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