HomeMy WebLinkAboutOrdinance 1987 (Temporary Moratorium on Certain Rent Increases)CLERK’S CERTIFICATE
I, LINDSAY LARA, Clerk of the City of San Rafael, and Ex-Officio Clerk of the
Council of said City, do hereby certify that the foregoing:
ORDINANCE NO. 1987
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL ENACTING A TEMPORARY MORATORIUM ON RENT INCREASES FOR
TENANTS RESIDING IN CERTAIN RESIDENTIAL UNITS AND IN U.S CENSUS
TRACTS MOST DISPROPORTIONATELY IMPACTED BY COVID-19 AND SETTING
FORTH THE FACTS CONSTITUTING SUCH URGENCY
is a true and correct copy of an Ordinance of said City, and was passed and adopted as
an Urgency Ordinance at a REGULAR meeting of the City Council of said City, held on
the 19th day of January 2021, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT:COUNCILMEMBERS: None
WITNESS my hand and the official
Seal of the City of San Rafael this
21st day of January 2021
_______________
Lindsay Lara, City Clerk
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ORDINANCE NO. 1987
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL ENACTING A TEMPORARY MORATORIUM ON RENT INCREASES FOR
TENANTS RESIDING IN CERTAIN RESIDENTIAL UNITS AND IN U.S CENSUS
TRACTS MOST DISPROPORTIONATELY IMPACTED BY COVID-19 AND SETTING
FORTH THE FACTS CONSTITUTING SUCH URGENCY
WHEREAS, there is a widespread, ongoing global outbreak of respiratory illness known
as COVID-19 that can be spread from person-to-person, and on February 26, 2020,
community transmission was confirmed by the Centers for Disease Control and
Prevention (CDC) in the Bay Area; and
WHEREAS, on March 4, 2020, California Governor Newsom declared a state of
emergency in the State of California on March 4, 2020; and
WHEREAS, on March 16, 2020, a Shelter in Place Order for all of Marin County was
issued by the Marin County Health Officer; and
WHEREAS, these conditions are likely to be beyond the control of the services,
personnel, equipment, and facilities of the City of San Rafael; and that the aforesaid
conditions of peril to the safety of persons and property warrant and necessitate the
proclamation of the existence of a local emergency; and
WHEREAS, the City Council hereby finds that the above-described conditions of
extreme peril did warrant and necessitate the proclamation of the existence of a local
emergency in the City of San Rafael; and
WHEREAS, on March 17, 2020, the City Council ratified and confirmed the
Proclamation of Local Emergency; and
WHEREAS, the COVID-19 pandemic has disproportionately impacted our historically
marginalized and under-resourced communities of color, and whose contributions are
critical to the success of our local and regional economies as they are clients to our
local businesses, and are members of the essential workforce; and
WHEREAS, the disproportionate impacts of COVID-19 have only reaffirmed the racial
inequalities that exist in our County and have highlighted the urgent need to pursue
bold, collaborative solutions that place equity at the forefront of our actions; and
WHEREAS, this Ordinance is a temporary moratorium intended to promote stability and
fairness within the residential rental market in the City during the COVID-19 pandemic,
and to prevent avoidable homelessness by temporarily preventing rent increases that
would increase financial instability for thousands of individuals and families struggling
during this time to pay their bills and feed their families due to being out of work, thereby
serving the public peace, health, safety, and public welfare; and
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WHEREAS, displacement through eviction creates undue hardship for tenants through
additional relocation costs, stress and anxiety, and the threat of homelessness due to the
lack of alternative housing, which could lead to increases in health issues (including
COVID-19 infection), exacerbation of existing health issues, and increase in risk of earlier
death; and
WHEREAS, the City Council and City staff have found that certain geographic locations,
specifically two census tracts (1122.01 and 1122.02) in the Canal neighborhood have
been disproportionately impacted by COVID-19; and
WHEREAS, such geographic locations have suffered and continue to suffer
disproportionate impacts from COVID-19, which have materialized in higher risk of
