HomeMy WebLinkAboutOrdinance 629 Urgency Ordinance_AB 1482 (Rent Regulations)ORDINANCE NO. 629
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MORRO BAY, CALIFORNIA, ADOPTING JUST CAUSE EVICTION
PROTECTIONS AND RENTAL RATE LIMITS EFFECTIVE
IMMEDIATELY
WHEREAS, the "Tenant Protection Act of 2019" ("AB 1482") was enacted by the Legislature on
September 11, 2019, and signed by the Governor on October 8, 2019; and
WHEREAS, effective January 1, 2020, AB 1482 will add provisions to California landlord tenant
law requiring just cause for evictions and imposing limits on rent increases; and
WHEREAS, the City Council, pursuant to its police powers, has broad authority to maintain the
public peace, health, safety, and general welfare of its community and to preserve the quality of life for
its residents; and
WHEREAS, Government Code Section 36937(b) authorizes the adoption of an urgency
ordinance for the immediate preservation of the public peace, health or safety; and
WHEREAS, housing instability threatens the public peace, health, safety, and general welfare
as eviction from one's home can lead to prolonged homelessness; increased residential mobility; loss
of community; strain on household finances due to the necessity of paying rental application fees and
security deposits; stress and anxiety experienced by those displaced; increased commute times and
traffic impacts if displaced workers cannot find affordable housing within the city in which they work;
and interruption of the education of children in the home; and
WHEREAS, eviction creates particular hardships for individuals and household of limited
means, given the shortage of housing, particularly affordable housing, within the City of Morro may and
San Luis Obispo region generally; and
WHEREAS, in advance of the implementation of AB 1482, the City has become aware of no-
fault terminations, eviction notices, and threats of eviction throughout the state; and
WHEREAS, the City desires to prohibit exorbitant rental rate increases as well as evictions
without just cause during the period of time before AB 1482 becomes effective; and
WHEREAS, the City Council finds and determines that regulating the relations between
residential landlords and tenants will increase certainty and fairness within the residential rental market
in the City and thereby serve the public peace, health, safety, and general welfare; and
WHEREAS, the urgency ordinance would essentially establish the rental protections that will go
into effect on January 1, 2020 under AB 1482 immediately within the City of Morro Bay to prohibit an
owner of residential property from annually increasing rent more than five percent (5%) plus the
percentage change in the cost of living, or 10%, whichever is lower; and
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WHEREAS, an urgency ordinance that is effective immediately is necessary to avoid the
immediate threat to public peace, health, safety, or welfare, as failure to adopt this urgency ordinance
could result in the displacement of the City's residents and community members.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF MORRO BAY ORDAINS AS
FOLLOWS.
SECTION 1. INCORPORATION OF RECITALS. The City Council finds that the forgoing
recitals and the staff report presented with this ordinance are true and correct and are incorporated in
the ordinance by this reference and adopted as findings of the City Council,
SECTION 2. FINDINGS. The City Council herby finds, determines and declares that this
urgency ordinance, adopted pursuant to Government Code Sections 36934 and 36937, is necessary
because:
(a) Housing, particularly affordable housing, is difficult to procure in the Morro Bay area. Rent
increases and evictions without just cause occurring in advance of the effectiveness of AB
1482 would destabilize the housing market and result in the loss of affordable housing.
(b) For the immediate preservation of the public peace, health, safety, and general welfare, the
City Council finds that it is necessary to adopt an ordinance regulating rental rate increases
and just cause evictions, for all reasons set forth in the recitals.
(c) Without the imposition of this ordinance, rent rate increases and evictions without cause
may result in the displacement of residential tenants who could be forced to find new
housing in the ever -more expensive housing market before a non -urgency ordinance or AB
1482 would become effective, and would significantly increase the risk of City residents
becoming homeless.
(d) There is a current and immediate threat to the public peace, health, safety, and general
welfare %J the City and its community due in part to the adoption of AB 1482 which increases
the risk of tenant displacement prior to the effective date of the bill, thereby necessitating the
immediate enactment of this urgency ordinance in order to ensure that tenants are not
turned out to their homes without just cause.
