The City Council will consider amendments to the City' s Rent Stabilization Ordinance and the Rent Stabilization Regulations.

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1 CITY COUNCIL MAY 19, 2014 LEGISLATIVE SUBJECT: AMENDMENTS TO THE CITY' S RENT STABILIZATION ORDINANCE AND REGULATIONS INITIATED BY: DEPARTMENT OF HUMAN SERVICES AND RENT STABILIZATION Elizabeth Savage, Director)' Peter Noonan, Rent Stabilization and Housing Manager). Gloria Aviles, Information Coordinator) PN CITY MANAGER' S DEPARTMENT Christof Schroeder, Legal Services Manager)[ Alison Regan, Staff Attorney) Jonathan Holub, Staff Attorney) STATEMENT ON THE SUBJECT: The City Council will consider amendments to the City' s Rent Stabilization Ordinance and the Rent Stabilization Regulations. RECOMMENDATIONS: 1) Introduce on first reading Ordinance No. 14- " AN ORDINANCE OF THE CITY OF WEST HOLLYWOOD AMENDING TITLE 17 OF THE WEST HOLLYWOOD MUNICIPAL CODE. 2) Adopt Resolution No " A RESOLUTION OF THE CITY OF WEST HOLLYWOOD AMENDING THE RENT STABILIZATION REGULATIONS" BACKGROUND ANALYSIS: Modifications to the Rent Stabilization Ordinance ( RSO) and Regulations are proposed only on rare occasions, particularly because constant changes would affect the integrity of the City' s Program. Historically, legal counsel and staff have consistently applied a conservative approach to determining which sections of the RSO or Regulations could merit change. Over the course of the last year, through a collaborative effort, the Rent Stabilization & Housing Division and the Legal Services Division staff have performed a comprehensive review of various sections of the Rent Stabilization Ordinance and Regulations ( REGS) and have identified several areas in both documents that staff would recommend be amended. A preliminary list of sections was initially compiled as a result of recent hearing and court case decisions. The preliminary list was expanded to include additional items identified by AGENDA ITEM 6 Ạ..

2 City Council Meeting May 19, 2014 Rent Stabilization Amendments Page 2 of 6 staff through a proactive review. The primary goal was to strengthen areas of the RSO in which the current language was ambiguous. Items staff identified included outdated language, which did not include the most current references or in specific cases, did not mirror state law. Staff also gathered information from comments provided by tenants and landlords regarding the information in the RSO and Regulations, and explored ways of addressing comments without compromising the effectiveness of the RSO and its administrative processes. On July 11, 2013, proposed changes were presented to the Rent Stabilization Commission. During this meeting, the Commission reviewed the proposed changes and provided input. On September 26, 2013, the Rent Stabilization Commission reviewed the revised changes. Amendments proposed to the City' s Rent Stabilization Ordinance and Regulations serve three purposes: 1) to ensure consistency with state law; 2) improve the ordinance' s organization and clarity; and 3) expand the City's civil remedies in enforcement actions. A draft ordinance amending the City' s Rent Stabilization Ordinance is provided as Attachment 1, and a draft resolution amending the City' s Rent Stabilization Regulations is provided as Attachment 2. The majority of amendments to the Rent Stabilization Ordinance and Regulations are minor revisions proposed to improve organization and consistency with state law. Most proposed amendments are not substantive in nature and are focused on providing greater clarity regarding RSO requirements; however three substantive changes are proposed. A summary of the substantive changes is provided below: A new exemption category for units withdrawn from the rental market. RSO Section Exempt Property Ellised Units Currently, multi- unit properties removed from the rental market through the Ellis Act are exempt from the Rent Stabilization' s annual registration fees. Staff has been completing these exemptions without an explicit exemption category in the RSO. This practice has led to inconsistencies, such as the date the exemption becomes effective and how that date affects the billing of registration fees. This is particularly problematic on properties that are " Ellised" with both vacant units and units that are occupied by tenants that are either senior or disabled, who have elected to exercise their right to a year extension. In some cases, this has led to inconsistent billing among units on the same property. This type of tiered billing system, is incompatible with the way other exemptions are granted and billed under the RSO. Because of the unique characteristics of the Ellis provisions in the RSO, it' s imperative that an exemption category be added that applies specifically to properties that have been withdrawn from the rental market. The RSO clearly indicates that an exemption application must be submitted by July 1st considered. Exemption applications submitted after the July 1st in order to be deadline would NOT

