HomeMy WebLinkAboutStaff Report 2306-162327.SECOND READING: Adoption of an Ordinance Amending Section Palo Alto Municipal
Code Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At-Fault and
No-Fault Just Cause for Evictions, Extend Just Cause Eviction Protections and Tenant
Relocation Assistance to More Rental Units in Palo Alto than Offered by State Law, and
Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto. Environmental
Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRST READING: June
5, 2023 PASSED 6-1)
City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: June 19, 2023
Report #:2306-1623
TITLE
SECOND READING: Adoption of an Ordinance Amending Section Palo Alto Municipal Code
Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At-Fault and No-Fault
Just Cause for Evictions, Extend Just Cause Eviction Protections and Tenant Relocation
Assistance to More Rental Units in Palo Alto than Offered by State Law, and Adopt a Security
Deposit Limit for Unfurnished Rental Units in Palo Alto. Environmental Assessment: Exempt
under CEQA Guidelines Section 15061(b)(3). (FIRST READING: June 5, 2023 PASSED 6-1)
BACKGROUND
This was heard by the City Council on June 5, 2023 for a first reading and approved 6-1, Tanaka
no. It is now before you for a second reading. In preparing the ordinance for a second reading,
staff identified a minor subsection reference typo. This has been corrected in the attached
ordinance.
ATTACHMENTS
Attachment A: Draft Ordinance - Just Cause Eviction and Security Deposit
APPROVED BY:
Mahealani Ah Yun, Interim City Clerk
Not Yet Approved
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 9.68
(Rental Housing Stabilization) to Clarify the Definitions of At-Fault and No-Fault
Just Cause for Evictions, Extend Just Cause Eviction Protections to More Rental
Units in Palo Alto than Offered by State Law, and to Enact a Security Deposit
Limit for Unfurnished Rental Units in Palo Alto
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 represent a significant percentage of Palo Alto’s population;
B. Landlords provide a significant community service by providing rental housing in the City
of Palo Alto;
C. Palo Alto has great diversity in residential rental property and rental unit types, ranging
from single-family homes, accessory and junior accessory dwelling units, to properties
with multi-family apartment buildings containing a variety of rental units;
D. There is a need to ensure that housing is provided for people of all income levels, and
affirmatively further fair housing;
E. The Palo Alto rental market is one of the most expensive in the country, which is one
factor that can lead to potential renters being unable to afford standard rental unit move-
in costs;
F. The Palo Alto rental market is one of the most expensive in the country, which is one
factor that can lead to renters at risk of displacement;
G. The city desires to implement policies for certainty, stability, and fairness in the rental
market for renters and landlords;
H. A significant number of renters in Palo Alto are low -income and cost-burdened;
I. Move-in costs for unfurnished residential rental units commonly include first and last
month's rent plus a security deposit of up to two months’ rent, leading to high initial move
in costs ,
J. The State of California created eviction protections for some rental units in Palo Alto but
not others through the enactment of California Assembly Bill 1482 (2019), which currently
automatically sunsets in 2030,
Not Yet Approved
230607 sm 010 2
K. The city is making significant investments on an ongoing basis regarding rental unit
protection, preservation, and production and will also soon need to implement the 6 th
Cycle Housing Element policies and programs; and
L. On November 29, 2021, the City Council held a public meeting to discuss a variety of
renter protection measures and directed staff to draft a Security Deposit Limit ordinance
that caps the maximum allowed security deposit for unfurnished rental units in Palo Alto
to one and one half times (1.5x) the monthly rent, whereas California Civil Code section
1950.5 allows for the maximum security deposit for unfurnished units to be two times
(2x) the monthly rent,
M. On November 29, 2021, the City Council held a public meeting to discuss a variety of
renter protection measures and directed staff to draft a response to California Assembly
Bill 1482 (2019) by preparing an Eviction Reduction/Just Cause ordinance for Palo Alto to
extend state eviction protections to properties built and receiving occupancy within the
last fifteen (15) years, but does not include rental units occupied less than a year or single
family homes not owned by a corporation or renters who live in a duplex when one unit
is owner occupied,
N. On February 9, 2023, the Human Relations Commission held a public meeting to discuss
the effectiveness of existing renter protections in Palo Alto and recommended that the
City Council adopt the extensions described by the City Council on November 29, 2021 in
