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CM Renter Protections____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 05/06/2019 Disposition: Accepted report and provided direction to staff Agenda Item No: 6.a Meeting Date: May 6, 2019 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: City Manager’s Office Prepared by: Andrew Hening, Director of Homeless Planning & Outreach City Manager Approval: _____ _________ TOPIC: RENTER PROTECTIONS SUBJECT: PROPOSED RENTER PROTECTION POLICIES: MANDATORY MEDIATION AND JUST CAUSE EVICTION RECOMMENDATION: Accept Informational Report and provide direction to staff. BACKGROUND: In the fall of 2016, the County of Marin started exploring a variety of policies and programs that could address ongoing challenges with discrimination, affordability, and substandard living conditions in unincorporated Marin County’s rental housing stock. Unlike the cities and towns in Marin County, the County, through its Community Development Agency, has full-time staff working on housing issues. As a result, many local cities and towns have looked to the County for leadership in this policy area. To- date, the County has adopted the following renter protection measures: - Source of Income Discrimination - Mandatory Mediation - Just Cause Eviction - Business License Data Collection The City Council’s Goals and Strategies for Fiscal Year 2018-19 include goals around facilitating affordable housing. For example, one strategy is to “Explore protections to increase rental and ownership housing affordability.” On August 20, 2018, the Community Development Director provided the City Council with a “Housing Update” report. At that time, the City Council provided direction to staff to work on a number of items for future Council consideration. One of these items was a Source of Income Discrimination ordinance, which the City Council considered and approved at their December 17, 2018 meeting. The City Council also directed staff to return with information regarding proposed ordinances for Mandatory Mediation and Just Cause Eviction. On February 4, 2019, staff provided an informational report to the City Council about Mandatory Mediation and Just Cause Eviction policies. In essence, these policies do the following: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 • Mandatory Mediation – Mediation is a process in which a neutral third party facilitates the negotiation of a mutually acceptable resolution to a dispute between parties. Mediation programs commonly apply voluntary, private and informal processes. With “Mandatory” Mediation, if a triggering event occurs (e.g. rent is increased by a certain percentage), then the tenant is able to request mediation services. It is then mandatory that the landlord participates in the mediation process, but the parties cannot be compelled to reach a resolution. Instead, the goal of these programs is to facilitate constructive conversations in a neutral and accountable environment. • Just Cause Eviction – Just Cause Eviction policies are intended to provide stability for households who rent by regulating the grounds for eviction, typically by prohibiting termination of a residential tenancy without an express and valid reason. These policies serve to promote greater awareness of the rights and responsibilities of landlords and tenants and provide a clear and transparent process for evictions and lease terminations, particularly when rental agreements do not exist or lack specificity. Just Cause ordinances typically identify acceptable reasons that a landlord may terminate a tenancy “for cause” (e.g. failure to pay rent, nuisance behavior), as well as other reasons a landlord could evict for “no cause” (e.g. the landlord is moving back into the unit). Just Cause ordinances fully retain the rights of landlords to terminate a lease for valid reasons, but they also help to prevent the eviction of responsible tenants, providing them with greater security and stability. At the February 4, 2019 meeting, the City Council decided to create a Renter Protections ad-hoc Subcommittee to vet these policies in more detail, using the County of Marin’s adopted ordinances as a starting place. The Subcommittee includes Mayor Gary Phillips, Councilmember Andrew McCullough, County Supervisor Dennis Rodoni, Legal Aid of Marin Managing Attorney David Levin, and local multi- family property owner and real estate agent Scott Gerber. Staff to the Subcommittee includes City Attorney Rob Epstein, City Manager Jim Schutz, and Director of Homeless Planning & Outreach Andrew Hening. ANALYSIS: Overall, the Subcommittee recommends that the City Council adopt Mandatory Mediation and Just Cause Eviction policies. San Rafael, like the Bay Area and most of California, is in the middle of a housing crisis. To illustrate this issue, below is a quote from a recent report by the Bay Area Council Economic Institute entitled Bay Area Homelessness: A Regional View of a Regional Crisis: According to the California Legislative Analyst’s Office (LAO), California’s high housing costs are primarily the result of a severe housing shortage, especially in coastal regions like the Bay Area. Community review processes, environmental policies, impact fees, and a lack of fiscal incentives for local governments to approve housing, all contribute to a chronic shortage that skews the market toward higher prices. A 2016 study by the McKinsey Global Institute estimates California has 3.5 million fewer homes than needed, resulting in LAO estimates that show the average California home costs 2.5 times the national average while California’s average rents are 50 percent higher. As the report highlights, the housing crisis is particularly acute for renters. According to the City of San Rafael’s 2015-2023 Housing Element, in 2010 San Rafael had 24,011 housing units. According to the 2010 U.S. Census, renter households occupied 48% of San Rafael’s housing units. There are a variety of ways in which renters are impacted by the housing crisis: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3  Housing Overpayment – Housing overpayment, as defined by the state and federal government, refers to spending more than 30% of income on housing. According to a 2018 report from the Marin Economic Forum, the majority of low-income renters in Marin County fall within this definition of housing overpayment (Figure 1). Figure 1 – Rent Burden by Income Group  Low Vacancy Rates – The vacancy rate refers to the number of available housing units – for sale or rent – available at any given point in time. According to the City of San Rafael’s Housing Element, “A low vacancy rate may indicate that households are having difficulty in finding housing that is affordable, leading to housing overpayment and/or overcrowding.” According to the Marin County Community Development Agency, the rental vacancy rate in Marin County is currently below 3%. A healthy rate is closer to 6 to 7%. In rental markets with low vacancy rates, in addition to overpaying, tenants without viable housing alternatives might end up choosing to reside in rental units with deficiencies that affect the habitability of the property (the City of San Rafael does have a Housing Inspection Program to ensure such deficiencies are corrected). Moreover, with more renters competing for a smaller pool of units, renters with “red flags” in their background (e.g. a criminal record, low credit scores) can have a harder time finding units.  Jobs / Housing Imbalance – According to the San Rafael Housing Element, more than 87% of those employed in San Rafael reside in other cities, which implies a significant jobs / housing imbalance. Affordable workforce housing is needed for those who contribute vital services to the City but whose incomes limit their ability to obtain affordable housing in San Rafael. Examples of workforce occupations priced out of the local housing market include nursing assistants, elementary and high school teachers, and many public employees.  Homelessness – According to Marin County’s 2017 Homeless Point-in-Time-Count, the leading reason people cited for becoming homeless was “economic issues” (42%). According to the same study, currently homeless persons cited the top three forms of assistance needed for exiting homelessness as housing-related: rental assistance (62%), more affordable housing SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 (60%), and money for moving costs (46%). According to the aforementioned Bay Area Council Economic Institute report, “In 2017, an estimated 28,200 individuals were homeless across the nine county Bay Area according to Point-in-Time (PIT) counts, making it the nation’s third largest population of people experiencing homelessness, behind only New York City (76,500) and Los Angeles (55,200). As a percentage of the overall population, the Bay Area has the fifth highest homeless concentration in the U.S. If the Bay Area counties were to be ranked separately, San Francisco would have the second largest ratio of homeless-to-non-homeless residents in the nation (78), Sonoma County (56) would have the third highest, and Marin County (43) the seventh highest.” Of note, in 2018, fully 100% of the people who were placed in housing through the Marin County Continuum of Care moved into a rental arrangement.  