14
COMMUNICATION ACCESS INFORMATION: This meeting is being held in a wheelchair-accessible location. To request a meeting agenda in large print, Braille, or on cassette, or to request a sign language interpreter for the meeting, call 981-6900 (voice) or 981-6903 (TDD) at least five (5) working days notice will ensure availability. 4x4 Committee on Housing City Council and Rent Board 2125 Milvia Street, Berkeley, CA 94704 Tel: 510. 981.4919 TDD: 510.981.6903 Fax: 510. 981.4940 E-mail: [email protected] - http://www.cityofberkeley.info/rent/ AGENDA 4 X 4 JOINT COMMITTEE ON HOUSING CITY COUNCIL/RENT STABILIZATION BOARD Thursday, March 10, 2016 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment 3. Approval of Minutes for the Meeting of February 11 th , 2015 4. Update and discussion on policies related to short-term rentals 5. Update and discussion on revisions to the Demolition Ordinance 6. Consideration of possible changes to the Rent Stabilization Ordinance (*Material to be delivered*) 7. Discussion of the possible elements of a tenant protection ordinance (*Material to be delivered*) 8. Discussion of possible future agenda items and setting a regular meeting schedule 9. Adjournment COMMITTEE MEMBERS: Mayor Tom Bates Rent Board Chairperson Jesse Townley City Council Member Max Anderson Rent Board Commissioner Katherine Harr City Council Member Jesse Arreguin Rent Board Commissioner Paola Laverde City Council Member Laurie Capitelli Rent Board Commissioner John Selawsky NOTE: Attendees at public meetings are reminded that other attendees may be sensitive to various odors, whether natural or manufactured, in products and materials. Please help the City respect these needs.

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Page 1: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

COMMUNICATION ACCESS INFORMATION:

This meeting is being held in a wheelchair-accessible location. To request a meeting agenda in large print, Braille, or on cassette, or to request a sign language interpreter for the meeting, call 981-6900 (voice) or 981-6903 (TDD) at least five (5) working days notice will ensure availability.

4x4 Committee on Housing City Council and Rent Board

2125 Milvia Street, Berkeley, CA 94704 Tel: 510. 981.4919 TDD: 510.981.6903 Fax: 510. 981.4940

E-mail: [email protected] - http://www.cityofberkeley.info/rent/

AGENDA

4 X 4 JOINT COMMITTEE ON HOUSING CITY COUNCIL/RENT STABILIZATION BOARD

Thursday, March 10, 2016 – 10:00 a.m.

2001 Center Street, Second Floor – Rent Board Law Library

1. Roll Call

2. Public Comment

3. Approval of Minutes for the Meeting of February 11th, 2015

4. Update and discussion on policies related to short-term rentals

5. Update and discussion on revisions to the Demolition Ordinance

6. Consideration of possible changes to the Rent Stabilization Ordinance (*Material to

be delivered*)

7. Discussion of the possible elements of a tenant protection ordinance (*Material to be delivered*)

8. Discussion of possible future agenda items and setting a regular meeting schedule

9. Adjournment

COMMITTEE MEMBERS: Mayor Tom Bates Rent Board Chairperson Jesse Townley City Council Member Max Anderson Rent Board Commissioner Katherine Harr City Council Member Jesse Arreguin Rent Board Commissioner Paola Laverde City Council Member Laurie Capitelli Rent Board Commissioner John Selawsky NOTE: Attendees at public meetings are reminded that other attendees may be sensitive to various odors, whether natural or manufactured, in products and materials. Please help the City respect these needs.

Page 2: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

4x4 Committee on Housing City Council and Rent Board

2125 Milvia Street, Berkeley, CA 94704 Tel: 510. 981.4919 TDD: 510.981.6903 Fax: 510. 981.4940

E-mail: [email protected] - http://www.cityofberkeley.info/rent/

MINUTES TO BE APPROVED

4 X 4 JOINT COMMITTEE ON HOUSING

CITY COUNCIL/RENT STABILIZATION BOARD Thursday, February 11, 2016 – 1:00 p.m.

