HomeMy WebLinkAboutStaff Report 13965
City of Palo Alto (ID # 13965)
City Council Staff Report
Report Type: Action Items Meeting Date: 1/31/2022
City of Palo Alto Page 1
Summary Title: Renter Relocation Assistance Ordinance
Title: PUBLIC HEARING: Adoption of an Emergency Ordinance and Regular
Ordinance Amending Palo Alto Municipal Code Section 9.68 (Relocation
Assistance for No-Fault Evictions) by Reducing the Threshold for Applicability
from 50 Units to 10 Units or a Lower Threshold. Environmental Assessment:
Exempt pursuant to CEQA Guidelines Section 15061(b)(3).
From: City Manager
Lead Department: Planning and Development Services
Recommendation:
Staff recommends that Council:
1. Adopt the emergency ordinance lowering the threshold for relocation assistance from
50 units per property to 10 units per property for qualifying tenants as defined in the
municipal code, or
2. Adopt the permanent ordinance lowering the threshold for relocation assistance from
50 units per property to 10 units per property for qualifying tenants as defined in the
municipal code.
Background/Discussion:
On November 29, 2021, the City Council discussed renter protection policies and directed staff
to advance several policies. Three policies were identified as high priority assignments,
including extending relocation assistance to qualifying renters in multifamily buildings with 10
or more units. The City’s current rules require landlords to provide relocation assistance to
tenants within buildings with 50 or more units with additional benefits to qualifying low income
households, seniors, disabled and minor tenants. Enforcement of this provision, if necessary, is
initiated by the aggrieved tenant through civil proceedings; the City is not involved in
enforcement.
The Council’s specific motion related relocation assistance benefits is provided below:
City of Palo Alto Page 2
Bring back to Council an amendment to expand our relocation ordinance to buildings of
10 units or more per property.
On January 26th, the Planning and Transportation Commission is scheduled to consider the
relocation ordinance. This hearing was scheduled to be responsive to the Council’s interest to
prioritize this work and to provide opportunities for public engagement in advance of the
Council hearing. Since this item was agendized, staff learned of an eviction proceeding
underway for some residential properties located on Layne Court. Three of these properties
have six or seven units; a fourth property has 28 units. It is unclear how may units are affected
by the eviction.
Given the Council’s interest to expand renter protection policies generally and relocation
assistance benefits specifically, staff is advancing this ordinance for Council’s consideration
concurrent with the PTC’s review.1 Two ordinances are attached to this report, an emergency
ordinance, which takes effect immediately, and a permanent ordinance which would become
effective on the 31st day following a second reading, or sometime in mid-March. The urgency
ordinance requires a four-fifths super-majority vote of the Council members present for the
hearing. A simple majority is required for adoption of the regular ordinance.
The PTC staff report provides more background information and context supporting the subject
ordinance and is available online: https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/planning-and-transportation-commission/2022/ptc-
01.26.2022-tenant.pdf.
Summary of Key Issues:
The attached ordinance advances the City Council’s expressed policy direction from November
29, 2022.
Policy Implications:
Adoption of the ordinace would change the threshold when relocation assistance is required for
qualifying tenants from 50 units per proprety to 10 units; or other threshold as determined by
Council. This ordinance does not prevent evictions.
Resource Impact:
The recommendation in this report has no budget or fiscal impacts.
1 Staff will update the Council on the PTC’s deliberation and recommendation during its staff presentation before
Council or through an at-places memorandum, if appropriate.
City of Palo Alto Page 3
Timeline:
The urgency ordinance if adopted would become effective immediately. The permanent
ordinance would become effective on the 31st day following second reading, if adopted.
Stakeholder Engagement:
The PTC is scheduled to have a hearing on the ordinance on January 28; staff will update the
City Council on the public testimony received and any PTC recommendation from the meeting.
Notice of this hearing was published ten days in advance in the Daily Post.
Environmental Review:
The subject ordinances are exempt from the California Environmental Quality Act (CEQA) in
accordance with CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty
that a requirement for tenant relocation assistance will not have a significant effect on the
physical environment.
Attachments:
Attachment A - Emergency Ordinance Amending Ch 9.68 to Extend Relocation Assistance
Requirements (PDF)
Attachment B - Ordinance Amending Ch 9.68 of PAMC to Extend Relocation Assistance
Requirements (PDF)
*NOT YET APPROVED*
0160064_20220120_ay16 1
Ordinance No. _____
Emergency Ordinance of the Council of the City of Palo Alto Amending Chapter
9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety)
of the Palo Alto Municipal Code to Extend Relocation Assistant Requirements
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. Renters occupy 45% of the housing units in Palo Alto and 37% are rent burdened,
particularly those households in which the household would be considered low income
under Santa Clara County’s area median income.