SECTION 3. URGENT NEED. Based on the foregoing recitals and findings, this ordinance is
urgently needed for the immediate preservation of the public peace, health, safety, or welfare.
SECTION 4. JUST CAUSE EVICTION PROTECTIONS.
(a) Notwithstanding any other law, after a tenant has continuously and lawfully occupied a
residential real property for twelve (12) months, the owner of the residential real property
shall not terminate the tenancy without just cause, which shall be stated in the written notice
to terminate tenancy. If any additional adult tenants are added to the lease before an
existing tenant has continuously and lawfully occupied the residential real property for
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twenty-four (24) months, then this section shall only apply if either of the following are
satisfied:
(1) All for the tenants have continuously and lawfully occupied the residential real
property for twelve (12) months or more.
(2) One or more tenants have continuously and lawfully occupied the residential real
property for twenty-four (24) months or more.
(b) For the purposes of this section, "just cause" includes either of the following:
(1) At -fault just cause, which is any of the following:
(A) Default in the payment of rent.
(B) A breach of a material term of the lease, as described in paragraph (3) of
Section 1161 of the California Code of Civil Procedure, including, but not limited to,
violation of a provision of the lease after being issued a written notice to correct the
violation.
(C) Maintaining, committing, or permitting the maintenance or commission of a
nuisance as described in paragraph (4) of Section 1161 of the California Code of
Civil Procedure.
(D) Committing waste as described in paragraph (4) of Section 1161 of the
California Code of Civil Procedure.
(E) The tenant had a written lease that terminated on or after December 10,
2019, and after a written request or demand from the owner, the tenant has refused
to execute a written extension or renewal or the lease for an additional term of similar
duration with similar provisions, provided that those terms do not violate this section
or any other provision of law.
(F) Criminal activity by the tenant on the residential real property, including any
common areas, or any criminal activity or criminal threat, as defined in subdivision
(a) of Section 422 of the California Penal Code, on or off the residential real property,
that is directed at any owner or agent of the owner of the residential real property.
(G) Assigning or subletting the premises in violation of the tenant's lease, as
described in paragraph (4) of Section 1161 of the California Code of Civil Procedure.
(H) The tenant's refusal to allow the owner to enter the residential real property
as authorized by Sections 1101.5 and 1954 of the California Civil Code and Sections
13113.7 and 17926.1 of the California Health and Safety Code.
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(1) using the premises for an unlawful purpose as described in paragraph (4) of
Section 1161 of the California Code of Civil Procedure.
(J) The employee, agent, or licensee's failure to vacate after their termination as
an employee, agent, or licensee as described in paragraph (1) of Section 1161 of the
California Code of Civil Procedure.
(K) When the tenant fails to deliver possession of the residential property after
providing the owner written notice as provided in Section 1946 of the California Civil
Code of the tenant's intention to terminate the hiring of the real property, or makes a
written offer to surrender that is accepted in writing by the landlord, but fails to deliver
possession at the time specified it that written notice as described in paragraph (5) of
Section 1161 of the California Code of Civil Procedure.
(2) No-fault just cause, which includes any of the following:
(A) Intent to occupy the residential real property by the owner or their spouse,
domestic partner, children, grandchildren, parents, or grandparents.
(B) Withdrawal of the residential real property from the rental market.
(C)
(i) The owner complying with any of the following:
(I) An order issued by a government agency or court relating to
habitability that necessitates vacating the residential real property.
(II) An order issued by a government agency or court to vacate the
residential real property.
(III) A local ordinance that necessitates vacating the residential
real property.
(ii) If it is determined by any government agency or court that the tenant is
at fault for the condition or conditions triggering the order or need to
vacate under clause (i), the tenant shall not be entitled to relocation
assistance as outlined in paragraph (3) of subdivision (d).
