City of Alameda Rent Review Ordinance Background The City of Alameda has had in place for a number of years, a Rent Review Advisory Committee that provides a process for a tenant to voice a concern about a rent increase and for a landlord to respond. After a hearing requested by the tenant, the Advisory Committee can make a nonbinding recommendation to the landlord and the tenant concerning the rent increase. City leaders believe the availability of this process was not well known in the tenant community. As a result, the City Council updated the Rent Review ordinance, requiring the landlord to provide a written notice about the process, to the tenant, at the time the landlord gives the tenant a notice of a rent increase. A specific notice as outlined in the ordinance must inform the tenant that he/she has the option to submit a request for review of that rent increase to the Rent Review Advisory Committee if (1) the tenant believes the rent increase poses an unreasonable financial hardship on the tenant and, (2) the landlord and the tenant cannot work out a satisfactory arrangement concerning the rent increase. 1. What Rental Units are Affected by this Ordinance? Under the ordinance, residential property means any housing unit, including a room or group of rooms designed and intended for occupancy by one or more persons or a mobile home offered for rent or lease in the City except for (1) housing units, the rents of which are regulated by federal law or by regulatory agreements between a Landlord and the City, the Housing Authority of the City of Alameda, or any agency of the State of California or (2) housing units that are rented or leased for 30 days or less. This requirement is interpreted to also include owner-occupied properties where single rooms are rented by the homeowner as well as boarding houses. The definition of Housing Provider 1 is broad enough that the ordinance may also regulate tenants who give rent increases to sub-tenants. 1 Under the ordinance, Housing Provider is defined as any person, partnership, corporation, or other business entity offering for rent or lease any residential property in the City and shall include the agent or representative of the Housing Provider if such agent or representative has the full authority to answer for the Housing Provider and enter into binding agreements on the Housing Provider s behalf. A publication of the California Apartment Association 2015 Page 1
2. In Order to Increase Residential Housing Rent in the City of Alameda, what must the Landlord Provide to the Tenant? When a Housing Provider (herein Landlord) serves a Tenant with a written notice of a rent increase 2, the Landlord must also provide to the Tenant a written notice of the City s rent review procedures. The required notice of the rent review procedures must be in writing and must provide the name, address, phone number, and email address of the Landlord. The Landlord must either personally deliver the notice to the Tenant or mail to the Tenant - by first class mail postage pre-paid - the notice addressed to the Tenant s residential property. Service by mail is presumed complete within five days of mailing, but the Tenant may rebut that presumption. CAA is developing a form that complies with the requirements of the City's ordinance. 3. Does the Landlord have to provide this notice no matter the amount of the rent increase? Yes. 4. What Language is Required by the City in the Specific Notice? At the time that the Landlord serves the Tenant with a notice of a rent increase, the Landlord must provide the following notice: NOTICE: Under Civil Code section 827(b) a Housing Provider must provide a Tenant with 30 days notice prior to a rent increase of 10 percent or less and must provide a tenant with 60 days notice of a rent increase of greater than 10 percent. Because the Housing Provider proposes a Rent Increase or because the Housing Provider proposes a Rent Increase within 12 2 The requirement for a landlord to service a Thirty- and Sixty-Day Notice is governed by Civil Code Section 827(b), which provides as follows: (b) (1) In all leases of a residential dwelling, or of any interest therein, from week to week, month to month, or other period less than a month, the landlord may increase the rent provided in the lease or rental agreement, upon giving written notice to the tenant, as follows, by either of the following procedures: (A) By delivering a copy to the tenant personally. (B) By serving a copy by mail under the procedures prescribed in Section 1013 of the Code of Civil Procedure. (2) If the proposed rent increase for that tenant is 10 percent or less of the rental amount charged to that tenant at any time during the 12 months prior to the effective date of the increase, either in and of itself or when combined with any other rent increases for the 12 months prior to the effective date of the increase, the notice shall be delivered at least 30 days prior to the effective date of the increase, and subject to Section 1013 of the Code of Civil Procedure if served by mail. (3) For an increase in rent greater than the amount described in paragraph (2), the minimum notice period required pursuant to that paragraph shall be increased by an additional 30 days, and subject to Section 1013 of the Code of Civil Procedure if served by mail. This paragraph does not apply to an increase in rent caused by a change in a tenant s income or family composition as determined by a recertification required by statute or regulation. A publication of the California Apartment Association 2015 Page 2
months of the immediately preceding Rent Increase, under Article XIV of Chapter VI of the Alameda Municipal Code, a Housing Provider must at the same time provide this Notice of the availability of the City s rent review procedures before imposing any such Rent Increase. You may request the Rent Review Advisory Committee to review the increase by submitting the request for review in writing within seven calendar days of your receipt of the notice of Rent Increase by personally delivering or mailing the request to the Housing Authority of the City of Alameda 701 Atlantic Avenue Alameda CA 94501 or emailing the request to the Housing Authority of the City of Alameda at rrac@alamedahsg.org. You must submit along with your request a copy of the Notice of Rent Increase You and your Housing Provider will be required to appear before the Committee for a hearing concerning the Rent Increase. Following the hearing the Committee will make a non- binding recommendation to you and your Housing Provider concerning your request It is illegal for a Housing Provider to retaliate against a Tenant for lawfully and peacefully exercising his or her legal rights including your request for the Committee to review the Rent Increase. Civil Code, Section 1942.5. A Housing Provider s efforts to evict a Tenant within six months of a Tenant s requesting a hearing may be used as evidence of a retaliatory eviction. 