HomeMy WebLinkAboutED Fair Rental Practices Report 2001CITY OF
SAN RAFAEL
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AGENDA ITEM NO.: 16 .
MEETING DATE: September 4, 2001
REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: Report and Recommendation Regarding Rising Residential Rents and the
Voluntary Fair Rental Practices Initiative
SUBMITTED BY ' V - _
Nancy Mackle Rod Gould
Economic Development Director City Manager
RECOMMENDATION: Staff recommends that the City Council accept this initial report
regarding the monitoring of the Fair Rental Practices Agreement and other rental issues in San
Rafael.
BACKGROUND: In the Fall and Winter of 2000-01, the City of San Rafael held two
community discussions to address the issue of rising residential rents. These discussions were
held to address the concerns of San Rafael residents that had received substantial rent increases
and feared that they would need to leave San Rafael to seek affordable housing. Approximately
100 people attended the first meeting. A summary of this meeting is included in Exhibit A.
Staff researched and analyzed the options identified at the initial discussion and completed a
report on the issues, which was presented at the second town discussion in February. Prior to the
second town discussion, staff met with community members and groups to seek information for
the report and analysis. Copies of staff's report were made available at City Hall, the
Redevelopment Agency office, on the City's website, at City Hall at the Mall, and at all the
community centers. The executive summary of the report was translated into both Spanish and
Vietnamese. The Executive Summary is included in Exhibit A.
Approximately 200 people attended the second town discussion. The meeting was divided into
discussion groups or stations to hear community comments on the following areas of concern
identified at the first meeting: 1) Rent Stabilization; 2) Housing Conditions; 3) Tenant
Assistance; and 4) Housing Supply.
FOR CITY CLERK ONLY
File No.: 13—/G X
13--7—/
Accepted Report w8h On following amandmeMn
City Council Meeting:
Y ■> Staff dbecud to prvride additional reporting on the AgwWs Housing programs.
Inctudlag the monitoring propmn, In December. 2001;
Disposition:
b) Staff dFroct■d to roped back; at the City Couaell Mewting of October 10. 2001 with regard to
progress made In posting those bulldings when the owner has signed a voluntary
agrewmaet and also on wore further analysis of the Informadon racolved !Me oven ft with
respect to how many w ts, as opposed to buildings, an now covered by the Voluntary
pn4parn;
c) Addhionel report to be prodded wnh regard to medation results;
d) CRY Manager to pursue property owners maNhq nalka to each tenant In those bu0dings
when people have signed up, to enable indhdduai nodchq. In addition to the building
It"M
P'ag,: 2
On April 2, 2001, the City Council accepted a report from staff outlining actions that could be
undertaken by the City of San Rafael, other organizations and the community to address the issue
of rising residential rents (Exhibit A). The Council requested periodic reporting on the status of
the various recommended programs. This document is the initial report to the City Council.
The recommended actions from the April staff report and status to date is shown below:
L Increase supply. Identify additional housing sites and policies to assist in the creation of new
housing through the General Plan Update process.
IN PROGRESS. Staff has identified potential locations for affordable housing which will
require further analysis and discussion as part of the general plan process.
2. Continue partnerships for affordable housing. Continue to partner with non-profit
agencies as well as private owners to secure regulated affordable units.
IN PROGRESS. Through the Redevelopment Agency's Canal Housing Improvement
Program, BRIDGE has acquired 26 units and is in the process of acquiring additional 40
units. In addition, the Agency has assisted the Canal Community Alliance in acquiring 8
units. The Redevelopment Agency and the Marin Community Foundation provided funding
for these property acquisitions. The Redevelopment Agency has also acquired Below Market
Rate ownership units to assure the units would remain in the BMR program and retain the
ongoing resale restrictions.
3. Improve code enforcement efforts. Prepare a plan to fund and increase residential code
enforcement to ensure safe and sanitary housing is available at all rent levels.
IN PROGRESS. The City Council has approved funding two additional code enforcement
positions as part of the 2001 — 2003 budget. The second round of interviews is being held in
August/September. Community Development staff has completed negotiations with Marin
County Environmental Health Services Department regarding the Memorandum of
Understanding for citywide code enforcement.
4. Improve management of rental units. Enforce the on-site residential manager requirement
for all apartment buildings and support management education efforts to improve.
COMPLETED. The City Council adopted an ordinance requiring on site -managers in July,
2001, which specifies that all apartment buildings over 10 units must have an on-site
manager. Code Enforcement staff will be enforcing the ordinance during regular inspections
and on a complaint basis.
5. Increase tenant assistance. Support efforts in the San Rafael community to create and fund
tenant education programs, increase mediation efforts, create tenant organizations, increase
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rental and deposit assistance, provide assistance to move into homeownership, and other
solutions to assist tenants.
IN PROGRESS. The Marin Community Foundation provided a grant to create a San Rafael
Tenants Association (phone 492-0230, ext. 22). Legal Aid of Marin is the Fiscal Agent and
is providing office space and support for Jessuina Perez Teran, a tenant organizer. Staff also
recommended support of community efforts to increase Marin Housing's rental deposit
guarantee program and for programs to move tenants into homeownership.
6. Pursue tenant employment opportunities. Pursue employment and training programs,
which could create job -training opportunities for local residents for construction and public
service jobs.
IN PROGRESS. County staff is working with Caltrans to obtain a grant for this program.
7. Accept the voluntary efforts proposed by the landlords and Provide periodic reporting
on the Fair Rental Practices Program. Monitor and report periodically on the voluntary
efforts by the San Rafael income property owners to keep rent increases at a reasonable level.
IN PROGRESS. See "Analysis" below.
ANALYSIS:
At the April City Council meeting, staff recommended not instituting the proposed rental
standards ordinance and instead allowing the voluntary measures proposed by local income
property owners an opportunity to succeed. The reason for this recommendation was as follows:
1) The rental standards ordinance was seen by many of the property owners as governmental
intervention that would eventually lead to rent control. As such, they vehemently opposed
this approach and threatened to enact rent increases to offset any potential future restrictions.
It was hoped that a voluntary effort would avoid this type of reaction.
2) The voluntary effort included giving 60 day notices to tenants for all sizes of rent increases
not only for those increases over 10% as were proposed in the rental standards ordinance.
3) The rental standards ordinance would have required much more staff time or contractual
services than that required to monitor the voluntary effort.
4) The City always has the option of reviewing the situation and considering alternative
solutions if the number of property owners' signatures does not increase or if the monitoring
reveals that owners are not abiding by the agreement,
This voluntary effort was predicated on the Fair Rental Practices Agreement. The Fair Rental
Practices Agreement limits rent increases to once a year, keeps the amount of rent increases for
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existing tenants to less than 10% per year, provides 60 day notices for all rent increases, and the
signor agrees to keep their properties up to code as required by law (See Exhibit B.)
At the April City Council meeting, the property owners stated that approximately 1,300 units of
the 9,000 rental units in San Rafael (1990 Census) were covered by the voluntary agreement.
The owners also pledged to continue efforts to increase the number of Fair Rental Practices
owners (FRPO). Staff has not verified the number of units or the signatures of the Fair Rental
Practices owners presented to the City Council. To date the following actions have occurred
regarding the Fair Rental Practices voluntary efforts:
City of Sart Rafael
• Approved $20,000 annually to fund the monitoring services to be funded by the
Redevelopment Agency's Low and Moderate Income Housing Fund.
• Contracted with Mediation Services to be the monitoring agent.
