HomeMy WebLinkAboutCD Opportunity Zone Renter Relocation Assistance ReportORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL ADDING
CHAPTER 10.110 TO THE SAN RAFAEL MUNICIPAL CODE, ENTITLED
“RELOCATION ASSISTANCE IN OPPORTUNITY ZONES”
Section 1. Findings.
WHEREAS, the Marin Housing Authority estimates there is a shortage of 9,465
affordable rental homes to accommodate low-income renters in Marin County;
WHEREAS, the Marin Housing Authority estimates that rents in Marin County have
been steadily increasing since 2009;
WHEREAS, increasing rents combined with a housing shortage places substantial
pressure on residents of the City of San Rafael who rent housing;
WHEREAS, there are 23,929 i residential units in San Rafael. Of those,
approximately forty-eight percent (48%) are owner occupied and 48 (50) % are renter
occupied.
WHEREAS, a portion of San Rafael is located in U.S. Census Tract 1122.01,
which is the sole U.S. Census Tract designated a “Qualified Opportunity Zone” by the
2017 Tax Cuts and Jobs Act (the “Act”), within Marin County;
WHEREAS, in San Rafael’s Qualified Opportunity Zone, there are approximately
1,813 ii residential units. Of those, eight percent (8%) are owner occupied and ninety-two
percent (92%) are tenant occupied;
WHEREAS, the estimated median gross monthly income of residents living in
Census Tract 1121.01 is $3,533iii;
WHEREAS, Qualified Opportunity Zones are designed to spur economic
development in distressed communities throughout the country and U.S. possessions by
providing tax benefits to investors who invest eligible capital into opportunity zones;
WHEREAS, in order for taxpayers to defer tax on eligible capital gains under the
Act, taxpayers must own and substantially improve property in a Qualified Opportunity
Zone;
WHEREAS, sale of residential properties in San Rafael’s Qualified Opportunity
Zone and substantial improvements to said properties are likely to result in displacement
of residential tenants in the Canal neighborhood due to no fault terminations;
WHEREAS, the residents living in San Rafael’s Qualified Opportunity Zone
therefore face a high risk of displacement which displacement could have severe health,
safety and economic impacts on these residents;
WHEREAS, tenants who do not have adequate funds to move and who are forced
to move pursuant to no-fault eviction notice face displacement and great hardship;
WHEREAS, tenants who find acceptable new housing commonly find themselves
required to pay substantial costs related to new housing including, but not limited to,
move-in costs to a new home, moving costs, new utility hook-ups, payments for temporary
housing, lost work time seeking housing, and increased rent;
WHEREAS, tenants who find acceptable new housing commonly find themselves
required to pay substantial move-in costs of first and last month’s rent plus a security
deposit equal to one month’s rent; and
WHEREAS, tenants evicted in San Rafael are forced to incur substantial costs
related to new housing including, but not limited to, move-in costs to a new home, moving
costs, new utility hook-ups, payments for temporary housing, and lost work time seeking
housing;
WHEREAS, mothers who are evicted experience higher levels of material hardship
and parenting stress and are more likely to suffer from depression and to report their
health and that of their children as being poor and the impacts of eviction can endure for
years with research showing in some families at least two years after their eviction
mothers experienced significantly higher rates of material hardship and depression than
their peers iv;
WHEREAS, evictions of long-term residents can lead to significant decreases
credit scores for individuals ages 65 years or older compared than their counterparts who
are able to stay, with an average credit score 14.6 points lowerv;
WHEREAS, by 2035, the number of older households with a disability nationwide
will increase by 76 percent to reach 31.2 million, placing tremendous pressure on the
supply of ADA-compliant rental housing, making it increasingly difficult for renters with
disabilities to find suitable housing after a no-fault evictionvi;
WHEREAS, numerous California jurisdictions have recognized the impacts of
these no-fault evictions are particularly significant on elderly, disabled, and low-income
tenants and tenants with minor children, justifying additional payments for households
with these tenants;
WHEREAS, this action is exempt from the California Environmental Quality Act
("CEQA") pursuant to, but not limited to, the following CEQA Guidelines: §15378
(regulatory actions), § 15061 (b)(3) (no significant environmental impact), and § 15183
(consistent with the general plan and zoning);
WHEREAS, Ordinance No. _____ is expressly authorized by State law because
the Ordinance is more protective than the provisions of section 1946.2 of the California
Civil Code, which was adopted pursuant to the Tenant Protection Act of 2019, because
this ordinance provides tenant protections that are neither prohibited by nor established
by other provisions of applicable law;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
DOES ORDAIN AS FOLLOWS:
Section 2: Addition of Chapter 10.110 to the San Rafael Municipal Code.