2001 Center Street, Second Floor – Rent Board Law Library

1. Roll Call. Meeting started at 1:08 p.m.

Present: Mayor Bates, CM Arreguin, CM Capitelli, RBC Townley, and RBC Selawsky. Absent: CM Anderson, RBC Harr, and RBC Laverde. Staff Present: Mayor’s Office: Calvin Fong Housing, Health & Community Services: Paul Buddenhagen Rent Board: Matt Brown, Lief Bursell, Brendan Darrow, and Jay Kelekian.

2. Public Comment.1 speaker

3. Approval of Minutes for the Meeting of December 10, 2015. M/S/C (Arreguin, Selawsky) AMEND and APPROVE September 10, 2015 MEETING MINUTES. Voice Vote. Carried 5-0-0-3. Absent: Anderson, Harr, and Laverde.

4. Discussion and possible action on proposal to increase the amount of

relocation assistance for owner move in evictions. Rent Board Staff Attorney Matt Brown outlined the Rent Board’s proposal to increase owner-move in (OMI) relocation assistance.

The Committee discussed the following:

• Prohibiting OMI evictions of families with minor children during the school year and how that would impact eviction procedure.

• The qualifications for low-income status.

• Allowing a City Hearing Examiner or the Rent Board to adjudicate low-income status disputes.

• The reason pre-1999 tenants are included with the other protected groups.

• How this proposal would fit in with the other potential 2016 ballot items.

M/S/C (Capitelli, Selawsky) Recommend that the City Council place on the November 2016 ballot the Rent Board’s proposal to amend B.M.C section 13.76.130.A.9 to increase the amount of relocation assistance required, allow for a

Page 3: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

4X4 Joint Committee on Housing: February 11, 2016 Meeting Minutes

City Hearing Examiner or the Rent Board to adjudicate low income status disputes, and to include a prohibition on evicting families with minor children during the school year so the City Council can place it on the November 2016 ballot. Voice Vote. Carried 5-0-0-3. Absent: Anderson, Harr, and Laverde.

5. Discussion of possible future agenda items and setting a regular meeting

schedule. The Committee agreed to meet next on Thursday, March 10th at 10 a.m.

6. Adjournment. The meeting adjourned at 1:40 p.m. COMMITTEE MEMBERS: Mayor Tom Bates Rent Board Chairperson Jesse Townley City Council Member Max Anderson Rent Board Commissioner Katherine Harr City Council Member Jesse Arreguin Rent Board Commissioner Paola Laverde City Council Member Laurie Capitelli Rent Board Commissioner John Selawsky

Page 4: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

Rent Stabilization Board Office of the Executive Director

DATE:

TO:

FROM:

MEMORANDUM

March 10, 2016

Honorable Members of the 4 x 4 Committee

q1

Jay Kelekian, Executive Director By: Matt BroWn, Staff Attorney

Item 6.

SUBJECT: Additional Suggested Amendments to the Rent Ordinance - Berkeley. Municipal Code Chapter 13.76

Reason Action is Needed

Berkeley voters passed Measure D in June of 1980 which established the current Rent Ordinance (the Ordinance) as codified in Berkeley Municipal Code (B.M.C.) Chapter 13.76.1 Because it was passed by voter initiative, the Ordinance may only be amended by voters. Berkeley City Council has, periodically, placed measures on the general ballot for the voters to decide when the Board recommends modifications.

Currently, staffbelieves there are several sections of the Ordinance that require modification as they have either been made obsolete by changes to state law or have become functionally inoperable due to changes outside the Board's control. Additionally, we are recommending that the Board and Council consider several other changes in order to remove ambiguities regarding the application of the Ordinance or update the law to reflect more realistic assistance.

This memo will suggest the sections of the Ordinance that require amendments but will not identify the specific proposed language to be used. Traditionally, proposed changes to the Ordinance are reviewed and first discussed at the 4 x 4 Committee. Specific proposed Ordinance language is developed by staff and reviewed/recommended by the Board and then submitted to Council for consideration of being placed on the November ballot.