City staff discussed the monitoring agent duties with Mediation Services, Legal Aid of
Marin, Fair Housing, and Marin Housing. All of the agencies agreed that Mediation
Services was a logical chose because the organization was already advising property
owners and tenants on their rights and responsibilities under current law. Mediation
Services is part of the Marin County Probation Department. The City and Mediation
Services entered into a contract to provide the monitoring services. Unfortunately, getting
the City's contract approved by the County took longer than expected. The contract term
began on July 1, 2001.
• Mediation staff for San Rafael has been assigned and trained.
There is one staff person assigned to San Rafael. A separate staff person provides
bilingual services.
• A separate phone number for San Rafael residents has been installed.
San Rafael residents can utilize the San Rafael phone number (507-2834) or call the
regular Mediation Services phone number (499-7454).
• Held meetings with Mediation Services, City staff and the Tenants Association to discuss
implementation.
• Prepared this initial report to the City Council on the monitoring efforts.
Property Owners
• Met with City staff, Tenants Association and Mediation regarding implementation.
• Increased the number of owners signing the Fair Rental Practices Agreement. An additional
45 units have been reported to be included in the voluntary program.
• Posting of the signed voluntary landlord agreement at each apartment building has not yet
occurred however the agreements are currently being translated and prepared for posting.
The property owner's representative has committed to completing posting by November 1.
• Two phone lines have been identified for referrals for Mediation Services.
• Obtained mailing list for additional outreach to property owners of multiple units.
The property owners will provide a verbal report at the City Council meeting.
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Monitoring Agent
Provide periodic report to City Council when requested by staff.
Mediation staff will provide a verbal and written report at the City Council meeting. A
summary of that report is presented below:
Between July 3, 2001 and August 27, 2001 Mediation Services received 53 calls from
San Rafael.; three calls from landlords and 50 from tenants.
Nature of Complaint
Number of
Complaints*
Number of properties
owned by FRPO
Rent Increase
12
0
Health & Safety
3
0
Landlord Harassment
6
0
Notice/eviction
12
0
Security Deposit
8
0
Discrimination
2
0
Maintenance (not Health &
safe
3
1
Misc.
8
0
TOTAL
54*
1
* Total complaints exceeds total number of calls as some calls included multiple complaints.
San Rafael Tenants Association
• Secured funding from Marin Community Foundation
• Set up office and phone (492-0230, ext. 22)
• Met with City staff, Tenants Association and Mediation regarding implementation.
• Initiated tenant meetings.
• Held meetings with Mediation Services.
The tenant representative will provide a verbal report at the City Council meeting.
FISCAL IMPACT: None.
SUMMARY: While many steps have been taken to date to alleviate the rental situation, it is
clear from the initial complaints (since July 2001) that renters still face rental increases and
evictions. However, property owners have reported a softening in the market across Marin
County due to the downturn in the economy. This appears to be only effecting high-end rentals
to date. Staff will undertake another market survey to continue to track the rents in the area in all
types of rentals and will report back to City Council.
It is too early to make any final conclusions on the Fair Rental Practices approach as the property
owners have not yet posted the agreements in the apartments. Tenants are not aware of the Fair
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Rental Practices arrangement and additional outreach is a necessary step. This new owner
organization is based entirely at this point on volunteer efforts, therefore its initial efforts still
require more time for implementation.
Staff recommends continuing with this approach and providing another report in December.
RECOMMENDATION: Accept initial report and direct staff to provide additional reporting on
the Redevelopment Agency's housing programs including the monitoring program in December.
EXHIBITS:
A: April 2, 2001 Staff Report including summary of Town Discussions
B: Voluntary Proposal from representatives of Income Property Owners
CITY OF
SAN RAFAEL
AGENDA TEEM NO.: 15
MEETING DATE: April 2, 2001
REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: Report and Recommendation Regarding Rising Residential Rents
SUBMITTED BY:"_XN1 u Cr-�
Nancy Mackle Rod Gould
Economic Development Director City Manaaer
RECOMMENDATION: Staff recommends that the City Council direct staff to do the following
steps to address the issue of rising residential rents in San Rafael:
1. Increase Supply. Identify additional housing sites and policies to assist in the creation of
new housing through the General Plan Update process.
2. Improve Code Enforcement Efforts. Prepare a plan to fund and increase residential code
enforcement to ensure safe and sanitary housing is available at all rent levels for
consideration as part of the 2001 — 2003 budget.
3. Increase Tenant Assistance. Support efforts in the San Rafael community to create and
fund tenant education programs, increase mediation efforts, create tenant organizations,
increase rental and deposit assistance, provide assistance to move into homeownership, and
other solutions to assist tenants.
4. Pursue Tenant Employment Opportunities. Pursue employment and training programs,
which could create job -training opportunities for local residents for construction and public
service jobs.
5. Continue Partnerships for Affordable Housing. Continue to partner with non-profit
agencies as well as private owners to secure regulated affordable units, including new and
creative approaches such as: community land trusts, employer housing trusts, cooperative and
non-profit ownership, and solutions to lower residential properties' operating costs to support
or encourage affordable housing.
b. Monitor Landlord Voluntary Efforts. Monitor and report periodically on the voluntary
efforts by the San Rafael income property owners (more fully described in this report) to keep
rent increases at a reasonable level. This will require contracting for monitoring services.
7. Improve Management of Units. Enforce the on-site residential manager requirement for all
apartment buildings and support management education efforts to improve.
FOR CITY CLERK ONLY
Exhibit A
Page 2
BACKGROUND: In the Fall of 2000, several dozen San Rafael residents attended a City
Council meeting to express their concern regarding recent housing rent increases in the
community. Residents reported monthly rent increases of up to $350 per month and feared they
would need to leave San Rafael to seek affordable housing. The City Council directed staff to
hold a community meeting and pursue solutions to the issue of rising rents. In preparation for
this meeting, staff updated the residential rent surveys completed over the past year and one-half.
The results of the survey indicated significant rent increases for two bedroom/two bath units as
follows:
• Newer buildings with amenities: Current market rent $1,900 - $2,500
• Increased 50% between July 1999 & July 2000.
• Little or no change between June -September, 2000.
• Well-maintained older units: Current market rent $1,400 - $1,800,
• Increased 8-10% between the July 1999 & July 2000.
• Increased another 5%+ between June - September 2000.
• Older or less well-maintained units: Current market rent $1,300 - $1,475
• Increased over 12% between July 1999 & July 2000.
• Increased another 5% between June - September 2000.
On November 18, 2000, a community meeting (or town discussion) was held to hear concerns
and identify possible solutions to the issue of rising residential rents. Exhibit A summarizes the
issues and options raised at this meeting. Approximately 100 people attended this half-day
session. At that meeting, staff announced a follow-up meeting to be held on February Pwhen
staff would report back to the community. Staff researched and analyzed the options identified at
the November meeting and completed a report on the issues (Exhibit B). Staff also met with
several community members and groups to discuss staffs opinion on the issues and notify them
of the upcoming staff report and second town meeting. The report was published on January 26,
2001 and copies were made available at City Hall, the Redevelopment Agency office, on the
City's website, at City Hall at the Mall, and at all -the community centers. The executive
summary of the report was translated into both Spanish and Vietnamese.
On February P, a second town discussion was held to discuss the options to provide affordable
housing and deal with rising rents. Approximately 200 people attended this half-day session.
The meeting was divided into discussion groups or stations to hear community comments on the
following: 1) Rent Stabilization; 2) Housing Conditions; 3) Tenant Assistance; and 4) Housing
Supply. Community comments from the February P meeting are summarized in Exhibit C.
Exhibit D is a compilation of letters and e-mails received on the topics raised before and after
that second town discussion.
Since February P, staff has held numerous meetings with housing and social service groups,
tenants, real estate representatives and income property owners to further discuss the options
which staff proposed as well as to discuss new ideas. In addition, many members of the both the
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tenant community and income property community have met among themselves to discuss their
reaction to staff's report on rising rents. The results of these meetings are discussed below.
