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CM Rental Housing Ordinances____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 06/03/2019 Disposition: Passed Ordinances 1971 and 1972 to print Agenda Item No: 5.a Meeting Date: June 3, 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: RENTAL HOUSING ORDINANCES SUBJECT: 1. ORDINANCE AMENDING THE SAN RAFAEL MUNICIPAL CODE BY ADDING NEW CHAPTER 10.100 CONCERNING “RENTAL HOUSING DISPUTE PROGRAM” 2. ORDINANCE AMENDING THE SAN RAFAEL MUNICIPAL CODE BY ADDING NEW CHAPTER 10.105 CONCERNING “CAUSE REQUIRED FOR EVICTION” RECOMMENDATION: Conduct a public hearing regarding proposed ordinances to add Chapter 10.100, entitled “Rental Housing Dispute Program”, and Chapter 10.105, entitled “Cause Required for Eviction”, to the San Rafael Municipal Code and pass the ordinances to print. BACKGROUND: The City Council’s Goals and Strategies for Fiscal Year 2018-19 include “[exploring] 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 what are commonly called “Mandatory Mediation” and “Just Cause Eviction”. In an effort to support renters, a variety of local jurisdictions have adopted Mandatory Mediation and Just Cause Eviction ordinances (Exhibit 1). At the February 4, 2019 City Council meeting, staff provided an informational report about Mandatory Mediation and Just Cause Eviction policies. In essence, these policies do the following: 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 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 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. Exhibit 1 – Renter Protection Policies Adopted by Bay Area Communities At the February 4, 2019 City Council meeting, the City Council moved to create an ad-hoc Renter Protections Subcommittee to vet these Mandatory Mediation and Just Cause Eviction policies in more detail, using the County of Marin’s adopted ordinances as a starting place. The Subcommittee included 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 broker Scott Gerber. Staff to the Subcommittee includes City Attorney Rob Epstein, City Manager Jim Schutz, and Director of Homeless Planning & Outreach Andrew Hening. At the May 6, 2019 City Council meeting, based on feedback from the Renter Protections Subcommittee, staff presented updated policy recommendations for the full City Council’s consideration. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 ANALYSIS: In order incorporate feedback from the public, as well as the full City Council, the Renter Protections Subcommittee convened one final time on May 14, 2019. Omar Carrera, the Chief Executive Officer for Canal Alliance, joined this meeting. The subcommittee was focused on resolving two outstanding policy questions with Mandatory Mediation – which units are covered and what triggers mediation? The Just Cause policy recommendations from the May 6, 2019 meeting have not changed. • Which Units Are Covered – Initially the Renter Protection Subcommittee recommended covering units in properties with three or more units. This was based on the City’s limited staffing and financial resources for both paying for mediation services and providing public outreach about how the policy works. At this level of applicability, 68% of San Rafael’s renters would have been covered. However, significant rental increases are not limited to multi-family buildings; thus, the recommendation has shifted to cover all renters. Of note, the Just Cause regulations would still only apply to properties with three or more units. The applicability of both programs now mirrors what was adopted by the County of Marin. • What Triggers Mediation – The Renter Protection Subcommittee initially recommended that a mediation could occur when a rent increase was greater than or equal to 10% within a 12-month period. Data from rental listing aggregator Rent Jungle shows that there has been a steady decline in the change in rental prices in San Rafael (Exhibit 2). There was concern among some Subcommittee members that setting the mediation threshold to 5% would have the unintended consequence of anchoring annual rental increases at 4.9%. To prevent this, if the threshold was 10%, it seemed much less likely that the market could tolerate annual rental increases of 9.9%. Exhibit 2 – Annual Change in Rental Prices in San Rafael That being said, when looking at mediation programs around the region, the average threshold is 6% (Exhibit 3). This weighted average is similar to legislation that is currently being considered at the state level for setting rent increase thresholds. Assemblymember David Chiu’s AB 1482 is proposing to set statewide rent caps at 5% plus the Consumer Price Index (CPI). Under state law, property owners are entitled to a reasonable rate of return on their investment. Many communities have deemed that 5% meets that criteria. Some local jurisdictions do regulate rent increases by benchmarking it to CPI; however, the Renter Protections Subcommittee ultimately felt that this approach created too much administrative burden to update and promulgate annual rates. Instead, looking at the consumer price index for housing in the San Francisco / Oakland / Hayward 8%8% 12% 10% 5%4%3% 0% 2% 4% 6% 8% 10% 12% 14% 2012 2013 2014 2015 2016 2017 2018 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 Metropolitan Service Area, the five-year annual average has been 4.8% annually. For these reasons, the Renter Protection Subcommittee’s final recommendation is for a 5% threshold. Exhibit 3 – Weighted Average of Mediation Thresholds in the Bay Area The Renter Protection subcommittee’s final recommendations have been incorporated into the attached ordinances (Attachment 1 – “Rental Housing Dispute Program” and Attachment 2 – “Cause Required for Eviction”). PUBLIC OUTREACH: In forming the recommendations for these policies, staff and members of the Renter Protections Subcommittee have 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. A notice of public hearing (Attachment 3) was published in the Marin IJ ten days prior to this public hearing. Additionally, a courtesy 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. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 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. FISCAL IMPACT: There are no direct administrative costs required for the Just Cause Ordinance, though there will be a time commitment from staff to create public education materials about the new process and to field public inquiries about the policy. Mandatory Mediation will require the same backend support from staff, however, there is the added expense of the mediation. Funding in the amount of $66,000 is budgeted in the City Manager’s Office General Fund budget for FY 2019-20 and is subject to appropriation by the City Council as part of the FY 2019-20 budget approval process. Staff will be recommending $40,000 of this amount to be used for the first year of the Mandatory Mediation program (more detail below). There are two primary ways in which communities are providing mediation services. 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 a “contractor” – 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. Other communities have established a rent review board. Just like a regular board or commission, the City would recruit community members to serve on a standing committee. Board members would be trained on how to conduct a mediation. The board would meet on a monthly basis and hear cases as they arise. Exhibit 6 – Types of Renter Mediation Programs SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 The Renter Protection Subcommittee ultimately felt that it would be best to start with an outside contractor. It is impossible to predict what rent increases will look like in the coming months and years, as well as how many renters and landlords will initiate a mediation if they have the right to do so; however, in an attempt quantify potential utilization, staff identified other mediation programs in the region, specified how many units are covered by each community’s ordinance, and then looked at how many cases each program saw in a given year. This information allowed for the creation of a “case-to-unit ratio” (i.e. for a given number of covered rental units, how many cases could a jurisdiction expect to see. Union City has the most comparable regulatory environment to what the City of San Rafael is considering – a 7% mediation threshold and Just Cause (the County of Marin now has a 5% mediation threshold and Just Cause, but both policies have only been in effect for a few months). Interestingly, Union City also has the highest utilization rate (potentially because of Just Cause, which has been argued to increase the willingness to request mediations), thus, providing for the most conservative case to unit ratio. Exhibit 7 – Case to Unit Ratio for Bay Area Rental Mediation Programs San Rafael has approximately 11,500 rental units. Netting out government and below-market rate units (approximately 900), if the City of San Rafael contracted with the District Attorney’s Office, we could expect the program to cost up to $39,400 a year (10,600 units x $400 per mediation x a 0.0093 utilization rate). 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. Unfortunately, the City Attorney’s Office followed up with the Bar Association, and they are not going to have the capacity to provide this service for the City. Therefore, staff is following up with the District Attorney’s Office. The Renter Protection Subcommittee recommends funding a pilot mediation program for one year for up to $40,000. During the pilot period, staff will vet potential cost-cutting measures the City can take (e.g. establishing a rent review board) and permanent revenue sources (e.g. business license fees). SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 RECOMMENDED ACTION: Conduct a public hearing regarding proposed ordinances to add Chapter 10.100, entitled “Rental Housing Dispute Program”, and Chapter 10.105, entitled “Cause Required for Eviction”, to the San Rafael Municipal Code and pass the ordinances to print. ATTACHMENTS: 1. Rental Housing Dispute Program Ordinance (Clean copy) 2. Rental Housing Dispute Program Ordinance (Redlined) 3. Cause Required for Eviction Ordinance (Clean copy) 4. Cause Required for Eviction Ordinance (Redlined) 5. Public Hearing Notice 6. Correspondence DRAFT DATE: May 30, 2019 CLEAN COPY 1 ORDINANCE NO.________ AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL ADDING NEW CHAPTER 10.100 TO THE SAN RAFAEL MUNICIPAL CODE, ENTITLED “RENTAL HOUSING DISPUTE RESOLUTION” THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1. FINDINGS. WHEREAS, over 57,700 people permanently reside in the incorporated City of San Rafael, which population is projected to grow by approximately 11,000 additional residents by 2040, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, 48 percent of the 24,000 housing units in the City of San Rafael are occupied by renters, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, housing overpayment, as defined by the state and federal government, refers to spending more than 30 percent of income on housing; severe overpayment is spending greater than 50 percent of income on housing; and WHEREAS, in 2010, 53 percent of renter households were overpaying for housing and 30% of households were severely overpaying for housing, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, rental prices increased 25% between 2010 and 2013, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, in 2011, 87 percent of the 36,000 persons employed within San Rafael commuted in from outside the city limits, indicating a shortage of local affordable housing opportunities for the community’s workforce, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, the 2013, 2015, and 2017 Homeless Point-in-Time Counts each identify the lack of affordable housing as the leading cause of homelessness in Marin County; and WHEREAS, the 2018-2019 City Council Goals and Objectives includes “exploring protections to increase rental and ownership housing affordability”; and WHEREAS, at the February 4, 2019 City Council Meeting, staff presented potential renter protection policies to address the issue of rental housing affordability; and DRAFT DATE: May 30, 2019 CLEAN COPY 2 WHEREAS, the City Council formed an ad hoc Renter Protections Subcommittee to vet these policy options in more detail, solicit feedback from the public, and incorporate the feedback of local stakeholders; and WHEREAS, on May 4, 2019, the Renter Protections Subcommittee recommended that the City establish a Rental Housing Dispute Resolution program with the goal of maintaining rental housing affordability by addressing significant rent increases through the facilitation of constructive conversations between landlords and tenants in a neutral and accountable environment; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 2. AMENDMENT OF MUNICIPAL CODE. Title 10 of the San Rafael Municipal Code, entitled “Businesses, Professions, Occupations, Industries and Trades” is hereby amended by adding new Chapter 10.100, entitled “Rental Housing Dispute Resolution” to read in its entirety as follows: 10.100.010 Purpose and intent. It is the purpose and intent of this Chapter to encourage certainty and fairness in the residential rental market within the City of San Rafael, in order to promote the health, safety, and general welfare of residents and businesses within the City. This Chapter only governs disputes between Landlords and Tenants of rental Dwelling Units located within the City of San Rafael. 10.100.020 Applicability. The provisions of this Chapter shall apply to all Dwelling Units in the San Rafael city limits, 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 San Rafael Municipal Code, which is hired, rented, or leased to a household within the meaning of California Civil Code Section 1940. Notwithstanding anything to the contrary above, the provisions of this Chapter 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) the 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. DRAFT DATE: May 30, 2019 CLEAN COPY 3 10.100.030 Definitions. For the purpose of this Chapter, unless the context clearly requires different meaning, the words, terms, and phrases set forth in this section shall have the meanings given to them in this section: A. "City" means the City of San Rafael. B. "CDD Director" means the City Community Development Department Director or their designee unless otherwise specified. C. "Designated Service Provider" means a party or organization selected by the CDD 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" for purposes of this Chapter means one or more rooms designed, occupied or intended for occupancy as separate living quarters, with a kitchen, sleeping facilities, and sanitary facilities for the exclusive use of one household , but not including any such unit occupied in whole or in part by the property owner or the property owner’s family members, including parents, children, brothers, sisters, aunts, uncles, nieces, and/or nephews. E. "Guidelines" means any written regulations and forms for the administration and implementation of this Chapter adopted by the CDD Director. F. “Good Faith” participation shall have the meaning given it in Section 10.100.050 below. "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. "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. H. "Mediator" means a person who meets any criteria for conducting Mediations that may be established in the Guidelines. I. "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. J. "Tenant" means a person entitled by written or oral agreement, or by sufferance, to the use or occupancy of a Dwelling Unit. DRAFT DATE: May 30, 2019 CLEAN COPY 4 10.100.040 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 (5%) 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 (5%) within any 12- month period. 10.100.050 Mediation process. A. Designated Service Provider; Costs. The CDD Director shall contract with or designate a Designated Service Provider to provide Mediation services. The Guidelines may include a description of minimum qualifications for the Designated Service Provider and its Mediators. For the first year during which this Chapter is in effect, the City shall pay the entire cost of any Mediation required under this Chapter to the extent funds are available. Thereafter, the costs of the Mediation shall be allocated among the parties and/or other available funding sources as determined by the CDD Director. B. Mediation Requests. (1) Any Tenant or Landlord eligible for Mediation under Section 10.100.040 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 (5%) within any 12-month period, unless the parties otherwise agree in writing, such noticed Rent increase will not be effective until the Mediation concludes or 30 calendar days after the request for Mediation services is made to the Designated Service Provider. C. Two-Step Mediation Process. The Designated Service Provider shall assign a Mediator within ten (10) calendar days of receiving a complete request for Mediation services. The assigned Mediator shall offer a two-step Mediation process as follows: DRAFT DATE: May 30, 2019 CLEAN COPY 5 (1) Within two (2) 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. 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 until the Mediation concludes. (2) The Mediation process shall conclude upon the earlier of: (a) the execution of a legally enforceable, written agreement signed by all parties to the Mediation service under subsection (E) of this Section; (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 days after the request for Mediation services is made to the Designated Service Provider unless the parties agree in writing to extend the Mediation term. 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 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 10.100.050 throughout the entirety of a Mediation process. (b) If a Tenant fails to participate in Good Faith, the Tenant shall be deemed to have withdrawn their request for Mediation, allowing any Rent increase DRAFT DATE: May 30, 2019 CLEAN COPY 6 to be implemented in accordance with the notice requirements identified in California Civil Code section 827. E. Mediation Agreements. (1) Any agreement reached by the parties in Mediation must: (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 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. 10.100.060 Rights Under State and Federal Law Not Affected. A. Nothing in this Chapter shall be deemed to affect any rights or remedies of a Tenant provided by State or Federal law, including but not limited to those related to: (1) Tenant’s right to quiet enjoyment of the rental premises. (2) The duty of a landlord to make a dwelling unit tenantable and repair all subsequent dilapidations that render it untenantable including, but not limited to, providing: (a) Effective waterproofing/weather protection for roof, exterior walls, windows and doors. (b) Plumbing and gas facilities conforming to state and local law at the time of installation, kept in good working order. (c) A water supply providing hot and cold running water and approved under applicable law. DRAFT DATE: May 30, 2019 CLEAN COPY 7 (d) Heating conforming to applicable law at the time of installation, kept in good working order. (e) An electrical system, including lighting, wiring and equipment, conforming with applicable law at the time of installation, kept in good working order. [ (f) Building grounds kept clean, sanitary and free from accumulations of debris, garbage, rodents and vermin. (g) Adequate numbers of garbage/rubbish receptacles kept clean and in good repair. (h) Floors, stairways and railings kept in good repair. (i) Code compliant locks on certain windows and doors. (3) Prohibited Landlord conduct including, but not limited to: (a) Discrimination in housing. (b) Retaliation, threats or other coercive conduct, including threats or discrimination on basis of immigration or citizenship status. (c) Unauthorized entry into Tenant’s unit. (d) Unauthorized taking of Tenant’s personal property. (4) Rights concerning payment and return of rent and security deposits. (5) Rights to required notice prior to termination of rental agreement. (6) Rights under Unlawful Detainer statutes, including prohibitions against termination based on immigration or citizenship status. B. Nothing in Subsection (A) of this Section prohibits the lawful eviction of a Tenant in accordance with California Civil Code section 1946.1 or by any other appropriate legal means. 