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R.ent Stabilization Board

RENT STABILIZATION BOARD Regular Meeting

Maudelle Shirek Building 2134 Martin Luther King Jr. Way Council Chambers, Second Floor Broadcast Live on KPFB - 89.3 and BTV Cable Channel 33 Live Webcasting at www.cityofberkeley.info/rent

Monday, May 21, 2018 7:00 p.m.

Teleconference location: 255 E. Flamingo Road, Las Vegas, NV 89169

This meeting will be conducted in accordance with the Brown Act, CA Government Code Section 54953(b )(2), and Teleconferencing. Any member of the public may attend this meeting at either location. Questions regarding this matter may be addressed to Jay Kelekian, Executive Director and Secretary to the Board, at ( 510) 981-7368.

AGENDA

*Times allotted for each item are approximate and may be changed at the Board's discretion during the course of this meeting.

1. Roll call - 1 min.*

2. Approval of Agenda - 2 min.*

3. Public Forum - 3 min. allotted per speaker*

4. CONSENT ITEMS - 1 min.*

a. Approval of the April 16th Regular Meeting minutes

b. Approval of May 7 th Special Meeting minutes

5. ACTION ITEMS

a. From Board Members, Executive Director and Committees

(1) Recommendation to schedule a Special Meeting of the Rent Board in early June 2018 to consider suggested amendments to the Rent Stabilization and Eviction for Good Cause Ordinance (Executive Director)- 10 min.*

2125 Milvia Street, Berkeley, California 94704 TEL: (510) 981-7368 (981-RENT) • TDD: (510) 981 -6903 • FAX: (510) 981-4940

E-MAIL: [email protected] • DINTERNET: www.cityofberkeley.info/rent/

Berkeley Rent Stabilization Board Meeting agenda Monday, May 21, 2018

(2) Recommendation to adopt the proposed amendment to account for potential repeal of the Costa-Hawkins Rental Housing Act (Executive Director) - 20 min.*

(3) Recommendation to adopt the proposed amendment to update the definition of "New Construction" (Executive Director) - 20 min.*

( 4) Recommendation to adopt the proposed amendment to clarify exemption of Accessory Dwelling Units ("ADUs") (Executive Director) - 20 min.*

(5) Recommendation to adopt the proposed amendment to the "Golden Duplex" exemption (Executive Director) - 20 min.*

( 6) Recommendation concerning developing a separate ballot measure enacting a reduced program fee for partially-exempt units (Executive Director) - 20 min.*

6. APPEAL-7:30 p.m.** - 30 min.*

** This appeal will not be heard before 7:30 p.m. but may be heard any time thereafter.

Case No. E-85 (1349 Neilson Street)

Landlord filed an appeal of a hearing decision denying exemption of the property, which was

lawfully converted into a duplex in 1949. On appeal, Landlord argues that he has filed

applications "to legalize the conversion of the unit back to single-family residence." However,

the Planning Department has already effectively denied that application, because Landlord

cannot meet the legal requirements for issuing the permit. Therefore, the property will remain a

duplex for the foreseeable future and the decision should be affirmed.

7. INFORMATION, ANNOUNCEMENTS AND NEWS ARTICLES

Please Note: The Board may move Information Items to the Action Calendar.

a. Reports from Board Members/Staff

(1) Update on Online Registration - Verbal (Executive Director) - 3 min.*

(2) Owner Move-in Eviction Tracking Report (January 2015 - December 2017) (Executive Director & Eviction/Section 8/Foreclosure Committee)-2 min.*

(3) Rent Board's Tip of the Month for April 2018 - Subletting (Executive Director)- 1 min.*

( 4) Rent Board's Tip of the Month for May 2018 - Security Deposits (Executive Director) - 1 min.*

Berkeley Rent Stabilization Board Meeting agenda Monday, May 21, 2018

(5) Communication from Laura Woltag concerning Golden Duplexes (Executive Director) - 1 min.*

( 6) May 8, 2018 e-mail from the Asian Law Caucus titled, "Justice for Oakland Chinatown Tenants" (Commissioner Tregub)- 1 min.*

(7) April 12, 2018 NP R. org interview of Matthew Desmond by Terry Gross ( and adapted for the Web by Bridget Bentz and Molly Seavy-Nesper) titled, "First-Ever Evictions Database Shows: 'We're In the Middle Of A Housing Crisis" ' (Commissioner Poblet) - 1 min.* NOTE: The Web version of this interview was unprintable so it is not included in the agenda packet. However, the link below is viable. https:/ /www.npr.org/2018/04/12/601783346/first-ever-evictions-database-showswere-in-the-middle-of-a-housing-crisis?utm source=facebook.com&utm medium=social&utm campaign=npr&utm term=nprnews&utm content=20180412

(8) April 14, 2018 D W com (Deutsche Welle) article by Elizabeth Schumacher titled, "Thousands rally in Berlin over world-record property prices" (Executive Director) - 1 min.* http://www.dw.com/en/thousands-rally-in-berlin-over-world-record-propertyprices/a-43389523

(9) April 15, 2018 Santa Cruz Sentinel opinion by Stephen Barton, Ph.D. titled, "Stephen Barton: Why rent control is a good thing" (Commissioner Chang) - 1 min.* http://www.santacruzsentinel.com/opinion/20180415/stephen-barton-why-rentcontrol-is-a-good-thing

(10) May 1, 2018 San Francisco Chronicle article by Carolyn Said titled, "Landlords turned 14 SF apartments into illegal Airbnbs, city attorney says" (Executive Director) - 1 min.* https://vvww.sfchronicle .com/business/article/Landlords-turned-14-San-Franciscoapartments-into-12878662.php

(11) May 13, 2018 The Daily Californian article by Yao Huang titled, "Ohmega Salvage to sell land rather than rent to Youth Spirit Artworks for tiny house village" (Commissioner Tregub) - 1 min.* http://www.dailycal.org/2018/05/ 13/ ohmega-sal vage-sell-land-rather-rent-youthspirit-artworks-tiny-house-village/

8. COMMITTEE/BOARD MEETING UPDATES AND ANNOUNCEMENTS

a. Budget and Personnel - 4 min.*

(1) April 30th agenda

(2) May 21 st agenda

Berkeley Rent Stabilization Board Meeting agenda Monday, May 21 , 2018 Page4

b. Eviction/Section 8/Foreclosure - 2 min.

( 1) May 4th agenda

c. Habitable & Sustainable Housing (HASH) - 2 min.*

( 1) May 17th agenda

d. IRA, AGA and Registration - 2 min.

(1) May 3rd agenda

e. Outreach - 2 min.*

(1) May 14th agenda

f. 4 x 4 Joint Committee on Housing: City Council/Rent Board - 3 min.*

(1) April 30th agenda packet

g. 4 x 4 Ad Hoc Committee on Safety, Occupancy and Affordability of Converted

Artist Warehouses and Workspaces - 1 min.*

h. Ad Hoc Committee on the Effects of Costa-Hawkins - 1 min.*

1. Ad Hoc Committee on Technology Issues - 1 min.*

J. 2 x 2 x 2 Committee on Housing: Council/ Rent Board / BUSD-1 min.*

k. Updates and Announcements regarding future Special Meetings - 2 min.*

1. Discussion of items for possible placement on future agenda - 2 min.*

9. ADJOURNMENT

COMMUNICATION ACCESS INFORMATION: This meeting is being held in a wheelchair-accessible location. To request disability-related

accommodation(s) to participate in the meeting, including auxiliary aids or services, please

contact Aimee Mueller at 981 -4932 or 981 -6903 (TDD) at least three business days before

the meeting date.

Please refrain from wearing scented products to this meeting.

Rent Stabilization Board

RENT STABILIZATION BOARD Meeting Minutes - Unapproved

Maudelle Shirek Building 2134 Martin Luther King Jr. Way Council Chambers, Second Floor Broadcast Live on KPFB - 89.3 and BTV Cable Channel 33 Live Webcasting at www.cityofberkeley.info/rent

Monday, April 16, 2018 7:00 p.m.

Item 4.a.

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1. Roll call - Chair Selawsky called the meeting to order at 7:12 p.m. Aimee Mueller called roll. Commissioners present: Chang, Laverde, Murphy, Poblet, Simon-Weisberg, Soto-Vigil, Townley, Tregub, Selawsky. Staff present: Brown, Kelekian, Mueller.

2. Approval of Agenda - M/S/C (Townley/Tregub) MOTION TO APPROVE THE AGENDA WITH THE FOLLOWING CHANGES: COMBINE ACTION ITEM 5.a.(1) AND INFORMATION ITEM 8.a.(2); MOVE ACTION ITEMS 5.a.(2) and 5.a.(3) TO CONSENT; AND MOVE CLOSED SESSION UP ON THE AGENDA TO TAKE PLACE BEFORE PUBLIC FORUM. Roll call vote. YES: Chang, Laverde, Murphy, Poblet, Simon-Weisberg, Soto-Vigil, Townley, Tregub, Selawsky; NO: None; ABSTAIN: None; ABSENT: None. Carried: 9-0-0-0.

Motion to reconsider priol' vote: MIS/C (Soto-Vigil/Tregub) CHANGE PRIOR MOTION TO REFLECT THAT CLOSED SESSION WILL BE HELD AT THE END OF THE MEETING. Roll call vote. YES: Chang, Laverde, Murphy, Poblet, Simon-Weisberg, Soto-Vigil, Townley, Tregub, Selawsky; NO: None; ABSTAIN: None; ABSENT: None. Carried: 9-0-0-0.

3. Public Forum -There were two speakers. W.B.C. shared his experience fighting an eviction. Christine Schwartz urged the public to attend the Progressive Tenant Convention on April 22, 12:45 p.m. at 2727 Milvia Street in Berkeley.

Commissioner Poblet mentioned rumors that the U.S. Department of Housing and Urban Development (HUD) will no longer enforce fair housing laws, and reminded the public that the State of California and the City of Berkeley have fair housing laws, and that information is available on the Rent Board's website.

2125 Milvia Street, Berkeley, California 94704 TEL: (510) 981-7368 (981-RENT) • TDD: (510) 981-6903 • FAX: (510) 981-4940

E-MAIL: [email protected] • DINTERNET: www.cityotberkeley.info/rent/

Berkeley Rent Stabilization Board Meeting minutes Monday, April 16, 2018 Page 2

4. CONSENT ITEMS

Action items 5.a.(2) and 5.a.(3) were moved to Consent by an earlier vote of the Board.

a. Approval of the March 19, 2018 meeting minutes

b. Adopt Resolution 18-02 Increasing the Authorized Amount of AEPhi Settlement Funds

Expended for Reimbursement of Low-income Tenants by $2,500

M/S/C (Townley/Poblet) MOTION TO APPROVE ALL CONSENT ITEMS,

INCLUDING ACTION ITEMS 5.a.(2) and 5.a.(3), AS WRITTEN. Roll call vote.

YES: Chang, Laverde, Murphy, Poblet, Simon;.Weisberg, Soto-Vigil, Townley, Tregub,

Selawsky; NO: None; ABSTAIN: None; ABSENT: None. Carried: 9-0-0-0.

5. ACTION ITEMS

Action items 5.a.(2) and 5.a.(3) were moved to Consent, and Information item 8.a.(2) was

combined with Action item 5. a. (1) by an earlier vote of the Board.


( 1) Recommendation to schedule a Special Meeting of the Rent Board on May 7, 2018,

to adopt the annual registration fee for the 2018-2019 fiscal year (Budget &

Personnel Committee and Executive Director)

M/S/C (Tregub/Simon-Weisberg) MOTION REGARDING ITEM 5.a.(1) AND

8.a.(2) TO SET A SPECIAL MEETING FOR MAY 7, 2018 TO ADOPT THE

ANNUAL REGISTRATION FEE, AND TO TRANSACT OTHER BUSINESS AS

NECESSARY. Roll call vote. YES: Chang, Laverde, Murphy, Poblet, SimonWeisberg, Soto-Vigil, Townley, Tregub, Selawsky; NO: None; ABSTAIN: None;

ABSENT: None. Carried: 9-0-0-0.

