become effective on September 1, 2022, and will likely result in
more rent-burdened Santa Monica households, on top of an existing affordability crisis
worsened by COVID. In less than two years, Santa Monicans have received
approximately $38M in COVID rent relief. Despite this assistance, the pandemic, rising
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consumer prices, low wages, and rising rents place households at risk of
homelessness. Alternatively, Council could direct staff to come back with a local
eviction moratorium ordinance as an emergency ordinance before September 1, 2022.
Direct Financial Assistance
In June, the City’s Community Services Department (CSD) and Rent Control agency
released a Housing Needs Survey which was available online and on paper at City Hall,
Parks, Libraries, and key service providers, included in the Rent Control summer mailer,
promoted on City social media channels, and available through 311. The survey, which
gathered data about current needs and the expected impacts of the Rent Control
General Adjustment, closed in mid-July. Data analysis is underway.
CSD staff will provide an update to Council later this summer on the means and
methods to provide Santa Monicans facing severe rent burdens due to the pandemic,
household income, rising rents, disability, age, and/or other criteria with local
homelessness prevention assistance this fall, first tapping budgeted $750,000 ARPA
dollars. Staff will draw on the City’s experience with the early-pandemic Emergency
Rental Assistance Program, which was able to operate quickly and efficiently, due to a
simple program design and a sole-source partnership with a local non-profit. In the fall,
CSD staff will present the HOME ARP Allocation Plan for the expenditure of an
additional $2.2M of federal one-time funds. In the meantime, the City has executed an
agreement with LAFLA to implement the expanded eviction prevention services
approved by Council on May 11th. County COVID-19 tenant protections remain in place
for households at 80% of AMI through December 31, 2022.
Options
Council may consider options to what was considered at the prior meeting.
Option 1: Limiting the time that the Annual General Adjustment is capped at 3% and
request the City Council and Rent Control Board convene prior to the November 2024
election to discuss permanent equitable solutions to General Adjustment provisions in
the Charter. Under this option, the proposed revisions to the Annual General
Adjustment would remain in effect until August 31, 2025. This could be accommodated
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by adding a new provision in Section 1805(a), as follows:
(6) The amendments set forth in Charter Section 1805(a), Subsections
(3) and (4) above, if approved by the voters at the November 2022
election, shall sunset and shall no longer be in effect following August 31,
2025, and at such time these specified Subsections shall revert to the
provisions in effect as of November 2022 prior to the election. Between
January 1, 2024, and May 1, 2024, the Rent Control Board and the City
Council shall hold hearings and consider additional ballot measures to
address permanent equitable solutions to the General Adjustment
provisions.
Option 2: Adjust the timing when the Annual General Adjustment cap is reduced from
March 1, 2023 to February 1, 2023. As discussed earlier in this staff report, the City is
committed to deploying resources to assist renters impacted by the 6% increase in rents
that will go into effect on September 1, 2022. Extending the implementation date to
March 1, 2023 as discussed at the July 26, 2022 City Council meeting will require
additional resources to assist renters. Given that the City is still assessing the amount
of assistance that will be needed, adjusting the implementation timeline to February 1,
2023 will have the effect of reducing the time in which renters will be impacted by the
6% rent increase and will either allow the City to deploy its limited resources to help
more households or provide more resources to households. If City Council were to
adjust the timeline to February 1, 2023, the following would be the proposed change to
Section 1805 (a):
(4) Commencing on February 1, 2023, the general adjustment during
the period from February 1, 2023, through August 31, 2023, shall be 0.8%
of the maximum allowable rent (MAR) in effect as of August 31, 2022, with
a maximum dollar amount limit of nineteen dollars ($19) (“Adjusted GA”).
Absent an individual adjustment pursuant to subparagraphs (c) through (h)
of this Section, the MAR during this seven month transition period shall be
the MAR in effect as of August 31, 2022, plus the Adjusted GA.
Notwithstanding the Board’s June 2022 announcement of the 2022
general adjustment, the MAR for any period after August 31, 2023, shall
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be calculated pursuant to this Section 1805 as if the General Adjustment
for the entire period from September 1, 2022 through August 31, 2023,
had been three (3) percent, with a maximum dollar amount limit of seventy
dollars ($70).