3 City Council Meeting May 19, 2014 Rent Stabilization Amendments Page 3 of 6 be considered exempt until the next billing period. This item would allow for an offcycle Ellis billing transaction to occur. In addition, to be consistent with the Ellis provision of the RSO, an exemption status would not be granted on Ellised properties until all units on the property are vacant. A temporary exemption from registration fees for units deemed uninhabitable. RSO Section Exempt Property Units Tagged by Authorized Agency Landlords of properties with two or more dwellings where a unit has been red or yellow tagged by the Building & Safety Division as a result of a structural or fire damage ( not caused by the landlord) cannot apply fora temporary exemption of the annual registration fees while the unit is vacant and undergoing required repairs. Staff recommends that an exemption category be added to the RSO allowing property owners to apply for a temporary exemption. When a unit is red or yellow tagged, the situation is of a greater severity. The landlord undergoes the complexities of obtaining proper approvals and permits to conduct the repairs. This exemption would be granted only to units that have structural or fire damage not caused by the landlord. The landlord will be required to provide documentation from the issuing agency of the red or yellow tag declaring the unit not habitable. The exemption would be effective for a maximum of one year. Landlords are not able to rent the damaged unit and this recommendation provides them with at least some courtesy adjustment with the 12- month period. The City would not need to administrate this beyond the credit. An increase to the civil penalty amount for RSO violations, and a civil remedy that allows the City to bring a cause of action for damages for RSO violations. RSO Section Remedies This section of the RSO sets out the remedies available for RSO violations. Currently, this section does not allow the City to obtain damages for a violation. The absence of a damages provision hinders the City' s ability to punish past behavior where injunctive relief would be ineffective. New amended language would allow the City to enforce the RSO by other rent controlled jurisdictions, this is a prudent tool in use elsewhere. means of a civil action. In a review of best practices of The remaining changes proposed are not substantive and can be summarized as follows: RSO Section ( 2)( f) Vacancy Rent Adjustments after January 1, 1999 State law allows municipalities to limit the initial rent that a landlord can charge a tenant if the previous tenancy was terminated upon the non- renewal or termination of a Section 8 contract. The City has implemented these provisions but the current language does not match exactly the state law. This change ensures consistency between state and local law.

4 City Council Meeting May 19, 2014 Rent Stabilization Amendments Page 4 of 6 A minor correction is also necessary in subparagraph ( ii) of, subsection ( f) to accurately reflect state law. The_ current version of subparagraph ( ii) references subparagraph ( i), when it should in fact reference subsection ( f). RSO Section ( 2) - Recodification of provisions relating to termination of tenancy for violation of obligation of tenancy, including a new section regarding limits on unilateral changes by a landlord to terms of a tenancy. The final paragraphs in subsection ( 2), which govern the termination of tenancies for violation of a covenant or obligation of the tenancy, are not properly codified. The paragraph beginning with "A landlord may not rely on the violation of a covenant or obligation..." is a stand- alone item with no direct relationship to the immediately preceding subsection 2( g), although it does relate to the limitations of subsection (2). That paragraph should, therefore, be re- eviction as set forth by codified as its own subsection, "( 2)( h)." The remaining paragraphs in subsection ( 2), except for the last paragraph, relate to limits on a landlord' s ability to unilaterally change the terms and conditions of a tenancy. These paragraphs are more appropriately codified as a new subsection in Chapter RSO Section ( 15)( d)( 2) Change from " this chapter" to " this title" to be consistent with the RSO' s codification. Currently, this section of the RSO states "this chapter" when it should state " this title" to be consistent with the RSO' s codification. RSO Section ( 15)( b)( 3)( iii) Withdrawal of Residential Rental Structure from the Rental Market. The language in the RSO requires that within 30 days of receipt of notice to terminate the tenancy, the tenant may notify the landlord in writing of their interest to re- rent the unit if the property is re- offered for rent at a future time. However, the RSO does not instruct the tenant that a copy of this request must also be submitted to the City to assure that the tenant in fact was given the opportunity to invoke their right of first refusal. The proposed amendment requires that the tenant submit a copy to the City of the letter notifying the landlord of the tenant's interest in re- renting the unit should the property be placed back on the rental market at a later date. Language has also been included stating that failure to submit a copy of the request to the City shall not affect the tenant' s right of first refusal if the landlord was properly notified. RSO Section ( 1) Nonpayment of Rent Some landlords are using side agreements to charge their tenants additional fees above the initial rent amount for items such as parking spaces, storage units, pet rent, etc. Sometimes three-day notices for failure to pay the amounts agreed upon in the side agreements have been issued to tenants as non- payment of rent. The

