BEVERLY H IL I CITY OF BEVERLY HILLS HUMAN SERVICES DIVISION MEMORANDUM TO: FROM: DATE: SUBJECT: ATTACHMENT: INTRODUCTION DISCUSSION

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1 BEVERLY H IL I CITY OF BEVERLY HILLS HUMAN SERVICES DIVISION MEMORANDUM TO: FROM: DATE: SUBJECT: ATTACHMENT: Human Relations Commission James R. Latta, L.CS.W., Human Services Administrator January 19, 2017 Tenant Landlord Policy Update: HRC Council Liaison Recommendations for January 12, 2017 Meeting 1. Tenant Landlord Policy Update Human Relations Commission Liaison Memo, January 12, Human Relations Commission Rent Stabilization Priorities (2016) 3. City of Los Angeles Rental Registry Program Registration Form 4. Proposed Rental Housing Inspection Program (September 4, 2007) 5. Rental Registry Program Flow Chart 6. Relocation Fee Survey of Beverly Hills Adjacent Cities 7. Los Angeles Housing and Community Investment Department Allowable Rent Increases INTRODUCTION At the HRC Council Liaison meeting on January 12, 2017, Council members Bosse and Reims reviewed a wide range of recommendations provided by the Human Relations Commission and provided the following direction: 1. Create a database for the approximately 8,600 Multi-Family units (duplex and above). 2. Staff will utilize database to establish a Rental Registry Program in the City of Beverly Hills. 3. Change the current No-Cause Termination Ordinance in Beverly Hills to include a relocation fee. 4. Develop methods to limit annual 10% rent increases. DISCUSSION The Tenant Landlord Forum has occurred at the monthly Human Relations Commission meeting since October The Commission has heard the following complaints: Tenant Complaints Received: Served a 60-day no-cause termination notice Feat of retaliatory eviction via 60-day no-cause notice 1/19/2017 HRC Tenant Landlord Policy Update

2 o Living in substandard living conditions because tenant was afraid to address maintenance request with landlord for feat of receiving a 60-day no-cause termination notice o Hesitant to come to speak publicly at Tenant Landlord Forum for fear of receiving a 60-day no-cause termination notice Experienced retaliatory eviction Harassment, intimidation and verbal abuse by landlord/building manager in an effort to motivate them to voluntarily leave their unit Allowing a 10% increase every year is not reasonable Rental increases can be reasonable if the building and repairs are completed in a timely manner, which they are not Concern about lack of relocation assistance for seniors Can t afford an attorney to defend against an eviction or civil suit Maximum allowable rent increase outpaces federal interest rates and social security cost of living adjustment Condition of unit not being preserved; old appliances, carpeting, paint in disrepair Difficult communications with landlord to request maintenance Landlord enters unit without notification Difficulty requesting a reasonable accommodation based on disability status Lack of clarity if the building doors and tenant mailboxes should be locked Inquiring about landlord s right to raise the security deposit the same percent as the rent Lacking a registry, landlords can handle tenant issues as they see fit without consequence Landlord Complaints Received: Concern about safety of tenants belongings on balcony Tenant will not agree to appointment times to perform maintenance on the unit Asked for assistance before proceeding with just-cause eviction Allowable pass-through to Chapter 5 rent controlled units too low to maintain unit/building Concern about water penalty surcharge Concern about seismic retrofit in City Of the approximately 650 calls taken by Human Services since the Forum began, only 50 individuals choose to speak publically at the Commission Forum. After reviewing the Tenant Landlord Rights and Responsibilities (TLRR) Handbook with Human Services, about one third of these individuals are able to get their questions answered and no action is taken. Another third file a complaint to Code Enforcement, and the final third, typically tenants, decide not to take action due to fear of retaliation in the form of a 10% annual increase, a No-Cause Termination, or refusal by landlord to make repairs. When Code Enforcement gets involved, a tenant s complaints become known to the landlord as a result of the investigation process. Code Enforcement addresses any elements that fall under their purview as defined by the City s Municipal Codes. Code Enforcement receives between 2500 and 3000 calls per year. Some callers only need information, some choose not to pursue a formal complaint out of fear of retaliation and some work out the issue privately with their landlord. Below is historical context on the number of complaints formally submitted to Code Enforcement in 2007 following Council s decision not to pursue a Rental Registry in The chart provides some context for 1/19/2017 HRC Tenant Landlord Policy Update

3 Code Enforcement complaints received in 2007, 2015 and then 2016 with the establishment of the Tenant Landlord Forum in October of Total Complaints Received By Code Enforcement Related to substandard building or property maintenance complaints ¾ of Workload devoted to substandard building or 50% 47% 51% property maintenance Data available through the US Census provides context on households in City of Beverly Hills, highlights are as follows: 14,606 total occupied housing units, 5,941 are owner occupied, 8,665 are renter occupied. 17,740 people live in owner-occupied homes, whereas 16,248 people live in rental units; slightly under 50% of Beverly Hills residents are renters. Nearly 65% of renters live in housing built over 55 years ago. Almost 3,000 renter households live in buildings dated earlier than Approximately 40% of renter households spend 35% or more of their gross income on rent. There are approximately 1000 single-person households headed by a man or woman age 65+. The HRC Council Liaison recommendations move the level of the City s involvement in the tenant-landlord relationship from very little involvement to significant involvement. To increase City involvement, there must be a database, updated annually as a baseline to work from. The City of Los Angeles Rental Registry (Attachment 3) includes the name of the owner and manager/management company, the building address, number of units, who pays the utilities, number of parking spaces included, bedroom size of units, move-in date, current monthly rent, and effective date for the last rent increase. The amount of information needed depends on what the City wants to address. 1) Create a database for the approximately 8,600 multi-family units (duplex and above: Currently the City relies on TLRR Handbook and a complaint driven process to trigger Code Enforcement activity. Having a description of each of the 8600 units and their current condition would provide the City the information needed to resolve problems. 1 addition, once completed, a database could be made available for tenants to review before signing a new lease. To establish an accurate and effective registry, it should be tied to the existing apartment rental housing stock in a practical manner. Currently, the City requires property owners to maintain a current business tax registration renewable annually and billed through the City s Finance Department. It would be appropriate to use this existing database to incorporate the rent registry. Additionally, the potential to use this database may also serve to process annual billing of fees. 1/19/2017 HRC Tenant Landlord Policy Update

4 The registry database, once established, would require staff to maintain all transactions, documents and inspections in an organized and transparent manner. As the registry database develops, a clear and accurate history of rent stabilization related matters ate tracked for compliance with codes. Similarly, the same database may be used to track compliance with housing standards and related housing violations. 2) Utilize database to establish a Rental Registry Program in the City of Beverly Hills: The goal of a Rental Registry Program is to ensure adherence with State and Local Health and Safety Codes, to preserve the City s rental housing stock, and to protect the health, safety and welfare of tenants and the public. The HRC discussed the different forms of a rental registry. First there was the most extensive form where staff recommended an ordinance to be developed establishing a rental housing registry program which was presented to Council at the November 7, 2006 Study Session. This was a systematic housing inspection program developed to ensure that all residential multi-family rental dwelling units met and exceeded minimum habitability standards. The rental housing stock in this scenario would be routinely inspected and the quality of life for renters in the City would remain constant and in many cases improve. This would be achieved by conducting systematic inspections of these buildings and individual dwelling units on a two to three year basis. On September 4, 2007, after receiving stakeholder feedback, Staff proposed a less intensive rental housing inspection designed to focus on only the problematic landlords and not all landlords (Attachment 4). The Commission in collaboration with Community Development recommended a similar Rental Registry Program (Attachment 5). This program asks landlords to provide an annual self-assessment of building and unit conditions. In this scenario, the City investigates tenant complaints and only targets landlords whose self-assessments do not match the tenant complaint. The proposed program framework focuses City resources on problem buildings instead of systematically inspecting the interior and exterior of all buildings. This proposal includes six elements: Outreach and Notification - about the program prior to implementation. The information and outreach efforts will Staff will conduct necessary outreach and inform the community include, but are not be limited to, working with rental housing industry stakeholders, neighborhood and homeowner associations, and providing presentations, printed materials, and website information. Owners and managers will be provided information about program expectations along with information about State and Municipal Housing and Health and Safety Codes. Self-Assessment - Owners and managers will complete a self-assessment checklist and submit it to Community Development on an annual basis and prior to a new tenant s occupancy. Included on this checklist are questions related to the interior and exterior of the building including fire department requirements. Exterior Inspections - Staff will inspect the exterior of all multi-family properties and verify conditions submitted on the checklists. (The Fire Department currently inspects apartment buildings with three or more units.) 1/19/2017 HRC Tenant Landlord Policy Update

5 Random Interior Inspections of Self Certified Properties - A small percentage of units City-wide will be inspected to verify the interior conditions stated on the checklists. Upon request, the greater of 1(one) or 20% of an apartment building may be inspected by the City. As a result of the inspection, if hazardous conditions are observed, the City may require full inspection of each unit on the property. Interior inspections typically focus on verification that the exterior of the building is watertight and secure, the electrical systems function with no exposed wiring and working ground fault circuit interrupters (GCFI5), the plumbing systems are installed safely and not leaking or clogged, stairways and handrails are secured, heaters are properly functioning, and smoke detectors, carbon monoxide sensors and fire extinguishers are in place. Complaint Driven Inspections - Staff will continue to respond to tenant complaints. Systematic Inspections - If a building is verified to be substandard and is not repaired in a reasonable amount of time, the City may issue an Administrative Citation and will place the property on a mandatory systematic inspection program (this is a 2016 iteration noted on Attachment 4). This measure includes a process to allow a property owner the opportunity to appeal their case to an independent hearing officer. In an effort to reduce ongoing costs, workload associated with enforcement in these cases will be endured by the owner of the problem property. The least restrictive form of a Rental Registry Program that was not recommended by Council Liaisons is the Inspection Checklist Program (Attachment 1 section 4). This program relies on the tenant and landlord to document the condition of the unit before the lease is signed. If there is a conflict, the City has documentation to work from. 3) Change the current No-Case Termination Ordinance in Beverly Hills to include a relocation fee: Amend the State of California No-Cause Termination Ordinance with a local ordinance requiring payment of a relocation fee. At the January 19, 2017 meeting, the Human Relations Commission will review a Relocation Fee Survey of Beverly Hills adjacent Cities (Attachment 6) and attempt to make recommendations to City Council at the Formal meeting on January 24, As part of their ongoing discussions on No-Cause Termination, the Commission considered the following policy options: Continue the No-Cause Termination Ordinance with no changes Continue the No-Cause Termination and amend with relocation fee requirements Extend length of termination notice requirements from current days State of California requirement, to days via a Beverly Hills Municipal Code requirement Eliminate No-Cause Termination Ordinance, only allow evictions based on just cause The Commission unanimously agreed to recommend the continuation of the No-Cause Termination Ordinance with an amendment requiring relocation fees be paid by the landlord to tenants. This policy will likely reduce landlord use of No-Cause Termination because of the 1/19/2017 HRC Tenant Landlord Policy Update

6 increased costs. If utilized, relocation fees increase the tenant s ability to identify and secure their next apartment lease. The Commission did not establish a majority vote in favor of any other policies listed in the prior bullets. Staff will have to develop a means to identify, registry and monitor No-Cause Termination notices to ensure that the tenant receives a relocation fee. There are many possible considerations all of which will be examined and discussed time permitting by the Commission at their January 19, 2017 meeting. For example, with a database and registry, the City could track the No-Cause Termination Notice process, and ensure the tenant receives a relocation fee. Additionally the HRC recommends adopting a payment process shaped after the City of Los Angeles model leveraging escrow accounts for transfer of fees (Attachment 7). As part of recommendation 3, Council may consider updating relocation fees for Chapter Five tenants. Presently Chapter Five tenants are eligible for relocation assistance if evicted for major remodel, use by landlord, demolition, condominium conversion or Ellis Act. Bachelor unit $2,000, Single unit $2,250, one or more bedrooms $3000, Senior citizens, handicapped or terminally ill $5,000. 4) Develop methods to limit annual 10% rent increases unit: This is a complicated recommendation that may have significant unintended consequences. The Commission will discuss options, time permitting, on how to best achieve this recommendation at their January 19, 2017 meeting. One possible means of limiting 10% rent increases would be not allowing more than an annual 5% increase in rent without proof of renovation or improvements to the unit. Another less intensive means could be similar to the City of Los Angeles and how they limit rent increases to tenants on a range between 3% to an 8% maximum, based on the Consumer Price Index (Attachment 7). RECOMMENDATION The HRC is asked for their feedback following the HRC Council Liaisons recommendations on a multi-family unit database; a Rental Registry Program that includes inspection and verification of condition; changes to the No-Cause Termination Ordinance allowing tenants to receive relocation fees, and a means to limit 10% annual rent increases. 1/19/17 HRC Tenant Landlord Policy Update