ANALYSIS: Based on the results of the community meetings with tenants, income property
owners, and social service agencies, staffs opinions described in Exhibit B are presented here as
recommendations before the City Council with the following two exceptions:
Rental Standards Ordinance vs. Voluntary Measures. While the City Council could consider
the rental standards ordinance proposed in the attached report, staff is recommending holding this
option until voluntary measures proposed by local income property owners are given an
opportunity to succeed. This voluntary effort has been crafted by a group of residential income
property owners and managers that have met several times over these last few months to discuss
an alternative to the rental standards ordinance. They have been gathering signatures to a
voluntary agreement which will limit rent increases to once a year, keep rent increases below
10% per year, provide 60 day notices for all rent increases, and keep their properties up to code
(See Exhibit E.) Efforts will continue to increase the number of voluntary signatures by
apartment owners over the next few months. It is staff's recommendation that this voluntary
effort should be given a chance for several reasons:
1) The rental standards ordinance was seen by many of the property owners as governmental
intervention that would eventually lead to rent control. As such, they vehemently oppose this
approach and many have threatened or possibly have enacted rent increases now to offset any
restrictions in the future. A voluntary effort can avoid this type of reaction.
2) The voluntary effort includes longer tenant notices for all rent increases, not only for those
increases over 10% as was included in the proposed rental standards ordinance.
3) Less governmental action means less administrative costs. The rental standards ordinance
would have required much more staff time or contractual services than that required to
monitor the voluntary effort.
4) If the number of property owners' signatures does not increase over the next few months or if
the monitoring reveals that owners are not abiding by the agreement, the City always has the
option of reviewing the situation and considering alternative solutions.
The property owner representatives have agreed to post the signed voluntary landlord agreement
at each apartment building and make them available as part of the City's public record. Further,
the owners have agreed to set up a phone line/voice mail to receive complaints. These
complaints could involve properties owned by members of this voluntary program as well as
those owners that have not signed on. This new owner organization will seek to influence
property owners to abide by the voluntary agreement (if there is noncompliance) or join the
voluntary movement (if they have not yet done so). This owner organization would assist in
monitoring rent increases and resolving issues where possible. Further, this organization would
report regularly to the City regarding complaints and rental issues.
A group of San Rafael tenants attended a meeting with representatives of the property owners
and presented an alternative proposal (Exhibit F). This tenant proposal clearly seeks more
restraint on rent increases and more enforcement mechanisms to ensure the voluntary effort has
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some "teeth" to it. Other tenants at the meeting requested binding arbitration to deal with
tenantllandlord disputes, a measure staff does not recommend. Binding arbitration would require
a decision regarding fair return to landlords and that brings forth all of the issues of a rent
stabilization ordinance which is not recommended.
Staff does agree with the tenants' view that this voluntary property owner effort should include
objective, third party monitoring of the situation, and staff is recommending the City contract for
this effort. This monitoring would include a review of complaints of unfair rental actions, but
would not put the City in a mediation role. The monitoring agency would be in contact with the
property owner organization to seek clarification of issues and self -enforcement of voluntary
agreements. Staff would provide a report on the voluntary efforts in December of each year
along with the annual housing report of the Redevelopment Agency. This report would include
information regarding complaints from tenants and results of the monitoring effort, including
actions taken by the property owner organization to resolve the issue. Staff would also update
the City Council periodically on the results of the monitoring, and the Council could call for a
hearing on the matter at any time. In addition, staff agrees that there is a need for better property
management as discussed below.
Improvements to Residential Property Management. In addition to the proposed actions in
the attached report, staff is also recommending that better efforts be made to improve the on-site
management of the apartment units in San Rafael. Health & Safety Code requires that all
apartment properties over 10 units have a manager on-site to deal with tenant issues and property
maintenance issues. Staff is recommending that the City enforce this requirement as part of the
additional code enforcement actions recommended in Exhibit B. In addition, staff would like to
pursue a coordinated effort to assist in training apartment managers. This coordinated effort
would be undertaken by staff from Code Enforcement, Community Policing, Fire Department
and any other agencies such as Fair Housing concerned with housing services. BRIDGE
Housing has offered to provide assistance in this effort from their property management
company.
STEPS TAKEN TO DATE: Over the last few months, staff has taken several steps to address
the rising rent issues:
1) Preliminary meetings have been held with the County to discuss assumption by the City of
the County's responsibility for housing code enforcement outside of the Canal in San Rafael.
The County staff was receptive to the idea and has agreed to work with City staff to
investigate this further. Should the City take on these enforcement responsibilities, at least
two additional code enforcement officers will be needed to provide a proper service level.
Options and funding sources will be identified during the budget process.
2) The Redevelopment Agency has been working with BRIDGE Housing who is under contract
to purchase 55 Fairfax St., a 40 -unit apartment building, to create affordable units. In
addition, the Agency has agreed to assist the Canal Community Alliance in purchase of a
four -unit condominium on Novato Street. The Agency is also considering buying a
condominium at Boyd Court to retain its affordability. In addition, the City Council approved
funding (Community Development Block Grant funds) to assist Homeward Bound.
Q
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3) City staff has been working with and has convinced the other cities and towns to make the In
Reach Job Connection program their top priority for State funding ($175,000) this year. This
program will match disadvantaged job seekers with public service jobs. (see Exhibit G)
4) City staff has discussed the concept of a tenant organization effort with the Marin
Community Foundation and will support a grant application by a local nonprofit to initiate
these organizing efforts.
FISCAL IMPACT: $20-25,000 per year to be funded from Redevelopment Housing Set -Aside
Fund to contract for services to monitor the voluntary efforts of the income property owners. The
fiscal impact of additional code enforcement efforts will be brought back before the City Council
once a plan is completed.
OPTIONS:
A: Accept staff recommendations
B: Direct staff regarding modifications to staff recommendations
RECOMMENDATION: Staff recommends that the City Council direct staff to do the following
steps to address the issue of rising residential rents in San Rafael:
I. Increase Supply. Identify additional housing sites and policies to assist in the creation of
new housing through the General Plan Update process.
2. Improve Code Enforcement Efforts. Prepare a plan to fund and increase residential code
enforcement to ensure safe and sanitary housing is available at all rent levels for
consideration as part of the 2001 — 2003 budget.
3. Increase Tenant Assistance. Support efforts in the San Rafael community to create and
fund tenant education programs, increase mediation efforts, create tenant organizations,
increase rental and deposit assistance, provide assistance to move into homeownership, and
other solutions to assist tenants.
4. Pursue Tenant Employment Opportunities. Pursue employment and training programs,
which could create job -training opportunities for local residents for construction and public
service jobs.
5. Continue Partnerships for Affordable Housing. Continue to partner with non-profit
agencies as well as private owners to secure regulated affordable units, including new and
creative approaches such as: community land trusts, employer housing trusts, cooperative and
non-profit ownership, and solutions to lower residential properties' operating costs to support
or encourage affordable housing.
6. Monitor Landlord Voluntary Efforts. Monitor and report periodically on the voluntary
efforts by the San Rafael income property owners (more fully described in this report) to keep
rent increases at a reasonable level.
7. Improve Management of Units. Enforce the on-site residential manager requirement for all
apartment buildings and support management education efforts to improve.
