CITY COUNCIL OCTOBER 15, 2018 LEGISLATIVE SUBJECT: PREPARED BY: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD ADDING A NEW CHAPTER 17.30 TO TITLE 17 OF THE WEST HOLLYWOOD MUNICIPAL CODE REQUIRING A TENANT HABITABILITY PLAN DURING CERTAIN CONSTRUCTION ACTIVITIES, AMENDING SECTION 17.24.010 RELATING TO EXEMPTED PROPERTIES, AMENDING TITLE 1 FOR ADMINISTRATIVE PENALTIES AND AMENDING TITLE 13 RELATING TO SEISMIC STRENGTHENING ADMINISTRATIVE SERVICES DEPARTMENT (Christof Schroeder, Director)~,'l. (Jonathan Holub, Legal Services Division, Staff Attorney)~ HUMAN SERVICES & RENT S~ILIZATION DEPARTMENT (Corri Planck, Acting Director) (S!fJ /JI,,, / (Peter Noonan, Rent Stabilization & Housing Division, Manager)W'Y' (Alicen Bartle, Rent Stabilization & Housing Division, Project A I\~ Development Administrator) PLANNING & DEVELOPMENT SERVICES DEPARTMENT (John Keho, Interim Director)~-t '- (Ben Galan, Building Official)!J;'rt- {r-"- STATEMENT ON THE SUBJECT: The Council will consider amending the Rent Stabilization Ordinance adding a new chapter mandating that seismic retrofitting construction require the landlord produce and abide by a tenant habitability plan maintaining certain standards for habitability on the property prior to being issued building permits, or upon a finding that permitted work requires a plan to protect tenant health and safety. The Council will also consider necessary, attendant amendments to Titles 1, 13 and 17. RECOMMENDATIONS: Staff recommends that the City Council introduce on first reading: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD ADDING A NEW CHAPTER 17.30 TO TITLE 17 OF THE WEST HOLLYWOOD MUNICIPAL CODE REQUIRING A TENANT HABITABILITY PLAN DURING CERTAIN CONSTRUCTION ACTIVITIES, AMENDING SECTION 17.24.010 RELATING TO EXEMPTED PROPERTIES, AMENDING TITLE 1 FOR ADMINISTRATIVE PENALTIES AND AMENDING TITLE 13 RELATING TO SEISMIC STRENGTHENING " Page 1 of 5 AGENDA ITEM 6.B.
BACKGROUND / ANALYSIS: In 2017, the City Council adopted requirements mandating seismic strengthening of certain residential buildings within the City (WHMC Chapters 13.28, 13.36 and 13.40). Integrated into these ordinances is language directing landlords to comply with a "tenant impact mitigation plan" as found in the Rent Stabilization Ordinance (WHMC Sections 13.28.070, 13.36.070, 13.40.070). The proposed ordinance (Attachment A) the Council is asked to consider requires tenant habitability plans, previously contemplated by the newly enacted seismic strengthening code provisions (Title 13). In addition to providing for habitability and mitigation of impacts during seismic strengthening construction, the proposed ordinance seeks to protect tenants during any other necessary construction and prevent abuses that sometimes occur during larger, long-term construction projects, particularly at rent stabilized properties. The ordinance also makes minor changes to the administrative citation (Title 1) and seismic strengthening provisions (Title 13) of the Code for consistency with the proposed changes to the Rent Stabilization Ordinance. In addition, the ordinance would bring other properties, normally exempt from the Rent Stabilization Ordinance, under the protections of the habitability plan requirements to assure that most tenants in the City would benefit from the new requirements. On February 22, 2018 the Rent Stabilization Commission reviewed and recommended that the Council adopt tenant habitability requirements. Following the meeting, changes were made to the draft ordinance based on Commissioners' comments regarding weatherproofing and parking issues. These changes to the ordinance reflect the substance of those comments and staff judgment regarding the importance of parking as a housing service. Staff also had to consider work plan and staffing issues arising from the possible volume of permit applications and possible delays in permit issuance. Further revisions have been made in the interim and to clarify the grounds for denial of a habitability plan, but in general, the substance of the proposed ordinance is consistent with the goals of the draft presented to the Commission. The revisions give more discretion to staff, outside of the context of seismic retrofitting, as to when a tenant habitability plan should be required, while maintaining the goals of tenant habitability and protection from harassment. In developing the proposed ordinance, staff consulted the regulations and with staff responsible for implementation of similar laws in Los Angeles and Santa Monica, both of which have had programs in place for several years. The City Council foresaw that seismic strengthening construction would be disruptive and could create tenant habitability issues. Staff had also been made aware through tenant reports and subsequent investigations that some landlords or contractors do not consistently consider the impacts that construction will have on tenant habitability. Unfortunately, there have been cases in which permitted work is undertaken in a manner that drives out below-market tenants. The proposed ordinance seeks to both protect tenants during legitimate construction and prevent abuses by property owners who, although performing permitted work, are trying push out tenants by purposely creating "construction zone" living conditions. Owners of residential buildings will provide a form (Attachment B) with their building Page 2 of s