Title 10 of the San Rafael Municipal Code, entitled “Businesses, Professions,
Occupations, Industries and Trades” is hereby amended by adding a new Chapter,
10.110 entitled “Relocation Assistance in Opportunity Zones” to read in its entirety as
follows:
10.110.010 Purpose and Intent
It is the purpose and intent of this chapter to help mitigate the adverse health, safety and
economic impacts experienced by residents of rental housing who are displaced from
their residences due to no fault terminations of their tenancies. This chapter requires a
property owner to mitigate the impact on these residents by providing relocation
assistance benefits to residents located within U.S. Census Tract 1122.01, which has
been designated a “Qualified Opportunity Zone” by the 2017 Tax Cuts and Jobs Act.
10.110.020. Definitions
For purposes of this chapter, unless the context clearly requires a different meaning, the
words, terms, and phrases set forth in this section and set forth in section 10.105.030 of
the SRMC shall have the meanings given to them:
A. “Disabled” means a person with a disability, as defined in Section 12955.3 of
the Government Code.
B. “Elderly” means a person sixty-two (62) years or older.
C. “Lease” means any contract between a tenant household and a landlord or
property owner for a specified time, in return for a periodic payment.
D. “Minor child(ren)” means a person(s) who is eighteen (18) years or younger at
the time the Notice of Relocation Assistance is provided to the tenant
household.
E. “Tenancy” means the use or occupancy of a dwelling unit by a tenant.
10.110.030 Eligibility for Relocation Assistance
A. Tenant households who have continually occupied a dwelling unit for a period of
thirty (30) days or more are eligible for relocation assistance pursuant to this chapter.
B. Only those tenant households who occupy a dwelling unit located within the
shaded areas shown on Map 10.110.030 shall be eligible for relocation assistance
pursuant to this chapter.
Map 10.110.030
C. Any property not described in subsection (A) of section 10.110.030 of this Chapter
and and/or any property not otherwise subject to this Chapter, shall be subject to all
applicable local and State requirements regarding relocation assistance including but not
limited to those requirements set forth in Civil Code section 1946.2 and section 14.16.279
of the SRMC, as those sections may be amended.
D. A tenant household shall not be eligible to receive relocation assistance pursuant
to this Chapter if the tenant household is subject to a “for cause termination” pursuant to
subsection (B) of section 10.105.040 of this Code.
E. A tenant household that is eligible to receive relocation assistance pursuant to this
Chapter shall not be eligible to receive relocation assistance pursuant to the provisions
of section 14.16.279 of this Code.
10.110.040 Requirement to Provide Relocation Assistance
If the termination of a tenancy subject to this Chapter qualifies as a “no fault termination”
pursuant to subsection (C) of section 10.105.040 of this Code, the landlord of the dwelling
unit subject to the no fault termination shall, regardless of the tenant household’s income,
provide relocation assistance in accordance with the provisions of this Chapter.
