HomeMy WebLinkAboutItem 26 - Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction Ordinances Community Development Agency
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Item # 26
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 6, 2022
TOPIC: Long-Term Implementation Plan for the Rent Stabilization and Just Cause
Eviction Ordinances
AGENDA TITLE:
Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction
Ordinances
RECOMMENDED ACTION
1. Adopt the Long-Term Implementation Plan for the Rent Stabilization and Just Cause
Eviction Ordinances.
2. Authorize the City Manager and City Attorney to begin drafting amendments to the
Rent Stabilization and Just Cause Eviction Ordinances based upon the Long-Term
Implementation Plan.
DISCUSSION
On October 19, 2021, City Council adopted the Rent Stabilization Ordinance (“RSO”)
(Ord. No. NS-3009) and the Just Cause Eviction Ordinance (“JCEO”) (Ord. No. NS-3010).
These two ordinances became effective November 19, 2021. The City’s RSO limits rent
increases to a maximum of 3%, or 80% of Consumer Price Index, whichever is less, per
year for certain residential rental units and mobilehome spaces in the City. The City’s
JCEO provides “just cause” eviction protections for most tenants that continuously and
lawfully occupy a residential real property or mobilehome space for at least 30 days. The
JCEO also defines what causes are allowable for a landlord to seek eviction of a tenant.
During the adoption of these two new ordinances, City Council also adopted a Resolution
(No. 2021-054) that directed staff to “conduct further study of the additional regulatory
framework and infrastructure necessary to implement residential rent stabilization, just
cause eviction, and other protections for Santa Ana residents facing housing instability.
These measures are to include the creation and operation of a Rent Board or similar
body, a rental registry, and the related costs thereof.” This Resolution is attached as
Exhibit 1. In order to conduct this further study, the City retained RSG, Inc. (“RSG”) to
complete the following tasks:
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1. Develop a comprehensive list of California jurisdictions with RSOs and/or JCEOs;
2. Research and analyze existing RSO and JCEO programs and best practices in
selected jurisdictions; and
3. Provide recommendations for the City’s long-term implementation of the
ordinances.
RSG’s Long-Term Implementation Plan is attached as Exhibit 2. To create this Plan, RSG
researched and interviewed seven (7) of twenty-three (23) jurisdictions across the State
with RSO and/or JCEOs to understand their program requirements, administrative
structure and resources, program revenue and expenses, program compliance, and best
practices that the City should consider for its Long-Term Implementation Plan. Based
upon this research, RSG created a Long-Term Implementation Plan with ten (10)
recommendations for the implementation of the City’s Rent Stabilization and Just Cause
Eviction Ordinances. These ten (10) recommendations for the City’s Long-Term
Implementation Plan are summarized below:
1. Create a Rental Housing Board
The first recommendation is to create a Rental Housing Board. A Rental Housing Board
is an appointed body that is responsible for RSO and JCEO program administration. Of
the 23 jurisdictions across the state with ordinances, RSG found that 65% have Rental
Housing Boards or Commissions that help guide their program and review decisions,
including all seven (7) Sample Jurisdictions interviewed. Rental Housing Boards generally
preside over hearings and appeals, provide enforcement of the ordinances, and make
recommendations for pertinent changes to the ordinance(s). The standard size of these
boards range between five (5) to nine (9) members who are typically appointed by the
Mayor and/or City Council and are required to be equally balanced between landlords,
tenants, and at-large representatives. The board will have equity and balance between
landlords and tenants. RSG’s Long-Term Implementation Plan provides detailed
information of the membership and scope of work of the Rental Housing Board in each
Sample Jurisdiction. Examples of achieving a balanced board composition include:
•5 members appointed by the Mayor and approved by City Council including 2
Tenants, 2 Housing Providers, and 1 Residential Property Owner but not Housing
Provider. (City of Alameda)
•6 members and 3 alternates appointed by City Council including 2 Landlords, 2
Tenants, and 2 members who are not tenants or managers or have financial
interest in multi-family residential rental property. (City of Beverly Hills)
•5 members appointed by the mayor and approved by City Council including 2
Landlords, 2 Tenants, and 1 City employee. (City of Inglewood)
Staff recommends creating a 7-member board appointed by City Council including 2
Tenants, 2 Landlords, and 3 at-large members with no financial interest.
Staff would be responsible for reviewing petition materials, analyzing information, and
preparing staff reports that would be presented to the Rental Housing Board to make
determinations within their authority. However, any changes to the RSO or JCEO would
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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
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used a consultant to conduct a fee study to determine the rental registry fee amount.
However, the exact rental registry fee for the City will not be known until after a work plan
is created (Recommendation # 4) and a fee study is conducted (Recommendation # 5).
Based upon the fee study, the rental registry fee will be set as conservatively as possible
to reduce financial impacts on tenants and landlords. Specifically, the fee will be as low
and lean as possible so as to not create an unnecessary burden on tenants and landlords.
Where staff can identify opportunities to contract out for services to keep the fee and costs
as low as possible, staff will enter into consultant agreements. Staff will also identify ways
to build upon other existing activities across the city to administer the ordinances. Staff
intends for this fee to have a minimal financial impact on tenants and landlords. The fee
study and ultimately the rental registry fee itself will be guided by these principles.
RSG found that the program surplus and deficits varied on an annual basis in the Sample
Jurisdictions that were surveyed. Years in which the programs operate at a deficit will be
subsidized by the City. Years in which the program collects a revenue surplus can be
addressed by holding the funding as reserves to account for future deficits, as well as
reducing the rental registry fee in the subsequent fiscal year. Staff will prepare annual
financial reports summarizing budgeted expenses, actual expenses, revenue, and
reserves, if any.
In addition, the City will allow landlords to pass-through no more than 50% of a unit’s
rental registry fees to the tenant as a rent surcharge prorated over twelve months.
Allowing for the cost sharing of the rental registry fee appears to be an industry standard,
with the intention of promoting equity and shared responsibility amongst tenants and
landlords. For example, if 50% of the registry fee is passed through to the tenant, and
the total rental registry fee amount is $180, $90 would be passed-through to the tenant.
When this is divided by 12 months, it equals an additional $7.50 per month for the City to
monitor and ensure compliance for the tenant’s rent stabilized unit. The rental registry
will be used to communicate the pass-through fee in a user-friendly system. Staff will
also monitor landlord’s compliance with charging their tenants this pass-through fee in
order to mitigate the risk of landlords charging their tenants 100% of the rental registry
fee.
RSG identified other considerations to be taken into account in regards to a rental registry
fee. For example, the City may establish a fee for fully and partially covered units and/or
make certain units exempt from paying a rental registry fee. Generally, a fully covered
unit refers to rental units where both the RSO and JCEO apply, and partially covered units
refer to units where only the JCEO applies. The City may also consider making certain
units exempt from paying the rental registry fee, such as rental units occupied by rent-
subsidized tenants (e.g. Housing Choice Voucher / Section 8).
4. Develop a Work Plan
Providing staff for a Rental Housing Board (Recommendation #1), creating a rental
registry (Recommendation # 2), and collecting rental registry fees (Recommendation #
3), will be included in an overall work plan to administer the ordinances. The City currently
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administers the RSO and JCEO through a consultant, RSG, and partial staff time from a
Housing Programs Analyst, Housing Division Manager, and Assistant City Attorney.
Before adopting a rental registry fee, staff will need to develop a work plan detailing and
itemizing exactly how the RSO and JCEO will be administered (e.g. how the fee will be
used). In their research of Sample Jurisdictions, the following services were provided as
best practices to effectively implement rent stabilization and just cause eviction
ordinances:
•Annual Registration – Process registration fees for the rental registry, maintain
rental registry, and send annual notices of maximum allowable rent increases.
•Compliance – Process notices of violations and complaints, send notices of non-
compliance to landlords, and pursue compliance activities as necessary for non-
compliant properties.
•Evictions/Termination of Tenancy – Review notices of eviction/termination of
tenancy to ensure compliance with the JCEO.
•Hearings and Appeals – Process hearings for appeals to rent amounts and
petitions. This includes communicating with the tenants and landlords involved,
collecting supporting documentation, coordinating with the Rental Housing
Board, and writing letters of determination.
•Housing Counseling/Mediation – Provide tenant and landlord housing
counseling and mediation services.
•Petitions – Receive, review, and analyze data to provide decisions on petitions,
subject to appeal.
•Public Information – Provide customer service to inquiring tenants and landlords
and conduct on-going community outreach and education.
•Rental Housing Board Administration – Facilitate regular meetings and
complete administrative tasks related to the Rental Housing Board.
Taking into account all of these best practices, a work plan will be prepared and provided
to an outside consultant to conduct a fee study to determine the rental registry fee. A
detailed budget to match the work plan would also be included in the process to develop
a rental registry fee. The work plan will account for the principles surrounding the rental
registry fee and the most cost-effective way to implement the long-term implementation
plan, including the consideration of setting the fee as low and lean as possible, utilizing
consultants, and building upon other services across the city.
5. Conduct a Fee Study Based on the Work Plan and Staffing Needs
Next, a fee study will be conducted based upon the work plan (Recommendation # 4) and
staffing needs identified. Based on their research of seven (7) Sample Jurisdictions, RSG
found that the overall program budget is largely related to the number of units in a rental
registry and the services provided. Santa Ana has approximately 36,350 rental units that
may be subject to registration in the rental registry. A fee study will account for the number
of units that may be included in the rental registry and the proposed budget based on the
work plan to determine the fees required to fully recover costs of all budgeted operations
(e.g. 100% cost recovery). Using an average rental registry fee per unit for all Sample
Jurisdictions of $195 and 36,350 rental units in Santa Ana, RSG estimates that the City
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could potentially collect approximately $6.7 million annually for a fully operating program.