1 The Ordinance was subsequently amended substantially by Measure G in 1982.

2125 Milvia Street, Berkeley, California 94704 TEL: 510.644.7714 • TDD: 510.981.6903 • FAX: 510.644.7703

E-MAIL: [email protected] • INTERNET: www.ci.berkeley.ca.us/rent/

Page 5: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

Rent Board Stafrs Suggested Rent Ordinance Amendments March 10, 2016 Page2

Proposed Modifications due to Changes Outside Board's Control

B.M.C. section 13.76.070 (Security Deposit Interest)

Background - As amended by Measure P in 2004, this section of the Ordinance provides that tenant security deposits held by a landlord "shall accrue simple interest at the rate equal to the average rates of interest paid on six-month certificates of deposit by insured commercial banks" until the deposit is returned to the tenant. The section further provides that the interest accrued through October 31st of each year shall be returned to the tenant annually in December of each year "at a rate equal to the 12-month average of the average rates of interest paid on six-month certificates of deposit by insured commercial banks as published by the Federal Reserve Board on the first business day of each month for the prior 12 months ending on November 1st." The section mandates that the Rent Board compute and publicize the interest rate each year on an ongoing basis. Thus, the Rent Board is expressly charged with responsibility for determining the rates of interest paid on six-month CDs "by insured commercial banks as published by the Federal Reserve Board o.n the first business day of each month."

Following the enactment of Measure P, the Rent Board amended Regulation 702 to implement the language of section 13.76.070 by requiring the Board to calculate the average of the six­month CD rates published in the Federal Reserve Board's Statistical Release H.15 on the first business day of each month. The Federal Reserve Board's Statistical Release H.15 contains daily interest rates for selected U.S. Treasury and private money market and capital market instruments, including rates for one-, three- and six-month CDs.

Board staff published the H.15 rate and the 12-month average each month since the Ordinance was revised. In December of 2013, however, the Federal Reserve Board issued a statement that the H.15 would cease publication of six-month CD rates.2 Given this information, the Board must again adjust the methodology used to calculate the amount landlords are required to pay tenants for their security deposit interest. While there are several other rates published on a monthly basis by the Federal Reserve Board,3 Berkeley landlords are not able to put money into accounts that track these indexes. Furthermore, this data does not track rates that would allow landlords to follow the mandate ofB.M.C. section 13.76.070 that tenant security deposits held by a landlord "shall accrue simple interest at the rate equal to the average rates of interest paid on six-month certificates of deposit by insured commercial banks" until the deposit is returned to the tenant.

After the Federal Reserve Board ceased publishing the H.15 rate, the Board amended Regulation 702 in April 2014 to track the interest "at the rate equal to the 12-month average of the average

2 In its release on the matter, the Federal Reserve noted "Recent attrition has reduced both the number and types of institutions that provide quotes creating a challenge to construct statistically robust estimates of CD rates, and it is not feasible to resume publication."

3 The Federal Reserve Board also publishes the 90-Day Financial Commercial Paper rate; and the 1- year Treasury and 2-year Treasury rates. These rates, however, are not accessible to Berkeley landlords and do not track six­month CD rates as required by the Rent Ordinance. If the Ordinance were amended to use one of these rates, owners would be paying noticeably higher rates of interest to their tenants than they generally earn at a bank.

Page 6: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

Rent Board Stafrs Suggested Rent Ordinance Amendments March 10, 2016 · Page3

rates of interest (APY) paid on the first business day of each month for six-month certificates of deposits ($5,000 minimum deposit) by insured commercial banks doing business in the City of Berkeley." The Board has received no complaints regarding this change; indeed, landlords are pleased with this revision as the Berkeley Property Owners Association suggested the rate be tied to the average of Berkeley banks after Measure P was passed.

