HomeMy WebLinkAboutCM Renter Protections 2019Renter Protection Policies
Andrew Hening
Director of Homeless Planning & Outreach
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Just Cause Eviction
Just Cause Eviction policies are intended to provide
stability for households who rent by regulating the
grounds for eviction. Just Cause ordinances typically
identify acceptable reasons that a landlord may
terminate a tenancy “for cause” (e.g. failure to pay
rent, nuisance behavior), as well as other reasons a
landlord could evict for “no cause” (e.g. the landlord is
moving back into the unit). Just Cause ordinances fully
retain the rights of landlords to terminate a lease for
valid reasons, but they also help to prevent the eviction
of responsible tenants, providing them with greater
security and stability.
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Mandatory Mediation
Mediation is a process in which a neutral third party
facilitates the negotiation of a mutually acceptable
resolution to a dispute between parties. With
“Mandatory” Mediation, if a triggering event occurs
(e.g. rent is increased by a certain percentage), then
the tenant is able to request mediation services. It is
then mandatory that the landlord participates in the
mediation process, but the parties cannot be
compelled to reach a resolution. The goal of these
programs is to facilitate constructive conversations in a
neutral and accountable environment.
Renter Protections
Subcommittee
Mayor Gary Phillips Councilmember Andrew McCullough
Supervisor Dennis Rodoni David Levin, Legal Aid of Marin
Scott Gerber, Property Owner
Public Outreach
Renters in the Canal The Marin Organizing Committee
Local landlords and property owners The California Apartment Association
Staff and electeds from the County The faith-based community
The Marin Income Property Association The Citizen’s Advisory Committee
Counterparts at other cities Community members
Local social service providers
Overall, the Subcommittee
recommends that the City
Council adopt both Just
Cause Eviction & Mandatory
Mediation policies.
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County Policy Consideration
for San Rafael Change
Mediation
Statements
Penalties for
violations
Anti-harassment
policies
Failure to be
in Good Faith
An appeals process
The spirit of
mediation
Too broad
Duplicative of
existing policy
We lack
administrative
capacity
Only required if
agreement reached
Narrow to "policy"
violations
Remove, educate on
existing policies
Handle through
the courts
Themes
The City has a limited staff
and financial capacity to
administer these programs.
Is there a way the City can
leverage existing systems?
What’s the real challenge
we’re trying to address?
1. Which Units Are
Covered by these
Policies?
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Bay Area Renter Protection Policies
Jurisdiction Rent Control Mediation Eviction Policies Relocation
Alameda Yes Yes
Los Gatos Yes Yes
Albany Yes
Berkeley Yes Yes
Emeryville Yes
Fremont Yes
Mountain View Yes Yes
San Leandro Yes Yes
Union City Yes Yes
Concord Yes
Richmond Yes Yes
County of Marin Yes Yes
Fairfax Yes Yes
Palo Alto Yes 11
Mediation / Review Programs
Jurisdiction Rent Control Mediation Eviction Policies Relocation
Alameda Yes Yes
Los Gatos Yes Yes
Albany Yes
Berkeley Yes Yes
Emeryville Yes
Fremont Yes
Mountain View Yes Yes
San Leandro Yes Yes
Union City Yes Yes
Concord Yes
Richmond Yes Yes
County of Marin Yes Yes
Fairfax Yes Yes
Palo Alto Yes 12
Applicability of Mediation Programs
Jurisdiction Year
Enacted
Covered by
Mediation
Est. #Covered by Just
Cause
Est. #
Alameda 2016 All rental units 13,389 All rental units 13,389
Albany 2018 All rental units 1,900 --------
Fremont 1997 All rental units 18,000 --------
San Leandro 2001 2 or more units 9,000 --------
Union City 2017 All rental units 5,400 All Rental units 5,400
Concord 2017 3 or more units 8,100 --------
Co. of Marin 2017 All rental units 8,600 3 or more units 4,600
Fairfax 2019 All rental units 385 All rental units 385
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24,011
Housing
Units
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48%
Renters
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San Rafael Rentals by Unit Type
Covering properties with 3 or more units
would impact up to 68% of San Rafael renters.
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Unit Type Estimated
Households
Margin of
Error
% of Total
Renters
1, detached 1,998 +/-298 18%
1, attached 655 +/-158 6%
2 711 +/-208 6%
3 or 4 891 +/-225 8%
5 to 9 1,645 +/-346 15%
10 to 19 1,782 +/-348 16%
20 to 49 1,670 +/-273 15%
50 or more 1,478 +/-278 13%
Mobile home 71 +/-66 1%
Boat, RV, van, etc.66 +/-78 1%
2. What Triggers
Mediation?
