Wednesday, December 2, 2015

Rent Stabilization Study Session, Saturday, December 5, 2015

Image result for Rent control or not picture
Reality check: yellow is where rent
control exists, white none, blue prohibited.
City Council Study Session, Saturday, December 5, 2015. 10:00 AM.
Location:  Ingrid B. Lacey Middle School, 1427 Palmetto Avenue, Pacifica.

Item 1.  City Council consideration and direction on Rent Stabilization.
Presentation by invited speakers.
Public oral communication on this topic.
City Council discussion.

From Item 1, Staff Summary Report, (originated by the Planning Department).

"Recommended action. Staff requests that the City Council provide regarding direction whether or not to proceed with implementation of Rent Stabilization. Staff has provided the following options; however, the Council may identify other direction,
1.  Direct staff to continue implementation of the Housing Element action items .. and update to the General Plan which are currently on the 2015-16 Work Plan, both contain measures to preserve and increase affordable housing options.
2.  Direct staff to add the creation and implementation of a Rent Stabilization Program to the 2015-16 Work Plan including discussion of resource allocation and adjusting priorities of other projects and initiatives, (page 1).
Image result for Rent control or not picture
Come on Froggies, give-up some
"pristine" land for the Affordable cause.

....  State law and rent stabilization.  Cities have the authority under the State Constitution and statutes to institute rent stabilization. Any rent stabilization ordinance must provide landlords a 'just and reasonable return' on their investment or will be considered to be an 'unconstitutional taking.'  The Costa-Hawkins Rental Housing Act passed in 1995 exempts the following units from rent control California Civil Code Section 1954.50-1954.535):  Multi-family units with a certificate of occupancy issued after February 1, 1995. . Single family homes.. Condominium units sold separately to a purchaser for value, (page 4).

Rent stabilization ordinances cannot set the initial rental rate or rent that can be charged once a unit is vacated.  This is commonly referred to as 'vacancy decontrol.'  Rent stabilization does control the amount of rent increase while the same tenant occupies a unit. Most typically, rent control ordinances adopted in other communities allow annual adjustments based on Consumer Price Index (CPI) and limit the number of rent increases per year.  For example, the East Palo Alto rent stabilization ordinance allows adjustments of 80% of the CPI for the San Francisco-Oakland-San Jose region, (page 4).

Models for implementation of rent stabilization vary. Some jurisdictions create rent boards but this is not required. All models require City resources and ordinances, and may include fees to offset costs.  According to the East Palo Alto adopted budget, the rent stabilization budget is approximately $431,000, including two staff members and this cost is offset by fees." (page 6).

Related notation within the above Report.... "There are 482 incorporated cities in California. There are 15 cities that have adopted rent control ordinances (source: California Department of Consumer Affairs)", (page 1).   Also within the Report see "Current Affordable Housing efforts and resources",  (pages 2-3); and "Pacifica housing unit data", pages 3-4. 

Note graphics. USA rent control from Dena Pawling (Attorney), Dena's Ramblings.  Frog from Find me a pad, "Renting an apartment is just better."

Posted by Kathy Meeh

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