The Rent Stabilization Program in Review. April 21, 2014

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Prosper Wilkins
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1 The Rent Stabilization Program in Review April 21, 2014

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

3 Average Rent for Post January 1, 1999 Tenancies (Q Q4 2013) Average Rent for post 1999 Tenancies $1, $1, $1, $1, $1, $1, $1, $ $

4 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 4

5 Purpose, Scope, Effectiveness Purpose: More equal rights for tenants to have stability in their homes Housing market failure and increasing inequality of wealth and income creates extreme power imbalance Scope: Rent regulation & good cause for eviction Good cause protects 26,000 tenant households Rent stability for 19,000 tenant households Old rent control assists more low-income tenants than the BHA (about 2,200 hh) Effectiveness: High LA 27% overcharged, Berkeley under 5% overcharged High customer satisfaction from surveys of owners and tenants 5

6 Berkeley Program Structure Current Staffing Configuration Elected Board Executive Director Registration & Public Information Hearings Legal Administration & Policy Temporary IT Department Total RB staff 9.95 FTE 2.65 FTE 2.75 FTE 5.25 FTE 0.33 FTE 1.00 FTE FTE 6

7 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 & Auditor Banking & payroll Purchasing : RSB follows or exceeds City standards Use same outside auditor for annual audit 7

8 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* $4.0M Notes: Increased costs above inflation since 2002 due to citywide health care and pension costs. (*) The registration fee has remained $194 since

9 Recent Challenges / Areas of Focus Eviction for Good Cause Increased use of conflict resolution & mediation Interdepartmental coordination Increased capacity to serve property owners, tenants and the public 9

10 Eviction for Good Cause Increases in Evictions and Threats of Eviction Without Good Cause Vacancy decontrol increased incentives to evict Foreclosure crisis increased evictions Rent Board has expanded outreach 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 Funds legal assistance for low-income tenants Targeted outreach to UC students and BUSD families Maintaining an ongoing community presence 10

11 Focus on Conflict Resolution Hearings and Mediations Year Petitions Mediations Examiners

12 Interdepartmental Coordination Cooperation with Planning Earthquake preparedness: Soft-story buildings Demolition and removal of units Housing code enforcement Energy efficiency in rental properties Tenancies in unpermitted units Cooperation with Health, Housing & Community Services Ensure smoking ordinance minimizes evictions Relocation (temporary relocation ordinance revised, but need provision for displacement due to fire or disaster) 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 12

13 Increased Capacity Continued increases in staff experience and education 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 13

14 Public Information & Registration Unit 14

15 General Duties of PIU and Registration Outreach to tenants and landlords Counsel landlords and tenants on rights and responsibilities under Berkeley Rent Ordinance and California law (approx. 10,000 contacts per year). Assist landlords & tenants with the petition process Facilitate mediation sessions between landlords and tenants Staff the Outreach Committee Bill and collect registration fees/penalties/waivers Process and track changes in rental status (vacancy registration, claims of exemption, etc.) 15

16 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 16

17 Purpose & Value Active Enforcement Extensive Outreach / Rent Registration Counseling Mediation Hearings Appeals 17

18 Core Outreach Apparent Lawful Rent Ceiling Notices AGA/SD Interest Notices Registration Billing Website, Guide to Rent Control, Newsletters Rent Validation Reports VALUE ADDED Informed residents and citizens Improved accuracy in recordkeeping for everyone Providing helpful resources and timely information Reduce conflict 18

Informational Postcards Landlord/Tenant Workshops

(includes magnet, guide and special file folder)

, Students leaving the Dorms, BPOA, etc.