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Thresholds for Mediation Programs
Jurisdiction Year Enacted Estimated Units Covered Threshold
Alameda 2016 13,389 5%
Albany 2018 1,900 5%
Fremont 1997 18,000 5%
San Leandro 2001 9,000 7%
Union City 2017 5,700 7%
Concord 2017 8,100 10%
County of Marin 2017 9,900 5%
Fairfax 2019 385 5%
Weighted Average of Bay Area Programs 6%
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The Price to Rent
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$1,800
$1,928
$2,268
$2,510 $2,586
$2,740
$2,874 $2,883
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2011 2012 2013 2014 2015 2016 2017 2018
Source: Rent Jungle
% Change in Rent Prices
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7%
18%
11%
3%
6%
5%
0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2012 2013 2014 2015 2016 2017 2018
Source: Rent Jungle
3. What Type of Data
Can and Should We
Collect, Specifically
with Evictions?
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Levels of Eviction Data
30 or 60-Day
Eviction Notice
Notice to Quit
Unlawful
Detainer
Current
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0
100
200
300
400
500
600
700
800
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Number FiledYear
Annual Unlawful Detainers Filed with
the Marin County Superior Court
The City of San Rafael already
requires businesses licenses for rental
properties with three or more units
(450 unduplicated ownership entities)
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Property
Information
Number of
Units
Ownership
Information
Contact
Information
Property
Management
Information
4. How Much Will
These Programs
Cost?
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Typical Administrative Components of
these Programs and Policies
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Triaging calls
from the public Data collection Public
workshops
Creating and
distributing
collateral
Managing an
appeals process
The mediation
program itself
Typical Administrative Components of
these Programs and Policies
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Triaging calls
from the public Data collection Public
workshops
Creating and
distributing
collateral
Managing an
appeals process
The mediation
program itself
$$$$$
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Contractor Rent Review Board
Description: The jurisdiction
contracts with an outside mediation
provider (e.g. ECHO Housing, the
Marin County District Attorney’s
Office)
Description: The City recruits for and
coordinates a monthly Rent Review Board
Considerations: Available local
providers, cost
Considerations: Staff capacity, willingness
and interest of community members
Cost: The cost of this approach can
varies depending on the vendor. For
example, the DA’s Office initially
quoted the City $400 per mediation.
Cost:Cities with Rent Review Boards
typically have dedicated staff members
working on renter protection or
affordable housing issues. Staff is integral
for triaging inbound requests, scheduling,
and training.
Types of Mediation Programs
Mediation –Level of Demand
Jurisdiction Type of Mediation # Units Annual
Inquiries
Actual
Cases
Case to Unit
Ratio
Alameda Rent Review Board 13,389 188 17 .0013
Albany Contractor (ECHO)1,900 N/A N/A N/A
Fremont Rent Review Board 18,000 71 47 .0039
San Leandro Rent Review Board 9,000 175 29 .0032
Union City Contractor (ECHO)5,400 40 6 .0093
Concord Contractor (ECHO)8,100 N/A N/A N/A
Co. of Marin Contractor (DA)8,600 12 6 .0007
Fairfax Contractor (DA)385 N/A N/A N/A
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Mediation –Level of Demand
Jurisdiction Type of Mediation # Units Annual
Inquiries
Actual
Cases
Case to Unit
Ratio
Alameda Rent Review Board 13,389 188 17 .0013
Albany Contractor (ECHO)1,900 N/A N/A N/A
Fremont Rent Review Board 18,000 71 47 .0039
San Leandro Rent Review Board 9,000 175 29 .0032
Union City Contractor (ECHO)5,400 40 6 .0093
Concord Contractor (ECHO)8,100 N/A N/A N/A
Co. of Marin Contractor (DA)8,600 12 6 .0007
Fairfax Contractor (DA)385 N/A N/A N/A
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Mediation –Level of Demand
Jurisdiction Type of Mediation # Units Annual
Inquiries
Actual
Cases
Case to Unit
Ratio
Alameda Rent Review Board 13,389 188 17 .0013
Albany Contractor (ECHO)1,900 N/A N/A N/A
Fremont Rent Review Board 18,000 71 47 .0039
San Leandro Rent Review Board 9,000 175 29 .0032
Union City Contractor (ECHO)5,400 40 6 .0093
Concord Contractor (ECHO)8,100 N/A N/A N/A
Co. of Marin Contractor (DA)8,600 12 6 .0007
Fairfax Contractor (DA)385 N/A N/A N/A
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Potential Cost
ALL RENTAL UNITS
•11,500 total units
•Net out BMR –900
•Subtotal of 10,600
•$400 DA’s Office
•Union City Ratio
$39,400
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3+ RENTAL UNITS
•7,800 total units
•Net out BMR –900
•Subtotal of 6,900
•$400 DA’s Office
•Union City Ratio
$25,700
Sub-
Committee
Recs
1. Both ordinances will apply to properties
with three or more units
2. Mediations will be triggered by a rent
increase of 10% or greater during a 12-
month period
3. The City will NOT maintain a registry
and will NOT receive eviction notices.