Commissioner Townley stated for the l'ecord that he may not be able to attend this meeting.

(2) Recommendation to adopt proposed amendments to Regulation 1267 [Capital

Improvements] on first reading (Executive Director & Legal Unit)

MOVED TO CONSENT BY AN EARLIER VOTE OF THE BOARD.

(3) Proposal to approve staff recommendations on the following requests for waiver of late

registration penalties (Executive Director)

Discretionary Waivers Waiver No. Property Address

4639 1515 Blake Street 4676 2122 9th Street 4680 2843 Sacramento Street

Berkeley Rent Stabilization Board Meeting minutes Monday, April 16, 2018 Page3

4683 2324 9th Street 4685 1734 Spruce Street 4687 2118 Ward Street 4688 901 Page Street 4696 2728 Channing Way 4699 2837 Regent Street 4 703 1620 Harmon Street


6. APPEAL - Case No. T-5718 (1524 University Avenue)

APPEAL WITHDRAWN BY APPELLANT. THE BOARD NEED NOT CONSIDER

TIDS MATTER AS THERE ARE NO FURTHER ISSUES OF LAW OR FACT TO

DECIDE.

7. APPEAL - Case No. E-84 (1534 Julia Street, lower unit)

Appearances: Ben Holl - on behalf of Appellant. Samuel Jensen Augustine - Appellant. Elisa Della-Piana - Respondent

M/S/C (Simon-Weisberg/Poblet) MOTION TO AFFIRM THE HEARING EXAMINER'S DECISION AS WRITTEN. Roll call vote. YES: Chang, Laverde, Murphy, Poblet, SimonWeisberg, Soto-Vigil, Townley, Tregub, Selawsky; NO: None; ABSTAIN: None; ABSENT: None. Carried: 9-0-0-0.


All Items Below Were Mentioned And/Or Briefly Discussed. Underlined Items Have Additional Comments And/Or Information.

a. Reports from Board Members/Staff (1) Update on proposed amendments to Senate Bill (SB) 827 [Planning and zoning:

transit-rich housing bonus] (Commissioner Tregub & Executive Director)

(2) 2/3-year Budget Update (Executive Director)- Combined with Action item 5.a.(1) by an earlier vote of the Board.

(3) Short-Term Rental applications update (Executive Director)

(4) Commissioner attendance at Board and Committee meetings for the 1st Quarter of 2018 (Executive Director)

(5) Memo from Honorable Mayor Jesse Arreguin to the 4 x 4 Joint Committee on Housing regarding Prohibition of "Lease-Breaking" or "Roommate-Replacement Fees" (Executive Director)

Berkeley Rent Stabilization Board Meeting minutes Monday, April 16, 2018 Page4

(6) Memo from Honorable Mayor Jesse Arreguin to the 4 x 4 Joint Committee on

Housing regarding Amending the Tenant Protection Ordinance (TPO) to Prohibit

Unilateral Lease Changes (Executive Director)

(7) Copy of City of Berkeley Housing & Community Services Department's

"Apartment Buildings with City of Berkeley BMR Program Units" handout

(Executive Director)

(8) Distressed Properties/Foreclosure Report (Eviction/Section 8/Foreclosure Committee)

(9) Update on recent Rent Board outreach events (Executive Director)

(10) Rent Board's March 2018 "Tip of the Month" posted on Facebook (Executive

Director)

(11) Update on legislation and/or new rent control or eviction protections in other cities,

if any - Verbal (Executive Director & Commissioner Simon-Weisberg) -

Commissioner Simon-Weisberg announced that there are now 10 cities that will

have rent control/just cause on the ballot in November. Pomona is the latest city to

file.

(12) March 22, 2018 Berkeleyside article by Emilie Raguso titled, "Likely Berkeley

voters say yes to affordable housing bond, survey says" (Vice-Chair Laverde)

http://www.berkeleyside.com/2018/03/22/likely-berkeley-voters-say-yes-affordable

housing-survey-says

(13) March 27, 2018 Daily Californian article by Alyssa Bernardino titled, "State Sen.

Nancy Skinner introduces bill to boost affordable student housing" (Vice-Chair

Laverde & Commissioner Tregub) http://www.dailycal.org/2018/03/27 /state-sen-nancy-skinner-introduces-bill-boost

aff ordable-student-housing/

(14) March 28, 2018 Curbed San Francisco article by Brock Keeling titled, "Berkeley

mayor: 'I am committed to building housing on the Berkeley BART parking lot'"

(Vice-Chair Laverde) https://sf.curbed.com/2018/3/28/17170130/berkeley-mayor-bart-parking-lot-housing

(15) April 3, 2018 CALMatters.org article by Felicia Mello. titled, "California campuses

confront a growing challenge: homeless students" (Vice-Chair Laverde)

https :/ / calmatters.org/articles/homeless-college-students-california/

(16) April 4, 2018 Berkeleyside article by Natalie Orenstein titled, "Berkeley police tell

Marina RV campers to move out ... or get towed" (Commissioner Tregub)

http:/ /www.berkeleyside.com/2018/04/04/berkeley-12olice-tell-marina-rv-campers

to-move-out-or-get-towed


(17) April 4, 2018 Daily Californian article by Shelby Mayes titled, "California officials oppose Department of Housing and Urban Development scaling back fair housing enforcement" (Commissioner Tregub) http://www.dailycal.org/2018/04/04/california-officials-oppose-department-housingurban-development-scaling-back-fair-housing-enforcement/

(18) April 4, 2018 East Bay Express article by Scott Morris titled, "Fire and Fortune" (Commissioner Tregub) . https://www .eastbayexpress.com/oakland/fire-and-fortune/Content?oid= 14820565

(19) April 4, 2018 East Bay Express article by Sam Lefebvre titled, "Oakland Tenants Take Direct Action to Fight Large Rent Hikes" (Commissioner Tregub) https :/ /www .eastbayexpress.com/ oakland/ oakland-tenants-take-direct-action-tofight-large-rent-hikes/Content?oid=14821769

(20) Aptjl 5, 2018 Berkeleyside article by Natalie Orenstein titled, "Should UC Berkeley's Oxford Tract be developed for student housing?" (Vice-Chair Laverde) http://www.berkeleyside.com/2018/04/05/ should-uc-berkeleys-oxford-tract-bedeveloped-for-student-housing

(21) April 5, 2018 Berkeley News article by Jill Schlessinger of UC Berkeley's Division of Student Affairs titled, "Student film raises awareness, proposes solutions to student homelessness" (Vice-Chair Laverde) http://news.berkeley.edu/2018/04/05/cal-student-film-raises-awareness-proposessolutions-to-student-homelessness/

(22) April 10, 2018 SFGate article by Melody Gutierrez titled, "Wiener scales back bill that would allow taller housing near public transit" (Commissioner Tregub) https://www.sfgate.com/bayarea/article/Wiener-scales-back-bill-to-fast-trackhousing-12821492.php

9. COMMITTEE/BOARD MEETING UPDATES AND ANNOUNCEMENTS

a. Budget and Personnel - Committee Chair Tregub and the Executive Director reported that the Committee will meet on April 23 rd and, if necessary, April 30th to

prepare a recommendation for the May 7th Special Meeting.

(1) March 28th agenda

(2) April 10th agenda

b. Eviction/Section 8/Foreclosure

(1) April 11 th agenda

c. Habitable & Sustainable Housing (HASH) - Committee Chair Laverde announced

that the Committee will meet on May 17th.


d. IRA, AGA and Registration- Committee Chair Simon-Weisberg clarified that the

Committee meets the first Thursday of every month, and staff mentioned that the

next meeting is May 3 at 5:30 p.m.

e. Outreach - Chair Chang stated that the Committee normally meets the first Monday

of every month, but because of the May 7 Special Meeting, the next Committee

meeting will have to be rescheduled.

(1) April 2nd meeting - CANCELLED

f. 4 x 4 Joint Committee on Housing: City Council/Rent Board - Chair Selawsky

provided an overview of the topics covered at the last meeting, including short-term

rentals and accessory dwelling units.

( 1) April 2nd agenda packet

g. 4 x 4 Ad Hoc Committee on Safety, Occupancy and Affordability of Converted

Artist Warehouses and Workspaces

h. Ad Hoc Committee on the Effects of Costa-Hawkins

1. Ad Hoc Committee on Technology Issues

J. 2 x 2 x 2 Committee on Housing: Council I Rent Board/ BUSD

k. Updates and Announcements regarding future Special Meetings

1. Discussion of items for possible placement on future agenda - Discussion on SB

827 and 1227, and other state issues

Commissioner Tregub announced that the Joint Committee on Housing Laws will have

its first meeting on Tuesday, April 17 from 7:00 p.m. at the North Berkeley Senior Center

(1901 Hearst Avenue).

At this point, the Board adjourned to reconvene in Closed Session to discuss the item(s) listed

below.

CLOSED SESSION - The Board convened in Closed Session pursuant to California Government

Code Section 54957(b)(l) for discussion and possible action regarding:

PUBLIC EMPLOYEE PERFORMANCE EV ALUTION Title: Executive Director

Upon reconvening, Chair Selawsky reported the following: The Board completed the evaluation of

the Executive Director.

10. ADJOURNMENT-Chair Selawsky adjourned the meeting at 10:08 p.m.


RENT STABILIZATION BOARD Special Meeting Minutes - Unapproved

Item 4.b.

Maudelle Shirek Building 2134 Martin Luther King Jr. Way Council Chambers, Second Floor

Monday, May 7, 2018 7:00 p.m.

Broadcast Live on KPFB - 89.3 and BTV Cable Channel 33 Live Webcasting at www.cityofberkeley.info/rent

------- -~--••••·--- >• •M•---·---- ·-..... ---···-

1. Roll call- Chair Selawsky called the meeting to order at 7:06 p.m. Aimee Mueller called roll. Commissioners present: Chang, Laverde, Murphy, Poblet, Simon-Weisberg, Soto-Vigil, Tregub, Selawsky. Commissioners Absent: Townley. Staff Present: Brown, Darrow (for Item 6.a.(1) only), Kelekian, Law (in audience), Mueller.

2. Approval of Agenda - M/S/C (Tregub/Chang) APPROVE AGENDA WITH THE FOLLOWING CHANGE: MOVE ACTION ITEM 5.a.(1) TO CONSENT. Roll call vote. YES: Chang, Laverde, Murphy, Poblet, Simon-Weisberg, Soto-Vigil, Tregub, Selawsky; NO: None; ABSTAIN: None; ABSENT: Townley. Carried: 8-0-0-1.

3. Public Forum - There were three speakers. Zac Parisa and Toni Mester commented on item 6.a.(1 ). Moni Law provided an update on recent outreach events conducted by staff.

4. CONSENT ITEMS

Action item 5. a. (1) was moved to Consent by an earlier vote of the Board.

a. Recommendation to adopt Resolution 18-03 modifying the contract with TransSIGHT, LLC to increase the amount by $50,000 and extend the term through June 30, 2019 (Executive Director)

b. Recommendation to adopt Resolution 18-04 modifying the contract with QuickCaption, Inc. to increase the amount by $7,000 and extend the term through June 30, 2019 (Budget & Personnel Committee and Executive Director)

M/S/C (Tregub/Selawsky) APPROVE ALL CONSENT ITEMS, INCLUDING ITEM 5.a.(1), AS WRITTEN. Voice vote. Carried 8-0-0-1. ABSENT: Townley.