5 City Council Meeting May 19, 2014 Rent Stabilization Amendments Page 5 of 6 RSO language changes will explicitly prohibit non- compliance with side agreements to be a cause for eviction. Regulations Section 60013( A) Conduct of Hearing This section of the Regulations conveys the way a hearing an outdated provision regarding the recording is conducted. It includes of hearings on audiotape. A language update is needed sto clarify that hearing proceedings may be recorded by any electronic recording device. Regulations Section 20001( b)( 1), ( b)( 2) & ( b)( 3) Change in Ownership Currently, the Regulations place certain obligations on a seller pending sale of a property subject to the RSO. The Division is primarily concerned with monitoring transfers of property, in order to ascertain responsible parties. Obtaining additional information is the obligation of both the seller and the buyer during the negotiation and due diligence period of the transaction. The current Regulation requires compilation of information not necessarily available to staff, particularly with respect to units' maximum allowable rents, which are more readily available to the seller subsequent to the enactment of vacancy decontrol. Although the responsibility for compilation of necessary documentation pending a real estate transaction rests with the transacting parties, staff continues to assist on an as- requested basis pursuant to disclosure requirements. Additionally, new property owners are required to file a " Property Information Update" form within thirty ( 30) days of such change. Some ownership changes are not reported to the Department within the 30-day noticing period. Most of the changes are discovered after staff completes a quarterly report of new ownerships for multi-family dwellings within the City limits. Non- compliance to this requirement may incur a $ 25 delinquent registration filing fee. Language in this section of REGS amends the notification period from 30 to 60 days after the City has provided notice to the landlord. However, if after the landlord receives the notice from the City and they continue to be non- compliant, a $ 25 delinquent registration fee will be assessed. Regulations Section 20001( c)( 2) & 41001( a) Monitoring of Rent Adjustments Section 20001( c)( 2) of the REGS requires that a unit be re- registered within 15 days of re- rental. This is inconsistent with Section ( b) of the RSO, which permits up to 30 days to re- register a new tenancy. REGS Section repeats this inconsistency. The proposed language will bring the REGS into conformance with the RSO requirement.

6 City Council Meeting May 19, 2014 Rent Stabilization Amendments Page 6 of 6 CONFORMANCE WITH VISION 2020 AND THE GOALS OF THE WEST HOLLYWOOD GENERAL PLAN: This item is consistent with the Primary Strategic Goal of Affordable Housing and Ongoing Strategic Program of Institutional Integrity. Additionally, this item is consistent with the City' s General Plan Housing Element Goal H- 1: " Provide affordable rental housing", which is focused on protecting existing supplies of affordable rental housing, and Housing Program 6. " Rent Stabilization Ordinance" which calls for the continued maintenance of the City's Rent Stabilization Program. ENVIRONMENTAL SUSTAINABILITY AND HEALTH: N/A EVALUTION: This item continues the City's ongoing evaluation and upkeep of the Ordinance and Regulations in an effort to ensure fair administration of Rent Stabilization in the city. OFFICE OF PRIMARY RESPONSIBILITY: Department of Human Services and Rent Stabilization FISCAL IMPACT: None ATTACHMENTS: 1. Draft Ordinance Draft Resolution 14 -

7 Attachment 1 Ordinance

8 ORDINANCE NO. 14- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD AMENDING TITLE 17 OF THE WEST HOLLYWOOD MUNICIPAL CODE. THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: Subparagraph ( 2)( f) of Municipal Code Section , Vacancy Rent Adjustments After January 1, 1999, Title 17, Chapter 17.40, is amended as follows: f) The previous tenancy has been terminated upon the landlord' s termination or failure to renew a contract or recorded agreement with a government agency that provides for a rent limitation to a qualified tenant. In the event that a landlord terminates or fails to renew such contract or recorded agreement, the landlord shall not be eligible to set an initial rent for three years following the date of the termination or nonrenewal of the contract agreement. For any new tenancy established during the three-year period, the rental rate for a new tenancy established in the vacated dwelling unit shall be at the same rate as the rent under the terminated or non- renewed contract or recorded agreement with a governmental agency that provided for a rent limitation to a qualified tenant, plus any increases authorized under this title after the termination or cancellation of the contract or recorded agreement. i) In the event that a landlord cancels or opts not to renew a contract or recorded agreement as described in this subsection, the landlord must provide the affected tenant at least ninety days' written notice. For ninety days after the date on which the landlord' s notice to the tenant is effective, the tenant may not be charged more than the tenant's share of rent as calculated in the contract or recorded agreement with the governmental agency. Notice under this subparagraph is effective when it is served personally on the, tenant, or on the date that the notice is sent to the tenant via first class mail, postage prepaid. ii) Subsection ( f) does not apply to any new tenancy of twelve months' or more duration established after January 1, 2000, pursuant to the owner's contract or recorded agreement with a governmental agency, that provides for a rent limitation to a qualified tenant, unless the prior vacancy was pursuant to a non- renewed or canceled contract or recorded agreement with a governmental agency that provides for a rent limitation to a qualified tenant as set forth in that subparagraph. Page 1 of 6

