City of Mountain View

Memorandum

To: Rental Housing Committee

From: Anky van Deursen, Associate Planner

Subject: Committee Meeting Schedule

Date: May 4, 2017

Review of CSFRA and Role of Rental Housing Committee and consideration of a public input process of rulemaking

The first meeting of the Rental Housing Committee for thThe express purpose of the CSFRA is to promote neighborhood and community stability and healthy housing and affordability for renters in the City of Mountain View by controlling excessive rent increases and arbitrary evictions to the greatest extent allowable under California law, while ensuring landlords a fair and reasonable return and guaranteeing fair protections for renters, homeowners and businesses. The purpose of this agenda item is to provide an overview of the CSFRA and a preview of upcoming agenda items.e Community Stabilization and Fair Rent Act, is scheduled for Monday May 8, 2017 at 7:00 PM. Staff recommends the Rental Housing Committee establish its meeting schedule at the first meeting and recommends regular meetings take place on those Mondays listed below and the meetings will start at 7:00 PM. The following regular meeting dates are proposed for the Rental Housing Committee to convene from May to July 2017:

OVERVIEW OF THE CSFRA:

1. Establishes Base Rents and limits annual rent increases on Covered Rental Units and introduces a petition system for individual rent adjustments. 2. Provides tenant protections through Just Cause Eviction regulations.
2. Establishes a Rental Housing Committee to administer and enforce this program.

What Rental Units are covered under the CSFRA:

Exempt:

• Single Family Homes
• Condominiums
• Companion Units
• Duplexes
• Units in hotels, motels, etc. rented out for less than 30 days
• Units in hospitals, medical care facilities, dormitories, etc.
• Government or subsidized rental units

Base Rent

Base Rent is determined as the rent amount in effect on October 19, 2015. If the tenancy started after October 19, 2015 Base Rent is the initial rent amount at the start of the tenancy.

Allowable General Adjustment (“AGA”) of Rent

• The Base Rent can be adjusted on an annual basis with a rent increase as determined by the Rental Housing Committee before June 30 of each year, calculated based on the annual change of the CPI.
• CPI is the Consumer Price Index of all urban consumers, all items, San Francisco, Oakland, San Jose region as published by US Dept. of Labor.
• Landlords may increase the rent with this percentage upon proper written notice to tenants.

Individual Petition Process for Rent Adjustment

Landlords and tenants may petition for an upward or downward rent adjustment in the following cases:
A landlord can file a petition for upward rent adjustment in order to:
*Guarantee a fair return.

A tenant can file a petition for downward rent adjustment in the following instances:

• A failure to maintain the rental premises in habitable condition
• A decrease in housing services or maintenance
• Rent in excess of lawful rent as authorized by CSFRA

Banking

Banking of allowable rent increases is allowed to a maximum of 10% annual increase.

Vacancy Decontrol

The initial rent for new tenants may be set at market rate.

Just Cause Evictions

Termination notices are only permitted for one of the following nine reasons: 1. Failure to pay rent; 2. Breach of lease; 3. Nuisance; 4. Criminal activities; 5. Failure to give access; 6. Temporary vacancy due to necessary/substantial repairs; 7. Owner move-in; 8. Withdrawal of units from rental market or 9. Demolition.

A new “Written Notice to Cease” is introduced for causes 2-5 to give tenants the opportunity to cure any alleged violation or problem, prior to service of a Notice of Termination.

For temporary vacancies due to necessary repairs, owner move-in, withdrawal of units from the rental market and demolition, tenants are eligible for tenant relocation assistance if their household income does not exceed 120% median household income for Santa Clara County as adjusted for household size according to the United States Department of Housing and Urban Development. Tenants who are evicted for these particular reasons also have a right of first return if their unit is returned to market by current or successor landlord.

Rental Housing Committee

The CSFRA establishes a Rental Housing Committee consisting of 5 members and one alternate member.
The Rental Housing Committee’s duties include:

• Set rent at fair and equitable levels
• Establish Rules and Regulations
• Determine Annual General Rent Adjustment
• Appoint Hearing Officers
• Establish Budget for CSFRA implementation
• Hold Public Hearings
• Conduct studies, surveys, investigations, hearings
• Report periodically to City Council
• Publicize Program
• Establish schedule of Penalties
• Pursue Civil Remedies with City Council approval
• Intervene in Litigation with City Council approval
• Administer withdrawal process for removal of rental units

The CSFRA leaves room for interpretation. The Rental Housing Committee is tasked with setting policy in such cases. Examples are:

• The applicability of the CSFRA for e.g. mobile homes, multiple duplexes and cottages on one parcel, partly rebuilt multi-family apartment complexes.
• What is the relationship between the RHC, the City, CAO and Staff?

CONSIDERATION OF A PUBLIC INPUT PROCESS OF RULEMAKING

Over the next several months, the RHC will be considering and adopting rules and regulations to implement the CSFRA. The RHC will want to consider the input of theparties impacted by the regulations as part of its rule making process. The regulations will vary in terms of complexity and perhaps even interest to the public. The RHC can consider a number of options to solicit public input:

1. A public input opportunity is provided at each of the scheduled RHC meetings on each of the agenda items. This is the public input that is provided in accordance with the Brown Act.
2. Establish separate stakeholder meetings for certain high profile agenda items, before discussing them in a Committee meeting, so the outcome of these stakeholder meetings can be summarized by staff and incorporated into the staff report for the agenda item.
3. Establish a review and comment process whereby a particular proposed regulation is introduced in one committee meeting, time is allowed for written comments on the proposed regulation following the meeting and the Committee can consider the comments and the regulation at its next meeting.

REQUESTED DIRECTION:

Staff seeks direction from the Committee regarding its preferred public input process.

Last updated on 7/1/2017