Page 1 City f Richmnd Rent Cntrl and Just Cause fr Evictin Fact Sheet As f: Octber 15, 2015 NOTE: On September 3, 2015, prpnents f a referendum n the Rent Cntrl and Just Cause fr Evictin rdinance timely submitted t the City Clerk enugh signatures t suspend the effective date f the rdinance (see Electins Cde 9237). The referendum petitin prtesting the adptin f Ordinance N. 21-15 N.S. -- amending Article XI f the Richmnd Municipal Cde t establish a rent cntrl bard and just cause requirement fr evictins -- has been determined t have a sufficient number f valid signatures t be submitted t the vters at the next regular municipal electin. Wh: The Richmnd City Cuncil When: July 31, 2015 (first reading) and August 5, 2015 (secnd reading) What: A Rent Cntrl and Just Cause fr Evictin rdinance was intrduced (with mdificatins frm the initial first reading n July 21, 2015) (first reading) n July 31, 2015. This rdinance was adpted at a special meeting f the City Cuncil n August 5, 2015. Backgrund infrmatin regarding Rent Cntrl and Just Cause fr Evictin is available at www.ci.richmnd.ca.us/husingupdate Key Ordinance Cmpnents Effective Dates The effective date f the Rent Cntrl and Just Cause fr Evictin rdinance was riginally September 4, 2015; hwever, prpnents f a referendum n the rdinance timely submitted t the City Clerk enugh signatures t suspend the effective date f the rdinance (see Electins Cde 9237). The petitins were delivered t the Cunty Electins Office fr verificatin f the signatures n September 3, 2015. The referendum petitin prtesting the adptin f Ordinance N. 21-15 N.S. -- amending Article XI f the Richmnd Municipal Cde t establish a rent cntrl bard and just cause requirement fr evictins -- has been determined t have a sufficient number f valid signatures t be submitted t the vters at the next regular municipal electin.
Page 2 The base rent date is July 21, 2015. The rent ceiling (the maximum amunt f rent that a landlrd may charge per mnth) will be calculated based n the rent that was in effect fr the same tenant n July 21, 2015. If a new tenant has mved in after July 21, 2015, the base rent is whatever initial rent was charged fr the new tenant. Sectin 11.100.040 f the rdinance states: N landlrd shall charge rent fr the same tenancy fr any cntrlled rental units in an amunt greater than the rent in effect n July 21, 2015. [ ] The rent in effect n that date is the Base rent ceiling. If there was n rent in effect n July 21, 2015, the Base rent ceiling shall be the rent that was charged n the first date that rent was charged fllwing July 21, 2015. The base rent ceiling is the reference pint frm which the rent ceiling shall be adjusted upward r dwnward in accrdance with Sectin 11.100.050. DISCLAIMER: CITY STAFF ARE NOT PROVIDING LEGAL ADVICE. Please refer t the fllwing links fr infrmatin regarding Califrnia state nticing requirements: Nticing requirements fr rent increases: http://www.dca.ca.gv/publicatins/legal_guides/lt-2.shtml. Nticing requirements fr evictins: The amunt f ntice time that is required t terminate a tenancy r evict a tenant varies. Please see http://www.dca.ca.gv/publicatins/landlrdbk/terminatins.shtml fr mre infrmatin. Applicability (refer t Sectin 11.100.020: Definitins) The fllwing units are EXEMPT frm the Rent Cntrl sectins f the rdinance: Rental units in htels, mtels, inns, turist hmes and rming and barding huses which are rented primarily t transient guests fr a perid f less than sixty (60) days Rental units in any hspital, cnvent, mnastery, extended medical care facility, asylum, nnprfit hme fr the aged, r drmitry wned and perated by an institutin f higher educatin Single family hmes (CA Civil Cde f Prcedure Sectin 1954.52) Cndminiums (CA Civil Cde f Prcedure Sectin 1954.52) Residential rental units which received a certificate f ccupancy after February 1, 1995, pursuant t the Csta-Hawkins Rental Husing Act (CA Civil Cde f Prcedure Sectin 1954.52)