9 SECTION 2: Subparagraph ( 2)( g) of Municipal Code Section , Permissible Reasons For Permanently or. Temporarily Terminating Or Refusing To Renew Tenancy, Title 17, Chapter , is amended as follows: g) Possession of two or fewer pets, if: 1) The tenant who is the guardian of the pet(s) is more than sixty- two years of age, or is disabled, or is living with HIV/AIDS; 2) The pet or pets are domesticated dogs, cats or birds weighing not more than thirty-five pounds; 3) The pet or pets do not interfere with the quiet enjoyment of the premises by other persons or otherwise constitute a nuisance or a threat to the health, safety or welfare of other, persons residing in or having lawful access to the premises; unit; and 4) The tenant does not reside in a condominium 5) The tenant deposits with the landlord, upon demand therefor, an increase in the security deposit of not more than twenty-five percent of the existing security deposit, but in no event to exceed the maximum allowed by the California Civil Code. But a landlord may not charge an additional security deposit for an emotional support animal that the tenant's treating physician or a psychiatrist has prescribed as medically necessary to help the tenant cope with his or her disability. - Nothing in this section is intended to contradict any provision of state or federal law which also prohibits landlords from charging a security deposit for service animals such as seeing- eye dogs or signal dogs. SECTION 3: Subparagraph ( 2)( h) of Municipal Code Section , Permissible Reasons For Permanently Or Temporarily Terminating Or Refusing To Renew Tenancy, Title 17, Chapter , is added as follows: h) The violation of a covenant or obligation of a tenancy if the landlord has not provided the tenant with a written statement of the respective covenants and obligations of both the landlord and tenant prior to such alleged violations. Furthermore, such statement must have set forth the particular covenant or obligation subsequently alleged to have been violated. A landlord may not unilaterally change the terms of tenancy and then evict the tenant for violation of the added covenant unless the tenant has agreed in writing to the additional covenant. Page2of6

10 i) Notwithstanding any other provision of this section, a landlord may evict a tenant if he or she does not comply with either of the following: ( a) a change in tenancy required by a government agency charged with responsibility for ensuring public health, welfare, and safety in residential buildings; ( b) a change in tenancy relating to health or safety conditions at the premises that is required by an insurance company as a condition of providing coverage; or ( c) a change in tenancy required to comply with federal, state or local law. ii) Any notice of change of terms or conditions to a tenant based either upon a warning by a government agency or based upon a letter from an insurance company threatening withdrawal or nonrenewal of insurance is void unless there is attached thereto: 1) The warning or notice from the government agency, if the notice is based upon a warning or order issued by a government agency; or 2) The insurance company communication, which must be in writing and must be based upon written insurance company policy which must be cited in the letter, if the notice is based upon a threat of withdrawal or nonrenewal of insurance. SECTION 4: Municipal Code Section , Limitations on Changes of Terms and Conditions of Tenancy, Title 17, Chapter , is added as follows: Limitations on Changes of Terms and Conditions of Tenancy. After the inception of the tenancy, a notice of change of terms and conditions of tenancy, except for notices of an increase in the amount of rent which is legally due and payable, must be expressly agreed to by the tenant. Such agreement must be in writing, signed by both parties, and the tenant must have knowingly consented to any change to the original lease or month- to- month agreement. A landlord may not unilaterally change the terms of tenancy and then evict the tenant for violation of the added covenant unless the tenant has agreed in writing to the additional covenant. The provisions of this paragraph apply to a change in the terms and conditions of tenancy, including the imposition of a rule or regulation, prohibiting smoking pursuant to the authority of California Civil Code Section ( c) or otherwise. This requirement that the tenant must consent in writing to notices of changes of terms and conditions of tenancy does not apply to notices about noise, failure to control pets, or other similar conduct which disturbs the quiet enjoyment of other tenants at the property. For purposes of this paragraph, smoking by a tenant does not in and of itself disturb the Page 3 of 6