Currently, the City’s ordinance costs over $300,000 per year and will increase to $500,000
in the next fiscal year with no cost recapture. The fee study will account for the most cost-
effective way to implement the long-term implementation plan, including the consideration
of utilizing consultants. The results of the fee study will be used to establish the amount
of the rental registry fee to be collected from landlords and tenants (Recommendation #
3).
The Sample Jurisdictions provided information on the staffing needed to effectively
implement their ordinances and emphasized that staffing plans are constantly evolving
based on annual analysis of the rental registry fees expended and collected for
departmental operations since the inception of their programs. RSG’s Long-Term
Implementation Plan includes organizational charts for a few of the Sample Jurisdictions.
In order to effectively implement the Long-Term Implementation Plan, staff estimates a
minimum of 12 staff members would be needed upon initial program implementation. By
completing a fee study and analyzing annual data after program inception, the City will
be able to produce a financial projection of revenue, expenses, and reserves for a fully
operational program.
6. Expand Compliance Activities
The next four recommendations for the Long-Term Implementation Plan are important
activities to consider as part of the work plan (Recommendation # 4) and fee study
(Recommendation # 5). The City’s RSO and JCEO currently states the following if any
person is in violation, “It shall be unlawful for any person to violate or fail to comply with
any provision of the ordinance. The violation of any provision of this ordinance shall first
be punished through the use of an administrative citation, as provided in Santa Ana
Municipal Code section 1-21, et. seq., prior to prosecution as a misdemeanor infraction”.
Currently, there are limited resources within the City that can adjudicate a dispute over
tenant/landlord issues or concerns, short of the Court system, which can be time-
consuming and costly. Identifying how the RSO and JCEO will be monitored for
compliance will allow the City to more effectively uphold the provisions of the ordinances.
The positive impacts of the RSO and JCEO programs are directly correlated to effective
monitoring of compliance with the ordinances. Furthermore, some Sample Jurisdictions
mentioned that staffing capacity and resources were the major drivers in their ability to
proactively enforce violations of the ordinances.
An analysis of the existing best practices and programs administered by Sample
Jurisdictions determined that effective compliance activities include issuing notices and
warnings in response to complaints and reported information in the rental registry,
increasing staffing to issue citations and pursue criminal offenses, and contracting with a
mediator to improve landlord-tenant relationships, among other activities.
7. Create a Landlord Capital Improvement Petition and Tenant Petition
Generally, there are three types of petitions: 1) landlord fair return petitions, 2) landlord
capital improvement petitions, and 3) tenant petitions. Currently, the City’s RSO only has
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one type of petition, fair return petitions for landlords with capital improvements included.
This fair return petition allows for relief from the maximum allowable rent increase,
provided there is evidence that a rate increase in excess of the annual maximum is
necessary to provide a fair and reasonable return for their property.
A landlord capital improvement petition is a request by a landlord to pass-through costs
associated with certain capital improvements. A capital improvement is one that materially
adds to the value of the property (this is often detailed as a specific amount in the
ordinance), appreciably prolongs its useful life, or adapts it to new uses, and which may
be amortized over the useful life of the improvement of the building. Creating a capital
return petition is beneficial because it incentivizes landlords to improve their property
knowing they can pass through some of these costs to their tenants. In general, a landlord
capital improvement petition would allow a landlord to temporarily increase rents to
recover the cost of capital improvements when the improvement(s) benefit the units in
question and the improvement(s) were not necessitated by the current landlord’s neglect
or failure to maintain the property.
The RSO states that the provisions of the ordinance do not apply to residential real
property in which each of the units have been substantially rehabilitated within the
previous 15 years. "Substantially rehabilitated" means that the cost to rehabilitate the
residential real property was at least $40,000 per unit. Creating a landlord capital
improvement petition will clear up who is responsible for approving this type of exemption
in the ordinance by requiring substantive documentation of the work performed at the
property.
A tenant petition is a request by tenants to assert a claim against a landlord. Examples
include a decrease in rent due to a substantial decrease in housing services, failure to
repair or maintain a unit, or failure to discontinue a capital or utility pass-through. Creating
a tenant petition is beneficial because it gives tenants an administrative tool to address
excess rent based on conditions of the rental unit, reduction in services, issues of
habitability, and landlord violations of the ordinance outside of the legal system. These
petitions are also beneficial for staff to monitor compliance with the ordinance and help
maintain current rental data in the rental registry.
8. Establish Petition Fees and a Petition Review Process
Currently, the City’s ordinance requires applicants to pay for the cost of a consultant to
review fair return petitions. As a component of the fee study (Recommendation # 5), staff
will assume the rental registry fee will fully cover the costs to review each type of petition
while keeping the rental registry fee as low as possible. Staff do not want to layer a petition
fee on top of the rental registry fee. The administrative work of reviewing and determining
petition status varies widely, and as such, these costs will be included in the rental registry
fee with a nominal petition deposit. By incorporating the petition fee into the rental registry
fee, this will streamline the administration of the ordinance, while a nominal deposit will
ensure landlords and tenants share a minimum responsibility for their petitions. The
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nominal deposit for landlords could be staggered based upon the number of units they
own.
Additionally, the City’s ordinances currently place the decision-making responsibility for
fair return petitions on the City Manager or a designee. Understanding that petitions
require lengthy administrative work, communication with landlords and tenants, as well
as processing time, staff will determine the most efficient use of time and resources for
reviewing each type of petition. In their research of Sample Jurisdictions, RSG found that
the decision-makers for petitions and appeals most commonly range from internal hearing
officers, to contracted hearing officers/examiners, or the Rental Housing Board.
9. Create a Mediation Process
Mediation is defined 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.
RSG found that mediation is beneficial as a supplement to RSO and JCEO programs in
that:
•Mediation generally lasts a shorter amount of time than a trial;
•Mediation can be confidential such that nothing that is said during mediation
can be used in court if mediation fails; and
•Mediation is generally more cost-effective and reduces the number of
hearings.
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. Staff will develop a mediation program with contracted mediators to
address landlord and tenant disputes that do not involve landlord violations. Mediation
will be a public service offered to tenants and landlords as an alternative to escalating
issues to the Rental Housing Board.
10.Join the Rent Stabilization Consortium
The Rent Stabilization Consortium is a group of representatives from California cities with
rent stabilization programs. This consortium provides opportunities to discuss challenges,
successes, and collaborate with other cities on the topic of rent stabilization. In their
research of Sample Jurisdictions, RSG found an emphasis on the positive impact of being
a member of the consortium. Staff will participate in the consortium to further opportunities
for collaboration and knowledge of best practices for administering RSO and JCEO
programs.
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Next Steps
Following adoption of this Long-term Implementation Plan for the Rent Stabilization and
Just Cause Eviction Ordinances, staff will return and request City Council to:
1. Adopt amendments to the Rent Stabilization and Just Cause Eviction Ordinances,
including the creation of a Rental Housing Board and a rental registry, among
various other amendments.
2. Authorize staff to conduct a fee study to establish a rental registry fee to cover
program administrative costs.
