Item 26 - Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances

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Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances September 6, 2022 Page 3 2 9 3 0 remain with the City Council together with their general financial oversight in the City’s budget. The Rental Housing Board would be formed after staff begin collecting a rental registry fee such that there is sufficient funding for staff to support the board. 2. Create a Rental Registry The next recommendation is to create a rental registry. A rental registry is a database where landlords register rental properties, update rental unit information, update tenancy information, and pay annual rental registry fees. At its core function, rental registries allow tenants, landlords and city staff to know which rental units are covered under the RSO and JCEO (e.g. rent-stabilized units). Currently, the City does not collect any rent or tenancy data for individual rental units. This means the City cannot confirm or deny which specific units are covered under the RSO and JCEO and which units are exempt – an essential public service for any jurisdiction administering these ordinances on behalf of tenants and landlords. In their analysis of seven (7) Sample Jurisdictions, RSG concluded that a rental registry is the most important tool used by jurisdictions to implement their ordinances. A rental registry would allow the City to compile key data on rent-stabilized units, track allowable rent increases, monitor compliance with the City’s RSO and JCEO, and communicate rental unit data on a regular basis to both landlords and tenants. RSG found that of the 23 jurisdictions across the state with ordinances, 87% require landlords to register rental units within a rental registry and have a rental registry fee, including all seven (7) Sample Jurisdictions interviewed. A rental registry provides the following benefits to both tenants and landlords: •Landlords and tenants will be able to regularly access and verify their units’ rental information, increasing transparency. •A rental registry will eliminate doubt regarding which units are covered under the ordinances. •Additional support will be available for mediating disputes and settling matters outside of the Court system, resolving issues more quickly and efficiently. •Staff will be able to communicate with both landlords and tenants more effectively, which will allow both parties to better understand their rights and responsibilities under the RSO and JCEO. 3. Adopt a Rental Registry Fee In order to create a rental registry and pay for the costs to administer the ordinances, the City will need to adopt a rental registry fee. This fee would be collected from landlords across the city on an annual basis, similar to the City’s current Proactive Rental Enforcement Program fee. A rental registry fee is collected to offset and cover 100% of the cost of administering the ordinances, including maintaining the rental registry, program administration, and compliance activities. This fee ensures that the program is completely cost-neutral to the City (e.g. 100% cost recovery) with no impact to the City’s General Fund. In their research of Sample Jurisdictions, RSG found that rental registry fees average approximately $195 per unit, and that many of the Sample Jurisdictions