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8 CITY OF BEVERLY HiLLS HUMAN SERVICES DIVISION MEMORANDUM TO: Human Relations Commission Council Liaisons FROM: James R. Latta, L.C.S.W., Human Seices Administrator DATE: January 12, 2017 SUBJECT: Tenant Landlord Policy Update ATTACHMENT: 1. Tenant Landlord Rights & Responsibilities Handbook 2. Informal Presentation on Proposed Seismic Retrofit Program for Existing Wood-Frame Buildings With Soft, Weak, or Open Front Walls (September 15, 2016) 3. Rental Registry Proposal Summary 4. Inspection Checklist Program (November 17, 2016) 5. Proposed Changes to No-Cause Eviction Ordinance INTRODUCTION The Commission made significant progress in 2016 promoting the rights and responsibilities of tenants/landlords and providing a public forum where differences can be discussed. Their goals to increase tenant awareness of rights and responsibilities and assist tenants and landlords in navigating governmental and legal systems to resolve their issues have been met. The third goal of utilizing forum feedback to identify and recommend changes to the Municipal Code has been more difficult to complete. Today the Human Relations Commission is seeking direction from Council Liaisons on their recommendations and looking for next steps regarding the City s Tenant Landlord policy. DISCUSSION The new Tenant Landlord Rights & Responsibilities (TLRR) handbook (attachment 1) provides a common foundation for all parties to work from. The TLRR handbook has proven to be an excellent tool for the City to facilitate communication of tenant landlord rights and responsibilities to all involved parties. In addition, tenants and landlords now have direct access to staff via the online complaint form or phone to obtain information and/or to file a complaint with Code Enforcement. Over the past year, the Human Relations Commission provided the open Tenant Landlord Forum at the beginning of their monthly meeting where tenants and/or landlords can express concerns and attempt to resolve differences. The Commission found the public forum helpful to tenants and landlords who are not clear about their tights and responsibilities or who wanted to express concerns publically. Conversely, staff regularly speaks to tenants and landlords prior to attending the Forum, and discusses the pros and cons of voicing their complaints publicly to the Commission. Once most tenants who are 01/12/2017 HRC Liaison Meeting 1

9 on a month-to-month lease learn about the City s No-Cause Eviction Ordinance, they decline to speak at the Forum for fear of retaliation by their landlord. Through the process of examining tenant and landlord feedback, three trends became apparent. First, tenants with a lease typically resolve maintenance and other concerns with their landlord without the City s involvement. Second, tenants on a month-to-monthlease paying market-rent, when subjected to poor living conditions, choose to move to another apartment or report the landlord to Code Enforcement. Finally, tenants on a month-to-month lease paying under market-rent endure poor living conditions and complain to the City, but do not open a case with Code Enforcement fearing landlord retaliation (eviction) per the City s No-Cause Eviction Ordinance and/or an annual ten percent rent increase. Month-to-month tenants paying market rent also complain of retaliation and poor living conditions, but they typically have the ability to move elsewhere in the City. The most vulnerable tenants tend to be seniors on a limited income who have lived in the City for many years. They accept poor living conditions because they cannot afford to move to another apartment in the city. Less scrupulous landlords use their legal teams or other more subtle means to move these vulnerable tenants out, where other landlords offer a cash settlement to allow the vulnerable tenant to move voluntarily. In both scenarios, the landlord is seeking a means to achieve the appearance of a voluntary (legal) relocation by the tenant in order to raise the monthly rent to market and improve their investment. The question is how or even whether the City should intervene to protect vulnerable tenants? The common tenant complaint is I can t afford an annual 10% rent increase on a limited income. Some tenants are willing to pay the 10% increase, if their maintenance requests were addressed, but year after year these tenants report that their maintenance requests get ignored. The common landlord complaint is this tenant has been fortunate to pay very low rent for yeats, but have a mortgage and increasing expenses to pay. I can t afford to subsidize their rent anymore because I To understand some of the current dynamics impacting tenant landlord relations in Beverly Hills, there are some obvious and some not so obvious factors. The first and widely known element is the significant rent increases and rising cost of living in the Los Angeles area. Another element concerning Beverly Hills landlords ate the new seismic retrofit requirements. There are approximately 300 structures (1800 units) in Beverly Hills that owners need to retrofit at a cost of between $5,000-$10,000 pet unit (attachment 2). One more factor that may or may not be unique to Beverly Hills is that many long term owners are selling their buildings to owners that are primarily investors. Investor landlords tend to professionally manage their properties which results in a less personal relationship with each tenant. The strategy is to obtain market rents verses a focus on the relationship and maintaining a long term tenant. Keeping the above factors in mind, staff will provide a brief explanation of each of these recommendations. For additional information please see attachments. Based on direction and feedback from the Council Liaisons, the Human Relations Commission developed a range of options to address the ongoing tension between tenant and landlords. To date the Commission developed the following policy recommendations: 01/12/2017 HRC Liaison Meeting 2

10 1. Increase administrative penalties from $500-si 000 for violations of Beverly Hills Municipal Code (page 2 of attachment 1) 2. Rental Registry Program (attachment 3) 3. Inspection Checklist Program (attachment 4) 4. Continue the No-Cause Eviction Ordinance, but establish relocation fees (attachment 5). In addition, staff recommends a deregulation of the unit rent for participating landlords. As mentioned previously, the most vulnerable tenants in the City of Beverly Hills tend to be long term residents, who are seniors on a fixed limited income, and who are paying under market rent. Trends show that either the tenants pay the ten percent increase annually and do not complain, or they may be subject to a no-cause eviction. This process typically has three potential outcomes. First, the tenant refuses to leave the unit after the termination date, which results in the landlord taking the tenant to court, and leads to an eviction on tenant s record. This scenario is costly for the owner and is also very costly for the tenant who may not have funds to afford legal counsel. The second scenario is the tenant informs the City about the no-cause eviction notice and the City reminds the landlord that if the tenant is terminated through no-cause, then the unit may not be tented to a new tenant for a monthly tent that is more than the evicted tenant was paying when evicted. The third scenario which is best for all involved, including the City, is that the owner and tenant come to a mutual agreement that the tenant receive compensation to voluntarily move-out. Under this scenario, with the current Municipal Codes, the owner is able to rent the unit per their investment goals. Mandatory relocation fees may deter landlords from serving no-cause eviction notices, but without deregulation of the unit, these fees will not improve the housing stock. Landlords would not have any incentive to improve the property, since they would not be able to raise rent for the incoming tenant per the existing Municipal Code. One unintended consequence of the relocation fees could result in extra pressure on tenants to leave their unit voluntarily, lithe tenant leaves voluntarily, the landlord can raise the rent for the next tenant and renovate if it makes sense to maximize their income. FISCAL IMPACT Should the Council Liaisons wish to pursue a Rental Registry Program and respond to the anticipated increase in volume of Code Enforcement cases, a budget enhancement would be necessary. Staff required includes; 1 FTE administrative assistant, 2 FTE Code Enforcement Officers and an increased budget for the City Prosecutor. Projected costs are between $600,000 - $800,000 range. This proposal would only improve the housing stock and not have a significant impact on the rent control. Should the Council Liaisons wish to pursue the Inspection Checklist Program, it is anticipated that one dedicated part-time Code Enforcement Officer and one clerk will be needed to respond to public inquiries, conduct field investigations and apply the necessary enforcement measures, including processing reports for enforcement hearings. The fiscal impact including ongoing program and staff costs is expected to be approximately $200,000. RECOMMENDATIONS Staff is recommending the lower cost Inspection Checklist Program in combination with changes to the No-Cause Eviction Ordinance. The Inspection Checklist Program would be included in the TLRR handbook and be utilized to further enhance awareness for tenants 01/i 2/2017 HRC Liaison Meeting 3

11 and landlords 24 hours prior to signing the lease. Per the current No-Cause Eviction Ordinance, a landlord may still terminate a tenancy for no-cause with either a 30-day or 60-day written notice in accordance with the State law. The Commission recommends that if terminated by a no-cause eviction, the tenant must receive a relocation fee following the terms of escrow. Relocation fees can be determined by unit size, a ratio of monthly rent, vulnerability of tenant or even within the range of what neighboring cities require. In addition, to mutually serve both the tenant who is being evicted, and also the landlord, staff recommends that in addition to the relocation fee, the rental unit must be deregulated, allowing the landlord to determine the new rent. A sufficient relocation fee will allow a vulnerable tenant who has been given a no-cause eviction enough compensation to cover moving costs, funds to put down for a security deposit, and also enough funds to help supplement some of the fees to cover the cost of another unit. The relocation fee should also deter landlords from issuing a no-cause eviction to the tenant unless the cost fiscally makes sense and they can improve their investment. 01/12/2017 HRC Liaison Meeting 4

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13 CITY OF BEVERLY HILLS Community Development Department Community Preservation Division Rent Stabilization Code Enforcement Tenant Landlord Rights & Responsibilities 1- F 3 I Required notice from landlord to all prospective tenants who will be renting an apartment unit in Beverly Hills. This notice is in addition to other disclosures required by the state.

14 To Prospective Tenant and Landlord, On May 1$, 2004, the City of Beverly Hills City Council adopted revisions to the Beverly Hills Municipal Code (BHMC 46-5) relating to rent stabilization regulations which became effective December 18, The Code requires that at least twenty four (24) hours prior to the execution of a lease or rental agreement by a tenant, the landlord shall provide written notice to the prospective tenant advising of certain rights of the tenant and landlord or an administrative penalty in the amount of $500 maybe imposed (BHMC 4-6-5C). Distribution of this document does not imply, guarantee or substitute a commitment for lease or rental agreement. The document of compliance for the signatures of the landlord and prospective tenant is included and the form is available in English, Spanish, farsi, and Korean online at Copies may also be obtained in the Community Development Department, Community Preservation Division, Community Services Department in City Hall at 455 North Rexford Drive, the Library, or through a telephone request at , Sincerely, Community Preservation Division Community Development Department 2

15 EQboRA&oLOrDS fm (Print first and last name) Beverly Hills Municipal Code Section 4-6-5(B), requires that at least twenty-four hours prior to the execution of a lease or rental agreement by a Tenant, the Landlord shall provide written notice to the prospective Tenant of the information set forth above, and that the Landlord shall retain documentation that this notice was provided for the duration of the tenancy. I affirm that I am the Landlord or the Landlord s agent of the subject property, and that I provided a copy of this information to the prospective Tenant in accordance with the requirements of Beverly Hills Municipal Code Section 4-6-5(8) on the date and time below: (Date) at AM PM (Time) (Landlord or Landlord s Agent s Signature) PARKING INFORMATION The following are the parking restrictions on the public streets in the area adjacent to the subject building and the building s on-site parking restrictions tfor information and permitting cost see page 7): PROSPECTIVE TENANT (Print first and last name) I affirm that I am a prospective Tenant with an application to rent an apartment unit located at: (Address) (Apartment number) I affirm that the Landlord or Landlord s Agent provided me with a copy of the information set forth herein at least twenty-four hours prior to my execution of a lease or rental agreement for this apartment unit on the date and time below: (DQte) at (Time) AMPM By (Prospective Tenant s Signature) Signing this document does not imply, guarantee or substitute a commitment for lease or rental agreement. 3

16 Beverly Hills Municipal Code Section 4-6-5(B) requires that the Landlord provide the prospective Tenant with written notice containing all the following information at least 24 hours prior to the execution of a lease or rental agreement: H Rent Increase Just-cause Eviction No-cause Eviction The following are Beverly Hills Municipal Codes, some of which may be California State Codes: 2. The Landlord may increase the monthly tent no mote than 10% with no mote than one increase in a twelve month period. The Tenant shall be given a 30-day written notice of each annual tent increase, as requited by State law. BHMC 4-6-3(C) 3. If an apartment unit is voluntarily vacated by the Tenant, or the Tenant is evicted 4. The Landlord and Tenant may not enter into an agreement to waive any provision of the Beverly Hilts Municipal Code (BHMC) relating to rent increases. BHMC 4-6-4(A) for any of the following reasons (just cause evictions), the unit may be re-rented for any amount: Failure to pay rent; Breach of rental agreement; Maintenance of nuisances; Excessive number of tenants; Refusal to provide access to make repairs or improvements; or Unapproved subtenants. BHMC The Landlord also may terminate a tenancy for no reason (no-cause eviction) with either a 30-day or 60-day written notice in accordance with state law. However, the unit may not be re-rented to a new tenant for a monthly rent that is more than what the evicted Tenant was paying when they were evicted. BHMC [Any Tenant who receives a 60-day notice for a no-cause eviction (Involuntary Termination of Tenancy) should contact Code Enforcement at ], 5. Under certain conditions, the Landlord may charge a Tenant a monthly water service penalty and a refuse fee surcharge, in addition to the monthly rent. BHMC & At the termination of a tease or rental agreement the Landlord and the Tenant can agree to extend the agreement or they can enter into a new lease or rental agreement. If the agreement is not extended or a new one put in place, a monthto-month tenancy will be created as long as the Tenant continues to live in the unit and the Landlord accepts rent from the Tenant. A month-to-month tenancy can be terminated at any time if the landlord provides written notice to the Tenant in accordance with state law (60-day written notice required).

