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November 14, 2017 - City Council Meeting

On Tuesday, November 14, 2017, the City Council took action on the following agenda items summarized below:

Amendment to the Tenant Protection Ordinance (TPO):  

  • Include dependent child; foster child; minor in the tenant's care; spouse or domestic partner; or parent of a tenant under exempted categories of additional family members allowed under TPO's Just Cause reason for material or habitual rental agreement violation; and
  • Reduce the maximum occupancy limit for adults to the number allowed by the rental agreement or two adults per bedroom, whichever is greater. 

Revised Apartment Rent Ordinance (ARO) and Regulations:

  • Retain the limit on annual general increases as 5% with no banking;
  • Implement a capital improvement pass through petition process for specified capital improvements;
  • Defer action on Ratio Utility Billing System (RUBS) to March 2018 with additional research from staff;
  • Continue to exclude duplexes from the ARO;

  • Allow tenant buyout agreements; and
  • Maintain the rent registry as recommended by staff.  

Staffing Plan and Associated Fee Increase:

  • Approve Phase I and Phase II of the proposed staffing plan for the Rental Rights and Referrals Program with a fee increase effective on January 1, 2018.

The second reading of the Tenant Protection Ordinance and Apartment Rent Ordinance took place Tuesday, November 28, 2017, and Council approved the changes above so the ordinances will go into effect on December 28, 2017. In the weeks following, staff will begin implementing a plan to reach out to constituents with informational materials and opportunities for additional assistance and education.

Please refer to the following documents approved through these meetings:


October 24, 2017 - City Council Meeting

The City Council approved an Ordinance amending the Interim Ordinance to extend the termination date until after the effective date of a revised Apartment Rent Ordinance. 

October 5, 2017 - Special HCDC Meeting Held


The Housing & Community Development Commission held a special meeting on October 5, 2017 to discuss the Tenant Protection Ordinance and the revised Apartment Rent Ordinance.  The amended Tenant Protection Ordinance and memorandum are available for review.  The memo outlining the changes to the draft Apartment Rent Ordinance and Regulations is available for review. The report includes proposed staff changes to the Ordinance as a result of feedback received during the public comment period.  The draft Apartment Rent Ordinance (ARO) and Regulations were available for public review and comment from August 14, 2017 to September 22, 2017.

The most up-to-date versions of the Apartment Rent Ordinance and Regulations have been published.

September 14, 2017 - HCDC Meeting 

The following items will be discussed at the September 14 Housing & Community Development Commission meeting:

Initial review and discussion of Draft Apartment Rent Ordinance and Regulations, Staffing Plan and Fee Analysis, and additional items (R. VanderVeen, Housing Department) ACTION: Accept staffreport and provide recommendations to Staff on:

  1. Item VI-B HCDC Memo
  2. Attachment A - City Council Direction
  3. Attachment B - Cover Memo, Draft Apartment Rent Ordinance, Draft Regulations Release
  4. Attachment C - Capital Improvements of Other Cities
  5. Attachment D - Staffing Plans
  6. Attachment E - Fee Summary
  7. Attachment F - List of Public Meetings
  8. Item VI-C Annual Report


Tenant Protection Ordinance and Apartment Rent Ordinance Community Meetings

Four public meetings on the Tenant Protection Ordinance and potential changes to the Apartment Rent Ordinance were held on June 26, July 11, July 12, and July 18. Public comments submitted 
on these topics as of July 31, 2017, are available for review

Public comment is now available regarding the Apartment Rent Ordinance draft that was released on August 15, 2017, and submitted as of September 25, 2017.

Public comment is now available regarding the Apartment Rent Ordinance draft and amendments to the Tenant Protection Ordinance received from September 26 to October 28, 2017.


June 9, 2017 - Ellis Act & Tenant Protection Ordinances Posted


The Housing Department released an Information Memorandum explaining specific provisions of the Tenant Protection Ordinance, and includes a Frequently Asked Questions sheet.
 