Option 3: Council may request the Rent Control Board to look at ways to reduce the
tenants’ share of registration fees, at least temporarily while the impact of rent increases
are being felt.
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
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.
Attachments
Attachment A – Resolution 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; and reduce the
General Annual General Adjustment.
Attachment B - Resolution placing a measure on the November 8, 2022, ballot that
would amend Article XVIII of the City Charter to authorize the Rent Control Board to
suspend or modify otherwise-allowed annual general adjustments to rent ceilings
during a declared state of emergency by the President of the United States, the
Governor, the County of Los Angeles, or upon a declaration of a local emergency
by the City Council or Director of Emergency Services. Nothing in this section
precludes a landlord from filing a petition for an upward rent adjustment per Section
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1805 of the City Charter.
Attachment C – July 12, 2022 City Council staff report
Attachment D – July 26, 2022 City Council staff report
Attachment E – July 28, 2022 Rent Control Board staff report
Prepared By: Susan Cola, Assistant City Attorney
Approved
Forwarded to Council
Attachments:
A. RC-ExA-Resolution for Change to GA
B. RC-ExB-Resolution for emergency authority
C. RC-ExC-CC July 12, 2022 Staff Report
D. RC-ExD-CC July 26, 2022 Staff Report
E. RC-ExE-RC July 28, 2022 Staff Report
F. Written Comments
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Item 10.G 08/23/22
1 of 29 Item 10.G 08/23/22
10.G.d
Packet Pg. 1245 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
1
Vernice Hankins
From:mary.augustine2@aol.com
Sent:Monday, August 22, 2022 1:54 PM
To:councilmtgitems
Subject:August 23 Agenda Item 10G - Comment
EXTERNAL
The 6% rent increase is authorized by the terms of City Charter. The Council cannot circumvent rights and benefits
conferred by a Charter provision by passing an ordinance. Landlords have bills to pay on a current basis. The proposed
ordinance would excuse all rent based on a minimal incremental increase of the amount between 3% and 6%. It allows
renters who are not financially challenged to defer rent. The Constitution guarantees landlords to a fair return on their
property. Compelling landlords to house tenants without any return or a current fair return violates state and federal
constitutional rights to fair compensation when government takes their property or denies them the right to exclude
people from their property. Consider how such an ordinance would affect you if applied to your sales revenues or
salary. If the City wants to help tenants in financial distress, do so with City tax dollars, not by usurping the property
and Charter rights of property owners who invested their capital to buy private property in the City.
This kind of activity that is proposed is a further disincentive to people from investing their capital in residential housing
which further aggravates the housing crisis. I am tired of your Soviet approach ‐ I have tenants in arrears and am happy
to work with them ‐ pass this unlawful and unwise ordinance and I will be evicting them and exiting the rental business.
If you really think this is lawful, why don’t you simply pass an ordinance that all tenants can live in their apartments
forever rent free. You do not have the authority to deny landlords rights under the Charter or state and federal
constitutions.
‐Mary
Sent from the all new AOL app for iOS
Item 10.G 08/23/22
2 of 29 Item 10.G 08/23/22
10.G.d
Packet Pg. 1246 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
1
Vernice Hankins
From:Council Mailbox
Sent:Monday, August 22, 2022 2:24 PM
To:councilmtgitems
Subject:Fw: August 23 Agenda Item 10G - Comment
From: mary.augustine2@aol.com <mary.augustine2@aol.com>
Sent: Monday, August 22, 2022 2:00 PM
To: Gleam Davis <Gleam.Davis@santamonica.gov>; Phil Brock <Phil.Brock@santamonica.gov>; Christine Parra
<Christine.Parra@santamonica.gov>; Lana Negrete <Lana.Negrete@santamonica.gov>; Sue Himmelrich
<Sue.Himmelrich@santamonica.gov>; Kristin McCowan <Kristin.McCowan@santamonica.gov>; Oscar de la Torre
<Oscar.delaTorre@santamonica.gov>; Council Mailbox <Council.Mailbox@santamonica.gov>
Subject: Fw: August 23 Agenda Item 10G ‐ Comment
EXTERNAL
The 6% rent increase is authorized by the terms of City Charter. The Council cannot circumvent rights
and benefits conferred by a Charter provision by passing an ordinance. Landlords have bills to pay on a
current basis. The proposed ordinance would excuse all rent based on a minimal incremental increase of
the amount between 3% and 6%. It allows renters who are not financially challenged to defer rent. The
Constitution guarantees landlords to a fair return on their property. Compelling landlords to house
tenants without any return or a current fair return violates state and federal constitutional rights to fair
compensation when government takes their property or denies them the right to exclude people from
their property. Consider how such an ordinance would affect you if applied to your sales revenues or
salary. If the City wants to help tenants in financial distress, do so with City tax dollars, not by usurping
the property and Charter rights of property owners who invested their capital to buy private property in
the City.