Difficulty of Becoming an Owner - For existing owners, higher prices mean increased equity. By comparison, renters experience increasing prices as just that, higher prices. The County of Marin’s Community Development Agency shared the infographic below at their September 11, 2018 “Preventing Displacement: Rental Housing Workshop.” It reveals a crucially important link between the ownership market and the rental market. If more and more of a household’s income is directed towards increasingly expensive rents, while at the same time the cost of becoming an owner also continues to rise (e.g. the cost of a down payment will continue to rise as prices rise), it becomes increasingly difficult for renters to become owners. Figure 2 – Home Equity vs. Rental Prices in Marin County, 2009-2017 In an effort to help renters, a variety of local jurisdictions have adopted Mandatory Mediation and Just Cause Eviction ordinances (e.g. the County of Marin, the Town of Fairfax, Union City, the City of Alameda, San Leandro, Concord, Palo Alto). At the February 4, 2019 City Council meeting, staff presented the policy frameworks for Mandatory Mediation and Just Cause Eviction that were adopted by the County of Marin (the ordinances for the County’s policies are included here as Attachment 1 – County of Marin Mandatory Mediation Ordinance and Attachment 2 – County of Marin Just Cause Eviction Ordinance). Of note, since the February 4, 2019 City Council meeting, the Town of Fairfax has passed both Just Cause Eviction and Mandatory Mediation policies that are in line with the County. The Renter Protections Subcommittee reviewed the measures passed by the County of Marin and ultimately concluded that with certain modifications, these policies would be beneficial for San Rafael as well. To explain the proposed policy changes, there are two tables below: one for Mandatory Mediation (Figure 3) and the other for Just Cause Eviction (Figure 4). These tables will highlight the key issues pertaining to both policies, what the County did, what the Renter Protections Subcommittee is recommending that the City of San Rafael do, and the rationale if there was a change. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 Figure 3 – Mandatory Mediation Policy Recommendations Key Policy Issue County’s Language Recommended Change for San Rafael Rationale Properties Subject to Ordinance All rental units, including single-family homes and condos except government-regulated units (e.g., Sec. 8). Properties w/ 3 or more units, except gov-regulated units. “Unit” to exclude those occupied in whole or part by owner or owner’s family member. Consistent with Just Cause Eviction ordinance; covers 68% of rental units in San Rafael; “Unit” definition intended to exclude landlords that might be renting multiple bedrooms in their primary residence. County’s inclusion of single family homes reflects their disproportionate % of rental units in County. Parties that Can Initiate a Mediation Tenants and Landlords No change --- Basis for Mediation A 5% or greater rent increase within a 12-month period A 10% or greater rent increase within a 12-month period Average rental prices grew 0% in 2018; most landlords are keeping rent increases in line with the market, with the exception of high-profile building acquisitions (e.g. renters in the Canal saw 40%+ increases); the Subcommittee felt the goal is to discourage increases that are above market and to avoid including and managing a CPI index should inflation rise. Cost to Participants No cost – County absorbs TBD. Options include: City absorbs for a limited period; both parties pay equally; landlord pays full cost; and/or volunteer panel is recruited --- SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 Failure to Participate in Good Faith Either party may ask the Community Development Agency director to investigate a claim of failure to participate in good faith. If bad faith by Landlord, rent increase not valid until Landlord participates in good faith. If bad faith by Tenant, request for mediation deemed withdrawn and rent increase permissible. No hearings or appeals permitted; a claim of failure to participate in good faith may be made in court. The City does not have the administrative capacity to manage an appeals process. If either party believes the other has failed to comply with the ordinance, the party may go directly to court and attorneys’ fees may be awarded if the party prevails. Mediation Statements If the parties reach an agreement, a Mediation Agreement will be prepared and is enforceable. Absent an agreement, the Mediator must prepare a statement summarizing the mediation. No change should parties reach an agreement; if no agreement is reached, the mediator will not prepare a statement summarizing the mediation. The purpose of mediation is to have a candid and open discussion. If agreements can be subpoenaed for future court cases, they will disincentivize openness during the mediation. Anti- Harassment Activities The County outlined 14 activities that Landlords are prohibited from engaging in as a result of a tenant requesting mediation services (e.g. interrupting amenities, lack of diligence in conducting repairs, an invasion of privacy). Remove provision Parties to rely on existing law, including California Code 1942.5, which prohibits retaliation against tenants; City may elect to notify Landlords that some / all of these 14 activities may be a violation of existing law. Civil Remedies In addition to injunctive relief, an aggrieved party—upon showing a violation of any provision of this ordinance—is entitled to treble damages, and may be awarded $200- 400, attorneys fees, costs, and punitive damages. Remedies limited to 1) A party’s failure to mediate in good faith, and 2) Landlord’s failure to substantially comply with its notice requirements; remove punitive damages; Attorneys’ fees recoverable only if Landlord is first given written notice of its failure and an opportunity to cure, which cure may include delaying and re-noticing a proposed rent increase or refunding or crediting to Tenant a past rent increase. Remedies narrowed to address the objective of the ordinance, which is to enforce the obligation to mediate in good faith and, in landlord’s case, to provide notice to tenant of his/her right to mediate. Punitive damages removed as redundant in light of the availability of treble damages. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 Figure 4 – Just Cause Eviction Policy Recommendations Key Policy Issue County’s Language Recommended Changes Rationale Properties Subject to Ordinance All properties with at least 3 units, excluding government- regulated units, developments with 49% or more gov- regulated units, ADUs/JADUs, and caretaker units. Same as the County except “Unit” to be defined to exclude those occupied in whole or part by owner or owner’s family member. “Unit” definition intended to exclude landlords that might be renting multiple bedrooms in their primary residence. Rental Unit Registry Landlords must register all units subject to this ordinance with the County. Specific info must be included for each unit: 1) the name of owner, address of unit, 2) number of bedrooms, 3) the amount and date of rent received, 4) whether rent includes utilities, 5) the occupancy status of each unit, 6) the addresses of all other units owned in the County, and 7) the business license number applicable to the unit being registered. A registry will not be required. The City is not resourced to maintain a registry. The City could require more data from Landlords during its business license renewal process in order to obtain this or similar information. Bases of For Cause Termination 1) Failure to pay rent 2) Tenant violated “material term” of rental agreement 3)Tenant has been convicted for using the unit for an illegal purpose,. Upon notice from Landlord, Tenant Household may “cure” the violation by removing the offending member of Tenant Household. 4) A specific, unequivocal threat of imminent violent crime towards any person on the property, likely to cause death or great bodily injury, where the person is reasonably in sustained fear for his or his family’s safety. 5) After written notice and reasonable opportunity to cure, Tenant commits “such a nuisance as to destroy the peace, quiet, comfort, or safety of Landlord or other Tenants.” 6) Acts of domestic violence, sexual assault or stalking are not sufficient grounds to terminate the tenancy of the victim. No change --- SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8 No Fault Terminations A Landlord may terminate a tenancy if 1) Landlord will permanently remove unit from market—by demolition or by ending its residential rental use. 2) Landlord or Landlord’s family will move in to unit w/n 3 mos. and occupy it for at least one year. 3) Landlord has obtained permits for substantial repairs of unit, the primary purpose of which is compliance with health and safety. Add Tenant’s refusal to accept a lease at outset of tenancy, or renew a lease on terms substantially similar to the existing lease. Broaden permit requirement to to include compliance with applicable building codes (not just health and safety). As a written lease protects a tenant from no-fault terminations, the refusal to accept a lease should not avail tenant of just cause protection. Removal of tenants to perform significant repairs should include other substantial repairs that will bring a unit up to code. Rights and Remedies Rights: Landlord’s failure to comply with the ordinance is an affirmative defense by Tenant in any eviction proceeding. A Tenant (or member of Tenant’s Household) or the County may sue any Landlord who: 1) attempts to prevent a Tenant from acquiring rights under this ordinance, 2) retaliates against a Tenant or Tenant Household for exercising rights under this ordinance, or 3) engages in activities prohibited by this ordinance. County has the right but not the obligation to enforce this ordinance, via litigation or administrative remedy/citation. Remedies: In addition to injunctive relief, a Landlord who violates this ordinance shall be liable for damages, costs, and reasonable attorneys’ fees, along with other relief that may awarded by a court. The court may treble the award of damages if it finds Landlord acted with knowledge or reckless disregard Limit availability of remedy to instances where Landlord terminates a tenancy without Just Cause or No Fault or where Landlord fails to substantially comply with the requirement to provide notice to the tenant (but not to any third parties). Remedies narrowed to address the objective of the ordinance, which is to enforce landlord’s obligation to terminate a tenancy only for cause (subject to permitted exceptions) and to provide notice to tenant of their rights under the ordinance. Trivial defects in a notice should not allow recovery of attorneys’ fees in order to avoid frivolous litigation. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9 As this report is informational, there is no formal City Council action required at this time. Instead, staff seeks feedback from the full City Council regarding the Subcommittee’s proposed rental protection policies. Overall, staff recommends that the City Council adopt these policies with the changes outlined above. PUBLIC OUTREACH: Staff has connected with a variety of local stakeholders on this issue, including: the Marin Organizing Committee, renters in the Canal, representatives from the faith-based community, local landlords, the California Apartment Association, staff and elected from the County of Marin, the Citizen’s Advisory Council, the Association of Bay Area of Governments, and the Marin Income Property Association. Additionally, a courtesy meeting notice was sent to the following organizations: Marin County Community Development Agency, the Marin Housing Authority, the League of Women Voters, EDEN Housing, Marin Environmental Housing Collaborative, Sustainable Marin, Sustainable San Rafael, Fair Housing of Marin, Marin Builders Association, Public Advocates, Inc., Legal Aid of Marin, Marin Association of Realtors, Community Action Marin, Canal Alliance, the San Rafael Chamber of Commerce, the Downtown San Rafael Business Improvement District, Marin Continuum of Housing, the Housing Crisis Action Group, Aging Action Initiative, the Homeless Policy Steering Committee, Ritter Center, St. Vincent’s, Homeward Bound, Buckelew Programs, the Marin Center for Independent Living, the Marin Organizing Committee, and the Federation of San Rafael Neighborhoods. The Director of Homeless Planning & Outreach sent a newsletter about renter challenges to the Homeless Initiatives Newsletter distribution (approximately 3,000 subscribers), and this item was noticed in the City Manager’s Bi-Weekly Snapshot newsletter. Based on City Council direction, staff is prepared to conduct additional public outreach on this item. FISCAL IMPACT: The Renter Protections Subcommittee recommends that the City of San Rafael cover the cost of these programs for two years; however, at present, there are no available resources in the General Fund for this new programming. One possibility is that the City Council reassign funding from the Homeless Initiatives Budget. In terms of cost, there are no direct administrative costs required for the Just Cause Ordinance, though there will be a time commitment from staff to create the public education materials about the new process and to field public inquiries about the policy. There may be a more substantial cost associated with the Mandatory Mediation program. The cost will be most dependent on the vendor that provides the mediation services. The City does not have capacity to offer this service in-house. As staff presented at the February 4, 2019 City Council meeting, the County of Marin (and now the Town of Fairfax) is administering its mediation program through the District Attorney’s Consumer Protection Unit. Staff connected with the District Attorney’s Office in January and was quoted a cost of $400 per mediation. It is hard to estimate what the demand for this service will be but based on coverage from the Marin Independent Journal on recent high-profile rent increases, in fiscal year 2018- 19 there have been 68 rental units affected by 40%+ rent increases. Under the proposed Mandatory Mediation ordinance, every individual household would have had a right to request a mediation. This could have cost the City $27,200. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 10 Importantly, the District Attorney’s Office indicated during initial discussions that they would only be open to providing mediation services to other jurisdictions if other jurisdictions used the same ordinance adopted by the County of Marin. Should the City Council choose to adopt the Subcommittee’s modified policy proposal, there would need to be follow up discussions with the District Attorney’s Office about their willingness to provide the service, as well as a final price. As an alternative option, the Renter Protections Subcommittee discussed the possibility of creating a program through the Marin County Bar Association. The idea would be that current and/or former attorneys could volunteer to conduct mediations on a rotating, as-needed basis. The City Attorney’s Office is following up with the Bar Association. RECOMMENDED ACTION: Provide comments and feedback to staff. ATTACHMENTS: 1. County of Marin Mandatory Mediation Ordinance 2. County of Marin Just Cause Eviction Ordinance ORDINANCE NO. _____ ORDINANCE OF THE MARIN COUNTY BOARD OF SUPERVISORS AMENDING COUNTY OF MARIN CODE OF ORDINANCES CHAPTER 5.95, RENTAL HOUSING DISPUTE RESOLUTION SECTION I: LEGISLATIVE FINDINGS 1. WHEREAS, over 67,000 people permanently reside in the unincorporated area within Marin County, which population is projected to grow by approximately 10,000 additional residents by 2040, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015 – 2023; and 2. WHEREAS, over 30 percent of the 26,000 households that reside in unincorporated Marin rent their homes, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015 – 2023; and 3. WHEREAS, it is estimated that over 2,000 households residing in unincorporated Marin have extremely low incomes, which is defined as earning approximately 30 percent of the area median income, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015 – 2023; and 4. WHEREAS, approximately 56 percent of renters in 2010 were estimated to be overpaying for rental housing, which is defined as paying more than 30 percent of household income as rent, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015 – 2023; and 5. WHEREAS, between 2001 and 2013 home values increased significantly more than area incomes, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015 – 2023; and 6. WHEREAS, between 2004 and 2013 rental prices increased approximately 13 percent, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015 – 2023; and 7. WHEREAS, there is a shortage of rental housing, including multi-family, single-family, second units, and Single Room Occupancy (SRO) units, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015 – 2023; and 8. WHEREAS, for the past approximately two years, the Board of Supervisors has been considering a slate of policy options to preserve housing affordability and prevent displacement, and has taken action to implement several measures in furtherance of these goals based in part on recommendations from an Affordable Housing Subcommittee of the Board; and 9. WHEREAS, on November 2, 2017, the Affordable Housing Board Subcommittee recommended that the County establish a Rental Housing Dispute Resolution program consisting of mandatory mediation and certain tenant protection policies; and 10. WHEREAS, the Board of Supervisors finds and determines that regulating the relations between certain residential landlords and residential tenants will increase certainty and fairness within the residential rental market in the County and thereby serve the public peace, health, safety, and public welfare; and Page 2 of 10 Ordinance No. [ ] 11. WHEREAS, on December 12, 2017 the Board of Supervisor adopted Ordinance 3680, and thereby added Chapter 5.95, titled “Rental Housing Dispute Resolution,” to the Marin County Code of Ordinances pursuant to the County's police powers, afforded by the state constitution and state law, to protect the health, safety, and welfare of the public; and 12. WHEREAS, the proposed amendment would simplify the eligibility criteria and clarify certain provisions that define Good Faith Participation in the program; and 13. WHEREAS, the Board of Supervisors conducted duly and properly noticed public hearings on August 7 and 21, 2018 regarding the Rental Housing Dispute Resolution program; and 14. WHEREAS, Chapter 5.95 of the County of Marin Code of Ordinances is amended. SECTION II: ACTION The Marin County Board of Supervisors ordains as follows: Ordinance No. [ ] is hereby adopted and Chapter 5.95 Rental Housing Dispute Resolution shall be codified in the Marin County Code of Ordinances in the form attached as Exhibit "A" to Marin County Ordinance No. [ ]. SECTION III: CEQA DETERMINATION The Board of Supervisors finds that adoption of this Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment, in that this ordinance applies