HomeMy WebLinkAboutED Fair Rental Practices Report 2001CITY OF
SAN RAFAEL
AGENDA ITEM NO.: 14
MEETING DATE: October 1, 2001
REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: Report on Voluntary Fair Rental Practices
SUBNHTTED BY: / L1Lq ej _ &G—
Nancy
Mackle %Rod Gould
Economic Development Director City Manager
RECOMMENDATION: Staff recommends that the City Council accept this interim report
regarding the monitoring of Fair Rental Practices.
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. 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.
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.
The recommended actions were to (a) Increase housing supply; (b) Continue partnerships for
affordable housing; (c) Improve code enforcement efforts; (d) Improve management of rental
units; (e) Increase tenant assistance; (f) Pursue tenant employment opportunities; (g) Accept the
voluntary Fair Rental Practices program ("FRPO") proposed by a property owner group. Staff
reported on the status of all of these items in the September 4, 2001 report to the City Council.
At the conclusion of the September 4, 2001 meeting, the Council requested follow up
information on several issues related to the voluntary fair rental practices program, including;
I. Number of rental units potentially covered by the FRPO program
H. Status on notifying tenants regarding their landlords participation in the FRPO program
M. Information regarding the outcome of the complaints received by Mediation Services.
This report will address those items.
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ANALYSIS:
Number of Units
There are a total of approximately 9,000 rental units (excluding mobile homes) in San Rafael.
This includes apartments, single family homes, duplexes, triplexes, and condominiums, mixed
use buildings, and units owned by nonprofits. The targeted type of rental housing for this
voluntary effort are buildings with four or more units, owned by private parties (not nonprofits
with tax exempt status), and that are not part of a mixed use property. There are approximately
6,100 units of this type of targeted rentals in San Rafael, in 400 properties. The FRPO
membership now includes approximately 2,300 units of this type of housing in 150 buildings.
FRPO rentals now represent approximately 37% of the targeted rental units in the City.
The information on the number of units is from a database provided by the property owners and
checked against a database the Redevelopment Agency purchased from the Assessor. This
"master" database is in a format that can be easily sorted and utilized for mailing to the property
owners. Staff is appreciative of the efforts of Michael Burke of the FRPO group to develop the
database, reducing staff administrative time. Staff has checked the FRPO unit figures and has
confirmed the totals reported.
Status on notifying tenants regarding their landlords participation in the FRPU program
The Mayor and FRPO representative Al Aratmburu signed a letter to the FRPO owners thanking
them for their participation and requesting the FRPO notice be posted at each FRPO property
(Exhibit A). This letter was mailed this week. In addition, City staff is working with FRPO
representatives to finalize and mail a letter to all tenants residing in the 6,100 rental units in this
program. This letter explains the FRPO program and provides the phone number for Mediation
Services. This letter will be mailed next week.
Information regarding the outcome of the complaints received by Mediation Services.
At the September 4th City Council meeting, Mediation Services reported 54 complaints from San
Rafael residents between July 3, 2001 and August 27, 2001. Between August 28`h and
September 21 st, another 21 complaints were received, bringing the total to 75 to date.
Of the 75 complaints to Mediation, only two were regarding FRPO owners, one related to
garbage pickup and the other regarding a maintenance issue (but not a health and safety issue).
Fourteen of the complaints related to rent increases and seventeen were regarding notice/eviction
issues. The remainder of complaints revolved around health and safety issues, security deposits,
landlord harassment and/or discrimination.
All callers are notified of the FRPO program and the tenant organization. Code enforcement
complaints are referred to the City's Code Enforcement Program. A total of four callers
requested mediation, and three of these have resulted in mediation agreements.
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FISCAL IMPACT: None.
SUMMARY: Staff recommends continuing monitoring the FRPO program with periodic
reporting to the Council. Staff recommends the next report occur at the December 17th meeting
as part of the Annual Redevelopment Agency housing report which must also be approved by the
City Council at the same meeting.
RECOMMENDATION: Accept report and direct staff to provide additional reporting at the
December 17, 2001 City Council meeting.
EXHIBITS:
A: Letter from Mayor to FRPO owners.
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CITY DF
AOK Meyer
Albert J. Bore
Coun yAfembers
Paul M. Cohen
Barbera Heller
LyrN. M?'ler
GaryQ Phillips
September 17, 2001
Dear San Rafael Property Owner/Manager,
The City of San Rafael would like to commend you for having volunteered to become a
"Fair Rental Practices Owner" (FRPO). As a Fair Rental Practices Owner, you have
agreed to follow these practices:
1) To limit rent increases to no more than once a year for existing tenants.
2) To give existing tenants at least 60 days advance notice for all rent iricreases.
3) To keep the amount of rent increases for existing tenants to less than 10% per
year.