addition to several other extensions,
O. The city, while still retaining local definitions in some cases, adjusted the previous Palo
Alto definitions of at-fault and no-fault just cause eviction in order to be consistent with
California Assembly Bill 1482 (2019) for the purposes of consistency, transparency, legal
clarity,
P. The city finds that the Eviction Reduction/Just Cause and Security Deposit Limit ordinance
is not in conflict with and is more protective than California Assembly Bill 1482 (2019) in
regard to the number of rental units receiving eviction protections and relocation
assistance, the limitations on security deposits for unfurnished residential rental units,
and, in some circumstances, in regard to the Tenant Relocation Assistance (TRA) dollar
amount required if a tenant received a no -fault just cause eviction, and because the
ordinance is permanent and does not contain the California Assembly Bill 1482 (2019)
automatic sunset in 2030,
Q. The City Council finds and determines that the Eviction Reduction/Just Cause and Security
Deposit Limit ordinance codified in Palo Alto Municipal Code Chapter 9.68 (Rental
Housing Stabilization) is adopted pursuant to the city’s authority to protect the public
health, safety, and welfare.
SECTION 2. Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals
and Safety) is hereby amended as follows (new text underlined and deletions struck-through):
Not Yet Approved
230607 sm 010 3
9.68.010. Purpose.
(a) It is found and declared that there is a growing shortage of, but increasing
demand for, housing in the city of Palo Alto. Such shortage and increased
demand, coupled with increasing inflation, have placed substantial pressure on
those residents of Palo Alto seeking rental housing. This council finds that
tenantrenters are entitled to a contractual relationship with a landlord that
offers some assurance of stability and fair treatment under the terms of a
written lease so as toto minimize displacement of tenantrenters into a rental
housing market which affords them few and expensive options.
(b) Council further finds that the provisions of California Assembly Bill 1482 (2019),
as codified and later expanded in the Civil Code of the state of California, offers
important protections from instability and displacement to renters. The
provisions of that bill as they relate to eviction reduction are restated and
expanded below, to make the protections permanent in the city of Palo Alto and
extend them to renters living in qualified residential rental units that received a
certificate of occupancy within the last fifteen years.
9.68.020. Definitions.
For purposes of this chapter, the following terms are defined as follows:
(a) “Landlord” means an owner, lessor, or sublessor, or the agent, representative, 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 thereof the owner or
property manager exercising effective control over the terms and conditions of
the tenancy of a residential rental unit, including a person with such control
delegated through a durable power of attorney.
(b) "Rent" means 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 residential rental unit.
(c) "Rent increase" means any additional rent demanded of or paid by a renter for a
residential rental unit.
(d) "Residential rental unit" means any housing structure occupied as a dwelling or
offered for rent or lease as a dwelling, whether attached, detached, single or
multiple-family."Rental unit" means a dwelling unit in the city of Palo Alto with
the land and appurtenant buildings thereto and all housing services, privileges,
and facilities supplied in connection with the use or occupancy thereof, which unit
is in a multiple-family dwelling (including a duplex), boardinghouse, lodginghouse,
or mobilehome park. The term "rental unit" shall not include:
(0) A single-family dwelling;
(0) Rooms or accommodations in hotels, boardinghouses, or lodginghouses
which are rented to transient guests for a period of less than thirty days;
Not Yet Approved
230607 sm 010 4
(0) Dwelling units in a condominium, community apartment, planned
development or stock cooperative as defined in Chapter 21.40, or in a
limited equity stock cooperative as defined in the California Business and
Professions Code;
(0) Dwelling units in which housing accommodations are shared by lan dlord
and tenant;
(0) Housing accommodations in any hospital, extended care facility, asylum,
nonprofit home for the aged, or in dormitories owned and operated by
an institution of higher education, a high school or an elementary school;
(0) Housing accommodations rented by a medical institution which are then
subleased to a patient or patient's family;
(0) Dwelling units whose rents are controlled or regulated by any
government unit, agency, or authority, or whose rent is subsidized by any
government unit, agency, or authority; or
(0) Dwelling units acquired by the city of Palo Alto or any other
governmental unit, agency or authority and intended to be used for a
public purpose.