residential tenant protection measures to existing residential units in unincorporated areas of Marin County, which is solely an administrative process resulting in no physical changes to the environment. Accordingly, this ordinance contains no provisions modifying the physical design, development, or construction of residences or nonresidential structures. SECTION IV: SEVERABILITY Every section, paragraph, clause, and phrase of this Ordinance is hereby declared to be severable. If for any reason, any section, paragraph, clause, or phrase is held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, clauses or phrases. SECTION V: EFFECTIVE DATE AND PUBLICATION This Ordinance shall be and is hereby declared to be in full force and effect as of 30 days from and after the date of its passage and shall be published once before the expiration of 15 days after its passage, with the names of the Supervisors voting for and against the same, in the Marin Independent Journal, a newspaper of general circulation published in the County of Marin. Page 3 of 10 Ordinance No. [ ] SECTION VI: VOTE PASSED AND ADOPTED at a regular meeting of the Board of Supervisors of the County of Marin, State of California, on this 21st day of August 2018 by the following vote: AYES: SUPERVISORS NOES: ABSENT: DAMON CONNOLLY, PRESIDENT MARIN COUNTY BOARD OF SUPERVISORS ATTEST: Matthew H. Hymel Clerk of the Board of Supervisors Page 4 of 10 Ordinance No. [ ] EXHIBIT "A" TO MARIN COUNTY ORDINANCE NO. [ ] Marin County Code of Ordinances Chapter 5.95 Rental Housing Dispute Resolution Section: 5.95.010 Purpose and intent. It is the purpose and intent of this Chapter to increase certainty and fairness in the residential rental market within unincorporated Marin County, in order to promote the health, safety, and general welfare of residents and businesses within the County. This Chapter only governs disputes between Landlords and Tenants of rental Dwelling Units located within unincorporated Marin County. Section: 5.95.020 Applicability. The provisions of this Chapter 5.95 shall apply to all Dwelling Units in unincorporated Marin County containing a separate bathroom, kitchen, and living area, including a single-family dwelling or unit in a multifamily or multipurpose dwelling, a unit in a condominium or cooperative housing project, or a unit in a structure that is being used for residential uses whether or not the residential use is a conforming use permitted under the Marin County Code of Ordinances, which is hired, rented, or leased to a household within the meaning of California Civil Code Section 1940. This definition applies to any dwelling space that is actually used for residential purposes, including live-work spaces, whether or not the residential use is legally permitted. Notwithstanding anything to the contrary above, the provisions of this Chapter 5.95 shall not apply to the following: (a) Any Dwelling Unit that is owned or operated by any government agency; or (b) Any Dwelling Unit for which one of the following is true (1) t he Rent is limited to no more than affordable rent, as such term is defined in California Health & Safety Code Section 50053, pursuant and subject to legally binding restrictions enforceable against and/or governing such units; or (2) the Rent is directly subsidized by a government agency such that the Tenant's portion of the Rent does not exceed 30% of income. Section: 5.95.030 Definitions. For the purpose of this Chapter, the following words and phrases shall mean: (a) "County" means the County of Marin. (b) "CDA Director" means the County of Marin Community Development Agency Director or their designee unless otherwise specified. (c) "Designated Service Provider" means a party, organization, or County Department selected by the CDA Director to provide Mediation services and other tasks necessary to implement the program and procedures contained in this Chapter and any associated Guidelines. (d) "Dwelling Unit" means a structure or the part of a structure that is used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household as defined in California Civil Code section Page 5 of 10 Ordinance No. [ ] 1940 and County Code sections 18.10.020, 20.16.061, including those dwellings defined in County Code sections 22.02.2401 (Dwelling, one-family), 22.02.2501 (Dwelling, two- family), and 22.02.2601 (Dwelling, multiple). (e) "Guidelines" means any written regulations for the administration and implementation of this Chapter adopted by the CDA Director. All forms and notices called for to facilitate the administration and implementation of this Chapter shall be adopted by the CDA Director, with approval by the County Counsel, and included in the Guidelines. (f) “Good Faith” participation includes the affirmative duty of the Landlord to: (i) refrain from any harassment or other prohibited activity described in Section 5.95.060 and to (ii) refrain from an unlawful detainer proceeding while the parties are engaged in proceedings under this Chapter excepting only those actions authorized by subsections (3) and (4) of California Code of Civil Procedure section 1161 or any successor provisions. Good Faith participation also includes the affirmative duty of the Tenant to abide by the terms of the lease or rental agreement and to pay all lawful Rent owed. (g) "Landlord" means an owner, lessor, or sublessor who receives or is entitled to receive Rent for the use and occupancy of any Dwelling Unit or portion thereof. (h) "Mediation" means one or more meetings in which a Landlord and Tenant have the opportunity to directly communicate with a Mediator and each other in a face-to-face setting at a neutral location in order to resolve a rental housing dispute under ground rules designed to protect the confidentiality and neutrality of the communications. (i) "Mediator" means a person who is employed by the Designated Service Provider and who meets any criteria for conducting Mediations that may be established in the Guidelines. (j) "Rent" means the consideration, including any funds, labor, bonus, benefit, or gratuity, demanded or received by a Landlord for or in connection with the use and occupancy of a Dwelling Unit and the Housing Services provided therewith, or for the assignment of a rental agreement for a Dwelling Unit. (l) "Tenant" means a person entitled by written or oral agreement, or by sufferance, to the use or occupancy of a Dwelling Unit. Section: 5.95.040 Mediation eligibility. (a) Tenant-initiated Mediation. A Tenant residing in a Dwelling Unit may file a request and receive Mediation services within either 30 calendar days from the enactment of this Chapter or ten calendar days of the Tenant's receipt of one or more notices in accordance with California Civil Code section 827 that individually or cumulatively increase Rent more than five percent within any 12-month period. (b) Landlord-requested Mediation. Any Landlord may file a request and receive Mediation services in order to pursue a Rent increase greater than five percent within any 12-month period. Section: 5.95.050 Mediation process. (a) Designated Service Provider. The CDA Director shall contract with or designate a Designated Service Provider to provide Mediation services. The Guidelines may include Page 6 of 10 Ordinance No. [ ] a description of minimum qualifications for the Designated Service Provider and its Mediators. (b) Mediation Requests. (1) Any Tenant or Landlord eligible for Mediation under Section 5.95.040 may request Mediation services from the Designated Service Provider. (2) Each Landlord and/or Tenant requesting Mediation services must complete and sign a form under penalty of perjury that demonstrates eligibility for Mediation under this Chapter and includes other information as may be specified in the Guidelines. (3) Separate requests for Mediation services that involve one or more of the same parties may be consolidated with the consent of the Landlord and the other Tenant(s), but consolidation is not required and shall not affect individuals' ability to be separately represented or to bring a separate legal action. (4) If an eligible Tenant has requested Mediation as a result of receiving one or more notices in accordance with California Civil Code section 827 that individually or cumulatively increase Rent more than five percent within any 12-month period, unless the parties otherwise agree in writing, such noticed Rent increase will not be effective until the Mediation concludes. (c) Two-Step Mediation Process. The Designated Service Provider shall assign a Mediator within ten calendar days of receiving a complete request for Mediation services. The assigned Mediator shall offer a two-step Mediation process as follows: (1) Within two business days of receiving a Mediation assignment from the Designated Service Provider, the Mediator shall provide notice of the Mediation to the Landlord and Tenant. The Mediation notice shall, at a minimum, inform each party of their obligation to appear at the Mediation and participate in the Mediation in Good Faith. The Mediator shall make reasonable efforts to schedule Mediation sessions at times that are mutually convenient for the Landlord and the Tenant, which may include times that are outside of business hours. The Mediation process shall commence upon notification of the Landlord and Tenant by the Mediator. (A) A Mediator may notify the Landlord and/or Tenant of the Mediation process via telephone, email, or any other form of communication, but at a minimum, the Mediator must notify each party in writing via first-class