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Home My WebLink AboutORD 3252'/ e ORDINANCE NO. ~-- ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADDING ~HAPTER 9.68 TO THE PALO ALTO MUNICIPAL CODE REQUIRlNG LANDLORDS TO OFFER ONE YEAR WRITTEN LEASES TO POTENTIAL TENANTS OF RESIDENTIAL HOUSING The :~un~il oi the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 9.68 is hereby added to the Palo Alto MunicipalCode to read as foLlows: Sections: 9.68.010 9.68.020 9.68.030 .,CHAPTER 9.68 RENTAL HOUSING STABILIZATION Purpose. Definitions. Requi~ement of offe~ing one-year ~, r~ i t t e n ~!. e a s e s , 9.68.040 Tenanl!s remedies. q • 6 8 . 0 S 0 ~i o n -~'i a i v e r • 9.68.060 ScveJ:abil\t.y. 9.68.010 Puroose. It is found and declared that there i:::; ___ ........_____ __ a 9·co1't'ing shon.age of, but ~ncreasing demand for, housing in the Ci.ty of Palo Alt\), Such shortaqe ann inct"eased dema.ndr coLlpled with increas.intJ infli.1Lionf have placed substantial pressure on those res.ider.::s of P(do Altc· se<?ti.i.nq rental housing. This Council finds that tenants ~re entitled to a contractual rela tionship with a landlord that off~rs some aBsurance of staLility under the tf""':ms o.f a written lease so as to minimize displace ment of te:1a1ts into a rental housing market which affords them few and ~xpc~sive options. 9.68.020 Definitions. (a) Landlord. A landlord is an owner, lessor, or subles sor, o~ the agent~ re~~esentative, or successor of any of the foregoing persons who receives, or is entitled to receive, rent for the use and occupancy of any rental unit or portion there of. (b) Rent. Rent is the consideration, including any bonus, benefit, or gratuity demanded or received by a landlord for or in connection with the use or occupancy of a rental unit. (c) Rent increase. A rent increase is any additional rent demanded of or paid by a tenant for a rental unit. (d) Rental unit. A renta~ unit is a dwelling unit in the City of Palo Alto with the land and appurtenant buildings there to and all housing services, privileges, and facilities supplied in connection with the use or occupancy thereof, which un~t is in a multiple-family dwelling, boarding house, lodging house, or mobilehome ~ark. The term ~rental unit~ shall not include: (1) a single famlJ~.; un.it; (2) rooms or accommodations in botelsr boarding houses, or lodging houses wl1ich are rented to transient guests for a pF.riod of less than 30 days~ (3) dwelling units in nonprofit cooperatives, or the like, owned, occupied and con- ' • trolied by <.1 majority of the residents; (4) dwelling units in which housinq accommodations ~re shared by landlord and tenant; (5) housing accommodations in any hospital, extended care ~~cil ity, asylum, nonprofit home for the ~ge~t or in dormitories own ed and operated by an jnstitution of higher education, a high school or an elementary school; (6} housing accommodations re?nt ed by a medical institution which are then subleased to a pa tient or a patient's family; or (7} dwelling units whose rents a~e conttnlled or regulated, other than by the provisions of this chapter, by any government unit, agency, o~ authority, or whose rent is subsidized by any government unit, agency, or ai..lthority. (e) Tenant. A tenant is a person or persons entitled by written or oral agreement to o~cupy a rental unit to the exclu ~.;ion of others.. ( -l J .:_: f h:: ·c • I t a v n) .spec t i v e t r? n d n t ;.,>ish e s to r e :1 t. a t· en t.- .Jl unit-_ ftc•n a l.1:1d\nr:d -:nHl i.f :=.