3. Authorize staff to contract with a consultant to implement a rental registry.
The following estimated timeline of activities is provided below:
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBITS
1. Resolution No. 2021-054
2. Long-Term Implementation Plan for the Rent Stabilization and Just Cause Eviction
Ordinances
Submitted By: Steven Mendoza, Assistant City Manager
Approved By: Kristine Ridge, City Manager
RESOLUTION NO. 2021-054
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
ANA DIRECTING FURTHER STUDY OF THE ADDITIONAL
REGULATORY FRAMEWORK AND INFRASTRUCTURE
NEC ESSARY TO IMPLEMENT RESIDEN TIAL RENT
STABILIZATION, JUST CAUSE EVICTION, AND OTHER
PROTECTIONS FOR RESIDENTS FACING HOUSING
INSTABILITY
WHEREAS, a shortage of decent, safe, affordable, and sanitary housing exists in
the City of Santa Ana, causing the displacement of long-term residents, 54% of whom are
renters according to the 2019 American Community Survey; and
WHEREAS, eviction creates extreme hardships for individuals and households of
limited means in Santa Ana, given the shortage of affordable housing within the City and
Orange County in general; and
WHEREAS, the COVID-19 pandemic has taken an enormous physical, economic,
and psychological toll on the reside nts of Santa Ana, many of whom are lower-income
renters experiencing either reduction of work hours and job loss, or heightened risk of
contracting COVID-19 where they have continued to work in service-sector and other
positions that cannot be performed from home; and
WHEREAS, the City of Santa Ana, with a majority Latino population, has
experienced nearly 50,000 confirmed COVID-19 cases, the highest in Orange County,
and over 800 deaths from COVID-19, leading to even greater housing instability; and
WHEREAS, housing instability threatens the public peace, health, and safety,
because eviction from one's home can lead to prolonged homelessnes s, increased
residential mobility, loss of community, strain on household finances due to the necessity
of paying rental application fees and security deposits, stress and anxiety experi enced by
those displaced, increased commute times and traffic impacts if displaced workers cannot
find affordable housing within the city in which they work, and interruption of the education
of children in the home; and
WHEREAS, since 2016, the Santa Ana City Council has considered and received
public testimony at multiple meetings from residents threatened by eviction without good
cause and rapidly escalating rental rates who have advocated for the adoption of rent
stabilization and just cause eviction regulations, among others; and
WHE REAS, displacement from eviction has been an acute risk for many tenants
in Santa Ana, who are largely Latino and work in occupations most impacted by the
COVID-19 pandemic; and
Resolution No. 2021-054
Page 1 of 3
EXHIBIT 1
WHEREAS, the financial impacts of displacement include, but are not limited to,
packing, moving, temporary housing, application for new housing, and storage costs, as
well as lost wages and time due to taking time off work; and
WHEREAS, landlords often require that prospective tenants pay the equivale nt of
three months' rent up front to secure a lease-generally representing the first and last
month's rent, and a security deposit, the total of which can exceed $10,000 and can
frequently reach $20,000 or greater; and
WHEREAS, renter households are more likely to be low-income than the
households of families who own their homes; and
WHEREAS, a household is generally rent-burdened if it spends more than 30% of
its gross income on housing costs, and according to the 2019 American Community
Survey, 58.5% of all renter households in the City of Santa Ana are either moderately or
severely rent burdened; and
WHEREAS, renters in Santa Ana were protected from eviction for nonpayment of
rent due to COVID-19 through September 30, 2020, by City Executive Order No. 10-2020
and remain similarly protected by state law but only through September 30, 2021; and
WHEREAS, within the conf ines of existing state law, including the Costa-Hawkins
Rental Housing Act and the Tenant Protection Act of 2019, the City of Santa Ana is
presently taking steps to restrict rental increases and grounds for eviction in response to
the above concerns; and
WHEREAS, these protections are designed to exceed those offered by state law
wherever permissible and also to apply to mobilehome owners, as the City is home to 29
mobilehome home parks containing 3,913 spaces, most of which are owned or inhabited
by low-income or fixed-income sen iors and families; and
WHEREAS, the concerns identified above related to housing instability warrant the
further study of additional framew ork and infrastructure to optimize the impl ementation of
related measures, including without limitation the creation of a Rent Board or similar body.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa
Ana as follows:
Section 1. City staff is hereby directed to conduct further study of the addit ional
regulatory framework and infrastructure necessary to implement residential rent
stabilization, just cause eviction, and other protections for Santa Ana residents facing
housing instability.
Section 2. These measures are to include the creation and operation of a Rent
Board or similar body, a rent registry, and the related costs thereof.
Resolution No. 2021-054
Page 2 of 3
EXHIBIT 1
Section 3. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this 21 51 day of September, 2021.
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By: (1,.L �-f---L
�unk
Sr. Assistant City Attorney
Vicente Sarmiento
Mayor
AYES:Councilmembers Hernandez, Lopez, Phan, Sarmiento (4)
NOES:Councilmembers Bacerra, Mendoza, Penaloza (3)
ABSTAIN:Councilmembers '""'N"""o"'""'ne-'--'-(0""') __________ _
NOT PRESENT:Councilmembers _N�o"'""'ne�<0�) __________ _
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2021-054 to be the original resolution adopted by the City Council of the
City of Santa Ana on September 21, 2021.
Da �'a Clerk of the Council
City of Santa Ana
Resolution No. 2021-054
Page 3 of 3
EXHIBIT 1
August 29, 2022
City of Santa Ana
Long-Term Implementation Plan for the
Rent Stabilization and Just Cause
Eviction Ordinances
EXHIBIT 2
TABLE OF CONTENTS
INTRODUCTION ..................................................................................................................... 1
TENANT PROTECTIONS ....................................................................................................... 2
EXISTING RSO AND JCEO PROGRAMS ............................................................................. 3
Overview of Sample Jurisdictions’ RSO and JCEO Programs ............................................. 4
Rental Housing Board ...................................................................................................... 4
Rental Registry and Fee ................................................................................................... 6
Program Administration .................................................................................................. 11
Compliance Activities ..................................................................................................... 14
Petitions.......................................................................................................................... 16
Other Notable Program Design Recommendations ....................................................... 20
PROGRAM DESIGN RECOMMENDATIONS ....................................................................... 21
List of Tables
Table 1: Sample Jurisdictions ................................................................................ 3
Table 2: Sample Jurisdictions’ Rental Housing Board ............................................ 4
Table 3: Sample Jurisdictions’ Rental Registry ...................................................... 7
Table 4: Sample Jurisdictions’ Program Administration ....................................... 11
Table 5: Sample Jurisdictions’ Compliance Activities ........................................... 14
Table 6: Sample Jurisdictions’ Petitions ............................................................... 17
Exhibit A: Summary of All Jurisdictions with Rent Stabilization Ordinances ........... 23
Exhibit B: Sample Jurisdictions Organizational Charts ........................................... 25
1 1
INTRODUCTION
On October 19, 2021, the Santa Ana City Council (“City”) adopted two tenant protection ordinances –
the Rent Stabilization Ordinance (“RSO”) (Ord. No. NS-3009) and the Just Cause Eviction Ordinance
(“JCEO”) (Ord. No. NS-3010), which became effective November 19, 2021:
The City’s RSO limits rent increases to a maximum of 3%, or 80% of CPI, whichever is less, per
year for certain residential rental units and mobilehome spaces in the City (Santa Ana Municipal
Code section 8-1998.1).
The City’s JCEO provides “just cause” eviction protections for most tenants that continuously
and lawfully occupy a residential real property or mobilehome space for at least 30 days. The
JCEO also defines what causes are allowable for a landlord to seek eviction of a tenant (Sec.
8-1994).
On September 21, 2021, the City adopted a resolution that “directed [staff] to conduct further study of
the additional regulatory framework and infrastructure necessary to implement residential rent
stabilization, just cause eviction, and other protections for Santa Ana residents facing housing instability.
These measures are to include the creation and operation of a Rent Board or similar body, a rental
registry, and the related costs thereof.” In order to conduct this study, the City retained RSG to complete
the following tasks:
1. Develop a comprehensive list of California jurisdictions with RSO and/or JCEOs;
2. Research and analyze existing RSO and JCEO programs and best practices in selected
jurisdictions; and
3. Provide recommendations for the City’s long-term implementation of the programs.
This report details RSG’s analysis, findings, and recommendations.
2 2
TENANT PROTECTIONS
The topic of tenant protection in California is not new and has been around for decades. Many
jurisdictions throughout the years have established rent control ordinances. Established in 1995, the
Costa-Hawkins Rental Housing Act (California Civil Code Section 1954.50, et seq.) limit s the kind of
rent control policies cities can impose by preventing cities from establishing rent restrictions on units
constructed after 1995, protecting a landlord's right to raise the rent to market rate on a unit once a
tenant moves out, and exempting single-family homes and condos unless they are owned by a
corporation or real estate investment trust. The Costa-Hawkins Rental Housing Act prohibits vacancy
control on residential properties and exempts certain kinds of units (e.g., new construction, single units
with separately alienable titles, like single-family houses and condominiums) from rent control.
Housing costs in the State of California continue to rise and many tenants are experiencing significant
rent increases and/or evictions. Recognizing this issue, the State Legislature enacted the Tenant
Protection Act (Assembly Bill 1482, California Civil Code Section 1946.2, et seq.) which will be effective
for 10 years from its effective date, through December 31, 20291. The Tenant Protection Act put in
place a statewide rent stabilization cap that limits annual increases at 5%, plus any rise in the Consumer
Price Index (“CPI”), not to exceed 10%. In addition to limiting annual rent increases, the Tenant
Protection Act also provides tenant protections that prevent tenant evictions without just cause when all
tenants have lived in the unit for 12 months or more, or where at least one tenant has occupied the unit
for 24 months.
Excluding the City, twenty-three (23) jurisdictions in California have rent stabilization ordinances. Of
these jurisdictions, nineteen (19) ordinances only apply to residential units and four (4) apply to both
residential units and mobilehome park spaces.
Some characteristics vary amongst rent stabilization and just cause eviction programs, but of the
twenty-three (23) jurisdictions:
Twenty (20) jurisdictions require landlords to register rental units within a rental registry and
have a registration fee that landlords are required to pay; and
Fifteen (15) jurisdictions have rent review boards or commissions that help guide the
program and review decisions.
The protections provided in these ordinances are more restrictive, or provide greater benefits to tenants,
than those set forth in the Tenant Protection Act. Exhibit A includes a summary of all the jurisdictions in
the State of California with rent stabilization ordinances.
1 Assembly Bill 1482, Chapter 597
3 3
EXISTING RSO AND JCEO PROGRAMS
In May 2022, RSG researched existing RSO and JCEOs and their associated programs in seven (7) of
the twenty-three (23) jurisdictions to understand program requirements, administrative structure and
resources, program revenue and expenses, program compliance, and identify best practices that the
City should consider in its long-term implementation of the programs. After researching each program,
RSG interviewed staff from each of the jurisdictions to gather pertinent anecdotal information that is not
publicly available.
RSG selected the seven (7) jurisdictions based on the following criteria (“Sample Jurisdictions”):
Preference for jurisdictions with both a rent stabilization and just cause eviction ordinance;
Similar number of approximate rental units as the City (40,000); and
Ordinance(s) applies to both Residential and Mobilehome units.