11 quiet enjoyment of other tenants at the property. This requirement also does not apply to the exceptions specified in Section ( 2)( h)( i). SECTION 5: Subparagraph ( 15)( d)( 2) of Municipal. Code Section , Permissible Reasons For Permanently Or Temporarily Terminating Or Refusing To Renew Tenancy, Title 17, Chapter , is amended as follows: 2) Offer the units at the same MAR as of the date the notice of intent to withdraw is filed with the City of West Hollywood, plus any general adjustments that would have applied under this title had the units not been withdrawn; SECTION 6: Subparagraph ( 15)( b)( 3)( iii) of Municipal Code Section , Permissible Reasons For Permanently or Temporarily Terminating or Refusing to Renew Tenancy, Title 17, Chapter , is amended as follows: iii) That within thirty days of receipt of notice to terminate, the tenant may notify the landlord in writing that the tenant would be interested in re- renting the unit if any of the units are re- offered for rent at a future time and advising the tenant to notify the landlord of future address changes. A tenant shall also provide the City with a copy of the written notice. Failure to submit a copy of the written notice to the City does not affect the tenant' s right of first refusal if the landlord was properly notified. SECTION 7: Subparagraph ( a)( 14) of Municipal Code Section , Exempt Property, Title 17, Chapter 17.24, is added as follows: 14. Withdrawn Units. Upon the withdrawal of all units from the rental market pursuant to section ( 15) of this title, the residential rental building or structure( s) is exempt until such time as any unit within the building or structure(s) is returned to the rental market. SECTION 8: Subparagraph ( a)( 15) of Municipal Code Section , Exempt Property, Title 17, Chapter , is added as follows: 15. Units Deemed Uninhabitable by an Authorized Units that have undergone structural or fire damage in which Agency. Building and Safety, Fire Department, Health Department, Code Compliance or other authorized governmental agency has determined in writing that the rental unit(s) may not be inhabited in its present condition or while work is performed. A copy of the government agency' s written Page 4 of 6

12 documentation must be submitted to the Department. The exemption status shall only be valid for a maximum of 12 months on the next year's registration fees. SECTION 9: Subparagraph ( b) of Municipal Code Section , Exempt Property, Chapter , is amended as follows: b) Qualifications for Exemptions. In order to qualify for an exemption pursuant to subsections ( a)( 2), ( a)( 6), ( a)( 8), ( a)( 9), ( a)( 14) and a)( 15) of this section, an owner of exempt units shall obtain a certificate of exemption pursuant to Commission regulations; except a certificate shall not be required in order to exempt rooms rented to boarders. An application for an exemption shall be filed upon a form prescribed by the city and shall be accompanied by payment of a fee as determined after December 2, 1987, by resolution of the City Council. The Commission shall adopt regulations pursuant to Section governing the monitoring and terminations of exemption certificates for units which undergo a change of use or status. SECTION 10: Subparagraph ( 1) of Municipal Code Section , Permissible Reasons For Permanently or Temporarily Terminating or Refusing to Renew Tenancy, Title 17, Chapter , is amended as follows: 1) Nonpayment of Rent. The tenant has failed to pay the rent to which the landlord is lawfully entitled. Other than rent paid in advance at the beginning of the tenancy, rent is due and payable on the date specified in the rental agreement, provided that the rental due date is a day within the term, whether the term be by the day, week, month, quarter or year. When a landlord and tenant enter into an agreement for the provision of any housing service which was not part of the original terms of the tenancy, any monies paid pursuant to that agreement shall not be considered rent, unless otherwise permitted by this title. Neither the refusal of a tenant to enter into such an agreement, nor the breach of such agreement shall be grounds for termination of the tenancy. SECTION 11: Subparagraph (d) of Municipal Code Section , Remedies, Title 17, Chapter , is amended as follows: d. Any person, including the City, may enforce the provisions of this title by means of a civil action. Any person or entity violating any of the provisions of this title is liable for each and every such offense for actual damages suffered by the aggrieved party, or for statutory damages in the sum of one thousand dollars ($ ), whichever is greater, and Page 5 of 6

13 for punitive damages. The prevailing party may also recover such attorneys' fees and costs as may be determined by the court. SECTION 7. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of complement jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect. SECTION 8. The City Clerk shall certify the adoption of this ordinance. PASSED, APPROVED AND ADOPTED this day of AYES: NOES: ABSENT: ABSTAIN: Councilmember Councilmember Councilmember Councilmember Mayor ATTEST: Yvonne Quarker, City Clerk Page 6 of 6

