Title
Summary title: Consider: 1) an Ordinance regarding Rent Review, Rent Stabilization and Limitations on Evictions, Amending the Duties of the Rent Review Advisory Committee (RRAC), and Suspending the Current Article XIV of Chapter VI regarding Rent Review; 2) Determining that Adoption of the Ordinance is not a Project Under the California Environmental Quality Act (CEQA) or, if It is a Project, the Ordinance is Exempt from CEQA; and 3) an Urgency Ordinance Extending a Temporary (Additional 22 Days) Moratorium on Rent Increases for Certain Residential Rental Properties and on Evictions from all Residential Rental Properties Except for Just Cause.
Final Passage of an Ordinance Amending the Alameda Municipal Code by (A) Adding Article XV to Chapter VI Concerning Review of Rent Increases Applicable to All Rental Units and Rent Stabilization Applicable to Certain Rental Units and Concerning Limitations on Evictions and the Payment of Relocation Assistance Applicable to All Rental Units, (B) Amending Section 2-23.4 Concerning the Duties of the Rent Review Advisory Committee, and (C) Suspending Article XIV of Chapter VI in Its Entirety; and Determining that Adoption of the Ordinance is not a Project under the California Environmental Quality Act (CEQA) or, if It is a Project, the Ordinance is Exempt under CEQA;
AND
Public Hearing to Consider Adoption of an Urgency Ordinance Extending within the City of Alameda a Temporary (an Additional 22 Days) Moratorium on Rent Increases for Certain Residential Rental Properties and on Evictions from all Residential Rental Properties Except for Just Cause. [Requires Four Votes]
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Final Passage of an Ordinance Amending the Alameda Municipal Code by (A) Adding Article XV to Chapter VI Concerning Review of Rent Increases Applicable to All Rental Units and Rent Stabilization Applicable to Certain Rental Units and Concerning Limitations on Evictions and the Payment of Relocation Assistance Applicable to All Rental Units, (B) Amending Section 2-23.4 Concerning the Duties of the Rent Review Advisory Committee, and (C) Suspending Article XIV of Chapter VI in Its Entirety; and Determining that Adoption of the Ordinance is not a Project under the California Environmental Quality Act (CEQA) or, if It is a Project, the Ordinance is Exempt under CEQA;
AND
Public Hearing to Consider Adoption of an Urgency Ordinance Extending within the City of Alameda a Temporary (an Additional 22 Days) Moratorium on Rent Increases for Certain Residential Rental Properties and on Evictions from all Residential Rental Properties Except for Just Cause [Requires Four Votes]
BACKGROUND
The City Council introduced the Rent Review, Rent Stabilization and Limitations on Evictions Ordinance (Ordinance) on February 16, 2016. There must be a second reading of the Ordinance in order for the Ordinance to be adopted. In addition, because the Ordinance, if adopted, will not take effect until March 31, 2016, 30 days after its adoption, the current urgency ordinance regarding a moratorium on certain rent increases and on evictions except for cause must be extended by 22 days or there will be no tenant protections in place for 22 days prior to the effective date of the new Ordinance.
DISCUSSION
The City Council introduced an Ordinance that provides a process for addressing rent increase disputes, regulating no cause and no fault evictions, and requiring payment of relocation benefits for no cause and no fault evictions. The action at this meeting is a second reading of that Ordinance. Adoption of an ordinance that has already been introduced, is typically a routine action, and, if the ordinance is adopted, it provides that the Ordinance will go into effect 30 days thereafter. Staff recommends that the City Council adopt the Ordinance. In addition, staff is recommending extending the current moratorium ordinance.
The moratorium ordinance that the Council adopted on January 5, 2016, extending the November 5, 2015 moratorium (as amended on December 1, 2015), expires on March 9, 2016. The City Council introduced the Rent Review, Rent Stabilization and Limitations on Evictions Ordinance on February 16, 2016, and will consider the second reading of the Ordinance on March 1, 2016. Because the Ordinance, if adopted, will go into effect on March 31, 2016, if an urgency ordinance extending the moratorium is not adopted before March 9, no rent stabilization or eviction protections would be in effect between March 9, 2016, and March 31, 2016. Staff recommends that the City Council adopt an urgency ordinance extending the moratorium to March 31, 2016. This will avoid creating a gap during which no tenant protection measures are in place.
FINANCIAL IMPACT
At the March 1, 2016 meeting, the City Council will considerappropriating General Fund monies to administer the rent review program, including during an extended moratorium period, through June 30, 2016. It is anticipated that long-term funding for the rent review program will be provided through a program fee. Staff will be returning to City Council at a later date for action on any program fee.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Ordinance adds a new Article XV to Chapter VI of the Municipal Code, suspends Article XIV to Chapter VI and amends Section 2-23.4 of the Municipal Code concerning the duties of the RRAC.
ENVIRONMENTAL REVIEW
Under the California Environmental Quality Act (CEQA) Guidelines, a project does not include any organizational or administrative activities of government that will not result in a direct or indirect physical change to the environment, CEQA Guidelines, section 15378(b)(5). Introduction and adoption of the Ordinance - a regulatory ordinance pursuant to the City’s police powers - is an administrative activity of the City to address rising rents in the City and will not result in any physical change to the environment. Therefore, the Council action to adopt the Ordinance is not a project under CEQA. Moreover, even if adoption of this Ordinance were a project as defined by CEQA (i.e., an activity that has the potential for causing a significant effect on the environment) where the activity shows with certainty that there is no possibility that the activity in question (adoption of the Ordinance) will have any significant effect on the environment, the activity is not subject to CEQA, CEQA Guidelines, section 15061(b)(3). Here, there is no evidence that this Ordinance - which simply provides policy of regulating some rents and limits the grounds for evictions - will have any effect on the environment.
Adoption of an Urgency Ordinance Extending within the City of Alameda a Temporary (an Additional 22 Days) Moratorium on Rent Increases for Certain Residential Rental Properties and on Evictions from all Residential Rental Properties Except for Just Cause is also not a project under CEQA for the same reasons stated above.
RECOMMENDATION
It is recommended that the City Council:
1. Final passage of an Ordinance Amending the Alameda Municipal Code by (A) Adding Article XV to Chapter VI concerning review of rent increases applicable to all rental units and rent stabilization applicable to certain rental units and concerning limitations on evictions and the payment of relocation assistance applicable to all rental units; (B) Amending Section 2-23.4 concerning the duties of the rent review advisory committee; and (C) suspending Article XIV of Chapter VI in its entirety;
2. Determine that Adoption of the Ordinance is not a project under the California Environmental Quality Act (CEQA) or, if it is a project, the Ordinance is exempt under CEQA; and
3. Conduct a public hearing to consider adoption of an Urgency Ordinance extending within the City of Alameda a temporary (an Additional 22 Days) moratorium on rent increases for certain residential rental properties and on evictions from all residential rental properties except for just cause [Requires Four Votes].
Respectfully submitted,
Debbie Potter, Community Development Director
Andrico Penick, Acting City Attorney
Financial Impact section reviewed,
Elena Adair, Finance Director