COVID-19 transmission and number of cases compared to the national average, and
higher risk of economic and housing instability as compared to the remainder of the City;
and
WHEREAS, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)
signed into law on March 27, 2020, appropriated $5 billion in additional Community
Development Block Grant (CDBG) Program funding to state and local governments; and
WHEREAS, the CARES Act directs the Department of Housing and Urban Development
(“HUD”) to administer these funds pursuant to Section 106 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5306). This provision calls for HUD to allocate the
supplemental funds to CDBG grantees—including eligible local governments, states, and
insular areas—proportional to their conventional Fiscal Year 2020 CDBG allocation, as
published by HUD in April 2020; and
WHEREAS, CARES Act funding is intended to prevent, prepare for, and respond to the
COVID-19 based on public health needs, risk of transmission, number of cases compared
to the national average, and economic and housing market disruptions; and
WHEREAS, HUD has provided clear direction that the CARES Act funding be allocated
based on public health need, risk of transmission of coronavirus, number of coronavirus
cases compared to the national average, and economic and housing market disruptions,
and other factors, as determined by the Secretary; and
WHEREAS, in reliance on this HUD directive, the County of Marin developed an adjusted
allocation methodology for CARES Act funding disbursements based on U.S. Census
Tract data in which COVID-19 cases are proven most prevalent; and
WHEREAS, data on COVID-19 cases, supplied by the County of Marin Health and
Human Services (HHS), and data on overcrowding, gathered from the U.S. Census
American Community Survey, were utilized to determine the communities with the
greatest risk for coronavirus transmission; additionally, data from HUD’s
CHAS/Consolidated Plan tool were utilized to determine the percentage of low-income
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households in each community, in line with the use of HUD dollars to be used for low-
income individuals and households, who make below 80% of the area median income.
WHEREAS, the above described data resulted in a CARES Act allocation within the
County of Marin as follows:
• San Rafael: 52.7%, $943,853.84
• Novato: 27.1%, $485,359.37
• County Other: 20.2%, $361,780.79; and
WHEREAS, in allocating CARES Act funding, the County of Marin relied upon data from
the Marin County Health and Human Services regarding COVID-19 positivity rates, and
relied upon U.S. Census American Community Survey 2018 5-year estimates regarding
rates of overcrowding; and
WHEREAS, this data showed that two U.S. Census Tracts within the City of San Rafael
have suffered the most disproportionately high rates of COVID-19 positivity since March
2020, and are statistically more overcrowded than other Census Tracts within the County
of Marin as detailed below:
Name
Percent of population
tested COVID+
Census Tract 1122.02: San Rafael: Canal 8.70%
Census Tract 1122.01: San Rafael: Canal 15.35%
Countywide Percent 3.12%
Renter occupied units
with more than 1
occupant per room
Census Tract 1122.01, Marin, CA 66.67%
Census Tract 1122.02, Marin, CA 27.51%
Countywide 5.12%
WHEREAS, overcrowded households are also more likely to include individuals with
lower wage occupations which cannot be performed remotely, increasing the likelihood
of COVID-19 exposure; and
WHEREAS, to limit the exponential spread of COVID-19, County Public Health
Guidelines require any individual testing positive or coming into contact with someone
who has tested positive to quarantine for at least ten (10) days, and due to these Public
Health requirements individuals and entire households may be required to quarantine,
thereby losing income; and
WHEREAS, the California Fair Housing Task Force (the “Task Force”), established by
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the State of California Department of Housing and Community Development was
established to provide research, evidence-based policy recommendations, and other
strategic recommendations to HCD and other related state agencies/departments to
further the fair housing goals (as defined by HCD); and
WHEREAS, the Task Force has determined that certain geographic locations and U.S.
