Agenda Packet_2023-05-16 - Laserfiche WebLink

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Rental Registry Fee Study May 16, 2023 Page 3 Option 2. Financial impact of having petition fees separate from the Rental Registry Fee; or Option 3. Financial impact of having no petition fees. Option 2: Petition Fees Se arate from the Rental Registry Fee Fee Title Suggested Fee # of Units/Petitions Revenues Annual Registration $86.12 per unit 32,450 Units $2,794,654 Fair Return Petition $21,357 per petition 4 Petitions $85,428 Capital Improvement Petition $13,442 per petition 4 Petitions $53,768 Tenant Petition $350 per petition 958 Petitions $311,150 Total $3,245,000 Under Option 2, landlords would be required to pay $21,237 to submit a Fair Return Petition and $13,442 to submit a Capital Improvement Petition. Tenants would also be required to pay $350 to submit a Tenant Petition. These additional petition fees would discourage landlords and tenants from submitting petitions under the Ordinance. Option 3: No Petition Fees Fee Title Suggested Fee # of Units/Petitions Revenues Annual Registration $86.12 per unit 32,450 Units $2,794,654 Fair Return Petition $0 per petition 4 Petitions $0 Capital Improvement Petition $0 per petition 4 Petitions $0 Tenant Petition $0 per petition 958 Petitions $0 Total $2,794,654 -$3,245,000 (-$450,346) Under Option 3, the removal of petition fees results in an annual operating deficit of up to ($450,346) to pay for all costs associated with the Ordinance. As a result, the City's General Fund would have to annually subsidize the petition fees with up to $450,346 to ensure the Rent Stabilization Program can process Fair Return Petitions, Capital Improvement Petitions, and Tenant Petitions as required under the Ordinance. Fair Return Petitions are a constitutional right for landlords. Meanwhile, Capital Improvement Petitions and Tenant Petitions are available options for landlords and tenants in the Ordinance. Based upon the Rental Registry Fee Study, staff recommends a Rental Registry Fee of $100 per unit (Option 1). This new Rental Registry Fee of $100 per unit provides a simple streamlined fee for tenants and landlords that includes all of the costs to implement, administer, monitor, support, and enforce the Ordinance, while supporting cost recovery and no impact to the City's General Fund. This Rental Registry Fee also adheres to the principles approved by the City Council on September 6, 2022 for the Rental Registry Fee to be as low and lean as possible to not create an unnecessary burden on tenants and landlords; to blend a hybrid of services between consultants and City staff; and builds upon other existing services across the City to administer the Ordinance. City Council 9-3 5/16/2023