HomeMy WebLinkAboutCA Tenant Relocation Assistance Benefits PPTTenant Relocation
Benefits Policy
Cal. Health & Safety Code 17975
Section 17975 Benefits
•Sections 17975-17975.10, Cal. Health &
Safety Code
•Requires owner of rental property to pay
relocation benefits to tenant
•When tenant is displaced by order to
vacate due to immediate health and safety
reasons
Benefits not owed if
1.Tenant or tenant’s guest or invitee caused
or substantially contributed to the
uninhabitable condition
OR
2.Condition caused by a natural disaster or
event beyond the control of the owner
and the owner did not cause or contribute
to the condition
Amount of benefits
A sum equal to 2 months of the established fair market rent for the area as determined by the Department of Housing and Urban Development plusAn amount sufficient for utility service deposits as determined by the local enforcement agencyplusReturn of any security deposit
+ If late, owner is liable to tenant for 1 ½ times benefits owed
Example of Benefits
2 x 3 Bdrm FMR of $4,111 = $8,222
+
Utility service deposits =$0
+
Security deposit = $2,000
=
$10,222
This is an example only for purposes of illustration.
Advancement of Benefits
•If owner fails, neglects or refuses to pay
tenant benefits
•Local enforcement agency (City) may
advance benefits to tenant
•City may then collect payments from
owner
Collection from Owner
If City advances benefits, City may collect
from owner:
Any amount paid to tenant
plus
Penalty of ½ amount paid, NTE $10K
plus
Actual costs (direct and indirect)
City Policy
•Advancement by City is optional, on case-
by-case basis
•City Manager authorized to use City funds
to advance payments to a tenant if:
1.Tenant is in multi-family, multi-unit structure
2.Available appropriations. Capped at CM’s
authority limit ($75K); Council approval
required above that amount
City Policy
•Factors that may be considered include:–Number of tenants and units affected–Total amount of benefit payments–Owner’s good faith actions to comply–Owner’s ability to reimburse City, incl. insurance proceeds –Likelihood of recovery of payments, and penalties and costs from the owner–Administrative costs encumbered by the City–Whether tenant(s) have received or are entitled to receive other payments or benefits from the owner, Federal government, State, County or other source (e.g., see SRMC Ch. 10.111 for Qualified Opportunity Zone relocation assistance)
City Policy
•City Manager must seek reimbursement,
penalties and costs from owner
•Begins with itemized accounting of
benefits paid, penalties and costs
•May then take legal action or impose lien
on property
Owner Appeal Rights
•Appeal of order to pay relocation benefits
–CM decision is final
•Appeal of demand for reimbursement
–CM decision appealable to Council
Questions