B. Tenants evicted in Palo Alto are forced to incur substantial costs related to new housing
including, but not limited to, move-in costs, moving costs, new utility hook-ups,
payments for temporary housing, and lost work time seeking housing.
C. Move-in costs commonly include first and last month's rent plus a security deposit equal
to one month's rent, leading to total relocation expenses in excess of three months'
rent.
D. Tenants who do not have adequate funds to move and who are forced to move
pursuant to no-fault eviction notice face displacement and great hardship
E. The impacts of these no-fault evictions are particularly significant on low-income,
elderly, and disabled tenants, and tenants with minor children, justifying an additional
payment for households with these tenants.
F. These impacts are further exacerbated by the effects of the ongoing COVID-19
pandemic. Accordingly, early in the COVID-19 pandemic, federal, state, and local
governments adopted a variety of temporary moratoria on evictions. These moratoria
have largely expired.
G. City staff have recently become aware of a series of planned no-fault evictions in rental
properties containing fewer than 50 units.
H. On November 29, 2021, the City Council held a public meeting to discuss a variety of
renter protection measures and directed staff to lower the number of units in the
previous tenant relocation assistance ordinance from properties with 50 units or more to
properties with ten units or more.
*NOT YET APPROVED*
0160064_20220120_ay16 2
I. On January 26, 2022, the Planning and Transportation Commission considered the
ordinance and recommended adoption to the City Council.
J. The Council declares that this emergency ordinance, which is effective immediately, is
necessary as an emergency measure to preserve the public peace, health, or safety, by
expanding the protections of tenant relocation assistance for no-fault evictions to more
renters in Palo Alto, including those renters facing an imminent threat of eviction.
SECTION 2. Section 9.68.035 (Relocation Assistance for No Fault Eviction) of Chapter
9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals and Safety) of the Palo Alto
Municipal Code is amended as follows (strikethrough text is deleted, underlined text is added):
9.68.035 Relocation Assistance for No Fault Eviction.
a) This section shall be applicable only to structures or lots containing 50 10 or more rental
units.
b) For the purposes of this section, a "no-fault eviction" means an action by a landlord to
recover possession of a rental unit for any reason other than the following:
1. The tenant has failed to pay rent to which the landlord is legally entitled.
2. The tenant has violated a lawful obligation or covenant of the tenancy.
3. The tenant has refused the landlord reasonable access to the unit for the purposes
of making repairs or improvements, for any reasonable purpose as permitted by
law, or for the purpose of showing the rental unit to any prospective purchaser or
tenant.
4. The tenant is permitting a nuisance to exist in, or is causing damage to, the rental
unit.
5. The tenant is using or permitting a rental unit to be used for any illegal purpose.
6. The landlord seeks in good faith to recover possession of the rental unit in order
to comply with regulations relating to the qualifications of tenancy established by
a governmental entity, where the tenant is no longer qualified.
No fault evictions shall include, without limitation, actions in which the landlord
seeks in good faith to recover possession of the rental unit:
7. To demolish or otherwise permanently withdraw the rental unit from offer for
rent or lease pursuant to California Government Code sections 7060-7060.7.
8. To perform work on the building or buildings housing the rental unit that will
render the rentable unit uninhabitable;
9. For use and occupancy by the landlord or the landlord's spouse, grandparents,
brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law,
children, or parents provided the landlord is a natural person.
10. For no specified cause.
c) Whenever a landlord seeks a no-fault eviction, as defined in this section, other than
temporary displacement of 31 days or fewer, the landlord shall provide a relocation
assistance payment as follows:
*NOT YET APPROVED*
0160064_20220120_ay16 3
1. Unit Type Amount
0 bedrooms $7,000
1 bedroom $9,000
2 bedrooms $13,000
3 or more bedrooms $17,000
If the rental unit is occupied by two or more tenants, the landlord shall provide
each tenant with a proportional share of the required payment. One half of the
payment shall be paid at the time that the landlord provides notice of its intent to
seek no-fault eviction; the remainder of the payment shall be paid to each tenant
when that tenant vacates the unit.