The following version of the Tenant Protection Ordinance was posted for City Council consideration on April 18, 2017:

4.3 Actions Related to Tenant Protection Ordinance

(a) Approve an ordinance adding Part 12 to Chapter 17.23 of the San José Municipal Code to include a Tenant Protection Ordinance limiting no-cause evictions and establishing requirements for property owners to state a Good Cause for eviction in certain limited circumstances. 

 

(b) Direct the City Manager to instruct staff to incorporate into the forthcoming revised Apartment Rent Ordinance, a requirement that a property owner offer a renewable one-year written lease to tenants.

 

(c) Direct the City Manager to instruct staff to return with an amendment to Ordinance No. 28730 (the Interim Apartment Ordinance) to remove the exemption for units with rental subsidies and to make that change to the forthcoming revised Apartment Rent Ordinance.

 

(d) Direct the City Manager to instruct staff to research different relocation benefits and return to Council with a report on the potential to unify existing policies of the City.

 

CEQA:  Not a Project, File No. PP10-068(c), General Procedure & Policy Making, Code or Policy change that involves no changes in the physical environment.  (Housing) * TO BE HEARD LAST NOT BEFORE 3:30 P.M.

 

Memorandum

Supplemental Memorandum

Memorandum from Councilmembers Peralez and Rocha

Memorandum from Councilmember Khamis

Memorandum from Councilmembers Davis and Diep

Memorandum from Councilmembers Arenas and Jimenez

Memorandum from Councilmember Rocha

Attachment A

Attachment B

Attachment C

Attachment D

Attachment E

Ordinance - Part (a)

Letter(s) from the Public

Presentation

 

 The following version of the Tenant Protection Ordinance was posted for City Council consideration on May 9, 2017:

4.3 Actions Related to a Tenant Protection Ordinance with Just Cause Protections

(a) Approve an ordinance adding Part 12 to Chapter 17.23 of the San José Municipal Code to include a Tenant Protection Ordinance that restricts no-cause evictions and establishes requirements for landlords to state a just cause for eviction. 

 

(b) Adopt an Urgency Ordinance adding Part 12 to Chapter 17.23 of the San José Municipal Code to include a Tenant Protection Ordinance that restricts no-cause evictions and establishes requirements for landlords to state a just cause for eviction.  Please note: Approval of this item requires 8 or more affirmative votes (2/3).

 

CEQA:  Not a Project, File No. PP10-068(c), General Procedure & Policy Making, Code or Policy change that involves no changes in the physical environment.  (Housing) TO BE HEARD LAST

 

Memorandum

Supplemental Memorandum

Memo from Councilmember Arenas and Jimenez

Memo from Mayor Liccardo and CM Jones

Memo from Vice Mayor Carrasco and CMs Peralez and Rocha

Memorandum from Councilmember Rocha

Ordinance - Part (a)

Ordinance - Part (b)

Letter(s) from the Public



Draft Ellis Act & Tenant Protection Ordinances Released 

The City Council directed the Department of Housing to develop these ordinances when they voted to amend the Apartment Rent Ordinance in April and May 2016. The draft ordinances were written with input collected in several meetings by the public and from interested stakeholders, a review of programs and ordinances in other cities, and a thorough legal review. 

The Ellis Act

The Ellis Act Ordinance creates a process that must be followed when a property owner is deciding to no longer rent their rental property and evict all tenants. This ordinance creates a uniform process and timeline for notifying tenants of this change, as well as relocation benefits that must be provided to impacted tenants. To comment on this draft ordinance, please email e-mail

Draft Ordinance
Public Comment File (as of 3/3/2017)
Public Comment File (as of 4/6/2017)

 
The Tenant Protection Ordinance

The Tenant Protection Ordinance was originally titled the "Anti-Retaliation and Protection Ordinance." This ordinance provides protections from eviction for tenants experiencing poor living conditions because of actions or behaviors exhibited by a property owner or manager. To comment on this draft ordinance, please email e-mail.

