HomeMy WebLinkAboutO-1672 an Emergency Ordianance approving Just Cause Eviction Protections and Rental Rate Limits effective immediatelyORDINANCE NO. 1672 (2019 SERIES)
AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SAN LUIS OBISPO, CALIFORNIA, APPROVING JUST CAUSE
EVICTION PROTECTIONS AND RENTAL RA TE LIMITS EFFECTIVE
IMMEDIATELY
WHEREAS, the "Tenant Protection Act of 2019" ("AB 1482") was enacted by the
Legislature on September 11, 2019 and signed by the Governor on October 8, 2019; and
WHEREAS, effective January 1, 2020, AB 1482 will add provisions to California landlord
tenant law requiring just cause for evictions and imposing limits on rent increases; and
WHEREAS, the City Council, pursuant to its police powers, has broad authority to
maintain the public peace, health, safety, and general welfare of its community and to preserve the
quality of life for its residents; and
WHEREAS, housing instability threatens the public peace, health, safety, and general
welfare as eviction from one's home can lead to prolonged homelessness; 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 experienced 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, eviction creates particular hardships for individuals and household oflimited
means, given the shortage of housing, particularly affordable housing, within the City of San Luis
Obispo and San Luis Obispo region generally; and
WHEREAS, as AB 1482 does not go into effect until January 1, 2020, landlords could
seek to evict tenants without cause in order to implement rent increase that would not otherwise
be possible after the effective date; and
WHEREAS, the City desires to prohibit exorbitant rental rate increases as well as evictions
without just cause during this transition period; and
WHEREAS, the City Council finds and determines that regulating the relations between
residential landlords and tenants will increase certainty and fairness within the residential rental
market in the City thereby serve the public peace, health, safety, and general welfare; and
WHEREAS, Article VI, Section 605 of the City Charter provides that the City Council
may as an emergency measure, for preserving the public peace, health or safety, and containing a
statement of the reasons for its urgency, may be introduced and adopted at once at the same
meeting if passed by at least four (4) affirmative votes; and
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WHEREAS, the emergency ordinance is intended to enact the rental protections that will
go into effect on January 1, 2020 under AB 1482 immediately within the City of San Luis Obispo
to prohibit an owner of residential property from preemptively increasing rent in excess of
allowable state limits or engaging in no cause evictions in order to evade the application of state
law; and
WHEREAS, an emergency ordinance that is effective immediately is necessary to avoid
the immediate threat to public peace, health, safety, or welfare, as failure to adopt this emergency
ordinance could result in predatory rent increases and eviction actions by landlords seeking to
avoid or diminish the limitations of state law before its effective date presenting a risk of the
displacement of the City's residents and community members.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Incorporation of Recitals. The City Council finds that the forgoing recitals
and administrative report presented with this ordinance are true and correct and are incorporated
in the ordinance by this reference and adopted as findings of the City Council.
SECTION 2. Findings. The City Council herby finds, determines and declares that this
emergency ordinance, adopted pursuant to Government Code Sections 36934 and 36937 is
necessary because:
(a) Housing is difficult to procure in the San Luis Obispo area because of a very low
vacancy rate (3.63% according to the American Communities Survey). The rental
increases and evictions without just cause reported to be occurring in advance of the
effectiveness of AB 1482 destabilize the housing market and can result in the loss of
attainable housing.
(b) For the immediate preservation of the public peace, health, safety, and general welfare
the City Council finds that it is necessary to adopt an ordinance regulating rental rate
increases and just cause evictions, for all reasons set forth in the recitals.
(c) Without the imposition of this ordinance, rental rate increases and eviction without
cause may result in the displacement of residential tenants who could be forced to find
new housing in an ever-more expensive housing market before a non-emergency
ordinance or AB 1482 would become effective, and would significantly increase the
risk of residential tenants becoming homeless or being forced to leave their established
community due to unavailability of equivalent housing.
( d) There is a current and immediate threat to the public peace, health, safety, and general
welfare of the City and its community, due in part to the gap between adoption and
implementation of AB 1482 which increases the risk of tenant displacement prior to
the effective date of the bill, thereby necessitating the immediate enactment of this
emergency ordinance in order to ensure that tenants are not subjected to predatory rent
increases or forced out to their homes without just cause.
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SECTION 3. Urgent Need. Based on the foregoing recitals and findings, all of which are
deemed true and correct, this ordinance is urgently needed for the immediate preservation of the
public peace, health, safety, or welfare. This ordinance shall take effect immediately upon adoption
in accordance with the provisions set forth in Article VI, Section 605 of the City Charter.
SECTION 4. Just Cause Eviction Protections.