EXHIBITS:
A: Community Comments from November 18, 2000 Town Discussion
B: Rising Rents Report
Page 6
C: Community Comments from February 3, 200I Town Discussion
D: Written comments received on the issue of rising rents
E: Voluntary Proposal from representatives of Income Property Owners
F: Proposal from Tenants
G: In -Reach Job Connection Proposal
EXHIBIT A
RISING RENTS TOWN MEETING
SATURDAY, NOVEMBER IS, 2000
SUMMARY OF SOLUTIONS:
• Rent control at local level
• Enforce housing code
• Information and education on Renters' Rights
• Affordable housing for Canal Community
• Canal Community recognized as working force in community
• Contract with landlord on rent increases; limitations before moving in
• Landlords not to be able to evict (for more rent)/ protection for tenants
• Study what works in other cities
• Board or commission for dialogue
• Spread increases over time
• Incentives for property owners to create affordable units
• Change zoning to allow more development
• Tenants' Advisory Board
• Change state law to provide incentives for housing
• Purchase properties for community ownership
• Increase deed -restricted units
• Allow more live/work units
• Rentcap
• Home owner opportunities for current renters
• Co-op housing
• More housing inspections
• Build more housing
• Discussions to create solutions
• Second Units—encourage and allow
• Rent moratorium
• Tax relief for rental property owners
• Community education about long-term impacts
• Watch rental growth (not outpace job growth) _
SOLUTIONS THEMES
• Land use and zoning changes
• Co-op housing
• Emergency measures
• "Rent Control"—modified?
• Rent moratorium
• Rent roll -back
• Lease Agreements
• Just cause evictions
• More building inspections
• City negotiate with owners and tenants
• "Planned Affordability"
• Build more housing
• Land Use and Zoning
• Zone more housing instead of business, warehouse, etc.
• Close to Downtown
• Subsidies to developers
• Tax incentives
• Co-operative Housing joint ownership? They have control
• Safety -net for current residents
• Rent control and rollbacks—lower rent to previous level
• Emergency situations
• Emergency rent money to prevent people from being "on the street"
• Landlords rent to Section 8 tenants
• No rent increase without improvements—minimum rent should not mean
sub -standard housing
• Landlords agree to six-month or one-year leases
• More City inspections of buildings (kids get sick from bad/unhealthy
conditions)
• City negotiate with owners' associations and tenants' associations (Have
City -sponsored negotiations). Reframe "rent control" with new language
• Create more housing
• City develop policies to reward developers
• Change City plans to support
• Statutory protections at regional/state level—support locally
• "Renter's Bill of Rights"
• Marin towns must re -use housing policies
• New law --60 days notice for increase of 10% or more
• EMERGENCY freeze on rents between Thanksgiving and New Years' Day
by City Council
• Non-profit agencies work towards getting money to buy buildings for
existing tenants (rent increase moratorium) _
• City could provide tax incentives to landlords to stabilize rents
• BUILD MORE HOUSING
• 85% open space—build on green spaces?
• Help renters move to home ownership
GROUP ''A" SOLUTIONS
• We must build more housing
• Government/ other subsidies and assistance in finding them
• Land "bank" land to use for housing—set standard or encourage
• Long-term solutions --community land trust/control of residents
• Charge fair and equitable for MMWD costs
• Permanent order for bidding—no cause evictions
• Three to five-year moratorium on rent increases, with more benefits for
landlords who have maintained low rents
• San Rafael should encourage other cities to address issue of rising rents
• Rents should be based on wages paid, not on average income
• FAR ordinance should replace footprint ordinance
• Information on Ignacio military housing
• Must have rent control ordinance (Also, good for housing owners with
provisions for increasing utility bills)
• Deal with issues, moratorium only delays (stops people from being thrown
out on streets)
• Can generate recruiting effort to find landlords who are wanting to work for
good of community
• We need to increase number of living units. Rent control will increase
number of affordable units.
• We may need to compromise. Moratorium/rent control for more than four
units for one year until there is a solution
• Rent control works in mobile home park
• We need to increase number of available units for rent within area
• Look at modifying parking restrictions
• Infill—use housing already in place and add on
• Put vehicles in garage
• Use infill—make it easier/more affordable
• Second units—make it easier
• Housing instead of office buildings
• Arbitration board if rent control is adopted
GROUP "B" SOLUTIONS
• Begin to build housing for low income
• Effective process—solutions faster
• Education/ Renters' Rights/ Housing codes
• Rent control
• Rent increase should consider interest rates and cost of living
• Consider raise in living wages
• Must realize reality of wages
• Government-owned housing/ subsidized housing
• Rent stabilization ordinance
• Property owners and residents working together
• Rent control
• Moratorium for one year or three years until solutions are accomplished
(four units or less are exempt)
• Zoning—multiple housing and low cost (no monster homes)
• Tax relief for rental property owners
• Stronger state mandates with teeth
• Community Land Trust—trust of dollars to build low cost housing
• Regional government, zoning
• Building more/affordable units and increase density
• Relocation ordinance
• Emergency Moratorium
• Institute just cause eviction
• Tax breaks
• Create more supply of affordable units
• Create more rental housing
• Stop rent increases
• Housing Element
• Modified rent control
• Meet with landlord groups/City officials
GROUP "C" SOLUTIONS
• More non-profit housing and dollars to purchase housing
• Rent control moratorium
• Tax relief for rental property owners
• Study factors of increases
• Community education (PR education)
• Build more housing—rezoning
• Stronger state mandates with teeth—stronger decision makers
• Housing emergency
• Educate public—trends
• City assistance to landowner—penalty for non performance
• Lower water rates—lower baseline
• Regional government?
• Immediate drastic decisions for now and for long-term
• Bargain sale properties
• Countywide—Marin Housing Agency
• Finding
• Funding
• Management
• Dispute resolution and solutions
• Study other solutions
• Marin -wide solutions
• Increase housing with increase in commerce
• Rental subsidy
• City -controlled affordable housing (support for first-time buyers)
• Community Land Trust/Non-profit
• Building purchases
• Private money
• Large employers
• Look for non-traditional funding
• Legal second units
• Link with open space funds
• Link with State funding
GROUP "D" SOLUTIONS
• How can we address the rapidly -rising rents? (What might be most effective)
• Rent stabilization
• Educate community—impact of rising rents on schools, properties, etc.
• Establish a Board or Commission --dialogue between tenants and landlords
• Spread out rent increases over time
• Living wage
• Tenants' Union
• Property owners and City work together
• Zoning for tax revenue/ commercial use or single family needs to change to
allow higher density and mixed use
• Build smaller housing units to create more units and more affordable units
• Change state law to create incentives for housing
• Follow the County Plan—housing near public transit
• Create advocacy group to support higher density and new housing
• Rent cap that "good" landlords believe is fair and is enforced by the City
• City Council pass resolution supporting necessary state Iaws
• Renter's equity—involve financial institutions, encourage "good" tenants
• Focus on creating more supply
• Create incentives for property owners to create affordable units
• Change zoning to require minimum density
• Non -monetary incentive (e.g. water fees)
• Relocation ordinance
• Purchase properties—community ownership
• Regulations need to change to assist in increasing supply
• Education regarding how to live better in small spaces
• Emergency moratorium on rent increases
• Increase deed -restricted units
• Institute just cause eviction
• Live/work units—change restrictions to allow
• Tax breaks/fast-tract to assist in building more housing or create in-law
units
CI'T`Y OF SAN RAFAEL TOWN MEETING. NOV 18, 2000.
Solutions. How can we solve the rising rent problem?
SPANISH GROUP # 1.
Rent control.
Landlords and Tenants need the benefits. Rent increase needs to be in a logical and
reasonable way. A balance of indicators based on inflation rates and interest rates.
Government has to have a solution.
Rent needs to be according to real income of this community.
+ More low-income housing and more subsidy housing. Up -date the eligibility guides
to qualify for those programs
United community with no fear of immigration status.
Housing Programs for all low-income people; regardless of immigration status
Start recognizing the work force that we constitute.
Raise salaries
SPANISH GROUP # 2.
