The Rent Stabilization Program in Review. May 4, 2015

Transcription

1 The Rent Stabilization Program in Review May 4, 2015

2 Overview Context: A Bay Area affordability crisis Purpose, scope and effectiveness of the Rent Stabilization Program Program structure and relation to other City programs Administrative and budget history Recent challenges 2

3 Context: Affordability Crisis Constant 2010 dollars Income Remaining to Very Low-Income Bay Area Tenants After Paying Rent: 1960, 1980, 2010 (25th percentile income and rent for tenants in the San Francisco Bay Area) $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $ Annual Rent $5,723 $8,215 $10,992 Income after Rent $14,234 $17,721 $10,598 * * It has only gotten worse since

4 Average Rent for Post January 1, 1999 Tenancies (Q Q4 2014) Average Rent for post 1999 Tenancies $1, $1, $1, $1, $1, $1, $1, $1, $ $

5 $ Housing market failure and increasing inequality of wealth and income creates extreme power imbalance 5

6 Purpose, Scope, & Effectiveness of the Rent Stabilization Program 6

7 Purpose The Text Section PURPOSE The purposes of this chapter are to regulate residential rent increases in the city of Berkeley and to protect tenants from unwarranted rent increases and arbitrary, discriminatory, or retaliatory evictions, in order to help maintain the diversity of the Berkeley community and to ensure compliance with legal obligations relating to the rental of housing. This legislation is designed to address the City of Berkeley's housing crisis, preserve the public peace, health and safety, and advance the housing policies of the city with regard to low and fixed income persons, minorities, students, handicapped, and the aged. (Ord NS 3, 1982: Ord NS 3, 1980.) 7

8 Purpose Jay s Summary: More equal rights for tenants in good standing to have stability in their home 8

9 Scope Rent regulation and good cause for eviction Good cause protects 26,000 tenant households Rent stability for roughly 20,000 tenant households Old rent control assists more low-income tenants than the Berkeley Housing Authority (over 2,000 households) 9

10 Effectiveness High Effectiveness Comparing Berkeley with Los Angeles High customer satisfaction from surveys of owners and tenants 30% 25% 20% 15% 10% 5% 0% Los Angeles 27% Berkeley 5% Overcharged 10

11 Structure of Berkeley s Rent Stabilization Program Staffing Configuration (Adopted FY 2015) Elected Board Executive Director Registration & Public Information Hearings Legal Administration & Policy IT Department Total RB staff 9.50 FTE 2.55 FTE 2.75 FTE 4.95 FTE 1.00 FTE FTE 11

12 Budget and Staffing History Fiscal Year Staff Actual FTE Per Unit Fee Expenditures $100 $2.7M $125 $2.3M $124 $2.3M $154 $3.0M $194* $3.6M $194 $4.0M** Notes: Increased costs above inflation since 2002 due to citywide health care and pension costs. (*) The registration fee has remained $194 since (**) Projected expenditures for FY 2015 are between $4,000,000 - $4,050,000 12

13 Administration within the City Government Structure Human Resources All staff except Director are City employees All hiring conducted using City process, protocols and job classifications Co-signatory to all union contracts Follow the same salary structure as all other city departments Finance and Auditor Banking and payroll Purchasing : RSB follows or exceeds City standards Use same outside auditor for annual audit 13

14 Recent Challenges / Areas of Focus Eviction for Good Cause Increased outreach & use of conflict resolution & mediation Interdepartmental coordination Increased capacity to serve property owners, tenants and the public 14

15 Eviction for Good Cause Increases in Evictions and Threats of Eviction Without Good Cause Vacancy decontrol increased incentives to evict Foreclosure crisis increased evictions Increased harassment of all tenants in a building (e.g., change in lease and must move letters ) Funds legal assistance for low-income tenants facing eviction 15