Draft Ordinance
Public Comment File (as of 3/3/2017) 
Public Comment File (as of 4/6/2017)
Public Comment File (as of 5/9/2017)

May 9, 2017 - City Council Meeting

The City Council approved the Tenant Protection Ordinance restricting no- cause evictions and establishing requirements for landlords to state a just cause for eviction.
 Council also approved an ordinance amending the Interim Ordinance to extend the termination date of the Interim Ordinance until December 31, 2017 and to add a provision amending the definition of Rental Unit to eliminate the exemption for rental apartments with tenants whose rent is subsidized by a government agency.
Council gave direction on the following items:
  • Return to the City Council with a strategy for educating tenants and landlords on the Tenant Protection Ordinance.
  • Identify a means for funding legal services for low income tenants needing assistance in effectuating their “just cause” rights.
  • Return to the City Council with an amendment to the Tenant Protection Ordinance to address criminal activity be addressed a just cause and prohibit landlords from threatening notification of immigration authorities of their tenants’ immigration status.

April 18, 2017 - City Council Meeting

The City Council approved the Ellis Act Ordinance to provide procedures for an owner’s withdrawal of rent stabilized apartments from the rental market including requirements for noticing, relocation benefits, the tenant rights to return, and control of rents for apartments constructed or returned to the rental market within five years of withdrawal.
Council gave direction on the following items:
  • Staff to research the impact of subjecting all replacement units under the Ellis Act Ordinance to re-control by the Ellis Act and provide additional research regarding existing Ellis Act Ordinances throughout California.
    • Staff to incorporate into the ARO a requirement that a property owner offer a renewable one-year written lease to tenants.
  • Staff to return with an Ordinance to remove the ARO exemption for apartments with tenants whose rent is subsidized by any government agency.
  • Staff to prepare a policy for Council consideration to tie the annual allowed rent increase for rent controlled units to the Consumer Price Index and allowing banking, consistent with the staff recommendation at the April 19, 2016 meeting.
  • Staff to return with a work plan to evaluate whether duplexes should be added to the ARO.

January 31, 2017 - City Council Meeting

City Council directed the Administration to maintain a rent registry, rather than a unit registry and the remainder of the audit of the ARO as recommended by staff, was approved, including elimination of the banking provision.

October 18, 2016 - City Council Meeting

City Council adopted an Ordinance extending the termination date for the Interim Ordinance to June 30, 2017.


August 30, 2016 - City Council Meeting

City Council approved amendments to the existing regulations for the Interim Ordinance providing procedures for the fair return petition process.


May 10, 2016 - City Council Meeting

City Council adopted the Interim Ordinance effective through January 1, 2017. The Interim Ordinance reduced the annual allowable rent increase on tenants from 8% to 5%, eliminated rent increases available through the pass-through provisions (including debt-service, capital improvement, rehabilitation, and operations & maintenance) and implemented a fair return petition process.

Council directed Staff on the following items:
  • Return with an ordinance addressing Ellis Act evictions from ARO apartments, demolition of ARO units, and conversion of ARO apartments to condominiums.
  • Return with a plan to increase staffing to sufficiently administer, monitor and reinforce requirements of ARO.

April 19, 2016 - Final Staff Recommendations Released

On April 19th the Housing Department released the final staff recommendations for changes to the Apartment Rent Ordinance. 

Also, the City Council heard public comment and directed staff to make the following amendments to the Apartment Rent Ordinance:

  1. Annual Allowable Increase: Reduce 8% annual increase to 5% annual increase; allow an owner to bank up to 10% of unused annual increases; when the annual allowable, banked increases, and capital improvement cost pass-through are combined, limit the total annual increase to 8%.
  2. Debt Service Pass-Through: Eliminate the debt service pass-through.
  3. Capital Improvement Cost Pass-Through: Develop a list of major capital improvements that can be approved through a streamlined, administrative process which limits hearings only to instances when a tenant files a petition.
  4. Rent Registry: Develop a full rent registry, utilizing technology to the greatest extent possible, to allow for full monitoring, enforcement and compliance with the ordinance.
  5. Anti-Retaliation & Protection Ordinance: Develop and implement an Anti-Retaliation & Protection Ordinance, which provides typical "Good Cause for Eviction" protections to tenants who have reported substantiated code violations after their owner or property manager have failed to make repairs. Staff was directed to return to the City Council with a report of no-cause evictions by the end of 2017.   
  6. Urgency Ordinance to Temporarily Pause Rent Increases: Bring an urgency ordinance that temporarily pauses rents for Council consideration on May 10th, 2016.

