ORDINANCE NO ( 2ND READING) AMENDING TITLE 17 ( RENT STABILIZATION) OF THE WEST HOLLYWOOD. and adopt Ordinance No ,

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1 CITY COUNCIL JUNE 2, 2014 CONSENT CALENDAR SUBJECT: ORDINANCE NO ( 2ND READING) AMENDING TITLE 17 ( RENT STABILIZATION) OF THE WEST HOLLYWOOD MUNICIPAL CODE INITIATED BY: CITY CLERK' S DIVISION Yvonne Quarker, City Clerk) j, STATEMENT ON THE SUBJECT: The City Council will waive further reading and adopt Ordinance No , amending Title 17 ( Rent Stabilization) of the West Hollywood Municipal Code. RECOMMENDATION: Waive further reading and adopt Ordinance No , " AMENDING TITLE 17 OF THE WEST HOLLYWOOD MUNICIPAL CODE" BACKGROUND: On May 19, 2014, the City Council introduced on first reading Ordinance No Ayes: Councilmember Duran, Councilmember Land, Councilmember Noes: Abstain: Absent: Prang, Mayor Pro Tempore Heilman, and Mayor D' Amico. None. None. None. CONFORMANCE WITH VISION 2020 AND THE GOALS OF THE WEST HOLLYWOOD GENERAL PLAN: Strategic Program of: Institutional This item is consistent with the Ongoing Integrity and the General Plan Goal to G- 2: Maintain transparency and integrity in West Hollywood' s decision- making process. OFFICE OF PRIMARY RESPONSIBLILITY: Office of the City Clerk EVALUATION: N/ A AGENDA ITEM 2. E

2 Ordinance ( 2nd Reading) Page 2 ENVIRONMENTAL SUSTAINABILITY AND HEALTH: N/ A FISCAL IMPACT: None

3 ORDINANCE NO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD AMENDING TITLE 17 OF THE WEST HOLLYWOOD MUNICIPAL CODE. THE CITY COUNCIL OF. THE CITY OF WEST HOLLYWOOD DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: Subparagraph ( 2)( f) of Municipal Code Section , Vacancy Rent Adjustments After January 1, 1999, Title 17,. Chapter , is amended as follows: f) The previous tenancy has been terminated upon the landlord' s termination or failure to renew a contract or recorded agreement with a government agency that provides for a rent limitation to a qualified tenant. In the event that a landlord terminates or fails to renew such contract or recorded agreement, the landlord shall not be eligible to set an initial rent for three years following the date of the termination or nonrenewal of the contract agreement. For any new tenancy established during the three-year period, the rental rate for a new tenancy established in the vacated dwelling unit shall be at the same rate as the rent under the terminated or non- renewed contract or recorded agreement with a governmental agency that provided for a rent limitation to a qualified tenant, plus any increases authorized under this title after the termination or cancellation of the contract or recorded agreement. i) In the event that a landlord cancels or opts not to renew a contract or recorded agreement as described in this subsection, the landlord must provide the affected tenant at least ninety days' written notice. For ninety days after the date on which the landlord' s notice to the tenant is effective, the tenant may not be charged more than the tenant' s share of rent as calculated in the contract or recorded agreement with the governmental agency. Notice under this subparagraph is effective when it is served personally on the tenant, or on the date that the notice is sent to the tenant via first class mail, postage prepaid. ii) Subsection ( f) does not apply to any new tenancy of twelve months' or more duration established after January 1, 2000, pursuant to the owner' s contract or recorded agreement with a governmental agency, that provides for a rent limitation to a qualified tenant, unless the prior vacancy was pursuant to a non- renewed or canceled contract or recorded agreement with a governmental agency that provides for a rent limitation to a qualified tenant as set forth in that subparagraph. Page 1 of 7

4 SECTION 2: Subparagraph ( 2)( g) of Municipal Code Section , Permissible Reasons For Permanently or Temporarily Terminating Or Refusing To Renew Tenancy, Title 17, Chapter , is amended as follows: g) Possession of two or fewer pets, if: 1) The tenant who is the guardian of the pet(s) is more than sixty- two years of age, or is disabled, or is living with HIV/AIDS; 2) The pet or pets are domesticated dogs, cats or birds weighing not more than thirty- five pounds; 3) The pet or pets do not interfere with the quiet enjoyment of the premises by other persons or otherwise constitute a nuisance or a threat to the health, safety or welfare of other persons residing in or having lawful access to the premises; unit; and 4) The tenant does not reside in a condominium 5) The tenant deposits with the landlord, upon demand therefor, an increase in the security deposit of not more than twenty- five percent of the existing security deposit, but in no event to exceed the maximum allowed by the California Civil Code. But a landlord may not charge an additional security deposit for an emotional support animal that the tenant' s treating physician or a psychiatrist has prescribed as medically necessary to help the tenant cope with his or her disability. Nothing in this section is intended to contradict any provision of state or federal law which also prohibits landlords from charging a security deposit for service animals such as seeing- eye dogs or signal dogs. SECTION 3: Subparagraph ( 2)( h) of Municipal Code Section , Permissible Reasons For Permanently Or Temporarily Terminating Or Refusing To Renew Tenancy, Title 17, Chapter , is added as follows: h) The violation of a covenant or obligation of a tenancy if the landlord has not provided the tenant with a written statement of the respective covenants and obligations of both the landlord and tenant prior to such alleged violations. Furthermore, such statement must have set forth the particular covenant or obligation subsequently alleged to have been violated. A landlord may not unilaterally change the terms of tenancy and then evict the tenant for violation of the added covenant unless the tenant has agreed in writing to the additional covenant. Page2of7