(m)(e) “Tenant” "Renter" means a person or entity entitled by written or oral
agreement to occupy a residential rental unit to the exclusion of others.
(f) “Just cause” to terminate a tenancy means either of the following:
(1) “At-fault just cause”, which means 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 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 (4) of Section
1161 of the California Code of Civil Procedure.
(D) Committing waste as described in paragraph (4) of Section 1161 of
the California Code of Civil Procedure.
(E) The renter had a written lease that terminated on or after July 20,
2023, and after a written request or demand from the landlord, the
renter has refused to execute a written extension or renewal of the
lease for an additional term of similar duration with similar
provisions, provided that those terms do not violate this chapter or
any other provision of law.
(F) Criminal activity by the renter on the residential rental unit,
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 rental unit, that is directed at
any landlord or agent of the landlord.
Not Yet Approved
230607 sm 010 5
(G) Assigning or subletting the premises in violation of the renter’s
lease, as described in paragraph (4) of Section 1161 of the
California Code of Civil Procedure.
(H) The renter’s refusal to allow the landlord to enter the residential
rental unit as authorized by Sections 1101.5 and 1954 of the
California Civil Code, and Sections 13113.7 and 17926.1 of the
California Health and Safety Code.
(I) Using the premises for an unlawful purpose as described in
paragraph (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 a licensee as described in
paragraph (1) of Section 1161 of the California Code of Civil
Procedure.
(K) When the renter fails to deliver possession of the residential rental
unit after providing the landlord written notice as provided in
Section 1946 of the California Civil Code of the renter’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 California Code of
Civil Procedure.
(2) “No-fault just cause,” which means any of the following:
(A) Intent to occupy the residential rental unit by the landlord or their
sibling, spouse, domestic partner, children, grandchildren, parents,
grandparents, father-in-law, mother-in-law, son-in-law, or
daughter-in-law, provided the landlord is a natural person.
(B) Permanent withdrawal of the residential rental unit from offer for
rent or lease pursuant to California Government Code sections
7060-7060.7.
(C) The landlord complying with any of the following:
(i) An order issued by a government agency or court relating
to habitability that necessitates vacating the residential
rental unit.
(ii) An order issued by a government agency or court to vacate
the residential rental unit.
(iii) A local ordinance that necessitates vacating the residential
rental unit.
(D) Intent to demolish or to substantially remodel the residential rental
unit. “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 the abatement of hazardous materials, including lead-
based paint, mold, or asbestos, in accordance with applicable
Not Yet Approved
230607 sm 010 6
federal, state, and local laws, that cannot be reasonably
accomplished in a safe manner with the renter in place and that
requires the renter to vacate the residential rental unit 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 rental unit vacated, do not
qualify as substantial rehabilitation.
(g) “Security” means any payment, fee, deposit, or charge, including, but not limited
to, any payment, fee, deposit, or charge, except as provided in Section 1950.6 of
the California Civil Code, that is imposed at the beginning of the tenancy to be
used to reimburse the landlord for costs associated with processing a new renter
or that is imposed as an advance payment of rent, used or to be used for any
purpose, including, but not limited to, any of the following:
(1) The compensation of a landlord for a renter’s default in the payment of
rent.