(i) Intent to demolish or to substantially remodel the residential real
property.
) For the purposes of this subparagraph, "substantially remodel" means
the replacement or substantial modification of any structural, electrical,
plumbing, or mechanical system that requires a permit from a
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governmental agency, or the abatement of hazardous materials, including
lead -based paint, mold, or asbestos, in accordance with applicable
federal, state, and local laws, that cannot be reasonably accomplished in
a safe manner with the tenant in place and that requires the tenant to
vacate the residential real property for at least thirty (30) days. Cosmetic
improvements alone, including painting, decorating, and minor repairs, or
other work that can be performed safely without having the residential
real property vacated, do not qualify as substantial rehabilitation.
(c) Before an owner of residential real property issues a notice to terminate a tenancy for just
cause that is a curable lease violation, the owner shall first give notice of the violation to the
tenant with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of
the California Code of Civil Procedure. If the violation is not cured within the time period set
forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be
served to terminate the tenancy.
(d)
(1) For a tenancy for which just cause is required to terminate the tenancy under
subdivision (a), if an owner of residential real property issues a termination notice based
on a no-fault just cause description in paragraph (2) of subdivision (b), the owner shall,
regardless of the tenant's income, at the owner's option, do one of the following:
(A) Assist the tenant to relocate by providing a direct payment to the tenant as
described in paragraph (3) of this subdivision (d).
(B) Waive, in writing, the payment of rent for the final month of the tenancy, prior
to the rent becoming due.
(2) If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner
shall notify the tenant of the tenant's right to relocation assistance or rent waiver
pursuant to this section. If the owner elects to waive the rent for the final month of the
tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the
amount of rent waived and that no rent is due for the final month of the tenancy.
(3)
(A) The amount of relocation assistance or rent waiver shall be equal to one (1)
month of the tenant's rent that was in effect when the owner issued the notice to
terminate the tenancy. Any relocation assistance shall be provided within fifteen
(15) calendar days of service of the notice.
(B) If a tenant fails to vacate after the expiration of the notice to terminate the
tenancy, the actual amount of any relocation assistance or rent waiver provided
pursuant to this subdivision shall be recoverable as damages in an action to
recover possession.
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(C) The relocation assistance or rent waiver required by this section shall be
credited against any other relocation assistance required by any other law.
(4) An owner's failure to strictly comply with this subdivision shall render the notice of
termination void.
(e) This section shall not apply to the following types of residential real properties or residential
circumstances:
(1) Transient and tourist hotel occupancy as defined in subdivision (b) of Section 1940 of
the California Civil Code.
(2) Housing accommodations in a nonprofit hospital, religious facility, extended care
facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of
the California Health and Safety Code, or an adult residential facility, as defined in
Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by
the California State Department of Social Services.
(3) Dormitories owned and operated by an institution of higher education or a
kindergarten and grades 1 to 12, inclusive, school.
(4) Housing accommodations in which the tenant shares bathroom or kitchen facilities
with the owner who maintains their principal residence at the residential real property.
(5) Single-family owner -occupied residences, including a residence in which the owner -
occupant rents or leases no more than two (2) units or bedrooms, including, but not
limited to, an accessory dwelling unit or a junior accessory dwelling unit.
(6) A duplex in which the owner occupies one of the units as the owner's principal place
of residence at the beginning of the tenancy, so long as the owner continues in
occupancy.
(7) Housing that has been issued a certificate of occupancy within the previous fifteen
(15) years.
(8) Residential real property that is alienable separate from the title to any other dwelling
unit, provided that the following applies:
(A) The owner is not any of the following:
(i) A real estate investment trust, as defined in Section 856 of the Internal
Revenue Code.
) A corporation.
i) A limited liability company in which at least one member is a
corporation.
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( 3) The tenants have been provided written notice that the residential property is
exempt from this section.