(a) Notwithstanding any other law, if at the time the landlord serves a notice to terminate
tenancy, the tenant has continuously and lawfully occupied a residential real property
for twelve (12) consecutive months, the owner of the residential real property shall not
terminate the tenancy without just cause, which shall be stated in the written notice to
terminate tenancy. If any additional adult tenants are added to the lease before an
existing tenant has continuously and lawfully occupied the residential real property for
twenty-four (24) consecutive months, then this section shall only apply if either of the
following are satisfied:
( 1) All of the tenants have continuously and lawfully occupied the residential real
property for twelve (12) consecutive months or more ( e.g., a minor child has
reached the age of majority and is added to the lease).
(b) For the purposes of this section, ''just cause" includes either of the following:
(1) At-fault just cause, which is any of the following:
(A) Default in the payment of rent.
(B) A breach of a material term of the lease, as described in paragraph three (3) of
Section 1161 of the California Code of Civil Procedure, including, but not
limited to, violation of a provision of the lease after being issued a written notice
to correct the violation.
(C) Maintaining, committing, or permitting the maintenance or commission of a
nuisance as described in paragraph four ( 4) of Section 1161 of the California
Code of Civil Procedure.
(D) Committing waste as described in paragraph four (4) of Section 1161 of the
California Code of Civil Procedure.
(E) The tenant had a written lease that terminated on or after November 26, 2019,
and after a written request or demand from the owner, the tenant has refused to
execute a written extension or renewal or the lease for an additional term of
similar duration with similar provisions, provided that those terms do not
violate this section or any other provision oflaw.
(F) Criminal activity by the tenant on the residential real property, including any
common areas, or any criminal activity or criminal threat, as defined in
subdivision (a) of Section 422 of the California Penal Code, on or off the
residential real property, that is directed at any owner or agent of the owner of
the residential real property.
(G) Assigning or subletting the premises in violation of the tenant's lease, as
described in paragraph four ( 4) of Section 1161 of the California Code of Civil
Procedure.
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(H) The tenant's refusal to allow the owner to enter the residential real property as
authorized by Sections 1101.5 and 1954 of the California Civil Code and
Sections 13113. 7 and 1 7926.1 of the California Health and Safety Code.
(I) Using the premises for an unlawful purpose as described in paragraph four ( 4)
of Section 1161 of the California Code of Civil Procedure.
(J) The employee, agent, or licensee's failure to vacate after their termination as an
employee, agent, or licensee as described in paragraph one (1) of Section 1161
of the California Code of Civil Procedure.
(K) When the tenant fails to deliver possession of the residential property after
providing the owner written notice as provided in Section 1946 of the California
Civil Code of the tenant's intention to terminate the hiring of the real property,
or makes a written offer to surrender that is accepted in writing by the landlord,
but fails to deliver possession at the time specified it that written notice as
described in paragraph five (5) of Section 1161 of the California Code of Civil
Procedure.
(2) No-fault just cause, which includes any of the following:
(A) Intent to occupy the residential real property by the owner or their spouse,
domestic partner, children, grandchildren, parents, or grandparents.
(B) Withdrawal of the residential real property from the rental market.
(C) Compliance with order to vacate, including any of the following:
(i) An order issued by a government agency or court relating to habitability
that necessitates vacating the residential real property.
(ii) An order issued by a government agency or court to vacate the residential
real property.
(iii) A local ordinance that necessitates vacating the residential real property.
(iv) If it is determined by any government agency or court that the tenant is at
fault for the condition or conditions triggering the order or need to vacate
under clause (i), the tenant shall not be entitled to relocation assistance as
outlined in paragraph three (3) of subdivision ( d).
(D) Intent to demolish or to substantially rehabilitate or remodel the residential real
property.
(i) For the purposes of this subparagraph, "substantially rehabilitate or
remodel" means the replacement or substantial modification of any
structural, electrical, plumbing, or mechanical system that requires a
permit from a governmental agency, or the abatement of hazardous
materials, including lead-based paint, mold, or asbestos, in accordance
with applicable federal, state, and local laws, that cannot be reasonably
accomplished in a safe manner with the tenant in place and that requires
the tenant to vacate the residential real property for at least thirty (30)
days. Cosmetic improvements alone, including painting, decorating, and
minor repairs, or other work that can be performed safely without having
the residential real property vacated, do not qualify as substantial
rehabilitation or remodel.
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( c) Before an owner of residential real property issues a notice to terminate a tenancy for
just cause that is a curable lease violation, the owner shall first give notice of the
violation to the tenant with an opportunity to cure the violation pursuant to paragraph
three (3) of Section 1161 of the California Code of Civil Procedure. If the violation is
not cured within the time period set forth in the notice, the tenancy may thereafter be
terminated in accordance with otherwise applicable law.