2125 Milvia Street, Berkeley, California 94704 TEL: (510) 981-7368 (981-RENT) • TDD: (510) 981-6903 • FAX: (510) 981-4940 E-MAIL: [email protected] • INTERNET: www.cityofberkeley. info/renti

Berkeley Rent Stabilization Board Meeting minutes Monday, May 7, 2018 Page 2

5. ACTION ITEMS

Action item 5.a. (1) was moved to consent by an earlier vote of the Board


(1) Recommendation to adopt proposed amendments to Regulation 1267 [Capital

Improvements] -Second reading (Executive Director & Legal Unit)


(2) Recommendation to adopt Resolution 18-05 setting the 2018-2019 fiscal year (FY)

annual registration fee (due July 2, 2018) and Resolution 18-06 authorizing the

pass-through of a portion of the registration fee to certain tenants (Executive

Director and Budget & Personnel Committee)

M/S/C (Tregub/Laverde) MOTION TO APPROVE RESOLUTIONS 18-05 and

18-06 AS WRITTEN. Roll call vote. YES: Chang, Laverde, Murphy, Poblet,

Simon-Weisberg, Soto-Vigil, Tregub, Selawsky; NO: None; ABSTAIN: None;

ABSENT: Townley. Carried 8-0-0-1.

(3) Recommendation to adopt Resolution 18-07 authorizing a Summer Rental Period

registration fee and procedures for sororities and fraternities for the 2018-2019

registration year (Executive Director and Budget & Personnel Committee)

M/S/C (Chang/Poblet) MOTION TO APPROVE RESOLUTION 18-07 AS

WRITTEN. Voice vote. Carried 7-1-0-1. NO: Tregub; ABSENT: Townley.

( 4) Resolution 18-08 supporting the protection of the West Berkeley Shellmound

(Commissioners Poblet, Murphy, Chang & Soto-Vigil)

M/S/C (Poblet/Soto-Vigil) MOTION TO APPROVE RESOLUTION 18-08 WITH

THE FOLLOWING MODIFICATION: ADD LANGUAGE DIRECTING THE

VICE-CHAIR TO SEND A LETTER TO THE ZONING ADJUSTMENTS BOARD

URGING THEM TO PROTECT THE WEST BERKELEY SHELLMOUND. Roll call

vote. YES: Chang, Laverde, Murphy, Poblet, Simon-Weisberg, Soto-Vigil; NO: None;

ABSTAIN: None; ABSENT: Townley; RECUSED: Tregub, Selawsky.*

Carried: 6-0-0-1-2.

*Chair Selawsky and Commissioner Tregub, who both sit on the Zoning Adjustments

Board (ZAB), recused themselves due to their potential inability to vote on this item

should it come before the ZAB.


ALL ITEMS BELOW WERE MENTIONED AND/OR BRIEFLY DISCUSSED. UNDERLINED ITEMS HA VE ADDITIONAL COMMENTS AND/OR INFORMATION.

Berkeley Rent Stabilization Board Meeting minutes Monday, May 7, 2018 Page3

a. Reports from Board Members/Staff

(1) Initial discussion on possible changes to the Rent Stabilization Ordinance (Executive Director)- The Board had a lengthy discussion on this item, but no formal action was taken.

(2) Update on Online Registration - Verbal (Executive Director)

(3) ¾-year Budget update (Executive Director)

7. BOARD MEETING UPDATES AND ANNOUNCEMENTS

a. Updates and Announcements regarding future Special Meetings - None.

b. Discussion of items for possible placement on future agenda - None.

At this point, the Board adjourned to reconvene in Closed Session to discuss the item(s) listed below.

CLOSED SESSION - The Board convened in Closed Session pursuant to California Government Code Section 54957(b) for discussion and possible action regarding:

EMPLOYMENT CONTRACT NEGOTIATIONS Title: Executive Director

Upon reconvening, Chair Selawsky reported the following: the Board authorized the Budget & Personnel Committee to engage in contract negotiations with the Executive Director. The Budget & Personnel Committee and Executive Director will set the parameters on the duration and terms of the contract for Board approval. ·

8. ADJOURNMENT - Chair Selawsky adjourned the meeting at 10:55 p.m. in honor and memory of Davida Coady, and in honor of AFSCME 3299 workers.

Item 5.a.(1)

Rent Stabilization Board Office of the Executive Director

DATE: May 21, 2018

TO: Honorable Members of the Berkeley Rent Stabilization Board

FROM: C/J Jay Kelekian, Executive Director

SUBJECT: Possible need to hold special meeting in early June to consider recommendations regarding ballot initiative(s) to Council

Berkeley voters passed Measure D in June of 1980 which established the current Rent Ordinance (the Ordinance) as codified in Berkeley Municipal Code (B.M.C.) Chapter 13.76. 1 Because it was passed by voter initiative, the Ordinance may only be amended by voters. Berkeley City Council has, periodically, placed measures on the general ballot for the voters to decide when the Board recommends modifications.

At the May 7, 2018 special meeting Commissioners discussed several proposals that I brought to amend the Rent Ordinance in the November 6, 2018 general election, but no consensus was reached regarding any future action to be taken. I have drafted five memoranda tonight which further detail these proposals - each one has a separate suggested Recommendation for the Board to adopt, reject, or modify.

Each proposal details a specific change to the Ordinance. Apart from the first one, staff has not drafted any specific proposed Ordinance amendments. After the Board reaches general consensus-regarding these items, I will direct legal staff to draft proposed amendments to the appropriate chapters of the Ordinance. The 4 x 4 Committee will consider the amendments that the Board adopts, as well, when it meets on June 11 , 2018.

The final meeting for the Council to adopt ballot initiatives is July 24, 2018, so time is of the essence should the Board wish to request that Council place any of these changes on the November ballot. The Board has traditionally requested that it review the actual language that will be placed on the ballot prior to Council considering the initiative. Given that we do not yet have consensus on these matters (but hopefully will after tonight's meeting), I propose that the Board call a special meeting the first week in June, preferably at 7:00 p.m. on June 4, 2018. The sole purpose of this meeting will be to review the specific Ordinance amendments that legal staff will draft based on the direction the Board gives during tonight's meeting.

1 The Ordinance was subsequently amended substantially by Measure G in 1982.

Item 5.a.(2)


MEMORANDUM

DATE: May 21, 2018

TO: Honorable Members of the Rent Stabilization Board

Jay Kelekian, Executive Director FROM: tr., SUBJECT: Proposed Ordinance Amendment to Account for Potential Repeal of Costa

Hawkins

Proposed Action:

Direct staff to finalize language requiring that existing rents established lawfully under the Costa-Hawkins Rental Housing Act shall remain in effect upon repeal of the Act.

Reason Action is Needed:

As originally passed by the voters in 1980, the Berkeley Rent Ordinance established a system of vacancy control. The most fundamental component of vacancy control is the establishment of a Base Rent Ceiling, which can then be adjusted on an annual basis. The Base Rent Ceiling for all tenancies was originally calculated using the lawful rent in effect on May 31 , 1980. See B.M.C. section 13.76.100 (Establishment of Base Rent Ceiling and Posting).

The Costa-Hawkins Rental Housing Act became effective on January 1, 1996,1 and- among other things - prohibited vacancy control and mandated vacancy decontrol. Under CostaHawkins, all initial rents established after January 1, 1999, can be set at any amount; the rent for the previous tenancy has no bearing on the amount the landlord is entitled to charge a new tenancy. This change in state law superseded the Base Rent Ceiling provisions of the Ordinance, rendering them invalid and devoid of legal effect.

~ven though Costa-Hawkins fundamentally shifted the way Berkeley was able to control rents,

1 Costa-Hawkins had a phase-in period from January 1, 1996-January 1, 1999. The particulars of this phase-in do not merit discussion in this memorandum, but it is important to note that all initial rents established after January 1, 1999, were permitted a market rate vacancy rent adjustment.

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Proposed Amendment to Account for Potential Repeal of Costa-Hawkins

May 21, 2018 Page2

the Berkeley voters never amended the Ordinance to account for this change. Instead, the Board

enacted Regulation 1013 which authorized the Board to implement the form of rent control

mandated by Costa-Hawkins. As of 2018, approximately 11 - 12% of the rent-controlled units

in Berkeley have tenancies that pre-date January 1, 1999. All other units have experienced at

least one vacancy rent adjustment authorized by Costa-Hawkins, and many units have turned

over numerous times and thus been subject to multiple vacancy rent adjustments.

A statewide ballot initiative to repeal Costa-Hawkins appears likely to qualify for the general

election on November 6, 2018. If Costa-Hawkins is repealed, Berkeley's original vacancy

control system will resume and landlords will be prohibited from raising rents on new tenants.

However, the legal effect of the repeal of Costa-Hawkins ( with respect to existing rents

established after January I, 1996) is not plainly set forth in the Ordinance, because the

superseded language tying rent ceilings to 1980 rents was never removed.

If Costa-Hawkins is repealed, Regulation 1013 will need to be immediately suspended and

repealed as it will refer to a statute that no longer exists. Absent a provision that clearly

articulates the effect of Costa-Hawkins vacancy rent increases upon base rent ceilings, voters

may be confused about the effect of Costa-Hawkins repeal, and the outdated wording of the

Ordinance may contribute to that confusion. To insulate the Ordinance from potential legal

challenges, Board staff recommends amending B.M.C. 13.76.100 to make clear that all Costa

Hawkins rent increases shall remain in effect, and Base Rent Ceilings shall be adjusted

accordingly. Rent ceilings that were established prior to 1999 would remain in effect.

This proposed amendment follows the logic and function of the original Ordinance - in 1980

many similar units had wide discrepancies in the amount of rent charged ( and ultimately

established for purposes of vacancy control).2 Despite this disparity, rent control provided

tremendous community stability benefits for all.

If Costa-Hawkins is repealed, the Board will always be able to revisit this issue to address any.

inequities either through adoption of allowable regulations or Ordinance amendments to propose

to the voters in the 2020 general election.

Recommendation:

Staff recommends that that the Ordinance be amended by insertion of the following paragraph or

similar language into B.M.C. 13.76.100 - "For such rental units where the landlord lawfully

established a new initial rent under the Costa-Hawkins Rental Housing Act, the Base Rent

Ceiling shall be the most recent lawfully established periodic rent. For such rental units that were

exempt from rent stabilization pursuant to the Costa-Hawkins Rental Housing Act, the Base Rent

Ceiling shall be the most recent lawfully established periodic rent."

2 This is also consistent with the tested logic of the original Ordinance and provides greater certainty for the voters

to make an infonned choice.

Item 5.a.(3)


MEMORANDUM.

DATE: May 21, 2018

TO: Honorable Members of the Rent Stabilization Board

FROM: C/; Jay Kelekian, Executive Director

SUBJECT: Proposed Ordinance Amendment to Update Definition ofNew Construction

Proposed Action:

Direct staff to draft language to revise the New Construction exemption to provide that units shall be exempt for a specifically-defined period immediately following issuance of a final inspection approval by the City or equivalent document establishing the completion of construction.


A common critique of strict rent control - whether true or not~ is that it inhibits new construction. This critique was developed post World War II in response to rent control laws on the East Coast. Given this concern, every rent control ordinance in the State of California includes an exemption for new construction. These exemptions encourage the construction of new rental housing, because developers are willing to take more substantial financial risks in pursuit of a project if they have the ability to control and adapt to changing needs and economic realities. Any limitation on the ability of the developer to adapt and cover their costs for a project can diminish the possibility of such a project going forward.

The Berkeley Rent Board has consistently advocated/or the construction of additional housing units, and has been able to point to the plain wording of the Rent Stabilization and Eviction for Good Cause Ordinance as evidence that rent control does not negatively impact new construction. Even when considering that units would be exempt from rent control coverage but add to the overall housing stock, the Board has always supported and advocated for the legal construction of new rental housing units. To wit Berkeley, Santa Monica, and other rent control cities in California that have similar exemptions for new construction have all had above average

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Proposed Amendment to Update Definition of New Construction

May 21, 2018 Page 2

numbers of newly-constructed multifamily units since the adoption of the various ordinances.

Currently, the Berkeley Rent Ordinance exempts units that have received a Certificate of

Occupancy after June 30, 1980 (B.M.C. section 13.76.0501.)- the Berkeley voters adopted this

standard in November of 2016 to_more closelyalignthe_Ordinanc_e :with__the_Costa::Ha:wkins __ __ _

definition of new construction which requires a Certificate of Occupancy.