This kind of activity that is proposed is a further disincentive to people from investing their capital in
residential housing which further aggravates the housing crisis. I am tired of your Soviet approach ‐ I
have tenants in arrears and am happy to work with them ‐ pass this unlawful and unwise ordinance and
I will be evicting them and exiting the rental business. If you really think this is lawful, why don’t you
simply pass an ordinance that all tenants can live in their apartments forever rent free. You do not have
the authority to deny landlords rights under the Charter or state and federal constitutions.
‐Mary
Sent from the all new AOL app for iOS
Item 10.G 08/23/22
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10.G.d
Packet Pg. 1247 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
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Packet Pg. 1261 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
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Packet Pg. 1262 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
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Packet Pg. 1265 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
1
Vernice Hankins
From:mary.augustine2@aol.com
Sent:Monday, August 22, 2022 3:02 PM
To:councilmtgitems
Subject:Fw: August 23 Agenda Item 10G - Comment
EXTERNAL
Sent from the all new AOL app for iOS
Begin forwarded message:
On Monday, August 22, 2022, 3:00 PM, mary.augustine2@aol.com <mary.augustine2@aol.com> wrote:
I note the proposed ordinance states:
WHEREAS, reducing the rent cap from 6% to 3% would strike the correct balance in times of higher
inflation given that property owners continue to have the benefit of setting the initial rents at any
amount upon a vacancy and, thus, can account for any maintenance cost increases;
This is utter nonsense. My tenants have resided in their units for decades. Most are behind in their rent
and I can deal with that without the city’s intervention. But inflation is greater than 3% and landlords
have to deal with that in terms of their building’s and personal expenses. And the law is clear that a fair
return requires that inflation be taken into account on a current basis. You are providing an incentive to
landlords to evict their tenants in order to keep up with inflation by exercising their Costa Hawkins
rights. You are providing an incentive to landlords to file rent increase petitions to keep up with inflation
which will also seek to capture the administrative costs of pursuing the petition. You cannot eliminate a
landlord’s constitutional right to a fair return that keeps up with inflation by passing an ordinance or
amending the charter.
I and other landlords sick of your abuse of housing providers. You control the prices, and impose
numerous obligations. Pass this ordinance and the tenants will pay the price by more landlords
exercising their eviction and Ellis rights. If you want to protect tenants, do it with your tax dollars, not
other peoples’ private property. Perhaps the City should require the Mayor to house the homeless in
her spare bedrooms or in an ADU she will build on her property at her expense. If you don’t want to
house the homeless yourselves, don’t force landlords to do it without being paid a fair return on a
current basis.
‐Mary.
Sent from the all new AOL app for iOS
On Monday, August 22, 2022, 2:00 PM, mary.augustine2@aol.com <mary.augustine2@aol.com>
wrote:
Item 10.G 08/23/22
22 of 29 Item 10.G 08/23/22
10.G.d
Packet Pg. 1266 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
2
The 6% rent increase is authorized by the terms of City Charter. The
Council cannot circumvent rights and benefits conferred by a Charter
provision by passing an ordinance. Landlords have bills to pay on a
current basis. The proposed ordinance would excuse all rent based on a
minimal incremental increase of the amount between 3% and 6%. It
allows renters who are not financially challenged to defer rent. The
Constitution guarantees landlords to a fair return on their property.