Proposed Action - Since the B.15 rate is no longer published, the Ordinance should no longer reference "insured commercial banks" and "Federal Reserve Board." Instead, we should use language used in current Board Regulation 702 regarding the Berkeley Bank rate or alternatively, some other court-tested standard.

B.M.C. section 13.76.1JOF. (Restoration ofAnnual Genera/Adjustments)

Background - This section of the Ordinance, added in 1982, states that a landlord who is ineligible to raise rents under an upward general adjustment for an entire calendar year shall not be eligible to raise rents under that particular general adjustment in future years. In other words, once an owner has "lost" the right to raise rents by an annual adjustment, that specific increase is lost forever and cannot be restored. These instances most commonly occur when an owner has failed to timely pay the Rent Board any fees or penalties that are owed or when a tenant has received an order from the Board via an administrative hearing reducing the rent ceiling based on housing code violations and the defect lasts for at least one year.

In 1989 the California legislature enacted Civil Code Section 1947.7 ("Petris Act"). The statute created, in part, a condition where once a landlord brought her property into substantial compliance with the applicable registration requirements and other applicable local and state housing code provisions, any previously lost AGA's would be prospectively restored

· (CC§1947.7(c)). The Rent Board codified the Petris Act via regulation in 1990 (Rent Board Regulation 1278), but the existing, anachronistic, language in the Ordinance could be misleading to owners and tenants.

Proposed Action - It is proposed that B.M. C. section 13.7 6.11 OF. be stricken from the Ordinance since it is preempted by state law and no longer valid.

Proposed Modifications to Remove Ambiguities and Otherwise Update Ordinance

B.M.C. section 13.76.050 (Conditional Exemption of Fraternities and Sororities)

Background- Berkeley Municipal Code section 13.76.050 exempts from rent control such properties as non-profit cooperatives (B.M.C.§ 13.76.050C) and units rented by a nonprofit accredited institution of higher education to a tenant or tenants who are students, faculty or staff of the institution or of a member school of the Graduate Theological Union (GTU) (B.M.C.§l3.76.050J). These classifications are primarily directed towards the UC system and exempt the co-ops that are run and managed by the Berkeley Student Cooperative (BSC), UC Berkeley dormitories and properties owned by entities that operate in conjunction with the GTU. Neither sororities nor fraternities are specifically exempt from any provisions of the Ordinance.

Page 7: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

Rent Board Stafrs Suggested Rent Ordinance Amendments March 10, 2016 Page 4

In 1985, as the result of litigation, (Pi Chapter of Alpha Chi Omega House Ass 'n v. City of Berkeley C 84 2709, U.S. Dist. Ct. Northern California) the Rent Board and various sororities entered into a settlement agreement wherein it was stipulated that sororities would be exempt from all provisions of rent control provided that:

1) Occupancy of any particular sorority was restricted to its members; 2) Any fees charged its members would be approved by vote of the members; 3) Each house must be owned by one of the actual sororities or an affiliated nonprofit

legal entity whose sole purpose was to manage and maintain the house; 4) The monies charged each sorority would be restricted to the maintenance and

operation of the house; and 5) Active members would not be subject to eviction provided they remained in good

standing with their respective sorority.

It was further agreed that the agreement does not apply when the house or any portion thereof is rented to non-members. In 1989 the Rent Board and fraternities entered into a similar settlement as the 1985 sorority agreement.

Proposed Action- Add a new section M. to B.M.C. section 13.76.050 making clear that fraternities and sororities recognized by the University are exempt from all provisions of the Ordinance as is the case with co-ops and dormitories. This exemption would be limited to only those rooms/units that are rented to active members who are residing in their respective houses/chapters under the terms described above. Rooms/units rented to non-members, either year-round or on a seasonal basis, would not be exempt from the Ordinance; the chapter would need to register those particular rooms/units.4

B.M.C. sec#on 13.76.0501. (Unpermitted Units)

Background- Traditionally, rental units have been covered by rent stabilization in Berkeley regardless of their zoning or building permit status. This policy was built into the original ordinance enacted by the voters to deliberately avoid rewarding property owners who violate Berkeley's building and zoning codes by awarding so-called "illegal units" an exemption from rent stabilization. It was believed that if we granted an owner not following local laws greater rights/fewer restrictions than an owner renting a permitted unit that the effect would be to increase non-compliance with local zoning laws. For this reason, the terms of the rent ordinance have always applied to unpermitted/"illegal" units.