mail, postage prepaid to each parties' address of record. (B) Following the Mediator sending such notification, both the Landlord and the Tenant have an affirmative obligation to participate in the Mediation in Good Faith until the Mediation concludes. (2) The Mediation process shall conclude upon the earlier of: (A) the execution of a legally enforceable, written Mediation agreement signed by all parties to the Mediation service under Section 5.95.050(e); (B) the Mediator's determination that no further progress is likely to result from continued Mediation; or (C) all of the parties to the Mediation indicate in writing that the Mediation has concluded to their satisfaction. In no event shall a Mediation process last longer than 30 calendar Page 7 of 10 Ordinance No. [ ] days from when the parties are notified unless the parties agree in writing to extend the Mediation term. If no legally enforceable, written Mediation agreement is reached, the Mediator shall prepare and distribute a nonbinding Mediation statement under Section 5.95.050(f). The Mediator shall send the Mediation statement to each party's address of record via first-class mail, postage prepaid. (d) Mandatory Participation. Every party to a Mediation is affirmatively obligated to participate in such Mediation in Good Faith until the Mediator determines the Mediation has concluded. (1) Definition. For purposes of this Section, Good Faith participation includes by reference the definition described in Section 5.95.030 and also means the mutual obligation of the Landlord and Tenant to meet on each occasion when notified of Mediation proceedings, provide relevant information, exchange proposals, timely consider and respond to proposals by opposite parties, and engage in meaningful discussion on the subject of proposed Rent increases and issues related to the Rent increase. (2) Failure to participate in Good Faith. (A) No Rent increase will be effective unless or until the Landlord of the Dwelling Unit complies with the provisions of this Chapter by participating in Good Faith as described in Section 5.95.030 and 5.95.050 throughout the entirety of a Mediation process. (B) If a Tenant fails to participate in Good Faith, the Mediator at his or her discretion may determine that the Tenant has withdrawn their request for Mediation service and conclude the Mediation process, allowing any Rent increase to be implemented in accordance with the notice requirements identified in California Civil Code section 827. (3) Finding of a failure to participate in Good Faith. (A) A Mediator or party to the Mediation process may request that the CDA Director investigate a claim of failure to participate in Good Faith by another party. The CDA Director shall be responsible for investigating allegations of a lack of Good Faith participation by any party. (B) Any determination that a party has failed to participate in Good Faith in a proceeding under this Chapter shall only be made after a fair hearing by a hearing officer appointed by the CDA Director and the rendition of factual findings supported by the record. All parties to such hearing must receive written notice of the hearing at least five business days prior to the hearing date. Following such a hearing, the CDA Director shall give prompt notice of the determination by first-class mail, postage prepaid, to the affected party. Additional hearing procedures, including procedures for appeals (if any), may be specified in the Guidelines. (e) Mediation Agreements. (1) Any agreement reached by the parties in Mediation must: Page 8 of 10 Ordinance No. [ ] (A) Be made in writing and signed by the parties; (B) State the specific terms of the Mediation agreement including the duration and conditions of the agreement; (C) State the effective date of any agreed-upon Rent increase and stipulate to the adequacy of notice for any Rent increase in accordance with California Civil Code section 827; (D) Be legally enforceable against the parties to the agreement; (E) Provide that the agreement may be enforced via civil action by any party and by the County or its designee as third-party beneficiaries; and (F) Provide that any agent or representative signing a Mediation agreement on behalf of other persons shall be responsible for promptly providing a copy of the agreement to the parties they represent. (2) A Tenant bound by a Mediation agreement may not request further Mediation concerning any Rent increase covering the same time period included in the Mediation agreement but may request Mediation concerning an additional Rent Increase that is first noticed or occurs after the Mediation agreement is signed by both parties. (f) Mediation Statements. If a Mediation service does not result in a Mediation agreement, then the designated Mediator shall produce a nonbinding Mediation statement. The Guidelines shall include form Mediation agreements and Mediation statements that include, without limitation, the following information: (1) The name of each party that appeared for and participated in Good Faith in the Mediation service; and (2) A concise summary of the dispute including the perspectives of each party that appeared for and participated in Good Faith in the Mediation service. Section: 5.95.060 Anti-harassment and other prohibited activities. (a) No Landlord may do any of the following in bad faith, with ulterior motive, or without honest intent: (1) Interrupt, fail to provide, or threaten to interrupt or fail to provide any Housing Service under a lease or rental agreement, including but not limited to utility services and other amenities and services agreed to by contract; (2) Fail to perform repairs or maintenance required by contract or by State, or County housing, health, or safety laws; (3) Fail to exercise due diligence to complete repairs and maintenance once undertaken, including the failure to follow industry-appropriate safety standards and protocols; (4) Abuse or otherwise improperly use Landlord's right to access the property; Page 9 of 10 Ordinance No. [ ] (5) Remove personal property of the Tenant(s) from the Dwelling Unit; (6) Influence or attempt to influence the Tenant(s) to vacate the unit by means of fraud, intimidation, or coercion (including but not limited to threats based on immigration status in violation of California Civil Code section 1940.3); (7) Offer payment or any other consideration, in return for the Tenant(s) vacating the Dwelling Unit, more often than once every six months; (8) Threaten the Tenant(s) by word or gesture with physical harm; (9) Interfere with the Tenant(s) right to quiet use and enjoyment of the Dwelling Unit; (10) Refuse to accept or acknowledge receipt of lawful Rent from the Tenant(s); (11) Interfere with the Tenant(s) right to privacy; (12) Request Information that violates the Tenant(s) right to privacy; (13) Other repeated acts or omissions of such significance as to substantially interfere with or disturb the Tenant(s) comfort, repose, peace, or quiet enjoyment, and that cause, are likely to cause, or are intended to cause the Tenant(s) to vacate the Dwelling Unit; or (14) Retaliate against the Tenant(s) for the Tenant(s) exercise of rights under this Chapter or state or federal law. (b) Nothing in this Section 5.95.060 prohibits the lawful eviction of a Tenant in accordance with California Civil Code section 1946.1 or by any other appropriate legal means. Section: 5.95.070 Civil remedies. (a) Injunctive relief. Any aggrieved person may enforce the provisions of this Chapter by means of a civil injunctive action. Any person who commits, or proposes to commit, an act in violation of this Chapter may be enjoined therefrom by any court of competent jurisdiction. An action for injunction under this section may be brought by any aggrieved person, by county counsel, the district attorney, or by any person or entity which will fairly and adequately represent the interests of the protected class. (b) Civil Liability. Any person who violates any of the provisions of this Chapter or who aids in the violation of any provisions of this Chapter is liable for, and the court must award to the individual whose rights are violated, three times the amount of special and general damages. The court may award in addition thereto not less than two hundred dollars ($200.00) but not more than four hundred dollars ($400.00), together with attorney's fees, costs of action, and punitive damages. Civil actions filed pursuant to this section must be filed within one year of the events giving rise to the alleged cause of action. Page 10 of 10 Ordinance No. [ ] Section: 5.95.080 Notice of Tenant rights. (a) Landlords must provide to each Tenant a notice of Tenant rights under this Chapter that describes the Mediation service and how to request service; a form for providing such notice may be issued in the Guidelines. (b) Landlords must provide to Tenants the notice of Tenant rights under Section 5.95.080(a) in the following circumstances: (1) Within 30 calendar days of enactment of this Chapter; (2) When entering a lease or rental agreement; (3) When renewing a lease or rental agreement; (4) When providing notice of a Rent increase; and (5) At such times as required by the County, which may include, but is not limited to, when this Chapter is significantly amended. (c) All notices provided under this Section shall be provided in English, Spanish and Vietnamese, in the translated form made available by the County. If the Tenant's rental agreement was negotiated in another language, the Landlord is obligated to provide an