Flea Market Counseling Tabling at Community/

19 Informational Postcards Landlord/Tenant Workshops and Seminars New Landlord/New Tenant Packet (includes magnet, guide and special file folder) Special Group Workshops Berkeley Realtors Assoc., Students leaving the Dorms, BPOA, etc. Community Counseling Library, Senior Center & Ashby Flea Market Counseling Tabling at Community/ Special Events Targeted Ads (e.g., PTA directory, student file folders, etc.) 19

20 Tenants Rights Week at Cal March 10th-14th Tenants Rights Workshop November 12th Evictions Workshop March 18th Outreach to Cal Students February & 27th 20

21 Public Information: From Outreach to Resolution Resolution (Self Enforced) This represents the majority of our cases, which constitutes about 10,000 contacts. Outreach Counseling OR Petitions or Mediations Hearing Decision or Mediation Agreement Appeal of Hearing Review of Appeal by Legal Unit Appeal goes before the Board 21

22 Registration: From Outreach to Rent Registration Litigation & Collections Registration Outreach through ALRCN, Rent Validation, and Registration Billing (1) Collection of Registration Fees Penalties Waiver filed Approval by RB Commissioners Waivers (2) Track changes in rental unit status 22

23 Hearings Unit 23

24 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 24

25 Hearings Unit: Activities (cont.) Waivers Prepare staff recommendations to Board on discretionary and ministerial waivers Staff Board Committee on Waivers 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 25

26 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 26

27 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 27

28 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 occupies premises as primary residence 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. 28

29 Hearings Unit: Petition Statistics Petition Type Calendar Year 2011 Calendar Year 2012 Calendar Year 2013 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

30 Legal Unit 30

31 Overview/Staffing Module Matt Brown Staff Attorney III Matthew Siegel Staff Attorney I Chanée Franklin Minor Staff Attorney I Palomar Sanchez (.25 FTE) Community Services Specialist I Maggie Cheng Sr. Legal Secretary 31

32 General Duties of Legal Department Represent Board in Litigation Advise Director and Rent Board Decisions on Appeal Coordinate response to public records act request Staff and Advise Committees Special Projects Supervise Field Investigator/Small Claims Court Lead Counseling duties in PIU Contract Review 32

33 Represent Board in Litigation Writs Private Actions Represent Board as Plaintiff (fraternity litigation/board Initiated hearings) 33

34 Advise Director and Board Draft regulations/resolutions/contracts Provide legal advice to Director on matters related to ordinance and its administration Brown Act/Parliamentary rules Provide counsel for HR/Personnel matters Reviews and analyzes proposed local and statewide legislation 34

35 Issue Decisions on Appeal Prepares and discusses agency s position on appeals at Board meetings 35

36 Staff and Advise Board Committees Legal Department staffs two Board Committees Eviction / Sec 8 / Foreclosure Committee IRA / AGA / Habitability Committee 36

37 Contract Review and Preparation EDC/EBCLC non-profits BFHP for pass-through Assorted vendors for day to day admin of program 37

38 Lead Counseling Provides Lead Counseling to PIU Training & Supervise Counseling Legal Analysis Problem Cases 38

39 Supervise and Oversee Rent Board Small Claims Court Lawsuits for Non-Registration Provide direct supervision of Staff filing and arguing Small Claims Court cases. Supervise and oversee annual Rent Board Small Claim Court lawsuits for non-registration 39

40 Special Projects Fires and Other Mass Displacement Fraternity/Sorority Amnesty/Registration Special Projects Mediation Coordination Training/Workshops MCLE Workshop Public Workshops (Evictions/Tenants Rights, Realtors) 40

41 Administrative and Policy Unit 41

42 Administrative and Policy Unit RESEARCH Conduct surveys and 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 and 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 request for info PERSONNEL Oversight of all personnel-related issues (hiring, training, discipline in conformance with MOU s) Contract negotiation 42

43 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 2013) 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 and other departments to develop & implement a coordinated housing policy consistent with Ordinance 43

44 Special Projects Office Renovation (Dec./Jan.) RTS Redesign & Testing Special Projects VoIP, Website / Social Media Mgmt. Tenant Survey ---- Landlord Profitability Study 44

45 And All the Rest Maggie Cheng (Deposits and Payroll) Board Staff 45

The Rent Stabilization Program in Review. May 4, 2015

The Rent Stabilization Program in Review May 4, 2015 Overview Context: A Bay Area affordability crisis Purpose, scope and effectiveness of the Rent Stabilization Program Program structure and relation