(2) The repair of damages to the premises, exclusive of ordinary wear and
tear, caused by the renter or by a guest or licensee of the renter.
(3) The cleaning of the premises upon termination of the tenancy necessary
to return the unit to the same level of cleanliness it was in at the inception
of the tenancy.
(1)(4) To remedy future defaults by the renter in any obligation under the rental
agreement to restore, replace, or return personal property or
appurtenances, exclusive of ordinary wear and tear, if the security deposit
is authorized to be applied thereto by the rental agreement.
9.68.030. Requirement of offering one-year written leases.
(a) Offer. If a tenant renter or prospective tenant renter wishes to rent a residential
rental unit from a landlord and if said landlord wishes to rent said residential rental
unit to said renter tenant or prospective rentertenant, the landlord must offer to
the renter tenant or prospective renter tenant a written lease which has a
minimum term of one year. Such offer must be made in writing. Signing of a lease
which has a minimum term of one year shall be considered an offer in writing.
(b) Acceptance. If the renter tenant or prospective renter tenant accepts the offer of
a written lease which has a minimum term of one year, this acceptance must be
in writing. Signing a lease which has a minimum term of one year will be
considered an acceptance.
(c) Rejection. If the renter tenant or prospective renter tenant rejects the offer for a
written lease which has a minimum term of one year, this rejection must be in
writing, and the landlord and renter tenant or prospective renter tenant may then
enter into an agreement, oral or written, that provides for a rental term of less
than one year.
Not Yet Approved
230607 sm 010 7
(d) Rent. If the landlord and renter tenant enter into a written lease which has a
minimum term of one year, such lease must set the rent for the residential rental
unit at a rate or rates certain and these rates shall not be otherwise modified
during the term of such lease.
(e) Renewal of Leases. If both the landlord and the renter tenant wish to continue the
rental relationship, upon the expiration of the initial written lease which has a
minimum term of one year, a lease shall be offered again in accordance with the
procedures of Section 9.68.030(a) through (d):
(1) Leases with a term of one year shall be offered annually.
(2) Leases with a term longer than one year shall be renewable at the
expiration of each lease period for a minimum term of one year.
(3) A landlord shall offer annually a written lease with a minimum term of one
year to a renter tenant who rejected an initial offer of a written lease with
a minimum term of one year but who has rented a unit from the landlord
for a period of at least twelve months.
(f) Applicability. This section shall not apply to:
(1) A residential rental unit which is rented on the effective date of the
ordinance codified in this chapter, provided, that (A) if the unit is rented
subject to a written lease, when the lease in effect for such a unit expires,
the ordinance codified in this chapter shall then apply; and (B) if the unit is
rented without a written lease, within thirty days after the effective date
of this section, the landlord shall offer a written lease to the renter tenant
in accordance with this section;
(2) An owner-occupied unit that is rented to a renter tenant for less than one
year;
(3) A residential rental unit occupied by a renter tenant who subleases that
unit to another renter tenant for less than one year;
(3)(4) A single-family dwelling;
(5) Rooms or accommodations in hotels, boardinghouses, or lodginghouses
which are rented to transient guests for a period of less than thirty days;
(6) Dwelling units in a condominium, community apartment, planned
development or stock cooperative as defined in Chapter 21.40, or in a
limited equity stock cooperative as defined in the California Business and
Professions Code;
(7) Dwelling units in which housing accommodations are shared by landlord
and tenant;
(8) Housing accommodations in any hospital, extended care facility, asylum,
nonprofit home for the aged, or in dormitories owned and operated by an
institution of higher education, a high school or an elementary school;
(9) Housing accommodations rented by a medical institution which are then
subleased to a patient or patient's family;
(10) Dwelling units whose rents are controlled or regulated by any government
unit, agency, or authority, or whose rent is subsidized by any government
unit, agency, or authority;
Not Yet Approved
230607 sm 010 8
(11) Dwelling units acquired by the city of Palo Alto or any other governmental
unit, agency or authority and intended to be used for a public purpose;
(4)(12) A residential rental unit where tenancy is an express condition of, or
consideration for employment under a written rental agreement or
contract.