Compelling landlords to house tenants without any return or a current
fair return violates state and federal constitutional rights to fair
compensation when government takes their property or denies them
the right to exclude people from their property. Consider how such an
ordinance would affect you if applied to your sales revenues or salary. If
the City wants to help tenants in financial distress, do so with City tax
dollars, not by usurping the property and Charter rights of property
owners who invested their capital to buy private property in the City.
This kind of activity that is proposed is a further disincentive to people
from investing their capital in residential housing which further
aggravates the housing crisis. I am tired of your Soviet approach ‐ I have
tenants in arrears and am happy to work with them ‐ pass this unlawful
and unwise ordinance and I will be evicting them and exiting the rental
business. If you really think this is lawful, why don’t you simply pass an
ordinance that all tenants can live in their apartments forever rent free.
You do not have the authority to deny landlords rights under the
Charter or state and federal constitutions.
‐Mary
Sent from the all new AOL app for iOS
Item 10.G 08/23/22
23 of 29 Item 10.G 08/23/22
10.G.d
Packet Pg. 1267 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
1
Vernice Hankins
From:Council Mailbox
Sent:Tuesday, August 23, 2022 8:48 AM
To:councilmtgitems
Subject:Fw: August 23 Agenda Item 10G - Comment
From: mary.augustine2@aol.com <mary.augustine2@aol.com>
Sent: Monday, August 22, 2022 3:00 PM
To: Gleam Davis <Gleam.Davis@santamonica.gov>; Phil Brock <Phil.Brock@santamonica.gov>; Christine Parra
<Christine.Parra@santamonica.gov>; Lana Negrete <Lana.Negrete@santamonica.gov>; Sue Himmelrich
<Sue.Himmelrich@santamonica.gov>; Kristin McCowan <Kristin.McCowan@santamonica.gov>; Oscar de la Torre
<Oscar.delaTorre@santamonica.gov>; Council Mailbox <Council.Mailbox@santamonica.gov>
Subject: Re: August 23 Agenda Item 10G ‐ Comment
EXTERNAL
I note the proposed ordinance states:
WHEREAS, reducing the rent cap from 6% to 3% would strike the correct balance in times of higher inflation given that
property owners continue to have the benefit of setting the initial rents at any amount upon a vacancy and, thus, can
account for any maintenance cost increases;
This is utter nonsense. My tenants have resided in their units for decades. Most are behind in their rent and I can deal
with that without the city’s intervention. But inflation is greater than 3% and landlords have to deal with that in terms of
their building’s and personal expenses. And the law is clear that a fair return requires that inflation be taken into
account on a current basis. You are providing an incentive to landlords to evict their tenants in order to keep up with
inflation by exercising their Costa Hawkins rights. You are providing an incentive to landlords to file rent increase
petitions to keep up with inflation which will also seek to capture the administrative costs of pursuing the petition. You
cannot eliminate a landlord’s constitutional right to a fair return that keeps up with inflation by passing an ordinance or
amending the charter.
I and other landlords sick of your abuse of housing providers. You control the prices, and impose numerous obligations.
Pass this ordinance and the tenants will pay the price by more landlords exercising their eviction and Ellis rights. If you
want to protect tenants, do it with your tax dollars, not other peoples’ private property. Perhaps the City should require
the Mayor to house the homeless in her spare bedrooms or in an ADU she will build on her property at her expense. If
you don’t want to house the homeless yourselves, don’t force landlords to do it without being paid a fair return on a
current basis.
‐Mary.
Sent from the all new AOL app for iOS
On Monday, August 22, 2022, 2:00 PM, mary.augustine2@aol.com <mary.augustine2@aol.com> wrote:
Item 10.G 08/23/22
24 of 29 Item 10.G 08/23/22
10.G.d
Packet Pg. 1268 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
2
The 6% rent increase is authorized by the terms of City Charter. The Council cannot
circumvent rights and benefits conferred by a Charter provision by passing an
ordinance. Landlords have bills to pay on a current basis. The proposed ordinance would
excuse all rent based on a minimal incremental increase of the amount between 3% and
6%. It allows renters who are not financially challenged to defer rent. The Constitution
guarantees landlords to a fair return on their property. Compelling landlords to house
tenants without any return or a current fair return violates state and federal
constitutional rights to fair compensation when government takes their property or
denies them the right to exclude people from their property. Consider how such an
ordinance would affect you if applied to your sales revenues or salary. If the City wants
to help tenants in financial distress, do so with City tax dollars, not by usurping the
property and Charter rights of property owners who invested their capital to buy private
property in the City.