16 Increased Outreach & Use of Conflict Resolution & Mediation Rent Board has expanded outreach to make sure all parties are familiar with the laws Contacts all new owners and new tenants Active outreach to all owners and tenants regarding their rights and obligations Notifies residents of units in foreclosure Targeted outreach to UC students and BUSD families Maintaining an ongoing community presence The Rent Board has placed an emphasis on conflict resolution. 16

17 Focus on Conflict Resolution Hearings and Mediations Year Petitions Mediations Examiners * * One Hearing Examiner position was vacant for much of

18 Interdepartmental Coordination Cooperation with Planning Earthquake preparedness: Soft-story buildings Demolition and removal of units Housing code enforcement Energy efficiency in rental properties Cooperation with Health, Housing & Community Services Ensure the smoking ordinance minimized evictions Relocation ordinance revision and counseling Cooperation with Other Departments Auditor & Finance: Increase City revenue collection Public Works: Recycling in rental properties BHA: To assist where our laws overlap & conducting BHA hearings 18

19 Increased Capacity to Serve New database software will Save staff time Make information more accessible and easier to analyze Allow on-line payment of fees and registration of new tenancies Enable improved communication through website, use of social media 19

20 Public Information & Registration Unit 20

21 Overview: Staffing Module Nick Traylor Division Manager Chanee Franklin Matthew Siegel Staff Attorneys Cynthia Martin Office Specialist II PUBLIC INFORMATION UNIT Housing Counselors Moni Law Jacqueline Morgan Palomar Sanchez Patty Thomas REGISTRATION UNIT Allison Pretto Registration Supervisor Athena Addison Office Specialist III Drew Milan Office Specialist II 21

22 The Basics of Berkeley s Rent Stabilization Berkeley s Form of Rent Stabilization HOW We Actively Enforce the Ordinance WHAT Active Enforcement Looks Like WHY An Active Enforcement Program? Proactive Education & Active Enforcement Extensive Outreach & Counseling / Rent Tracking & Registration Empowering Renters & Landlords Self-Help Mediation Hearings Informed Residents Make for a Strong & Enforceable Ordinance Tenants in a complaint based rent control city are 5 times more likely to be overcharged than in a city with active enforcement. Source: Rent Stabilization in the 21 st Century. Steve Barton,

23 Counseling In-office, offsite, phone & counseling Assistance with filing petitions Facilitate mediations 23

24 Counseling Common Issues Raised Rent overcharges Owner move-in evictions Reduction or increase in number of tenants allowed Habitability problems, security deposit disputes Interest on a security deposit Good cause for eviction (nonpayment of rent, continued violation of a lease agreement, etc) Capital improvements Decrease/increase in space or services Rent certification Ellis Act evictions Lease disputes Noise disputes Tenant/landlord rights during relocation for repairs Costa Hawkins analysis (when a landlord can go to market) Historically low rent Registration billing/waivers Breaking a lease Roommate and master tenant-subtenant disputes/rights Berkeley s eviction notice requirements Tenant/landlord rights during foreclosures Helping landlords properly register their tenancies and properties Mediation counseling Petition counseling Rent control protections for condos Benefits Key to more informed and educated tenants and landlords Avoiding, reducing, resolving conflicts Ensuring continued compliance with the Rent Ordinance 24 24

25 RENT REGISTRATION Bill & collect registration fees Process & track changes in rental status Collect penalties & process waivers Communicate changes to new tenants and owners 25

26 Rent Tracking & Rent Registration New RTS Property Finder Vacancy Registration/ Rent Validation Report Rent Ceiling Notice 26

27 From Outreach to Rent Registration Educational Materials Sent to Landlord (and Tenant) Bills & Registration Collection of Registration Fees Fees Paid by July 1? Yes Process Completed Notice of Rent Ceiling & Rent Validation Report Unit Status Correct? Yes No Landlord Updates/ Corrects Unit Status RB Adjusts Fees No Penalties Waivers Filed Litigation & Collections Process Completed Approval by RB Commissioners 27