10.100.070 Civil remedies. A. Injunctive relief. Any aggrieved person may enforce Sections 10.100.050(D) or 10.100.080 of this Chapter by means of a civil injunctive action. Any person who commits, or proposes to commit, an act in violation of Sections 10.100.050(D) or 10.100.080 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. DRAFT DATE: May 30, 2019 CLEAN COPY 8 B. Civil Liability. Any person who violates Sections 10.100.050(D) or 10.100.080 of this Chapter or who aids in the violation of Sections 10.100.050(D) or 10.100.080 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 and costs of action. Civil actions filed pursuant to this section must be filed within one year of the events giving rise to the alleged cause of action. C. Attorney’s fees sought in connection with Section 10.100.080 shall only be awarded if the party 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 and/or refunding or crediting to Tenant a past rent increase, and such cure is not promptly effected. 10.100.080 Notice of Tenant rights. A. Notice Requirement. Landlords must provide to each Tenant a notice of Tenant rights under this Chapter that describes the Mediation service and how to request service. The required notice may be printed conspicuously within the lease or rental agreement or Notice of Rent increase or may be provided on a separate form. A form for providing such notice may be issued in the Guidelines, and the use of such form shall be deemed to comply with the substantive requirements of this Subsection (A). B. When Notice Required. Landlords must provide to Tenants the notice of Tenant rights under Subsection (A) of this Section in the following circumstances: (1) When entering a lease or rental agreement; (2) When renewing a lease or rental agreement; and (3) When providing notice of a Rent increase. C. Language of Notice. If the Tenant's rental agreement was negotiated in a language other than English, then the Landlord shall provide the notices required under this Section in the language in which the rental agreement was negotiated. D. Delivery of Notice. The notices required by this Section may be served by any of the following methods: (1) By delivering a copy to the Tenant personally. (2) If the Tenant is absent from his or her place of residence, and from his or her usual place of business, by leaving a copy with some person of suitable age and discretion at either place and sending a copy through the mail addressed to the Tenant at his or her place of residence. (3) If such place of residence and business cannot be ascertained, or a person of suitable age or discretion there cannot be found, then by affixing a copy in a DRAFT DATE: May 30, 2019 CLEAN COPY 9 conspicuous place on the property, and also delivering a copy to a person there residing, if such person can be found; and also sending a copy through the mail addressed to the Tenant at the place where the property is situated. Service upon a subtenant may be made in the same manner. E. Failure to Provide Notice. 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. DIVISION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). The City Council 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 San Rafael, which is solely an administrative process resulting in no physical changes to the environment. DIVISION 5. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would 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. DIVISION 6. EFFECTIVE DATE; PUBLICATION. This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published, and circulated in the City of San Rafael, and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. __________________________ GARY O. PHILLIPS, Mayor ATTEST: ______________________________ LINDSAY LARA, City Clerk DRAFT DATE: May 30, 2019 CLEAN COPY 10 The foregoing Ordinance No.______ was read and introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the _______ day of ____________________, 2019 and ordered passed to print by the following vote, to wit: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the _______ day of ____________________, 2019. ______________________________ LINDSAY LARA, City Clerk DRAFT DATE: May 30, 2019 REDLINED COPY 1 ORDINANCE NO.________ AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL ADDING NEW CHAPTER 10.100 TO THE SAN RAFAEL MUNICIPAL CODE, ENTITLED “RENTAL HOUSING DISPUTE RESOLUTION” THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1. FINDINGS. WHEREAS, over 57,700 people permanently reside in the incorporated City of San Rafael, which population is projected to grow by approximately 11,000 additional residents by 2040, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, 48 percent of the 24,000 housing units in the City of San Rafael are occupied by renters, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, housing overpayment, as defined by the state and federal government, refers to spending more than 30 percent of income on housing; severe overpayment is spending greater than 50 percent of income on housing; and WHEREAS, in 2010, 53 percent of renter households were overpaying for housing and 30% of households were severely overpaying for housing, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, rental prices increased 25% between 2010 and 2013, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, in 2011, 87 percent of the 36,000 persons employed within San Rafael commuted in from outside the city limits, indicating a shortage of local affordable housing opportunities for the community’s workforce, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, the 2013, 2015, and 2017 Homeless Point-in-Time Counts each identify the lack of affordable housing as the leading cause of homelessness in Marin County; and WHEREAS, the 2018-2019 City Council Goals and Objectives includes “exploring protections to increase rental and ownership housing affordability”; and WHEREAS, at the February 4, 2019 City Council Meeting, staff presented potential renter protection policies to address the issue of rental housing affordability; and DRAFT DATE: May 30, 2019 REDLINED COPY 2 WHEREAS, the City Council formed an ad hoc Renter Protections Subcommittee to vet these policy options in more detail, solicit feedback from the public, and incorporate the feedback of local stakeholders; and WHEREAS, on May 4, 2019, the Renter Protections Subcommittee recommended that the City establish a Rental Housing Dispute Resolution program with the goal of maintaining rental housing affordability by addressing significant rent increases through the facilitation of constructive conversations between landlords and tenants in a neutral and accountable environment; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 2. AMENDMENT OF MUNICIPAL CODE. Title 10 of the San Rafael Municipal Code, entitled “Businesses, Professions, Occupations, Industries and Trades” is hereby amended by adding new Chapter 10.100, entitled “Rental Housing Dispute Resolution” to read in its entirety as follows: 10.100.010 Purpose and intent. It is the purpose and intent of this Chapter to encourage certainty and fairness in the residential rental market within the City of San Rafael, in order to promote the health, safety, and general welfare of residents and businesses within the City. This Chapter only governs disputes between Landlords and Tenants of rental Dwelling Units located within the City of San Rafael. 10.100.020 Applicability. The provisions of this Chapter shall apply to all Dwelling Units in the San Rafael city limits that contain 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 San Rafael Municipal Code, 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 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) the 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. DRAFT DATE: May 30, 2019 REDLINED COPY 3 10.100.030 Definitions. For the purpose of this Chapter, unless the context clearly requires different meaning, the words, terms, and phrases set forth in this section shall have the meanings given to them in this section: A. "City" means the City of San Rafael. B. "CDD Director" means the City Community Development Department Director or their designee unless otherwise specified. C. "Designated Service Provider" means a party or organization selected by the CDD 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 1940 and San Rafael Municipal Code section 14.03.030, including those dwellings defined in SRMC 13.030.030."Dwelling unit" for purposes of this Chapter means one or more rooms designed, occupied or intended for occupancy as separate living quarters, with a kitchen, sleeping facilities, and sanitary facilities for the exclusive use of one household , but not including any such unit occupied in whole or in part by the property owner or the property owner’s family members, including parents, children, brothers, sisters, aunts, uncles, nieces, and/or nephews. E. "Guidelines" means any written regulations and forms for the administration and implementation of this Chapter adopted by the CDD Director. All forms and notices called for to facilitate the administration and implementation of this Chapter shall be adopted by the Director, with approval by the City Attorney, and included in the Guidelines. F. “Good Faith” participation shall have the meaning given it in Section 10.100.050 below. 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. HG. "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 DRAFT DATE: May 30, 2019 REDLINED COPY 4 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. IH. "Mediator" means a person who meets any criteria for conducting Mediations that may be established in the Guidelines. JI. "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. KJ. "Tenant" means a person entitled by written or oral agreement, or by sufferance, to the use or occupancy of a Dwelling Unit. 10.100.040 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 (5%) 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 (5%) within any 12- month period. 