Table 1 below lists the seven Sample Jurisdictions that RSG identified and includes a comparison of
each jurisdiction to the City’s ordinances.
Table 1: Sample Jurisdictions
Source: City Ordinances, May 2022
Jurisdiction Ordinance Year Approved By Just Cause
Eviction Ordinance
Allowable Rent
Increase
1. Alameda 2019 City Council Yes 70% of CPI, not
to exceed 5%
2. Berkeley 1980 Voter Yes 65% of CPI
3. Beverly Hills 1979 City Council Yes
3% or CPI,
whichever is
higher
4. Inglewood 2019
City Council Yes
3% or CPI for
properties with
greater than 5
units, and 5%
plus CPI for
properties with
less than 5 units
5. Richmond 2016 Voter Yes 100% of CPI
6. Santa Monica 1979 Voter Yes 75% of CPI
7. West
Hollywood 1985 City Council Yes 75% of CPI
8. Santa Ana 2021 City Council Yes
3% or 80% of
CPI, whichever is
less
4 4
Overview of Sample Jurisdictions’ RSO and JCEO Programs
The Sample Jurisdictions’ RSOs, JCEOs, and their associated programs vary in terms of program goals
and design, thus representing different design options for the City. The following section summarizes
each of the key components of the Sample Jurisdiction programs and is organized by topic rather than
a summary of each jurisdiction. Based on our research, RSG discovered that most jurisdictions
administer the two programs collectively and do not run them as separate programs since both
programs are meant to protect tenants. For our summary and recommendations, the information
presented illustrates the combined programs.
Rental Housing Board
Each of the Sample Jurisdictions have a selected body that is responsible for rent stabilization program
administration, which is generally described as a Rental Housing Board, Commission, or Committee.
For the purposes of this report, RSG refers to this appointed body as a Rental Housing Board. Table 2
presents a summary of the Sample Jurisdictions’ Rental Housing Board.
Table 2: Sample Jurisdictions’ Rental Housing Board
Jurisdiction Board Name Members Scope of Work
Alameda
Rent Review
Advisory
Committee
5 members appointed
by the Mayor and
approved by City
Council
2 Tenants
2 Housing Providers
1 Residential
Property Owner but
not Housing
Provider
Review requests from
tenants concerning rent
increases
Hold hearings for requests
for a rent increase review
Make recommendations to
the tenants and their
housing providers about
the increases
Berkeley
Rent Board (with
a number of
Committees)
9 Commissioners
elected by voters
Must submit a
verified statement of
their interests and
dealings in real
property during the
previous three years
Implement and oversee
program
Enact regulations
Hearing petition appeals
filed by tenants and
landlords
Beverly Hills Rent Stabilization
Commission
6 members and 3
alternates appointed by
City Council
2 Landlords
2 Tenants
2 members who are
not tenants or
managers or have
Make recommendations to
the City Council
concerning amendments
to chapters of the Code
that have not been
resolved by the City
Council
Perform any other
functions that may be
5 5
financial interest in
multi-family
residential rental
property
designated by resolution
or motion of the City
Council
Inglewood
Rental Housing
Board
5 members appointed
by the mayor and
approved by City
Council
2 Landlords
2 Tenants
1 City employee
Review applications
submitted by landlords or
tenants
Establish policies and
procedures for
administration and
compliance of the program
Conduct hearings on
petitions filed or appeals
of decisions of a Hearing
Officer filed
Richmond
Rent Board
5 members, appointed
by the Mayor subject to
three additional votes by
City Council members
Shall be no more
than two members
that own or manage
any rental property
or are realtors
Establish Base Rent
Make adjustments in rent
increases and decreases
Establish rules and
regulations
Charge and collect
registration fees
Collect/receive copies of
landlord notices
Refer violations to
appropriate authorities
Santa Monica Rent Control
Board
5 elected
Commissioners
Controlling residential
rents
Limiting the grounds for
eviction
Preserving rental housing
Encouraging maintenance
Ensuring landlords receive
a fair return
6 6
Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022
Program Design Recommendations
The City should consider the following as part of their long-term implementation of the RSO and JCEO
programs:
1. Create a Rental Housing Board – Currently, the City does not have a Rental Housing Board.
All Sample Jurisdictions with an ordinance that was approved by their City Council appoint
members to the Rental Housing Board. Half of the Sample Jurisdictions boards are appointed
by the Mayor and the other half by City Council. These appointees are typically required to be
stakeholders in their respective jurisdiction’s residential rental market and are required by city
code to be equally balanced between landlords and tenants. The standard size of these boards
range between five (5) to nine (9) members with a median of five (5). The City will need to
determine if the Mayor or City Council will appoint members to the board.
Across all Sample Jurisdictions, the rent boards typically preside over hearings and appeals, monitor
compliance with the ordinances through differing methods, and make recommendations for pertinent
changes to the regulations regarding the ordinance(s). The City’s RSO currently gives the City Manager
or designee the authority to approve or deny fair return petitions or any other matters. By creating a
Rental Housing Board, a board composed of representatives from the community would hear all
appeals of decisions made by the authorized designee. Staff would review petition materials, analyze
information, and prepare staff reports that would be used by the Rental Housing Board to make a
determination. Any changes to the RSO or JCEO ordinances would remain with the City Council along
with the financial oversight.
Rental Registry and Fee
A rental registry is a database where landlords register rental properties, update rental unit information,
update tenancy information, and pay annual rent registration fees as may be required by RSO and/or
JCEO programs. Most systems also allow landlords and tenants to file and submit required
documentation and verify coverage under the programs. Rental registries allow tenants, landlords and
West Hollywood Rent Stabilization
Commission
7 members who shall be
residents of the city.
Each member of the
City Council shall
appoint one member
of the Commission.
The Council as a
whole will appoint
the remaining two
members.
Responsible for
promulgating policies,
rules, forms, or regulations
found necessary to
implement the program
Hear all appeals of
decisions by a hearing
examiner
Submit an annual written
report to the City Council
describing its activities.
Evaluate and make
recommendations to the
City Council relative to the
city’s rent stabilization
policies.
7 7
city staff to know which rental units are covered under the RSO (e.g. rent-stabilized units). 1 Rental
registries increase transparency for rental units by providing a way to collect rental unit data and track
changes including rent increases, vacancies, notices, and violations. All seven (7) Sample Jurisdictions
have a rental registry and six (6) of the seven (7) require landlords to pay an annual registration fee.
The one (1) jurisdiction that does not currently have a fee is planning to conduct a fee study to establish
a fee. Table 2 presents a summary of the Sample Jurisdictions’ rental registries. [A fully covered unit
refers to rental units where both the RSO and JCEO apply, and partially covered units refers to units
where only the JCEO applies.]
Table 3: Sample Jurisdictions’ Rental Registry
1 Rental units also include mobilehome park rental spaces.
Jurisdiction Registry Fee Unit Type Number of Rental
Units
Alameda
$155 fully covered
units
$105 partially covered
units
$0 (None) Section 8
Housing
Fee system is
estimated in terms of
staff time required for
fully vs. partially
covered units
Fee initially set
through study
conducted by SCI
Consulting Group
Multi-family units built
before 1995 are fully
covered
Single-family homes,
condos, post-1995
multi-family units, and
Section 8 are partially
covered
Landlords can pass
through half of the fee
to tenants
12,000 fully covered
units
2,000 partially covered
units
94% compliance rate
Rental registry: 3Di
Berkeley
$250 fully covered
units
$150 partially covered
units
Adjustments are made
by the Board
depending on staffing
and budgetary needs
Fee initially
established by annual
fee study (1980-2004)
Units that meet rent
control, rent
registration, security
deposit interest, and
eviction protections
requirements are fully
covered
Single family homes,
condominiums, post-
1980 constructions,
units with tenants
using Section 8, and
units exempt from rent
control are partially
covered
20,000 fully covered
units
5,000 partially covered
units
Rental registry: 3Di
8 8
Landlords can pass
through up to
$100/year to tenants
Beverly Hills
$0 (None)
Note: City is
considering
establishing a fee with
a fee study completed
by Revenue Cost
Specialists LLC
All Units
7,700 units
99% compliance
Rental registry: 3Di
Inglewood
$206 all units
$92 units with a
Section 8 tenant
$0 units less than 70%
of FMR
Fee based on
estimated costs and
number of units
All units must register
even if exempt, except
single-family homes
not owned by
company
Landlords can pass
through half of the fee
to tenants, except to
Section 8 tenants
23,000 units
Rental registry: 3Di
Richmond
$218 fully covered
units
$123 partially covered
units
Annual fee study
conducted by
Management Partners
Multi-unit properties
built before February
1995 are fully covered
Subsidized units,
single family homes,
condos, and units built
after February 1995
are partially covered
7,500-8,000 fully
covered units
10,700 partially
covered units
96.5% compliance
Rental registry: Not yet
selected
Santa Monica
$198 fully covered
units/rent-controlled
units, with waivers
available for units with
Section 8 tenants
Fee adjustments are
based on costs and
number of units
Board establishes fees
based on the budget
and number of units
Pre 1979 construction
units are fully covered
Post 1979
constructions are
partially covered
Landlords can pass
through half of the fee
to tenants
27,484 units
90-95% compliance
Rental registry:
Internal system
West Hollywood
$144 fully covered
units
$60 units with a
Section 8 tenant
Pre-July 1979 multi-
family residential rental
units and single-family
homes and condos
16,707 units
95% compliance
9 9
Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022
Program Design Recommendations
Currently, the City does not collect any rent or tenancy data for individual rental units. The City cannot
confirm or deny which specific units are covered under the RSO and JCEO and which units are exempt
– a key piece of information for any jurisdiction administering these ordinances. All jurisdictions reported
having a higher rate of compliance with their jurisdictions’ program requirements following the
implementation of a rental registry. Collection of this data through a rental registry will provide a critical
means of administering the ordinances and will provide the means to make informed, data-driven policy
and administrative decisions to fulfill the objectives of the ordinances. The City should consider the
following as part of their long-term implementation of the RSO and JCEO programs:
2. Create a Rental Registry – A rental registry is the most important tool used by jurisdictions to
implement renter protections. 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.