Census Tracts within the City are at risk of further segregation and concentration of
poverty, and in reliance on such facts, the Task Force created opportunity maps to identify
areas of every region of the State whose characteristics have been shown by research to
support positive economic, education, and health outcomes for low-income families,
particularly long-term outcomes for children (https://belonging.berkeley.edu/2021-tcac-
opportunity-map); and
WHEREAS, one of these Census Tracts has been identified as Low Resource opportunity
category (Census Tract 1122.02) and one of these Census Tracts has been identified as
High Segregation and Poverty opportunity category (Census Tract 1122.01)
(https://belonging.berkeley.edu/2021-tcac-opportunity-map); and
WHEREAS, the Healthy Places Index (HPI), developed by the Public Health Alliance of
Southern California, tracks 25 separate indicators of community health and wellbeing,
including five indicators related to housing; and
WHEREAS, according to the HPI, Census Tracts 1122.01 and 1122.02 are in the bottom
10th percentile of census tracts statewide in terms of renters that spend more than 50%
of their income on housing costs, while the City of San Rafael as a whole is in the 29th
percentile; and
WHEREAS, Census Tracts 1122.01 and 1122.02 are also amongst those identified for
CARES Act allocations; and
WHEREAS, this combination of overcrowded housing, occupations that can only be
performed in person, and increase risk of displacement creates a vicious cycle were
overcrowded households are at increased risk for COVID-19 exposure, are financially
unable to respond to the quarantine requirements if exposed, and are more likely to be
displaced to a situation at even greater risk of COVID-19 exposure; and
WHEREAS, the City has found and declares that while there are other Census Tracts in
the City experiencing overcrowding and high rates of COVID-19, no other Census Tracts
in the City are experiencing overcrowding, COVID-19 infection rates, financial instability
and risk of displacement at the same rates and levels as Census Tracts 1122.01 and
1122.02; and
WHEREAS Census Tracts 1122.01 and 1122.02 have the highest rates of COVID-19
infections in all of San Rafael and have higher rates of COVID-19 infections than 90% of
all Census Tracts in the County of Marin, placing these two Census Tracts in the top 10%
of the entire County of Marin in terms of COVID-19 case rates and overcrowding; and
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WHEREAS, in reliance on this data and so as to strike a balance between the economic
stability of property owners and landlords within the City and the grave risks that residents
of Census Tracts 1122.01 and 1122.02 face, the City finds that the rent freeze should
apply only to Census Tracts 1122.01 and 1122.02 which are at the absolute highest risk
of displacement, financial instability, and COVID-19 infection rates within the City; and
WHEREAS, the facts, research, and conclusions utilized by the Federal and State
governments and the County of Marin as described more fully above, establish that
poverty, overcrowding, and high COVID-19 infection rates in U.S. Census Tracts 1122.01
and 1122.02 have led and will continue to lead to disproportionate risks of displacement,
COVID-19 infection rates, and financial and economic instability; and
WHEREAS, in reliance on this data and the facts establishing that residents of Census
Tracts 1122.01 and 1122.02 are disproportionately at risk of displacement, debt, and
contraction of the COVID-19 virus, the City finds an declares that there is an urgent risk
to take measures to protect residents of these Census Tracts against further risk of
displacement, debt, disease; and
WHEREAS, implementation of a complete rent freeze in these two vulnerable Census
Tracts will reduce the likelihood of displacement, debt, and continued increases in
COVID-19 positivity rates by limiting the accumulation of debt due to rent increases,
thereby supporting the long-term recovery of these residents; and
WHEREAS, the City has previously adopted and implemented rent control upon
mobilehomes located within the City pursuant to Title 20 (Mobilehome Rent Stabilization)
of the San Rafael Municipal Code; and
WHEREAS, Title 20 protects homeowners and residents of mobilehomes from arbitrary,
capricious and unreasonable rent increases while ensuring owners of mobilehome park
properties receive a fair and reasonable return; and
WHEREAS, because Title 20 already provides those protections to homeowners and
residents and mobilehomes that this Ordinance seeks to provide, the City Council finds
and declares that this Ordinance need and shall not apply to mobilehomes already
protected from unreasonable rent increases pursuant to Title 20; and
WHEREAS, for the reasons set forth herein, there is currently an urgent and imminent