10.100.050 Mediation process. A. Designated Service Provider; Costs. The CDD Director shall contract with or designate a Designated Service Provider to provide Mediation services. The Guidelines may include a description of minimum qualifications for the Designated Service Provider and its Mediators. For the first year during which this Chapter is in effect, the City shall pay the entire cost of any Mediation required under this Chapter to the extent funds are available. Thereafter, the costs of the Mediation shall be allocated among the parties and/or other available funding sources as determined by the CDD Director. B. Mediation Requests. (1) Any Tenant or Landlord eligible for Mediation under Section 10.100.040 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 DRAFT DATE: May 30, 2019 REDLINED COPY 5 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 (5%) within any 12-month period, unless the parties otherwise agree in writing, such noticed Rent increase will not be effective until the Mediation concludes or 30 calendar days after the request for Mediation services is made to the Designated Service Provider. C. Two-Step Mediation Process. The Designated Service Provider shall assign a Mediator within ten (10) 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 (2) 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. 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 until the Mediation concludes. (2) The Mediation process shall conclude upon the earlier of: (a) the execution of a legally enforceable, written agreement signed by all parties to the Mediation service under Section 10.100.050subsection (E) of this Section; (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 days after the request for Mediation services is made to the Designated Service Provider unless the parties agree in writing to extend the Mediation term. If no legally enforceable, written agreement DRAFT DATE: May 30, 2019 REDLINED COPY 6 is reached, the Mediator shall prepare and distribute a nonbinding Mediation statement under Section 10.100.050(E). 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 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 10.100.030 and 10.100.050 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 shall be deemed to havehas 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. E. Mediation Agreements. (1) Any agreement reached by the parties in Mediation must: (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 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. DRAFT DATE: May 30, 2019 REDLINED COPY 7 (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. 10.100.060 Anti-harassment and other prohibited activitiesRights Under State and Federal Law Not Affected. A. Nothing in this Chapter shall be deemed to affect any rights or remedies of a Tenant provided by State or Federal law, including but not limited to those related to: (1) Tenant’s right to quiet enjoyment of the rental premises. (2) The duty of a landlord to make a dwelling unit tenantable and repair all subsequent dilapidations that render it untenantable including, but not limited to, providing: (a) Effective waterproofing/weather protection for roof, exterior walls, windows and doors. (b) Plumbing and gas facilities conforming to state and local law at the time of installation, kept in good working order. (c) A water supply providing hot and cold running water and approved under applicable law. (d) Heating conforming to applicable law at the time of installation, kept in good working order. (e) An electrical system, including lighting, wiring and equipment, conforming with applicable law at the time of installation, kept in good working order. [ (f) Building grounds kept clean, sanitary and free from accumulations of debris, garbage, rodents and vermin. (g) Adequate numbers of garbage/rubbish receptacles kept clean and in good repair. (h) Floors, stairways and railings kept in good repair. (i) Code compliant locks on certain windows and doors. (3) Prohibited Landlord conduct including, but not limited to: (a) Discrimination in housing. (b) Retaliation, threats or other coercive conduct, including threats or discrimination on basis of immigration or citizenship status. DRAFT DATE: May 30, 2019 REDLINED COPY 8 (c) Unauthorized entry into Tenant’s unit. (d) Unauthorized taking of Tenant’s personal property. (4) Rights concerning payment and return of rent and security deposits. (5) Rights to required notice prior to termination of rental agreement. (6) Rights under Unlawful Detainer statutes, including prohibitions against termination based on immigration or citizenship status. 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 amenities and services agreed to under a lease or rental agreement, including but not limited to utility services; (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; (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) Commit 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 DRAFT DATE: May 30, 2019 REDLINED COPY 9 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 Subsection (A) of this Section prohibits the lawful eviction of a Tenant in accordance with California Civil Code section 1946.1 or by any other appropriate legal means. 10.100.070 Civil remedies. A. Injunctive relief. Any aggrieved person may enforce the provisionsSections 10.100.050(D) or 10.100.080 of this Chapter by means of a civil injunctive action. Any person who commits, or proposes to commit, an act in violation of Sections 10.100.050(D) or 10.100.080 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 Sections 10.100.050(D) or 10.100.080 of this Chapter or who aids in the violation of any provisionsSections 10.100.050(D) or 10.100.080 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, and 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. C. Attorney’s fees sought in connection with Section 10.100.080 shall only be awarded if the party 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 and/or refunding or crediting to Tenant a past rent increase, and such cure is not promptly effected. 10.100.080 Notice of Tenant rights. A. Notice Requirement. Landlords must provide to each Tenant a notice of Tenant rights under this Chapter that describes the Mediation service and how to request service. The required notice may be printed conspicuously within the lease or rental agreement or Notice of Rent increase or may be provided on a separate form.; a A form for providing such notice may be issued in the Guidelines, and the use of such form shall be deemed to comply with the substantive requirements of this Subsection (A). DRAFT DATE: May 30, 2019 REDLINED COPY 10 B. When Notice Required. Landlords must provide to Tenants the notice of Tenant rights under Subsection (A) of this Section in the following circumstances: (1) Within 30 calendar days of enactment of this Chapter; (2) When entering a lease or rental agreement; (32) When renewing a lease or rental agreement; and (43) When providing notice of a Rent increase.; and (5) At such times as required by the City, which may include, but is not limited to, when this Chapter is significantly amended. C. Language of Notice. All notices provided under this Section If the Tenant's rental agreement was negotiated in a language other than English, then the Landlord shall provide the notices required under this Section in the language in which the rental agreement was negotiated. D. Delivery of Notice. The notices required by this Section may be served by any of the following methods: (1) By delivering a copy to the Tenant personally. (2) If the Tenant is absent from his or her place of residence, and from his or her usual place of business, by leaving a copy with some person of suitable age and discretion at either place and sending a copy through the mail addressed to the Tenant at his or her place of residence. (3) If such place of residence and business cannot be ascertained, or a person of suitable age or discretion there cannot be found, then by affixing a copy in a conspicuous place on the property, and also delivering a copy to a person there residing, if such person can be found; and also sending a copy through the mail addressed to the Tenant at the place where the property is situated. Service upon a subtenant may be made in the same manner. shall be provided in English, Spanish and Vietnamese, in the translated form made available by the City. 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 City’s ability to provide such services. In the event that the City 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. DRAFT DATE: May 30, 2019 REDLINED COPY 11 DE. Failure to Provide Notice. 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 Ttenant. DIVISION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). The City Council 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 San Rafael, which is solely an administrative process resulting in no physical changes to the environment. DIVISION 5. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would 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. DIVISION 6. EFFECTIVE DATE; PUBLICATION. This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published, and circulated in the City of San Rafael, and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. __________________________ GARY O. PHILLIPS, Mayor ATTEST: ______________________________ LINDSAY LARA, City Clerk DRAFT DATE: May 30, 2019 REDLINED COPY 12 The foregoing Ordinance No.______ was read and introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the _______ day of ____________________, 2019 and ordered passed to print by the following vote, to wit: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the _______ day of ____________________, 2019. ______________________________ LINDSAY LARA, City Clerk DRAFT DATE: May 29, 2019 CLEAN COPY 1 ORDINANCE NO.________ AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL ADDING NEW CHAPTER 10.105 TO THE SAN RAFAEL MUNICIPAL CODE, ENTITLED “CAUSE REQUIRED FOR EVICTION” THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1. FINDINGS. WHEREAS, over 57,700 people permanently reside in the incorporated City of San Rafael, which population is projected to grow by approximately 11,000 additional residents by 2040, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, 48 percent of the 24,000 housing units in the City of San Rafael are occupied by renters, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, vacancy rate measures the overall housing availability in a community and is often a good indicator of how efficiently for-sale and rental housing units are meeting the current demand for housing; a low vacancy rate may indicate that households are having difficulty in finding housing that is affordable, which can lead to housing overpayment and/or overcrowding; and WHEREAS, housing overpayment, as defined by the state and federal government, refers to spending more than 30 percent of income on housing; severe overpayment is spending greater than 50 percent of income on housing; and WHEREAS, in 2010, 53 percent of renter households were overpaying for housing and 30% of households were severely overpaying for housing, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, if a renter receives an eviction notice in a rental market with a low vacancy rate, it can be very difficult to find new housing and displacement is more likely to occur; and WHEREAS, as of 2018, the rental vacancy rate in Marin County was below 3%, according to the Marin County Community Development Agency; a healthy rate is closer to 6% to 7%; and WHEREAS, the 2013, 2015, and 2017 Homeless Point-in-Time Counts each identify the lack of affordable housing as the leading cause of homelessness in Marin County; and WHEREAS, the 2018-2019 City Council Goals and Objectives includes “exploring protections to increase rental and ownership housing affordability”; and DRAFT DATE: May 29, 2019 CLEAN COPY 2 WHEREAS, at the February 4, 2019 City Council Meeting, staff presented potential renter protection policies to address the issue of rental housing affordability and stability; and WHEREAS, the City Council formed an ad hoc Renter Protections Subcommittee to vet these policy options in more detail, solicit feedback from the public, and incorporate the feedback of local stakeholders; and WHEREAS, on May 4, 2019, the Renter Protections Subcommittee recommended that the City establish a Just Cause for Eviction program with the goal of promoting greater awareness of the rights and responsibilities of landlords and tenants and to provide a clear and transparent process for evictions and lease terminations; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 2. AMENDMENT OF MUNICIPAL CODE. Title 10 of the San Rafael Municipal Code, entitled “Businesses, Professions, Occupations, Industries and Trades” is hereby amended by adding new Chapter 10.105, entitled “Cause Required for Eviction” to read in its entirety as follows: 10.105.010 Purpose and intent. It is the purpose and intent of this Chapter to encourage certainty and fairness in the residential rental market within the City of San Rafael in order to promote the health, safety, and general welfare of residents and property owners within the City. 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 the City. 10.105.020 Applicability. A. General Application. Except as provided in Section 10.105.020(B) below, the provisions of this Chapter shall apply to all properties in the City of San Rafael that contain at least three: (1) Dwelling Units 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 San Rafael Municipal Code, which is hired, rented, or leased to a household within the meaning of California Civil Code section 1940. B. Exceptions. Notwithstanding anything to the contrary above, the provisions of this Chapter 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 DRAFT DATE: May 29, 2019 CLEAN COPY 3 (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 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 Dwelling Unit occupied by a Tenant employed by the Landlord for the purpose of managing the property; or (4) Any Dwelling Unit occupied in whole or in part by the property owner or the property owner’s family members, including parents, children, brothers, sisters, aunts, uncles, nieces, and/or nephews. 10.105.030 Definitions. For the purpose of this Chapter, unless the context clearly requires a different meaning, the words, terms, and phrases set forth in this section shall have the meanings given to them in this section: A. "City" means the City of San Rafael. B. "CDD Director" means the City Community Development Department Director or their designee unless otherwise specified. C. Dwelling unit" means one or more rooms designed, occupied or intended for occupancy as separate living quarters , with a kitchen, sleeping facilities, and sanitary facilities for the exclusive use of one household. D. "For Cause" termination has the meaning provided in subsection (B) of Section 10.105.040. E. "Guidelines" means any written regulations and forms for the administration and implementation of this Chapter adopted by the CDD 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 10.105.040. H. "Notice of Termination" means a written notice that includes all of the components identified in Section 10.105.050. 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 DRAFT DATE: May 29, 2019 CLEAN COPY 4 a Dwelling Unit and the housing services provided therewith, or for the assignment of a rental agreement for a Dwelling Unit. 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. 10.105.040 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 10.04 of this Code; and (2) the Landlord has previously provided the Tenant with the Notice of Tenant Rights as required by Section 10.100.070 of this Code, or can otherwise demonstrate timely, good faith substantial compliance with the noticing requirements listed therein and in this Chapter; and (3) the Landlord has not accepted and will not accept rent or any other considerat ion 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 (4) the termination qualifies as a For Cause or No Fault termination, as defined in this Section. 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, Public Law 102-322, as amended: (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 so as to give rise to Landlord’s rights and obligations as set forth in California Code of Civil Procedure section 1161; (3) Tenant Illegal Activities. Tenant has been 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 DRAFT DATE: May 29, 2019 CLEAN COPY 5 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 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, provided, however, that such right to cure may not be exercised more than one time in any twelve-month period. (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 interfere with 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 interfere with 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 Guidelines adopted by the CDD Director; (6) Notwithstanding the limitations of California Code of Civil Procedure Section 1161.3, as amended, an 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 terminat ion 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; DRAFT DATE: May 29, 2019 CLEAN COPY 6 (2) Landlord Will Move in to Dwelling Unit. Landlord, or one of Landlord's family members, including parents, children, brothers, sisters, aunts, uncles, nieces, and/or nephews, 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 applied for or 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 law; (4) Tenant’s Refusal to Execute Lease. Tenant refuses to accept a lease at the outset of the tenancy, or to renew a lease on terms substantially similar to the Tenant’s existing lease. 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. 10.105.050 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 (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 10.105.040 of this Chapter. DRAFT DATE: May 29, 2019 CLEAN COPY 7 B. Language of Notice of Termination. If the Tenant's rental agreement was negotiated in a language other than English, then the Landlord shall provide 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. 10.105.060 Extended notice for certain No Fault terminations. Each Tenant household whose tenancy is terminated pursuant to subsection (C)(1) of Section 10.105.040 (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. 10.105.070 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 10.105.040 and delivery of a completed Notice of Termination in accordance with Section 10.105.050, shall be an affirmative defense to an unlawful detainer action by Landlord. B. Civil Liability. Whenever a Landlord attempts to prevent a tenant from 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 or the Tenant Household 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 Section 10.105.040, or has failed to substantially comply with Section 10.105.050, 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 the foregoing provisions. C. Civil Action to Determine Liability. Any Tenant may bring a civil action to determine the applicability of this Chapter to the tenancy. D. 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. 10.105.080 Compliance with other local regulations The requirements of this Chapter shall be in addition to and not in lieu of any other applicable laws and regulations. DRAFT DATE: May 29, 2019 CLEAN COPY 8 10.105.090 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. DIVISION 3. ORDINANCE REVIEW. The regulations adopted by this Ordinance shall be reviewed by the City Council after they have been in effect for one year. DIVISION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). The City Council 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 San Rafael, which is solely an administrative process resulting in no physical changes to the environment. DIVISION 5. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would 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. DIVISION 6. EFFECTIVE DATE; PUBLICATION. This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published, and circulated in the City of San Rafael, and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. __________________________ GARY O. PHILLIPS, Mayor DRAFT DATE: May 29, 2019 CLEAN COPY 9 ATTEST: ______________________________ LINDSAY LARA, City Clerk The foregoing Ordinance No.