Could update business license.
4. There is currently no General Fund
budget for this program. However, the
Council could re-program up to $65,000 in
the Homeless Initiatives Budget.
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Insights & Recommendations
We already have a
“registry” for
properties with 3 or
more units through
our business license
process (approx. 450
unique owners)
There is limited
capacity to
implement this
program, both in
terms of staff and
funding.
The current
challenge with rent
increases is
stemming from a
small number of
owners
Insights
Policies apply
to properties
with 3 or
more units
Recs
Mediations
triggered by
10% rent
increases
No registry;
rely on
business
licenses
Initial
funding from
the Homeless
Initiatives
Budget
FAQ: Can these policies
be established as pilots?
Yes.There is no reason these policies could
not be established on a pilot basis and/or be
viewed as iterative in nature. The County of
Marin, as an example, amended their original
Mediation ordinance after a few months.
They established Just Cause as a two-year
pilot. Almost every jurisdiction requires an
annual impact report.
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Council Questions /
Public Comment
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Frequently Asked
Questions
Continued
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FAQ #1: What are the immediate impacts
of these programs?
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County of Marin
Month # Cases Eligible Outcome
Feb 2018 1 0 ---
March 2018 3 1 Agreement Reached
April 2018 1 1 NO Agreement Reached
May 2018 1 1 NO Agreement Reached
June 2018 1 1 Agreement Reached
July 2018 1 0
Aug 2018 2 1 Agreement Reached
Sept 2018 0 0
Oct 2018 1 0
Nov 2018 0 0
Dec 2018 1 1 Agreement Reached
TOTAL 12 6 (or 50%)4 Agreements Reached (or 33% of total)
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Union City
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Fremont
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Alameda
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FAQ #2: What are the long-term
impacts of these policies?
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Potential
Long-Term
Impacts
Could constrain new housing
supply
Could result in existing units
coming off the market (rental units
becoming condos)
Reduce investment in rental
housing quality
These trends could end up
accelerating displacement
What Does
the Data
Suggest?
The Cambridge study, the Stanford SF Rent Control
Study, etc. do show communities with rent control
can decrease the supply of rental units.
Rent control, rental restrictions, rental regulations –
are these actually synonyms? Mediation programs
are generally quite new –not great data yet.
A USC analysis of the Stanford study found that
policies actually slowed displacement
These insights raise a more fundamental question of
what most impacts new housing construction? Is it
rent control … or is it zoning, discretionary review,
building costs? Seems possible to address
displacement and spur growth at the same time.
FAQ #3: Do these policies –especially Just
Cause –actually accelerate displacement?
Probably Not.It’s important to remember the
vacancy rate. The vacancy rate in Marin County
is close to 3%. A healthy rate is closer to 6 or 7%.
Landlords already have their choice of tenants.
This is in part why the County and Marin
Housing Authority had to start the Landlord
Partnership Program.
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FAQ #4: What are the economic
circumstances of San Rafael’s renters?
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Household Income: Renters /
Owners
FAQ #5: Why are we pursuing these
policies?
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2018-2019 Council Goals
and Objectives: “Explore
protections to increase
rental and ownership
housing affordability.”
#1 Difficulty Becoming
Property Owners
If more of a household’s income is
directed towards increasingly expensive
rents, while at the same time the cost of
becoming an owner also continues to
rise, it becomes increasingly difficult for
renters to become owners.
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Prices for Renters / Owners
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Source: County of Marin
#2 Overpayment
Housing overpayment, as defined by the
state and federal government, refers to
spending more than 30% of income on
housing.
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Overpayment in Marin
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Source: Marin Economic Forum
#3 Jobs / Housing
Imbalance
A community’s jobs / housing
balance refers to the percentage of
workers who reside in the
community.
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87%of San Rafael’s
workforce lives
outside of the city.
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Source: San Rafael Housing Element
#4 Displacement
The process through which a
community’s original residents –
especially low-income, working class
residents –transition out of the
community because of higher prices
and an influx of new, higher-income
households
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58Source: UC Berkeley Urban Displacement Project
#5 Homelessness
Of the variety of upstream causes of
homelessness, the cost of housing is
the most significant.
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42%
26%
20%19%
13%
0%
10%
20%
30%
40%
50%
Economic Substance Use Mental Health Personal
Relationships
Physical Health
Primary Cause of Homelessness
67%65%
46%
34%33%
0%
20%
40%
60%
80%
Rental Assistance More Affordable
Housing
Money for Moving
Costs
Transportation Help Finding an
Apartment
Assistance Needed to Obtain Permanent Housing
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Council Questions /
Public Comment
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