View the full synopsis of Item 4.1 with vote outcomes here
Watch a recording of the meeting here.

On May 10, 2016, the City Council heard public comment on the following items which were continued from the April 19, 2016, meeting:
  1. Interim Ordinance: The City Council approved an interim ordinance to reduce the annual allowable increase to 5% beginning June 17, 2016.
  2. Ellis Act, Demolition & Condominium Conversion Ordinances: Write an Ellis Act ordinance to address the process to be followed for owners of ARO apartments subject to the ARO seeking to remove their building from the rental market. Review and return to Council with potential changes to the Demolition and Condominium Conversion Ordinances. 
  3. Staffing Plan: Direct staff to review the City's condominium conversion provisions in Chapter 20.170 and coordinate with PBCE as needed regarding updating those provisions in order to address the conversion of ARO apartments.

View the full synopsis of Item 4.4 and 4.5 with vote outcomes here.
Watch a recording of the meeting here
November 30, 2015 - Status Update on ARO Process Released


On November 30th the Housing Department released an informational memo which provides a status update and overview of the ARO process. 

September 1, 2015 - City Council Approval of Workplan

On September 1, 2015, the San José City Council accepted staff's proposed workplan with additional direction to make some changes to the proposed outreach process.  The City Council directed staff to modify the outreach process by creating an Advisory Committee composed of tenants, property owners/managers and advocates for both groups, instead of keeping the two groups on parallel but separate tracks as originally proposed by staff.

The materials from the September 1, 2015 Council meeting are available below:

Workplan to Modify the Apartment Rent Ordinance (ARO) and the Rental Rights and Referrals Program (RRRP)
Supplemental Memo
•Powerpoint Presentation
Memo from Mayor and Councilmembers Carrasco, Jones, Peralez, and Rocha
Memo from Vice Mayor and Councilmember Khamis
Letter to Agency
Memo from Councilmember Peralez

To watch the recording of this meeting, visit the Public Meeting Archive website and click ahead to Item 4.3 which was the last item heard at the meeting.

June 23, 2015 - Council Ordinance Priority Setting


On June 23, 2015, the City Council identified potential changes to the Rental Dispute Mediation and Arbitration Ordinance as its second highest priority to be addressed in Fiscal Year 2015-16.

To view all documents related to this decision, visit the Council Agenda, Item 3.22.  To watch the recording of this meeting, visit the Public Meeting Archive website and click ahead to Item 3.22.

June 16, 2015 - City Council: Program and Ordinance Review


On June 16, 2015, the San José City Council accepted staff 's report on potential modifications to the Rental Rights and Referrals Program and the Rental Dispute Mediation and Arbitration Ordinance and referred the item to the June 23, 2015 Ordinance Priority Setting exercise. On June 23, 2015, the City Council identified potential changes to the Rental Dispute Mediation and Arbitration Ordinance as it's second highest priority to be addressed in Fiscal Year 2015-16.

Potential changes include, but are not limited to:
  • Reducing the allowable rent increase;
  • Modifying the allowed debt-service pass-through;
  • Exploring a just cause evictions ordinance (an ordinance limiting the grounds for residential eviction);
  • Consider related items as discussed in the memorandum; and
  • Evaluate the staffing needed to monitor and enforce the Ordinance.

To view all other documents related to this decision, visit the Council Agenda, Item 4.3.  To watch the recording of this meeting, visit the Public Meeting Archive website and click ahead to item 4.3 which was the last item heard at the meeting.

Staff plans to return to the City Council for the approval of a proposed workplan. This page will provide up-to-date information on the 2015 Apartment Rent Ordinance.  Visit the Apartment Rent Ordinance website which provides information on the existing Apartment Rent Ordinance.