______ was read and introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the _______ day of ____________________, 2019 and ordered passed to print by the following vote, to wit: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the _______ day of ____________________, 2019. ______________________________ LINDSAY LARA, City Clerk DRAFT DATE: May 29, 2019 REDLINED COPY 1 ORDINANCE NO.________ AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL ADDING NEW CHAPTER 10.105 TO THE SAN RAFAEL MUNICIPAL CODE, ENTITLED “CAUSE REQUIRED FOR EVICTION” THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1. FINDINGS. WHEREAS, over 57,700 people permanently reside in the incorporated City of San Rafael, which population is projected to grow by approximately 11,000 additional residents by 2040, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, 48 percent of the 24,000 housing units in the City of San Rafael are occupied by renters, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, vacancy rate measures the overall housing availability in a community and is often a good indicator of how efficiently for-sale and rental housing units are meeting the current demand for housing; a low vacancy rate may indicate that households are having difficulty in finding housing that is affordable, which can lead to housing overpayment and/or overcrowding; and WHEREAS, housing overpayment, as defined by the state and federal government, refers to spending more than 30 percent of income on housing; severe overpayment is spending greater than 50 percent of income on housing; and WHEREAS, in 2010, 53 percent of renter households were overpaying for housing and 30% of households were severely overpaying for housing, as identified in Appendix B: Background Report of the 2015-2023 San Rafael Housing Element; and WHEREAS, if a renter receives an eviction notice in a rental market with a low vacancy rate, it can be very difficult to find new housing and displacement is more likely to occur; and WHEREAS, as of 2018, the rental vacancy rate in Marin County was below 3%, according to the Marin County Community Development Agency; a healthy rate is closer to 6% to 7%; and WHEREAS, the 2013, 2015, and 2017 Homeless Point-in-Time Counts each identify the lack of affordable housing as the leading cause of homelessness in Marin County; and WHEREAS, the 2018-2019 City Council Goals and Objectives includes “exploring protections to increase rental and ownership housing affordability”; and DRAFT DATE: May 29, 2019 REDLINED COPY 2 WHEREAS, at the February 4, 2019 City Council Meeting, staff presented potential renter protection policies to address the issue of rental housing affordability and stability; and WHEREAS, the City Council formed an ad hoc Renter Protections Subcommittee to vet these policy options in more detail, solicit feedback from the public, and incorporate the feedback of local stakeholders; and WHEREAS, on May 4, 2019, the Renter Protections Subcommittee recommended that the City establish a Just Cause for Eviction program with the goal of promoting greater awareness of the rights and responsibilities of landlords and tenants and to provide a clear and transparent process for evictions and lease terminations; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 2. AMENDMENT OF MUNICIPAL CODE. Title 10 of the San Rafael Municipal Code, entitled “Businesses, Professions, Occupations, Industries and Trades” is hereby amended by adding new Chapter 10.105, entitled “Cause Required for Eviction” to read in its entirety as follows: 10.105.010 Purpose and intent. It is the purpose and intent of this Chapter to encourage certainty and fairness in the residential rental market within the City of San Rafael in order to promote the health, safety, and general welfare of residents and property owners within the City. 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 the City. 10.105.020 Applicability. A. General Application. Except as provided in Section 10.105.020(B) below, the provisions of this Chapter shall apply to all properties in the City of San Rafael 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 San Rafael Municipal Code, 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 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 DRAFT DATE: May 29, 2019 REDLINED COPY 3 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 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 second dwelling unit or junior dwelling unit, each as defined in San Rafae l Municipal Code Section 14.03.030; or (4) Any Dwelling Unit occupied by a Tenant employed by the Landlord for the purpose of managing the property.; or (4) Any Dwelling Unit occupied in whole or in part by the property owner or the property owner’s family members, including parents, children, brothers, sisters, aunts, uncles, nieces, and/or nephews. 10.105.030 Definitions. For the purpose of this Chapter, unless the context clearly requires a different meaning, the words, terms, and phrases set forth in this section shall have the meanings given to them in this section: A. "City" means the City of San Rafael. B. “Director" means the City _______________________ Director or their designee unless otherwise specified. "CDD Director" means the City Community Development Department Director or their 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.Dwelling unit" means one or more roo ms designed, occupied or intended for occupancy as separate living quarters , for the exclusive use of one household, with a kitchen, sleeping facilities, and sanitary facilities for the exclusive use of one household. D. "For Cause" termination has the meaning provided in subsection (B) of Section 10.105.040. E. "Guidelines" means any written regulations for the administration and implementation of this Chapter adopted by the ___________________ Director. "Guidelines" means any written regulations and forms for the administration and implementation of this Chapter adopted by the CDD Director. DRAFT DATE: May 29, 2019 REDLINED COPY 4 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 (DC) of Section 10.105.040. H. "Notice of Termination" means a written notice that includes all of the components identified in Section 10.105.050. 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. 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. 10.105.040 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 10.04 of this Code; and (2) the Landlord has previously provided the Tenant with the Notice of Tenant Rights as required by Section 10.100.080 070 of this Code, or can otherwise demonstrate timely, good faith substantial compliance with the noticing requirements listed therein and in this Chapter; and (3) the Landlord served a Notice of Termination to the Tenant, in the form required by Section 10.105.050 of this Chapter, and that the Landlord delivered a true and accurate copy of the Notice of Termination to the __________________Director within ten (10) calendar days of delivery to the Tenant(s); and (43) 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 DRAFT DATE: May 29, 2019 REDLINED COPY 5 (54) 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 10.105.080 of this Chapter; and (7) the Landlord has complied with the requirements listed in Section 10.105.090 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, Public Law 102-322, as amended: (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 so as to give rise to Landlord’s rights and obligations as set forth in 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 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, provided, however, that such right to cure may not be exercised more than one time in any twelve-month period. (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 DRAFT DATE: May 29, 2019 REDLINED COPY 6 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 interfere with 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 interfere with 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 federal law, and may be further defined in the regulationsGuidelines adopted by the CDD Director.; (6) Notwithstanding the limitations of California Code of Civil Procedure Section 1161.3, as amended, an 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 terminateion 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 family members, including parents, or children, brothers, sisters, aunts, uncles, nieces, and/or nephews, 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 applied for or 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 lawhealth and safety codes; DRAFT DATE: May 29, 2019 REDLINED COPY 7 (4) Tenant’s Refusal to Execute Lease. Tenant refuses to accept a lease at the outset of the tenancy, or to renew a lease on terms substantially similar to the Tenant’s existing lease. 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. 10.105.050 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 (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 10.105.040 of this Chapter. 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 toshall 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 City. Landlords must provide a copy of the Notice of Termination to the City _______________________Department 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 10.105.040(B)(2), the Landlord must attach a copy of the applicable rental agreement or contract to the Notice of Termination when submitting the Notice of Termination to the City. Notices of Termination may be submitted via the City’s website for such Notices or as otherwise specified in the Guidelines. DRAFT DATE: May 29, 2019 REDLINED COPY 8 10.105.060 Extended notice for certain No Fault terminations. Each Tenant household whose tenancy is terminated pursuant to subsection (C)(1) of Section 10.105.040 (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. 