>cii.d landlord wishes t:.) rent said rental unit -:-_c.1 ~-=·~1-',d r:cospcctive tenant, the landlo:r:d must offer to tr.e pro~:.;pecti.ve tenant a writte:l lease which hi'l.s a miniroum term of 0'1<-' year·. Such offer must be made in w:citing, Signing a l e :-.1 s e ·..,· r1 i c h h a s ;1 ~d. n irr u m t e r m o f one y e a r s h a 11 be con s i de red an offer in writina. (b) Accepts.nce. If the pro~>pective tenant accepts the •.)ffel: of 2-;.,rritt.en lca~:;c ·,.,·hich has a minimum ter:m of one yearr thi~:; acceptance !::ust be in wrlting. Signin~~ a lease which has a minimum term of one year will be considered an acceptance. (c} Rejection. If the pr·ospective tenant rejects the offe~ for ~ written lease which l!as a minimum term of one year, this rejection rnusL be in writing, and the landlord and prospec tive tenant may then enter into an agreement, oral or written, that provides for a rental term of less than one year. (d} Rent. If the landlord and tenant enter into a written lease which has a minimum term of one year, such lease must set the rent for the rental unit at a rate or rates certain and these rates shall not be otherwise modified during the term of such lease. If the landlord intends to increase the rent for the rental unit at the end of the lease period, notice of such rent increase shall be delivered to the tenant 60 days befor:e such rent increase is to take effect. Increases in rent after the first year lease period may be implemented in accordance with the lease terms or with such other notice as may be requir ed by the laws of the State of California. (e) Applicability of Section 9.68.030. This section 9.68.030 shall not apply to: (1) An owner-occupied unit that is rented to a tenant for less than one year; or {2) A rental unit occupied by a tenant who subleases that unit to another tenant for less than one year; or -2- • ' (3) A unit which is r-ented on the ef.fPctive date of this ordinance; provided that (a) if the unit is rented subject to a written lease, when the lease in effect for such a unit ex pires, this ordinance shall then apply~ and (b) if the unit is rented without a written lease, within 30 days after the effec tive date of this section, the landlord shall offer a written lease to the tenant in accordance with Section 9.68.030. (4) A rental unit for which an initial written lease with a minimum ter-m of one year., entered. i.nto in accordance with Section 9.68.030, has expir~d. 9.68.040 Tenant's r~medies. (a} Defense to action to re cover possessio~-fai lure of -:)landlord to comply with any of the provisions of this ordinance shall provide the tenant with a defense in any Legal action brought by the landlord to recover posses!3 ion of t.he t"t;>nta 1 unit. (b) Defense to action to col!.ect rent. Failure of a land lo.rd to comply with r.my <)[ tlw ;;n)\'tsi.ons '!f :..;lis ordinanc<? E: h a 1 l p r o v 1 d e t h f.' t •? n d : \ t 'o' i ~: il ;: o c C ·:~ n :> c: i n li n '/ 1 f' ') a-1 act l on brouqht b)' the La!vll.'J·rd tn c•.Jt1•c'•..:'t rr~nt. ( c ) I n j u n c t i v e r: e 1. i s f , A ten h. :1 t may seek injunctive r e lief on his or her own behaJf 3nd on behalf of other affected tenants to enjoin the land1.or:d 1 :: vi.c·latior-, of t.his ordinance. (d) Remedic::-; arc non.-·cxclu;;).vc. r~~;·r;-:edies provided in this section are in actdition tG .J,ny other e:d.::.:.t.i.nq legal remt~dies and are not intended to be e~clusive. 9.68.050 Non-Waiver. Any waiver or purported wa1ver by a tenant of rights--<]ran'te-I·-~Jndel." this or-dinance pr-ioL" to the time \~1hen such rights may be exercised, except. a rejection of a one year lease offered in accordance with Section 9.6!3.030 1 shall be void as contrary to puhlic policy. 9.68.060 .§.2.Y£_t:abi~i_!y. If any p:rovision. or clause of this chapter or the appl1cat1on thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall r'ot af fect 0ther chapter provisions, and clauses of this chapter are declared to be severable.~ SECTION 2. The Council finds that none of the orovisions of this ord f'nance wi 11 h.:lv€~ a sign if i.cant adverse env i r~nmental impact. SECTION 3. This ordinance shall become effective upon the com mencement of the thirty-first day aft~:r the d·~Y of its passage. INTRODUCED~ November 10, 1980 (Cor.t'd to 12/8 on 11/?.4/80) PASSED: December 8, 1980 AYES: Bechtel, Brenner, F1etcher, Henderson~ Levy, Renzel NOES! Eyerly, Fazzino, ~Jitherspoon ABSTENTIONS: None -3- .. ABSEN'l': None ·~~ -~-~------------ APPROVED: -4-