Through the collection, monitoring, and dissemination of allowable rents and rent increases, a
rental registry establishes and makes accessible the rent limits for each covered unit. This in
turn increases transparency, eliminates doubt regarding rent maximums, and provides a clear
basis for both landlords and tenants to verify that their rents and rent increases comply with
ordinance requirements. A well-maintained rental registry also increases compliance and in turn,
creates a robust database full of accurate data. In general, the rental registry compliance rate
was over 90% in the jurisdictions that provided this information indicating that the system paired
with staff efforts to facilitate registration are effective.
Note: City Council has
recently enacted an
ordinance for
registering partially
covered units. Fee
undetermined.
Fee study conducted
by MGT of America
built pre-July 1979
units whose tenants
moved in before
January 1996 are fully
covered
Post-January 1979
new construction units,
properties with only
one dwelling unit
whose current tenant
moved in after January
1996, and government
owned or subsidized
residential rental
properties are partially
covered
Landlords of fully
covered units can pass
through half of the fee
to tenants, except for
Section 8 tenants
Rental registry:
HdL software
10 10
In addition to the benefits that rental registries provide for rent-stabilized units, the
implementation of a rental registry also provides stronger protections for rental units that are
covered only by the JCEO. The registry can be used to determine whether a landlord serving
an eviction notice is in compliance with all aspects of the ordinance and inform tenants who
have received eviction notices of their rights and responsibilities. Furthermore, registries all ow
for the monitoring of rental activity after a landlord has evicted a tenant for no-fault just cause
reasons.
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.
There was an overwhelming recommendation from the Sample Jurisdictions encouraging the
City to explore contracting with 3Di Systems to develop a database to organize the rental
registry. 3Di Systems is a software development firm, based in the City of Brea, that specializes
in working with local governments in the areas of housing, public safety, and community
engagement. They have been in business for over twenty (20) years and expressed during an
inquiry meeting with City staff that they have never had a client change services. Five (5) of the
seven (7) Sample Jurisdictions use their services and all have expressed positive interactions
and outcomes with them. Many expressed that they appreciated that 3Di Systems tailored the
rental registry to meet the specific needs and nuances requested for program implementation.
3. Adopt a Rental Registry Fee – A rental registry fee is collected to offset and ultimately cover
100% of the cost of the programs, including maintaining the registry, program administration,
and compliance activities. This fee ensures that the program is completely cost-neutral to the
City. Sample Jurisdiction rental registry fees average approximately $195 per unit. Many of the
Sample Jurisdictions used a consultant to conduct a fee study to determine the rental registry
fee amount. However, it should be noted that the City will need to develop a work plan before
hiring a consultant to complete a fee study. Depending on the work plan, this framework can be
prepared and provided to the consultant that will be responsible for determining the rental
registry fee. During this process, the City can determine if they would like the fee to be adjusted
annually by the Rental Housing Board, or if routine fee studies will be completed to adjust the
rental registry fee amount.
Another consideration related to the rental registry fee is whether the City would like to establish
a fee for fully and partially covered units and/or make certain units exempt from paying a
registration fee. Generally, a fully covered unit refers to rental units where both the RSO and
JCEO apply, and partially covered units refer to units where only the JCEO applies. The City
may consider making certain units exempt from the requirement to pay a rental registry fee,
such as rental units occupied by rent-subsidized tenants (e.g. Housing Choice Voucher / Section
11 11
8). Additionally, the City may consider allowing 50% of a unit’s fees to be passed-through to its
tenants as a rent surcharge prorated over twelve months. Allowing for the cost-sharing of the
rental registry fee may promote equity and shared responsibility amongst tenants and landlords;
however, the increased cost to tenants may undermine the stabilizing effects that the program
seeks.
Program Administration
Program administration varies widely across jurisdictions. There are a few factors for determining the
scale, breadth, and cost to administer the programs of which the number of rental units covered by the
ordinances and the services provided are the most important. Table 4 presents a summary of the
Sample Jurisdictions’ program administration frameworks.
Table 4: Sample Jurisdictions’ Program Administration
Jurisdiction
Full-Time
Equivalent
(“FTE”)
Annual Budget
Allocation Division of Work Total Number of
Rental Units
Alameda
10
Note: FTEs are
split between the
City and Housing
Authority
Start-up budget:
$1.7 million
Expenses: $2.2
million
Revenues: $1.8
million
Compliance,
Hearings,
Petitions, Public
Information,
Registration,
Termination of
Tenancy
14,000
Berkeley
24
Projected to
reach 30
Start-up budget:
$225,000
Expenses:
$5,466,666
Revenues:
$4,850,000
Administration,
Compliance,
Counseling,
Hearings,
Housing,
Mediation,
Petitions, Public
Information,
Termination of
Tenancy
25,000
Beverly Hills
6
Expenses: $1.1
million
Revenues: Paid
from General
Fund
Commission,
Complaints,
Compliance,
Petitions,
Registration,
7,700
Inglewood
8
Projected to
reach 17
Start-up costs:
$352,379
Personnel,
$788,500 Office,
Administration
Inspection, Public
Information,
Registration,
Termination of
Tenancy
23,000
12 12
Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022
Program Design Recommendations
The City should consider the following as part of their long-term implementation of the RSO and JCEO
programs:
4. Develop a Work Plan – The City currently administers the RSO and JCEO through a consultant,
RSG, Inc., and partial staff time from a Housing Programs Analyst, Housing Division Manager,
and Assistant City Attorney. The limited activities include:
Conduct outreach and education including periodically mailed communications,
workshops, and website updates.
Respond to general public information inquiries.
and professional
services
Expenses:
$3,427,121
Revenues: N/A
(Still within first
year of program)
Richmond 12
Start-up costs:
$1.1 million
Expenses:
$2,425,312
Revenues:
$2,609,056
Compliance,
Counseling,
Hearings,
Housing, Legal
Assistance,
Petitions, Public
Information,
Registration,
Termination of
Tenancy
18,450
Santa Monica 24
Expenses:
$5,287,331
Revenues:
$5,307,131
Administration,
Hearings,
Mediation,
Petitions, Public
Information,
Registration
27,484
West Hollywood 10
Start-up costs:
$200,000
Software and
additional
personnel
Expenses:
$2,659,262
Revenues:
$2,211,000
Administration,
Complaints,
Compliance,
Hearings,
Inspections,
Public
Information,
Registration
16,707
13 13
Prepare RSO and JCEO informational materials and notices.
Refer tenant legal matters and interpretation questions to community legal aid
organizations, as applicable.
Review Fair Return Petitions.
A division of work plan should be prepared and provided to a consultant who will be responsible
for determining the rental registry fee. Across Sample Jurisdictions, the following services were
provided as best practices to effectively implement rent stabilization and just cause eviction
ordinances:
Annual Registration – Process registration fees for the rental registry, maintain rental
registry, and send annual notices of maximum allowable rent increases.
Compliance – Process notices of violations and complaints, send notices of non-
compliance to landlords, and pursue compliance activities as necessary for non-
compliant properties.
Evictions/Termination of Tenancy – Review notices of eviction/termination of tenancy to
ensure compliance with the JCEO.
Hearings and Appeals – Process hearings for appeals to rent amounts and petitions.
This includes communicating with the tenants and landlords involved, collecting
supporting documentation, coordinating with the Rental Housing Board, and writing
letters of determination.
Housing Counseling/Mediation – Provide tenant and landlord housing counseling and
mediation.
Petitions – Receive, review, and analyze data to provide decisions on petitions, subject
to appeal.
Public Information – Provide customer service to inquiring tenants and landlords and
conduct on-going community outreach and education.
Rental Housing Board Administration – Facilitate regular meetings and complete
administrative tasks related to the Rental Housing Board.
Each Sample Jurisdiction is unique in how these services are organized amongst various
departments, demonstrated in their organizational charts in Exhibit B. In developing this work
plan, the City may also consider if it will need the help of outside consultants or organizations to
help with items such as mediations, hearing officers, petitions, and tenant/landlord legal
advisors. A detailed budget to match the work plan would be the next step in the process to
develop a rental registry fee.
5. Conduct a Fee Study Based on the Work Plan and Staffing Needs – Based on the
information provided by the Sample Jurisdictions, the overall budget is mostly related to the
number of units in the rental registry and services provided. Santa Ana has approximately
36,350 rental units that may be subject to registration in the rental registry. The number of units
in the rental registry for all Sample Jurisdictions ranges from 7,700 to 27,484 with an average of
18,906 units. The rental registry compliance rate ranges from 92.5% to 99% with an average of
95%. The overall expenses range from $433,000 to $5.46 million with an average of $3.5 million.