4) To maintain rental buildings in a safe condition as required by law, and to repair
in a timely manner any unsafe conditions brought to the owner's attention.
5) To encourage other property owners to abide by these same principles for their
current properties and existing tenants.
By adopting these principles, you have assisted both the City of San Rafael and the
tenants of your building in providing and maintaining rental units at a fair market rate.
In a collaborative effort between representatives of property owners, the City of San
Rafael, and Mediation Services, a monitoring program has been set up to track future
tenant complaints and concems both in buildings that are FRPO and buildings that are
not. This will help the City to determine whether the volunteer program is working.
The first report from Mediation Services was encouraging. Of the sixty complaints in
San Rafael over the past two months, no complaints were lodged against a FRPO
owner. The City plans to mail a letter to all tenants in all buildings containing four or
more units listing the special Mediation Services telephone number (507-2834).
9400 Fifth Ave., P.O. Box 151560, San Rafael, CA 94915-1560
Phone: (415) 485-3070 Fax. (415) 459-2242 TDD. (415) 485-3998
The City of San Rafael would also like to ask your assistance in two other areas:
1) Proudly post a copy of the attached notice in English and Spanish in a
convenient location so that your tenants may know of your participation in the
program.
2) Volunteer to recruit other landlords who have not yet signed the voluntary
practices.
Please feel free to call Stephanie Lovette at the City of San Rafael (485-3480), Al
Aramburu at the Marin Association of Realtors (507-1011), or Michael Burke (925-3214)
if you have any questions or would like to offer further assistance.
Sincerely,
AI oro
Mayor
City of San Rafael
Q.(2dAAL(22-,---
Al Aramburu
Director of Local Government Relations
Marin Association of Realtors
FAIR RENTAL PRACTICES OWNER
The owner and management of this building are proud sponsors and supporters of
the volunteer program of "Fair Rental Practices". As such, we have agreed:
1) To limit rent increases to no more than once a year for existing tenants.
2) To give existing tenants at least 60 days advance notice for all rent increases.
3) To keep the amount of rent increases for existing tenants to less than 10% per
year.
4) To maintain rental buildings in a safe condition as required by law and to repair in
a timely manner any unsafe condition brought to the owner's attention.
5) To encourage other property owners to abide by these principles.
If as a tenant you should have any questions, complaints or concerns about this
ownership's compliance with this program, please feel free to contact: Mediation
Services at 507-2834.
Los propietarios y la administracion de este edificio estamos orgullosos de ser los
patrocinadores de este programa voluntario "Fair Rental Practices Owner".
Propiamente dicho, estamos de acuerdo con estos principios:
1) Limitar el aumento de renta a solamente una vez al ano para inquilinos
existentes.
2) Notificar a los inquilinos existentes del aumento por to menos 60 dial de
anticipacion.
3) Mantener la cantidad de aumento de renta para los inquilinos existentes a menos
de 10%.
4) Mantener las habitaciones en condicion segura como requiere la ley y reparar en
manera oportuna cualquier condicion que sea peligrosa.
5) Animar a otros propietarios para complir con estos principios.
Si usted como inquilino tiene preguntas, quejas o preocupaciones con la
conformidad del propietario con este programa, por favor Ilame: Mediation Services
(Servicio de Mediacion) al numero 507-2834.
NOT PART OF PACKET -
RE: SRCC ITEM #14
(10/l/O1)-READ INTO
RECORD BY MICHAEL BURKE,
PRESS RELEASE REAL ESTATE BROKER.
JML
"Fair Rental Practice Owner" FRPO
Presentation to San Rafael City Council, October 1, 2001
Michael J. Burke
The voluntary "Fair Rental Practices" concept is working. It is working because of the
large number of San Rafael apartment owners that have signed on and it is working
because of the current economy. It is working because owners are voluntarily putting up
notices of their involvement in the program while providing the special Mediation
Services phone number to tenants should they have any concerns, questions or
complaints. It is working because we now have in place volunteer property owners to
contact any owner that has received complaints against them through the Mediation
Services number.
When this volunteer program was first presented to the city, about 15 per cent of the
city's apartment properties were signed on. That was an impressive number at the time.
With thanks to the voluntary efforts of many people, that number has grown significantly.
As of the date of the staff report to the council last week, there were 150 verified San
Rafael apartment buildings whose owners had signed on as Fair Rental Practices Owners.
Out of a total of 400 apartment buildings in San Rafael, that represents over 37% of all
buildings. Since last week, I have received additional signatures, bringing that total
closer to 40% of all San Rafael apartment buildings.
Thanks to California Land Title Company of San Rafael, we were able to create a
database of our targeted group - apartment buildings 4 units and greater. The database
was verified by the City against tax rolls provided by the county. Eliminated from the list
were mixed-use buildings having a commercial land use designation and buildings owned
by non-profit groups or those designated for affordable housing.