threat necessitating the immediate need to freeze rents in certain geographic locations
but because the COVID-19 Tenant Relief Act of 2020 (enacted on August 31, 2020 as
AB 3088), prohibits cities from enacting any ordinance in response to the COVID-19
pandemic to protect tenants from eviction which would become effective prior to February
1, 2021, the City finds and declares that this Ordinance should become effective
immediately on the earliest date allowed by the State of February 1, 2021; and
WHEREAS, this Ordinance will lower the risk of displacement of vulnerable populations,
which is essential for public health, will keep tenants from falling even further behind
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during the state of emergency and will help tenants experiencing poverty and high
segregation in good standing after the Ordinance expires; and
WHEREAS, so too will this Ordinance help ameliorate the broader public health, safety,
and welfare effects of the emergency; failure to suspend rent increases in geographic
locations disproportionately impacted by COVID-19 will worsen the already severe
impacts of COVID-19 in these areas; and
WHEREAS, this Ordinance is temporary and not a general ordinance in force required
to be codified; and
WHEREAS, this Ordinance is expressly authorized by State law because the Ordinance
is more protective than the provisions of section 1946.2 of the California Civil Code, which
was adopted pursuant to the Tenant Protection Act of 2019, because this ordinance
provides tenant protections that are neither prohibited by nor established by other
provisions of applicable law;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SAN RAFAEL:
SECTION 1. Declaration of Threat to Public Health, Safety, and Welfare Necessitating
Urgency Ordinance
The City Council of the City of San Rafael hereby finds and declares that there is a current
and immediate threat to the public health, safety and welfare and a need for the immediate
preservation of the public health and safety that warrants this urgency ordinance, which
finding and declaration is based upon the facts, findings, and declarations stated in the
recitals of this Ordinance, and all oral and written testimony presented at the January 19,
2021 San Rafael City Council meeting.
SECTION 2. Title
This Ordinance shall be known as the “COVID-19 Temporary Rent Freeze Ordinance.”
SECTION 3. Term
This Ordinance shall become effective on February 1, 2021 upon its adoption by a 4/5
vote of the City Council of the City of San Rafael pursuant to section 36937(b) of the
California Government Code and shall remain in effect until December 31, 2021 unless
repealed or extended by the City Council.
SECTION 4. Definitions
“Condominium” means an estate in real property described in subdivision (f) of Section
1351 of the Civil Code.
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“Dwelling Unit” means one (1) or more rooms occupied as living quarters, with a kitchen,
sleeping facilities, and sanitary facilities for the exclusive use of one (1) household.
“Housing Services” means all services provided by a Landlord related to use or
occupancy of a Rental Unit, including without limitation insurance, repairs, replacement,
maintenance, painting, utilities, heat, water, elevator service, laundry facilities, refuse
removal, parking, storage, furnishings, and security services.
“Landlord” means an owner, lessor, or sublessor who receives or is entitled to receive
rent for the use and occupancy of any Rental Unit or portion thereof.
“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 Rental Unit and the housing services provided therewith, or for the assignment of a
rental agreement for a Rental Unit. A decrease in Housing Services is considered an
increase in Rent, except where such decrease is due to State or local orders mandating
discontinuation of certain Housing Services.
“Rental Unit” means any Dwelling Unit in any real property, including a building, structure,
or part thereof, and the land appurtenant thereto, rented or available for residential
occupancy, and located in the City. The following shall not be considered Rental Units:
1. Units in hotels, motels, inns, tourist homes, and rooming and boarding houses
which are rented primarily to transient guests for a period of fewer than thirty days;
2. Units in any hospital, convent, monastery, extended care facility, emergency
residential shelter, residential care facility, residential service facility, nonprofit
home for Senior Citizens (as defined in the Unruh Act, as may be amended), or
in dormitories owned and operated by an institution of higher education, a high
school or elementary school;
3. Units which a government entity owns, operates, or manages, or in which
governmentally-subsidized Tenants reside, if applicable federal or state law or
administrative regulation specifically exempt such units from municipal rent
control.