10.105.070 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 10.105.040 and delivery of a completed Notice of Termination in accordance with Section 10.105.050, shall be an affirmative defense to an unlawful detainer action by Landlord. B. Civil Liability. Whenever a Landlord attempts to prevent a tenant from acquiring any rights under this chapterChapter, 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 or the Tenant Household may institute a civil proceeding for money damages or injunctive relief, or both. This section Section creates a private right of action to enforce all terms, rights, and obligations under this chapterChapter. Whoever is found to have violated this chapter Section 10.105.040, or has failed to substantially comply with Section 10.105.050, 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 chapterthe foregoing provisions. C. Civil Action to Determine Liability. Any Tenant may bring a civil action to determine the applicability of this Chapter to the tenancy. D. 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. 10.105.080 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 City. Each addition to the registry must include, at a minimum, the following information provided u nder penalty of perjury and certified to be true as of November 1 of the preceding year: DRAFT DATE: May 29, 2019 REDLINED COPY 9 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 nam e 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 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 10.04 of this Code. 10.105.080 Compliance with other local regulations The requirements of this Chapter shall be In addition to the requirements of this Chapter, properties subject to the provisions of this Chapter shall also comply with all other applicable regulations, including but not necessarily limited to maintaining a valid business license.in addition to and not in lieu of any other applicable laws and regulations. 10.105.090 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. DIVISION 3. ORDINANCE REVIEW. The regulations adopted by this Ordinance shall be reviewed by the City Council after they have been in effect for one year. DIVISION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). The City Council 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 San Rafael, which is solely an administrative process resulting in no physical changes to the environment. DIVISION 5. SEVERABILITY. DRAFT DATE: May 29, 2019 REDLINED COPY 10 If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would 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. DIVISION 6. EFFECTIVE DATE; PUBLICATION. This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published, and circulated in the City of San Rafael, and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. __________________________ GARY O. PHILLIPS, Mayor ATTEST: ______________________________ LINDSAY LARA, City Clerk The foregoing Ordinance No.______ was read and introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the _______ day of ____________________, 2019 and ordered passed to print by the following vote, to wit: AYES: Councilmembers NOES: Councilmembers ABSENT: Councilmembers and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the _______ day of ____________________, 2019. DRAFT DATE: May 29, 2019 REDLINED COPY 11 ______________________________ LINDSAY LARA, City Clerk Legal No. Marin Independent Journal 4000 Civic Center Drive, Suite 301 San Rafael, CA 94903 415-382-7335 legals@marinij.com I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years, and not a party to or interested in the above matter. I am the principal clerk of the printer of the MARIN INDEPENDENT JOURNAL, a newspaper of general circulation, printed and published daily in the County of Marin, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of Marin, State of California, under date of FEBRUARY 7, 1955, CASE NUMBER 25566; that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: 05/24/2019 I certify (or declare) under the penalty of perjury that the foregoing is true and correct. Dated this 24th day of May, 2019. PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of Marin Signature PROOF OF PUBLICATION 0006344545 2070419 CITY OF SAN RAFAEL CITY OF SAN RAFAEL CITY CLERK, ROOM 209 1400 FIFTH AVENUE, SAN RAFAEL, CA 94901 SAN RAFAEL, CA 94915-1560 r.BP7-11/10/16 1 From:Crisalia Calderon To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 7:10:20 PM Dear City Clerk Lindsay Lara, My name is Crisalia, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Crisalia From:Derbin sis To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 8:53:39 PM Dear City Clerk Lindsay Lara, My name is Derbin, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Derbin From:Edvar Camara To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Tuesday, May 07, 2019 3:29:04 PM Dear City Clerk Lindsay Lara, My name is Edvar, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Edvar From:Federico Rodas To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 9:56:02 PM Dear City Clerk Lindsay Lara, My name is Federico, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Federico From:Fidelia Vicente To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 7:33:54 PM Dear City Clerk Lindsay Lara, My name is Fidelia, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Fidelia From:Harlin Alvarez To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 7:24:37 PM Dear City Clerk Lindsay Lara, My name is Harlin Alvarez, and I am a resident of Marin County San Rafael We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Harlin From:Iván Lázaro To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 8:02:29 PM Dear City Clerk Lindsay Lara, My name is Iván, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Iván 5/23/2019 Just Cause Feedback - Google Docs https://docs.google.com/document/d/1V1Hr8-QcWuY5sAjmJ51Z_8cYqM-rcUANB66jLxw3NbM/edit 1/5 To Mayor Garry Phillips, Vice Mayor Andrew Cuyugan McCullough, City Council Members John Gamblin, Kate Colin, Maribeth Bushey, Director of Homeless Planning and Outreach Andrew Henning. From Victor Kunin, 211 Marin St, San Rafael, CA 94901 RE: Proposed Just Cause Eviction ordinance Dear Sir/Madam, I’m a San Rafael resident and an owner of a small apartment building in Gerstle Park.In this letter I express my opposition to the proposed Just Cause eviction ordinance. While I understand the desire to protect tenants,the incentives that the ordinance creates for the market must be considered.The effects of similar legislations are well-studied and the projected consequences for the city are severe.The City Council formed a Subcommittee tasked with examining this ordinance.This subcommittee has representatives from tenant advocates,city officials and a real estate broker.However,it does not include an economist that can examine incentives on the market and project the effects. Prior to accepting the ordinance I kindly ask the Council to commission and consider feedback from a professional economist specializing in tenant protection legislation . Please do not put our city in jeopardy by overlooking the economic consequences and market distortions created by the proposed policy. Just Cause Eviction There is no evidence that Just Cause legislation is needed .No evidence has been presented that local tenants are being unfairly or “arbitrarily”evicted.In contrast,evidence shows a continuous decline in evictions every year for the last 8 years.Eviction rates are at historic lows:less than 1%of the total rentals in the County.As the ordinance will bring profound deleterious effects to the city (see below), the cost is significant while the benefit is unclear. Reasons for Just Cause are extremely restrictive .According to the proposed ordinance, none of the tenant’s activities specified below justify an eviction: ●Cooking meth on property that was later ‘cured’. ●Storage or handling of hazardous materials endangering other tenants on the property. 1 5/23/2019 Just Cause Feedback - Google Docs https://docs.google.com/document/d/1V1Hr8-QcWuY5sAjmJ51Z_8cYqM-rcUANB66jLxw3NbM/edit 2/5 ●Property damage, including intentional. ●Sublet to third party. ●Conversion to short-term rental. ●Conversion of premises for non-residential purpose. ●Overcrowding. ●Unsanitary conditions created by tenants. ●Original tenant moving out. ●Habitually late rent payments. Small business owners will be hit.The Just Cause ordinance leaves owners unprotected against malicious tenants.One ‘solution’proposed by the City Council members to prepare themselves for this ordinance is for owners to ‘lawyer up’and craft every possible violation into the contract.However,most owners of rental properties in Marin are small,owning and renting out only a few units.Many small owners can’t afford lawyers.Those owners are using standard residential contracts,many of them not adjusted specifically for local ordinances.This will make the bulk of San Rafael owners unprotected and feel threatened by the new ordinance. Gentrification and homelessness increase .A recent wave of tenant protection ordinances in the Bay Area is being followed by a wave of homelessness increase .This is despite stable rent prices in over a year,solid job growth and expanding economy in the region.As San Rafael doesn’t have yet Just Cause ordinances,here the homelessness is actually decreasing.The proposed Just Cause ordinance will make sure San Rafael will catch up with the region and will experience the growing homeless population. Consider this.At our property in San Rafael we accepted as tenants people with problematic credit history;convicted criminals on parole;refugees with no credit history.This was done without coordination with any government program.In the absence of Just Cause ordinance we judged the risk to be manageable.Yet,the Just Cause ordinance dramatically ups the risks of taking a tenant with less than stellar record.We had no choice but to refuse to take tenants with similar background at our property in San Francisco,because of the Just Cause ordinance there. If Just Cause ordinance is approved, we will have to be similarly selective in San Rafael. As rational landlords increasingly reduce risks and potential exposures under a Just Cause regime,more renters will find it harder to find housing. San Rafael will become more exclusive and gentrified, as has occurred in most jurisdictions with Just Cause policies. Renters with less than stellar background will find themselves excluded from the housing market.They will seek greater support from government programs.Those programs will experience greater load and less resources per applicant.More people will be thrown to the margins. This way the Just Cause ordinance will achieve the opposite effect from its intention and will actually increase homelessness . 