17 SUMMARY OF A TENANT S BASIC RIGHTS UNDER STATE LAW I Entry by the Landlord Repair of Substandard Conditions Remedy prospective tenant initials Security deposits ore refundabte and must be returned at the end 0f the tenancy [California Civil Code Section (m)]. The Landlord may retain part, or all, of the security deposit if there was rent due, the vacated unit is left in a dirty or damaged condition (other than normal wear and tear), or personal property of the Landlord is missing from the vacated unit [California Civil Code Section (b)], otherwise the full amount must be returned to the Tenant. Within 21 days after the unit is vacated, the Landlord must refund the security deposit in full, or mail or personally deliver to the Tenant an itemized statement that lists the amounts of any deductions and the reasons for those deductions from the security deposit, along with a refund of any amounts not deducted [California Civil Code Section 1 95O.5(g)]. Under State law, the Landlord can enter a rental unit in the fàliowing circumstances only: An emergency; When the Tenant has moved out or has abandoned the unit; To make necessary or agreed-upon repairs, decorations, alterations, or improvements; To show the unit to prospective tenants, purchasers, contractors, or lenders; To provide entry to contractors or workers who are to perform work on the unit; To conduct an initial inspection before the end of tenancy; Pursuant to a court order; To inspect the installation of a waterbed when the installation has been completed, and periodically thereafter to assure that the installation meets the requirements of state law and the manufacturer s specifications [California Civil Code Section (f)]. Unless the Tenant is present and consents at the time of entry, the Landlord must give the Tenant 24-hour advance written notice before entering the unit, except when the Tenant has moved out of the unit, abandoned the unit, or in an emergency, and the Landlord can enter the unit only during normal business hours (generally, 8 am. to 5 p.m. weekdays). The Landlord must give written notice by personal delivery or leave the notice at the unit with a person of suitable age and discretion; or leave the notice on, near, or under the Tenant s usual entry door in such a way that it is likely to be found; or mail the notice to the Tenant [California Civil Code Section 1 954]. A Tenant may deduct money from the rent, up to the amount of one month s tent to pay for the repairs of defects in the rental unit [California Civil Code Section 1 942]. Defects that qualify for this remedy must be substandard conditions that affect the Tenant s health and safety and substantially breach the implied warranty 0f habitability. The repairs cannot cost more than one month s rent. The deduction remedy cannot be used more than twice in any 12-month period. The Tenant must not have caused the defects that require the repairs. The Tenant must have informed the Landlord of the need for repairs and must have given the Landlord a reasonable period of time to make the repairs. Because this remedy can lead to an eviction for failure to pay rent, it is recommended that the Tenant consult with an attorney prior to deducting any amount from the requited rent. 5

18 Retaliatory Eviction Housing & Health Code Standards L Home y Occupation California State law provides tenants rights information if a retaliatory eviction has occurred; contingent on the following circumstances: Within six months after the Tenant has exercised rights under the repair of serious defects remedy; After the Tenant has complained about the condition of the rental unit to the Landlord or to an appropriate public agency; After giving the Landlord notice; After the Tenant has filed a lawsuit or commenced arbitration based on the condition 0f the unit or has caused an appropriate public agency to inspect the unit or to issue a citation to the Landlord [California Civil Code Section (c) ]. The Uniform Housing Code and the California Health and Safety Code require that an apartment unit be equipped with proper ventilation, window screens, smoke detectors, carbon monoxide detector, kitchen sinks, hot and cold running water, a functional bathroom, and an operational heating unit. All apartment units must be free of any structural hazards, faulty electrical wiring and plumbing defects. Any suck violations should be reported immediately to the Landlord. If the Landlord fails to make repairs within a reasonable time period the Tenant may report the violation(s) to Community Preservation at The Beverly Hills Municipal Code (Article 43 of Chapter 3 of Title 10 - Zoning) allows certain home-based businesses under specified conditions. Prior to operating a home occupation the operator shall provide a signed affidavit of compliance as conditioned in the code. The following types of home occupations are prohibited: automotive repair, transient lodging, restaurants, rental of a residence for events, any activity requiting a regulatory permit issued by the City, any activity producing biohazardous or medical waste, manufacturing, and any use that is prohibited or requires a Conditional Use Permit in a Commercial Zone. For more details, contact the Planning Division at In addition, the Landlord may prohibit or otherwise regulate a Tenant s ability to engage in a home occupation in an apartment unit as part of the lease or rental agreement.

19 - c. Resources are available in the community and through the City of Beverly Hills. Get the information and services you need to ensure your rights as a tenant and! or landlord are protected. COMMUNITY RESOURCES ) ) Mediation Services Center for Civic Mediation Main: 877-4RESOIV ( ) Web: centerforcivicmediation.org Tenant/Landlord Counseling and Housing Rights Information Housing Rights Center Main: (800) Counseling hoti Ine: ($00) Web: Hrc-la.org CITY RESOURCES ) ) ) Municipal Code Information Community Preservation Division - Rent Stabilization & Code Enforcement Community Development Department Hotline: (310) Web: beverlyhills.org/rent Parking Permit Information Public Works Services Main: (310) Web: beverlyhills.org/parkingpermits Tenant Landlord Forum Human Relations Commission In support 0f Tenants and Landlords Community Services Department The Commission can assess your situation Main: and advise on a plan for resolution. I Web: beverlyhills.org/hrc humanservices@beverlyhills.org _- F 1 7

20 CITY OF BEVERLY HILLS 455 N. Rexford Drive Beverly Hills, CA

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22 BEVERLY HIL CITY OF BEVERLY HILLS COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM TO: FROM: Human Relations Commission Arlen Eskandari, Senior Plan Review Engineer I Raj Patel, City Building Official, Assistant Director of Community Development DATE: SUBJECT: September 15, 2016 Informational Presentation on Proposed Seismic Retrofit Program for Existing Wood-Frame Buildings With Soft, Weak, or Open Front Walls INTRODUCTION The Beverly Hills City Council requested the Community Development Department to provide recommendations to strengthen buildings that are potentially vulnerable to significant damage in the event of an earthquake. The Community Development Department is proposing an ordinance requiring mandatory retrofit of existing structures known as soft-story buildings. Open front, soft-story buildings are typically wood-frame, low-rise buildings with multi-family living space above parking on the first story. During an earthquake, these soft-story buildings perform poorly and are vulnerable to collapse. As a part of the public outreach process, in addition to the Human Relations Commission, Community Development staff will be presenting this ordinance to the Planning Commission and the Health and Safety Commission. Each of these commissions has a unique perspective on the needs of the community and can provide valuable feedback that can be incorporated prior to presentation to the City Council. The schedule for presentations is as follows: Date Human Relations Commission 9/1 5/2016 Commission Planning Commission 9/19/2016 Health and Safety Commission 9/26/2016 I I BACKGROUND The Community Development Department originally retained the services of Degenkolb Engineering to help develop a soft-story retrofit ordinance. Established in 1940, Degenkolb Engineering is the nation s oldest and largest earthquake engineering firm, specializing in identifying and retrofitting vulnerable buildings. Structural engineers from Degenkoib initially conducted a field survey of the city, followed by a review of building permit records to identify and develop an inventory of soft-story buildings. The current inventory identifies approximately 300 structures categorized as having a soft-story deficiency. It is estimated that there is approximately 1,800 living units that make up these /15/2016 Proposed Seismic Retrofit Program

23 structures. The results of the survey were presented to the City Council in January At that time, the City Council instructed staff to begin the development of a seismic retrofit ordinance for existing soft-story buildings. The proposed ordinance would improve public safety by reducing the risk of collapse and subsequent death or injury in an earthquake. However, the ordinance would also protect the public welfare by reducing the loss of wood frame apartment buildings which are currently the city s most affordable housing stock. In the 1994 Northridge earthquake, soft-story buildings made up two-thirds of the 49,000 housing units that were made uninhabitable and accounted for more damage and injury than any other type of building damaged during the earthquake. The surrounding cities of Los Angeles, Santa Monica, and West Hollywood suffered extensive damage to soft-story buildings during the Northridge earthquake. The loss of 1500 apartment units (5% of their total housing units) as a result of the Northridge earthquake was the impetus for the City of Santa Monica to adopt a soft-story retrofit ordinance in In 2015, the City of Los Angeles adopted an ordinance requiring retrofit of an anticipated 13,500 soft-story buildings and the City of West Hollywood recently identified 780 soft-story buildings and is expected to adopt a retrofit ordinance later this year. DISCUSSION The proposed ordinance applies to soft-story buildings built prior to The ordinance would require strengthening of the first floor of the building through the addition of steel moment frame, shear walls and bracing of the opening(s). The scope of work is not expected to reduce the amount of first floor parking area or change the aesthetics of the exterior of the building. It is anticipated that the retrofit work would take approximately between one to two months. The ordinance provides specific time limits for building owners to submit an engineering report verifying whether their building has structural vulnerabilities and to submit plans, obtain permits, and commence and complete the retrofit work. This is similar to the retrofit process identified in ordinances adopted or being considered by neighboring cities. Required Submit Submit Obtain. Action by. Screening Retrofit.. Building Owner Form Plans. Permit Commence Complete Construction Construction Beverly Hills 180 Days 365 Days 1.5 Years 2 Years 2.5 Years Los Angeles 365 Days 2 Years 7 Years Santa Monica Currently Updating Building Inventory and Existing Mandatory Ordinances oi!yoo 365 Days 2 Years 4 Years 5 Years From date the notice is served to owner The cities of Los Angeles and San Francisco have developed cost estimates for completing seismic retrofits of soft-stbry buildings. It is estimated the cost of retrofit is between $5,000 to $10,000 per dwelling unit (the cost for retrofit of a four unit building would be between $20,000 and $40,000). A primary consideration of the city s retrofit program is the ability for building owners to pass along the related retrofit costs to their tenants. It is anticipated that all of the affected buildings are subject to the City s rent stabilization ordinance. The current recommendation is not to allow the costs of retrofit to be passed on directly to tenants. Instead, costs could be passed along in accordance with rental rate increases as regulated by the current Chapter 5 and 6 rent stabilization ordinances. The table below displays the annual 09/15/2016 Proposed Seismic Retrofit Program

24 I allowable rent increase and retrofit cost pass-through to tenants in the City of Beverly Hills as well as those cities that have a seismic retrofit program in place: City Beverly Hills City of Los Angeles Santa Monica West Hollywood San Francisco T Retrofit AM owable Annual Costs Rent Increases Pass-through to Tenant Chapter 5: Allows Chapter 6: up to 8% or the Allows a not-to- No. Annual rent increase average Consumer exceed 10% allowances are sufficient for Price Index once increase within landlord to recover the seismic every 12 months any 12 month retrofit cost. (Whichever is lower) Share 3% 50% of Los of retrofit Angeles-area Yearly CPI costs with maximum of Increase, up to 8% (whichever is higher) $38/month for 10 years 75% of the Yearly Los Angeles-area CPI Currently Updating Existing Increase Mandatory Ordinances 75% of Yearly Los Angeles-area CPI Increase A consultant was hired to review options for an equitable cost sharing plan 60% of Yearly San Francisco-area CPI Share 100% of retrofit costs Increase over 20 years The City is also collaborating with neighboring cities to determine other methods of assisting building owners with financing retrotit work. One example is the Property Assessed Clean Energy (PACE) program, which can arrange a loan directly between the lender and the building owner that is paid back through property tax assessments for a time period of up to twenty years. The PACE program eliminates the need for up-front payments and allows for transferring of the remaining balance to a new property owner. Potential future costs to the city include the following: (1) Upgrades to the City s existing permitting system to include enhancements to assist with tracking the progress and issue notices for those properties required to comply with the seismic retrofit program. (2) Extending the current Agreement with the City s Consultants, Degenkolb Engineers, to include assistance with implementation of the ordinance. The scope of work would include any additional community outreach, internal staff training, development of Design Guidelines to assist the public with the retrofit of their buildings, and plan review consultation. (3) Staff will also be exploring the options of providing incentives such as waiving plan check. permit, and planning fees associated with seismic retrofit work 09/15/2016 Proposed Seismic Retrofit Program