This kind of activity that is proposed is a further disincentive to people from investing
their capital in residential housing which further aggravates the housing crisis. I am tired
of your Soviet approach ‐ I have tenants in arrears and am happy to work with them ‐
pass this unlawful and unwise ordinance and I will be evicting them and exiting the
rental business. If you really think this is lawful, why don’t you simply pass an ordinance
that all tenants can live in their apartments forever rent free. You do not have the
authority to deny landlords rights under the Charter or state and federal constitutions.
‐Mary
Sent from the all new AOL app for iOS
Item 10.G 08/23/22
25 of 29 Item 10.G 08/23/22
10.G.d
Packet Pg. 1269 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
1
Vernice Hankins
From:Marie Iding <marieiding@gmail.com>
Sent:Tuesday, August 23, 2022 9:32 AM
To:councilmtgitems
Subject:Please do not support continuing nonpayment of rent
EXTERNAL
Dear City Council,
For those of us age 65 and older with 4 rental units or fewer, depending upon this income in retirement, nonpayment
of rent is an unsustainable hardship. a solution that would please all parties would be for the City of Santa Monica to
cover all rent that tenants currently owe, similar to the way the state did during COVID.
Please consider this,
Thank you,
Marie Iding
Item 10.G 08/23/22
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Packet Pg. 1270 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
APARTMENT ASSOCIATION OF GREATER LOS ANGELES
AAGLA
“Great Apartments Start Here!”
621 S. WESTMORELAND AVE., LOS ANGELES, CA 90005 | 213.384.4131 | AAGLA.ORG
Danielle Leidner-Peretz
Director, Government Affairs &
External Relations
danielle@aagla.org
213.384.4131; Ext. 309
August 23, 2022
Via Electronic Mail
Hon. Mayor Sue Himmelrich and
Members of the Santa Monica City Council
City Hall – Council Chambers
685 Main Street, Room 250
Santa Monica, California 90401
Re: Introduction and Adoption of an Emergency Ordinance to Add Santa Monica Municipal
Code Section 4.27.080 to the Santa Monica Municipal Code (Agenda Item 10G)
Dear Hon. Mayor Himmelrich and Members of the Santa Monica City Council:
At today’s Santa Monica City Council meeting, the Council will consider adoption of an
urgency ordinance prohibiting evictions due to non-payment of rent where a renter receives a rent
increase that is more than 3% above the maximum allowable rent (MAR) in effect prior to September
1, 2022 and the renter self-certifies that due to financial distress they are unable to pay the rent.
The Apartment Association of Greater Los Angeles (Association) is strongly opposed to the
proposed ordinance and strongly urges the City Council to reject its adoption.
Our Association is extremely concerned with the manner in which this item is being brought
forth, as it was added to the meeting agenda sometime on Friday, August 19th which allows for only
limited opportunity for stakeholder review and engagement. Important and necessary components
of the legislative process are government transparency and stakeholder engagement which serve
to inform the Council on the key issues involved and facilitates the adoption of balanced solutions
for the betterment of all City residents. Moreover, this proposal is being advanced following the
Council’s approval of a ballot measure, subject to voter approval, that would amend the 2022
general adjustment and permanently limit future annual allowable rent increases to 3% or $70 per
month, whichever is less. This ballot measure was advanced because the City Council does not
have the authority to bypass the City Charter relative to this matter. Yet, the Council is now
seeking to circumvent the City Charter by imposing additional restrictions on rental housing
providers’ ability to collect the full 2022 general adjustment, to which they are legally entitled
based upon the existing City Charter rent control formula.
The 2022 general adjustment, in effect as of September 1, 2022, allows for a rent increase
Item 10.G 08/23/22
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10.G.d
Packet Pg. 1271 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
APARTMENT ASSOCIATION OF GREATER LOS ANGELES
AAGLA
“Great Apartments Start Here!”
