HomeMy WebLinkAboutStaff Report 10879
City of Palo Alto (ID # 10879)
City Council Staff Report
Report Type: Action Items Meeting Date: 12/2/2019
City of Palo Alto Page 1
Summary Title: Colleagues' Memo Regarding Urgency Ordinance Regarding
Renter Protections
Title: Colleagues' Memo From Council Members Kou and DuBois and
Potential Adoption of an Urgency Ordinance to Provide Just Cause Eviction
Protections to Tenants Until California State Assembly Bill 1482 Takes Effect
on January 1, 2020 (Continued From November 18, 2019)
From: City Manager
Lead Department: City Clerk
Goals
To temporarily prohibit no-fault evictions through December 31, 2019, for all residential
real property that will be covered by Assembly Bill 1482 beginning on January 1, 2020.
Background and Discussion:
Assembly Bill 1482, the Tenant Protections Act of 2019, was signed by Governor
Newsom on October 8, 2019. Escalating real estate values with the assistance of the
deregulation of zoning provides an incentive to landlords to evict long -term, lower-
income tenants, in order to raise rents and attract wealthier tenants, reducing the local
diversity socio-economic of Palo Alto’s population. It has been reported, since the
anticipation of the Tenant Protection Act of 2019 legislation, there has been an
escalation of harassment by landlords in order to encourage tenants to move out
voluntarily. However, since the Governor’s signing of the legislation, there is a surge of
calls and inquiries from community advocates and tenants facing steep rent increases,
some as much as 30% rent increase and facing evictions, also facing increases in costs
of parking, lock services and other bundled amenities. While landlords may properly
evict tenants for cause under the provision of state law, landlords should not be able to
evict tenants in good standing without cause simply to avoid the limitation on rent-
gouging afforded to renters under the new law. Hence, it is imperat ive for the City of
Palo Alto to issue an emergency ordinance to keep people housed and provide a sense
of stability.
Proposal
Request the City Attorney to report on:
City of Palo Alto Page 2
1. An emergency ordinance implementing a temporary moratorium on no-fault evictions
for rental units built prior to January 1, 2012, effective through December 31, 2019.
2. The use State of California price gouging laws to prevent prohibitive rent increases
before Assembly Bill 1482 takes effect on January 1, 2020.
3. This emergency ordinance shall apply to tenancies where the tenant remains in
possession and the eviction lawsuit has not been adjudicated.
Direct City Manager staff to:
1. Inform Palo Alto rental residents of legal resources to help them address any
disputes with their landlords.
2. Inform property owners and landlords of rental property of their obligations under
Assembly Bill 1482 and any locally-established ordinances.
Resource Impact
Due to the short timeframe to adopt tenant protections (through January 1, 2020),
existing resources in the City Manager’s Office, City Attorney’s Office and Planning and
Development Services are being redirected to draft an ordinance for the Council’s
consideration on November 18th. Also due to the short timeframe, any outreach on a
potential urgency ordinance will be limited to electronic (email and social media)
distribution methods.
If the Council adopts an ordinance, some staff resources will be needed for public
outreach and education regarding the rights and responsibilities of la ndlords and
tenants, responding to public inquiries, and making referrals. Tenant protections are
enforced by tenants in private litigation with their landlords. The City does not
investigate alleged violations or adjudicate tenant-landlord disputes. This is true for
protections provided by a temporary City ordinance (before January 1st) as well as by
AB 1482 (after January 1st). The City provides voluntary mediation services through
Project Sentinel and can refer tenants to other resources, such as non-profit legal
services agencies.
Appendices:
Report by City of Los Angeles City Attorney http://clkrep.lacity.org/onlinedocs/2019/19-
1232_misc_10-22-2019.pdf
City of Los Angeles Draft Ordinance http://clkrep.lacity.org/onlinedocs/2019/19-
1232_ord_draft_10-22-2019.pdf
City of Los Angeles Final Ordinance http://clkrep.lacity.org/onlinedocs/2019/19-
1232_ORD_186340_10-24-2019.pdf
City of Redwood City Draft Ordinance
https://meetings.redwoodcity.org/AgendaOnline/Documents/ViewDocument/ATTACHME
NT%20B%20-
%20URGENCY%20ORDINANCE.pdf?meetingId=2048&documentType=Agenda&itemId
=2741&publishId=4267&isSection=false
Attachments:
• Attachment A: Urgency Ordinance
Not Yet Approved
Ordinance No. _____
Urgency Ordinance of the Council of the City of Palo Alto
Temporarily Prohibiting Evictions without Just Cause through
December 31, 2019, for Residential Real Property Built Prior to
January 1, 2005
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. The “Tenant Protection Act of 2019” (Assembly Bill [“AB”] 1482) was
approved by the California Legislature on September 11, 2019 and signed by the
Governor on October 8, 2019; and
B. Effective January 1, 2020 the Tenant Protection Act of 2019 codified
as California Civil Code sections 1946.2 (Just Cause Eviction) and 1947.12 (Rent Caps)
will provide eviction protections and limits on rent increases in the State of California; and
C. The City Council, pursuant to its police powers, has broad authority to
maintain public peace, health, and safety of its community and preserving the quality of
life for its residents; and
D. Housing instability threatens the public peace, health, and safety 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
E. Eviction creates particular hardships for individuals an d households
of limited means, given the shortage of housing, particularly affordable housing, within
the City of Palo Alto and the San Francisco Bay Area region generally; and
F. 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 increases that would not otherwise be possible
after the effective date; and
G. The City desires to prohibit evictions without just cause during this transition period; and
H. The City Council finds and determines that regulating the relations between
residential landlords and tenants will increase certainty and fairness within the residential
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rental market in the City and thereby serve the public peace, health, and safety; and
I. Palo Alto Municipal Code Section 2.04.270 authorizes the adoption of an urgency
ordinance to protect the public peace, health or safety, where there is a declaration of the facts
constituting the urgency and the ordinance is adopted by four-fifths of Council Members present;
and
J. This urgency ordinance would essentially establish the just cause eviction protections that
will go into effect on January 1, 2020 under AB 1482 immediately within the City of Palo Alto; and
K. An urgency ordinance that is effective immediately is necessary to avoid the immediate
threat to public peace, health, and safety as failure to adopt this urgency ordinance could result
in the displacement of the City’s residents and community members.