The de facto rent stabilization of unlawfully constructed rental units invites the question of whether rental units that are constructed unlawfully can avail themselves of the new construction exemption. The intent of the Ordinance as well as Costa Hawkins is to encourage lawful and

4 In 2010 the Board became aware that there was a wide-spread practice of fraternities renting rooms to non­members on a seasonal basis (primarily during the summer). Since 2010 the Rent Board has been registering such rooms, offering fraternities a reduced registration fee based on the unique relationship between the chapters and their on-going seasonal practice.

Page 8: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

Rent Board Stafrs Suggested Rent Ordinance Amendments March 10, 2016 Page 5

permitted new construction by exempting them from rent controls. The Rent Board's current policy regarding newly constructed rental units depends upon the date that a certificate of occupancy has been issued, and where there is none, stafT conducts a case-by-case analysis to determine whether or not the rental unit is exempt under a variety of different potential exemptions. Further refining this approach, the Rent Board has enacted two separate resolutions (Nos. 91-5 and 05-08) designed to prevent the loss of exemptions for properties where the number of units increases due to the lawful, permitted construction of new rental units. These policies reflect a long-standing commitment to encouraging the production of additional lawfully permitted rental units.

Costa-Hawkins prohibits rent control of new construction in two ways: "(1) It has a certificate ofoccupancy issued after February 1, 1995. (2) It has already been exempt fi·om the residential rent control ordinance of a public entity on or before February 1, 1995, pursuant to a local exemption for ne·wly constructed units. '·'

The rent ordinance was written 15 years before the passage of Costa Hawkins, which defined issuance of a certificate of occupancy as the seminal indicia for determining new construction.

Proposed Action- Clarify the ordinance to more closely conform to Costa-Hawkins by stating that exemption for new construction is limited to rental units with a certificate of occupancy issued after July 1, 1980.

B.M.C. sections 13. 76.130A.9.f. and 13. 76.130A.9.n.(i) (Owner Move In)

Background- The 4x 4 Committee already approved the recommendation to revise B.M.C. section 13.76:130A.9.f. (OMI relocation assistance) and B.M.C. section 13.76.130A.9.n.(i) (allow a City or Board hearing examiner to adjudicate OMI relocation benefit disputes); as well as adding a section to the Ordinance that prohibits OMI evictions during the school year for families with children at its February 11, 2016 meeting.

Proposed Action/Status - Board legal staff is in the process of drafting proposed language for the revisions to section 13.76.130A.9. of the Ordinance. After the Board reviews and approves the proposed language, staff will submit it to the Council so that it may be included as a November ballot initiative.

B.M.C. section 13. 76.130A.9.k.(i) (Clarification of Number of Units Owned by a Landlord)

Background - This section of the Ordinance clarifies that a landlord who owns three or fewer "residential rental units" in Berkeley may evict seniors and disabled tenants from his rental units in order to owner occupy the unit without regard to who lives in other rental units the landlord owns.5 The Board has always interpreted "rental units" broadly and has considered an owner's

5 Landlords who own more than three rental units in Berkeley may not use an OMI eviction to displace senior or disabled tenants who have lived in their units for five years or more. See B.M.C. section 13.76.130A.9.i.

Page 9: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

Rent Board Stafrs Suggested Rent Ordinance Amendments March 10,2016 Page6

home to qualify as a "residential rental unit" for purposes of this section. The existing language is imprecise and open for conflicting interpretations.

The vast majority of OMI evictions occur in smaller buildings. While it is important to preserve a small property owner's right to evict tenants from a unit with as few hurdles as possible, the displacement protections are crucial to maintain for senior and disabled tenants - many of whom have occupied these rental units for an extremely long time and have the most trouble relocating when evicted through no fault of their own.