9.68.040. Just-cause evictions required.
(a) Applicability to residential rental units. This section shall apply to all residential
rental units, except not any of the following:
(1) Transient and tourist hotel occupancy as defined in 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 6 of Division 6 of Title 22 of
the Manual of Policies and Procedures published by California’s 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 renter shares bathroom or kitchen
facilities with the owner who maintains their principal residence at the
residential rental unit.
(5) Single-family owner-occupied residences.
(6) A property containing two separate dwelling units within a single structure
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, and neither unit is an accessory dwelling unit or a
junior accessory dwelling unit.
(7) A residential rental unit that is alienable separate from the title to any
other dwelling unit, provided that both subparagraphs (A) and (B) below
apply:
(A) The owner is not any of the following:
(i) A real estate investment trust, as defined in Section 856 of
the California Internal Revenue Code.
(ii) A corporation.
(iii) A limited liability company in which at least one member is
a corporation.
(iv) Management of a mobilehome park, as defined in Section
798.2 of the California Civil Code.
(B) The renters have been provided written notice that the residential
property is exempt from this section.
(i) Notice must be given using the following statement:
“This property is not subject to the just cause eviction
requirements of Chapter 9.68 of the Palo Alto
Not Yet Approved
230607 sm 010 9
Municipal Code. This property meets the
requirements of Section 9.68.040 (a)(7) of the Palo
Alto Municipal Code and the owner is not any of the
following: (1) a real estate investment trust, as
defined by Section 856 of the California Internal
Revenue Code; (2) a corporation; (3) a limited liability
company in which at least one member is a
corporation; or (4) management of a mobilehome
park, as defined in Section 798.2 of the California Civil
Code.”
(ii) The notice required under clause (i) may, but is not required
to, be provided in the rental agreement.
(8) 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.
(b) Protection for renters. Notwithstanding any other law, after a renter has
continuously and lawfully occupied a residential rental unit for 12 months, the
landlord of the residential rental unit shall not terminate the tenancy without just
cause, which shall be stated with specificity in the written notice to terminate
tenancy. If any additional adult renters are added to the lease before an existing
renter has continuously and lawfully occupied the residential rental unit for 24
months, then this subdivision shall only apply if either of the following are
satisfied:
(1) All of the renters have continuously and lawfully occupied the residential
rental unit for 12 months or more.
(2) One or more renters have continuously and lawfully occupied the
residential rental unit for 24 months or more.
(c) Opportunity to cure. Before a landlord issues a notice to terminate a tenancy for
just cause that is a curable lease violation, the landlord shall first give notice of
the violation to the renter with an opportunity to cure the violation pursuant to
paragraph (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, a three-day
notice to quit without an opportunity to cure may thereafter be served to
terminate the tenancy.
(d) Notice. A landlord subject to this section shall provide notice to the tenant,
which may take the form of a lease provision or an addendum to a lease, and
which shall include the following, in no less than 12 -point type:
“California law limits the amount your rent can be increased. See Section
1947.12 of the Civil Code for more information. Local law also provides that after
Not Yet Approved
230607 sm 010 10
all of the tenants have continuously and lawfully occupied the property for 12
months or more or at least one of the tenants has continuously and lawfully
occupied the property for 24 months or more, a landlord must provide a
statement of cause in any notice to terminate a tenancy. See Chapter 9.68 of the
Palo Alto Municipal Code for more information.”
(e) Dispute resolution. Nothing in this chapter abrogates the responsibility of
landlords to comply with the requirements of Chapter 9.72 (Mandatory
Response to Request for Discussion of Disputes between Landlords and Tenants)
of the Palo Alto Municipal Code. As applicable, a renter may request mandatory
discussion of rental housing disputes by filing a written request for dispute
resolution according to section 9.72.040 (Dispute Resolution Process).