The Costa-Hawkins Rental Housing Act currently prohibits rent control jurisdictions from

updating outdated definitions of new construction. A statewide ballot initiative to repeal Costa

Hawkins appears likely to qualify for the general election on November 6, 2018. If Costa

Hawkins is repealed, local rent boards will have the opportunity to gpgate their new construction

exemptions. Currently, most units built after 1980 are exempt from rent control. It is difficult,

however, to justify that a 38 year-old building is "new." The challenge is finding the spot which

we maintain the concept of not discouraging new construction but providing full and equal

protections to as many as possible.

In the event of Costa-Hawkins repeal, the new construction exemption could be amended to

create a rolling exemption that takes into account the actual age of the building. It is also

important to remember that not all legally-constructed new units receive a Certificate of

Occupancy, and a new Certificate of Occupancy can be issued to a building that is not newly

constructed. If Costa-Hawkins is repealed, the voters will have the opportunity to redefine the

"new" component of new construction in ·a way that avoids the pitfalls of Costa-Hawkins'

Certificate of Occupancy standard.

At its May 7, 2018 meeting, the Board directed staff to consult with developers and experts

regarding the feasibility of adoption of an exemption stricter than 12 years. Everyone we spoke

to, including developers of affordable housing, market-rate housing, and experts in the field,

agreed that even a 12-year exemption will create some disincentive to the production of new

housing. In our discussions with the experts, it is clear that there is no one formula based

timeframe that would completely avoid any impact on the profitability of new construction, but

there was consensus that the more remote that date of regulation, the less likely it would be that

the prospect of rent control would obstruct a project from moving forward. An exemption of

15 - 20 years would be more likely to prevent negative effects on the production of new housing, ,

while also offering enormous value to tenants in approximately 1,106-2,000 units, with an

average of 159 households gaining protection each year. 1

Recommendation:

Berkeley has approved the construction of many newly constructed rental units in recent years.

These newly constructed rental housing units have no rent controls or registration. Board staff

proposes that B.M.C. section 13.76.0501. be amended to allow for a rolling exemption ofno less

than 15 and no greater than 20 years for all newly constructed units.

1 Staff is reviewing the City' s records and will try to prepare and distribute more information at the Board meeting

on May 21, 2018.


DATE:

TO:

MEMORANDUM

May 21, 2018

Honorable Members of the Rent Stabilization Board

Jay Kelekian, Executive Director

Item 5.a.(4)

FROM: 1, SUBJECT: Proposed Ordinance Amendment to Clarify Exemption of Accessory Dwelling

Units ·

Proposed Action:

Direct staff to draft language clarifying that lawfully constructed and permitted Accessory

Dwelling Units are exempt from the Rent Stabilization and Eviction for Good Cause Ordinance.


Accessory Dwelling Units ("ADUs") are a special category of dwelling that is allowed to be

constructed on a parcel containing a single-family home, regardless of zoning. AD Us must meet

certain design specifications in order to qualify as ADUs, and a homeowner seeking to construct

an ADU must agree to a deed-restriction requiring that they owner-occupy the property.

Many state and local legislators advocate for the construction of AD Us as part of a multi

pronged approach to combating the housing crisis. The primary advantage of ADUs is the ability

to add units in areas zoned for single-family homes, where it is otherwise considered

extraordinarily difficult to build.

In January 2017, state law was amended to encourage the construction of ADUs. The

amendments loosened parking requirements and authorized the construction of"junior" ADUs

within the envelope of a single-family home without need to apply for a use permit. The result

has been a massive increase in interest among property owners in these types of units, as

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Proposed Amendment to Clarify Exemptio11 of Accessory Dwelling Units

May 21, 2018 Page2

demonstrated by the spike in applications to build ADU s in all of California's major cities. 1 The

City of Berkeley adopted related amendments to our local ADU law in March 2017. In Berkeley,

14 ADUs were permitted in 2016, and 57 were permitted in 2017. At its May 15, 2018 meeting,

the City Council again voted to amend the ADU ordinance to "clarify and further streamline the

permitting process for ADUs." This, combined with renewed interest in the construction of

various other types of ADUs (backyard cottages, garage conversions, house-lifting, additions,

attic conversions) has resulted in confusion regarding the applicability ofrent control to ADUs in

general.

The Berkeley Rent Board has consistently advocated/or the construction of additional housing

units, and has been able to point to the plain wording of the Rent Stabilization and Eviction for

Good Cause Ordinance as evidence that rent control does not negatively impact new

construction. Even when considering that units would be exempt from rent control coverage but

add to the overall housing stock, the Board has always supported and advocated for the legal

construction of new rental housing units. To wit Berkeley, Santa Monica, and other rent control

cities in California that have similar exemptions for new construction have all had above average

numbers of newly-constructed units since the adoption of the various ordinances.

The Rent Ordinance currently provides no special treatment for ADUs, and as a result the

exemption of a particular unit is highly case-specific. However Because, by definition an ADU

can only be constructed at an owner-occupied single-family dwelling, the overwhelming

majority of ADUs are exempt under existing provisions of the Ordinance and/or through long

standing Board Regulations, Resolutions, and hearing examiner determinations. Therefore,

although the most likely outcome is exemption, an applicant may have questions that City staff

are unable to answer, and it is in the interest of the entire city to encourage the construction of

additional housing units whenever possible. '

For example, any completely detached unit will generally receive a new Certificate of

Occupancy, rendering it partially exempt as new construction. However, it may be impractical to

construct a fully detached unit, in which case the exemption is a function of the particular

configuration of the unit and due to the historic use of the unit by previous owners. Here the

history of the Rent Ordinance is instructive. The original drafters of the Ordinance believed that

smaller, owner-occupied properties were different from professionally run multi-family

apartment complexes, and should therefore be exempt from the Ordinance. Originally this

exemption was for four units or fewer, then it was reduced to duplexes.

The Board has long interpreted its mandate based upon the logic and intent of the Ordinance.

Here, the logic of proximity to an owner's residence is consistent with exemption for ADU s.

Aside from detached units, which are already partially exempt as new construction, ADUs are

often configured in a way that is more intimately integrated into the home of the owner. ADUs

created from space within single-family homes will generally be more intimate than a structure

originally designed as a duplex.

1 Garcia, David; "ADU Update: Early Lessons and Impacts of California's State and Local Policy Changes",

December 2017; UC Berkeley Temer Center, available at: http://temercenter.berkeley.edu/uploads/ ADU_ Update_ Brief_ December_ 2017 _.pdf

Proposed Amendment to Clarify Exemption of Accessory Dwelling Units

May 21, 2018 Page 3

The rights of sitting tenants can be preserved by a simple grandfather clause. Concerns about the

rights of future tenants can also be addressed through outreach by the Board and notices

clarifying the existence of an exemption.

Recommendation:

One of the conditions for approval of an application to create an ADU is owner-occupancy of the

property. Therefore an exemption for all owner-occupied ADUs would have the effect of

providing clarity to all applicants interested in adding ADUs to the housing stock, while avoiding

abuses by any landlords seeking to evade rent controls (by subdividing a portion of a rented

house into an ADU, for example). Existing tenants can retain existing protections through a

grandfather clause. This proposal does not deprive any tenant of rights they already have, and

deals primarily with the applicability of rent control to hypothetical units that have not yet been

constructed.

Item 5.a.(5)

R.ent Stabilization Board Office of the Executive lDlirector

lVIEMORANDUM

DATE: May 21, 2018

TO~ Honorable Members of the Rent Stabilization Board

FROM: {, Jay Kelekian, Executive Director

SUBJECT: Proposed Amendment to Rent Stabilization Ordinance Golden Duplex Exemption

P1·oposed Action:

Direct staff to draft language requiring that owner-occupants reside in a duplex for 36 months prior to becoming eligible for exemption under 13.76.050.F.


Some owner-occupied duplexes in Berkeley are exempt from rent control and eviction protection, so long as they were occupied by the owner on December 31, 1979 and are currently occupied by the owner. Concerns about such «golden duplexes" have been raised relating to speculation-driven displacement; a number of cases have arisen in which a long-term tenant is forced to abruptly move when facing a dramatic rent increase upon the sale of the property. These concerns can be addressed by imposing a residency requirement before the exemption takes effect, or by phasing out the exemption for all new purchasers.

Additionally, the Board may choose to explore how best to balance several goals, including: providing golden duplex tenants with greater stability and security, allowing bona fide owneroccupants to retain flexibility in determining who they live with and greater, but not unlimited, flexibility in raising the rent above the standard rent control limits, and potentially achieving more consistent applicability across all owner-occupied duplexes.1

1 Options include any or all of the following: limitations on rent increases that are higher than the AGA, additional increases that may be taken between tenancies, relocation payments for tenants evicted without good cause, application of the exemption to all owner-occupied duplexes, and a phase-out of the exemption upon transfer of ownership.

2U5 Miivna Street, IBlerkeley, Cmllifomi!ll 94704!, 'J!'ElL: srn.M4.77].4 # 'fIDJ]IJ): 510.98];69@3 # Jli'AX: SH!J.6411,.77®3

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Proposed Amendment to Golden Duplex Exemption May 21,2018 Page 2

Recommendation:

Staff recommends that a residency requirement of 36 months prior to exemption be enacted for all eligible duplexes transferred after November 7, 2018.2 Tenants would be protected by rent control and eviction protections until the residency requirement has been met.

2 At the May 7, 2018 Board Meeting, the possibility of full repeal of the exemption was discussed. The Board may wish to further discuss the viability of full repeal at this meeting, however staff recommends that the question of full repeal of the exemption or any modifications other than the residency requirement be presented as a separate ballot measure from any other ordinance amendments.

lRent Stabilization Boanll Office of tlile Executive ll)iriector

MEMORANDUM

May 21, 2018 DATE~

TO~ Honorable Members of the Rent Stabilization Board

FROM: Y/Jay Kelekian, Executive Director

SUBJECT~ Suggested Amendment to Charge Partial Fee for Partially Exempt Units

Proposed Action:

Item 5.a.(6)

A partial fee should not be placed on the ballot at this tLme and the Board should instead consider having the 4x4 Committee continue looking at the issue of registering partially exempt units, either by council action or through an ordinance amendment in 2020.

Reason Board Action is Needed:

The Board sometimes fields inquiries regarding rental units that are partially exempt from the Ordinance. Generally any assistance provided to tenants/owners of partially exempt units is limited, as such units are exempt from rent stabilization and registration requirements bu.t subject to eviction protections and security deposit interest. The annual registration fee is only charged to owners of units that are subject to the registration requirements of the Ordinance.

Some landlords have periodically raised concerns that partially exempt units are not charged any foe. To date, the Berkeley Property Owners Association has not fmmally requested that the Board talce action on this matter. This could be remedied by a ballot measure establishing a reduced fee for partially exempt units, or by enactment of a separate ordinance by the City Council.

One major complication is the question of whether the Costa-Hawkins Rental Housing Act will be repealed at the November 6, 2018 election. Repeal would dramatically reduce the number of partially exempt units, which would directly impact the appropriate amount of the fee.

In order to enact a fee, staff must conduct a study of the cost of services covered by the fee. At

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Suggested Amendment to Charge Partial Fee for Partially Exempt Units May 21,2018 Page 2

this time, given the uncertainty presented by Costa-Hawkins Repeal, the results of the study could have only limited utility after the election. Furthermore, this study would be much more complex if it includes a new system requiring registration of partially exempt units. Given the limitations discussed below, staff believes that conducting such a study would not be a good deployment of limited resources at this time.

