Title
Adoption of an Uncodified Urgency Ordinance Imposing a Temporary Moratorium on Submitting Capital Improvement Plan Applications for Properties that have 25 or More Rental Units and Directing the Rent Program Administrator to Reject All Capital Improvement Plan Applications Filed On or After April 27, 2023; and
Introduction of an Uncodified Ordinance to Impose a Temporary Moratorium on Submitting Capital Improvement Plan Applications for Properties that have 25 or More Rental Units and Directing the Rent Program Administrator to Reject All Capital Improvement Plan Applications Filed On or After April 27, 2023.
The Ordinances are exempt from review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Sections 15378 (not a project) and 15061(b)(3) (no significant environmental impact). (City Attorney)
Body
To: Honorable Mayor and Members of the City Council
From: Yibin Shen, City Attorney
EXECUTIVE SUMMARY
Currently the City's Rent Control Ordinance's Capital Improvement Plan Policy, requires the Rent Program Administrator to accept and approve Capital Improvement Plan (CIP) applications, regardless of the number of rental units affected by the application, so long as the application meets all objective legal requirements, including that the application covers authorized construction work (e.g., substantial re-roofing or foundation work) under the Policy. If the Rent Program Administrator approves such a Plan, a landlord may impose on the tenants a "pass through" of the amortized cost of the capital improvements, which can be thought of as a rent increase, in addition to any other allowed rent increases, including banked rent increases and annual general adjustments. Imposition of a CIP Pass Through is treated as a Rent Increase for purposes of AMC Section 6-58.50 (limiting Rent Increases to once every 12 months), except that a CIP Pass Through is not subject to compounding through Annual General Adjustments, thus providi...
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