J>roposed Action- Amend B.M.C. section 13.76.130A.9.k.(i) to change "residential rental units" to "residential units." This will make clear that seniors and disabled tenants who have occupied their units for five or more years will be protected from an owner move-in (OMI) eviction if their landlord owns three or more total units in Berkeley (even if the landlord lives in a separate dwelling as an owner occupant).

B.M.C. section 13. 76.130A.9.b. (Clarifying when Spouse may use Owner Move In Eviction)

Background- Currently, under the OMI provisions, a property owner may evict a tenant from a unit so that the property owner is able to owner occupy the unit or to move in a qualifying relative- specifically, the landlord's spouse, child, or parent. The existing law makes clear, however, that where an owner has recovered possession for owner occupancy by terminating a tenancy, no other current or future landlords may recover possession for owner move-in by terminating a tenancy in any other rental unit on that property.

The problem arises when an owner has already evicted a tenant under the OMI provisions in order to move himself into the subject unit and then attempts to displace a tenancy from a second unit by serving a notice to move in his spouse. This creates great risk for abuse wherein an owner and his spouse try to evict multiple tenant households while only occupying one unit or unlawfully occupying two. The current OMI provisions do not place any limitations on evictions for the use and occupancy of a unit by the property owner's spouse and are ripe for manipulation in the type of market we have experienced the past several years.

Proposed Action- Amend section 13.76.130A.9.b. so that a spouse is not allowed to use an OMI eviction to evict a tenant in the same property if the owner is already occupying a unit or currently endeavoring to dispossess a tenant from a unit by OMI on the property (or if there is already a unit designated for owner occupancy).

Conclusion

We are seeking 4x4 discussion, comment and feedback on these potential changes to the Rent Stabilization Ordinance so that a formal proposal (including draft language) can be presented to the Rent Board for consideration. The Board will make the final recommendation to the City Council suggesting which items be placed on the ballot along with specific proposed language.

Page 10: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

Jesse Arreguin City Councilmember, District 4

To: Honorable Members of the 4x4 Committee

From: Councilmember Jesse Arreguin

Subject: Possible Elements of a Tenant Protection Ordinance

Item 7.

FOR DISCUSSION March 10, 2016

Currently under Berkeley city law there are few remedies to address tenant harassment by a property owner or their agent. While Rent Board Regulation 1013 prohibits a Costa-Hawkins vacancy increase if harassing behavior occurs, if harassment occurs while the tenant is still residing in the unit, there is no recourse for a tenant other than a civil harassment restraining order or stay away order. The threshold to get a court issued restraining order is very high, and usually involves threats or acts of physical harm. ·

In this current housing market, where rents are increasing dramatically, there is an incentive for owners to force out long-term tenants in order to receive a higher market rent. There have b~en an increasing number of cases of reported tenant harassment by property owners in Berkeley. Some renters do not raise habitability issues with their owners or with the city Housing inspectors for fear of retaliation. Some renters are subject to constant disruptive behavior as a means to constructively evict. Some receive verbal or written threats of eviction, with no legal basis.

Yet if these acts occur there is nothing currently under Berkeley city law to allow tenants or the city to stop this behavior or to seek damages. Now more than ever, Berkeley needs a civil remedy for tenant harassment.

Fortunately, other cities in California have already adopted Anti-Harassment Ordinances which can serve as a basis for a Berkeley law.

San Francisco adopted a Tenant Harassment policy in 2008 by voter initiative (Proposition M)1,

which among other remedies granted rent decreases for verified cases of harassment. The California Court of Appeal in Larson v. City and County of San Francisco (2011) held that provisions granting the San Francisco Rent Board the power to award rent reductions were invalid under the judicial powers clause. The Larson decision did not however invalidate civil remedies for tenant harassment.