14 Attachment 2 Resolution

15 RESOLUTION NO. 14- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD AMENDING SECTIONS OF THE RENT STABILIZATION REGULATIONS. THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Subparagraph A of Section 60013, Conduct of Hearing, is hereby amended to read as follows: A. The hearing officer shall control the conduct of the hearing and rule on procedural requests. The hearing shall be conducted in the manner deemed by the Hearing Examiner to be most suitable to ensure fairness to all concerned parties, to secure that information and documentation which is necessary to render an informed decision, and to result in a fair decision without unnecessary delay. There shall be no oral communication outside the hearing between the Hearing Examiner and any party or witness, except at a pre- hearing conference, if any, to clarify and resolve issues. All discussion during the hearing shall be recorded by any electronic recording device. The device used to record the hearing may be turned off only if the Hearing Examiner is required to leave the room. The Hearing Examiner shall summarize the purpose of the recess prior to turning off the recording device. All written communication from the Hearing Examiner after the hearing has commenced shall be provided to all parties. SECTION 2. Subsection ( b) of Section 20001, Change in Ownership, is hereby amended to read as follows: b) Change in Ownership 1) Whenever a change in ownership occurs, the Seller shall provide the Department with written notice of the change in Page 1 of 4

16 ownership including the date of transfer, and the name, address and telephone number of the new owner. 2) The new owner is required to file a registration form with the Department within sixty (60) days of such change; otherwise, a delinquent registration filing fee, established by Resolution of the City Council, shall be assessed along with the penalties set forth in Regulation The new owner' s registration form will only be accepted by the Department if it is accompanied by a copy of a written notification on a form prescribed by the Rent Stabilization Director from the landlord to all tenants advising the tenants of the change of ownership of the building and setting forth the name, address, and telephone number of the new owner and of the new owner's property manager or representative, and a declaration that the new owner served the written notification on all the tenants of the building. 3) Registration amendments also shall be required to be filed with the Department within sixty ( 60) days of a change of the property manager or authorized agent or if the address of the owner or authorized agent changes; otherwise, a delinquent filing registration fee, established by Resolution of the City Council, shall be assessed along with any of the separately applicable penalties set forth in Regulation SECTION 3. Subsection ( c) of Section 20001, Re- registration Following a Vacancy, is hereby amended to read as follows: c) Re- registration Following a Vacancy 1) Effective January 1, 1996, the landlord shall, in the manner described herein, reregister a rental unit with the Rent Stabilization Department each time a vacancy has occurred and the unit is re- rented. 2) Within thirty ( 30) days after a rental unit is reoccupied following a vacancy, the landlord shall provide to the Rent Stabilization Department such information as the Department deems necessary to verify and record the new Maximum Allowable Rent and otherwise effectuate the purposes of the Rent Stabilization Ordinance. The Page2of4

17 information shall be provided on a form provided for that purpose by the City, and shall be certified as true under penalty of perjury by the landlord or authorized agent for the landlord. The form shall be accompanied by a re- registration fee, in an amount established by Resolution of the City Council. 3) Failure to file a complete and accurate vacancy reregistration form with the Department shall result in the property being deemed not to be in substantial compliance with the Rent Stabilization Ordinance. SECTION 4. Subsection ( a) of Section 41001, Procedures for Monitoring Upward Rent Adjustments Following a Vacancy and Recording New Maximum Allowable Rents, is hereby amended to read as follows: Procedures for Monitoring Upward Rent Adjustments Following a Vacancy and Recording New Maximum Allowable Rents a) Upon receipt of the re- registration form which the landlord is required to file within thirty ( 30) days after re- rental of a unit pursuant to Regulation 20001( c)( 2), the Rent Stabilization Department shall review the information provided on the re- registration form. If the initial rent rate established for the new tenancy is in excess of the Maximum Allowable Rent in effect for the prior tenancy, the Department shall verify that the rental unit qualifies for such an increase pursuant to Regulation and Municipal Code Chapter and shall confirm that it is within the amounts permitted therein. SECTION 5. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Resolution or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of complement jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect. Page 3 of 4

18 SECTION 6. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED this day of AYES: NOES: ABSENT: ABSTAIN: Councilmember Councilmember Councilmember Councilmember MAYOR ATTEST: Yvonne Quarker, City Clerk Page 4 of 4