5 i) Notwithstanding any other provision of this section, a landlord may evict a tenant if he or she does not comply with either of the following: ( a) a change in tenancy required by a government agency charged with responsibility for ensuring public health, welfare, and safety in residential buildings; ( b) a change in tenancy relating to health or safety conditions at the premises that is required by an insurance company as a condition of providing coverage; or ( c) a change in tenancy required to comply with federal, state or local law. ii) Any notice of change of terms or conditions to a tenant based either upon a warning by a government agency or based upon a letter from an insurance company threatening withdrawal or nonrenewal of insurance is void unless there is attached thereto: 1) The warning or notice from the government agency, if the notice is based upon a warning or order issued by a government agency; or 2) The insurance company communication, which must be in writing and must be based upon written insurance company policy which must be cited in the letter, if the notice is based upon a threat of withdrawal or nonrenewal of insurance. SECTION 4: Municipal Code Section , Limitations on Changes of Terms and Conditions of Tenancy, Title 17, Chapter , is added as follows: Limitations on Changes of Terms and Conditions of Tenancy. After the inception of the tenancy, a notice of change of terms and conditions of tenancy, except for notices of an increase in the amount of rent which is legally due and payable, must be expressly agreed to by the tenant. Such agreement must be in writing, signed by both parties, and the tenant must have knowingly consented to any change to the original lease or month- to- month agreement. A landlord may not unilaterally change the terms of tenancy and then evict the tenant for violation of the added covenant unless the tenant has agreed in writing to the additional covenant. The provisions of this paragraph apply to a change in the terms and conditions of tenancy, including the imposition of a rule or regulation, prohibiting smoking pursuant to the authority of California Civil Code Section ( c) or otherwise. This requirement that the tenant must consent in writing to notices of changes of terms and conditions of tenancy does not apply to notices about noise, failure to control pets, or other similar conduct which disturbs the quiet enjoyment of other tenants at the property. For purposes of this paragraph, smoking, by a tenant does not in and of itself disturb the Page3of7

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

7 documentation must be submitted to the Department. The exemption status shall only be valid for a maximum of 12 months on the next year's registration fees. SECTION 9: Subparagraph ( b) of Municipal Code Section , Exempt Property, Chapter , is amended as follows: b) Qualifications for Exemptions. In order to qualify for an exemption pursuant to subsections ( a)( 2), ( a)( 6), ( a)( 8), ( a)( 9), ( a)( 14) and a)( 15) of this section, an owner of exempt units shall obtain a certificate of exemption pursuant to Commission regulations; except a certificate shall not be required in order to exempt rooms rented to boarders. An application for an exemption shall be filed upon a form prescribed by the city and shall be accompanied by payment of a fee as determined after December 2, 1987, by resolution of the City Council. The Commission shall adopt regulations pursuant to Section governing the monitoring and terminations of exemption certificates for units which undergo a change of use or status. SECTION 10: Subparagraph ( 1) of Municipal Code Section , Permissible Reasons For Permanently or Temporarily Terminating or Refusing to Renew Tenancy, Title 17, Chapter , is amended as follows: 1) Nonpayment of Rent. The tenant has failed to pay the rent to which the landlord is lawfully entitled. Other than rent paid in advance at the beginning of the tenancy, rent is due and payable on the date specified in the rental agreement, provided that the rental due date is a day within the term, whether the term be by the day, week, month, quarter or year. When a landlord and tenant enter into an agreement for the provision of any housing service which was not part of the original terms of the tenancy, any monies paid pursuant to that agreement shall not be considered rent, unless otherwise permitted by this title. Neither the refusal of a tenant to enter into such an agreement, nor the breach of such agreement shall be grounds for termination of the tenancy. SECTION 11: Subparagraph ( d) of Municipal Code Section , Remedies, Title 17, Chapter , is amended as follows: d. Any person, including the City, may enforce the provisions of this title by means of a civil action. Any person or entity violating any of the provisions of this title is liable for each and every such offense for actual damages suffered by the aggrieved party, or for statutory damages in the sum of one thousand dollars ($ ), whichever is greater, and Page 5 of 7

8 for punitive damages. The prevailing party may also recover such attorneys' fees and costs as may be determined by the court. SECTION 7. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of complement jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect. SECTION 8. The City Clerk shall certify the adoption of this ordinance. PASSED, APPROVED AND ADOPTED by the City Council of the City of West 2nd held. this day of June, 2014 by the following vote: Hollywood at a regular meeting AYES: Councilmember: Duran, Land, Prang, Mayor Pro Tempore Heilman and Mayor D' Amico. NOES: Councilmember: None. ABSENT: Councilmember: None. ABSTAIN: Councilmember: None. JOHN D' AMICO, MAYOR ATTEST: YVONNE QUARKER, CITY CLERK Page 6 of 7

9 STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) CITY OF WEST HOLLYWOOD ) I, YVONNE QUARKER, City Clerk of the City of West Hollywood, do hereby certify that the foregoing Ordinance No was duly passed, approved and adopted by the City Council of the City of West Hollywood at a regular meeting held on the 2nd day of June 2014, after having its first reading at the regular meeting of said City Council on the 19th day of May I further certify that this ordinance was posted in three public places as provided for in Resolution No. 5, adopted the 29th day of November, WITNESS MY HAND AND OFFICIAL SEAL THIS 3rd DAY OF JUNE, YVONNE QUARKER, CITY CLERK Page7of7