28 OUTREACH Community outreach & counseling Core outreach: Rent Ceiling mailings, SD interest/ AGA mailing, targeted outreach, informational postcards/newsletters Staff and advise the Outreach Committee

29 Core Outreach CONTACT ALL NEW TENANTS: Rent Validation Report, Magnet and Guide to Rent Control Mass Mailings Registration Billing Outreach Website, Postcards, Newsletters CONTACT ALL NEW OWNERS: Welcome letter and landlord kit/packet VALUE ADDED Informed residents and public Improved accuracy in recordkeeping for everyone Providing helpful resources and timely information Reduce conflict 29

30 Core Targeted Outreach Informational Postcards Landlord/Tenant Workshops & Seminars New Landlord/ New Tenant Packet (includes magnet, guide and special file folder) Special Group Workshops Students leaving the Dorms, BPOA, Berkeley Realtors Assoc. Community Counseling Library, Senior Center & Cal Campus Counseling Tabling at Community/ Special Events Targeted Ads (e.g., PTA directory, student file folders, etc.) 30

31 Landlord and Tenant Packets 31

32 Seminars & Workshops 32

33 Informational Postcards & Newsletters 33

34 Outreach to College Students Collaboration with RLA Presentations at the Dorms Outreach at Berkeley City College Rent Board Interns 34

35 From Rent Registration/Outreach to Resolution Active Enforcement Rent Registration & Proactive Outreach & Education Counseling Informed Residents & Empowered Landlord or Tenant Resolution Self-Enforced (This represents the majority of our cases, which constitutes about 10,000 contacts); Mediation Agreement; OR Petitions/Hearing Decision

36 Hearings Unit 36

37 Hearings Unit: Activities Conduct hearings and write decisions Conduct settlement conferences Consult with staff on legal issues Back-up resource on interpretation of Ordinance and Regulations Assist with public information documents Primary author of Guide to Rent Control booklet and the Petition Process (on website) Review other documents, such as newsletters and mailings Develop and revise petition forms 37

38 Hearings Unit: Activities (cont.) Conduct voluntary mediations Hearing examiners are available, along with staff attorneys and counselors, to do mediation Conduct Berkeley Housing Authority Hearings Special assignments as needed Examples: New RTS project; Collaboration with assistance to other jurisdictions, like East Palo Alto 38

39 Tenant Rent Withholding RWN Tenant IRA T Landlord IRA L Appeal of Certificate C Petition Types Determine Occupancy Status D Exempt Status E Right to Set Initial Rent IRD 39

40 Petition Descriptions Tenant ( T ) IRA Petitions: Illegally high rent (incl. return of security deposit) Decrease in housing services or living space Habitability or code violations Security deposit interest Landlord ( L ) IRA Petitions: Capital improvements Increase in number of tenants allowed Increase in services or space Historically Low Rent No Vacancy Increase since 12/31/1998 (Regulation 1282) Rent Withholding ( RWN ) Petitions: Tenant claims landlord not properly registered 40

41 Petitions Descriptions (cont.) Petitions Determining Occupancy/Initial Rent: D Whether tenant occupies as a primary residence (and no subtenants). IRD Whether landlord may set new initial rent for current tenant or subtenant because original occupant(s) no longer permanently resides in the unit. Petitions Appealing Certificate ( C ): Either party may challenge staff s administrative issuance of a Certificate of Permissible Rent Ceilings. Petition Appealing Non-Exempt Status ( E ): Landlord challenges staff s administrative determination that a unit is not exempt from the Ordinance. 41

42 Hearings Unit: Petition Statistics Petition Type Calendar Year 2011 Calendar Year 2012 Calendar Year 2013 Calendar Year 2014 Tenant IRA Landlord IRA Tenant Rent Withholding Determine Occupancy Status Right to Set Initial Rent Appeal of Certificate Exempt Status Totals IRA petition figures vary from those in Table 3 of Rent Stabilization in the 21 st Century due to a difference in the reporting period. Steve s Table 3 figures use, for , a reporting year of December 1 November