At both the April 30, 2018 4x4 Committee meeting and the May 7, 2018 Board Meeting, there was interest in creating a full registration scheme for partially exempt units (filing of forms with rent and tenancy information). If appended to the Rent Ordinance, such a system would be impractical and difficult to enforce, and would therefore result in a higher fee with little additional benefit to the community. This is because the Board's primary enforcement power is the denial of Annual General Adjustments. Partially exempt units are not subject to Annual General Adjustments because the rent for those units may be increased without limitation. Furthermore, state law limits the Board's ability to enforce full compliance with registration requirements, and therefore any information collected would likely be incomplete. (Cal. Civ. Code Section 1947.7.) Under such a system, the bulk of the fee charged would be spent on attempts to collect this incomplete information. On the other hand, if the City Council were to enact a separate ordinance requiring registration of partially exempt units, the City and the Board would have significantly greater enforcement capabilities and the information collected could be more closely tied to the information the City feels it is necessary to track.

Recommendation:

Staff recommends that the Board not request that a measure be placed on the ballot to enact a partial fee. Instead, staff recommends that the 4x4 Committee proceed with discussions of the viability of a registration system for partially exempt units. Ultimately, the Board could develop and submit a proposal to the City Council to enact a registration system for partially exempt units, accompanied by an appropriate fee to cover costs.


MEMORANDUM

DATE: May 4, 201 8

TO: Honorable Members of the Eviction/Section 8/Foreclosure Committee

FROM: Matthew Siegel, Staff Attorney ~ . Jen Fabish, Community Services Specialis~

SUBJECT: Owner Move-in Eviction Tracking Report (January 2015 - December 2017)

BACKGROUND

I. Measure Y

Item 7 .a.(2)

In November 2000, in response to a rash of owner-move-in evictions, Berkeley voters adopted Measure Y as an amendment to the Rent Stabilization and Eviction for Good Cause Ordinance. Known as Berkeley's owner move-in (OMI) law, Measure Y was subsequently codified under

Berkeley Municipal Code (B.M.C.) Section 13. 7 6.130A.9. It allowed property owners to evict tenants so that the owner or qualifying relatives could move into rental units, but placed restrictions and conditions on such evictions. 1 In addition, property owners who evicted tenant households that qualified as low income were required to pay $4,500 relocation assistance prior

to the tenants relinquishing possession of their rental units.

After an owner move-in eviction, the rental rate for the next tenancy established in the vacant unit cannot exceed the lawful apparent rent ceiling that applied to the former tenancy. (Rent Board Reg. 1016). Furthermore, the evicted tenant/shave the opportunity move back into the

. unit if they expressed an interest in doing so at the time of the eviction. (B.M.C. 13.76.130A9.o.)

1Under B.M.C. l 3.76.130A.9b., an owner could evict a tenant so that the owner, or his/her spouse, child, or parent could occupancy in a rental unit. The owner or relative must have intended to live in the unit for 36 continuous months. Additionally, with few exceptions, property owners could not evict seniors or disabled tenants who have occupied their rental units for five years or more in buildings with four or more units.

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II. Measure AA

In November 2016, Berkeley voters passed Measure AA, which amended Measure Y. While

many of above-referenced provisions of the owner move-in law remain the same, Measure AA

implemented the following substantial changes:

• Property owners who evict tenants for owner move-in purposes must pay a standard

relocation fee of $15,000 to all tenant households where at least one occupant has resided

in the unit for more than one year.

• Qualifying low-income, disabled, elderly, families with minor children, or those

tenancies that began prior to 1999 are eligible to receive an additional $5,000.

• Families with minor children are protected from being evicted during the school year.

• A City or Rent Board hearing examiner can adjudicate disputes regarding a tenant's

entitlement to the additional relocation assistance.

Measure AA went into effect on December 19, 2016. The law's relocation assistance provision

applies retroactively to any OMI notice that had not yet expired at the time the law went into

effect. (B.M.C. 13.76.130A9.p.(v).) As such, tenant households (where at least one occupant

has resided in the unit for more than one year) that were served an OMI Notice after October 20,

2016 were entitled to the standard relocation assistance of $15,000, and the additional $5,000

payment if eligible.

Finally, as under Measure Y, Measure AA requires that" ... at least twice annually, Rent Board

Staff shall report to the Rent Board regarding the occupancy status of units possession of which

has been recovered ... within the prior thirty-six months." (B.M.C. 13.76.130A9.r.)

Attached is a report analy~ing OMI eviction notices filed with the Rent Stabilization Program

from January 1, 2015 -December 31, 2017.

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OMI REPORT: January 1, 2015 - December 31, 2017

STAFF MONITORING

To ensure that tenant protections are not violated, Rent Board staff endeavors to contact occupants living in units that have received OMI eviction notices at least once every six months. Staff sends a letter to the unit notifying the occupant of the rent ceiling that would apply ifs/he is a tenant rather than the owner or qualified family member (Attachment 1 ). Staff also researches information in our databases and county ownership records to ensure that residency information is correct. Furthermore, staff conducts focused site visits to attempt to ascertain residency when there is a question as to whether the owner or family member actually lives in the unit after an OMI notice is sent.

When staff receives information that a new tenant may be living in a rental unit following an OMI eviction, staff may contact the owner and/or tenant to ascertain the facts and circumstances pertaining to this occupancy. Staff often will then provide counseling to both the owner and tenant when appropriate regarding the proper rent ceilings for that unit. Additionally, when appropriate, staff will attempt to contact the tenant(s) who were displaced from a rental unit due to an OMI notice to explain the tenants' rights if staff determines that the landlord has violated the Ordinance.

OMI NOTICES AND RELOCATION ASSISTANCE PAYMENTS

Notices Filed With the Rent Stabilization Program Between January 1, 2015 and December 31, 2017, seventy O MI eviction notices were filed with the Rent Board.2 The following table shows how the 70 notices were distributed amongst unit types, and the number of instances where a unit is tenant occupied.

Unit designation Number of Unit currently notices sent tenant-occupied3

Single family home 15 0 Duplex 30 5 Triplex 6 1 Fourplex 13 6 Five units & more 6 1

Of the seventy notices, 46 were for owner-move-in, 22 involved qualifying relative move-in evictions, and two are unknown.

Relocation Assistance, Pre-Measure AA Fifteen households (32% of the total in this reporting period that received OMI notices before Measure AA applied) alleged low-income status. All but two (87%) have received the $4,500 relocation assistance payment.

2 During the January 2016-June 2016 period, two notices were filed for the same address. The earlier notice was deficient so the landlord rescinded and filed again at a later date. That address is only included once for this report. 3 The data regarding tenant occupancy in this column only includes units where the information currently available to staff indicates that a unit is tenant occupied.

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Relocation Assistance, Post-Measure AA Of the 24 OMI cases filed with the Rent Board after the Measure AA relocation payment

requirements applied, seven notices were rescinded, and in one case staffs investigation revealed

that the owner did not serve an OMI notice; rather, the tenants informed the landlord that they

were moving out and he decided to move in afterwards (thus, no relocation was due). In another

case, no relocation was due because the tenants had not lived in the unit for a year or more. In

two cases, it is unclear whether OMI evictions took place as there was no notice filed with the

Rent Board, just the tenant's claim for relocation assistance. In one of these cases, the tenant and

landlords are in private mediation, and the other case is under investigation.

Of the remaining cases, 13 households received the standard relocation payment. In six cases,

the evicted household qualified for and received the extra $5,000 relocation payment.

Qualified for Extra $5,000 Relocation Payment Reason Number of Cases Percent of Total Minor Child 4 67% Disabled 1 17% Low Income 1 17% Elderly 0 0%

Long-term Tenant 0 0%

NARRATIVE DATA FROM STAFF RESEARCH

Single Family Homes - Of the fifteen OMI notices served on single family homes, thirteen were

Costa-Hawkins exempt tenancies. One notice was served on a rent controlled tenant, who

vacated voluntarily and the relocation payment was refunded to the owner. In another case, the

notice was served on a rent-controlled condominium that is currently owner occupied.

Duplexes -Thirty notices ·were served on duplexes during the current reporting period. Staff has

verified that the owner or family member named in the notice has moved in for sixteen of these

cases. Seven properties are still under investigation. In one case, the parties are involved in

private mediation. Six properties appear to be tenant-occupied.

In another case, the notice was rescinded and the tenant took a buyout, but staff continued to

monitor the unit because the landlord sold the property without moving in. A new tenancy was

registered for the unit in October of 201 7, but the rent appears legal.

In another case, the notice was rescinded, but the owner is removing the building from the rental

market under the Ellis Act.

In one case, the qualified family member identified in the notice moved out in early 2018 and the

owner's son is now living there.

Thirteen of the thirty duplex units that received OMI notices are potential "golden duplexes" (i.e.

full exemption if an owner of record of at least 50% occupies one of the two units). Of those

thirteen properties, staff has verified that nine of the properties are cu1Tently owner~occupied,

thus fully exempt from the ordinance. Three properties are not fully exempt since a family

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member and not an owner of record moved in, and one is undetermined.

Triplexes - Six OMI notices were served on triplex units during this reporting period. Of those, three are currently occupied by the owner or the qualifying relative named in the notice, one tenant household remains in possession, and two cases are still under review.

Fourplexes - Thirteen notices were served on tenants residing in fourplexes during this reporting period. Staff has verified owner-occupancy status for five cases, and one notice was rescinded with the tenants still in possession.

In one case, the tenant moved out under the impression that the owner was terminally ill and wanted to reoccupy the unit. The property was sold in July of 2016, and the unit subject to the OMI notice was rented. Staff attempted to contact the former tenant, but did not receive a response, and has received no response to letters sent to the unit regarding the appropriate rent ceiling. Another new tenancy has since been registered for the unit.

In another case, the unit was subsequently rented at _market rate, but the rent was restored to the former rent ceiling on appeal to the Board. In one instance, the tenant took a buyout after the notice was served, and the unit was rented at what appeared to be a legal rate; this unit has since been re-rented. And at two properties where staff had previously verified owner/family moveins, the units are now rented, but the new rents appear legal.

Finally, at a property where two OMI notices were served so that the owner could move into one unit and a family member into another, one of the notices was rescinded after the tenants settled litigation with the owners. An agent for the property indicated one of these units is for rent and the other unit is owner-occupied. Staff will continue to monitor both units.

Five or more units - Six OMI notices were served to buildings with 5 or more units. Staff has verified owner-occupancy status for two cases, two cases are still under review, and one notice was rescinded. In one case, there was no notice filed,just the tenant's claim for relocation. Upon investigation, the unit appeared owner-occupied, but staff will continue to monitor.

OWNERSHIP HISTORY PRIOR TO OMI FILING

Previously, the committee requested data showing how long a landlord owned the property prior to filing an OMI notice, which is reflected in the table below for the current reporting period.4

Ownership Prior to notice # props. less than 1 year 23 Between 1 and 2 years 3 2 to 5 years 7 5 to 10 years 10 More than 10 years 27

Fifty-three percent (53%) landlords served notices after owning the property for five years or more. Forty-seven per cent (47%) of the notices were served by landlords who owned the property for fewer than five years. Thirty-three per cent (33%) of the notices were served by

4 This data includes several title transfers. For the purpose of calculating data, we used the time between the transfer date and the notice of eviction.

2125 Milvia Street, Berkeley, California 94704 TEL: (510)981-7368 Ci TDD: (510)981-6903 0 FAX: (510)981 -4940

E-MAIL: [email protected] O INTERNET: www.cityofberkeley.info/rent/

landlords who owned the property for less than a year before serving the notice.

LOCATION OF OMI PROPERTIES

General Distribution The map below shows the general distribution of OMI notices for the current reporting period.

OMI Notice Location Map January 2015- December 2017

• Ownef Notice

e Fami ly Notice

• Ownor NotiC8•last6 month

• Fami ly Notice-last 6 months.

+ Unknown-last 6 month,;

Geographic Location and Market Area At its August 3, 2016 meeting, the Committee requested that staff include the street name and

2125 Milvniu Street, Berkeley, California 94704 TEL: (510)981-7368 0 TDD: (510)981 -6903 CJ FAX: (510)981 -4940

E-MA(L: [email protected] !J INTERNET: www.cityofberkeley.info/rent/

geographic location of each property subject to an OMI eviction notice. The table below shows the geographic location and market area for the last six months of the current reporting period, and Attachment 2 shows this information for all properties subject to OMI notices during the cmTent reporting period. There were only four OMI cases in the last 6 months of the cmTent reporting period, 75% of which were in the South or Central Berkeley area.