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26 City of Beverly Hills Rental Registry Introduction Key Rental Registry program elements include: Self-certification that building and units meet minimum health, safety and livability standards. Follow up enforcement and scheduled inspections to verify self-certification. Systematic inspection for problem properties. The Commission s purpose in recommending the Rental Registry is to preserve the rental housing stock in Beverly Hills and protect the welfare of tenants. Discussion The City s Community Development Department first investigated the idea of a Rental Registry program in 2006 and presented to City Council, in November of that year, a proposed systematic Rental Housing Inspection Program. Following the meeting, staff conducted multiple public outreach presentations and received the following feedback: Concerns with cost Equity (good buildings should not need systematic inspections) Tenant s privacy Added bureaucracy Negative experience with other programs Positive nature of Self Assessments Education for landlords and Managers Staff considered these comments and produced a program framework that focuses resources on problem buildings instead of systematically inspecting the interior and exterior of all buildings. This new proposal includes six steps as described below and depicted in the diagram that follows: Outreach and Notification - Staff will conduct necessary outreach and inform the community about the program prior to implementation. The information and outreach efforts will include, but not be limited to, working with rental housing industry stakeholders, neighborhood and homeowner associations, and providing presentations, printed materials, and website information. Owners and managers will be provided information about program expectations along with information about State and Municipal Housing, Health and Safety Codes. Self-Assessment - Owners and managers will complete a self-assessment checklist and submit it to Community Development on an annual basis and prior to a new tenant occupancy. Included on this checklist are questions related to the interior and exterior of the building including fire department requirements. Exterior Inspections - Staff will inspect the exterior of all multi-family properties and verify conditions submitted on the checklists. (The fire department currently inspects apartment buildings with 3 or more units). Random Interior Inspections of Self Certified Properties - A small percentage of units City-wide will be inspected to verify the interior conditions stated on the checklists. Upon

27 City of Beverly Hills Rental Registry request, the greater of City.As a result of the inspection, 1 (one) or 20% of an apartment building may be inspected by the if hazardous condition(s) is observed, the City may require full inspection of each unit on the property. Interior inspections typically focus on verification that the exterior of the building is watertight and secure, the electrical systems function with no exposed wiring and working ground fault circuit interrupters (GCFIs), the plumbing systems are installed safely and not leaking or clogged, stairways and handrails are secured, heaters are properly functioning, and smoke detectors, carbon monoxide sensors and fire extinguishers are in place. Complaint Driven Inspections - Staff will continue to respond to tenant complaints. Systematic Inspections - It a building is verified to be substandard and is not repaired reasonable amount of time, the City may issue an Administrative Citation and will a place the property on a mandatory systematic inspection program (this is a 2016 iteration noted on Attachment 2). This measure includes a process to allow a property owner the opportunity to appeal their case to an independent hearing officer. workload associated with enforcement problem property. in In an effort to reduce ongoing costs, these cases will be endured by the owner of the in

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29 cieverl.y CITY OF BEVERLY HILLS HUMAN SERVICES DIVISION MEMORANDUM TO: FROM: DATE: SUBJECT: ATTACHM ENT: Human Relations Commission Nestor Otazu, Code Enforcement Manager November 17, 2016 Inspection Checklist Program 1. Inspection Checklist 2. Administrative Citation 3. Administrative Enforcement Process 4. Inspection Checklist Flow Chart Action is requested. Current Challenges: Background There are approximately 8600 apartment units within the City of Beverly Hills. State and municipal laws provide regulation to various property and building code standards. Common tenant complaints are typically concentrated and related to substandard building maintenance complaints involving common areas with a higher concentration of complaints related to interior living spaces. Housing Stock The quality of the City s rental housing stock is aging and in some cases, approaching its life expectancy. Many properties are in need of significant improvements and maintenance which affect the interior and exterior of buildings. There has been a significant increase in complaints and confirmed violations related to substandard violations. In many cases, repeat violations occur as result of substandard repairs or insufficient property maintenance. Furthermore, it is well documented that many tenants choose not to make requests for repairs or complaints for fear of retaliation by the landlord, resulting in further deteriorating of the quality of the housing stock, particularly as it affects the interior of rental units. Rent Stabilization The City s Rent Stabilization Ordinance applies to all apartment units within the City. Under the current rent stabilization codes, a property owner may choose to terminate a tenant currently renting on a month-to-month periodic agreement for no-cause. The Code currently requires that if termination is desired, the property owner issues a 60-day notice (in advance of vacancy) to the tenant in order to vacate the unit. Under the current provisions, the next tenant s rent must not exceed the prior tenant s rental amount. City staff has experienced a rising number of tenants whose tenancies are being terminated through a no-cause eviction. The exact reasons are unknown, however, they vary from a tenant not being the right fit for the unit, to 11/17/2016 HRC Inspection checklist Program

30 tenanb landlord disputes, to property owners wanting to charge a greater amount of tent than the current maximum rent increase codes allow. In many cases where tenants receive a 60-day notice, tenants report that 60 days is not sufficient time to find another rental unit due to various reasons including rental unit availability, children in the school system, work related issues, and financial or physical limitations. Program Goals: The main focus of the proposed Inspection Checklist Program is to improve and maintain the quality of the City s rental housing stock through the implementation of an Inspection Checklist Program (Attachment 1). This program is designed to ensure that minimum housing code standards are maintained, resulting in safe, code compliant apartment units. The proposed Inspection Checklist will be included as a part of the current Tenant Landlord Rights and Responsibilities (TLRR) notice. The Inspection Checklist will be disclosed to the tenant prior to tenant occupancy, and to thecity upon request. Currently, the Code requires property owners to keep a signed copy (landlord and tenant signatures) on file, and provides a $500 fine (proposed to increase to $1000) to the property owner in the event that a signed copy cannot be produced (upon City request). By receiving and reviewing the Inspection Checklist from the property owner, it is expected that an incoming tenant will receive a greater level of assurance of the quality of the unit. Additionally, complaints received by the City, which at any time result in violations that breach the minimum standards outlined in the self-inspection report, may result in the City issuing a Compliance Order or an Administrative Citation (Attachment 2) per the administrative enforcement process (Attachment 3). Staff recommends immediately issuing an Administrative Citation, and bypassing the Compliance Order. It is anticipated that there will be a significant reduction in landlord/tenant retaliation if this program is implemented. Scope of the program: The scope of this program is to require an Inspection Checklist report (completed by the landlord and signed by tenant and landlord), integrated into the current TLRR which is already required by Code (BHMC 4-6-5) to be given to a prospective tenant prior to signing a rental ag teem ent. The TLRR will state the requirement for the landlord to maintain (at all times and upon request by tenant) the unit to minimum code standards. In the event a repair becomes necessary to keep the unit up to minimum standards, the tenant will be expected to notify the landlord in writing. If within 14 days the repair is not completed nor a response is not received, the tenant may then file a complaint with the City, provided the necessary documentation is provided. The City will respond by performing a site inspection to verify the violation, and apply enforcement through the issuance of an Administration Citation which carries incremental fine amounts for repeated violations. The 2016 citation amounts are as follows: the first citation $106.90, the second citation $214.10, and the third citation S The citation amounts are subject to change each year per the consumer price index annual increase. Fiscal Impact: It is anticipated that one dedicated part-time code enforcement officer and one clerk will be needed to respond to public inquires, conduct field investigations and to apply the necessary enforcement measures, including processing reports for appeal hearings. The fiscal impact including ongoing program and staff costs is expected to be around $200, /1 7/2016 Inspection Checklist Program

31 - - Provides Program mechanics: This program relies of the Inspection Checklist (with landlord/tenant signatures) integrated within - Inclusion - Increased - Increased in the TLRR notice part on the following: public awareness, outreach and notification pertaining to BHMC 4-6-5, related to the TLRR notice requirement. fine amount from $500 to $1000 for failure to serve signed notice to the tenant or failure to submit signed notice to the City Proposed Model: - See Program Flow Chart (Attachment 4) Benefits of the Program: Tenants: - - Potential Greater assurance of a safe, code compliant rental unit for reduced landlord/tenant retaliation Decreased potential for tenant/landlord disputes Landlord: - Greater - clarity in tenant agreements and understanding Decrease potential for tenant/landlord disputes for safer building/property conditions City: - - Increased - Anticipated Anticipated decease in substandard building complaints maintenance in rental housing stock decease in tenant/landlord civil disputes 11/17/2016 Inspection Checklist Program

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33 - Apartment Rental Unit Checklist Note: Ths cheokllst is lntened o- use as a re:-d for the condition of the rent& unit. Item Condtlon PricttornovIn Paint/W&Is Ceiiing CarpetlFlcors Livinq/Dining Room - Corn rnent W:necws/ Doors Curts nsfhos Light Fixtures Eieotric5 Outlets flreplace Ocher j Kitchen kern Condition Prior to move in Comments Ref-geracor Oven Stove/Range Cabrets Pant/Wails Ceiling Ficors UghtFtures _:--_ Sink/dre n I Faucets/Water Dispensers Garbage DIspcSal Dishwasher Counter Surfaces Exhaust Fan Windows/Dcor Other

34 r tj UuiU.J - Bedroomi Iten Condticn Prior to mole In Comments Pin/Wils Ceit.ç Crps:/FIcr Closet Windcw5jDDl Cur Sins! inds L ght Fxures Eetrica Duits Bedroom2 I:en Condition Prior to move In CoTmen Pant/21s Ce lir Ce-etjfIccs Cioset Wt dcws/do:r Curts-,s/5 rds Ch: F xt.ves ecrics Outlets Otre Bedroom3 1tm Condiuor Prior to move in Comments I - - Cei rg CspeFloos Closet fl rdoms/dcos CurtacC/5inds Ligbc Fxtjres Electnc Outiets Bed room4 Item IConditlon Prior to move in Comments Celling

35 Other - j Cet/Foor Closet WrdovI3fDDors Curtains/B nds Ucht F xturs Eecmica Outlats Ocher Item lcandhicn FrIar to mo e It Other Rooms I Comments Panc/Wels CeIIIn Capet/ Floors Closet/Storage WiYO CutaInS/BIhdS LIght FIxtures EeotrcaI Out:&s Other Bathroom 1 I:em Conicior Prior to move In Comments Cabinets PaInt/Wets - Ceiltg Ca Floors LIght Fxtures Eleotrical Outlets Faucets TDilet SInk/drC n Counter Srfeces + T - Wrdws Bath/Sbowe

36 Cone cor Prior t moj ii Bathroom2 Corn7ents Cabrnets Pint/W9s CeH lag Carpe/FIco-s Ugit Fxt.rS j Eectrtc Ou ts Tdllet 5rk/drar Ccjae Faa W-awS a1/shjet± at Bath room3 Item Ccidi ca Pncr tc mc ie jr Ccma-e-ts Cab aes Peat/Wa a Ceirg Carpe#F core Lh F xtues E ectricai Otiets Feces Toilet S a</dre a Coin tar Surtces ar W adow Bath/Shower Cthe Garage/Parking Item ICondltioa Prior to move a Commeats Cabinets Paint/Wale Ca Hag

37 Ceitng ))/)/\ / ul J Fiocts Eletrca Outies Windo,s Doors Otnar Exterior Private Areas tterr Ccditori Prlo to nova In Corrents Pant/Walls Floors Eiectrica Dtlets Wrdows/Doors Ot,er Cacdit;cn Pncr to nova Ii Other Equipment Ar c:nditioning -eating Ot ar Security davices StoragE Tenant Move In TEnS-it. P-cice s a pb c secce by tne Ct of eierly h a Dapsrrneflt of Cormumty DavE rant. Rvisd October 216