permit application(s) to the Building & Safety Division that will indicate whether or not a tenant habitability plan is required. If the work relates to seismic strengthening, a plan is required. If not required, the permit(s) can be issued, but the landlord must still affirmatively agree to comply with general health, safety and code requirements or risk being cited and required to stop work until a plan is presented. (Attachment C). If the project requires a tenant habitability plan, it must be completed by the landlord and approved by the Rent Stabilization & Housing Division prior to the issuance of construction permits. A properly completed plan must include general contact and property information, the reason for the work, tenant information, construction impacts and mitigation measures, along with plans for temporary relocation, if necessary. Appropriate forms will be available to assist landlords in completing the plan (Attachment D). Upon completion of the draft plan, the landlord will submit it to Rent Stabilization & Housing staff for review. In order to ensure prompt review, the proposed ordinance requires that staff make a decision regarding the plan within ten (10) business days. If approved, the landlord must provide the plan to tenants at least ten (10) calendar days' prior to construction or, for projects where tenant relocation will be necessary, no less than thirty (30) days. These noticing requirements, however, can be modified upon good cause showing that strict compliance would adversely impact the health, safety or welfare of any tenant. Staff would be authorized to deny a submitted plan for the following reasons: (1) Failure to provide mitigation measures that will meet the standards set forth in California Civil Code Section 1941.1, unless accompanied by a viable temporary relocation plan; (2) Failure to provide for protection of tenants' personal property during construction; or (3) Failure to adequately provide for alternative parking for tenants otherwise entitled to parking if the parking space(s) will be unavailable from 7:00 p.m. to 8:00 a.m. during construction. If denied, reviewing staff must notify the landlord with a "Notice of Tenant Habitability Plan Deficiencies" (Attachment E). The Notice will set forth the grounds for the denial and provide guidance and suggestions for bringing the plan into compliance. In addition to the foregoing, the proposed ordinance sets forth other informational requirements. The landlord must post notice regarding service interruptions, tenant rights, contact information and any other information deemed necessary to fully alert tenants of impacts and available resources (Attachment F). In the event a landlord fails to comply with the requirements of the ordinance, they will be subject to administrative fines, penalties and/or stop work orders. The ordinance does not preclude other remedies available under law. Staff recommends adoption of the proposed ordinance in order to further the goals of implementing a safe seismic retrofitting program and to promote the City's ongoing efforts to protect tenants, particularly those at risk of being pushed out by abusive Page 3 of 5
practices. CONFORMANCE WITH VISION 2020 AND THE GOALS OF THE WEST HOLLYWOOD GENERAL PLAN: This item is consistent with the Primary Strategic Goal(s) (PSG) and/or Ongoing Strategic Program(s) (OSP) of: PSG-2: Affordable Housing. OSP-9: Upgrade Existing Buildings & Infrastructure. In addition, this item is compliant with the following goal(s) of the West Hollywood General Plan: H-1: Provide affordable rental housing. H-2: Maintain and enhance the quality if the housing stock and residential neighborhoods. H-6: Promote equal access to housing for all. EVALUATION PROCESSES: The proposed tenant habitability plan program requirements responds to the construction mitigation plan requirements set forth in recently enacted provisions related to mandatory seismic retrofitting. Staff will provide a follow-up report in 6 months to the Rent Stabilization Commission and City Council regarding the efficacy of the program. The proposed checklist (Attachment B) will allow staff to monitor the volume of impacts anticipated during construction with an eye toward possible expansion of the program, if feasible. Landlords will be required to provide a plan for review that will slightly increase the time to process some permits related to seismic retrofitting. But, the amendment sets a prompt turnaround time for such review (maximum 10 business days). Staff anticipates an increase in habitability plan submissions as seismic retrofitting projects become more prevalent. But, a reduction in review time should be seen due to similarities in impacts and mitigation of seismic projects as staff and contractors become more familiar with the issues posed by seismic strengthening construction. ENVIRONMENTAL SUSTAINABILITY AND HEAL TH: The amendment is anticipated to improve tenant health and safety by securing proper mitigation and habitability during construction. Enactment of the proposed ordinance will contribute to the protection of residents and their guests. COMMUNITY ENGAGEMENT: The proposed ordinance grows out of the long-term discussions with stakeholders regarding seismic retrofitting and staff's ongoing experience dealing with disruptive construction projects at occupied rent stabilized properties. Several community Page 4 of 5
engagement events have been held on the mandatory earthquake retrofitting project at which the need for and the importance of the tenant habitability plan program was presented and discussed by tenants and landlords. Feedback received at the community events, which are listed in the mandatory earthquake retrofitting program and landlord/tenant cost sharing report that is also included in this agenda, included an overall concern that construction work necessary to complete earthquake retrofitting could have specific impacts on the use and enjoyment of the properties, and that there was a need to address and set expected habitability guidelines and standards for any work that is to be done. This ordinance also addresses the longer term issue staff has observed at certain rent stabilized properties, which is the general need to have standards and guidelines for the execution and completion of construction projects in place in order to ensure construction work done is executed and completed in a timely manner with limited impacts on the use and enjoyment of the properties by tenants. OFFICE OF PRIMARY RESPONSIBILITY: HUMAN SERVICES & RENT STABILIZATION DEPARTMENT/ RENT STABILIZATION & HOUSING DIVISION FISCAL IMPACT: None at this time. ATTACHMENTS: Attachment A - Proposed Ordinance Attachment B -Tenant Habitability Checklist Attachment C - Conditions of Construction Attachment D - Tenant Habitability Plan Forms Attachment E - Notice of Tenant Habitability Plan Deficiencies Attachment F - Notice of Approved Tenant Habitability Plan & Notice of Construction Page 5 of 5