5. What if the Landlord Fails to Provide the Tenant with the Notice? If the Landlord fails to provide the Tenant with the required notice, the Landlord s rent increase will be void, and the Landlord cannot take any action to enforce that rent increase. Any rent increase in violation of this local law may be used as evidence in a Tenant s defense to an unlawful detainer action based on a Tenant s failure to pay an illegal rent increase 6. What if a Tenant Does Not Agree with the Rent Increase? A Tenant may request the Alameda Rent Review Advisory Committee to hear the proposed rent increase if (1) the Tenant believes the rent increase poses an unreasonable financial hardship on the Tenant and (2) the Landlord and the Tenant cannot work out a satisfactory arrangement concerning the rent increase. The Tenant requesting review must, within seven calendar days of receipt of the notice of rent increase, either (1) deliver by mail or e-mail the written request for review to the Housing Authority, or (2) call the Housing Authority and request a review. In either event the Tenant must submit to the Housing Authority a copy of the Notice of Rent Increase. 7. How Does the Rent Review Process Work? After determining a proposed rent increase meets the criteria for the Advisory Committee to review the rent increase, the Executive Director of the Housing Authority will schedule a hearing and provide notice to the Landlord and the Tenant of the hearing date, time, and A publication of the California Apartment Association 2015 Page 3
location at least seven calendar days prior to the hearing date. The hearing date will be scheduled at the next regularly scheduled meeting of the Committee, which meets monthly unless the Landlord and Tenant consent to a later date. The notice from the Executive Director will encourage the Landlord to contact the Tenant directly to seek a mutually satisfactory resolution of the request prior to the hearing and will encourage the Landlord and Tenant to consider using a neutral third party mediator to arrive at a satisfactory resolution of the request prior to the hearing. 8. What if the New Rent is due prior to the Scheduled Hearing Date? If the effective date of the rent increase occurs before the Committee s hearing - unless the Landlord otherwise agrees - the rent increase will become effective. Because the Advisory Committee decision is non-binding, the landlord could serve a 3-Day Notice to Pay Rent or Quit if a Tenant fails to pay the new rent as noticed by the Landlord. 9. Who May Attend the Advisory Committee Hearing on the Landlord s behalf? The hearing must be attended by the Landlord or someone who has the full authority to answer for the Housing Provider and enter into binding agreements on the Housing Provider s behalf. 10. What Will Happen at the Advisory Committee Hearing? At the hearing, the Advisory Committee will afford the Landlord and the Tenant the opportunity to explain their respective positions. Neither the Advisory Committee as a whole nor any individual member of the Committee will act as an advocate for either the Landlord or the Tenant. The Committee will take into consideration such factors as (1) the financial hardship to the Tenant, (2) the frequency and amount of prior rent increases, (3) the Landlord s costs associated with owning and maintaining the residential property, (4) the Landlord s interest in earning a reasonable rate of return, and (5) any other factors that may assist the Committee in determining a fair resolution to the request. The Committee will make a recommendation to the parties concerning the rent increase. If the parties agree to the recommendation made by the Committee, they may formalize the agreement in writing and sign it. Neither the City nor the Committee can be a signatory to such an agreement and neither the City nor the Committee shall assume any obligation or responsibility to enforce the terms of the agreement. 11. What if the Landlord Does not Appear at the Hearing? If a Tenant appears at a noticed Committee hearing and the Landlord does not appear without notifying the Executive Director prior to the hearing and providing a good reason for not appearing, the rent increase will be void and the Landlord can take no action to enforce the rent increase. In addition, the Landlord cannot provide another notice of a rent increase for one year from the date that the proposed rent increase was to become effective. A publication of the California Apartment Association 2015 Page 4
12. What if the Tenant Does not Appear at the Hearing? Or What if Neither Party appears? If the Tenant fails to appear at a noticed Committee hearing without notifying the Executive Director prior to the hearing and providing a good reason for not appearing and if the Landlord appears or if both the Tenant and the Landlord fail to appear without providing notice to the Executive Director and providing a good reason for not appearing, the Committee will take no action on the request, and the Tenant will be precluded from subsequently seeking further or additional review of this particular rent increase. 13. Who Serves on the Advisory Committee? The committee is made up of five members, all of whom must be residents of the City. Two members are tenants; two members are landlords; and one member is a home owner. All are nominated by the Mayor and appointed by the City Council. 14. Can the Landlord or Tenant Appeal the Decision of the Advisory Committee? Yes. After the Committee has issued its recommendation if the parties do not agree, either the Landlord or the Tenant may - within seven calendar days following the Committee s recommendation - request the City Council to review the recommendation by filing a request with the Alameda City Community Development Director. The City Council s review will occur as soon as practicable and will be limited to reviewing the Committee s recommendation and then issuing a letter under the Mayor s signature encouraging both parties to agree to the Committee s recommendation. 15. What if the Landlord Does Not Agree with the Committee s Recommendation? The Landlord s rent increase can go into effect as noticed by the Landlord in the 30- or 60-day notice that he/she served on the Tenant. For a copy of the City s Rent Review Ordinance, go to http://alamedaca.gov/sites/default/files/board-commission-docs/ordinance_3131.pdf A publication of the California Apartment Association 2015 Page 5