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39 CITY OF BEVERLY HILLS COMMUNITY DEVELOPMENT DEPARTMENT - CODE ENFORCEMENT DIVISION 455 North Rexford Drive TEL: Beverly Hills, CA fax: ADMINISTRATIVE CITATION Violation Date, Ti me:case No.: CE, LOCATION PROPERTY OWNERIRESPONSIBLE PERSON Municipal Code Violation: Description: BY THE ISSUANCE OF THIS ADMINISTRATIVE CITATION YOU ARE HEREBY ORDERED TO IMMEDIATELY CEASE THE COMMISSION OF THE MUNICIPAL CODE VIOLATION LISTED ABOVE. CITATION AMOUNT: j FIRST VIOLATION $ PAYMENT OF IMPORTANT Q SECOND VIOLATION $ THIS FINE SHALL SUBMIT THE PINK COPY OF THIS BE MADE WITHIN DAYS DATE CITATION WITH YOUR 20 OF THE Q THIRD VIOLATION S OF THIS ADMINISTRATIVE CITATION. PAYMENT. Make all checks, cashier s checks or money orders payable to CITY OF BEVERLY HILLS for the total amount due. You may pay your citation by mail or in person at: City of Beverly Hills Community Development Department 455 N. Rexford Drive, Room GlO Beverly Hills, CA For questions regarding this citation, please call fine within the time specified will result of this citation for information on late payment charges. in penalty and interest charges in. The failure of any person to pay the addition to the fine amount. See the back El U.S. Type of Service El Personal C Posting El Publication_ Mail Issuing Official: Phone: Official s Signature: Issuance Date: Property Owner/Responsible Person: Date ORIGINAL CASE FILE SEE REVERSE SIDE FOR INSTRUCTIONS ON CONTESTING THIS CITATION PINK VIOLATOR YELLOW-VIOLATOR

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41 ADMINISTRITIVE E$FoII1EMENT PROCESS ADMINISTRATIVE CITATION

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43 Inspection Checklist Program Proactive Targeting the Problem Public Awareness Outreach and Education Owner completes Self-Assessment Inspection Checklist (Affidavit) Signed Inspection Checklist provided to tenant and City (upon equest) I Tenant files complaint to City I City receives required documentation and verifies violation No violation \I/ Unit needs repair Violation confirmed Tenant notifies Landlord via written 14-Day Notice 1 Repair not corn p leted Owner completes repair or > responds with completion date Enforcement through Administrative Penalty Process Compliance obtained Case closed

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45 Policy Options Regarding 60-day Notice No Change Continue to rely on CA State law which authorizes landlords to issue either a 30 or 60 day notice for no-cause termination. Hypothesized impact: Tenant and landlord dynamic does not change. Tenants remain at risk of termination; landlords retain their rights as defined by the State. If ordinance remains, recommended to establish mechanism to report and monitor notices and continuity of rent between exiting and entering tenant. Extend length of termination Extend noticing requirements from 30/60 days to 3mo/6mo. notice requirements (supersede state ordinance with local Hypothesized impact: Allow tenants more time to (1) assess legality of their municipal code) termination (determine if termination is retaliatory), (2) secure new housing. For landlords, they will have a longer wait period prior to the unit being available. Eliminate no-cause termination Eliminate no-cause termination; only allow evictions based on just cause and (supersede state ordinance with other scenarios like owner re-occupancy or demolition of the building. local municipal code) Hypothesized impact: Increase tenants rights and ability to remain in the community. Decrease owners ability to remove tenants from units without just cause. Maintain current no-cause Continue to rely on CA State law which authorizes landlords to issue either a 30 termination law AND add or 60 day notice for no-cause termination AND require landlords to issue relocation fees relocation fees. Hypothesized impact: Tenant and landlord dynamic related to termination does not change - tenants remain at risk of termination; landlords retain their right to terminate as defined by the state. However, with the addition of required relocation fees, tenants will have funds to utilize in establishing their next housing situation. Landlords will face increased costs when terminating tenants. Amount of relocation fee is yet to be determined. On 5/19/16 the Commission voted 5-0 in favor of recommending this policy to City Council. *

46 Policy Options Regarding Relocation Fees No Change Chapter 5 tenants are eligible for relocation assistance if evicted for major remodel, use by landlord, demolition, condominium conversion or Ellis Act. Bachelor unit $2,000, Single unit $2,250, one or more bedrooms $3000, Senior citizens, handicapped or terminally ill $5,000 Chapter 6 tenants no relocation fee structure Establish relocation fees Update Chapter 5 and Chapter 6; establish relocation amounts based on unit size 2 according to unit size West Hollywood: Bachelor Unit $5,100 One bedroom Unit $7,200 Two-bedroom Unit $9,700 Establish relocation fees Update Chapter 5 and Chapter 6; establish relocation amounts based on unit size 3 according to unit size and and additional considerations for a defined priority population: senior 62+, vulnerability of occupant disabled, terminally ill or a minor. West Hollywood: Qualified Tenant in Household $13,500 - It any tenant in the household is 62 years of age or older, disabled, living with one or more dependent minors, terminally ill or are moderate income (120% AMI). Lower Income Tenant in Household $17,000 Santa Monica: Single: $8,650 or $9,900 (if member of household is 62+, disabled or minor). One bedroom: $13,300 or $15,350. Two or more bedrooms: $18,050 or $20,750. Los Angeles: Amounts range from $7,700 minimum to $19,300 maximum AddItional housing retention strategy to assist existing tenants: Redirect a portion of the City s Affordable Housing Trust Fund to support qualified tenant households in reducing rental burden. Suggested definition of qualified tenant household: The head of household is 62yo or older; AND, head of household s tenancy in unit is 15 years+; AND their monthly rental amount is 40% or more of their monthly income.

47 - ho U S NG +CQ 1 MUN II ent Oertne: ALLOWABLE RENT INCREASES Rent Stabilization BuLletin responding reduction in rent is required when the additional tenant vacates the unit. Se curity deposits may also be increased by 10% for the additionat tenant/s. 7. A landlord may collect a monthly surcharge of $3.61 from the tenant to recover the paid Systematic Code Enforcement fee. 8. A $12.25 surcharge may only be collected in the month of June with advance notice to recover hati of the $24.51 paid registration fee. Landlords are required to serve tenants with a written 30-day notice for rent increases that are less than 10% of the tenant s rent, or a 60-day notice for rent increases over 10% of the tenant s rent within a 12- month period. CHRONOLOGY OF ALLOWABLE RENT INCREASES SINCE /1/79 7/1/85 7/1/86 7/1/87 7/1/88 7/1/89 7/1/90 7/1/91 7/1/92 7/1/93 PERCENTAGE PERCENTAGE DATE DATE ALLOWED ALLOWED 6/30/85 7% 7/1/00-6/30/01 3% 6/30/86 4% 7/1/01 6/30/87 5% 6/30/88 4% 7/1/03 6/30/89 4% 7/1/04 6/30/90 5%. 6/30/02 3% 7/1/02. 6/30/03 3% 7/1/05 6/30/91 5% 7/1/06 6/30/92 5% 7/1/ /30/04 3% 6/30/05 3% 6/30/06 3% 6/30/07 4% 6/30/08 5% 6/30/93 5% 7/1/08-6/30/09 3% 6/30/94 3% 7/1/09-6/30/10 4% 7/1/94-6/30/95 3% 7/1/10-6/30/11 3% 7/1/ /1/97 7/1/98 7/1/ /30/96 3% 7/1/11 6/30)97 3% 6/30/98 3% 7/1/13 6/30/99 3% - 6/30/12 3% 7/1/12-6/30/13 3% 7/1/14 6/30/00 3% 7/1/ /30/14 3% 6/30/15 3% 6/30/16 3% 2

48 Work Upgrades t1v I HO U S I N + COMMUNITY emn Oepa. Irer ALLOWABLE RENT INCREASES RENT ADJUSTMENTS THAT REQUIRE APPROVAL BY THE RENT STABILIZATION DIVISION The rent for a rentat unit may atso be increased through the proper submission to and ap provat of an appropriate cost recovery apptication to the Rent Stabilization Division for: 1. Capitat Improvement - Additions or replacements to the rental unit or to the property s common areas, provided that the improvement has a usefut tife of five years or mote. 2. Rehabilitation Work or repairs done by the landlord due to changes in the housing code since January 1, 1979, or to repair damage resutting from fire, earthquake or other natural disasters. 3. Just and Reasonable Rent Increase Based on a financiat review of the Net Operating In come (NOl) for a property when the automatic adjustment prescribed by the RSO does not provide a just and reasonabte return on the rental unit or units. (Refer to the Just and Reasonabte Regutations issued by the Rent Adjustment Commission.) 4. Primary Renovation to major buitding systems which require a permit such as, but not limited to, central heating/air conditioning, water and sewage piping, wiring in side waits, elevators, or reinforcement of the buitding structure. It also includes work that is undertaken to abate hazardous materials such as lead-based paint or asbestos. Re quires a Tenant Habitability Plan (THP) accepted by the Department in advance of com mencement of work. RENT LEVEL AFTER A VACANCY Th allowabte rent level after a vacancy depends on the reason for the vacancy. The R5O pro ides that the rent may be raised to any amount upon re-rental if the vacancy resulted beause: ThE any ten the tenant voluntarily vacated the unit. the tenant was evicted for non-payment of tegat rent. the tenant was evicted for violating the terms of the rental agreement and failing to cure :he violation. RSO requires the rent to a new tenant to remain the same, if the vacancy occurred for other reason. Examples of circumstances under which the landlord MAY NOT raise the upon re-rental include the following: 3

49 ; ; Ls rg&es H0uSING community Investrert Denarrnen: Rent Stabilization Division Update JULY2016 SEISMIC RETROFIT PROGRAM The Los Angeles City Councit adopted the Seismic Retrofit Work Ordinance which became effective on February 12, This Ordinance limits the proportion of costs retated to mandatory seismic retrofitting that can be passed from owners to their tenants to 50% of the total cost of the work required by the Earthquake Hazard Reduction Ordinance fehro) effective November 22, Since renovation work may resutt in temporary or permanent disptacement of tenants, the Los Angeles Department of Building & Safety s plan check process requires a Tenant Habitability Plan (THP). A THP or THP Waiver is required to file an application for cost recovery of up to 50% of the total seismic retrofit work cost. Landlords may increase tenant rent up to $38 per month for 120 months upon approval by the Los Angetes Housing Additionat information regarding the Seismic Retrofit Ordinance: + Community Investment Department (HCIDLA). LOS ANGELES ICflOtflXUCMCTAKfl R HousvJr.coMMuNm( For the necessary steps to obtain permits including clearances and required documentation to initiate the retrofit, contact the Los Angeles Department of Buiding 201 & Safety: Soft-Story Retrofit Unit Office Hours N. Figueroa St., Suite 890 7:30 AM - (213) 482-SOFT (7638 9:00 5oft-storyretrofit@iacity.or 4:30 PM - Mon, Thu AM - PM - Wed For Tenant Habitability Plan and cost recovery applications, contact the Housing and Community Investment Department (HCIDLA): Tenant Habitability Program Unit Cost Recovery Applications 4:30 Tues, (213) (866) 557-RENT (7368) hcidla.code.seismic1acityor Ia. soiacit.oco & FM RSO Information: /hcidia.1acity.org/tenant-habitabilitv-proram /hcidta.tacitypg ANNUAL ALLOWABLE RENT ADJUSTMENT The annual altowabte rent increase for rentat units subject to the Rent Stabilization Ordinance (RSO) for fiscat year from July 1, 2016 through June 30, 2017 is 3%. (LAMC A.6) TENANT RELOCATION ASSISTANCE AMOUNTS No-fault evictions under the RSO require the payment of relocation assistance. The amount of relocation assistance depends on whether the tenant is an Etigible or Qualified tenant, the length of tenancy, and the tenant s income. Relocation Assistance Amounts - July 1, 2016 through June 30, 2017 Eligible Tenant Qualified Tenant Note: Qualified Tenants with Than $ $ tenants 3 Years ,650 include Less senior Tenants with or More $ $ citizens All Years 10,400 19,700 3 Income Below 80% of Area Median $ $ and disabled tenants as other tenants are Ellaible 10,400 19,700 well tenants. Income Evictions In Mom & Pop for Owner Occupancy $ $ 7,600 15,300 as households with a minor dependent Properties child. P.O BOX LOS ANGELES. CA RENT $ HUP:IIHCIDLAiACITY.ORG