The rental registry fee ranges from $0 to $250 with an average of $167. [To avoid skewing the
results, RSG removed the $0 fee amount that resulted in a range of $144 to $250 and an average
fee of $195.]
14 14
Using an average rental registry fee per unit for all Sample Jurisdictions of $195 and 36,350
rental units, the City could potentially collect approximately $6.7 million annually for a fully
operating program. To come up with this estimate, RSG multiplied the average rental registry
fee per unit for all Sample Jurisdictions of $195, by the number of rental units in Santa Ana equal
to 36,350, and adjusted for a rental registry compliance rate of 95% to estimate that it could
collect approximately $6.7 million to administer the RSO and JCEO programs. This does not
include the startup costs. The average startup cost for all jurisdictions was $1,313,626. It should
be noted that four (4) of seven (7) Sample Jurisdictions were unable to provide their start-up
costs but indicated that the major components are the rental registry and department staffing.
A fee study that takes into account the number of units that may be included in the rental registry
and the proposed budget based on the work plan will allow the City to determine the fees
required to fully recover costs of all budgeted operations (e.g. 100% cost recovery). Currently,
the City’s ordinance costs over $300,000 per year through an agreement with RSG and will
increase to $500,000 in the next fiscal year with no cost recapture. This estimate does not
include partial staff time from a Housing Programs Analyst, Housing Division Manager, and
Assistant City Attorney.
Compliance Activities
Each RSO and JCEO program from the Sample Jurisdictions includes monitoring the compliance of the
programs. Compliance activities vary widely amongst the jurisdictions and depend partially on the
design of the Program Administration. Table 5 presents a summary of the Sample Jurisdictions’
compliance activities.
Table 5: Sample Jurisdictions’ Compliance Activities
Jurisdiction Penalties and Remedies Activities
Alameda
Series of citations for Article
violations ($250 – $1,000) or
by imprisonment not to
exceed 6 months, or by both a
fine and imprisonment
Any aggrieved person,
including the City and State of
CA, may enforce this article
by means of a civil action
Housing Authority provides annual
report of Ordinance violations to the
City
City Attorney’s Prosecution Unit is
responsible for administering warning
notices
Berkeley
Petition the board for
appropriate relief
Withhold up to the full amount
of periodic rent in good faith
Seek injunctive relief
File a damage suit against the
landlord
City Department is responsible for
proactive compliance activities
including the provision of online tools
to assess landlord compliance in
addition to mailed communications to
tenants and landlords
15 15
Beverly Hills
Series of citations for code
violations ($100 -$500)
City Code Enforcement division is
responsible for proactive annual
inspections
Warning notices are first method of
compliance for registration
violations
Contracted Criminal Prosecutor
issues citations
Mediation services are provided
through a contracted program on
behalf of the City
Inglewood
Misdemeanor
Administrative Fine ($500)
The City’s decision regarding
enforcement shall not affect a
Tenant’s right to pursue the
following civil remedies: file a
petition with the Program
Administrator, establish
eligibility for exemptions, or
dispute the amount of
Relocation Assistance due
City department is responsible for
contacting violators including by
phone following a complaint by
tenant
City’s legal aid provides further
assistance by working with tenant to
resolve further disputes
Richmond
Misdemeanor- any landlord
who retains unentitled rent
from a Tenant shall be liable
for costs incurred by the
Tenant
In lieu of filing a civil action, a
Tenant retains the right to file
an administrative complaint
City is responsible for the proactive
administration of penalty fees
Santa Monica
Landlord who retains
unentitled rent from a Tenant
shall be liable for costs
incurred by the Tenant and
Tenant retains the right to file
an administrative complaint
Misdemeanor citations not
exceeding $500,
imprisonment not exceeding
six months, or both
City software system responsible for
notifying users of fees
If fee remains unpaid, enforcement is
handled through City’s legal
department and small claims court
City’s legal department is responsible
for making recommendations to the
Board in the case of appeals
Mediation services are provided
through a contracted program
16 16
Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022
Program Design Recommendations
Currently, the City’s RSO and JCEO Ordinance states the following if any person is in violation, “It shall
be unlawful for any person to violate or fail to comply with any provision of the ordinance. The violation
of any provision of this ordinance shall first be punished through the use of an administrative citation,
as provided in Santa Ana Municipal Code section 1-21, et. seq., prior to prosecution as a misdemeanor
infraction, as provided in Santa Ana Municipal Code section 1-8” (Santa Ana Municipal Code section 8-
1998.8). The Sample Jurisdictions have similar provisions in their ordinances. However, the extent of
actual compliance activities and the responsible party significantly varies.
6. Expand Compliance Activities – As part of the work plan prepared for Program Administration,
the City should identify how the RSO and JCEO programs will be monitored for compliance.
Currently, there are limited resources within the City that can adjudicate a dispute over
tenant/landlord issues or concerns, short of the court system which can be time-consuming and
costly. The positive impacts of the RSO and JCEO programs are directly correlated to effective
monitoring of compliance with the ordinances. Some jurisdictions mentioned that staffing
capacity and resources were the major drivers in the ability to proactively enforce violations of
the ordinances. As part of this consideration, the City could consider hiring additional City staff
for these compliance activities.
An analysis of the existing best practices and programs administered by Sample Jurisdictions
determined that effective compliance activities include issuing notices and warnings in response
to complaints and reported information in the rental registry, increasing staffing to issue citations
and pursue criminal offenses, and contracting with a mediator to improve landlord-tenant
relationships, among other activities. Additionally, the RSO and JCEO compliance activities
provisions could be revised to add civil actions that may be utilized by any aggrieved person to
monitor compliance with the ordinances.
Petitions
Generally, there are three types of petitions: 1) landlord fair return petitions, 2) landlord capital
improvement petitions, and 3) tenant petitions.
Landlord Fair Return Petitions
A landlord is entitled under the law to receive a fair return on their rental property or mobilehome park.
If a landlord believes that the maximum allowable rent under the RSO does not constitute a fair return,
they have the right to file a fair return petition requesting an increase greater than what the RSO
provides. This is a legal requirement that applies to all RSO programs.
West Hollywood
Series of citations for code
violations ($100 to $500)
Misdemeanor upon 4th offense
City Code Enforcement is primarily
responsible for citations
17 17
Landlord Capital Improvement Petitions
Some jurisdictions allow for a separate capital improvement pass-through petition that is considered
separately from the fair return petition. A capital improvement is one that materially adds to the value of
the property (this is often detailed as a specific amount in the ordinance), appreciably prolongs its useful
life, or adapts it to new uses, and which may be amortized over the useful life of the improvement of the
building. As such, these fees are considered temporary and do not permanently increase a tenant’s
rent. In general, a capital improvement petition would allow a landlord to increase rents to recover the
cost of capital improvements when the improvement(s) benefit the units in question and the
improvements were not necessitated by the current landlord’s neglect or failure to maintain the property.
In some cases, the monthly rent increase cannot exceed a certain percentage of a tenant’s monthly
rental amount. In this case, the capital expense is amortized, with interest, over a longer term to allow
the landlord to recover the cost of capital improvements while not causing an undue burden to the
tenant. A capital expense can affect all the units in a building, some of the units in a building, or just one
unit in a building. Examples of capital improvements include new windows, a roof replacement, and
exterior painting to the entire building. Repair and maintenance work, such as replacing a broken
windowpane, patching a roof, clearing a clogged pipe, or unit-specific repairs are not considered capital
improvements.
Tenant Petitions
All of the Sample Jurisdictions have provisions in their programs that allow a tenant to file a petition
asserting various types of claims against a landlord. Examples include a decrease in rent due to a
substantial decrease in housing services, failure to repair or maintain a unit, or failure to discontinue a
capital or utility pass-through. Table 6 presents a summary of the Sample Jurisdictions’ petitions.
Table 6: Sample Jurisdictions’ Petitions
Jurisdiction Type of Petition Petition Fee Approves
Petitions
Petitions
Received
Annually
Alameda
Fair Return,
Separate Capital
Improvement
Plan, Tenant
$0 (None)
Rent Review
Advisory
Committee,
Appeal to Hearing
Officer
3 Fair Returns, 17
Tenant Petitions,
10 progress to
hearing
Berkeley
Fair Return,
Separate Capital
Improvement,
Tenant
$0 (None)
Petition; $100-
$200 Fair Return
and Capital
Improvement
appeal
Hearing
Examiner, Appeal
to Rent
Stabilization
Board
0 Fair Returns
since Ordinance
Effective date,
Limited Capital
Improvements
Beverly Hills
Fair Return,
Separate Capital
Improvement,
Tenant
$896 Fair Return
and Capital
Improvement; $0
(None) Tenant
petition
Hearing Officer,
Appeal to Rent
Stabilization
Commission
0 Fair Returns
18 18
Jurisdiction Type of Petition Petition Fee Approves
Petitions
Petitions
Received
Annually
Inglewood
Fair Return,
Separate Capital
Improvement,
Tenant
$199 petition,
$265 appeal; $0
(None) Tenant
petition
Rental Housing
Board
New program, 0
Petitions
Richmond Fair Return,
Tenant $0 (None) Hearing Officer,
Rent Board
5-7 Fair Returns,
60 Rent Changes
(majority tenant
downward)
Santa Monica Fair Return,
Tenant
$100 per petition
for all properties
up to ten (10)
units; $150
properties with
between eleven
(11) and fifteen
(15) units; $200
properties with
sixteen (16) or
more units; $0
(None) Tenant
petition
Hearing Officer,
Appeal to Rent
Review Board
Limited Fair
Returns, 89
Tenant Petitions
West Hollywood
Fair Return,
Separate Capital
Improvement,
Tenant
$500 for buildings
with 1-4 rental
units; $500 base
fee for buildings
with 5-9 rentals
plus additional
fee of $25 per
unit; $500 base
fee for buildings
with 10+ units
plus additional
fee of $35 per
unit; $25 Tenant
decrease petition
(low-income
waiver available)
Hearing Officer,
Appeal to Rent
Stabilization
Commission
2 Fair Returns in
the past 10 years,
30-40 Tenant
Petitions annually
Sources: City Ordinances, May 2022; Zoom Interviews of Sample Jurisdictions conducted in May and June 2022
Program Design Recommendations
As explained above, there are generally three types of petitions. Currently, the City’s RSO and JCEO
ordinances only have one type of petition, fair return petitions for landlords with capital improvements
19 19
included. Notably, all Sample Jurisdictions report receiving very few fair return petitions annually with
the largest amount being seven. For example, West Hollywood received only two (2) fair return petitions
in the past ten (10) years. Jurisdictions stated that they believe there are two reasons for this: 1)
landlords do not want to go through the administrative petition process that is required; and 2) landlords,
even when adhering to rent stabilization ordinances, do receive a fair return from their rental property.
