Title
Adoption of Resolution Adopting a Tier-Structured Annual Rent Program Fee for the City's Rent Control Ordinance and Implementing Regulations, which Establishes the Proposed Annual Rent Program Fee for Fiscal Year 2021-22 of $148 for Fully Regulated Units and $100 for Partially Regulated Units; Allocates General Fund Money to Pay the Rent Program Fee for Fiscal Year 2021-22 on Behalf of Landlords Participating in the Section 8 Program; and Extends the Due Date for Rent Program Fees for Fiscal Year 2021-22 from July 31, 2021 to September 30, 2021, with Penalties and Interest on Any Late Fees Not Accruing Until September 30, 2021. (Community Development 265) [Not heard on April 20, 2021]
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
After City Council's adoption of the amended Rent Ordinance (Ordinance No. 3250) in 2019, staff secured services from SCI Consulting Group (SCI) to complete a Rent Program Regulatory Fee Study for Fiscal Year (FY) 2020-21 (Fee Study) to determine the program costs under the amended Ordinance. In 2020, based on the Fee Study, City Council adopted a tiered fee structure: 1) one for rental units subject to all provisions of the Ordinance (Fully Regulated Units); and 2) another for rental units exempt for the rent control provisions (Partially Regulated Units). The Fee Study also recommended using the Consumer Price Index (CPI) to adjust the Rent Program Fee in the absence of any material and substantive changes to the Ordinance.
Consistent with last year's Fee Study and for the reasons set forth below, staff recommends the continued use of the tiered fee structure with the following fees, without a fund balance reduction, calculated using a CPI adjustment consistent with the Fee Study: 1) $148 for a Fully Regulated Unit; and 2) $100 for a Partially Regulated Unit. Due to the continued economic impact of COVID-19, staff recommends that City Council approve the following: 1) Funding of privately own...
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