SECTION 2. Just Cause Eviction Protections.
This urgency ordinance shall be known as the “Just Cause Eviction Protection Ordinance.”
(a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a
residential real property for 12 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.
(b) For purposes of this Ordinance, 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 (3) of
Section 1161 of the 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 (4) of Section 1161 of the Code of Civil
Procedure.
(D) Committing waste as described in paragraph (4) of Section 1161 of the Code
of Civil Procedure.
(E) 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 Penal Code, on or off the residential real
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property, that is directed at any owner or agent of the owner of the residential
real property.
(F) Assigning or subletting the premises in violation of the tenant’s lease, as
described in paragraph (4) of Section 1161 of the Code of Civil Procedure .
(G) The tenant’s refusal to allow the owner to enter the residential real property
as authorized by Sections 1101.5 and 1954 of the Civil Code, and Sections
13113.7 and 17926.1 of the Health and Safety Code.
(H) Using the premises for an unlawful purpose as described in paragraph (4) of
Section 1161 of the Code of Civil Procedure.
(I) The employee, agent, or licensee’s failure to vacate after their termination as
an employee, agent, or a licensee as described in paragraph (1) of Section 1161
of the Code of Civil Procedure.
(J) When the tenant fails to deliver possession of the residential real property
after providing the owner written notice as provided in Section 1946 of the
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 in that written
notice as described in paragraph (5) of Section 1161 of the 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) The owner complying with 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.
(D) Intent to demolish or substantially remodel the residential real property. For
purposes of this subparagraph, “substantially remodel” means the
replacement or substantial modification of any structural, electrical, plumbing,
or mechanical system that requires a permit from a governmental agency, or
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20191121 th 0140204 4
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
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.
(E) 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 w ith an opportunity to cure the violation
pursuant to paragraph (3) of Section 1161 of the Code of Civil Procedure. If the
violation is not cured within the time period set forth in the notice, a three -
day notice to quit without an opportunity to cure may thereafter be served to
terminate the tenancy.
(c) 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 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 Health and Safety Code, or an adult residential facility, as defined in
Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures
published by the State Department of Social Services.
3. Dormitories owned and operated by an institution of higher education or a
kindergarten and grades 1 to 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 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 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
in occupancy.
7. Housing that has been issued a certificate of occupancy within the previous 15
years.
8. Residential real property that is alienable separate from the title to any other
dwelling unit, provided that the owner is not any of the following:
(A) A real estate investment trust, as defined in Section 856 of the Internal
Revenue Code.
(B) A corporation.
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(C) A limited liability company in which at least one member is a corporation.
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, or moderate income, as defined in Section 50093
of the 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 Health and Safety Code or
comparable federal statutes.
(d) Any waiver of the rights under this section shall be void as contrary to public policy.
(e) For the purposes of this Ordinance, the following definitions shall apply:
1. “Owner” and “residential real property” have the same meaning as those terms
are defined in Civil Code Section 1954.51.
2. “Tenancy” means the lawful occupation of residential real property and includes
a lease or sublease.
(f) Applicability. This Ordinance shall apply to tenancies where the tenant remains in
possession of the residential real property and an eviction lawsuit, if any, has not been
finally adjudicated.
(g) Statement of Urgency. The City Council finds and declares that this Ordinance is required
for the immediate protection of the public peace, health and safety as failure to adopt
this urgency ordinance could result in irreversible displacement of residents resulting
from no-fault evictions during the period before AB1482 becomes effective. The Council,
therefore, adopts this Ordinance to become effective immediately upon adoption.
(h) Enforcement. An owner's failure to comply with any requirement of this Ordinance shall
render any notice of termination of tenancy void. A tenant may assert this Ordinance as
a complete affirmative defense in an unlawful detainer or other action brought b y the
owner to recover possession of the residential real property. A tenant may bring a civil
suit in the courts of the state alleging that an owner has violated any of the provisions of
this ordinance. An owner’s failure to comply with this Ordinance does not constitute a
criminal offense.
SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason
held to be invalid, such decision shall not affect the validity of the remaining portion or sections
of the Ordinance. The 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.
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SECTION 4. The Council finds that this project is exempt from the provisions of the
California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA
Guidelines, because it can be seen with certainty that there is no possib ility that the ordinance
will have a significant effect on the environment.
SECTION 5. This ordinance shall be effective immediately upon adoption and shall remain
in effect until December 31, 2019. On January 1, 2020, this ordinance shall be repealed and shall
be of no further force and effect.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
City Attorney City Manager
____________________________
Director of Administrative Services