(9) Housing restricted by deed, regulatory restriction contained in an agreement with a
government agency, or other recorded document as affordable housing for persons and
families of very low, low, or moderate income, as defined in Section 50093 of the
California Health and Safety Code, or subject to an agreement that provides housing
subsidies for affordable housing for persons and families of very low, low, or moderate
income, as defined in Section 50093 of the California Health and Safety Code or
comparable federal statutes.
(f) The provisions of this section shall apply to all residential rental units not specified as
exempt from its requirements, including where a notice to vacate or quit any such rental unit
has been served prior to, as of, or after the effective date of this urgency ordinance but
where an unlawful detainer judgment has not been issued as of the effective date of this
urgency ordinance.
(g) Any waiver of the rights under this section shall be void as contrary to public policy.
(h) For the purposes of this section, the following definitions shall apply:
(1) "Owner" and "residential real property" shall have the same meaning as those terms
are defined in California Civil Code Section 1954.510
(2) "Tenancy" means the lawful occupation of residential real property and includes a
lease or sublease.
SECTION 5. RENTAL RATE LIMIT PROVISIONS.
(a)
(1) To the extent permitted under California Civil Code Section 1954.52, and subject to
subdivision (b), an owner of residential real property shall not, over the course of any month period, increase the gross rental rate for a dwelling or a unit more than five (5)
percent plus the percentage change in cost of living, or ten (10) percent, whichever is
lower, of the lowest gross rental rate charged for that dwelling or unit at any time during
the twelve (12) months prior to the effective date of the increase. In determining the
lowest gross rental amount pursuant to this section, any rent discounts, incentives,
concessions, or credits offered by the owner of such unit of residential real property and
accepted by the tenant shall be excluded. The gross per -month rental rate and any
owner -offered discounts, incentives, concessions, or credits shall be separately listed
and identified in the lease or rental agreement or any amendments to an existing lease
or rental agreement.
(2) If the same tenant remains in occupancy of a unit of residential real property over any
12-month period, the gross rental rate for the unit of residential real property shall not be
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increased in more than two increments over that 12-month period, subject to the other
restrictions of this subdivision governing gross rental rate increase.
(b) For a new tenancy in which no tenant from the prior tenancy remains in lawful possession of
the residential real property, the owner may establish the initial rental rate not subject to
subdivision (a). Subdivision (a) is only applicable to subsequent increases after that initial
rental rate has been established.
(c) A tenant of residential real property subject to this section shall not enter into a sublease
that results in a total rent for the premises that exceeds the allowable rental rate authorized
by subdivision (a). Nothing in this subdivision authorizes a tenant to sublet or assign the
tenant's interest where otherwise prohibited.
(d) This section shall not apply to the following residential real properties:
(1) Housing restricted by deed, regulatory restriction contained in an agreement with a
government agency, or other recorded document as affordable housing for persons and
families of very low, low, or moderate income, as defined in Section 50093 of the
California Health and Safety Code, or subject to an agreement that provides housing
subsidies for affordable housing for persons and families of very low, low, or moderate
income, as defined in Section 50093 of the California Health and Safety Code or
comparable federal statutes.
(2) Dormitories constructed and maintained in connection with any higher education
institution within the state for use and occupancy by students in attendance at the
institution.
(3) Housing subject to rent or price control through a public entity's valid exercise of its
police power consistent with Chapter 2.1 (commencing with Section 1954.50) of the
California Civil Code that restricts annual increases in the rental rate to an amount less
than that provided in subdivision (a).
(4) Housing that has been issued a certificate of occupancy within the previous 15 years.
(5) Residential real property that is alienable separate from the title to any other dwelling
unit, provided that the following applies:
(A) The owner is not any of the following:
(i) A real estate investment trust, as defined in Section 856 of the Internal
Revenue Code.
) A corporation.
i) A limited liability company in which at least one member is a
corporation.
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( 3) The tenants have been provided written notice that the residential property is
exempt from this section.
(6) A duplex in which the owner occupied one of the units as the owner's principal place
of residence at the beginning of the tenancy, so long as the owner continues in
occupancy.