The City should consider the following as part of their long-term implementation of the RSO and JCEO
programs:
7. Create a Landlord Capital Improvement Petition and Tenant Petition - Some Sample
Jurisdictions include capital improvements as part of a fair return petition while others have a
separate petition. The benefit to having a separate landlord capital improvement petition is that
it incentivizes landlords to improve their property knowing they can pass through some of these
costs to their tenants. Alternatively, while tenants may benefit from the capital improvement in
the long term, it results in an increase in rent for tenants above the annual allowable rent
increase imposed by the RSO.
All Sample Jurisdictions allow for tenant rent change petitions, allowing tenants to have an
administrative tool to address excess rent based on conditions of the rental unit, reduction in
services, issues of habitability, and landlord violations of the ordinance. These petitions are also
beneficial in aiding in monitoring compliance with the ordinance and help maintain current rental
data in the rental registry.
8. Establish Petition Fees and a Petition Review Process – Currently, the City’s ordinance
requires applicants to pay for the cost of a consultant to review Fair Return petitions. The City
should establish individual petition fees and appeal fees that are separate from the rental registry
fee by including this component in the fee study. The fee study should consider the options of
having the rental registry fee fully cover the expense of petitions or having additional petition
fees to recover staff costs for the review of petitions. Two (2) of the seven (7) Sample
Jurisdictions do not have individual petitions fees but are fully funded through their rental registry
fees. Jurisdictions with petitions fees expressed that they chose to institute these fees due to a
large amount of work that is required per petition, which many are eventually resolved through
administrative means rather than going through the full petition review process.
Currently, the City’s ordinances place the decision-making responsibility for fair return petitions
on the City Manager or a designee. Understanding that petitions require lengthy administrative
work, communication with landlords and tenants, as well as processing time, the City should
determine the most efficient use of time and budget for petitions. Many of the Sample
Jurisdictions have specific staff members coordinating petition reviews with the applicant to
ensure proper document submission while smaller organizations contract these services out.
After a review and approval, the application is forwarded to the decision-maker. The decision-
makers for appeals in the Sample Jurisdictions range from internal hearing officers, to
contracted hearing officers/examiners, or the Rental Housing Board. Tying into the overall
organization of the program administration, the City will need to determine what the petition
review process will be for each type of petition.
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.
21 21
PROGRAM DESIGN RECOMMENDATIONS
Based on our analysis of the Sample Jurisdictions, RSG developed several recommendations for the
City to consider in designing its RSO and JCEO long-term implementation program. The following
details RSG’s program design recommendations:
1. Create a Rental Housing Board: A Rental Housing Board should be assembled to preside
over hearings and appeals, monitor compliance with the ordinances through differing methods,
and make recommendations for pertinent changes to the regulations regarding the
ordinance(s). The Board will guide staff in the long-term implementation of the program.
2. Create a Rental Registry: A rental registry is a critical component of administering an RSO
and JCEO program. Landlords, tenants and the City need to know which units are rent-
stabilized units. The City should seek assistance from a qualified consultant experienced in the
development of a rental registry to create a registry for the City.
3. Adopt a Rental Registry Fee: A rental registry fee is necessary to offset and ultimately cover
the cost of the programs, including maintaining the registry, program administration, and
compliance activities. This fee is intended to ensure that the program is completely cost-neutral
to the City.
4. Develop a Work Plan: The City must develop a work plan based on the division of work to be
undertaken by the City, needed resources, and a budget.
5. Conduct a Fee Study Based on the Work Plan and Staffing Needs: The City should
complete a fee study establishing a rental registry fee amount and petition fees. A fee study will
take into account the number of units that may be included in the rental registry and determine
the fees required to fully recover costs of all budgeted operations (e.g. 100% cost recovery).
6. Expand Compliance Activities: As part of the work plan, the City should identify how the
RSO and JCEO programs will be monitored for compliance.
7. Create a Landlord Capital Improvement Petition and Tenant Petition: A separate capital
improvement petition incentivizes landlords to upkeep their property knowing they can pass
through some of these costs to their tenants. A tenant petition gives tenants an administrative
tool to address excess rent based on conditions of the rental unit, reduction in services, issues
of habitability, and landlord violations of the ordinance outside of the legal system.
8. Establish Petition Fees and a Petition Review Process: The petition fees would be separate
from the rental registry fee and recover staff costs for the review of petitions. The petition review
process will determine the most efficient use of time and budget for petitions as part of the work
plan.
9. Create a Mediation Process: Mediation provides the opportunity for landlord and tenant
issues to be resolved prior to court action and is facilitated by a neutral person or persons that
22 22
communicates 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. Mediation
generally lasts a shorter amount of time than a trial, can be confidential, and is generally more
cost-effective.
Additional program design recommendations not previously mentioned above in the report include:
10. Join the Rent Stabilization Consortium: In addition to implementing the previous
recommendations, the City should consider joining the Rent Stabilization Consortium. The Rent
Stabilization Consortium is a group of representatives from California cities with rent
stabilization programs. This consortium provides opportunities to discuss challenges,
successes, and collaborate with other cities on the topic of rent stabilization. Multiple Sample
Jurisdictions mentioned the positive impact of being a member of the consortium as a way to
further opportunities for collaboration and knowledge of best practices for administering RSO
and JCEO programs.
23 23
Exhibit A: Summary of All Jurisdictions with Rent Stabilization Ordinances
Jurisdiction Approved by Ordinance Effective
Date
Population
(2020
Census)
Rent
Stabilization
Ordinance
Just Cause
Ordinance
Applies to
Residential
Units
Applies to
Mobilehome
Park Units
Rent Cap Rent Review
Board/Committee
Rental
Registration
Required
Rental Registration Fee Petition for Rent
Increase
Petition for Rent
Increase Has Fee
Santa Ana City Council 10/19/21 310,227 x x x x 3% or 80% of change in CPI, whichever
is lower. TBD TBD TBD TBD TBD
Alameda City City Council
Former Article XI
pertaining to rent
stabilization and
limitations on evictions
was repealed and
reenacted as Article
XV by Ordinance No.
3249 effective 9/4/19.
78,280 x x x
Rent is limited to the base rent charged
as of 9/1/19 plus the Annual General
Adjustment (AGA). For tenancies
beginning after 9/1/19, the base rent is
the initial rent amount. The AGA is
calculated using 70% of the regional
Consumer Price Index (CPI), with a 1%
floor and 5% ceiling.
Rent Review
Advisory
Committee
Required
$155/fully regulated
units; $105/partially
regulated units;
$0/rental units occupied
by subsidized tenants
Yes None
Baldwin Park City Council 12/4/19 effective
1/3/20.72,176 x x x x
Annual rent increases are effectively
limited to 3% (based on the Consumer
Price Index) of the “base rent ceiling”
(rent in effect on 3/5/19, or if none the
initial rent charged on the first day of
tenancy).
None Required $28/unit Yes N/A
Berkeley Voter
Rent Stabilization
6/3/80; Tenant Buyout
3/14/17. ADU
Clarification,
Emergency Exemption
11/3/20.
124,321 x x x
Each January 1 rent ceilings are
increased by the Annual General
Adjustment (AGA). The AGA is set by
October 31 of the preceding year, but has
been 65% of the percentage increase of
the regional Consumer Price Index since
2005.
Rent Stabilization
Board Required
$250/full regulated unit;
$150/partially regulated
units; $37/subsized unit;
$70/summer
sorority/fraternity
outside member rental
unit
Yes $0 petitions, $100-
200 appeal
Beverly Hills City Council 4/27/79. Last
amended 11/06/18.37,701 x x x
Landlord may increase rent once every
12 months, limited to 3% of the current
rent, or the regional Consumer Price
Index (CPI), whichever is higher.
Rent Stabilization
Commission Required $55/unit Yes
$896 fair return
and capital
improvement, $0
tenant petitions
Culver City City Council
Mediation: 5/11/19.
Rent Control and
Tenant Protections,
10/30/20.