The Cities of West Hollywood2 and Santa Monica3 have also adopted Tenant Harassment Ordinances which grant civil remedies, including empowering the City Attorney to enforce and

1 http:// sfrb. org/p ro position -m-passed-11408-tenant -harassment-prohibited 2 http://qcode.us/codes/westhollywood/view.php?topic=17-5-17 52-17 52 090 3 http://www.qcode.us/codes/santamonica/view.php?topic=4-4 56&showAII=1&frames=on

I

Martin Luther King Jr. Civic Center Building • 2180 Milvia Street, 51h Floor, Berkeley, CA 94704 • Tel: (510) 981-7140 Fax: (510) 981-7144 • TDD: (510) 981-6903 • E-Mail: [email protected] • Web: www.jessearreguin.com

Page 11: CITY COUNCIL/RENT STABILIZATION BOARD Thursday, …...Thursday, March 10, 2016 – 10:00 a.m. 2001 Center Street, Second Floor – Rent Board Law Library 1. Roll Call 2. Public Comment

seek injunctive relief. Most recently, the Oakland City Council adopted a Tenant Protection Ordinance in 2014, which provides a private right of action for cases of tenant harassment4.

In reviewing ordinances in other California cities, in considering the legal authority permissible to cities under the Larson decision, and in discussions with the Rent Board's Eviction Committee, I am proposing the following elements for a Berkeley Tenant Protection Ordinance (TPO). I would appreciate the 4x4 Committee's input on the scope of a Tenant Protection Ordinance. I intend to introduce an ordinance for Council action in the coming month.

Applicability San Francisco, West Hollywood and Santa Monica's TPOs apply to rent-controlled units only.

Oakland's TPO applies to all units, including rent controlled units.

A Berkeley TPO should apply to all units, those that are rent-controlled and units constructed after 1980. This is especially important given the higher market rents that can be charged for units exempt from rent control.

However, some of the exemptions used in Oakland's TPO should be examined, specifically exemptions for non-profit owned rental housing; rental units in a Hospital, Skilled Nursing Facility or Health Facility; a non-profit facility whose primary purpose is to provide short-term treatment for alcohol, drug or other substance abuse, and housing is provided incidental to the recovery program; and transitional housing for the homeless.

Definition of Harassment Most jurisdictions have a similar definition of harassment. However, Oakland's definition (see below) is the most comprehensive and should be used in a Berkeley policy:

No Owner or such Owner's agent contractot; subcontractot; or employee, shall do any of

the following, in bad faith:

1. Interrupt terminate, or fail to provide housing services required by contract or by State,

County or municipal housing, health or safety laws, or threaten to do SO/

2. Fail to perform repairs and maintenance required by contract or by State, County or

municipal housing, health or safety laws, or threaten to do so,·

3. Fat! to exercise due dtligence in completing repairs and maintenance once undertaken

or fat! to follow appropriate industry repait; containment or remediation protocols

designed to minimize exposure to noise, dust lead paint mold asbestos, or other

building materials with potentially harmful health impacts,·

4

https://www.municode.com/library/ca/oakland/codes/code of ordinances?nodeld=TIT8HESA CH8.22REREADEV ARTVTEPROR

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4. Abuse the Owner's right of access into a rental housing unit as that right is provided by

law,·

5. Remove from the Rental Unit or Property entitled to the Tenant by Rental Agreement,

personal property, furnishings, or any other items without the prior written consent of the

Tenant, except when done pursuant to the procedure set forth in Civil Code section 1980,

et seq. (disposition of Tenant's property after termination of tenancy).