2. Notwithstanding subsection (d c)(1), each rental unit that, at the time the landlord
provides notice of its intent to seek no-fault eviction, is occupied by a low-income
household as defined in Chapter 16.65, a tenant who is 60 years of age or older, a
tenant who is disabled within the meaning of Government Code section 12955.3,
or a tenant who is a minor, shall be entitled to a single additional relocation
payment of $3,000. This amount shall be divided equally among the qualifying (i.e.
low-income, elderly, disabled, or minor) tenants. In order to receive this additional
payment a qualifying tenant must provide written notice to the landlord of his or
her eligibility along with supporting evidence within 15 days of receiving the
landlord's notice. The entirety of this additional payment shall be paid within 15
days of the tenant's written notice to the landlord.
d) Prior to or at the same time that the landlord provides notice of its intent to seek no-fault
eviction, the landlord shall serve on the tenant a written notice describing the rights
described in this section. The failure to provide this notice shall not operate as a
substantive defense to an eviction pursuant to California Government Code sections
7060-7060.7.
e) Commencing July 1, 2019, the relocation payments specified in this section shall increase
annually at the rate of increase in the "rent of primary residence" expenditure category
of the Consumer Price Index (CPI) for all urban consumers in the San Francisco-Oakland-
San Jose Region for the preceding calendar year. Current rates shall be published on the
city's website.
f) A landlord may request a waiver or adjustment of the relocation assistance payment
required by this section only upon a showing that strict application of its requirements
would effectuate an unconstitutional taking of property or otherwise have an
unconstitutional application to the property. Requests for waiver or adjustment must be
submitted in writing to the director of planning and development services together with
supporting documentation at least 90 days before the proposed termination of tenancy.
Requests shall be acted on by the city council.
g) The director of planning and development services may issue regulations implementing
this section.
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
*NOT YET APPROVED*
0160064_20220120_ay16 4
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.
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 possibility that the ordinance
will have a significant effect on the environment.
SECTION 5. Pursuant to Palo Alto Municipal Code Section 2.04.270, this ordinance shall
be effective immediately upon adoption if passed by a vote of four-fifths of the council members
present. It is the intent of the City Council that this ordinance shall apply to any no-fault eviction
that is not yet completed on the effective date of the ordinance. In the event this ordinance
becomes effective after an initial notice of no-fault eviction is sent, the landlord shall provide a
written notice of rights, pursuant to PAMC Section 9.68.035, subdivision (d), as soon as
practicable. The notice required from a tenant to the landlord pursuant to PAMC Section
9.68.035, subdivision (c)(2) shall be due no sooner than fifteen days following the landlord’s
notice of rights.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
*NOT YET APPROVED*
0160065_20220120_ay16 1
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 9.68
(Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety) of
the Palo Alto Municipal Code to Extend Relocation Assistant Requirements
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. Renters occupy 45% of the housing units in Palo Alto and 37% are rent burdened,
particularly those households in which the household would be considered low income
under Santa Clara County’s area median income.
B. Tenants evicted in Palo Alto are forced to incur substantial costs related to new housing
including, but not limited to, move-in costs, moving costs, new utility hook-ups,
payments for temporary housing, and lost work time seeking housing.
C. Move-in costs commonly include first and last month's rent plus a security deposit equal
to one month's rent, leading to total relocation expenses in excess of three months'
rent.
D. Tenants who do not have adequate funds to move and who are forced to move
pursuant to no-fault eviction notice face displacement and great hardship
E. The impacts of these no-fault evictions are particularly significant on low-income,
elderly, and disabled tenants, and tenants with minor children, justifying an additional
payment for households with these tenants.
F. On November 29, 2021, the City Council held a public meeting to discuss a variety of
renter protection measures and directed staff to lower the number of units in the
previous tenant relocation assistance ordinance from properties with 50 units or more to
properties with ten units or more.
G. On January 26, 2022, the Planning and Transportation Commission considered the
ordinance and recommended adoption to the City Council.
SECTION 2. Section 9.68.035 (Relocation Assistance for No Fault Eviction) of Chapter
9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals and Safety) of the Palo Alto
Municipal Code is amended as follows (strikethrough text is deleted, underlined text is added):
*NOT YET APPROVED*
0160065_20220120_ay16 2
9.68.035 Relocation Assistance for No Fault Eviction.
a) This section shall be applicable only to structures or lots containing 50 10 or more rental
units.
b) For the purposes of this section, a "no-fault eviction" means an action by a landlord to
recover possession of a rental unit for any reason other than the following:
1. The tenant has failed to pay rent to which the landlord is legally entitled.
2. The tenant has violated a lawful obligation or covenant of the tenancy.
3. The tenant has refused the landlord reasonable access to the unit for the purposes
of making repairs or improvements, for any reasonable purpose as permitted by
law, or for the purpose of showing the rental unit to any prospective purchaser or
tenant.