Date filed Street · . Market Area 7/21/2017 1914 Stuart St. #C South Berkeley (Area 5) 8/21/2017 1339 Hearst Ave. Central Berkeley (Area 2) l l/30/2017 1225 Monterey Ave. r North Berkeley (Area 1) 12/1/2017 1278 65 th St. South Berkeley (Area 5)

The table below shows Market Area information for all notices in the current three-year reporting period, and shows the highest concentrations of OMI notices served in the South and Central Berkeley Market Areas.

Market Area Number of Notices North Berkeley (Area 1) 8 (11 %) Central Berkeley (Area 2) 21 (30%) University Area (Area 3) 7 (10%) West Berkeley (Area 4) 6(9%) South Berkeley (Area 5) 28 (40%)

(*l~l~Md~~ ~T_,,.., __ _

-...-CA,.~"' 1 - Orn,..- Tnct'~/ .. _ ......, __

Number of OMI Notices by Council District At its April 13, 2017 Meeting, the Committee requested information about the number of notices served in each City Council District. The table below summarizes this information for the current reporting period:

2125 Milvia Street, Berkeley, California 94704 TEL: (510)98.l -7368 fJ TDD: (510)981 -6903 0 FAX: (510)981-4940

E-MAIL: [email protected] iJ INTERNET:www.cityotberkeley.info/rent/

Council District Number of Total Notices Number of Notices, Last Six Months

1 10 (1 4%) 1 2 24 (34%) 1

3 17 (24%) 1 4 2 (3%) 0 5 6 (9%) 1 6 4 (6%) 0

· 7 1 (1%) 0 8 6 (9%) 0

CITY .. i COUNCIi: DISTRICT

1".. ct PRECINCT :~ r>OUNDARIES

CREATION OF MULTI-GENERATIONAL FAMILY OCCUPANCIES

The committee previously expressed interest in receiving information regarding the number of OMI evictions that involved an owner or a qualified family member moving into a unit where there is another unit on the property that is already occupied by either the owner or another family member. The information currently available to staff suggests there are six such cases in the current reporting period. In one of these cases, two notices were served at the same property so that the owners could move into one unit, and a daughter into another. However, one of the

· notices has since been rescinded after legal action by the tenants. A sign outside the property listed two units for rent, and the listing agent confirmed that one of the units that received a notice is for rent.

2125 Milvia Street, Berkeley, California 94704 TEL: (510)981-7368 fJ TDD: (510)981-6903 CJ FAX: (510)981-4940

E-MAIL: [email protected] U INTERNET:www.cityotberkeley.info/rent/

CONCLUSION

During this reporting period (January 2015 - December 2017) the Board received a total of seventy OMI eviction notices. During the initial three-year monitoring period (December 2000-December 2003), the Board received 110 eviction notices. Historically, after the passage of former Measure Y, the number of evictions reported for each three-year period was significantly less than the initial period. This trend can be seen in Attachment 3, which shows (in six-month blocks) the number of O MI eviction notices the Board has received since September 2000. The first reporting period in the table reflects only four months (September-December 2000), but during this time, forty-seven of the fifty-six evictions occurred during the three months prior to the adoption of former Measure Y. While the Rent Stabilization Program did not track the number of OMI notices received prior to September 2000, it has been reported that the number of notices issued during the period from December 1997 to December 2000 was similar to or greater than the four-month period from September to December 2000, before former Measure Y became law.

Although the diligent implementation of former Measure Y reduced the displacement of longterm tenants and required some relocation assistance for the most vulnerable displaced tenants, as housing prices and rents increased dramatically in recent years, so did the number of OMI evictions. As noted in the last report, the number of OMI evictions started to pick up in early-2014 (e.g. , there were 19 OMI notices filed from January-June 2014). Between 2014 and 2016, there were 78 notices filed.

In November 2016, Berkeley voters passed Measure AA, which requ1res a standard relocation payment of $15,000 and an extra payment of $5,000 if a member of the evicted household is elderly, disabled, a long-term tenant, a minor child, or low income.

Since Measure AA went into effect, there have been 24 OMI notices filed, seven of which have been rescinded. A rescinded notice does not necessarily indicate that the tenants remain in the unit. In some instances, the parties negotiate private buyouts, and in one case the building will be removed from the rental market under the Ellis Act.

During the last six-months of the current reporting period, there were four notices filed, the lowest number since the six-month period of July- December 2013 (3 notices). Despite this, there were still 21 % more notices filed during the current three-year reporting period (January 201 5 - December 201 7) that in the prior three-year reporting period January 2011 - December 2014. The notices are most heavily concentrated for properties in South and Central Berkeley and City Council Districts 2 and 3.

Attachment 1: Sample of letter sent to select rental units that received an owner-move-in eviction notice between January 2015 through December 2 017.

Attachment 2: Table reflecting geographic location and market area of properties subject to OMI notices for the period of January 1, 2015-December 31, 2017.

Attachment 3: Table of Measure AA notices filed with the Rent Board for the period of September 2000 through December 2017.

2125 Milvia Street, Berkeley, California 94704 TEL: (510)981 -7368 0 TDD: (510)981-6903 [J FAX: (510)981 -4940

E-MAIL: [email protected] 17 INTERNET: www.cityofberkeley.info/rent/

ATTACHMENT 1

Sample of Letter Sent to Select Rental Units that Received OMI Notices . .


March 20, 2018

. Berkeley, CA 94704

RE: Owner Move-in eviction at

Dear Occupant:

Our records indicate that a prior tenant in your unit was evicted so that the unit could be occupied by the owner or a close relative of the owner. Berkeley Municipal Code section 13.76.130.A(9)(p) requires the

Rent Board to monitor your unit for three years to ensure that the unit is, in fact, occupied by the owner or a relative of the owner. Therefore, you will receive a letter like this once every six months during this

three year period. [f you are the owner or a non-rent paying parent, spouse, domestic partner, or child of

the owner, it is not necessary for you to respond to this letter.

If you are not the owner and are paying rent, your rent should not exceed:

$1449.69

If you are paying rent in excess of this amount, you should contact me at (510) 981-4903 . Also, Rent Board Counselors are available to explain your rights and options, including the procedure for recovering any rent overcharges you have paid. An explanation of your rights may also be found on the Rent Board's web site: www.cityofberkeley.info/rent.

Sincerely,

Matthew Siegel Staff Attorney

2125 Milvia Street, Berkeley, California 94704 TEL: (510)981-7368 iJ TDD: (510)981-6903 !] FAX: (510)981-4940

E-MAIL: [email protected] Ci INTERNET: www.cityotberkeley.info/rent/

ATTACHMENT 2

Geographic Location and Market Area of Properties Subject to OMI Notices

~~;.:-·-~-=---~-~----~- __ -][l\!~n\e(~r~a__ . ~ _ ~----- -~-----J 2/9/201 5

3/4/2015

3/11/2015

3/23/201 5

4/6/2015

4/7/2015

4/9/201 5

4/9/2015

4/16/2015

4/23/201 5

5/14/2015

5/15/2015

5/15/2015

6/1/2015

6/2/2015

6/22/2015

7/13/2015

7/20/2015

8/3/2015

8/7/2015

8/27/2015

10/9/2015

10/15/2015

11/12/2015

11/30/20 15

11/30/2015

1/21/2016

l/25/2016

2/3/2016

2/17/2016

2202 Acton St. Central Berkeley (Area 2)

1315 Parker St. South Berkeley (Area 5)

2631 Regent St. University Area (Area 3)

2728 Dohr St. South Berkeley (Area 5)

1359 Hearst Ave. #3 Central Berkeley (Area 2)

162 Panoramic Way University Area (Area 3)

1308 Addison St. lower Central Berkeley (Area 2)

1308 Addison St. upper Central Berkeley (Area 2)

2139 Stuart St. South Berkeley (Area 5)

2729 Dohr St. South Berkeley (Area 5)

1412 Delaware St. Central Berkeley (Area 2)

123 7 Carrison St. South Berkeley (Area 5)

123 7 1/2 Carrison St. South Berkeley {Area 5)

917 Bancroft Way #B West Berkeley (Area 4)

1400 Oregon St. South Berkeley (Area 5)

1865 Alcatraz Ave. South Berkeley (Area 5)

1702 Fairview St. South Berkeley (Area 5)

2133 Derby St. South Berkeley (Area 5)

2819 Prince St North Berkeley (Area 1)

1 Panoramic Way University Area (Area 3)

846 Allston Way West Berkeley (Area 4)

1640 Julia St. #C South Berkeley (Area 5)

2934 King St. South Berkeley (Area 5)

2412 1/2 5th St. West Berkeley (Area 4)

2730 Acton St. South Berkeley (Area 5)

1235 Santa Fe Ave. #A Central Berkeley (Area 2)

1411 Northside Ave. #A Central Berkeley (Area 2)

1817 Oregon St. #8 South Berkeley (Area 5)

1399 Harmon St. South Berkeley (Area 5)

1610 Ashby Ave South Berkeley (Area 5)

2125 Milvia Street, Berkeley, California 94704 TEL: (510) 98.1-7368 (981-RENT) • TDD: (510) 981-6903 • FAX: (510) 981-4940

E-MAIL: [email protected] •OINTERNET: www.cityotberkeley.info/rent

OM! Report to Eviction/Section 8/Foreclosure Committee May 4, 2018 Page 12 of 15

tUm rut1 n rr.:ri

2/19/2016

3/22/2016

3/23/2016

3/29/2016

4/4/2016

4/4/2016

4/8/2016

4/20/2016

5/17/201 6

5/24/2016

6/6/2016

6/13/2016

6/24/2016

9/7/2016

9/29/2016

10/13/2016

11/16/2016

11/10/2016

12/12/2016

12/16/2016

12/22/2016 1/17/2017

1/25/2017

2/17/2017

4/14/2017

4/21 /2017

5/2/2017

5/5/2017

5/5/2017

5/8/2017

6/8/2017

6/1 4/2017

6/19/2017

6/19/2017

6/21/2017

6/26/2017

7/21/2017

lJ!Tiimf

1465 Bancroft Way Central Berkeley (Area 2)

1106 Camelia St Central Berkeley (Area 2)

1320 Josephine St. Central Berkeley (Area 2)

1627 Cedar St. Central Berkeley (Area 2)

1404 Oxford St. North Berkeley (Area 1)

1624 Derby St. #A . South Berkeley (Area 5)

1427 Milvfa St. North Berkeley (Area 1)

1631 La Vereda Rd. #2 University Area (Area 3)

17 40 Rose St. Central Berkeley (Area 2)

1560 Scenic Ave. North Berkeley (Area 1)

2022 Virginia St. #5 University Area (Area 3)

1140 Addison St. Central Berkeley (Area 2)

1908 Parker St. South Berkeley (Area 5)

2112--6th Street West Berkeley (Area 4)

1502 Chestnut St. Central Berkeley (Area 2)

2727 California St South Berkeley (Area 5)

2401 Ward St. #B University Area (Area 3)

1631--63rd St. South Berkeley (Area 5)

1111 Allston Way, #A Central Berkeley (Area 2)

1546 Le Roy Ave. #upper North Berkeley (Area 1)

1316MLKJr. Way#A North Berkeley (Area 1)

2705 Ridge Rd. #4 University Area (Area 3)

1434 Addison St. Central Berkeley (Area 2)

2319 Woolsey St. #A South Berkeley (Area 5)

2327 Browning St. #B Central Berkeley (Area 2)

1820 Virginia St. #B Central Berkeley (Area 2)

1708 Woolsey St. South Berkeley (Area 5)

2217--9th St. #3 West Berkeley (Area 4)

2217--9th St. #1 West Berkeley (Area 4)