43 Legal Unit 43

44 Overview/Staffing Module Matt Brown Staff Attorney III Matthew Siegel Staff Attorney I Chanée Franklin Minor Staff Attorney I Palomar Sanchez Community Service Specialist I (.25 FTE) Maggie Cheng Senior Legal Secretary 44

45 General Duties of Legal Department Represent Board in Litigation Advise Director, Staff and Elected Rent Board Decisions on Appeal Coordinate Response to Public Records Act Requests Staff and Advise Committees Contract Review Supervise Field Investigator/ Small Claims Court Lead Counseling Duties in PIU Special Projects 45

46 Represent Board in Litigation Writs Intervention Represent Board as Plaintiff 46

47 Advises Director and Board Draft Regulations, Resolutions, and Contracts Provide Legal Advice to Director on Matters Related to the Ordinance and Its Administration Brown Act / Parliamentary Rules Provide Counsel on HR / Personnel Matters Review and Analyze Local and Statewide Legislation 47

48 Decisions on Appeal Prepare Agency Opinion for Appeals to the Board Provide Counsel / Advice to Board When Hearing Appeals 48

49 Staff and Advise Four Board Committees Eviction / Section 8 / Foreclosure Committee Habitability Committee Ad Hoc Committee on Short-Term Rentals Committee IRA / AGA / Registration Committee 49

50 Contract Review and Preparation Eviction Defense Center / East Bay Community Law Center Non-Profits BFHP / Registration Fee Pass-Through Assorted Vendors for Day-to-Day Administration of Program Leases and Contracts 50

51 Provides Lead Counseling to PIU Trains & Supervises Counselors Legal Analysis Problem Cases 51

52 Small Claims Court Litigation Supervise and Oversee Annual Rent Board Small Claim Court Lawsuits for Non-Registration Provide Direct Supervision of Rent Board Small Claims Court Representative Fiscal Year Number of Cases 2010/ / / /

53 Special Projects Fires and Other Mass Displacement/ Relocation Ordinance Coordination Fraternity/ Sorority Amnesty/ Registration Mediation Coordination Training / Workshops MCLE Workshop Public Workshops (Evictions, Tenants Rights, Realtors) 53

54 Administrative and Policy Unit 54

55 Administrative and Policy Unit BOARD AND COMMITTEE SUPPORT Coordination and assurance of compliance with Brown Act for all Rent Board and Committee meetings Coordination to ensure public access/transparency Coordination of agendas, minutes and documents for all Rent Board and Committee meetings (over 60 in 2014) Tracking and publication of Commissioner attendance for all Board and Committee meetings OFFICE ADMINISTRATION Payroll; Purchasing, Finance & Accounting Liaison for vendors and other City Departments Administrative workflow BUDGET/CONTRACTS Preparation, execution, monitoring & reporting COUNCIL/INTERDEPARTMENTAL POLICY FORMULATION Working with City Council & other departments to develop & implement a coordinated housing policy consistent with Ordinance 55

56 Administrative and Policy Unit RESEARCH Conduct surveys & studies to help guide administrative improvements and the formulation of sound public policy Research and inspect individual properties to assist in enforcement of the Ordinance LEGISLATION Monitoring & liaising with Legislative Advocate & other Rent Control jurisdictions OVERSEE/ ASSIST IN OUTSIDE REVIEW OF THE AGENCY Annual outside audit of Rent program fund Public Records Act & Non-Public Records Act requests for information PERSONNEL Oversight of all personnel-related issues (hiring, training, discipline in conformance with MOU s) Contract negotiation WEB Maintain and update Rent Board website and Facebook page 56

57 Ongoing improvements to building / office space RTS Redesign & Testing Improvements to / redesign of Rent Board website Special Projects Board & workspace Coordination of computer & other technology upgrades / initiatives Paperless Agenda 57