6. Influence or attempt to influence a Tenant to vacate a Rental Unit through fraud,

intimidation or coercion, which shall include threatening to report a Tenant to U.S

Immigration and Customs Enforcement, though that prohibition shall not be construed as

preventing communication with U.S Immigration and Customs Enforcement regarding an

alleged violation,·

7. Offer payments to a Tenant to vacate more than once in six (6) months, after the

Tenant has notified the Owner in writing the Tenant does not desire to receive further

offers of payments to vacate,-

8. Attempt to coerce a Tenant to vacate with offer(s) of payments to vacate which are

accompanied with threats or intirntdation. This shall not include settlement offers made in

good faith and notaccompanied by threats or intimidation in pending eviction actions,·

9. Threaten the tenant, by word or gesture, with physical harm,·

10. Substantially and directly interfere with a Tenant's right to quiet use and enjoyment of

a rental housing unit as that right is defined by California law,·

11. Refuse to accept or acknowledge receipt of a Tenant's lawful rent payment, except as

such refusal may be permitted by state law after a notice to quithas been served on the

Tenant and the time period for performance pursuant to the notice has expired,·

12. Refuse to cash a rent check for over thirty (30) days unless a written receipt for

payment has been provided to the Tenant, except as such refusal may be permitted by

state law after a notice to quit has been served on the Tenant and the time period for

performance pursuant to the notice has expired,·

13. Interfere with a Tenant's right to privacy

14. Request information that violates a Tenant's right to privacy, including but not limited

to residence or citizenship status or social security number, except as required by law or,

in the case of a social security number, for the purpose of obtaining information for the

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qualifications for a tenancy, or not release such information except as required or

authorized by law,·

15. Other repeated acts or omissions of such significance as to substantially interfere with

or disturb the comfort repose, peace or quiet of any person lawfully entitled to

occupancy of such dwelling unit and that cause, are likely to cause, or are intended to

cause any person lawfully entitled to occupancy of a dwelling unit to vacate such dwelling

unit or to surrender or waive any rights in relation to such occupancy

16. Remqving a housing service for the purpose of causing the Tenant to vacate the

Rental Unit For example, taking away a parking space knowing that a Tenant cannot find

alternative parking and must move.

Retaliation Prohibited Retaliation against a tenant for the exercise of their rights under the TPO should be prohibited. Retaliation claims should be brought in court and the court should consider the protections afforded in the TPO in evaluating a claim of retaliation.

Notice to Tenants Oakland's TPO requires notice to tenants about the TPO at the commencement of tenancy and posting of a notice in an interior common area on a form prescribed by the City. Berkeley should also include the same notice requirements.

Remedies In all TPO's, violations are enforced as civil remedies. While West Hollywood and San Francisco's policies allowed rent reductions in cases of harassment, the Larson case found that automatic rent increases for harassment are illegal.

ENFORCEMENT Enforcement can be achieved in two ways:

1. Enforcement by the City Attorney, investigating and filing an action for injunctive relief and damages. ·

2. Private right of action

Based on my review of TPOs, I believe a Berkeley ordinance should give all persons, including the City, the right to enforce the ordinance by means of a civil action. The violation of the TPO may be asserted as an affirmative defense in an unlawful detainer action.

TREBLE AND EXEMPLARY DAMAGES The ordinance should allow the award of Treble and Exemplary Damages. Oakland's TPO states that any person who "violates, aids, or incites another person to violate [the ordinance] is liable in a court action for each and every such offense for money ·damages of not less than three times the actual damages suffered by the aggrieved Tenants (including daf11ages for mental or emotional distress), or for minimum damages in the sum of one thousand dollars ($1,000.00) whichever is greater, and whatever other relief the court deems appropriate."

INJUNCTIVE RELIEF

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The ordinance should also allow for injunctive relief to enjoin a person from violating the ordinance.

ATTORNEY'S FEES Also the awarding of reasonable attorney's fees to the City or Tenant if they prevail in a civil action. A defendant owner may recover reasonable attorney's fees if the complaint brought by the tenant was devoid of merit and brought in bad faith. Court costs may be awarded to a prevailing party pursuant to state law. ·

The remedies in a Berkeley TPO should not be exclusive and may be used cumulatively with any other remedies in the law.

CRIMINAL PENALTY Santa Monica and San Francisco's TPOs set a criminal penalty of violating the ordinance, as a misdemeanor and upon conviction subject to a fine of no greater than one thousand dollars or by imprisonment for no more than six months, or by both fine and imprisonment.