Build more housing for low-income people.
Rent control. Local level. Freeze.
Yearly inspections:
Code enforcement with no rising rents
Better ways to make a report
Information and education about tenants rights.
VIETNAMESE SOLUTIONS — RISING RENTS WORKSHOP
Talk to the owners about lowering the rent.
Ask goverment to join to stop the raising of the rent.
Government should buy houses and let people rent these houses according to the
price that the government sets.
Laws to check and raise the rent according to the price of the house at that time.
Goverment offer subsidies for rent.
r
GROUP "A" STATING THE PROBLEMS
• Things experienced or observed
• Twenty families forced to leave area due to increased rents
• In last three months two board members had to move (rent increases)
• Same apartment household gone from single income to four incomes in
last five years
• Commercial rents will have drastic impacts on residential rents
• Loss of lower cost housing due to upgrading normal homes to "monster
homes"
• More and more lower-income families are being pushed out to other
cities/traffic impacts
• Large number of seniors getting rental increases
• Single -parent families are heavily affected
• Apart from rent increases, legal limit of deposit makes move -in costs
difficult
• Housing prices (for condos) have doubled
• How does it affect you?
• As home owner, have always welcomed single parents; Economic issues;
Mom and pop owners are caught in vice
• Us vs Them is not the solution
• Way beyond fair return
• Availability of housing is limited. Must "swallow rights" to keep housing
• Some landowners are gougers
• Effect of high rents—will lose diversity
• Over years the market has tightened. Reaction—rent control
• Class issue vs Race issue
• Traffic
• Taxpayers—Section 8 Housing
• Money to daycare
• Tax money—developers will rise
• We have become greedy people, due to expectations
• We have a social responsibility to others
• GP to protect character. Changes to appearance of neighborhoods
• $900 to $1,300 per month rent increase. How do I keep off the streets?
•
Observed/ Effects
• Rent increases
• Single parents can't afford
• People are forced to leave area
• Moving -in costs are very high
• Class problems/issues
GROUP "B" STATING THE PROBLEM
• Community problems
• Canal area --who is replacing displaced tenants? Rents are raised
without improvements
• Overcrowding and people not vacating
• 50% up in the last year. Some people become homeless
• Some ggod landlords pay premium prices for real estate investors.
Extreme increases when property is sold.
• "Rent control" --sometimes no incentive for landlords to improve property
• Rent increases—some for newly -sold buildings/some for old buildings
• Sample problem—Landlord purchased building, did not plan money for
repairs, rent still increased but no repairs
• Hard to CARE about COMMUNITY if you may need to leave
• Hard for BASIC SERVICES—too far for people to commute
• No transportation to allow commute
• CANAL: Single mother with two children. Rent goes from $400 to
$1,100 (owners can increase rent whenever they want and owners want
people to move so they can make more money). She needs ROOMMATE
now and she is very worried about her family. It is hard to find
TRUSTWORTHY people to share rents.
• OVERCROWDING -16 people in one apartment. Very unhealthy.
• Property management: can't usually help people with less than $2,000
per month (two years ago $800-$900 was OK)
• Landlords—when they raise the rent it creates a new "MARKET VALUE"
• INCREASE IN HOMELESSNESS and families in transition
• Hard for SENIORS with fixed incomes
• CANAL has a "bad rap", but values are still going up ("gentrification")
• Rising rent is causing companies to move out or not come in (Example is
Fair, Isaac)—employees cannot afford to live nearby or commute
• CANAL—people have family and support them, but can't afford to stay.
Kids have to change schools.
• Mediation Services—people changing property to make more money.
Renters get only a 30 -day notice.
• COUNTY DIVIDED
• Old homeowners
• Renters
• New buyers (with more money)
Housing conditions are POOR (Rats). People are on the streets (Third world
atmosphere)
THEMES
• Rents rising rapidly
• Affecting WORK FORCE (can't afford to live and commute is too far)
• OVERCROWDING (Unhealthy, unsafe living conditions)
• ANXIETY—Tenants are vulnerable
• CITY-WIDE problem
• People not committing to community (afraid they will have to leave)
• Loss of social support
• Inflationary pressure
• Affectin educ t' d C_
'l
g a ion an mi y (support of children because parents must
work extra to Pay the rent.l. Future not good for the children.
GROUP "C" STATING THE PROBLEM
• Teachers need affordable housing
• Families have to "double -up"
• Workforce is pushed out of community
• Overcrowding
• Suburb of San Francisco (San Rafael is not more affordable than San
Francisco)
• Marin is very exclusive, no more housing available
• Negative voices at Council meetings
• Workforce people are moving to Richmond (increases traffic)
• Marin is becoming less diverse
• Elder care is expensive
• Canal Area
•
Landowner—Code enforcement requiring renovation—cost of business
passes to tenant
• Needs teacher affordable housing
• Canal is less transient—community leaders are being forced out
• Property owners make improvements prior to City action
• What does this mean to the community:
• Environment --commuter traffic
• Large homes—convert to housing
• Available land—develop density
• Quality of life—loss potential
• General Plan—Countywide
• Raising property value = rising rents
• Cost of housing going up
• Impacting diversity, workforce availability, community stability and
quality of life (traffic, cost of services, etc.)
• Result --doubling up, increase cost of business and living in Marin
• Regional problem (San Francisco, San Rafael, Richmond)
GROUP "D" STATING THE PROBLEM
• Expensive to live here/no entry level employees
• Canal area—people needing to move out of area, losing support systems,
disrupting families
• Highly skilled law firm support staff must travel far to work in San Rafael
• Rents up 40% in one year; up 40% in three years, up 30% in two years
• Impact retirement plans, month-to-month not a yearly lease, HOME
OFFICES
• SmalI businesses impacted (paying rent instead of retirement)
• Canal—rents up $300 in three months. Single mom must work extra hours
= more time away from children—scared every month about rent increases
• Would like geographical break -down (Canal has more than others?)
• Families need to leave Parish, live in overcrowded apartments, hard to
replace teachers (one teacher went to Richmond)
• HUD shows 20% increase in one year. Tenants come in with 30%-50% or
multiple increases per year by landlords with code violations (CANAL AREA
EXPECIALLY)
EXHIBIT B
Options Regarding Rising Rents in San Rafael
January 2001
Summary
Recent housing rent increases in the Bay Area region have been experienced in the City of San
Rafael and the need for more affordable housing throughout the region is a severe reality. The
San Rafael City Council recognizes this great community need and has directed City staff to
pursue alternative solutions with the San Rafael community. On November 18, 2000 a
community meeting was held by the City to identify possible solutions to the affordable housing
crisis, specifically rising rents.
A long list of possible solutions was created for further research, including options such as a rent
free/c, rent rollbacks, a rent stabilization ordinance, tenant organizing and rental assistance,
increased code enforcement, construction of new housing to meet local demand, changing zoning
and other regulations, and many other concepts.
City staff has researched and analyzed options identified at the November meeting, and has
prepared a report summarizing staff's findings and opinions on each. The report is intended to
foster discussion at the upcoming February 3, 2001 community meeting (at Pickleweed
Community Center from 9 a.m. - 12:00 p.m.) and provide basic background material and
potential implications for each option.
Stall's conclusions, more Luffy described in the report, are as follows:
"ncc City is not in a position to be able to freeze or rollback current rents. A freeze would
only be feasible for a short period of time to allow the enactment of a rent stabilization
ordinance.
• A rent control or rent stabilisation ordinance, which stipulates the size of permitted rent
increases, is not recommended. This type of ordinance coGld reduce the displacement of
current tenants but could over time reduce the number of rental units available to future
tenants, and contribute to the decline of the safely and maintenance of rental units. Recent
changes to State Law have diminished its effectiveness to assist low-income tenants.