accurate translation of the notification in that other language as well. Translation services for other documents or Mediations in languages other than English shall be made available to persons requesting such services subject to the County's ability to provide such services. In the event that the County is unable to provide such services, parties who do not speak or are not comfortable with English must provide their own translators. To participate in Mediation proceedings, the translators will be required to take an oath that they are fluent in both English and the relevant foreign language and that they will fully and to the best of their ability translate the proceedings. (d) Failure to comply with the notice provisions described in this Chapter shall render any rental increase notice invalid and unenforceable. The failure to comply with the notice provisions will be cured only after the proper written notice of Tenant's Rights, along with a new rental increase notice, has been properly served on the tenant. Section: 5.95.090 Severability. The provisions of this Chapter are declared to be severable. If for any reason, any section, paragraph, clause, or phrase of this Chapter or the application thereof to any person, entity, or circumstance is held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, clauses or phrases. Page 1 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ ORDINANCE NO. _____ ORDINANCE OF THE MARIN COUNTY BOARD OF SUPERVISORS ADDING COUNTY OF MARIN CODE OF ORDINANCES CHAPTER 5.100, REQUIRING CAUSE TO TERMINATE A RESIDENTIAL TENANCY SECTION I: LEGISLATIVE FINDINGS WHEREAS, over 67,000 people permanently reside in the unincorporated area within Marin County, which population is projected to grow by approximately 10,000 additional residents by 2040, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015-2023; and WHEREAS, over thirty percent of the 26,000 households that reside in unincorporated Marin rent their homes, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015-2023; and WHEREAS, it is estimated that over 2,000 households residing in unincorporated Marin have extremely low incomes, which is defined as earning approximately thirty percent of the area median income, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015-2023; and WHEREAS, approximately fifty-six percent of renters in 2010 were estimated to be overpaying for rental housing, which is defined as paying more than thirty percent of household income as rent, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015-2023; and WHEREAS, between 2001 and 2013 home values increased significantly more than area incomes, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015-2023; and WHEREAS, between 2004 and 2013 rental prices increased approximately thirteen percent, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015-2023; and WHEREAS, there is a shortage of rental housing, including multi-family, single- family, second units, and Single Room Occupancy (SRO) units, as identified in Section II: Housing Needs Analysis of the Marin County Housing Element 2015 -2023; and WHEREAS, increasing rental prices combined with the constrained supply of rental housing in the County can result in displacement of County residents beyond the County and region if a household's tenancy is terminated without a cause, with impacts particularly affecting low- and moderate-income households; and Page 2 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ WHEREAS, a 2018 research project by the California Housing Partnership and U.C. Berkeley's Urban Displacement Project regarding Rising Housing Costs and Re - segregation showed that displaced households experienced greater housing cost s after displacement, whether they moved within their county of origin, to a new county in the Bay Area, within the region, or out of state;1 and WHEREAS, the County's Rental Housing Survey released in 2015 received more than 800 tenant responses, and found that 372 (45 percent) were concerned with insecurity and instability of their rental home, and 59 percent of all respondents were worried about rent increases and/or evictions; and WHEREAS, 1,296 unlawful detainer actions were filed in Marin County b etween 2014 and 2016, which indicates over 400 unlawful detainer actions may be filed each year;2 and WHEREAS, unlawful detainer actions filed with the courts do not account for the terminations of tenancy, notices to quit, and other actions that can resul t in the displacement of County residents generally, and which particularly impact members of protected classes in Marin County; and WHEREAS, for the past approximately three years, the Board of Supervisors has been considering a slate of policy options to preserve housing affordability and prevent displacement, and has taken action to implement several measures in furtherance of these goals based in part on recommendations from an ad hoc Affordable Housing Subcommittee of the Board; and WHEREAS, the Board of Supervisors discussed just cause for eviction policies during seven workshops, held in October and December 2015, February 2016, August and December 2017, and in June and September 2018; and WHEREAS, the Community Advisory Group and Steering Committee for the County's ongoing Assessment of Fair Housing identified just cause for eviction policies as one priority recommendation to promote fair housing after extensive community engagement process reaching over 1,400 people from all areas of the County; a nd WHEREAS, just cause for eviction policies continue to allow landlords to terminate tenancies and evict tenants based on a tenant's failure to pay rent or illegal activities, a landlord's desire to withdraw the property from the rental market, and other specified reasons, while providing tenants with more stability and security; and 1 Zuk, M., & Chapple, K. (2018). Urban Displacement Project. Retrieved from http://www.urbandisplacement.org/research#section-132. Published research only for San Francisco, Alameda, and Contra-Costa Counties, but presented at Non-Profit Housing Conference applied to Bay Area generally. 2 Research from Anti-Eviction Mapping Projection and Tenants Together (May 2018). Retrieved from https://www.antievictionmap.com/evictions#/unlawful-detainer-evictions-california-20142016. Page 3 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ WHEREAS, just cause for eviction policies advance fair housing policy by: increasing transparency and reducing the chance that a termination of tenancy or eviction is motivated by unlawful discrimination or retaliation; specifically protecting existing tenants who are statistically more likely to be members of protected classes than homeowners in Marin County due to historical housing policies; and WHEREAS, on September 11, 2018, the Board of Supervisors held a workshop and received public testimony on Just Cause for Eviction policies and directed staff to develop a Just Cause Ordinance, with further direction from the Affordable Housing Subcommittee of the Board; and WHEREAS, the Board of Supervisors has identified six specific causes for which a tenancy may be terminated that balance the needs of property owners, market conditions, and protections for the renter population in the unincorporated area of the County; and WHEREAS, the Board of Supervisors conducted duly and properly noticed public hearings on December 4 and December 18, 2018 regarding an ordinance requiring cause to terminate a residential tenancy; and WHEREAS, the Board of Supervisors finds and determines that regulating the reasons for terminating a tenancy between certain residential landlords and residential tenants will increase certainty and fairness within the residential rental market in the County and thereby serve the public peace, health, safety, and public welfare; and WHEREAS, Chapter 5.100 is adopted and added to the County of Marin Code of Ordinances pursuant to the County's police powers, afforded by the state constitution and state law, to protect the health, safety, and welfare of the public. SECTION II: ACTION The Marin County Board of Supervisors ordains as follows: Ordinance No. [ ] is hereby adopted and Chapter 5.100 Requiring Cause to Terminate a Residential Tenancy shall be codified in the Marin County Code of Ordinances in the form attached a s Exhibit "A" to Marin County Ordinance No. [ ]. SECTION III: CEQA DETERMINATION The Board of Supervisors finds that adoption of this Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment, in that this ordinance applies residential tenant protection measures to existing resid ential units in unincorporated areas of Marin County, which is solely an administrative process resulting in no physical changes to the environment. Accordingly, this ordinance contains Page 4 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ no provisions modifying the physical design, development, or construct ion of residences or nonresidential structures. SECTION IV: SEVERABILITY Every section, paragraph, clause, and phrase of this Ordinance is hereby declared to be severable. If for any reason, any section, paragraph, clause, or phrase is held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, clauses or phrases. SECTION V: EFFECTIVE DATE AND PUBLICATION This Ordinance shall be and is hereby declared to be in full force and effect as of thirty (30) days from and after the date of its passage and shall be published once before the expiration of fifteen (15) days after its passage, with the names of the Supervisors voting for and against the same, in