(e) An owner shall provide notice of any increase in the rental rate, pursuant to subdivision (a),
to each tenant in accordance with California Civil Code Section 827.
(f) For the purposes of this section, the following definitions shall apply:
(g)
(1) "Owner" and "residential real property" shall have the same meaning as those terms
are defined in Section California Civil Code Section 1954.51.
(2) "Percentage change in the cost of living" means the percentage change from April 1
of the prior year to April 1 of the current year in the regional Consumer Price Index for
the region where the residential real property is located, as published by the United
States Bureau of Labor Statistics. If a regional index is not available, the California
Consumer Price Index for All Urban Consumers for all items, as determined by the
Department of Industrial Relations, shall apply.
(3) "Tenancy" means the lawful occupation of residential real property and includes a
lease or sublease.
(1) This section shall apply to all rent increases subject to subdivision (a) for rent due on
or after December 10, 2019.
(2) In the event that an owner has sent any rent increase notice on or after September 1,
2019, to increase the rent due on or after December 10, 2019, by an amount greater
than that permitted under subdivision (a), such increase shall be void and the applicable
rent shall be the rent as of September 1, 2019, plus the maximum permissible increase
under subdivision (a).
(h) Any waiver of the rights under this section shall be void as contrary to public policy.
.SECTION 6. DEFINITIONS. Undefined terms in Sections 4 and 5, where not clearly defined by
context, shall have the meaning applicable to such terms in Chapter 2 of Title 5 of Part 4 of Division 3
of the Civil Code (codified as Section 1940 et seq.).
SECTION 7. CEQA. In accordance with California Environmental Quality Act guidelines
section 15061(b)(3), adoption of this urgency ordinance is exempt from the provisions of the California
Environmental Quality Act because there is no possibility that the implementation of this ordinance may
have significant effects on the environment. This ordinance will apply tenant protections to existing
residential units for a limited period of time.
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SECTION 8. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining
portions of this ordinance. The City Council hereby declares that it should have adopted the ordinance
and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one
or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
SECTION 9. EFFECTIVE DATE. This uncodified Urgency Ordinance is enacted pursuant to
the authority conferred upon the City Council of the City of Morro Bay by Government Code Sections
36934 and 36937 and shall be in full force and effect immediately upon its adoption by a four -fifths (4/5)
vote of the City Council. This Urgency Ordinance shall remain in effect until 11:59 p.m. on
December 31, 2019, at which time thereafter AB 1482 will become effective and govern the
subject matter of this ordinance.
SECTION 10. CERTIFICATION. The City Clerk shall certify to the adoption of this ordinance,
and shall cause the same to be posted in the manner required by law.
THIS URGENCY ORDINANCE NO. 629 WAS DULY PASSED, APPROVED, AND ADOPTED
at a regular meeting of the City Council of the City of Morro Bay, held on the 10th day of December
20191 by motion of Council Member Addis and seconded by Council Member McPherson, by the
following vote:
AYES: Addis, Davis, Heller, McPherson
NOES: None
ABSENT: None
RECUSED: Headding
ATTEST:
DAKA SWANSON, City Clerk
APPROVED AS TO FORM:
V7
CHRIS F. NEUMEY�2, City Arney
Ordinance No. 629
Page 10 of 11
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO )
CITY OF MORRO BAY )
I, Dana Swanson, CITY CLERK OF THE CITY OF MORRO BAY, DO HEREBY CERTIFY that
the foregoing Ordinance Number 629 was duly adopted by the City Council of the City of Morro Bay at
a regular meeting of said Council on the 10th day of December, 2019, and that it was so adopted by the
following vote:
AYES:
NOES:
ABSENT:
RECUSED
Addis, Davis, Heller, McPherson
None
None
Headding
IN WITNESS WHEREOF I have hereunto set my hand and affixed the official seal of the City of
Morro Bay, California, this �ay of 12,(C,
NA SWANSON, City Clerk
Ordinance No. 629
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