50 2016 HUD Low Income Limits for Los Angeles 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person $48,650 $55,600 $62,550 $69,450 $75,050 $80,600 $86,150 $91,700 A lower retocation assistance payment is required for evictions for owner occupancy for Mom and Pop properties. Mom and Pop tandtords may own no more than four residentiat units and a single-famity house in the City of Los Angeles. (LAMC E.) These landlords may pay a tower amount in order to evict for occupancy by the Landtord, or the landtord s spouse, chitdren, parents, grandparents, or grandchitdren. Use of this provision is Limited to once every three years. A Landlord may appeat a tenant s etigibility for higher levels of relocation assistance based on the tenant s income, age, tength of tenancy, family status or disabitity. The fee to file an appeat is $200 per rental unit to cover the administrative costs of the appeat hearing. (Ordinance ) TENANT RELOCATION ASSISTANCE FEES The foltowing fees must be paid by landtords seeking to evict tenants from RSO units for no-fault reasons, as weti as tandtords who issue a Notice to Terminate Tenancy for y rental unit in the City of Los Angeles for a condo conversion or demolition. Through the Tenant Relocation Assistance Program, the HCIDLA contracts with a relocation services consultant to assist disptaced tenants in retocating to new housing. No-fault evictions in RSO units also require the filing of a Landtord Declaration of Intent to Evict with the HCIDLA. TENANT RELOCATION ASSISTANCE PROGRAM FEES EFFECTIVE JULY 1, 2016 AMOUNT TYPE OF FEE REQUIRED FOR TYPE OF EVICTION PER UNIT Relocation Services Application Fee ($447) Mandatory Relocation Services No-fault evictions in RSO units. $447 + $62 in Order to evict an $509 Eligible tenant Evictions from ANY Los Angeles rental unit for condo Administrative Fee ($62) for no-fault reasons. conversions or demolitions, regardless of the rental unit s RSO status. Relocation Services Application Fee ($718) Mandatory Relocation Services No-fault evictions in RSO units. $718 + $62 in order to evict a $780 Qualified tenant Evictions from ANY Los Angeles rental unit for condo Administrative Fee ($62) for no-fault reasons conversions or demolitions, regardless of the rental unit s RSO status. Evictions from ANY Los Angeles rental unit Demolition Monitoring for condo 545 Clearance conversions of a demolition permit. or demolitions, Administrative Fee regardless of the rental unit s RSO status or whether the unit is occupied. Appeal of tenant relocation amount No-fault evictions in RSO units. Relocation Assistance Dispute in order to have $200 Evictions from ANY Los Angeles rental unit Resolution Fee the matter adjudicated for condo conversions or demolitions, by a Hearing Officer. regardless_of the_rental_unit s_rso_status. Owner Occupancy and Filing Landlord Declaration in order Resident Eviction Manager for occupancy by $75 to evict owner, family or Eviction Administrative Fee tenants a resident in RSO units. manager in RSO units. P.O BOX 17280, LOS ANGELES, CA RENT

51 , I - I FREE LANDLORD/TENANT WORKSHOPS Don t miss this year s FREE landlord/tenant workshops. A different topic is offered each?ierdar month, and workshops are presented at severat times and tocations throughout the City LANDLORD-TENANT INFORMATIONAL 3550 I WILSHIREVALLEY SOUTH GARLAND 690KNox 1200W.7 WORKSHOP SCHEDULE & ToPics I1L, Sr. Sr. PLEASE CALL (213) TO RSVP. 2 I WEST L.A. EN EsPAoL GARLAND VAN Nuvs CORINTH 1200 W.7 is FLOOR BL. Av. ST. 3 Rooi 200 LAsT TUESDAY WEDNESDAY WEDNESDAY THURSDAY 10:00AM 6:30PM 4 THURSDAY 2:00 PM : I JULY: RSO BAsIcs &UPDATE5 JULY13 JULY 12 JULY20 AUGUST: OvERvIEw o RSO ALLOWABLE RENT INCREASES & AUG.10 AUG. 9 AUG.17 ADJUSTING Low RENTS SEPTEMBER: ELLIs EVICTIONS & REQuIREMENTs FOR SEPT. OCTOBER: SEMINAR ON FAIR HOUSING & PETS IN RENTAL HOUSING I Ssr 14 I 1 0:30 AM TUESDAY 6:30 PM 1030AM JULY JuLY JULY28 Ocr. Ocr. 12 Ocr. 19 Ocr. 20 OCT.27 NOVEMBER: SEIsMIc RETR0FITPA5S-rRouGws Nov.9 Nov.8 Nov.16 Nov.17 1 WISHIRE SOUTH VALLEY 3550 WcsH,a 600 GARLAND 6640 SPEcIAL DECEMBER ScHEDULE 15FcooR 1 1 THURSDAY 2* EL. KNOX Sr. 1200W. 7 Sr. (AN Nuvs Bc. 2 THURSDAY TUESDAY 6:30 PM TUESDAY ] 2:00 PM 10:30 AM 10:30 AM DECEMBER: RSO&SCEPExEMPTI0NS Dc.8 DEc.6 DEC1 DEC I SEPT. SEPT.21 REM0VINGRENTALUNITSFROMTHEHOUSINGMARKET I AuG. j AUG J j SEPT. 27 OCT. 25 Nov. 22 AUG.25 SEPT. 29 DROP-IN SESSIONS OFFERED MONTHLY Drop-In sessions to hetp tandlords and tenants with apptications and RSO questions are offered on the first Tuesday of the month, assisting with questions such as catculating the annuat attowabte rent increase, interest on tenants security deposits, filing Declarations of Intent to Evict, removing properties from the rentat housing market, or filing complaints. To reserve, please cal.t (213) at least one day in advance and let us know the issue you need hetp with. FAIR HOUSING RIGHTS CLINICS Clinics to assist with questions regarding disabitity and housing discrimination in rentat property are held at HCIDLA s West Regionat Office on the 2 Tuesday of every month from 10:00 a.m. to 12:00 noon and at the CD-9 Office located at 4301 Central Ave., Los Angeles every Tuesday and Thursday from 9:00 a.m. to 12:00 noon. JOIN OUR LIST To sign up for our e-newstetter mailing List, enter your emait address at A variety of RSO buttetins and are available for downtoad at http: /Ihcidla.tadty.org. CentraL fvlilshirel Regianat Office EaSt Regbooat Office South RegionaL Office 3550 WILSifiRE BLVD., 15 floor 2215 N BROADWAY 650 KNOX 5T., SuIte 125 LOS AJ1GftES, CA LOS GELf5, CA ANGEfL5 CA CD-S Satellite Office West Regional Office North (Vattevi Reona1 Office 84755, VEPMQff AVE., 2 Ftoor 1645 Corinth AVE., Suite VAN NtF 5 BLVD. Eric Garceti, Mayor LOS ANGELES, CA LOS ANGElS, CA VAN NU3, CA T1l U. Cevantes3 Geserat Maaager P.O. BOX ANGELIS. CA ( RENT FBTP://HCIDLA.LACflY.ORG

52 Os Anrees HOUSlNGCOMMUNITY Inv!rnent OeDartnet I ALLOWABLE RENT INCREASES The Rent Stabilization Ordinance (RSO) which became effective May 1, 1979, was designed to protect tenants from excessive rent increases white allowing tandtords a reasonable return on their investments. The following information reviews the allowable rent increases for those rentat units subject to the Ordinance. AUTOMATIC ADJUSTMENTS The rent for a rentat unit may be increased without the permission of the Rent Adjustment Commission (RAC) or the Rent Stabitization Division under the following circumstances by: 1. Three percent (3%) to eight percent (8%) every 12 months in accordance with the annual rent increase percentage, which is based on the Consumer Price Index (CPI) average for the twelve (12) month period ending September 30 of each year. The annual adjustment may be applied once each year. The 3% to 8% annuat increase is NOT cumutative or retro active. THE CALCULATED ANNUAL INCREASE PERCENTAGE EFFECTIVE JULY 1, 2015 THROUGH JUNE 30, 2016 IS THREE PERCENT (3%). For allowable rent increase amounts in previous years, refer to the table on the next page. This annual increase may be im posed onty if twelve (12) months or more have elapsed since the tast such rent increase. 2. An increase of 3% to 8% of the security deposit is allowed at the same time and by the same percentage as the annuat rent increase. 3. An additional 1% for gas and 1% for electric service into the dwelling unit when service is provided by the landlord. 4. Nineteen percent (19%), ptus 2% if the landlord provides the gas and electricity, for a rental unit which has not had a rent increase since May 31, Thirteen percent (13%), plus 2% if the tandtord provides the gas and electricity, for a rental unit which has not had a rent increase since May 31, Ten percent (10%) for each additional tenant exceeding the number of tenants atlowed by the original rental agreement. Owners must notify the tenant/s of the rent increase with in 60 days of having obtained actual or constructive knowledge of the new tenant. A cor 6640 VAN NUYS BLVD N. BROADWAY AVE. 690 KNOX ST., SUITE 125 VAN NUYS, CA LOS ANGELES, CA LOS ANGELES, CA WILSHIRE BLVD S. VERMONT AVE CORINTH AVE. FLOOR 2 FLOOR SUITE 104 LOS ANGELES, CA LOS ANGELES, CA LOS ANGELES, CA l5 CITY OF LOS ANGELES P.O. BOX 17280, LOS ANGELES, CA RENT

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54 A Human Relations Commission Rent Stabilization Priorities (2016) Prioritized by the Commission on 1/21/16 as follows: 1) Rental Registry Program 2) Just Cause Termination Ordinance for Chapter 6 Tenants 3) Re-Evaluate 10% Maximum Allowable Rent Increase 4) Tenant Protection or Anti-Harassment Ordinance 5) Legal Resources Details A. Rental Registry Program Elements: 1. Pro-active enforcement and scheduled inspections a. via Code Enforcement in partnership with landlords and tenants b. via municipal code changes and educating landlords and tenants regarding follow-through 2. Self-certification that building and units meet minimal health, safety and livability standards a. via Code Enforcement in partnership with landlords 3. Increasing threshold and fine amounts related to substandard conditions and repeat violations 4. Maintaining a publicly accessible list of buildings with code violations B. Just Cause Termination Ordinance for Chapter 6 Tenants What: No-Cause Termination of Tenancy is a state code; cities can institute a local municipal code that instead requires just-cause reasons for termination of tenancy. Why: Absent just-cause termination, tenants can be asked to vacate their unit with a 60- day notice from their landlord. Now: City of Beverly Hills has a no-cause termination of tenancy clause; landlords can issue a 60-day notice to vacate for no reason. Pro: Increases tenant protections and reduces fear of termination or retaliation. Con: Infringes on individual rights of landlords. C. Re-Evaluate 10% Maximum Allowable Rent Increase What: Rent stabilization ordinances establish a maximum allowable rent increase Why: Regulating rent increases prevents spikes in housing costs and potential displacement of tenants. Now: City of Beverly Hills Chapter 6 tenants have a 10% annual maximum allowable rent increase. Tenants report ongoing increases while the building is not being maintained or improved. Pro: Moderates housing cost increases; reduces displacement and increases community continuity. Con: Restricts influence of market pressure on housing costs. D. Tenant Protection or Anti-Harassment Ordinance What: Tenant protection ordinances identify specific behaviors that landlords are prohibited from using to compel a tenant out of their housing. Why: Tenant protection ordinances creates an additional layer of rights for tenants to prevent them from being bullied out of their housing. Now: City of Beverly Hills does not define or restrict use of such behaviors by landlords.