9.68.050. General relocation assistance or rent waiver for no-fault eviction.
(a) Applicability. This section shall be applicable only to tenancies for which just
cause is required to terminate the tenancy under section 9.68.040 (Just-cause
evictions required), except it shall not apply to a tenancy when relocation
assistance payment is available to the renter through section 9.68.060
(Relocation assistance for evictions without at-fault just cause in structures or
lots containing 10 or more residential rental units) and the assistance available
through section 9.68.060 is greater in value than the assistance available through
this section.
(b) Relocation assistance for renters.
(1) Form of assistance. If a landlord issues a termination notice based on a no-
fault just cause described in section 9.68.020 (f)(2), the landlord shall,
regardless of the renter’s income, at the landlord’s option, do one of the
following:
(A) Assist the renter to relocate by providing a direct payment to the
tenant as described in section 9.68.050 (b)(3).
(B) Waive in writing the payment of rent for the final month of the
tenancy, prior to the rent becoming due.
(2) Notice required. If a landlord issues a notice to terminate a tenancy for no-
fault just cause, the landlord shall notify the renter of the renter’s right to
relocation assistance or rent waiver pursuant to this chapter. If the
landlord elects to waive the rent for the final month of the tenancy as
provided in section 9.68.050 (b)(1), the notice shall state the amount of
rent waived and that no rent is due for the final month of the tenancy.
(3) Amount.
(A) The amount of relocation assistance or rent waiver shall be equal
to one month of the renter’s rent that was in effect when the
landlord issued the notice to terminate the tenancy. Any
relocation assistance shall be provided within 15 calendar days of
service of the notice.
Not Yet Approved
230607 sm 010 11
(B) If a renter fails to vacate after the expiration of the notice to
terminate the tenancy, the actual amount of any relocation
assistance or rent waiver provided pursuant to this section shall be
recoverable as damages in an action to recover possession.
(C) The relocation assistance or rent waiver required by this section
shall be credited against any other relocation assistance required
by any other law.
(4) Effect of noncompliance. A landlord’s failure to strictly comply with this
subdivision shall render the notice of termination void.
9.68.035 9.68.060 Relocation assistance for no-fault evictions without at-fault just
cause in structures or lots containing 10 or more residential rental units.
(a) Applicability. This section shall be applicable only to structures or lots containing
10 or more residential rental units. This section shall not apply to any of the
following:
(1) A single-family dwelling;
(2) Rooms or accommodations in hotels, boardinghouses, or lodginghouses
which are rented to transient guests for a period of less than thirty days;
(3) Dwelling units in a condominium, community apartment, planned
development or stock cooperative as defined in Chapter 21.40, or in a
limited equity stock cooperative as defined in the California Business and
Professions Code;
(4) Dwelling units in which housing accommodations are shared by landlord
and tenant;
(5) Housing accommodations in any hospital, extended care facility, asylum,
nonprofit home for the aged, or in dormitories owned and operated by an
institution of higher education, a high school or an elementary school;
(6) Housing accommodations rented by a medical institution which are then
subleased to a patient or patient's family;
(7) Dwelling units whose rents are controlled or regulated by any government
unit, agency, or authority, or whose rent is subsidized by any government
unit, agency, or authority; or
(8) Dwelling units acquired by the city of Palo Alto or any other governmental
unit, agency or authority and intended to be used for a public purpose.
For 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.
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.
Not Yet Approved
230607 sm 010 12
(4) The tenant is permitting a nuisance to exist in, or is causing damage to, the
rental unit.
(4) The tenant is using or permitting a rental unit to be used for any illegal
purpose.
(4) 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:
(4) To demolish or otherwise permanently withdraw the rental unit from
offer for rent or lease pursuant to California Government Code section s
7060-7060.7.
