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

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20 20 Other Notable Program Design Recommendations RSG has identified other notable considerations such as relocation payments for tenants, “banking” restrictions for rent increases, and establishing a mediation process. As it relates to banking and relocation, RSG is not recommending any amendments to the Ordinances due to the complexity of the issue and the potential negative impact to tenants. Specifically, banking can cause excessive rent increases, which may be harmful to tenants. Additionally, relocation regulations are already specified in the City’s JCEO wherein the City’s current ordinance states that if evicting a tenant for no-fault just cause termination, the landlord must provide three (3) months of relocation assistance or waive the payment of rent for the last three (3) months of the tenants’ tenancy. Among other notable program design recommendations, a mediation process is the final consideration. 9. Create a Mediation Process – California Evidence Code §§1115-1128 defines “mediation” as “a process in which a neutral person or persons facilitate communication between the disputants to assist them in reaching a mutually acceptable agreement.” Mediation differs from the conventional adversarial legal process by focusing on mutual agreement instead of trying to fight and argue against the other party in court. The City should develop a mediation program with contracted mediators to address landlord and tenant disputes that involve unresolved disputes, not landlord violations. Mediation can settle disputes without the need for a legal hearing. Some advantages to mediation include: a. Mediation generally lasts a shorter amount of time than a trial; b. Mediation can be confidential such that nothing that is said during mediation can be used in court if mediation fails; and c. Mediation is generally more cost-effective and reduces the number of hearings. Mediation programs have been successful in a few of the Sample Jurisdictions. For example, the City of Santa Monica provides voluntary mediation for rent decrease petitions, excess rent complaints, and other matters not raised by a petition. Mediation was successful during their fiscal year 2021 in which 61% of decrease petitions, 92% of construction petitions, and 92% of excess rent complaints were mediated and fully or partially resolved. Separate from mediation, Sample Jurisdictions also stressed the importance of having low or no-cost legal services to refer landlords and tenants to help maintain equity. Sample Jurisdictions provide guidance regarding legal issues through housing counseling, but not legal advice. Therefore, Sample Jurisdictions rely on local legal organizations to refer tenants and landlords. Generally, the Jurisdictions contract with the organizations to ensure access. The funding for the contracts is provided from the Jurisdiction outside of the rental registry fee. Many organizations only provide services for tenants; therefore using the rental registry fee that is provided by landlords is not equitable. Other Sample Jurisdictions have self-help lines that provide services to tenants and landlords, but this is still funded outside of the rental registry fee. The City should continue coordinating with local legal organizations that provide services to landlords and/or tenants to understand the impact of the ordinances on their organization, identify areas of need for additional funding, and gather information to determine if additional City resources are needed for local tenant and landlord legal providers.