Agenda Packet_2023-05-16 - Laserfiche WebLink

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Ordinance ("Ordinance"), and the Rent Stabilization Program ("RSP"). [Ordinance and RSP may be used interchangeably throughout this Fee Study.] The Rent Stabilization Program's annual cost is approximately $3.24 million and includes 14.4 full time equivalent city employees, plus contractual support for hearings, appeals, education & outreach, on -call translation services, equipment and technology. Based upon this Fee Study, RCS recommends Option 1 below: Option 1: Single Rental Registry Fee (Petition Fees Included in the Rental Registry Fee) Fee Title Suggested Fee = # of Units Revenue ..................................................................................................... .... Annual Registration $100 per unit 32,450 $3,245,000 After timely payment of the Rental Registry Fee, the landlord may pass through up to fifty percent (50%) of the Rental Registry Fee to tenants of the applicable rental unit, to be paid by the tenant in twelve (12) equal monthly installments (Section 8-3161(d)). This is equal to $4.17 per month to be paid by the tenant. Option 2: Petition Fees Separate 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 Option 3: No Petition Fees # of Units/ Fee Title Suggested Fee Revenues Petitions 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 ....................................................................................................: $2,794,654 Total: -$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 Rent Stabilization and Just Cause Eviction Ordinance. As a result, the City's General Fund would have to annually subsidize the petition fees with up to $450,346 in order to ensure the Rent Stabilization Program can process Fair Return Petitions, Capital Improvement Petitions and Tenant Petitions. Fair Return Petitions are a constitutional right CouncilCity •9ff6,/fffd