( d) Rental assistance or waiver of rent.
(1) For a tenancy for which just cause is required to terminate the tenancy under
subdivision (a), if an owner of residential real property issues a termination notice
based on a no-fault just cause described in paragraph two (2) of subdivision (b ), the
owner shall, regardless of the tenant's income, at the owner's option, do one of the
following:
(A) Assist the tenant to relocate by providing a direct payment to the tenant as
described in paragraph three (3) below.
(B) Waive, in writing, the payment ofrent for the final month of the tenancy, prior
to the rent becoming due.
(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner
shall notify the tenant of the tenant's right to relocation assistance or rent waiver
pursuant to this section. If the owner elects to waive the rent for the final month of
the tenancy as provided in subparagraph (B) of paragraph one (1 ), the notice shall
state the amount of rent waived and that no rent is due for the final month of the
tenancy.
(A) The amount of relocation assistance or rent waiver shall be equal to one (1)
month of the tenant's rent that was in effect when the owner issued the notice
to terminate the tenancy. Any relocation assistance shall be provided within
fifteen (15) calendar days of service of the notice.
(B) If a tenant fails to vacate as required by the notice to terminate the tenancy,
the actual amount of any relocation assistance or rent waiver provided
pursuant to this subdivision shall be recoverable as damages in an action to
recover possess10n.
(C) The relocation assistance or rent waiver required by this section shall be
credited against any other relocation assistance required by any other law.
(3) An owner's failure to strictly comply with this subdivision shall render the notice
of termination void.
( e) This section shall not apply to the following types of residential real properties or
residential circumstances:
(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940
of the California Civil Code.
(2) Housing accommodations in a nonprofit hospital, religious facility, extended care
facility, licensed residential care facility for the elderly, as defined in Section
1569.2 of the California Health and Safety Code, or an adult residential facility, as
defined in Chapter six (6) of Division six (6) of Title twenty-two (22) of the Manual
of Policies and Procedures published by the California State Department of Social
Services.
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Ordinance No. 1672 (2019 Series) Page 6
(3) Dormitories owned and operated by an institution of higher education or a
kindergarten and grades one (1) to twelve (12), inclusive, school.
( 4) Housing accommodations in which the tenant shares bathroom or kitchen facilities
with the owner who maintains their principal residence at the residential real
property.
(5) Single-family owner-occupied residences , including a residence in which the
owner occupant rents or leases no more than two (2) units or bedrooms, including,
but not limited to, an accessory dwelling unit or a junior accessory dwelling unit.
( 6) A duplex in which the owner occupies one of the units as the owner's principal
place of residence at the beginning of the tenancy, so long as the owner continues
in occupancy.
(7) Housing that has been issued a certificate of occupancy after February 1, 1995.
(8) Residential real property that is alienable separate from the title to any other
dwelling unit or is a subdivided interest in a subdivision as specified in subdivision
(b), (d), or (f) of Section 11004.5 of the California Business and Professions Code.
(9) Housing restricted by deed, regulatory restriction contained in an agreement with a
government agency, or other recorded document as affordable housing for persons
and families of very low, low, or moderate income, as defined in Section 50093 of
the California Health and Safety Code, or subject to an agreement that provides
housing subsidies for affordable housing for persons and families of very low, low,
or moderate income, as defined in Section 50093 of the California Health and
Safety Code or comparable federal statutes.
(f) The provisions of this section shall apply to all residential rental units not specified as
exempt from its requirements, including where a notice to vacate or quit any such rental
unit has been served prior to, as of, or after the effective date of this emergency
ordinance, but where an unlawful detainer judgment has not been issued as of the
effective date of this emergency ordinance.
(g) Any waiver of the rights under this section shall be void as contrary to public policy.
(h) For the purposes of this section, the following definitions shall apply :
( 1) "Owner" and "residential real property" shall have the same meaning as those terms
are defined in California Civil Code Section 1954.51.
(2) "Tenancy" means the lawful occupation of residential real property and includes a
lease or sublease.
(i) Any waiver of the rights under this section shall be void as contrary to public policy.
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Ordinance No. 1672 (2019 Series) Page 7
SECTION 5. Rental Rate Limit Provisions.
(a) To the extent permitted under California Civil Code Section 1954.52 and subject to
subdivision (b ), an owner of residential real property shall not increase the gross rental
rate for a dwelling or a unit more than 8.3 percent (8.3%) of the gross rental rate charged
for that dwelling or unit prior to the effective date of these Rental Rate Limit Provisions.
In determining the gross rental amount pursuant to this section, any rent discounts,
incentives, concessions, or credits offered by the owner of such unit of residential real
property and accepted by the tenant shall be excluded. The gross per-month rental rate
and any owner-offered discounts, incentives, concessions, or credits shall be separately
listed and identified in the lease or rental agreement or any amendments to an existing
lease or rental agreement.