10.110.050 Relocation Assistance Procedures
Relocation assistance shall be subject to the following procedures:
A. Calculation of Relocation Assistance
A tenant household that is eligible to receive relocation assistance pursuant to this
Chapter shall be entitled to a relocation payment equal to the sum of the following:
(1) First and Last Months’ Rent. Payment for first and last month’s rent shall
be equal to two times the greater of (1) the rent established by a lease between the
landlord and the tenant household, or (2) the current Fair Market Rent published annually
by the U.S. Department of Housing and Urban Development for the San Francisco, CA
HUD Metro FMR Area, corresponding to the number of bedrooms in the subject dwelling
unit; and
(2) Security Deposit. Payment for a security deposit shall be established by
City Council Resolution and based upon the number of bedrooms in the property; and
(3) Moving Expenses. Payment for moving expenses shall be established by
City Council Resolution and based on the number of bedrooms in the property; and
(4) Per Diem. A per diem payment for each day remaining in the calendar
month in which the tenancy is terminated. The per diem amount shall be established by
City Council Resolution, compensate for costs such as short term rental
accommodations, meals, and other related costs, and based upon tenant household size.
(5) Supplemental Payments. Tenant households that qualify for the categories
set forth in this subsection shall receive one supplemental payment in an amount
established by City Council Resolution per each applicable category. Supplemental
payments shall be the greater of (1) the rent established by a lease between the landlord
and the tenant household, or (2) the current Fair Market Rent published annually by the
U.S. Department of Housing and Urban Development for the San Francisco, CA HUD
Metro FMR Area, corresponding to the number of bedrooms in the subject dwelling unit.
a. Tenant households with Minor Child(ren). Households with at least
one minor child(ren).
b. Tenant households with Elderly Individual. Households with at least
one elderly individual.
c. Tenant households with Disabled Individual. Households with at least one disabled
individual.
B. Notice of Relocation Assistance
(1) Not less than sixty (60) days before a tenancy is terminated pursuant to
subsection (C) of section 10.105.040, the landlord shall provide a Notice of Relocation
Assistance to the tenant household whose tenancy will be terminated.
(2) The Notice of Relocation Assistance may be provided along with or
incorporated within the Notice of Termination required pursuant to section 10.105.050.
(3) The Notice of Relocation Assistance shall be in the same language as the
rental agreement was negotiated.
(4) The Notice of Relocation Assistance shall contain the following:
a. the amount of the relocation assistance payment itemized in the
manner set forth in subsection (A) of section 10.110.050 regarding calculation of
relocation assistance;
b. the date by which the relocation assistance payment will be delivered
to the tenant household; and
c. a copy of San Rafael Municipal Code Chapter 10.110.
D. Certification of Relocation Assistance and Administrative Fee
Within ten (10) days of issuance of a Notice of Relocation Assistance pursuant to
subsection (B) of section 10.110.050 of this Chapter, the landlord shall submit to the City’s
Community Development Department, a completed Certification of Relocation Assistance
on a form acceptable to the City along with an administrative fee in an amount set forth
by separate resolution of the City Council, which fee shall offset the costs in administering
this Chapter.
The Certification of Relocation Assistance shall include the following information:
(1) The address of each dwelling unit in the rental property that is subject to the
no-fault termination;
(2) The monthly rent for each of those dwelling units; and
(3) The name of every person the landlord considers to be a resident under an
oral lease, written lease, or other rental agreement.
E. Payment of Relocation Assistance
(1) Not less than thirty (30) days before the final date of the terminated tenancy,
the landlord shall deliver, via certified mail or personal service, to the address of the
terminated tenancy, the relocation assistance required by this Chapter.
(2) Relocation assistance shall be paid per tenant household, not per tenant.
(3) Relocation assistance shall be paid via check or cashier’s check made out
to the person(s) who are named on the lease for the terminated tenancy.
F. Verification of Payment of Relocation Assistance.
Before issuance of demolition permits, building permits or other City permits and/or
entitlements that would result in No Fault Termination subject to Chapter 10.105 of the
SRMC, the City must receive verification from the landlord of the property seeking said
permits and/or entitlements that all relocation assistance required pursuant to this
Chapter has been paid. This verification shall be submitted in a form acceptable to the
Community Development Department.
