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WITHDRAWN - Recommendation to Review the Rent Review Advisory Committee (RRAC) Case regarding the Rent Increase at 434 Central Avenue, Apartment 111, and Issue a Non-Binding Decision. (Rent Stabilization 265) [Note: The landlord rescinded the rent increase.]
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To: Honorable Mayor and Members of the City Council
From: Amy Wooldridge, Interim City Manager
EXECUTIVE SUMMARY
On February 4, 2019, the Rent Review Advisory Committee (RRAC) rendered a non-binding decision for a $0.00 (0.0%) rent increase at 434 Central Avenue, Apartment 111. Following the meeting, both the landlord and tenant requested that the City Council review the RRAC’s decision.
BACKGROUND
The RRAC was formed in 1979 to review tenant complaints related to residential rental increases. At that time, there were no guidelines or regulations related to the type of unit, age of building, or amount of proposed increase for complaints to be filed with the RRAC. The RRAC, however, then as now, provides a neutral forum for renters and residential property owners to present their views, evaluate rent increases, and determine whether proposed increases are equitable, and, if not, attempt to mediate a resolution acceptable to all parties.
The RRAC is made up of five volunteers: two landlords, two tenants, and one homeowner. Members are Alameda residents appointed by the Mayor and confirmed by the City Council. The duties, and to some extent the authority, of the RRAC changed when the City Council adopted the Rent Review, Rent Stabilization and Limitations on Evictions Ordinance No. 3148, effective March 31, 2016. Under this Ordinance, landlords requesting a rent increase above 5% are required to appear before the RRAC, irrespective as to the type of unit. In those cases, the RRAC renders binding decisions for multi-family units built prior to February 1995, with an option for those parties to petition the RRAC decision to a hearing officer, who would then issue a binding decision.
In other cases, the RRAC renders non-binding decisions. State law exempts certain units from a binding decision concerning rent increases, including single-family homes, condominiums, and multifamily units built after February 1995. The Ordinance also provides that when a rent increase is 5% or less, as in this case, while the tenant may request the RRAC to review the rent increase, the RRAC decision concerning such increases is non-binding. Moreover, where the RRAC has made a non-binding decision concerning a rent increase of 5% or less, the Ordinance allows either party to request that the City Council review the RRAC decision. The City Council’s authority is to then issue a non-binding decision concerning the rent increase.
DISCUSSION
The subject property, 434 Central Avenue, Apartment 111, is a two-bedroom apartment owned by the 434 Central Avenue Apartments LP and managed by Kadami Enterprises. On December 4, 2018, the tenants, Apolonio and Patricia Ramos, filed Form RP-01 with the Rent Stabilization Program requesting RRAC review of a rent increase of $104 (5.0%) (Exhibit 1), which would raise the rent from $2,099 to $2,203.
The landlord then filed Form RP-07, responding to the request for review (Exhibit 2).
On February 4, 2019, the RRAC reviewed the rent increase. A summary of the case and RRAC decision is reflected in the minutes from the February 4, 2019 RRAC hearing (Exhibit 3). (Audio recording of the meeting is currently available on the Rent Stabilization Program’s website, www.alamedarentprogram.org).
At the hearing, Mayra Mizrachi (Chief Operating Officer), Juan Velazquez (Regional Manager), and Veronica Rodriguez (Community Manager) appeared on behalf of the landlord. Patricia and Apolonio Ramos, the tenants-in-residence, appeared for themselves. Both sides were given an opportunity to address the RRAC members and provide testimony.
Ultimately, the RRAC determined by a 3-0 vote (although there are five members of the RRAC, only three members are required for a quorum; for this meeting, one member was absent and one seat was vacant) that the rent increase was excessive under the circumstances. The RRAC decided a $0.00 increase from January through December 2019 was reasonable in light of the facts presented by the parties.
On February 5, 2019, the day after the hearing, Rent Program staff issued a letter and an email to the landlords and tenants confirming the RRAC’s decision and asking for a response by February 11, 2019 (Exhibit 4).
On February 6, 2019, the tenants requested that the City Council review the RRAC’s non-binding decision via email (Exhibit 5). The tenants stated that their reason for requesting the City Council’s review is that they do not believe that their landlord will agree to the RRAC’s decision.
Additionally, on February 11, 2019, the landlord also requested that the City Council review the RRAC’s decision via email and U.S. Mail (Exhibit 6). The landlord did not provide a reason for requesting the City Council’s review.
FINANCIAL IMPACT
There is no financial impact to the City of Alameda to review the RRAC decision in this case.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The duties of the RRAC are set forth in Section 2-23.4 of the Alameda Municipal Code. The City Council’s review of the Committee’s decision is set forth in Section 6-58.95 of the Municipal Code.
ENVIRONMENTAL REVIEW
Referral of a Rent Review Advisory Committee case to the City Council is not a project subject to environmental review under the California Environmental Quality Act.
RECOMMENDATION
Conduct a review of the RRAC decision regarding the proposed rent increase at 434 Central Avenue, Apartment 111 and issue a non-binding decision.
Respectfully submitted,
Gregory Kats, Rent Stabilization Program Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Tenant Filing - Form RP-01
2. Landlord Filing - Form RP-07
3. February 4, 2019 RRAC Hearing Minutes
4. Letters - RRAC Decision
5. Tenant’s Request for Council Review
6. Landlord’s Request for Council review