55 Pro: Increases tenant protections. Con: Infringes on individual rights of landlords. E. Legal Resources What: Legal services and resources are required by tenants and landlords to address civil issues. To support equal access to legal rights and resources, cities will secure non profit legal services for income-eligible residents Why: Often older adults on fixed incomes, families with single heads of household and individuals or are disabled need are unable to afford legal services for civil issues. Now: City of Beverly Hills provides two hours of complimentary mediation services to tenants and landlords which can be leveraged in lieu of filing a case in court. Pro: Ensures access to legal representation across socio-economic status. Con: City monies are required to fund this service. F. Relocation Assistance What: Relocation assistance is a set amount paid by the landlord to the tenant when the tenant is removed from their unit at no fault of their own. Why: Relocation assistance is a financial support to tenants when their housing is removed. Now: Beverly Hills Chapter 5 tenants are eligible relocation assistance; Chapter 6 tenants are not eligible for relocation assistance. Pro: Adjusts existing relocation assistance to current market rates. Con: Incurs costs to landlord. G. Re-Evaluate Chapter 5 Tenant Improvement Pass Through What: Landlords may pass through a capital expenditure surcharge to Chapter 5 tenants when a permanent improvement or renovation to a building has been completed. Why: An improvement pass-through can incentivize a landlord to improve a building because the full cost of the improvement is not shouldered by the landlord. Now: A maximum capital expenditure surcharge of 4% of the base rent (amortized over 60 months) is permitted for Chapter 5 tenants when a landlord has made a permanent improvement or renovation to the building. An improvement pass-through cannot be levied on Chapter 6 tenants. Pro: Mote equitably distributes capital expenditures between landlords and tenants. Con: Increased costs will be shouldered by long-term Beverly Hills residents, likely older adults on fixed incomes. Code Enforcement advised the Commission on the volume of incoming complaints as follows: Total complaints received by Code Enforcement in 2015: 1, community-generated complaints 0364 relate to substandard building or property maintenance complaints o (le. 1/3cd of complaints from community relate to substandard conditions) 290 cases generated proactively by Code Enforcement staff while in the field 200 City staff-generated complaints

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57 2017 ANNUAL RENT REGISTRY FORM RENTAL UNITS SUBJECT TO THE RENT STABILIZATION ORDINANCE FORM RR17B HO US NO + Co M MU N IT V nisstrnt Departlnet Mail Form to: CITY OF LOS ANGELES - RENT REGISTRY SECTION P.O. BOX HCIDLA LOS ANGELES, CA PROPERlY INFORMATION APN: 10 DiGITS ADDRESS: HOUSE OUMBER StREET tiaf E OtE STATE YOUR INFORMATION (NAME OF PERSON FiLLING OUT FORM] FIRST NAME LOST NAME AREA CODE & PHONE NUMBER t ADDRESS ) The l.os Angeles City Council enacted the Rent Registry Ordinance t#184529) effective October 4, This Ordinance provides that landlords must provide rent amount and tenancy Information for every rental unit subject to the Rent Stabilization Ordinance (RSO) on a form pre scribed by HCIDLA. This information shall be submitted annually by the last day of February of each year. Registration is complete only when all outstanding registration fees have been paid and all required rental amount and tenancy information including emergency contact information is provided. For questions regarding this form, please call (866) 557-RENT (7368) or visit registerlarent.org. I PART1 EMERGENCY CONTACT INFORMATION (Current contact information required per L4MC B.) FIRST NAME LOST NAME HOUSE NUMBER STREEt NAME COY STATE ZIP CODE AREA CODE & PHONE NUMBER t ADDRESS ) (QpEon&) Total Number of Units on Property: I FORM CONTINUED ON BACK SIDE Complete This Form Online at registert.arent.org or Mail to P.O. BOX Los Angeles, CA

58 - - 1= Annual Rent Registry Form Assessor Parcel Number (APN): FORM RR17U Service Year 2017 Rental Unit Address #1 House Number Street Name Unit Number #of Bedroams Move-In Date MM/YY Current Monthly Rent Effective Date of Last Rent Increase MM/YY Utility Paid by Landlord LI Gas I LI Electric House Number Utility Paid by Landlord U Gas House Number Gas House Number Electric Utility Paid by Landlord LI Electric Utility Paid by Landlord Parking Included in Monthly Rent flyes I flno Rental Unit Address #2 Street Name LIves I flno Street Name Seect One / H / R5O Exemption Application Submitted to HCIDIA, If Applicable (checkonly one) I fl Ti Owner OccuDied LI 55 Vacant Q T3 No Rent Collected Other RSO Exemption Unit Number # of Bed rooms Select One: Move-In Date MMIVY Current Monthly Rent RSO Exemption Parking Included Application Submitted to HCIDLA, in If Applicable (chl ck only one) Monthly Rent In Ti Owner Occupied LIves I ONo 0 T3 No Rent Collected Rental Unit Address #3 Street Name Parking Included in Monthly Rent Rental Unit Address #4 Parking Included in Monthly Rent LI Gas U Electric U Yes LI No I j Rental Unit Address #5 Unit Number # of Bed rooms Select One: I H fl 55 Vacant LI Other RSO Exemption Move-In I Current Date Monthly Rent MM/YV R5O Exemption Application Submitted to HCIDLA, If Appi icable (ch ck only one) LI Ti Owner Occupied LI 55 Vacant LI T3 No Rent Collected 0 Other RSO Exemption Unit Number # of Bed rooms Select One: I Move-In Date MM/YY $ Current Monthly Rent RSO Exemption Application Submitted to HCIDLA, If AppI cable tch ckonly one) LI Ti Owner OccuDied fl 55 Vacant T3 No Rent Collected Other RSO Exemption U LI I $ Effective Date of Cast Rent Increase MMJYY I Effective Date of Last Rent Increase MM/YV I Effective Date of Last Rent Increase MM/YY House Unit #of Move-In EffectiveDateof Current Street Name Bed- Date Last Rent Number Number MonthlyRent rooms MM/YY increasemm/yy Select One: / $ I. RSO Exemption Application Submitted to HCIDLA, If Applicable. Parking Included in Utility Paid by Landlord (check only one) Monthly Rent Ti Owner Occupied 55 Vacant U [I Gas :: p Electric 0 Yes 0 No I Q T3 No Rent Collected Other RSO Exemption I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. I Signature Date of Complete This Form Online at registerlarent org or Mail to P 0 BOX Los Angeles, CA

59 The Los Angeles City Council Los Angeles Housing + Community Investment Department 2017 Annual Rent Registry Form Instructions enacted the Rent Registry Ordinance (#184529) effective October 4, This Ordinance provides that landlords must provide rent amount and tenancy information for every rental unit subject to the Rent Stabilization Ordinance form prescribed only when all contact information by HCIDLA, This information shall be submitted annually outstanding registration fees have been paid and is provided. all by the last day of February of each year. Registration (RSO), on a is complete requited rental amount and tenancy information including emergency jijstructlons: registerlarent.org. To If ensure accuracy and avoid any delay, we strongly recommend this form be completed online at you choose to mail in this form, please complete the form by writing within the text box and use only black processing. ink to help ensure legibility. Forms that have written text outside the text or check box may be delayed in This form consists of PART 1 - property PART 2 - if 3 parts: Provide emergency contact information for the property. different than the number provided on the form. Rent amount and tenancy information must be completed for each rental unit. If applicable, please indicate the number of units on the If additional Rent Registry forms are needed, please make copies of the back of this page. For each rental unit, please provide complete House Number, Street Name, Unit Number one-time Electric) Paid is included (if RSO, SCEP by in will A is exemption selected signature PART 3 - applicable), Number of Bedrooms, Move-In Date, Current Monthly Rent Amount (do not include temporary or or other surcharges or fees), Effective Date of Last Rent Increase. the Landlord (this does not include payment for Current Monthly Rent Amount. Indicate the bottom right hand corner of this section. if a RSO be cross-referenced with the Exemption Application. required on each Rent Registry form. Please a If applicable, select Utility Services (Gas common furnace boiler or hot water heater). Indicate Exemption Application has been submitted to fill in & if HCIDLA. The type of Parking the number of total Rent Registry forms submitted on Rent Reistry Form 0.. Why did I A. You received subject to the be complete. get this form? this RSO on form because your property an annual basis and received Rent Registry Form Frequently Asked Questions is subject to the by HCIDLA R5O. The Rent Registry form must be completed for every rental property on or before the last day of February in order for your annual registration to 0. What happens if! do not submit the form or only provide partial information? A. For 2017, if you do in be withheld in or a Certificate that has been issued Certificates will not submitted not not submit or complete the Rent incomplete, prior years. Since Registry form, you will this amendment to the the first year of the Rent Registry Rent Certificate will be not be issued. a RSO was approved by City Council at in 2018, if receive implementation. However, beginning Provisional Rent Certificate instead of the regular Rent the end of 2016, Registration the Rent Registry form is Q. What if I A. You am a new Landlord and do not know should answer each question to the best information and dispute discrepancies 0.. What if I A. login Updates to the information that by submit my Rent Registry form to Rent Registry is form will all of the answers to the questions regarding each tenancy for each rental unit? your knowledge. Once the form providing supporting documentation. HCIDLA and later realize I is submitted to need to update information? only be processed online at reisterlarent.org. used when you pay your registration and SCEP fees online. To HCIDLA, tenants will access your information, you be able to view the will need the same 0. I A. In received be issued a Provisional Rent Certificate and want to know how 2017, either type of Certificate serves 2018, in Beginning in if as evidence of the Rent Registry form I can obtain registration and permits is not submitted or a a is non-provisional Rent Certificate? landlord to collect rent. incomplete, a Provisional Registration Certificate Certificates will will only not be issued. 0. Who do A. Call I contact for assistance regarding the Rent Registry form? our Hotline at (866) 557-RENT (7368) or visit our website registerlarent.org. [ Complete This Form Online at registerlarent.org or Mail to: P.O. BOX Los Angeles, CA TURN PAGE OVER FOR ADDITIONAL BLANK RENT REGISTRY FORM

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61 CBH - City Council Informal Meeting 09704/2007 CITY OP BEVERLY HILLS STAFF REPORT Meeting Date: September 4, 2007 To: Honorable Mayor & City Council From: George Chavez, City Building Official David (elton, Building Inspection Manager Subject: Proposed Rental Housing Inspection Program Attachments: Staff Report Dated November 7, 2006 INTRODUCTION This memo is intended to provide an update to the City Council on the progress of the proposed Rental Housing Inspection Program and seek feedback and direction with regard to moving forward with an ordinance including the proposed changes. DISCUSSION Last November, the department presented the City Council a progress report on the proposed systematic Rental Housing Inspection program (Staff Report Attached). The proposed program mimicked estabished programs found locally and throughout the State. In an effort to properly shape the program, staff conducted multiple public outreach presentations which included invitations to: Apartment Owners Association Rent Control Association Realtors Homeowners Associations The Beverly Hills Chamber of Commerce Government Affairs Committee Participation and feedback from the public outreach presentations varied. The apartment owners association provided the most feedback based on experiences they have had with other inspection programs. This particular meeting was held in Febwary and resulted in gaining important perspectives from the property owners. Unfortunately, Page 4 of 36

62 Meeting Date: September 4, 2007 CBH - City Council Informal Meeting - 09/04/2007 only two members of the public showed up at the outreach meeting arranged for tenants and the homeowners groups. In summary, public comments and concerns voiced are as follows: Concerns with Cost a Equity (good buildings should not need systematic inspections) Tenant s privacy Added Bureaucracy a Negative experience with other programs Positive nature of Self Assessments a Education for Landlords & Managers is key As a result of comments and concerns raised at public outreach meetings, staff went back and reshaped the propàsed program addressing concerns raised, while still keeping in mind the goal of preserving and maintaining the City s aging rental housing stock to standards Beverly Hills residents expect. Instead of systematically inspecting the interiors and exteriors of the over 8700 units, the revised proposal relies on a unique approach which focuses on the following Six elements: Proactive Approach Targeting the Problem r Education Self-Assessment Checklist (Affidavit) Systematic Inspection For Problem Properties I Appeal! Hearing Process exterior Random Complaint Inspection Inspection Driven Inspection Bi-Annual Housing Inspection No Problem Problem (5 years) Report Verified Filed Page 2 of 3 8/27/20P%ge 5 of 36

63 Meeting Date: September 4, 2007 CBH - City Council Informal Meeting - 09/04/ Education- Owners and Managers will be provided cheàklists along with information related to State Housing Codes and Municipal Code standards so there is a clear understanding of program expectations. 2. Self-Assessment- Owners or managers will simply fill out a self-assessment checklist and submit it to the department on an annual basis. Included on this checklist will be questions related to the interior and exterior of the building including the Fire Department requirements. Owners will be required to sign an affidavit. 3. Exterior Inspections- Staff will inspect the exterior of all multi-family properties and verify conditions submitted on the checklists. (The Fire Department currently inspects apartment buildings with 3 or more units). 4. Random Interior Inspections- A small percentage of the units city-wide will be inspected to verify the interior conditions stated on the checklist. This will only be done by invitation of the tenant unless a hazardous condition is observed, 5. Complaint Driven Inspections- Staff will continue to respond to tenant complaints. 6. Systematic Inspections- If a building is verified to be substandard and is not repaired in a reasonable amount of time, it will be placed on a mandatory systematic inspection program. This measure includes a process to allow a property owner an opportunity to appeal their case to an independent hearing officer. In an effort to reduce ongoing costs, workload associated with enforcement in these cases will be outsourced to a third-party inspection company with all costs borne by the owner of the problem property. In summary, the proposed Rental Housing Inspection Program will proactively enforce existing property maintenance and Housing & Fire Codes without creating new codes. Efficiencies will be realized by consolidating efforts by the Fire Department and Building and Safety Division. Building and Fire inspections and checklists will be consolidated eliminating duplicate efforts. These efforts will free up Fire Department staff allowing them to focus on other areas of Public Safety getting involved only when necessary. FISCAL IMPACT To establish a program based on the above recommendations, it is estimated that $200,000 in staffing costs will be necessary to support this program. This is $390,000 less than the program originally proposed last year. Verified substandard properties will be charged separately and directly for the enforcement time and efforts spent on them. RECOMMENDATION Staff recommends an ordinance be developed establishing a Rental Housing Inspection Program. Vince Bertoni Approved By Page 3 of 3 8/27/20P ge 6 of 36