1324--67th St. South Berkeley (Area 5)

1452 Acton St. Central Berkeley (Area 2)

3006 MLK Jr. Way #B South Berkeley (Area 5)

1638 Fairview St. South Berkeley (Area 5) #l(upper) 158 Brookside Dr North Berkeley (Area 1)

2125 Browning St. #A Central Berkeley (Area 2)

3049 Shattuck Ave. #1 South Berkeley (Area 5)

1914 Stuart St. #C South Berkeley (Area 5)

2125 Milvia Street, Berkeley, California 94704 TEL: (Sl0)981 -7368 [i TDD: (510)981-6903 iJ FAX: (510)981-4940

E-MAIL: [email protected] !J INTERNET: www.cityofberkeley.info/rent/

OMI Report to Eviction/Section 8/Foreclosure Committee May 4, 2018 Page 13 of 15

~ -,,~-,~ffi§]~'\~ ;,;''Bl'~-~ -· "'~~1 ate· trcct ··'; .. II;,, ...... , ' A'rcar· ······-,··-·~ ,--. '1 ' ~~ - -.l~ ~'4~ 1i.:...f'.!.i~L.1.i,L:JJ±~~;i_~ r...i.:: .,

8/21/2017 11/30/2017 12/1/2017

1339 Hearst Ave. Central Berkeley (Area 2) 1225 Monterey Ave. North Berkeley (Area 1)

1278 65 th St. South Berkeley (Area 5)

2125 Milvia Street, Berkeley, California 94704 TEL: (510)981 -7368 U TDD: (510)98.1-6903 fJ FAX: (510)981 -4940

E-MAIL: l'[email protected] Cl INTERNET: www.cityotberkeley.info/rent/

OMI Report to Eviction/Section 8/Forcclosure Committee May 4, 20 18 Page 14 of 15

ATTACI-Th1ENT 3

OMI Eviction Notices Filed With Berkeley Rent Board

Date of Eviction Notice Number of Notices Received

September - December 2000 56

*(only four months) January-June 2001 32

July-December 2001 21

January - June 2002 17


January-June 2003 13

July - December 2003 10







January-June 2007 7






January-June 2010 6


January-June 2011 6


January-June 2012 5



July- December 2013 3




2125 Mi!via Street, Berkeley, California 94704 TEL: (510)981-7368 0 TDD: (510)981 -6903 [] FAX: (510)981-4940


OM! Report to Eviction/Section 8/Foreclosure Committee May 4, 2018 Page 15 of 15


January- June 2016 17




2125 Milvia Street, Berkeley, California 94704 TEL: (510)981-7368 fJ TDD: (510)981-6903 U FAX: (510)981-4940

E-MAIL: [email protected] c: INTERNET: www.cityotberkeley.info/rent/

l

I I I

Item 7.a.(3)

BERKEL:EY RENT BOARD April Tip of the Month

Subletting

DID YOU KNOW?

Subleasing your unit for the summer might be prohibited by your lease. Check the terms

before you start!

WHAT TO KNOW ABOUT SUBLETTING:

1. HOW DO I KNOW IF I CAN SUBLET: Check your lease. Unless the lease specifically prohibits subletting, you are likely able to sublet

2. LANDLORD APPROVAL OF SUBTENANTS: Some leases require landlord approval of sub-tenants. Send the landlord qualified candidates to approve

3. SUBLEASE ADDENDUM: A sublease addendum is important to keep track of who is an 'original occupant' and what the terms of the sublease are

4. PROPORTIONAL APPORTIONMENT: A master or co-tenant cannot charge a subtenant more than the amount proportional to the space they occupy

5. RENT CEILING: A master tenant subletting an entire unit cannot charge A subtenant an amount that is higher than the monthly rent the master tenant is paying the landlord

SUBLET RESOURCES

Subletting with the intent to return to

the unit has different implications than

finding a permanent replacement

roommate. Call us for more

information!

CONTACT THE BERKELEY RENT BOARD Contact the Berkeley Rent Board with any questions regarding

landlord/tenants' rights and responsibilities in Berkeley:

PHONE: (510) 981-RENT EMAIL: [email protected]

WEBSITE: http: //www.cityofberkeley.info/rent

UC BERKELEY

Public Service Center

Item 7.a.(4)

~ERKEL:EY RENT ~OARD May Tip of the Month

Security Deposits

DID YOU KNOW?

Deductions f ram a security deposit must comply with state law!

SECURITY DEPOSIT RECOVERY 101

1. WALK-THROUGH INSPECTION: Landlords are required to inform tenants

in writing of their right to an inspection of the unit prior to the

tenant's move-out date

2. DEPOSIT CAN BE USED FOR: Unpaid rent, repairing damage beyond normal wear and tear, necessary cleaning to bring unit to move-in condition, and in some cases restoring personal property

3. WITHIN 21 DAYS OF TENANT VACATING THE UNIT: Landlord must

provide itemized list of deductions (if applicable) and return any remaining portion of the deposit to the tenant

4. IF MORE THAN $125 IS DEDUCTED FROM DEPOSIT: Landlord must

attach copies of documents showing actual costs incurred, including invoices and receipts

5. IF A LANDLORD FAILS TO REFUND THE SECURITY DEPOSIT: Tenant may

be eligible to file a petition with the Rent Board and/ or bring a claim against the landlord in small claims court

CONTACT THE BERKELEY RENT BOARD

Contact us with any questions regarding landlord/tenant rights and · responsibilities in Berkeley:

PHONE: (510) 981-7368 EMAIL: [email protected] WEBSITE: www.citvofberkelev.info/ rent

SECURITY DEPOSIT

RESOURCES

Item 7.a.(6)

---------- Forwarded message ----------From: Winnie Kao, Advancing Justice -Asian Law Caucus <comms@advancingjusticealc.org> Date: Tue, May 8, 2018 at 12:10 PM Subject: Justice for Oakland Chinatown Tenants To: [email protected]

~ ADvANc1NG ~> JUSTICE ~ ASIAN LAW CAUCUS

- ' . ' ' ' ~, . r' • r , , ' , ' , ' , I i, j('

' • • ' ' ' ' ' ' ' • r' I ' • ~' ' • • - \ ' > : ,i'

Dear Igor,

Here at Advancing Justice - Asian Law Caucus, we're proud to stand alongside tenants in Oakland's Chinatown. We know that these tenants, often low-income immigrant families with limited English proficiency, form an integral part of the Oakland community, just as we know that this community can only remain a welcome space for immigrants if its residents feel empowered to defend their rights.

That's why we're happy to share news of the recent settlement of our tenant lawsuit against building owner James Kilpatrick and property management company GreenGroup LP. The settlement for the tenants and city of Oakland includes a $1 million payment and a permanent injunction which will protect the residents against any similar abusive actions in the future. We are very grateful to our co-counsel Pamela Kong and Robert Salinas at Sundeen & Salinas and Scott Hugo, Erin Bernstein, and City Attorney Barbara Parker at the City of Oakland, for being an integral part of our success.

Video honoring Oakland's Chinatown Residents from

Advancing Justice - ALC's 45th anniversary dinner

In long fights, there are human stories of those who are on the front lines of the battle. Here are some snapshots of what this victory means to our team:

This case was a long and hard-fought battle, but ultimately justice prevai led. Most importantly, it sends a clear message to property owners and landlords that coercive attempts to push out long-time residents and reduce affordable housing wi ll not be tolerated in Chinatown or anywhere else.

Our work is far from finished. We're currently litigating a case in San Francisco's Chinatown where the landlord has also engaged in a coercive campaign of harassment to drive low-income tenants out of their rent-controlled homes. These instances remind us that the fight to defend tenants' rights is both ongoing and imperative.

Today, we're celebrating a major victory with this settlement - not just for the Oakland residents but for everyone, because we all gain from protecting our communities.

Tomorrow, it's back to work.

In solidarity,

Winnie Kao

Litigation Director

Senior Staff Attorney, Workers' Rights

I

Share with your friends and colleagues!

Stay Connected ma•

Asian Law Caucus, 55 Columbus Avenue, San Francisco, CA 94111

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fhousands rally in Berlin over world-record property prices I News I OW I 14.04.2018 Page 1 of 4

Item 7 .a.(8)

fOP STORIES

\JEWS

Thousands rally in Berlin over world-record property prices Berliners are calling on the city government to address skyrocketing housing costs. Lawmakers

liave disputed recent reports that the German capital has had the biggest price hikes in the

world.

Thousands of people defied the rain in the German capital, Berlin, on Saturday to protest the rising cost of

housing amid rampant gentrification. Berlin has the fastest-rising property prices in the world, according to a

report published this week.

4/71/701 R

Thousands rally in Berlin over world-record property prices I News I DW I 14.04.2018

"This isn't a demonstration; we're all just going to an apartment viewing," read one ironic banner as the

march moved through Berlin's Kreuzberg district, once a derelict part of West Berlin largely cut off by the

Wall , now a bustling neighborhood of immigrants, students and hip cafes - an identity that is being

threatened as decades-long residents are being priced out of their dwellings.

Page 2 of 4

According to a study published by real estate consultancy Knight Frank on Thursday, prices in Berlin rocketed

by 20.5 percent in 2017 alone.

ve real estate market - with 9 billion . Q:ti~1'7 compared to J·l 1i)iUiorn emns

. 'flaris,w speotively', during the same pertad.

1More than 8:5% of Bef1urn !PmpertHes are renrals ( lmmolJieiienScout24)

• On averag~, BerJin spend 21 !l)erc~t of their nethousehoid incorne.orn rnnt ,(lm111ohilieriScout24.}

• Eanier this yeaf, tile ,im~te.xp~risiive pr,operJ,y was so~ .at 31,889. euros per square meter in MID:e_ (BerJiner Zei.rurig) ·

©OW

The firm's "Global Residential Cities Index" showed that while most housing prices dropped around the world

in recent years, Berlin was one of only 12 cities to have had a price growth of over 20 percent in 2016.

Overall, prices have increased by 120 percent since 2004, as low unemployment and foreign investment have

buoyed t he city. However, Germany's central bank believes that properties may be overvalued by as much as

35 percent in Berlin. Of the 1.9 million affordable homes Germany is lacking, 310,000 are needed in Berlin.

http://www.dw.com/en/thousands-rally-in-berlin-over-world-record-property-prices/a-43389523 4/23/2018

Thousands rally in Berlin over world-record property prices I News I DW I 14.04.2018 Page 3 of 4

About 182 different Berlin-based renter initiatives took part in Saturday's demonstration, affectionately

nicknamed the "Renting Nonsense" protest. Initially, organizers expected about 4,000 participants to show

up - but as the sun came out later in the day, witnesses said it looked like more than 10,000 had arrived to

call on the Berlin Senate, the executive body governing the city and state of Berlin, to do something about the

dramatic increase in the cost of living.

But the Senate has contested the numbers put forward by some recent studies, saying that rents have risen

only by 1.4 percent. Berlin's housing secretary, Sebastian Scheel of the Left party, was quoted by the local

Morgenpost as saying that higher prices were necessary "to invest continuously in new residential

construction and maintenance."

OW RECOMMENDS

Berlin property price growth tops global list: Knight Frank report Berlin property prices skyrocketed in 2017, outpacing all other m;ijor centers, according to a new report. Three other

German cities also ranked in the global top 10. (1~>..04.:2018)

Keeping Berlin affordable DW spoke with Sebastian Scheel, the state secretary for ho us ing in the .~tate of B1.~ rl i11 . v\'ith rent and property prices

soaring, local government says it's trying tu keep Berlin affordable for everyone But is it working'? (0-1-.08 .2017 )

Germany's property boom Jac.:opo Mingazzin i leads one of Berlin's lJ.rgest real t'.stat.1:; =-,ervices companies, . .\ccentro GmhH. He bel ieves Germany

needs to become a nation of homeowners, not tenants . :',Jina Haase and Sumi So maskanda asked why. (cq .08.2017)

German retailer Aldi set to build 2,000 homes above its Berlin stores Amid intense rivalry in the groceri; business, ,\JJi Nord say:; tl wants to put. apartments above s ome of its supermarkets.