10.110.060 Notices.
Whenever any notice or other communication is required by this Chapter to be served on,
provided, given or delivered to, or filed with, any person, that notice or communication
may be communicated by personal delivery, certified mail, first class mail, e-mail, or any
other similar method that will provide a written record of the notice or communication.
10.110.070 Administrative Regulations
The City Manager may, from time to time, promulgate regulations implementing the
provisions of this Chapter, violations of which shall be considered a violation of this
Chapter.
10.110.080 Failure to Comply – Private Right of Action.
Any attempt to recover possession of a rental unit in violation of this Chapter shall render
a landlord liable to the tenant for damages permitted by law in a civil action for wrongful
eviction. A tenant may also seek injunctive relief and money damages for wrongful
eviction and/or failure to pay relocation assistance. The prevailing party in an action for
wrongful eviction shall recover costs and reasonable attorneys’ fees.
Section 3. Severability. If any section, subsection, phrase or clause of this ordinance
is for any reason held to be unconstitutional, such decision shall not affect the validity of
the remaining portions of this ordinance. The City Council hereby declares that it would
have passed this and each section, subsection, phrase or clause thereof irrespective of
the fact that any one or more sections, subsections, phrase or clauses be declared
unconstitutional on their face or as applied.
Section 4. Compliance with CEQA. The City Council hereby finds that the action to
adopt this Ordinance is exempt from the provisions of the California Environmental
Quality Act (CEQA), pursuant to Section 15061(b)(3) of the CEQA Guidelines, because
it can be seen with certainty that there is no possibility the adoption of this Ordinance may
have a significant effect on the environment and pursuant to CEQA Guidelines section
15060, subd. (c)(2), because the ordinance will not result in a direct or reasonably
foreseeable indirect physical change in the environment.
Section 5. Publication; Effective Date. A summary of this Ordinance shall be
published and a certified copy of the full text of this Ordinance shall be posted in the office
of the City Clerk at least five (5) days prior to the Council meeting at which it is adopted.
This Ordinance shall be in full force and effect thirty (30) days after its final passage, and
the summary of this Ordinance shall be published within fifteen (15) days after the
adoption, together with the names of the Councilmembers voting for or against same, in
the Marin Independent Journal, a newspaper of general circulation published and
circulated in the City of San Rafael, County of Marin, State of California.
Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the
City Clerk, a certified copy of the full text of this Ordinance along with the names of those
Councilmembers voting for and against the Ordinance.
________________________________
Mayor
ATTEST:
___________________________
LINDSAY LARA, City Clerk
The foregoing Ordinance No. _____ was read and introduced at a regular meeting of the
City Council of the City of San Rafael on ________, the ____ day of ____________ 2020,
and was ordered passed to print by the following vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
and will come up for adoption as an Ordinance of the City of San Rafael at a Regular
Meeting of the Council to be held on the ___ day of ______________, 2020.
________________________________
LINDSAY LARA, City Clerk
i Total Housing Units (+/-235 Margin of Error)(Occupied - +/-542 Margin of Error)
ii Total Housing Units (+/-117 Margin of Error)
iii ACS 2018 5-year
iv Desmond, Matthew & Kimbro, Rachel. (2015). Eviction's Fallout: Housing, Hardship, and Health. Social Forces.
94. 10.1093/sf/sov044.
v Ding, L., & Hwang, J. (2016). The Consequences of Gentrification: A Focus on Residents' Financial Health in
Philadelphia. Cityscape, 18(3), 27-56.
vi Joint Center for Housing Studies of Harvard University. (2016). Projections and Implications for Housing a
Growing Population: Older Households 2015-2035. https://www.jchs.harvard.edu//research-
areas/reports/projections-and-implications-housing-growing-population-older-households-2015