621 S. WESTMORELAND AVE., LOS ANGELES, CA 90005 | 213.384.4131 | AAGLA.ORG
of 6% or $140, whichever is less. The proposed ordinance impedes a rental housing provider’s
ability to collect the full legally permissible rent increase by allowing any renter in a rent stabilized
unit, regardless of household income and with no requirement for the submission of supporting
documentation to simply assert that they are unable to pay rent due to financial distress.
Additionally, the proposed ordinance’s definition of financial distress bears no correlation to the
COVID-19 pandemic and is broadly defined as “lacking sufficient funds to pay the rent while
foregoing or without foregoing adequate food, shelter, healthcare, childcare, necessary
transportation, or other life necessities for oneself or one’s dependents”. The City’s current local
emergency is founded up the COVID-19 pandemic, what is the City’s legal authority to adopt what
is essentially another “eviction moratorium” category outside the scope of the current local
emergency? Low-income Santa Monica renters who are financially impacted due to the COVID-19
pandemic are already covered by the Los Angeles County eviction moratorium in effect through the
end of 2022.
Equally significant, renters are only required to provide notice and “self-certify” that they are
experiencing financial distress as defined in the ordinance, regardless of the renter’s household
income and the financial dynamics that may have precipitated the current circumstances.
Throughout the pandemic, our members have generally worked with their renters who have been
financially impacted by COVID-19, but have also witnessed circumstances where renters, who have
not been impacted by the pandemic, have taken advantage of the situation, and simply not paid rent
due despite having the financial ability to do so. Renters should be required to provide supporting
documentation. Moreover, how can the City Council disregard a renter’s household income in
assessing financial distress? Most significant, the U.S. Supreme Court has found self-certification
to be improper and unconstitutional.
The Association has repeatedly raised the severe financial challenges of the City’s housing
providers and related impacts that will ultimately affect the very renters that the City seeks to protect.
Rental housing providers are reeling from the financial impacts caused by the COVID-19 pandemic,
related government mandates and challenging rent collections over the last several years, and with
many small business “mom and pop” property owners already on the verge of selling or losing their
property. This adverse financial situation has only been compounded by runaway inflationary
pressures effecting the whole economy with the current inflation rate which is now at 9% or more.
The exit of these small business, “mom and pop” housing providers that furnish the bulk of the City’s
affordable housing units, would be an enormous loss to the City and a potentially devastating
reduction in much needed affordable housing.
During highly inflationary periods, such as we are currently experiencing, where cost of all
goods and services are rapidly escalating, it is critical that the rent increases provide independent
“mom and pop” rental housing providers with the ability to properly maintain their buildings. Extreme
action, as the one being proposed by the City Council will most certainly drive out small business
rental housing providers, drastically reducing the already scarce affordable housing, and
exacerbating the City’s housing problems. Instead of seeking solutions that alleviate financial
hardships of one group at the expense of another, the City Council should assist vulnerable
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Packet Pg. 1272 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)
APARTMENT ASSOCIATION OF GREATER LOS ANGELES
AAGLA
“Great Apartments Start Here!”
621 S. WESTMORELAND AVE., LOS ANGELES, CA 90005 | 213.384.4131 | AAGLA.ORG
residents through City funded rental assistance programs and not by further infringing on
responsible Santa Monica rental housing providers ability to collect permissible rent increases.
To reiterate, the proposed ordinance serves to bypass the City Charter and the 2022 General
Adjustment, calculated utilizing the City Charter’s rent control formula, exceeds the City Council’s
authority by imposing restrictions on owner’s ability to collect legally permissible rent with no
correlation to the COVID-19 local emergency and allows renters to self-certify their inability to pay
rent which is contrary to U.S Supreme Court ruling. We strongly urge the City Council to reject
adoption of the proposed ordinance and provide Santa Monica renters in need with city-funded
assistance.
Thank you for your time and consideration of these matters. If you have any questions, please
call me at (213) 384-4131; Ext. 309 or contact me via electronic mail at danielle@aagla.org.
Very truly yours,
Danielle Leidner-Peretz
Danielle Leidner-Peretz
Item 10.G 08/23/22
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Packet Pg. 1273 Attachment: Written Comment (5319 : Emergency Ordinance - Eviction Protection)