(4) To perform work on the building or buildings housing the rental unit that
will render the rentable unit uninhabitable;
(4) 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.
(4) For no specified cause.
(a)(b) Amount required. Whenever a landlord seeks an eviction for any reason
other than to comply with regulations relating to the qualifications of tenancy
established by a governmental entity or at-fault just cause, as defined in this
Chapter, 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 residential rental unit is occupied by two or more tenantrenters, the
landlord shall provide each tenantrenter 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 a qualifying eviction; the
remainder of the payment shall be paid to each tenantrenter when that
tenantrenter vacates the unit.
(2) Notwithstanding subsection (db)(1), each residential rental unit that, at
the time the landlord provides notice of its intent to seek no-faultan eviction
subject to this section, is occupied by a low-income household as defined in
Chapter 16.65, a tenantrenter who is 60 years of age or older, a tenantrenter
who is disabled within the meaning of Government Code section 12955.3, or a
tenantrenter 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
Not Yet Approved
230607 sm 010 13
(i.e. low-income, elderly, disabled, or minor) tenantrenters. In order to receive
this additional payment a qualifying tenantrenter 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 tenantrenter's written notice to the landlord.
(b)(c) Notice. Prior to or at the same time that the landlord provides notice of
its intent to seek no-faultan eviction subject to this section, the landlord shall
serve on the tenantrenter 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.
(c)(d) Annual adjustment. 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 JoseHayward Region, not
seasonally adjusted, for the preceding calendar year. Current rates shall be
published on the city's website.
(d)(e) Request for waiver. 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.
(e)(f) Authority to regulate. The director of planning and development services
may issue regulations implementing this section.
9.68.070. Security deposit limit.
(a) Applicability. This section applies to security for leases of all residential rental
units.
(b) Limits. A landlord may not demand or receive security, however denominated, in
an amount or value in excess of an amount equal to one and a half months’ rent,
in the case of unfurnished rental units, in addition to any rent for the first month
paid on or before initial occupancy.
(c) Security deposit purposes. The landlord may claim of the security only those
amounts as are reasonably necessary for the purposes specified in subdivision
9.68.020 (g). The landlord may not assert a claim against the renter or the
security for damages to the premises or any defective conditions that preexisted
the tenancy, for ordinary wear and tear or the effects thereof, whether the wear
and tear preexisted the tenancy or occurred during the tenancy, or for the
cumulative effects of ordinary wear and tear occurring during any one or more
tenancies.
Not Yet Approved
230607 sm 010 14
9.68.040 9.68.080 TenantRenter's remedies.
(a) Defense to Action to Recover Possession. Failure of a landlord to comply with
any of the provisions of this chapter shall provide the tenantrenter with a
defense in any legal action brought by the landlord to recover possession of
the residential rental unit.
(b) Defense to Action to Collect Rent. Failure of a landlord to comply with any of
the provisions of this chapter shall provide the tenant renter with a defense
in any legal action brought by the landlord to collect rent.
(c) Injunctive Relief. A tenant renter may seek injunctive relief on his or her own
behalf and on behalf of other affected tenants renters to enjoin the
landlord's violation of this chapter.
(d) Remedies are Nonexclusive. Remedies provided in this section are in addition
to any other existing legal remedies and are not intended to be exclusive.
9.68.050 9.68.090 Nonwaiver.
Any waiver or purported waiver by a tenantrenter of rights under this chapter
prior to the time when such rights may be exercised, except a rejection of a one-year
lease offered in accordance with Section 9.68.030, shall be void as contrary to public
policy.
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 after the date of its
adoption.
INTRODUCED:
PASSED:
AYES:
Not Yet Approved
230607 sm 010 15
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
City Attorney City Manager
____________________________
Director of Planning and Development
Services
____________________________
Director of Community Services
____________________________
Director of Administrative
Services