Litigation would be likely. A rent stabilization ordinance would not reduce existing rents.
•
The City Council could consider a rental standards ordinance to provide protection against an
excessive number of rent increases, provide the tenants with additional time to prepare for
the increase, provide a forum for a dialogue between the tenants and owners, limit increases
for units that are not tip to code, and provide limited eviction protection for tenants exercising
their rights under the ordinance.
The City could seek a financial mechanism to increase residential code enforcement
throughout the City.
Page 1 of 2
• The San Rafael community (non-profit organizations, private parties, tenants, owners,
foundations) should work together to create and fund tenant education programs, increase
mediation efforts, create tenant organizations, increase rental and deposit assistance, pro%-rde
assistance to move into homeownership, and other solutions.
• Existing employment and training programs should be expanded to include job-trainllrg
opportunities for local residents for construction and public service jobs.
• The City should encourage methods to increase the supply of affordable housing through lis
community-based General Plan Update and subsequent coning regulations.
• The City and Redevelopment Agency should continue to partner with non-profit agencies as
well as private owners to secure regulated affordable units.
• The City should continue to lobby for State assistance with affordable housing grants and
loans.
• New and creative approaches to affordable housing must be pursued by non-govemment,rl
agencies such as: community land trusts, employer housing trusts, cooperative and non-profit
ownership, housing advocacy groups, and other community based solutions.
• The real estate community. in partnership with the City, should investigate property owricr
assistance programs to lower operating costs to support or encourage affordable housing.
Public comments raised at the February 3'a meeting about the above conclusions will be
considered for a staff presentation to the San Rafael City Council_ The City Council will then
hear public comments and direct staff accordingly regarding which options to research further.
which should not be considered, and which should be immediately implemented.
For a copy of the full report visit www-cityofsanrafael.org or pick up a copy at one of the
following locations:
• Redevelopment Agency, 1313 Fifth Avenue
• City Clerk's Office. City Hall, 1400 Fifth Avenue
• San Rafael Community Center, 618 B Street
• Pickleweed Park Community Center, 50 Canal Street
• Terra Linda Community Center, 670 Dcl Ganado Road
• City Hall at the Mall, 3330 Northgate Mall
For more information call (415) 485-3383.
Page 2 of 2
ESI
Summary of Options Regarding Rising Rents
January 2001
For presentation and discussion at the
February 3, 2001
Town Discussion
Pickleweed Community Center
9am-12 pm
For more information call
485-3383
Table of Contents
INTRODUCTION..........................................................................................................................1
RENTS TA BIL 17A TION .............................................................................................................. 3
Freezeor Rollback of Rents.................................................................................................................. 3
Rent Stabilization Ordinance................................................................................................................ 4
RentalStandards Ordinance................................................................................................................. 6
Eviction Control Ordinance.................................................................................................................. 7
HOUSINGCONDITIONS........................................................................................................... 8
Increased Code Enforcement................................................................................................................ 8
Safe, Healthy and Affordable Housing Program ("CASH").............................................................. 9
TENANTASSISTANCE........................................................................................................... 10
TenantEducation and Resources....................................................................................................... 10
TenantOrganization............................................................................................................................ 11
Depositand Rent Assistance............................................................................................................... 12
Homebuyer Assistance......................................................................................................................... 13
HOUSINGSUPPLY................................................................................................................... is
Reducing Barriers to Affordable Housing......................................................................................... 17
Methods of Ownership......................................................................................................................... 18
Financing for Affordable Units........................................................................................................... 19
Property Owner Assistance to Promote Affordable Housing.......................................................... 21
CONCLUSION............................................................................................................................ 22
AppendixA................................................................................................................................ 24
Comments from November 18, 2000 Community Meeting.............................................................. 24
AppendixB................................................................................................................................ 27
HousingInformation ............................................................................................................................ 27
Q �
INTRODUCTION
The City of San Rafael has long been involved with the issue of affordable housing. Through
both City efforts and Redevelopment Agency actions, San Rafael has achieved significant
progress towards its affordable housing goals. Since I986, just under one-quarter (23%) of the
housing units built or approved were restricted to be affordable in price. These units are
specifically priced to be sold or rented to low or moderate -income households for an amount less
than the fair -market value of the unit. Increases in prices and rents are restricted to maintain
affordability. See Appendix B for more information on units with affordability restrictions in
San Rafael.
In spite of the City's efforts, recent rental increases in the Bay Area region have been
experienced in San Rafael and the need for more affordable housing is a severe reality. The San
Rafael City Council recognizes this great community need and has directed City staff to pursue
alternative solutions in discussions with the San Rafael community.
On November 18, 2000 a community meeting was held by the City to identify possible solutions
to the affordable housing crisis, specifically to the issue of rising rents. A long list of possible
solutions was created for further research (see Appendix A). This document is intended to
summarize and analyze City staff findings and opinions regarding affordable housing and tenant
assistance options. This document provides basic background material and potential
implications for each option in order to foster discussion at the upcoming February 3, 2001
community meeting (at Pickleweed Community Center 9 am —12 pm).
Within the limits of time available, no one concept has been afforded all of the analysis and
summary it deserves. However, this document does provide the key points for community
consideration and discussion and will be the foundation, including public comments, for a staff
presentation to the City to the San Rafael City Council. The City Council will then consider the
recommendations, take public comments and direct staff regarding which options to research
further, which options should not be considered, and which should be immediately implemented,
if possible. Several options require no City action and can be implemented by other community
members and organizations.
In order to complete this analysis, City staff conducted preliminary research on the associated
legal and policy issues, spoke to housing professionals in other communities to understand the
possible implications, and discussed the issues among staff of various departments and legal
counsel. More in depth analysis will be required prior to implementation.
The following assumptions and parameters underlie staff's analysis:
• A community goal is to match affordable rents to families of low income over the long term
and avoid displacement of San Rafael's workforce.
Property owners are entitled to a fair return on their investment. Local government is only
one part of the solution to the affordable housing issue. The San Rafael community must
work in concert on housing solutions with the City, County of Marin, non-profit service
Page 1 of 33
providers, private sector owners and operators of housing, philanthropic agencies, State and
Federal government, our local business community and San Rafael residents.
Ultimately, exorbitant rents come from a lack of supply to meet demand, and significant
improvements will only come with the construction of new housing in San Rafael.
This document is divided into six sections or general topics:
Rent Stabilization. This section discusses issues related to rent control and presents alternatives
for stabilizing rents and ensuring safe and healthy housing.
Housing Conditions. This section discusses the City and County's code enforcement efforts
and ways to increase this enforcement, and presents an additional approach to improve the
condition of current housing.
Tenant Assistance. This section includes a discussion of tenant education, mediation and
resources, tenant organizations, deposit and rent assistance, and homebuyer assistance programs.
Housing Supply. This section discusses the many issues related to local regulations for housing
construction, financing issues for housing, alternative models for ownership, and potential
landlord assistance or developer financial incentives for affordable housing.
Appendix A is a summary of the comments from the November 18, 2000 community meeting.
Appendix B provides additional data on affordable housing in San Rafael and Marin County.
Page 2 of 33
RENT STABILIZATION
This section of the report looks at four different but related approaches to stabilizing rents in San
Rafael. These include:
• Freeze or Rollback of Rents
• Rent Stabilization Ordinance
• Rental Standards Ordinance
• Eviction Control Ordinance
Each concept is briefly described, a discussion of the benefits and implications is included, and a
short section on implementation is summarized.
Freeze or Rollback of Rents
Definition: Emergency action taken by the Government to implement a price freeze on rental
units, or to require landlords to reduce their rents to a level that were in place at a specified date.