the Marin Independent Journal, a newspaper of general circulation published in the County of Marin. SECTION VI: VOTE PASSED AND ADOPTED at a regular meeting of the Board of Supervisors of the County of Marin, State of California, on this __ day of ______________ 2018 by the following vote: AYES: SUPERVISORS NOES: ABSENT: DAMON CONNOLLY, PRESIDENT MARIN COUNTY BOARD OF SUPERVISORS ATTEST: Matthew H. Hymel Clerk of the Board of Supervisors Page 5 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ EXHIBIT "A" TO MARIN COUNTY ORDINANCE NO. [ ] Marin County Code of Ordinances Chapter 5.100 Requiring Cause to Terminate a Residential Tenancy Section: 5.100.010 Purpose and intent. (a) It is the purpose and intent of this Chapter to increase certainty and fairness in the residential rental market within unincorporated Marin County in order to promote the health, safety, and general welfare of residents and property owners within the County. This Chapter regulates the reason(s) for and defines certain minimum term(s) under which certain residential tenancies may be terminated by Landlords of rental Dwelling Units located within unincorporated Marin County. (b) The CDA Director has the authority to issue interpretations of and regulations to implement this Chapter, including the publication of form notices and other documents. All forms and notices called for to facilitate the administration and implementation of this Chapter shall be adopted by the CDA Director, with approval by the County Counsel, and included in the Guidelines. Section: 5.100.020 Applicability. (a) General Application. Except as provided in Section 5.100.020(b) below, the provisions of this Chapter 5.100 shall apply to all properties in unincorporated Marin County that contain at least three: (1) Dwelling Units which contain a separate bathroom, kitchen, and living area in a multifamily or multipurpose dwelling; (2) Dwelling Units in Single Room Occupancy residential structures; or (3) units in a structure that is being used for residential uses whether or not the residential use is a conforming use permitted under the Marin County Code of Ordinances, which is hired, rented, or leased to a household within the meaning of California Civil Code section 1940. This definition applies to any dwelling space that is actually used for residential purposes, including live-work spaces, whether or not the residential use is legally permitted. (b) Exceptions. Notwithstanding anything to the contrary above, the provisions of this Chapter 5.100 shall not apply to the following types of Dwelling Units: (1) Any Dwelling Unit for which one of the following is true: (A) the Dwelling Unit is owned or operated by any government agency; or (B) the Rent is directly subsidized by a government agency such that the Tenant's portion of the Rent does not exceed 30% of household income; or (2) Any Dwelling Unit located in a development where no fewer than forty-nine percent (49%) of the Dwelling Units are subject to legally binding restrictions Page 6 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ enforceable against and/or governing such units that limit the Rent to no more than an affordable rent, as such term is defined in California Health & Safety Code Section 50053; or (3) Any residential accessory dwelling unit or junior accessory dwelling unit, each as defined in Marin County Development Code Chapter 22.56; or (4) Any Dwelling Unit occupied by a Tenant employed by the Landlord for the purpose of managing the property. Section: 5.100.030 Definitions. For the purpose of this Chapter, the following words and phrases shall mean: (a) "County" means the County of Marin. (b) "CDA Director" means the County of Marin Community Development Agency Director or his or her designee unless otherwise specified. (c) "Dwelling Unit" means a structure or the part of a structure that is used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household as defined in California Civil Code section 1940 and the Marin County Code. (d) "For Cause" termination has the meaning provided in subsection (b) of Section 5.100.040. (e) "Guidelines" means any written regulations for the administration and implementation of this Chapter adopted by the CDA Director. (f) "Landlord" means an owner, lessor, or sublessor who receives or is entitled to receive Rent for the use and occupancy of any Dwelling Unit or portion thereof. (g) "No Fault" termination has the meaning provided in subsection (c) of Section 5.100.040. (h) "Notice of Termination" means a written notice that includes all of the components identified in Section 5.100.050. (i) "Primary Residence" means a Dwelling Unit that an owner occupies as a primary residence, as evidenced by the Dwelling Unit qualifying for a homeowner's property tax exemption. (j) "Rent" means the consideration, including any funds, labor, bonus, benefit, or gratuity, demanded or received by a Landlord for or in connection with the use and occupancy of a Dwelling Unit and the Housing Services provided therewith, or for the assignment of a rental agreement for a Dwelling Unit. Page 7 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ (k) "Tenant" means a person entitled by written or oral agreement, or by sufferance, to the use or occupancy of a Dwelling Unit. (l) "Tenant Household" means all Tenant(s) who occupy any individual Dwelling Unit, and each minor child, dependent, spouse or registered domestic partner of any Tenant whose primary residence is the Dwelling Unit. Section: 5.100.040 Cause required to terminate tenancy. (a) Prerequisites to terminate. No Landlord may terminate a residential tenancy of a Dwelling Unit unless the Landlord can demonstrate: (1) the Landlord possesses a valid Business License in accordance with Chapter 5.54 of the County Code; and (2) the Landlord has previously provided the Tenant with the Notice of Tenant Rights as required by County Code Section 5.95.080, or can otherwise demonstrate timely, good faith substantial compliance with the noticing requirements listed herein; and (3) the Landlord served a Notice of Termination to the Tenant, in the form required by County Code Section 5.100.050, and that the Landlord delivered a true and accurate copy of the Notice of Termination to the CDA Director within ten (10) calendar days of delivery to the Tenant(s); and (4) the Landlord has not accepted and will not accept rent or any other consideration in return for the continued use of the Dwelling Unit beyond the term of the terminated tenancy in compliance with California Civil Code sections 1945, 1946, and 1946.1; and (5) the termination qualifies as a For Cause or No Fault termination, as defined in this Section; and (6) for all Notices of Termination served to the Tenant after June 1, 2019, the Landlord must have registered the Dwelling Unit in accordance with Section 5.100.080 of this Chapter; and (7) the Landlord has complied with the requirements listed in Section 5.100.090 of this Chapter. (b) For Cause Terminations. If a Landlord can show any of the following circumstances with respect to a termination of tenancy, the termination will qualify as "For Cause." Nothing in this section shall abrogate the protections afforded to survivors of violence consistent with the California Code of Civil Procedure Section 1161.3, as amended, and the Violence Against Women Act, Pu blic Law 102-322, as amended. Page 8 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ (1) Failure to Pay Rent. Tenant failed to pay Rent within three days of receiving written notice from the Landlord demanding payment as provided in subsection 2 of California Code of Civil Procedure section 1161. (2) Breach of Rental Contract. Tenant violated a material term of the rental agreement as provided in subsection 3 of California Code of Civil Procedure section 1161. (3) Tenant Illegal Activities. Tenant has been convicted for using the Dwelling Unit for an illegal purpose as provided in subsection 4 of California Code of Civil Procedure section 1161, including but not limited to the unlawful distribution of a controlled substance as contemplated by California Civil Code section 3486, the unlawful use, manufacture, or possession of weapons and ammunition as contemplated by California Civil Code section 3485, or for of a serious crime or violent felony as defined by applicable law, which occurred during the tenancy and within 1,000 feet of the Dwelling Unit. For purposes of this subsection, Tenant Household, after receiving a written notice, may cure the violation by removing, and demonstrating such removal, of the offending Tenant. (4) Threat of Violent Crime. Any statement made by a Tenant, or at his or her request, by his or her agent to any person who is on the property that includes the unit or to the Landlord, or his or her agent, threatening the commission of a crime which will result in death or great bodily injury to another person, with the specific intent that the statement is to be taken as a threat, even if there is no intent of actually carrying it out, when on its face and under the circumstances in which it is made, it is so unequivocal, immediate and specific as to convey to the person threatened, a gravity of purpose and an immediate prospect of execution of the threat, and thereby causes that person reasonably to be in sustained fear for his or her own safety or for his or her immediate family's safety. (5) Nuisance Behavior. The Tenant, after written notice to cease and the passage of a reasonable period of time to abate or cure, continues to be so disorderly or to