40,799 x x x
The rent as of 10/30/20 on then-existing
tenancies, or the initial rent charged on
tenancies beginning thereafter, is the
"base rate" from which increases are
calculated. Increases are limited per 12-
month period to the average annual
change in the Consumer Price Index (CPI)
with a cap of 5%; if the CPA increase is
less than 2%, the cap is 2%.
None Required $167/unit Yes N/A
East Palo Alto City Council
Tenant Protections
5/6/14; Rent
Stabilization
06/08/2010. Last
amended 11/8/16.
30,034 x x x
Yearly rent increases are limited to 80%
of the percentage increase in the
Consumer Price Index (CPI). The overall
rent increase, including the CPI- based
rent adjustment and banked rent
increases, may not exceed 10% in any
twelve-month period.
Rent Stabilization
Board Required $222/non-exempt unit Yes N/A
Hayward City Council 6/25/19 effective
7/25/19.162,954 x x x
A landlord may only increase rent up to
5% per year on the anniversary date of
the lease.
None Not Required
Complaint Based Fees
$40/residential covered
rental unit,
$19/residential rental
unit
Yes None
Inglewood City Council 11/5/19 107,762 x x x
Rent increases are capped at 3% or the
percentage change in the regional CPI-
whichever is greater-of the lowest rent
during the 12 months preceding the
increase. Increases are limited to one per
year.
Rental Housing
Board Required
Before 3/31/22 free;
starting 4/1/22 -
$184/unit; $92/unit with
section 8 tenant; $0/
unit duplex and owner
start tenancy before
tenant, Certification of
Occupancy not older
than 15 years, rents are
less than 70% Fair
Market Value,
affordable housing
developments with
restricted deeds
Yes
$199 petition, $265
appeal, $66
inspection, $33 re-
inspection, $67
exemption
Los Angeles City City Council 4/21/79. Last
amended 5/20.3,898,747 x x x x
Only one rent increase is allowed every
12 months based upon the regional
Consumer Price Index (CPI).
Rental Housing
Oversight
Commission
Required $38.75/unit Yes $25
Los Gatos City Council
10/27/80. Last
amended 9/19/11 (§
14.80.315).
33,529 x x
Rent may be increased only once
annually and the increase cannot exceed
the greater of 5% of existing rent, or 70%
of the regional Consumer Price Index
(CPI).
None Not Required None Yes N/A
Mountain View Voter
November 8, 2016;
effective December
23, 2016. Last
amended 5/2018.
82,376 x x x
Rents may be raised starting September
1st each year by board-determined
amount that is no less than 2%, nor more
than 5%, of the existing rent.
Rental Housing
Committee Required
Annual registration and
fee required, amount
not posted
Yes N/A
Oakland City Council 10/7/80. Last
amended 6/4/2019.440,646 x x x
Only one rent increase is allowed
annually based upon the regional
Consumer Price Index (CPI) or prior
"banked" increases.
Residential Rent
and Relocation
Board
Required $101/unit Yes None
Oxnard City Council Effective 6/4/22
through 1/1/30 202,063 x x x
Rent increases are limited to 4%
annually, and one increase in any twelve
(12) month period.
None Required
Annual registration and
fee required, amount
not posted
Yes
Yes, not specificed
but as determined
by City for
consultancy needs
Palm Springs Voter 9/1/79. Last amended,
by initiative, 12/94.44,575 x x x
Rents are limited to 75% of the increase
in the Consumer Price Index (CPI), and
increases are limited to one per year.
Landlords reducing “base year” services
(the base year is 1979) must also reduce
rents.
Rent Review
Commission Required
Annual registration and
fee required, amount
not posted
Yes N/A
Richmond Voter
Fair Rent adopted
11/08/16. Relocation
adopted 12/20/16,
effective 01/2017.
116,448 x x x
Maximum allowable rent for controlled
units is the rent charged as of July 21,
2015 (“Base Rent”) plus annual increases
capped at 100% of the Consumer Price
Index; if tenant moved in after that date,
base rent is the rent paid for the first
month. Landlords may raise rents on
September 1 of each year, by an amount
tied to the CPI for the region. Rents may
be raised starting September 1 each year
by an amount equal to the regional
Consumer Price Index (CPI).
Rent Board Required
$218/unit fully covered,
$123/unit partially
covered and
govermentally
subsidized
Yes None
24 24
Jurisdiction Approved by Ordinance Effective
Date
Population
(2020
Census)
Rent
Stabilization
Ordinance
Just Cause
Ordinance
Applies to
Residential
Units
Applies to
Mobilehome
Park Units
Rent Cap Rent Review
Board/Committee
Rental
Registration
Required
Rental Registration Fee Petition for Rent
Increase
Petition for Rent
Increase Has Fee
Sacramento City Council
Effective 9/12/19.
Ordinance expires on
December 31, 2024.
524,943 x x x
A rent increase cannot exceed 5% plus
the percentage of the annual increase in
the cost of living adjustment promulgated
by the U.S. Department of Labor, Bureau
of Labor Statistics. The total increase is
capped at 10%, and only one increase is
allowed in any 12-month period. (SCC §
5.156.050.) The “base rent” for purposes
of calculating increases is the monthly
rent in effect on 7/1/19. For tenancies
commencing thereafter, the base rent is
the initial monthly rent set forth in the
lease—or if no lease exists the amount
charged upon initial occupancy.
None Required $20/unit Yes None
San Francisco Board of
Supervisors
6/79. Last amended
12/19.873,965 x x x
Annual rent increases are limited to 60%
of the regional Consumer Price Index
(CPI).
Rent Board Required
$59.00/apartment unit,
$29.50/residential hotel
room
Yes
None for Capital
Improvement
Petition , but must
hire independent
estimator if more
than 25k in
improvements
San Jose City Council
§ 17.23.1200 and
following, adopted
11/2016. Last
amended 12/2018.
1,013,240 x x x
Rent increases may only be given once in
a 12-month period. Annual general rent
increases may not exceed the monthly
rent charged for the previous 12 months
multiplied by 5%.
None Required
Annual registration and
fee required, amount
not posted
Yes N/A
Santa Monica Voter
Charter: 4/10/79. Last
amended 2010.
Tenant Relocation:
2/27/90 last amended
3/28/17.Tenant
Harassment: 10/10/95
last amended
01/13/15.
93,076 x x x
The Rent Control Board determines each
year’s increase (“General Adjustment” or
GA). The Maximum Allowable Rent
(MAR) for any unit is its base rent plus
the increase allowed per the annual GA.
A tenancy must be in place for at least
one year before a GA is allowed. A GA
may then be implemented the following
September 1st or anytime thereafter.
Rent Control Board Required $198/unit Yes
$100 per petition
for all properties
up to ten (10) units;
$150 for properties
with between
eleven (11) and
fifteen (15) units;
$200 for properties
with sixteen (16) or
more units.
Thousand Oaks*City Council 7/1/80. Last amended
5/20/97.126,966 x x x
*Apartment rent control does not apply
to tenants who moved into their
apartment units after 1987. Only tenants
who have lived in the same rent-
controlled unit since 1987 are eligible for
rent control.
Rent Adjustment
Commission Required
Annual registration and
fee required, amount
not posted
None None
Unincorporated Los Angeles
County
Board of
Supervisors Effective 04/1/20.1,057,162 x x x x
Allowable annual rent increases are
based on the change in the regional
Consumer Price Index (CPI), up to a total
of 8% including passthroughs and fees:
When CPI is 8% or more, the maximum
increase is 8%. When CPI is between 3%-
8%, the maximum increase will be equal
to the CPI. When CPI is between 1%-3%,
the maximum increase will be 3%. When
CPI is -2%-1%, the maximum increase will
be CPI plus 2%. When CPI is less than -2%,
the maximum increase is zero. For DCBA
“Certified” luxury market-rate units with
two or less bedrooms in buildings of 25+
units, where the units had a base rent of
$4,000+/month on 11/11/18, landlord
may increase rents by an additional 2%
above CPI.
Rental Housing
Oversight
Commission
Required
Before 4/22 - Free, May -
Sept 2022 - $90/fully
covered units
Yes None
West Hollywood City Council 6/27/85. Last
amended 12/2019.35,757 x x x
Rent increases are limited to 75% of the
increase in the regional Cost of Living
Index (CPI) during the preceding 12
months.
Rent Stabilization
Commission Required $144/unit Yes
$500 for buildings
with 1-4 rental
units; $500 base
fee for buildings
with 5-9 rentals
plus additional fee
of $25 per unit;
$500 base fee for
buildings with 10+
units plus
additional fee of
$35 per unit
Westlake Village*City Council 6/4/05 8,029 x x x
*Has only ever applied to 1 apartment
complex (now condos) and 1 MHP. Rent
control ordinance that applies to
apartment complexes of five units or
more as well as to mobile home parks.
Rental price of mobile home lots has
been frozen at the level of May, 1978,
plus 30%.
None Not Required None None None
25 25
Exhibit B: Sample Jurisdictions Organizational Charts
City of Berkeley
Source: Staff Report 2022
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City of Inglewood
Source: Emailed by Deputy Director of Housing Protection on 8/10/22
City of Richmond
Source: FY 2022-23 Budget & Rental Housing Fee Study
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City of Santa Monica
Source: FY 2021-22 Annual Operating Budget
City of West Hollywood
Source: Emailed by Rent Stabilization Division Manager on 8/9/2022