Page 3 Units used fr the purpses f prviding, n a nnprfit basis, child care r ther residential scial services in accrdance with applicable laws. This exemptin shall expire when the use upn which the exemptin is based ceases Units receiving tenant-based r prject-based Sectin 8 subsidy The fllwing units are EXEMPT frm the Just Cause fr Evictin sectins f the rdinance: Rental units in htels, mtels, inns, turist hmes and rming and barding huses which are rented primarily t transient guests fr a perid f less than sixty (60) days Rental units in any hspital, cnvent, mnastery, extended medical care facility, asylum, nnprfit hme fr the aged, r drmitry wned by an institutin f higher educatin Where a unit is actually used fr the purpses f prviding, n a nnprfit basis, child care f ther residential scial services in accrdance with applicable laws. Allwable Rent Increases (refer t Sectins 11.100.040 and 11.100.050) THE ANNUAL GENERAL ADJUSTMENT: Per Sectin 11.100.050 f the rdinance, landlrds f cntrlled rental units are limited t an annual rent increase equivalent t ne-hundred (100) percent f the Cnsumer Price Index (CPI) fr the San Francisc Oakland San Jse regin fr the same tenancy. Example rent increase calculatin: The maximum allwable rent increase is calculated by adding the allwable percent increase t the base rent. S, fr example, if the base rent is $1,000 and there is an allwable increase f 1.5% per the CPI, then the maximum allwable rent fr that year wuld be $1,015 per mnth. Landlrds are permitted t establish a new base rent fr all new tenancies pursuant t the State f Califrnia Csta-Hawkins Rental Husing Act. Rent is defined in Sectin 11.100.020 as peridic payments and all nnmnetary cnsideratin, including, but nt limited t, the fair market value f gds r services rendered t r fr the benefit f the landlrd under an agreement cncerning the use r ccupancy f a rental unit and premises, including all payment and cnsideratin demanded r paid fr parking, separately metered utilities, pets, furniture, subletting and security depsits fr damages and cleaning. PASS-THROUGHS Per Sectin 11.100.030(f)(15) f the rdinance, the Rent Bard will determine the allwable pass-thrughs fr the fllwing:
Page 4 Sewer fees Prperty-related charges (meaning charges in additin t regular ad valrum taxes that appear n a prperty tax bill), which may include: Wastewater user fees Strmwater fees Vter-apprved bnded indebtedness Special assessments Per Sectin 11.100.030(n) f the rdinance, frty (40) percent f the administrative fee may be passed n t the tenant. The Rent Bard will determine the manner in which this fee may be passed thrugh (e.g. n a per-mnth basis) thrugh the regulatins. INDIVIDUAL RENT ADJUSTMENTS If a landlrd finds that they are unable t receive a just and reasnable return f return n investment due t the rent increase limit, they may apply fr an upward individual rent adjustment. The Bard may grant additinal rent increases fllwing review f the required dcumentatin. Likewise, a tenant may petitin fr a dwnward individual adjustment if they feel that a rent increase is unjustified based n the gds and services prvided t them (Sectin 11.100.050). The Bard will establish regulatins specifying the grunds n which a petitin is accepted r repealed. In either case f an upward r dwnward individual rent adjustment, the landlrd r tenant wuld have the pprtunity t submit a petitin t the decisin (Sectin 11.100.050(c)). The Rent Bard The Interim Rent Bard will cnsist f five (5) appinted members, t be replaced fllwing the Nvember 2016 electins with five (5) elected members. Rent bard cmmissiners will be elected at general municipal electins in the same manner as set frth in the City Charter, subject t adptin by the vters f an amendment t Article V f the Charter t prvide fr the electin f Cmmissiners. During the interim perid, the Interim Rent Bard will serve as the rent bard. The Rent Bard will perfrm a variety f tasks, including but nt limited t publishing the annual general adjustment, cnducting studies and research, cllecting the administrative fee, preparing an annual reprt and apprving regulatins.
Page 5 Just Cause fr Evictin (refer t Sectin 11.100.060 f the Ordinance) All rental units as defined in Sectin 11.100.020 are subject t the Just Cause Requirement fr Evictins specified in Sectin 11.100.070 f the rdinance. The Just Causes (1) thrugh (12) are identical t thse in the existing Evictin Cntrl n Prperties in Freclsure rdinance established in Chapter 7.105 f the Richmnd Municipal Cde. Per City Cuncil directin n July 7, 2015, a relcatin fee equivalent t twice the amunt f the market-rate rent fr the unit plus $1,000 is required t be paid t the tenant(s) fr n-fault evictins (Sectin 11.100.070(c)). Fr units with ne tenant, the whle fee shall be paid t the single tenant named in the written lease. Fr units with multiple tenants, each tenant named in the written lease shall be paid a pr rata share f the relcatin fee. Additinal Infrmatin The rdinance cntains a framewrk fr a Rent Cntrl and Just Cause fr Evictin plicy based n City Cuncil directin n July 7, 2015. The specific implementatin plicies shall be further develped by regulatins apprved by the Rent Cntrl Bard.