4. Single family homes;
5. Units in a building, structure, on a single property, or part thereof, containing only
one (1) or two (2) Dwelling Units;
6. Condominiums;
7. Accessory Dwelling Units as that term is defined in Government Code section
65852.2;
8. Mobilehomes subject to Title 20 (Mobilehome Rent Stabilization) of the San Rafael
Municipal Code and mobilehomes exempt from rent control pursuant to any
applicable federal or state law;
9. Units for which an initial certificate of occupancy was dated on or after February 1,
1995.
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“Single-Family Home” means a detached building containing a single residential
dwelling unit separately alienable from any other dwelling unit.
"Tenant" means a person entitled by written or oral agreement, or by sufferance, to the
use or occupancy of a Rental Unit.
"Tenant household" means all tenant(s) who occupy any individual Rental Unit, and
each minor child, dependent, spouse or registered domestic partner of any tenant
whose primary residence is the Rental Unit.
SECTION 5. Geographic Scope
This Ordinance applies to all Rental Units located within the following U.S. Census Tracts,
which are depicted in Figure A of this Ordinance (U.S. Census Tracts Subject to Scope
of Ordinance) and have been identified based on the declared threat to public health,
safety and welfare within these U.S. Census Tracts:
U.S. Census Tract
Number Location
1122.01 San Rafael; Canal
1122.02 San Rafael; Canal
SECTION 6. Moratorium on Rent Increases
A. During the Term of this Ordinance, a Landlord may not increase the Rent for any
Rental Unit except pursuant to the provisions and procedures set forth in Section 7 of this
Ordinance (Right to Petition for Fair Return).
B. Any pending increase in Rent and/or increase in Rent which becomes effective
during the Term of this Ordinance, whether such increases are authorized pursuant to a
lawfully served notice or an existing written or oral rental agreement, shall not be collected
and shall not become effective during the Term of this Ordinance.
C. No requests, notices or demands for increases in Rent which would become
effective after the Term of this Ordinance, shall be served, given or provided to any Tenant
or Tenant Household during the Term of this Ordinance.
D. Upon repeal or expiration of this Ordinance a Landlord’s right to impose rent
increases on Tenants and Tenant Households of Residential Units shall immediately
resume, subject to any other applicable federal, state, or local limitations that may be in
place.
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E. Notwithstanding the limitations in subsections A through E of this Section, a
landlord may establish any new, base Rent for tenancies which commence after the
effective date of this Ordinance.
SECTION 7. Right to Petition for Fair Return
A. Fair Return Petition. To effectuate the purposes of this Ordinance and the
requirements of law, a Landlord may file a petition for an upward adjustment of the Rent
for any given Rental Unit to ensure a fair and reasonable rate of return. There is a
rebuttable presumption that maintenance of net operating income on the date of adoption
of this Ordinance, as adjusted by inflation over time, provides a Landlord with a just and
reasonable rate of return on a Rental Unit. It is the intent of this Article that individual
upward adjustments in Rent be granted only when the Landlord demonstrates that such
adjustments are necessary to provide the Landlord with a fair rate of return.
B. Procedures for Petition. A Landlord may file a petition for a fair return hearing
pursuant to this Section on a form provided by the City. The City Council hereby delegates
authority to and directs the City Manager to adopt policies and procedures to implement
the fair hearing petition process that are consistent with this Section.
C. Hearing Officer Appointed. A Hearing Officer, appointed by the City Manager, shall
conduct a hearing to act upon a petition for an upward adjustment of the Rent for any
given Rental Unit. The Hearing Officer shall have the power to administer oaths and
affirmations, and to render a final decision on the merits of the petition, subject to the
provisions of this Section and the petition procedures established by Resolution.
D. Failure to Comply with Ordinance. No upward adjustment of Rent shall be
authorized by a Hearing Officer under this Section if the Landlord has failed to comply
with any provision of this Ordinance or regulations adopted by separate resolution of the
City Council or implementing policies and procedures adopted by the City Manager, or
has failed to maintain the Rental Unit in compliance with any applicable Federal, State,
or local law or administrative regulation.