Background: Previously undertaken by Federal government during times of civil emergency
such as after WWII. Cities have enacted freezes in conjunction with a study period when a
locality is considering a rent stabilization ordinance to avoid rent "spikes" in reaction to the
upcoming ordinance. Unlike City authority in the zoning context, there is no statutory authority
to enact such a stand alone rent freeze to study the current situation without a specific plan and
timeline for enactment of a rent stabilization ordinance.
Current Situation: San Rafael has no history of local emergency action of this type.
Benefits: Protection from future increases and, if a rollback, immediate rent relief to tenants
Implications: This type of emergency action is expected to be a temporary measure to deal with
a severe public policy issue. Almost exclusively, rent "freezes" have been enacted by local
agencies in conjunction with the agency's enactment of an overall rent control regulatory
scheme. The purpose of such "freezes" has been to prevent rental property owners from
preemptively charging huge increases in rent in anticipation of rent restrictions effective upon
adoption of a rent control ordinance. It should be noted that these "freezes" have been of short
duration, usually lasting no more than six months. If it were to enact a "stand-alone" rent freeze,
or any rent freeze in excess of six months, the City would most probably be sued to invalidate
the ordinance and to recover damages.
Implementation: Primary responsibility would be the City of San Rafael
City Staff Opinion: No City action.
Page 3 of 33
Rent Stabilization Ordinance
Definition: Regulatory controls imposed by the Government to restrict the amount of monthly
rent and/or reimbursement for capital improvements that can be charged for dwellings units or
mobile home spaces within a City, County or State. Rent stabilization is locally enacted but
State Law sets forth certain requirements for local rent stabilization ordinances: Rent
stabilization ordinances can also be combined with other local regulations including prohibiting
condominium conversions and the removal of rental housing units. Vacancy decontrol is defined
as the ability of a rental building owner to set the rent for a vacant unit. Mobile homes are
treated differently under the law and are not addressed here.
Background: Per State Law, (CA Civil Code 1954.52 & 1954.53) local rent stabilization
ordinances cannot include.
• Single Family units
• Condominiums
• Units constructed after I995
State Law also precludes rent stabilization ordinances that apply to vacant units. The owner can
set rents for vacant units without reference to past rents or a "base rent". After the initial rent is
set following a vacancy, rent stabilization policies will apply during the period of the tenancy. In
addition to statutory restrictions, both California and Federal courts have placed constitutional
restrictions on rent control ordinances. Such limits require that the ordinance permit the property
owner a reasonable return. Most jurisdictions accommodate this requirement by permitting a
variety of passthroughs for extraordinary costs including capital improvements and energy bills.
Also, typically an eviction control ordinance accompanies rent control to protect tenants.
Current Situation: In 1989, the City of San Rafael enacted a rent stabilization ordinance for
mobile home parks, In 1993, the ordinance was amended to provide for vacancy control.
Though the ordinance is still in place, the owner of one mobile home park is challenging the
City's mobile home rent control ordinance on constitutional grounds, alleging over one million
dollars ($1,000,000) in damages. The City does not have rent stabilization for other rental units.
San Rafael does prohibit the conversion of apartments into condominiums. Currently a
significant number of condominiums are rented out, and could not, by State Law, be subject to
rent controls.
Benefits: Rent stabilization is often instituted to avoid the destabilization that can result from the
economic displacement of a large number of tenants. Rent stabilization policies are designed
primarily to stabilize rents for existing tenants as of the date the ordinance is enacted. Rent
stabilization does not rollback current rents; however, future rent increases are controlled. Some
level of rent increase must be permitted.
Implications: This approach cannot rollback rents, therefore only those tenants in place at the
time of the ordinance that can afford their current rent will be assisted. Automatic annual rent
increases are permitted to allow property owners a "fair return," and this may include a pass
through for capital improvements and other extraordinary costs.
Page 4 of 33
Rent stabilization is under litigation in certain localities where it is in place, requiring expensive
defense actions. It is also under attack at the State level and its effectiveness has been eroded.
Rent stabilization can negatively impact new tenants if property owners drastically increase rents
upon vacancy (in order to make up for the lower rents in controlled units). Issues may also arise
regarding tenant flexibility in sub -leasing for long or short periods of time, and with tenants
sharing an apartment, as landlords will be wary of long term tenancy. Rent control could be a
disincentive to properly maintain or improve rental units, as a rate of return on investment is
reduced. Finally, the reduced rent is not tied to tenant income, therefore over time; rent
restricted units benefit may higher income persons along with lower income persons.
Rent control could be detrimental to the creation of new housing. New development is exempt
from rent control ordinances pursuant to State Law. However, developers and lenders could be
reluctant to invest in cities that are perceived to be hostile to property owner interests.
Implementation. To implement a rent stabilization ordinance, several staff positions would be
required and need to be funded, as this would be an extremely staff intensive ordinance to
enforce. To cover these costs, typically a fee is imposed on all rental units subject to the
ordinance and passed through to the tenants. A rent stabilization board could be appointed;
however, the primary responsibility for implementation and enforcement would be the City of
San Rafael.
City Stats Opinion: No City action.
Page 5 of 33
Rental Standards Ordinance
Definition: Provides several approaches to assist in the current rental housing situation;
including: l) limiting rent increases to once a year; 2) requiring a ninety -day rent increase notice
prior to the effective date of the increased rent; 3) with a rent increase of 10% or more, a
mandatory grievance procedure; 4) rent increases over 10% not allowed if there are code
violations; and 5) requiring certain eviction protections.
This type of ordinance would assist in resolving increased disputes over housing quality and
keep housing stock in safe and healthy condition. The grievance procedure can include
mandatory mediation process with a trained mediator, and/or the appointment of a fact-finding
panel to render a non-binding determination regarding the rent increase. If the code inspection
results in code violations, any rent increase over 10% could not go into effect until the violations
were corrected.
Background: Mediation Services currently provides mediation when requested by the tenant or
owner. However, it is not mandatory. State Law requires tenants receive a thirty -day notice prior
to any rental increase or change in the terms of their tenancy. As of January 1, 2001, State Law
requires a sixty-day notice for any rent increase that exceeds 10% of the current rental amount.
A sixty-day notice is required for either a single rent increase or successive rent increases within
a twelve-month period. The additional noticing period requirement is only operative until
January 1, 2006. Code Enforcement efforts by the City are currently on a complaint basis or
based on a large number of police service calls.
Benerts: Mediation provides a forum for tenants and property owners to resolve their
differences with a trained mediator. Limiting rent increases to once a year and requiring a
ninety -day notice allows tenants additional time to plan for a rental increase by finding
roommates or additional income, or allows tenants additional time to find other housing if they
choose to move. Responding to complaints of code violations ensures tenants are provided with
safe and healthy housing. Eviction control measures provide tenant protection against retaliation
during the mediation and code compliance process.
Implications: Does not provide rent relief, as there is no limit to the permitted rental increase.
Mediation is only effective if both parties participate in good faith, which can be difficult. when
the parties are in unequal positions. Landlords can avoid mediation and potential code
inspections by keeping rent increases below 10%.
Implementation: The tenant must report any violation of the requirement, therefore eviction
control measures will be necessary to ensure tenants are not evicted for exercising rights under
the ordinance. Staff anticipates implementation will require additional City staff persons; for
complaint research, to schedule mediations and to complete the necessary inspections and
enforcement. Mediation could be contracted out to a community based organization or trained
volunteers. A fee on each apartment or a fee on the complainants could fund costs of the
program. Could be implemented within approximately one year.
Page 6 of 33
City Staff Opinion: City should consider this in conjunction with implementation of Eviction
Control Ordinance (see below). Further research is necessary to determine costs, staffing,
outside contracts, etc.