cause such a nuisance as to destroy the peace, quiet, comfort, or safety of the Landlord or other Tenants of the structure or rental complex containing the Dwelling Unit. Such nuisance or disorderly conduct includes violations of state and federal criminal law that destroy the peace, quiet, comfort, or safety of the Landlord or other Tenants of the structure or rental complex containing the Dwelling Unit, or the creation or maintenance of a dangerous or unsanitary condition in violation of applicable local, state, and Federal law, and may be further defined in the regulations adopted by the Community Development Director. Page 9 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ (6) Notwithstanding the limitations of California Code of Civil Procedure Section 1161.3, as amended, act or acts constituting domestic violence or sexual assault or stalking against the Tenant or a member of Tenant's household cannot form the substantial basis of a For Cause reason to terminate the tenancy of the victim of such acts. A member of a Tenant household may raise such facts as an affirmative defense to an action terminating the tenancy. (c) No Fault Terminations. If a Landlord can show any of the following circumstances with respect to a termination of tenancy, the termination will qualify as "No Fault." (1) Landlord Will Permanently Remove Unit from Rental Market. Landlord will imminently demolish the Dwelling Unit or otherwise permanently remove the Dwelling Unit from any residential rental use or purpose, in accordance with California Government Code sections 7060 – 7060.7. (2) Landlord Will Move in to Dwelling Unit. Landlord, or one of Landlord's parents or children, intends to move into and reside in the Dwelling Unit as his, her, or their Primary Residence. The Dwelling Unit must be occupied as the Primary Residence within three months of the Tenant household vacating the Dwelling Unit, and the Dwelling Unit must continue to be occupied as the Primary Residence for at least one year. (3) Substantial Rehabilitation for Health and Safety. Landlord has obtained permits to undertake substantial repairs to the Dwelling Unit that cannot be completed while the Dwelling Unit is occupied . To qualify, such substantial repairs must be for the primary purpose of bringing the Dwelling Unit into compliance with applicable health and safety codes. (d) Buy-Out Agreements. Nothing in this Chapter shall expand or limit a Landlord and Tenant's ability to negotiate or agree to end a tenancy voluntarily in exchange for money or other consideration. Section: 5.100.050 Notice of Termination. (a) Contents of Notice of Termination. In addition to any information required by state or federal law, each Notice of Termination subject to this Chapter must include the following information. (1) The name and address of the Landlord where the Landlord will accept service of process; and (2) The location of the Dwelling Unit; and Page 10 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ (3) The total length of the notice prior to termination of tenancy (expressed as number of days from delivery of notice until the anticipated final date of tenancy); and (4) The intended final date of occupancy under the tenancy; and (5) The monthly Rent applicable to the tenancy upon delivery of the Notice, and, if applicable, the date on which the final monthly Rent is due; and (6) The beginning date of the tenancy and monthly Rent applicable at that time; and (7) One applicable cause for which the tenancy will be terminated, in accordance with Section 5.100.040. (b) Language of Notice of Termination. If the Tenant's rental agreement was negotiated in a language other than English, then the Landlord is obligated to provide an accurate translation of the Notice of Termination in the language in which the rental agreement was negotiated. (c) Delivery of Notice. Each Notice of Termination must be delivered to the Tenant Household in accordance with Civil Code sections 1946 and 1946.1, as applicable. (d) Copy of Notice to County. Landlords must provide a copy of the Notice of Termination to the Community Development Agency within ten days of delivery to the Tenant(s). In the event that the Landlord has identified a breach of a rental contract as a cause for the Termination as provided in Section 5.100.040(b)(2), the Landlord must attach a copy of the applicable rental agreement or contract to the Notice of Termination when submitting th e Notice of Termination to the County. Notices of Termination may be submitted via the County’s website for such Notices or as otherwise specified in the Guidelines. Section: 5.100.060 Extended notice for certain No Fault terminations. Each Tenant household whose tenancy is terminated pursuant to subsection (c)(1) of Section 5.100.040 (Landlord will permanently remove unit from rental market) must receive notice of the termination at least one hundred twenty (120) days prior to the intended final date of occupancy under the tenancy. Section: 5.100.070 Civil remedies. (a) Affirmative Defense. A Landlord's failure to comply with this Chapter, including but not limited to the identification of an applicable cause for termination described in Section 5.100.040 and delivery of a completed Notice of Termination in accordance with Section 5.100.050, shall be an affirmative defense to an unlawful detainer action by Landlord. Page 11 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ (b) Civil Liability. Whenever a Landlord attempts to prevent a tenant fro m acquiring any rights under this chapter, retaliates against a Tenant or Tenant Household for the exercise of any rights under this chapter, or engages in activities prohibited under this chapter, the Tenant, Tenant Household, or the County may institute a civil proceeding for money damages or injunctive relief, or both . This section creates a private right of action to enforce all terms, rights, and obligations under this chapter. Whoever is found to have violated this chapter shall be subject to appropriate injunctive relief and shall be liable for damages, costs and reasonable attorneys’ fees, and whatever other relief the court deems appropriate. In the case of an award of damages, said award may be trebled if the trier of fact finds that the Landlord acted in knowing violation, reckless disregard, or otherwise willfully failed to comply with this chapter. (c) Authorization of County to Enforce the Ordinance. The County shall have the right and authority, but not the obligation, to enforce provisions of this chapter to bring actions for injunctive relief on behalf of the County or on behalf of Tenants or Tenant Households seeking compliance by Landlords with this chapter or through administrative remedy or citation. (d) Civil Action to Determine Liability. Any Tenant may bring a civil action to determine the applicability of this chapter to the tenancy. (e) Other Private Rights of Action. Nothing herein shall be deemed to interfere with the right of a Landlord to file an action against a Tenant or non-Tenant third party for the damage done to said Landlord’s property. Nothing herein is intended to limit the damages recoverable by any party through a private action. Section: 5.100.080 Rental Dwelling Unit registry. No later than June 1, 2019, and on or before January 1 of each year thereafter, each person or entity seeking to Rent or lease one or more Dwelling Units on properties that are subject to the provisions of this Chapter to a residential Tenant must register their unit(s), using forms provided by the County. Each addition to the registry must include, at a minimum, the following information provided under penalty of perjury and certified to be true as of November 1 of the preceding year: (a) the name, address, and phone number of the person(s) that own the Dwelling Unit to be rented, if other than a natural person then the name of the entity and the name and address of the designated agent for service of process; and (b) the address of each Dwelling Unit for rent or lease; and (c) the number of bedrooms in each Dwelling Unit for rent or lease; and Page 12 of 12 Ordinance No. [ ] Attachment No. 1 BOS Hearing __/__/____ (d) the amount and date of the monthly Rent received for each Dwelling Unit, identifying whether the monthly Rent includes specified utilities (water/sewer, refuse/recycle, natural gas, electricity, etc.); and (e) the occupancy status of each Dwelling Unit (e.g. vacant or occupied); and (f) the address of all other Dwelling Units owned in the County; and (g) the Business License number applicable to each above -referenced Dwelling Unit in accordance with Chapter 5.54 of the County Code. Section: 5.100.090 Compliance with other local regulations In addition to the requirements of this Chapter, properties subject to the provisions of this Chapter shall also comply with all other applicable regu lations, including but not necessarily limited to maintaining a valid business license and a valid Permit to Operate from Marin County Environmental Health Services Division. Section: 5.100.100 Severability. The provisions of this Chapter are declared to be severable. If for any reason, any section, paragraph, clause, or phrase of this Chapter or the application thereof to any person, entity, or circumstance is held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, clauses or phrases. Section: 5.100.110 Ordinance review. This Chapter shall be reviewed by the Board of Supervisors no later than January 18, 2021, at which time the Board of Supervisors may consider revisions to this Chapter.