4. The tenant is permitting a nuisance to exist in, or is causing damage to, the rental
unit.
5. The tenant is using or permitting a rental unit to be used for any illegal purpose.
6. The landlord seeks in good faith to recover possession of the rental unit in order
to comply with regulations relating to the qualifications of tenancy established by
a governmental entity, where the tenant is no longer qualified.
No fault evictions shall include, without limitation, actions in which the landlord
seeks in good faith to recover possession of the rental unit:
7. To demolish or otherwise permanently withdraw the rental unit from offer for
rent or lease pursuant to California Government Code sections 7060-7060.7.
8. To perform work on the building or buildings housing the rental unit that will
render the rentable unit uninhabitable;
9. For use and occupancy by the landlord or the landlord's spouse, grandparents,
brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law,
children, or parents provided the landlord is a natural person.
10. For no specified cause.
c) Whenever a landlord seeks a no-fault eviction, as defined in this section, other than
temporary displacement of 31 days or fewer, the landlord shall provide a relocation
assistance payment as follows:
1. Unit Type Amount
0 bedrooms $7,000
1 bedroom $9,000
2 bedrooms $13,000
3 or more bedrooms $17,000
If the rental unit is occupied by two or more tenants, the landlord shall provide
each tenant with a proportional share of the required payment. One half of the
payment shall be paid at the time that the landlord provides notice of its intent to
seek no-fault eviction; the remainder of the payment shall be paid to each tenant
when that tenant vacates the unit.
2. Notwithstanding subsection (d c)(1), each rental unit that, at the time the landlord
provides notice of its intent to seek no-fault eviction, is occupied by a low-income
household as defined in Chapter 16.65, a tenant who is 60 years of age or older, a
*NOT YET APPROVED*
0160065_20220120_ay16 3
tenant who is disabled within the meaning of Government Code section 12955.3,
or a tenant who is a minor, shall be entitled to a single additional relocation
payment of $3,000. This amount shall be divided equally among the qualifying (i.e.
low-income, elderly, disabled, or minor) tenants. In order to receive this additional
payment a qualifying tenant must provide written notice to the landlord of his or
her eligibility along with supporting evidence within 15 days of receiving the
landlord's notice. The entirety of this additional payment shall be paid within 15
days of the tenant's written notice to the landlord.
d) Prior to or at the same time that the landlord provides notice of its intent to seek no-fault
eviction, the landlord shall serve on the tenant a written notice describing the rights
described in this section. The failure to provide this notice shall not operate as a
substantive defense to an eviction pursuant to California Government Code sections
7060-7060.7.
e) Commencing July 1, 2019, the relocation payments specified in this section shall increase
annually at the rate of increase in the "rent of primary residence" expenditure category
of the Consumer Price Index (CPI) for all urban consumers in the San Francisco-Oakland-
San Jose Region for the preceding calendar year. Current rates shall be published on the
city's website.
f) A landlord may request a waiver or adjustment of the relocation assistance payment
required by this section only upon a showing that strict application of its requirements
would effectuate an unconstitutional taking of property or otherwise have an
unconstitutional application to the property. Requests for waiver or adjustment must be
submitted in writing to the director of planning and development services together with
supporting documentation at least 90 days before the proposed termination of tenancy.
Requests shall be acted on by the city council.
g) The director of planning and development services may issue regulations implementing
this section.
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.
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 possibility that the ordinance
will have a significant effect on the environment.
SECTION 5. This ordinance shall be effective on the thirty-first day following its
adoption. It is the intent of the City Council that this ordinance shall apply to any no-fault eviction
that is not yet completed on the effective date of the ordinance. In the event this ordinance
becomes effective after an initial notice of no-fault eviction is sent, the landlord shall provide a
*NOT YET APPROVED*
0160065_20220120_ay16 4
written notice of rights, pursuant to PAMC Section 9.68.035, subdivision (d), as soon as
practicable. The notice required from a tenant to the landlord pursuant to PAMC Section
9.68.035, subdivision (c)(2) shall be due no sooner than fifteen days following the landlord’s
notice of rights.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services