Eviction Control Ordinance
Definition: This type of ordinance, also known as Just Cause Protections, would prohibit
tenant evictions except in certain circumstances such as a breach of the lease or non-payment of
rent. It prohibits tenants from being evicted to be replaced with new tenants at higher rents.
Background: This type of ordinance is often adopted in conjunction with a rent stabilization
ordinance to protect tenants living in rent stabilized units.
Current Situation: San Rafael does not have this type of an ordinance.
Benefits: Protects tenants from being evicted so the property owner can receive higher rent or for
other discriminatory reasons. Landlord must show "just cause" for eviction.
Implications: Limits the flexibility of property owners to manage or sell their units. Can create
problems for property owners when an owner desires to live in a unit or rent units to family
members. Requires the City to staff appropriately to manage the investigation of complaints
from tenants, hold hearings and make rulings.
Implementation: To implement an eviction control ordinance, additional staff would be
required and will need to be funded, as the primary responsibility for implementation and
enforcement would be the City of San Rafael. Funding sources could be collected from all rental
property owners, City General Fund, and/or combined with fees charged for hearings. At least
one year would be required to implement this ordinance.
City Staff Opinion: City should consider implementing eviction protections for tenants
exercising their rights under the rental standards ordinance.
Page 7 of 33
HOUSING CONDITIONS
This section discusses the City and County's code enforcement efforts, ways to increase this
enforcement and presents the CASH program as an alternative approach to improve the
condition of current housing.
Increased Code Enforcement
Definition: Increase level of apartment unit inspection so more buildings are inspected more
frequently. Provide inspections when rent increases exceed a certain percentage and the tenant
requests an inspection.
Current Situation: Marin County Environmental Health Services inspects all 7,600 apartment
units in the City, and provides enforcement action on units outside of the Canal. The Marin
Housing Authority inspects all 600 Section 8 apartments in San Rafael for minimum livability
standards. The City began inspection of Canal apartment units in 1996 pursuant to an agreement
with the County.
In addition to the County inspections, approximately 300 of the 1,700 Canal apartment units are
inspected annually for compliance with provisions of the Uniform Housing, Building and Fire
Codes. One full time Code Enforcement Officer conducts the inspections, with assistance from
the Building & Safety Division and Fire Department. The inspections include identifying safety
violations such as faulty wiring or unsafe stairs, as well as livability problems such as inoperable
heaters and broken windows.
Canal apartment buildings are selected for inspection based on complaints from residents or a
large number of police service calls. In addition to abatement of code violations, Community
Police officers work with building owners to eliminate potential crime areas. The Code
Enforcement Division and Police Department have also hosted seminars with apartment owners
and managers on building maintenance and minimum code requirements. Currently the City or
County typically inspects Canal apartment units every three or four years.
Benefits: The Canal apartment inspection program has significantly improved the safety,
livability and appearance of housing units. An increase in the frequency of inspections would
further improve living conditions
Implications: Code enforcement often results in owners making additional investments in their
apartment buildings, which may result in increased rental rates. Additional staffing for
inspection and enforcement action will be required.
Implementation: Increasing the City's apartment inspections would require additional staffing.
One option to increase the level of City enforcement would be to assume responsibility for all
apartment inspections from the Marin County Health Department, as well as the County's fee
revenue for the inspection services. These funds would allow for the hiring of a half-time City
code enforcement officer. This transfer would require the County's agreement.
Page 8 of 33
City Staff Opinion: The City should consider increasing code enforcement and inspections for
all rental properties in the city working with the Marin County Community Development
Agency and seek additional funding for this effort.
Safe, Healthy and Affordable Housing Program ("CASH")
Definition: Provides reduced rate loans for rehabilitation and improvements to owners of
apartment buildings in the Canal neighborhood in exchange for long term rent restrictions on a
certain portion of units.
Background: Program instituted by the Redevelopment Agency in 1999
Current Situation: The Redevelopment Agency has allocated $250,000 annually towards this
program. To date no property owners have taken advantage of the program.
Benefits: Increases the number of restricted affordable rental units. Provides funds for property
owners to make repairs and rehabilitate their buildings and correct code violations (if any).
Implications: Property owners are reluctant to enter into long tern affordability restrictions or
are concerned about government overseeing their property management. Most owners can
borrow funds for rehabilitation at a higher interest rate but without rental restrictions. Property
owners with high rents are not interested in the program because they would be required to
rollback rents on the restricted unit, potentially jeopardizing their financing.
City Staff Opinion: Continue to publicize the benefits of the program and work with any
interested property owners.
Page 9 of 33
TENANT ASSISTANCE
This section of the report looks at four different approaches to tenant assistance including:
• Tenant Education and Resources
• Tenant Organization
• De0osit and Rent Assistance
• Homebuyer Assistance
Each concept is briefly described, a discussion of the benefits and implications is included, and a
short section on implementation is summarized.
Tenant Education and Resources
Definition: Education for tenants regarding their rights, lease agreements, their responsibilities
as tenants, and what resources are available to them. Includes mediation, legal services, and
referrals.
Background: Tenant assistance programs are provided by a variety of organizations. For
example, housing discrimination is addressed by Fair Housing, legal counsel is provided by
Legal Aid and mediation services for tenants and landlords is provided by Mediation Services.
Various organizations serving low-income persons also provide some housing assistance.
Current Situation: Tenants often access these services through the Housing Assistline. The
Assistline is staffed by Marin Housing and volunteers and provides information and referrals to
persons seeking rental and ownership housing or requesting assistance with housing issues.
Spanish speaking counselors are available. The Assistline staff makes appropriate referrals to
other organizations for mediation and legal services, as well as other assistance.
Benefits: Provides an opportunity to educate tenants about their rights as well as about their
responsibilities.
Implications: To improve or increase tenant education in Marin County, additional funding will
be required. Also, many organizations are involved, therefore coordination among many
agencies would be necessary.
Implementation: Primary responsibility would be with organizations serving renters,
Additional funding would be required to expand existing efforts.
City Staff Opinion: Marin Housing, Fair Housing, Marin Mediation, Legal Aid and others
providing tenant education and resources should work together to expand services and educate
the community about services provided. No City action except for coordination with any other
City efforts such as a rental standards ordinance.
Page 10 of 33
Tenant Organization
Definition: Organization to educate renters on their rights under the current law, promote
renters' concerns to local, State and Federal governments and to work with rental property
owners.
Background: Local and Statewide housing groups represent tenant interests to various
governmental entities regarding policies impacting renters and the rent housing market. There
are also several groups in the Bay Area that are organizing tenants regarding housing standards
and rent stabilization issues.
Current Situation: The Housing Assistline, Mediation Services, Fair Housing and Legal Aid
currently provide tenant education and resources. There is also one volunteer tenant organizer
working in the Canal. San Rafael residents can directly address the City Council on issues
relating to rental housing, however, there is no organized tenants group. Contempo Marin
Mobile Home Park has a very active residents' association that regularly addresses the City
Council and their property owner on issues pertaining to the mobile home rent stabilization
ordinance.
Benefits: Provides information to renters regarding their rights under current law. Provides
access to policy makers on local and State level to promulgate legislation and programs
benefiting residents of rental housing. Provides an organized voice for renters to discuss issues
with landlords and property owner associations.
Implications: A tenant organization must be conceived and managed by tenants so funding is an
issue. Government funding could be perceived as compromising the organization's
independence.
Implementation: Can be organized at any time. The primary responsibility is with the tenants of
San Rafael. Possible partners for tenants are community-based organizations and foundations.
City staff opinion: Tenant, community-based organizations, and foundations should take the
lead in any organizing effort. No City action.
Page 11 of 33
