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Home My WebLink AboutCM Temporary Moratorium on Certain Rent Increases PPTTemporary Rent Freeze Urgency Ordinance January 19, 2021 COVID-19 IMPACTS ON OUR COMMUNITY For households in debt in California, the average debt was predicted to reach $6,953 per household by the end of the 2020 10,700 Households at risk for eviction countywide 8,270 Children live in these households Employment rates are down 40% among low-income workers in Marin 62.4% Of Hispanics in the Bay Area have limited confidence they can pay their rent next month Citation:PolicyLInk, Census Household Pulse Survey, Opportunity Insights, Federal Reserve Bank of Philadelphia, Marin HHS COVID-19 Impacts in Canal Neighborhood The Pandemic in the Canal Neighborhood •Latinx community makes up 16% of population, and 56% of COVID cases •Essential Workers –service industry most impacted •Debt Accumulation •Combination of housing instability and essential workforce is at increased risk for COVID-19 and most difficult to quarantine due to financial constraints –a vicious cycle •Stephanie Haffner, ED Legal Aid of Marin •Alan Burr, Housing and Community Lending Marin Community Foundation •Cristine Alilovich, Assistant City Manager •Angela Nicholson, Assistant County Administrator •Mayor Kate Colin, City of San Rafael •Dennis Rodoni, Supervisor County of Marin •Maika Llorens Gulati, Councilmember City of San Rafael •Omar Carrera, CEO Canal Alliance •Chandra Alexandre, CEO Community Action Marin Canal Policy Working Group Canal Policy Working Group Objectives •Develop holistic solutions that address public health and economic crises •City, County & CBO collaboration “on the ground” support to Canal neighborhood to respond to pandemic •First action was to adopt bold City & County resolutions that call for equity-driven solutions to protect those individuals and businesses most disproportionately impacted by COVID -19 Background & Context •December 2020 -Community Development Block Grant Funding –75% toward rental assistance •January 12th –County passed extension of countywide eviction moratorium •(Feb 1 –June 30, 2021) •AB 15 & AB 16: Proposed Statewide Moratorium & Funding/Framework for disbursing rental assistance RENTAL ASSISTANCE FUNDING CDBG Funding MCF Funding County Funding Total Available Rental Assistance Distributed in April and May $900,000 $1,000,000 $1,000,000 $2,900,000 Current Round of Rental Assistance $1,343,246 $1,500,000 $2,843,246 Total Funding $2,243,246 $2,500,000 $1,000,000 $5,743,246 Total -Countywide San Rafael Residents Rental Assistance Disbursed in April and May: Total households that received assistance 1,476 596 Current Round of Rental Assistance: Includes those who have received assistance and those who have been processed by the County and are waiting for funds 383 218 Waiting to be Processed 1,537 Not yet available Households Served ●County receiving additional $7.75 million in rental assistance from Federal stimulus package Funding –directly to property owners PROPOSED URGENCY ORDINANCE •Temporary moratorium on rent increases (“rent freeze”) •February 1 –December 31, 2021 •Goal is to provide temporary relief to those residing in census tracts most disproportionately impacted by COVID-19 and with high housing instability •Excludes: •Single family homes •Properties containing only one or two units •Accessory dwelling units •Units built on or after February 1, 1995 PROPOSED TEMPORARY RENT FREEZE (2 Census Tracts) Proposed rent freeze applicable in two census tracts: •1122.01: Canal Neighborhood (15.34% positivity rate) •1122.02: Southeast San Rafael and Canal Neighborhood (8% positivity rate) Both census tracts are: •COVID-19: these tracts have the highest number of cases and the highest percent positivity rates in Marin (top 10%) •90% of census tracts in Marin, have less COVID cases •Housing Instability: these tracts have the highest rates housing instability (top 10%) •Rent burden: these tracts are in the bottom 10% on statewide Healthy Places Index; which measures the percentage of low -income renters who pay more than 50% of income on housing Citation:Marin HHS, 2018 U.S. Census American Community Survey, Healthy Places Index, California Fair Housing Task Force OTHER PROTECTIONS IN PLACE FOR SAN RAFAEL RESIDENTS •Statewide rent cap 5% + CPI (1.1%) = 6.1% •Rental assistance programs –Federal, State and local funding Citation:Marin HHS, 2018 U.S. Census American Community Survey, Healthy Places Index, California Fair Housing Task Force SUPPORT FOR PROPERTY OWNERS •Rental assistance funding goes directly to property owners •Additional $7.7M to Marin County coming •Property tax deferral and no late penalties •Mortgage deferral programs and forbearance options for federally backed mortgages (within CARES Act guidelines) •SBA and Economic Injury Disaster Loans •City Council letter of support for AB 16 to our Senator McGuire & Assembly member Levine •Ongoing commitment to engagement re: policy considerations COMMUNITY OUTREACH •Property Owner/Landlord Meetings •Canal Policy Working Group •Chamber of Commerce, Economic Development Subcommittee •Social media, Nextdoor, City website, Snapshot IMPLEMENTATION •Legal Aid of Marin would provide legal support to tenants as first point of contact •City Manager to establish procedures for a fair return hearing process •Legal requirement that allows a property owner to petition that an increase is needed to allow a fair and reasonable rate of return NEXT STEPS and Q&A •Proposed rent freeze is one step in path to recovery •Partner with County to expeditiously disperse new Federal rental assistance funds •Ongoing evaluation of polices and programs to support recovery for all; including analyze outcome of AB 15 & 16 •Continued collaboration with CPWG, property owners, community stakeholders to continue