64 .CBH - City Council Informal.Meeting - 09/04/2007. o BvEILY rnlls STAFF REPORT Meeting Date: November 7, 2006 To: Honorable Mayor & City Councfl From: David Yelton, Building Inspection Manager George CIavez, City Building Official i Subject: Rental Housing Inspection Program Attachments: 1. Exhibits A & B INTRODUCTION This memo is intended to provide an update to the City Council on the progress of.uliding & Safety s Rental Housing Inspection Program (The Program) approved as part of the Community Development s 2006/2007 department budget goals. The Program is intended to provide a proacbve approach to property maintenance & habitability standards targeted at the aging multi-famlty housing stock consisting of over 8,700 rental units. Exhibit A (attached) illustrates some Interesting statistics related to rental housing within the city. DISCUSSION Currently, Code Enforcement staff deal with rental housing issues on a complaint basis. The current process is purely reactive and adopted housing codes are minimum standards dealing with basic health and safety issues. The current process seeks and generally achieves voluntary compliance, however, some cases require stepped up enforcement measures requiring significant staff time and occasionally requiting the involvement of the City Prosecutor s Office. Again, our current approach Is complaint driven and the mere fact Code Enforcement staff Is asked to respond to a complaint often places a tenant in an awkward and Pagefof36

65 - CBH City Council1nformal Meeting - O9/O4t2OO7:: sometimes adversarial position with managers andtor property owners. The Program being developed is comprehensive, systematic with a proactive approach largely eliminating the for to contact us in most cases. It should noted than housing inspection programs not unique and can be found throughout the State (Exhibit B) The Program need tenants are The systematic housing inspection program is being developed to that all residential multi-family rental dwelling units meet and exceed minimum habitability A primary goal of The Program is to the on-going quality, maintenance and safety of the City s aging mutti-family housing. Once The Program is initiated, rental housing stock will routinely Inspected and the quality of life for in the city will remain and in many improve. This will be achieved by conducting systematic inspections of buildings and individual dwelling units on a two to three year basis. standards. renters the constant The Program anticipates the following: be ensure cases, these be ensure tmproved housing consistent with Beverly Hills inspection of all multi-family buildings with two or more units. Systematic inspections with advance notices to property owners, managers and allowing plenty of time to schedule and prepare fat inspections. Staff dedicated solely to rental housing Incentives for well maintained buildings Certificate of Tenancy s issued and valid until for two (inspection period). tenants resources Program Benefits codes sent issues. standards. years Preserving a high quality of life for renters in the City of Beverly Hilts. Proactive vs. Reactive city services. o Systematic inspection approach will or eliminate landlord-tenant animosity by initiating complaints. o Preserve and extend the usable life of city s existing rental housing stock. Safer, healthier and more comfortable multi-family buildings. a Multi-family neighborhoods will improve. Reduce demand for complaint-driven enforcement services. o Dedicated Housing Inspection staff wilt up Code Enforcement Officers to deal with other code enforcement throughout the City. Substandard housing units will be proactivety identified and rehabilitated. Illegal units will be identified and eliminated. Properties will be checked to City Business Tax is current. caused Community Outreach tenants ensure reduce code issues free As part of the Program development, staff will notify and invite property owners, associations and members of the community to meetings in effort to properly Program by seeking stakehotders input. it is anticipated the community outreach will be extended to but not limited to: the an that tenants, shape Page 8of36

66 * CBH City Council Intormal Meeting - 09/04/2007 Apartment Owner s Associations Board of Realtors Rent Control Association Home Owners Associations ever1y HIls Chamber of Commerce In addition to seeking input from Community groups and associations, staff will present information to the Human Relations Commission to gain their feedback and perspective. Implementation Timeline The Program implementation tirdeline is anticipated to be as follows: o Community Outreach November-December 2006 OrdInance Development December2006 City Council January-February 2007 Recruitment March-May 2007 Program Implementation June 2007 FISCAL IMPACT The Program is being developed to be sei-sustainabte through funding paid for by building owners on a cost per dwelling unit basis, Preliminary estimates suggest the * program will cost approximately $590,000 annually which translates to $6 per/unit, per/month for a bi-annual Program. RECOMMENDATION Staff is providing a progress report at this time. Once outreach Is complete, staff will prepare a draft housing inspection ordinance and return to the City Council in January 2007 to provide an update and seek feedback. Should Proposition 90 pass today, this ptogram will be re-evaluated based on advice from the City Attorney. Mahdi Aluzri Approved By Page 9of36

67 - 3lorMore City Coui11nfotma1 Meeting 09tO4t2007. EXifiBIT A Dwell ingjitper Property Properties Percentage 2tolO I 1041 I 83% llto2o % 21to % 18 1% Unit Quantity Per Building C G3 E aq Q_ ) C -= c1 Li 2, a 2to to2o 21 to3o 31 or More Units Per Building 1922to 1930 L. T11I % tol9eo % 1951 to % 1971 to Present 2$ 2% Average Age ofapartment Buildings is 65 years old. 15% ofapattmenthousing was built between the yeats of 1935 & 1936 (191 Apartment Buildings) Page 10 of 36

68 Apartments Cfty CBH - Council Informal Meeting - 09/04/2007 6% of Apartment Housingwas bulltbefore (877 Apathiient Buildings) CITIES SURVEYED WITH HOUSING INSPECTION PROGRAMS Azusa AU Units Annual Lincoln Park All Units Annual City of Los Angeles All Units 5 Years County of Los Angeles All Units 4 Years Long Beach All Units Annual Montclair Apartments Voluntary Palmdaje All Units 3 Years Pasadena All Units 4 Years Riatto Apartments Annual Concord All Units 3 Years Berkeley All Units 3 Years Annual Sacramento San Francisco Apartments Annual Santa Ana Apartments Annual Page 11 of 3E

69 0) C, 3 (D U,

70 2007 Proposed Program to Address Rental Housing Targeting the Problem Proactive Approach 1 6 Education Exterior Random Systematic Inspection for Problem Properties 2 I Self-Assessment Checklist (Affidavit) Appeal! 4, Hearing Process Complaint I Driven Inspection Inspection Inspection Bi-Annuat Housing Problem Inspection (5 years) No Problem Verified *Cjtation issued; I property placed in Report Filed systematic program *2016 Addition

71 Attachment 6

72 RELOCATION FEE SURVEY Beverly Hills Chapter 5 tenants are eligible for relocation assistance if evicted for major remodel, use by landlord, demolition, condominium conversion or Ellis Act. Bachelor unit $2,000, Single unit $2,250, one or more bedrooms $3000, Senior citizens, handicapped or terminally Chapter 6 tenants no relocation fee structure. ill $5,000 West Hollywood Housing Unit Type Amount 0 Bedrooms $6,455 1 Bedrooms $9,114 2 Bedrooms $12, or More Bedrooms $16, 202 Note: West Hollywood has also established two exemption categories which offer a set fee 1. Qualified Tenant: If one of the tenants living in the housing unit from which tenants are displaced includes an individual who is 62 years or older, disabled, living with one or more dependent minors, terminally ill, or moderate income (120% AMI), they are eligible to the Qualified Tenant relocation fees. 2. Lower-Income Tenant: If one of the tenants living in the housing unit from which tenants are displaced includes a lower-income individual, as defined by CA Health and Safety Codes Section , they are eligible to the Lower- Income relocation fee schedule listed below Exemption Category Income Limit Amount Qualified Tenant $48,651- $72,977 $17,087 Lower-Income Tenant Up to $48,650 $21,517 Note: Fees are adjusted annually by the percentage change in the rent of primary residence component of the Consumer Price Index (CPI), from May to May and rounded to the neatest dollar. In the event the percentage change decreases, fees will remain at their current rate.

73 Los Angeles Length of Length of Income Below Evictions for tenancy: Fewer tenancy: 80% of Area Owner than 3 years 3 or more years Median Income Occupancy in Mom & Pop Properties* Eligible Tenant $7,900 $10,400 $10, 400 $7,600 Qualified Tenant $16,650 $19,700 $19,700 $15,300 Note: Qualified Tenants include senior citizens and disabled tenants as well as households with a minor dependent child. All other tenants are Eligible Tenants. * Mom & Pop landlords may own no more than four residential units and a single-family house in the City. Santa Monica Housing Unit Type Fee Amount 1 Fee if Household Includes a Senior/Disabled Individual/Minor Single $9,050 $10,350 One Bedroom $13,900 $16,000 Two or More Bedrooms $18,850 $21,650 Note: Fee is updated annually based upon the most current available Consumer Price Index (CPI) figure on July 1 of each year. RECOMMENDATIONS Increase Chapter 5 rent relocation fees based on the recommendations for Chapter 6 tenants below. Establish relocation fees for Chapter 6 Tenants based on a combination of some or all of the following: unit size, length of tenancy, and vulnerability of tenant (income, 62+ years, disability status, minor child living in unit). Based on unit size, relocation fees ranges from $6,455 to $10,350 for a single unit, $9,114 to $16,000 for a one bedroom, $12,277 to $21,650 for two or more bedrooms (depending on vulnerability of tenant) for the Cities of West Hollywood and Santa Monica. In Los Angeles, where relocation fees are based on length of tenancy and vulnerability of tenant, fees range from $7,900 to $19,700. Additional housing retention strategy to assist existing tenants: Redirect a portion of the City s Affordable Housing Trust Fund to support qualified tenant households in reducing rental burden.

74 f-p f-p 0.) (D f-p

75 ALLOWABLE HOUSING+COMMUNIT i Invest rnent partner RENT INCREASES Rent StabiLization BuLletin The Rent Stabitization Ordinance (RSO) which became effective May 1, protect tenants from excessive rent increases while altowing tandlords 1979, was designed to a reasonable return on their investments. The following information reviews the allowabte rent increases for those rental units subject to the Ordinance. AUTOMATIC ADJUSTMENTS The rent for Commission a (RAC) rental unit may be increased without the permission of the Rent Adjustment or the Rent Stabilization Division under the fotlowing circumstances by: 1. Three percent (3%) to eight percent rent increase percentage, which is every based on the Consumer Price Index (8%) the twelve (12) month period ending September may be apptied once each year. The active LMEDN NUA 3% to 8% months in accordance with the annual (CPI) average for of each year. The annuat adjustment annuat increase is NOT cumulative or retro 1UNE-2O174rHREE PER) For allowable rent increase amounts in previous years, refer to the table on the next page. This annual increase may be im posed only if twelve (12) months or more have elapsed since the last such rent increase. U LY An increase of 3% to 8% of the security deposit same percentage as the annual rent increase. is atlowed at the same time and by the 3. An for gas and provided by the landlord. additionat 1% 1% for electric service into the dwelling unit when service is 4. Nineteen percent (19%), plus rentat unit which has not had 2% a if the landlord provides the gas and electricity, for rent increase since May 31, a 5. Thirteen percent (13%), ptus rental unit which has not had 2% a if the landlord provides the gas and electricity, for rent increase since May 31, a 6. Ten percent (10%) for each additional tenant exceeding the number of tenants altowed the original rental agreement. Owners must notify the tenant/s of the rent increase with in 60 days of having obtained actual or constructive knowledge of the new tenant. A by cor 6640 VAN NUYS BLVD N. BROADWAY AVE. 690 KNOX ST., SUItE VAN NUYS, CA LOS ANGELES, CA LOS ANGELES, CA HflhiD Ir x 3550 WILSHIRE BLVD S. VERMONT AVE CORINTH AVE. Lçf 15TH FLOOR FLOOR SUITE 104 LOS ANGELES, CA LOS ANGELES, CA LOS ANGELES, CA CITY OF LOS ANGELES 2 P.O. BOX 17280, LOS ANGELES, CA RENT