E. Upward Adjustment of Rent. In making an upward adjustment of Rent based on a
Landlord’s Petition to ensure a fair rate of return, the Hearing Officer shall approve an
adjustment in accordance with the following criteria:
1. Right to Fair Return. No provision of this Ordinance shall be applied so as
to prohibit the Hearing Officer from granting a fair return adjustment of Rent that is
demonstrated by the Landlord to be necessary to provide the Landlord with a fair rate of
return.
2. Maintenance of Net Operating Income. The Petition shall establish and the
Hearing Officer shall consider a Landlord’s ability or inability to maintain a fair rate of
return on any given Rental Unit. The Hearing Officer shall consider a Landlord’s ability
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to maintain net operating income for any given Rental Unit. Net operating income equals
gross income minus operating expenses.
3. Gross income equals the following:
a) Gross rents; plus
b) Interest from security or other deposits, except to the extent that said
interest is payable to the Tenant; plus
c) Income from services or parking; plus
d) All other income or consideration received or receivable in connection
with the use or occupancy of Rental Units;
e) For purposes of calculating gross income, the Hearing Officer may
take into account factors necessary to assure that the Landlord
receives a fair and reasonable return on their investment.
4. Operating expenses includes the following expenses:
a) Real property taxes;
b) Unsecured property taxes;
c) Utility costs that are not reimbursed by tenants; plus
d) Management expenses, including but are not limited to, necessary and
reasonable advertising, accounting, insurance, and allowable necessary
and routine legal expenses;
e) Repair and maintenance expenses;
f) Owner performed labor, which shall be counted at reasonable rates;
g) License and registration fees required by law that are not reimbursed
by the Tenant;
h) Capital improvements, provided they are not compensated by insurance
proceeds, subject to the following conditions: 1) that said expenses be
amortized, and 2) capital improvements constructed in the interior areas
of the Rental Unit can be included only to the extent required by state or
local laws.
5. The following are excluded from operating expenses:
a) Avoidable and unnecessary increases in expenses;
b) Penalties, fees, or interest assessed or awarded for violation of this or
any other law with respect to the Rental Unit;
c) Depreciation of the property;
d) Any expense for which the Landlord has been reimbursed by any
security deposit, insurance settlement, judgment for damages,
settlement, or any other method;
e) Mortgage interest or principal, or similar financial instruments used to
purchase or finance rental property, unless incurred for purposes of
financing capital improvements; and
f) Income taxes.
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SECTION 8. Affirmative Defense to Eviction; Civil Remedies
A Landlord’s failure to comply with any provision of this Ordinance shall constitute an
affirmative defense in any unlawful detainer action based upon nonpayment of rent. A
Landlord that fails to comply with this Ordinance may further be subject to civil
proceedings for displacement of Tenants or Tenant Households initiated by Tenants,
Tenant Households or the City for actual and exemplary damages.
SECTION 9. Figure A – U.S. Census Tracts Subject to Scope of Ordinance
Figure A
SECTION 10. Severability
If any provision or clause of this ordinance or the application thereof to any person or
circumstance is held to be unconstitutional or to be otherwise invalid by a final judgment
of any court or competent jurisdiction, such invalidity shall not affect other provisions or
clauses or application, and to this end, the provisions and clauses of this ordinance are
declared to be severable.
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SECTION 11. California Environmental Quality Act
The City Council finds that the adoption and implementation of this Ordinance are exempt
from the provisions of the California Environmental Quality Act under section 15061(b)(3)
in that the City Council finds there is no possibility that the implementation of this Article
may have significant effects on the environment.
KATE COLIN, Mayor
ATTEST:
LINDSAY LARA, City Clerk
I, LINDSAY LARA, City Clerk of the City of San Rafael, certify that the foregoing
Ordinance was passed by the City Council of the City of San Rafael, California, by a vote
of at least four-fifths (4/5) of the members thereof, at a regular meeting held on Tuesday,
the 19th day of January 2021 by the following vote, to wit:
AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Colin
NOES: Councilmembers: None
ABSENT: Councilmembers: None
LINDSAY LARA, City Clerk