Previously reported numbers to the City Council included over 60 additional properties
that had signed on but not in the targeted group. These include single family, duplex,
triplex and mixed use buildings. These additional buildings were reported in the earlier
totals given to the city. The 37-40% figures being reported tonight, are only those
owners that have signed on their apartments in the targeted group of 400 buildings with 4
or more apartment units.
About six weeks ago, when I again became involved in the sign up process, a property
owner called me seeking advice. He had received my letter about the Fair Rental Practice
concept and wanted to support it. He was concerned, however, because he had let his
rents get so far behind market. When my letter arrived, he was just about to give a rent
increase that would have been above 10% and did not know what to do. We went over
what it would cost him to cut back the increase and to spread it over two years. Given the
number of owners supporting the program, he did not want to be the one owner making
newspaper headlines as being a greedy landlord. He concluded that the Fair Rental
Practice concept was more valuable in the long run than the money he would loose by not
bringing his rents to market all at once.
This last week I received another call from an owner who was about to go on an extended
vacation. She had signed up and was proudly posting the notice that I had sent her. She
was concerned, however, that good friends of hers, also San Rafael apartment owners,
had been away and may not have received my letters. She gave me their home phone
number, e-mail address and when they were returning so that I could contact them and
tell them of her support and encouragement to sign on.
While it will never be possible to sign up all owners, many already follow the fair rental
practices concept and have always followed it; they just are not willing to sign the form.
The number of sign-ups has reached a point where it is starting to put pressure, however,
on those that have not signed on. As more and more owners sign on, as they put up
notices on their property that they are proud sponsors of the program, as they put in their
ads and "for rent" signs that they are FRPO ("Fair Rental Practices Owners"), as the press
starts reporting the large number of owners that are "Fair Rental Practices Owners",
tenants will seek out properties that are FRPO and choose to rent from them over non-
FRPO buildings.
I want to take a moment to correct a couple of misconceptions. The staff report lists
myself as the owner's group representative. I am not. There is no organized group
representing San Rafael apartment owners. There are only a few volunteers like myself
trying to obtain signatures from 400 different and separate entities. I consider many of
these owners clients. Many seek my advice and council, which I am happy to give.
Neither myself nor anyone else, however, can speak for, or on behalf of, all or any
significant portion of San Rafael apartment owners.
The Fair Rental Practices concept began when a group of about 40 apartment owners met
to come up with a response to the city of San Rafael's request for ideas to resolve
concerns over rapidly rising rents. Speaking before this group of owners, Tom Bannon of
the statewide California Apartment Association (CAA) in Sacramento, suggested a
concept that had been used successfully in other cities in California. That was the idea of
owners voluntarily agreeing not to raise rents more that 10% in any given year.
The owners present embraced the concept and a small group of volunteers met to draft
the actual document. In a second meeting of about the same number of owners, the draft
document was given support, signed by those present and presented to the city along with
whatever other signatures could be obtained.
In addition to the letter that went out from the Mayor thanking the owners that have
signed on and providing them with the notice that can be posted, I have sent owners an
additional copy of the notice along with my encouragement to proudly put the notice up
in a prominent place on their buildings.
One of the supporters of the program has been the long established Marin Income
Property Association (MIPA) the local chapter of the California Apartment Association.
Their board of directors and many of their members have been helpful and continue to
help in gaining support for the program. Most importantly, they have just agreed to be
the recipient of and to follow up with property owners who have received complaints
against them through the special mediation number.
The Fair Rental Practices concept is working also because of the current economy. Rents
are not rising at the same rate they were a year ago when the first public meetings were
held. Market rents that were rising at rates above 10% per year are now flat and in some
cases falling. The number of for rent ads countywide is nearly three to four times that of
only a year ago. Keep in mind that rents will still rise as many owners have always
followed a program of fair rental practices and they have allowed their rents to fall
significantly below market.
In conclusion, I do not believe, given current market conditions combined with the
pressure of so many signing on to be "Fair Rental Practices Owners", that anyone could
conceive of raising rents now at the rates that brought this issue to the City's attention in
the first place.
Thank you.
Michael Burke
Michael J. Burke is a real estate agent with Frank Howard Allen Realtors and has
specialized in Marin and Sonoma apartment sales since 1973. He has served as the
chairman of the Commercial & Investment Committee of the Marin Association of
Realtors, is on the board of directors of the Marin Income Property Association and was
appointed and serves on Marin County's Housing Discrimination Task Force.
Correspondence can be addressed, faxed or e-mailed as follows: Michael J. Burke,
Frank Howard Allen Realtors, 511 Sir Francis Drake Blvd., Greenbrae, CA 94904,
(415)-925-3214, fax 461-5414, e-mail