(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful
possession of the residential real property, the owner may establish the initial rental rate
not subject to subdivision (a). Subdivision (a) is only applicable to subsequent increases
after that initial rental rate has been established for a tenancy to which these provisions
apply.
( c) A tenant of residential real property subject to this section shall not enter into a sublease
that results in a total rent for the premises that exceeds the allowable rental rate
authorized by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet
or assign the tenant's interest where otherwise prohibited.
( d) This section shall not apply to the following residential real properties:
(1) Housing restricted by deed, regulatory restriction contained in an agreement with a
government agency, or other recorded document as affordable housing for persons
and families of very low, low, or moderate income, as defined in Section 50093 of
the California Health and Safety Code, or subject to an agreement that provides
housing subsidies for affordable housing for persons and families of very low, low,
or moderate income, as defined in Section 50093 of the California Health and
Safety Code or comparable federal statutes.
(2) Dormitories constructed and maintained in connection with any higher education
institution within the state for use and occupancy by students in attendance at the
institution.
(3) Housing that has been issued a certificate of occupancy after February 1, 1995.
( 4) Residential real property that is alienable separate from the title to any other
dwelling unit or is a subdivided interest in a subdivision as specified in subdivision
(b), (d), or (f) of Section 11004.5 of the California Business and Professions Code.
(5) A duplex in which the owner occupied one of the units as the owner's principal
place of residence at the beginning of the tenancy, so long as the owner continues
m occupancy.
( e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision
(a), to each tenant in accordance with California Civil Code Section 827.
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Ordinance No. 1672 (2019 Series) Page 8
(f) For the purposes of this section, the following definitions shall apply:
( 1) "Owner" and "residential real property" shall have the same meaning as those terms
are defined in Section California Civil Code Section 1954.51.
(2) "Tenancy" means the lawful occupation of residential real property and includes a
lease or sublease.
(g) This section shall apply to all rent increases subject to subdivision (a) effective on or
after November 26, 2019.
(h) This section shall become operative on November 26, 2019.
G) In the event that an owner has sent any rent increase notice on or after September 1,
2019, to increase the rent effective on or after November 26, 2019, the increased rent
may not be by more than the amount permissible under subdivision (a) and the rental
rate increase will be deemed to be the rental rate increase permitted by subdivision.
(k) Any waiver of the rights under this section shall be void as contrary to public policy.
SECTION 6. Enforcement. An owner's failure to comply with any requirement of this
ordinance, is a complete affirmative defense in an unlawful detainer or other action brought by the
owner to recover possession of the rental unit. A tenant may bring a civil suit in the courts of the
state alleging that the owner has violated any of the provisions of this ordinance including that the
owner has demanded, accepted, received, or retained a payment or payments in excess of Rental
Rate Limit Provisions.
SECTION 7. Effectiveness. This emergency ordinance shall be codified and remain in
effect through December 31, 2019. On January 1, 2020, this ordinance shall be automatically
repealed and shall be of no further force and effect, except that causes of action for conduct alleged
to have occurred during the effective term of this ordinance and not otherwise subject to the
provisions of AB 1482 shall survive the repeal of this ordinance and shall be governed by the
provisions in effect at the time the action alleged to have been prohibited by this ordinance
occurred.
SECTION 8. Environmental Determination. In accordance with California
Environmental Quality Act guidelines section 15061(b)(3), adoption of this emergency ordinance
is exempt from the provisions of the California Environmental Quality Act because there is no
possibility that the implementation of this ordinance may have significant effects on the
environment. This ordinance will apply tenant protections to existing residential units for a limited
period of time.
SECTION 9. Severability. If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council hereby declares that it should have adopted
the ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the
fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid
or unconstitutional.
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Ordinance No. 1672 (2019 Series) Page 9
SECTION 10. Legislative history and effective date. This ordinance was adopted on
November 26, 2019 and shall be effective immediately and codified in Chapter 9 .18 and shall be
automatically repealed on December 31, 2019 at midnight.
INTRODUCED AND FINALLY ADOPTED by the Council of the City of San Luis
Obispo on the 261h day ofNovember 2019, on the following vote:
AYES:
NOES:
Council Member Gomez, Stewart, Vice Mayor Pease and Mayor Harmon
None
ABSENT: Council Member Christianson
ATTEST:
)~ -l:B/,l-b,y,_ tc-J
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
""'l
f hristine Dietrick
-,_,,/ City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ·~v-c\ day ofVe ... -'l e-,'M'\b h·€,,4[: , "c6 I '1 ,
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