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City Council Poised To Tackle Thorny Landlord-Tenant-Rental Issues And Possibly Vote April 2 To Prepare "Tenant Relocation Assistance" Ordinance; Staff Recommendations Stop Short Of Formal Rent Control, Doesn't Call It "Just Cause Eviction," Raises Issues Related To Both; Council Majority Can Make Changes And Will Ultimately Decide Ordinance Specifics


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(Mar. 26, 2019, 6:30 a.m.) -- A major item affecting current and future rights of Long Beach residential property owners and tenants citywide is coming to the City Council on April 2. Responding to a Council-voted request last year to study and report on LB rents and rental issues, city staff has returned with a lengthy report that offers recommendations which stop short of formal rent control and doesn't call it "just cause" eviction but effectively trigger landlord-tenant issues related to both.

Agendized as a "Tenant Relocation Assistance Ordinance," a lengthy city staff report that can be viewed in full here, city staff recommends -- with a Council majority free to make changes as it wishes and ultimately decide the final terms of -- an ordinance that could require LB landlords to pay certain tenants certain sums if the landlord raises rent by certain amounts and the tenant leaves or if the landlord evicts the tenant for reasons not specified in the ordinance (a version of "just cause" eviction.)

The key portions of city staff's recommendations for inclusion in the ordinance -- with options for changes as a Council majority may desire -- are below:

Tenant Relocation Assistance Policy Recommendations

Based on the research and data contained within the Report as well as input from stakeholder groups and the EHLB Recommendations, staff recommends that the City Council adopt five tenant assistance policies. The baseline policy recommendation is to require owners of multifamily rental apartment buildings to pay relocation assistance to qualified displaced households. Four additional policy recommendations do not impose additional requirements on property owners, but provide tenant assistance through City-funded programs or initiatives.

Staff sought to craft policies that assist tenants without being overly complex or onerous on property owners. Below are the baseline components of a potential Tenant Relocation Assistance Ordinance followed by options for the amount of the relocation benefits, the type of rental properties that would be affected, and the type of household that would be eligible for assistance (Applicability Requirements). This information is also provided in the attached Relocation Options Matrix for ease of comparison (Attachment C).

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Baseline Relocation Assistance Components

Component 1. Trigger for Relocation Assistance:

Relocation assistance is triggered upon A or B below:

A. Notice of rent increase of 10 percent or more in any 12-month period.

B. Notice to vacate issued to a tenant who has not:

  • 1. Failed to pay rent
  • 2. Violated terms of the lease or rental agreement
  • 3. Materially damaged property
  • 4. Interfered with other tenants
  • 5. Committed violence or assault
  • 6. Used premises for unlawful activity
  • 7. Engaged in unlawful use or dealing of drugs
  • 8. Conducted animal fighting
  • 9. Engaged in unlawful use of weapons or ammunition

Component 2. Conditions of Relocation Assistance:

  • Rent must be paid during noticing period or relocation benefits are not required.

  • Households removed under provisions 1 through 9, or evicted, are not eligible for relocation benefits.

  • Tenants vacating voluntarily do not receive relocation benefits.

  • Tenants receiving a rent increase of 1 O percent or more must notify property owner within 7 days of their intent to stay or leave with relocation benefits.

  • Rental security deposits must be returned per California law.

  • Tenants must be given reasonable accommodation to cure causes for termination per California law.

Other requirements/enforcement provisions of Relocation Assistance Ordinance:

  • Owners must include relocation information in lease and rental agreements.

  • Owners-must report relocation payments to the City.

  • Owners must notify the City when an entire building is being vacated.

  • Relocation benefits will be paid to the household, not to each individual occupant.

  • Affordable rent-restricted properties are exempt.

  • Enforcement will include a "Private Right of Action," and breach of local law as an "Affirmative Defense to an Unlawful Detainer.

In addition to the Baseline Relocation Assistance Components described above, the following three Applicability Requirement Options provide further detail on implementation of relocation assistance and include consideration of the amount of the relocation benefits, the type of rental properties that would be affected, and the type of household that would be eligible for assistance. The options are provided for consideration, should the City Council choose to modify staff's recommendations, and the varying criteria could be combined in several different ways to create a proposed Tenant Relocation Assistance Ordinance.

Applicability Requirement Options:

Option One

In addition to the Baseline Relocation Assistance Components, the relocation amount would be $4,500 for all unit types, based on provisions of LBMC 21.60, plus an additional $2,000 for senior and disabled households and an additional $1,000 for moving expenses. This option would apply to all rental properties with two or more rental units (duplex and above). All applicable households would be eligible for relocation assistance regardless of income.

Option Two (Recommended)

In addition to the Baseline Relocation Assistance Components, the relocation amount would be equal to two months' rent based on the current Housing Authority Rent Payment Standards (Attachment D) for a similar unit size in the same ZIP code. This option would apply to all units in multi-family rental properties with four or more units. Only lower- and moderate-income households earning 120 percent of the Area Median Income (AMI) and below would be eligible for relocation assistance (moderate-income and below).

Option Three

In addition to the Baseline Relocation Assistance Components, the relocation amount would be $4,500 for all properties and households. This option would apply to all multi-family rental properties with ten units or more. Only lower-income households earning up to 80 percent of the AMI would be eligible for relocation assistance (low-income and below).

Following are the five policy recommendations for the City Council's consideration:

Recommendation One

Prepare a Tenant Relocation Assistance Ordinance that requires owners of multi-family rental apartment buildings to pay relocation assistance to qualified displaced households. This recommendation includes the Baseline Relocation Assistance Components described above combined with Option Two Applicability Requirements.

Recommendation Two

Create a "Seniors First" security deposit assistance program for displaced very low-income senior residents (The City will use HOME funds to provide security deposit assistance to qualified senior households aged 62 and above).

Recommendation Three

Create a set-aside of up to 25 Emergency Housing Choice Vouchers for displaced extremely low- and very-low income senior residents.

Recommendation Four

Establish a communication framework with the HUD Public Housing Office and area Section 202 (affordable elderly housing) and Section 811 (housing for persons with disabilities) providers to discuss rehabilitation and covenant preservation opportunities.

Recommendation Five

Include a recommendation in the City's State Legislative Agenda to support an increase to the State's noticing requirement for a no-fault termination of tenancy to a minimum of 90 days.

...Under the currently proposed model, this program would require little administration from City staff, and would be administered by landlords with their tenants in accordance with requirements outlined in the Long Beach Municipal Code.

Further to follow on LBREPORT.com on this major developing item.

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