2 5/23/2019 Just Cause Feedback - Google Docs https://docs.google.com/document/d/1V1Hr8-QcWuY5sAjmJ51Z_8cYqM-rcUANB66jLxw3NbM/edit 3/5 Nuisance proliferation .Unless owner ’s bottom line is hit,nuisance behaviour does not directly impact the owner.Under the new ordinance,the owner will have to meticulously document nuisance and follow complex legal eviction procedure to terminate the residency of the nuisance-causing tenant.This creates the disconnect between the people suffering from nuisance (tenants and neighbours)and the person tasked with increasingly complex task of controlling it (owner).For the owner,eviction process is costly and risky with no clear financial benefit.Owners will be less able to deal with tenants causing nuisance.Nuisances will endure, generally escalate,causing stress and trouble for tenants,neighbors,law enforcement,and property owners. Rehab of neglected properties will be affected. Owners of residential rental properties have a duty to maintain the property in a good working order.However,in practice some owners fail to do that.Those properties are typically sold as 'fixer-uppers'with a discount allowing for fixing the property.In most 'fixer-uppers'that I have seen tenants were still present and pay below-market rate. The new owner takes up responsibility for maintaining the property.In some cases neglect turns out to be severe and it’s wise to do a major reconstruction that is incompatible with residency.At present the new owner can terminate the tenancy at will in order to rebuild.Just Cause ordinance would create significant barriers for that. The proposed Just Cause ordinance allows for 'substantial rehabilitation'as a no-fault eviction. As building code constantly changes,and buildings were built to comply to the building code at the time of construction,most buildings do not comply with all current requirements of the code. Experience in other Bay Area cities with Just Cause eviction demonstrate that a mare bringing a building up to code doesn't qualify as 'substantial rehabilitation',as keeping units up to code is landlord’s duty and not an option. The current ordinance requires repairs to be performed inside the unit.This puts it in conflict with the state law requiring landlord to maintain habitable conditions for residential tenants.As the State law will prevail over ordinance ‘substantial rehabilitation’as written may be impossible to exercise. Moreover repairs incompatible with tenancy may be required outside of the unit,and may involve other units,foundation,roof,complete rebuilding of common areas with changing water, sewer &electrical lines.The Just Cause doesn’t allow for termination of contract if areas outside of the unit are in need of major repair.This in turn will lead to the deterioration of the available housing stock and reduction in safety. In all,the Just Cause ordinance sets the bar unreasonably high for the owner that wishes to do a complete property remodel.Owners will put remodeling off.Only when some units become uninhabitable then owners will be able to legally rehabilitate.Properties with aging and leaking pipes,old &dangerous electrical wiring,problems with foundation,termite,dry rot and other structural damage would be hard or impossible to fix. 3 5/23/2019 Just Cause Feedback - Google Docs https://docs.google.com/document/d/1V1Hr8-QcWuY5sAjmJ51Z_8cYqM-rcUANB66jLxw3NbM/edit 4/5 Over the long term this will cause the number of run-down buildings in the city to proliferate. Tenants will be forced to live in sub-optimal conditions.Safety will suffer.The added risks of rebuilding will press down the price during sales.Neighborhoods will lose their appeal.The city will receive lower taxes from those sales. Landlord-tenant conflicts and effect on the market .In a free market,both landlord and tenant benefit.The best incentive for the landlord to maintain the property is the fear that the tenant may leave.Lost tenant means lost revenue,a lot of work and expenses for the landlord. A rational landlord tries to avoid that. Just Cause ordinance is specifically designed to force an owner to provide services against her will.This disincentivizes the landlord from serving tenants.Owners will reduce efforts towards maintaining properties and will take properties off residential rental market.Supply will shrink, vacancy rates will fall and prices for available units will increase. Effect on prices.The biggest concern of San Rafael tenants is the housing unaffordability and the continuing increasing of rental prices.The reason of the increase is that supply doesn’t keep up with the demand.Nothing in the ‘Just Cause’ordinance encourages supply nor reduces the demand.Nothing in this ordinance has any power to prevent continuation of rising rents.Public concern is not addressed in any meaningful way.As rental costs increase,public will increasingly complain about ‘eviction by unaffordability’. Price control is next .As prices will keep rising,renters will continue to lobby for stronger price controls.The current City Council has courage to stand against price controls now.Yet the passing of Just Cause signals that the city embraces populist solutions that harm the market and cause the opposite of the intended effect.It will embolden interest groups to continue the pressure on elected representatives.City council members will find it very hard to withstand this public pressure or be re-elected while resisting it.Price controls will become inevitable either by City’s or State’s legislative action.Those price controls will bring into being the full brunt of the negative consequences of Rent Control summarized in my first letter to the City Council. Reaction by owners and investors. ‘Just Cause Eviction’policies provide a loud and clear signal.Rent control is just one step (price controls)away.Residential rental investments pay for themselves over decades.Owners must plan ahead.The restrictions on contract termination increase the chance of future losses to malicious tenants.Future price controls constitute unacceptable risk for investment.Investment will decrease,reducing supply.Supply shortages of rental units that are already present will become more severe.Prices will go up faster.Rehab of neglected properties will diminish.All this is likely to happen even without the next step of price controls, as it will be anticipated by the prospective owners. Reduction of wealth and tax revenue. The increase in tenant-landlord conflict,reduced maintenance,inability to rehab,increased homelessness and crime will reduce values of properties for sale.Cities derive tax based on sale value.Tax revenues will drop.Expenses for 4 5/23/2019 Just Cause Feedback - Google Docs https://docs.google.com/document/d/1V1Hr8-QcWuY5sAjmJ51Z_8cYqM-rcUANB66jLxw3NbM/edit 5/5 housing programs,enforcement of housing rules,fire prevention will go up.With lesser funding schools will deteriorate. Our city will have less wealth. This is not the future we want for San Rafael . I hope that you share my view. Please consider those unintended consequences and do not implement the Just Cause Eviction ordinance. Sincerely yours, Victor Kunin. May 23 2019. 5 From:Karen Rivas To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Tuesday, May 07, 2019 12:18:30 PM Dear City Clerk Lindsay Lara, My name is Karen, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Karen From:Lauren Silver To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Tuesday, May 07, 2019 11:41:03 AM Dear City Clerk Lindsay Lara, My name is Lauren, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Lauren From:Mardei Hernandez To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Tuesday, May 07, 2019 4:05:08 PM Dear City Clerk Lindsay Lara, My name is Mardei, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Mardei From:Margeli uluac To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 8:00:16 PM Dear City Clerk Lindsay Lara, My name is Margeli, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Margeli From:María Barrera To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 7:50:11 PM Dear City Clerk Lindsay Lara, My name is María, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias María From:Mariana Solis To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Tuesday, May 07, 2019 8:21:51 AM Dear City Clerk Lindsay Lara, My name is Mariana, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Mariana From:Melfin Aguilon To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 4:50:28 PM Dear City Clerk Lindsay Lara, My name is Melfin, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Melfin From:MIchael Berringer To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Tuesday, May 07, 2019 4:21:03 AM Dear City Clerk Lindsay Lara, My name is MIchael, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias MIchael From:Patricia Ascencio To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 9:35:37 PM Dear City Clerk Lindsay Lara, My name is Patricia Ascencio, and I am a resident of San Rafael. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Patricia From:Victoria Valenzuela To:Lindsay Lara Subject:We urge the City of San Rafael to enact tenant protections Date:Monday, May 06, 2019 11:13:45 PM Dear City Clerk Lindsay Lara, My name is victoria and I am a resident of San Rafael CA. We urge the city to enact renter protection policies— as most other Bay Area communities have, including the City of Fairfax and Marin County, because strengthening tenants’ rights will have a long-term stabilizing effect on our community. 1) Adopt Just Cause Eviction to ensure that landlords who do evict tenants do so only with a good reason. 2) Adopt Mandatory Mediation to require landlords to enter into mediation with their tenants if they increase rents more than 5 percent within a 12-month period. 3) Provide relocation assistance to tenants to offset costs to them of gentrification-driven displacement. To make these protections real, support legal representation for tenants facing eviction. Gracias Victoria