Title
Introduction of Ordinance Establishing an Annual General Adjustment in Rent, a Rent Registry, Banking, and a Petition Process for an Upward or Downward Adjustment of Rents. (Rent Program 265)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda's (City) current Rent Stabilization Program does not cap the amount that a landlord can increase a tenant's rent annually. Rather, the program requires that any rent increase above 5% must be heard by the Rent Review Advisory Committee (RRAC), and depending on the type of rental unit, e.g., a rental unit in a multi-unit building or a rented single-family home, the RRAC's decision is binding (the former) or non-binding (the latter).
This staff report recommends that the City Council introduce an ordinance that establishes an annual general adjustment in rent (also known as a maximum allowable rent increase or a "rent cap") and related programmatic components as follows:
* An annual general adjustment (AGA) based on 100% of the Consumer Price Index (CPI), with a 1% floor and 5% ceiling;
* "Banking," or the ability to carry-over any unused portion of the AGA to any subsequent year. However, any banked amount used in a given year cannot exceed 5% in addition to the AGA. Any banked amounts expires if the property is sold or a new tenancy is established;
* A rent registry (initial registration and re-registration when there is a new tenancy); and
* A petition process that utilizes a Hearing Officer for upward or downward rent adjustments.
The Ordinance would be uncodified but will be included in a revised Rent Review, Rent Stabilization and Limitations on Evictions Ordinance to be presented to the City Council in September.
BACKGROUND
In March 2016, the City Council adopted a Rent Review, Rent Stabilization, and Limitations on Evictions Ordinance (Ordinance 3148). In spring 2017, the City Council made a number of amendments to the Ordinance that were mostly techni...
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