Real estate in the Gt:rman capital is at peak demand, amid high immigration and a lack of ne\\' homes. (01.02.2018)

US billionaire Warren Buffett enters crowded Berlin property market Investor Warren Buffett's real estate arm has entered into a franchise deal wi th a firm that sells high-end Berlin

apartments. But one property analyst told DW that the billionaire may hJ.ve mi:,sed the property boom. (06.03.:10 18)

Date 14.04.2018

Author Elizabeth Schumacl1er

Related Subjects Berlin

Keywords Berlin , affordable t1ousing , property , demonstration , protest

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httn://www.dw.com/en/thousands-rallv-in-berlin-over-world-record-orooertv-orices/a-43389523 4/23/2018

Stephen Barton:. Why rent control is a good thing

Santa Cruz Sentinel (http ://www.santacruzsentinel.com)

Stephen Barton: Why rent control is a good thing

Sunday, April 15, 2018

By Stephen Barton

Page I of 2

Item 7.a.(9)

Communities in the Bay Area need to protect tenants from rising rents and unfair evictions. The average rent in the

Bay Area is double the average rent in the rest of the United States, creating a massive transfer of income from

tenants to real estate investors.

In the past five years,according to the U.S. Bureau of Labor Statistics, the Bay Area cost of living for everything

except rent went up only 6 percent, but rents increased by 32 percent.

These rising rents have displaced tens of thousands of Bay Area residents from their homes. As Professor Matthew

Desmond found while researching his recent book "Evicted: Poverty and Profit in the American City," when tenants

are forced to choose between spending nearly all of their income in rent or moving away from their jobs, relatives

and communities to find housing they can afford, it generates enormous stress that can be devastating to their

physical and mental health.

We know that stable communities are safer and healthier communities. Rent control is the only way to provide

tenants with the stability our communities need right now - not thirty years from now, after construction of massive

amounts of new housing that may or may not ever be built.

Opponents ofrent control admit that it helps tenants to stay in the community longer, but argue that "reduced

mobility" is a bad thing, when really, it's the whole point. Families need stability to do well at work and in school

and maintain connections with relatives and friends. Some economists find it more "efficient" to kick retired people

and working families out of their rented homes so that higher-paid newcomers can move in. That's not the kind of

community most of us want to live in.

One of the hidden assumptions of standard economic analysis is that it values people based only on how much

money they make rather than on what they mean to their community or what they deserve as human beings.

Rents in the Bay Area are far higher than what is actually necessary to profitably operate and maintain rental housing

- double the national average. Low income families in the Bay Area often live in substandard housing while paying

rents that would get them into new apartments with exercise rooms and swimming pools in other parts of the U.S.

That's because in our tight market they have no bargaining power and will often be evicted just for complaining.

With rent control and "just cause" eviction protections, tenants can get repairs made when they are needed.

Under rent control, the landlord receives regular annual rent increases to keep up with inflation. They select new

tenants and maintain the property as usual - they just can't take advantage of our broken market to push people out

of their rented homes to get extra profits.

Much of the rent that Bay Area tenants pay is really just an admission charge for the privilege of living here. As the

real estate industry is fond of saying, the three most important determinants of real estate values are "location,

location and location". And what makes our location so valuable? The creative culture that our diverse population

generates, and the successful industries that grow from that creative culture; our beautiful natural setting; and our

government services such as schools, transportation, parks and public safety.

httn ·//wum., ,rnnt<'ll'r11nPntinPI l'nm/nnininn/?O 1 R041 °'/<:tenhen-h::irtnn-whv-rent-control-is-a-Q:OOd-thinQ:&t... 4/16/2018

Stephen Barton: Why rent control is a good thing Page 2 of2

In the end, it's Bay Area residents past and present who made this a great place to live, homeowners and renters alike. Our current laws allow real estate investors to extract higher rents and higher profits from the value we all created. With rent control and just-cause eviction protections, the tenants who help make this a great place to live won't get pushed out of their homes.

That seems fair to me.

Stephen Barton is the former housing director for the City of Berkeley, where his work on housing affordability won national and regional awards from the American Planning Association.

URL: http://www.santacruzsentinei.com/opinion/20180415/stephen-barton-wby-rent-control-is-a-good-thing

© 2018 Santa Cruz Sentinel (http: //www.santacruzsentinel.com)

http://www.santacruzsentinel.com/opinion/2018041 5/stephen-barton-why-rent-control-is-a-good-thing&t... 4/16/2018

Landlords turned 14 SF apartments into illegal Airbnbs, city attorney says - SFGate

BREAKING NEWS

Did the president just admit to a campaign finance law violation?

Giuliani's other big admission may be even worse for Trump

9:45 AM Giuliani comments on Stormy payment raise legal questions

Page 1 of 6

Item 7.a.(10)

SF GATE https://www.sfchronicle.com/business/article/Landlords-turned-14-San-F rancisco-apartments-into-12878662. php

Landlords turned 14 SF apartments into illegal Airbnbs, city attorney says By Carolyn Said Updated 6:16 pm, Tuesday, May 1, 2018

https://www.sfgate.com/business/article/Landlords-tumed~ l 4-San-Francisco-apartments-into-12878662.ph... 5/3/2018

Landlords turned 14- SF apartments into illegal Airbnbs, city attorney says - SFGate Page 2 of 6

IMAGE 1 OF4 Buy Photo

A motion filed by city attorney Dennis Herrera (pictured) said that two landlords, Darren and Valerie Lee, took "far-reaching,

devious" steps to continue their illegal rentals, engaging friends and ... more

Despite tougher enforcement, turning San Francisco apartments into Airbnb units remains highly

lucrative. Two landlords reaped more than $700,000 in profits during 11 months of illegal rentals,

despite an injunction barring them from the practice, according to a motion filed Tuesday in San

Francisco Superior Court.

San Francisco originally acted against the landlords, Darren and Valerie Lee, several years ago

when it discovered that they had evicted tenants and then turned a two-unit property into short-term

rentals, court documents show. In May 2015, the couple paid $276,000 in penalties and fees and

agreed to an injunction forbidding them from offering illegal short-term rentals.

But the Lees almost immediately ignored the injunction and in fact made a mockery of it, according to

the new motion filed by City Attorney Dennis Herrera. The couple took "far-reaching, devious" steps to

continue their illegal rentals, engaging friends and relatives as surrogates to list 14 apartments on

Airbnb, the motion said. It seeks to fine the Lees $5.5 million, force tliem to abide by the original

injunction, and add three years to it, making its end date 2023.

https://www .sfgate.com/business/article/Landlords-turned-14-San-Francisco-apartments-into-12878662.ph... 5/3/201 8

Landlords turned 14 SF apartments into illegal Airbnbs, city attorney says - SFGate Page 3 of 6

"This couple broke the law, got caught, pledged to stop, and then turned around and did it again - only

this time with an elaborate ruse to try to hide their tracks," Herrera said in a statement, saying the Lees'

"deceit, fraud and greed is breathtaking."

'l t-,------------------------l The couple engaged in this illicit practice for

at least 11 months after the injunction, the

motion said, though their 14 properties no

longer appear on Airbnb or other sites

catering to tourists. While the couple

j Recommended Video:

campuses

Robots from Starship to carry food on corporate, college

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e current complaint mentions only Airbnb.

lies on many inaccurate facts ."

rancisco has struggled with tourist rentals in

pnvate homes since Airbnb took off in its hometown.

The city now has strict new laws requiring anyone

offering short-term rentals to register, proving they

are a permanent resident. Under a legal settlement,

Airbnb and rival HomeAway/VRBO kicked off

thousands of unregistered rentals this year.

Airbnb said in a statement that it has "zero tolerance

for bad actors" and pointed to its agreement with San

Francisco to remove unregistered hosts.

The Lees' case encapsulates arguments made by

housing advocates: Renting to tourists is so

profitable that landlords are willing to flout the law

to do so, which erodes the city's supply of permanent 1

housing. It also underscores difficulties in catching

scofflaws before the city gained new enforcement

powers. Herrera said the investigation required

"scouring reams of records, exhaustive legal practice, and plenty of shoe-leather detective work" by his

staff and the city's Office of Short-Term Rentals.

https:/ /www.sfgate.com/business/article/Landlords-tumed-14--San-Francisco-apartments-into-12878662.ph... 5/3/2018

Landlords turned 14 SF apartments into illegal Airbnbs, city attorney says - SFGate Page4of6

The Lees' efforts to evade detection, as detailed in the motion, are straight out of the Pink Panther

, playbook. Valerie Lee and her attorney took city inspectors on a tour of eight properties, all arranged to

appear as if a tenant lived there, the motion said.

l

'

SUBSCRIBE NOW

But each apartment had identical staging: "the same Costco food items scattered about, the same

arrangement of dirty breakfast dishes in every· kitchen sink, same personal products in each bathroom,

same damp towels artfully draped over doors as though someone had recently showered, the same

collection of shoes and clothes in closets, and same houseplants in each apartment," the motion said.

The apartments matched photos on Airbnb listings, down to the furniture, light fixtures and appliances.

The Lees submitted faux leases, pretending that they had long-term tenants who were doing the illegal

short-term rentals, although the "tenants" were actually their friends, relatives and employees, the

complaint said. All but one of the surrogate Airbnb accounts were created from the same IP address. I I The units are scattered around the city, including in Pacific Heights, Nob Hill, Leavenworth, the Mission 1i I and North of the Panhandle. ~

Many are swank, renting for around $250 to $500 a night. For instance, one described as an "exquisitely \

renovated home, in prime Pacific Heights" rented for $395 to $595 a night, with a three-night minimum, !, according to Herrera's 2014 complaint.

, Between May 2015 and February 2016, the 14 apartments were booked by Airbnb travelers 533 times for

2,271 nights, at a total rent of $922,812, of which $703,000 went to the Lees and their surrogates. (The

' rest presumably was Airbnb's commission.)

' Before the original injunction was issued, according to the motion, the Lees evicted tenants, including a

disabled person, from two rent-controlled apartments they soon rented to tourists, citing the Ellis Act,

the state law that allows owners who are leaving the rentals business to evict renters.

San Francisco is seeking a hefty penalty to make sure other landlords understand that the city will come

after them.

"Let this send a message loud and clear to those looking to illegally profit off our city's housing crisis:

Don't try it," Herrera said. "We will catch you, and you will pay a steep price. We will make sure that it's

not worth it_;,

https ://www.sfgate.com/business/article/Landlords-tumed-14-San-Francisco-apartments-into-12878662.ph... 5/3/2018

Ohmega Salvage to sell land rather than rent to Youth Spirit Artworks Page I of 5

Item 7.a.(11)

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THE DAILY CALIFORNIAN NEWS Monday, May 14, 2018

News Sports Arts Opinion Biogs Multimedia Weekender Featured AF

ASUC CAMPU S CITY CRIME & COURTS RESEARCH & IDEt1,S STATE UC OBITUARIES ELECTION 20 18 NOTES FROM THE FIELD

CITY SUNDAY, MAY 13, 2018

Ohmega Salvage to sell land rather than rent to Youth Spirit Artworks for tiny house village FR

Avoid Habit! Churc at all i

GET•

IZI Be the firs

http://www.dailycal.org/2018/05/1 3/ohmega-salvage-sell-land-rather-rent-youth-spirit-artworks-tiny-hous. .. 5/14/201 8

Ohmega Salvage to sell land rather than rent to Youth Spirit Artworks

J . . .. ·... ~ - . - :- ' .... HTE SARCl:I

BY YAO HUANG I STAFF

Architectural salvage store Ohmega Salvage has decided to sell its

property at 2403-2407 San Pablo Ave. rather than rent it to Youth

Spirit Artworks, or YSA, for its "tiny house village" project.

YSA is a nonprofit that educates and provides job training to

homeless teens, with house building being a fairly recent addition

to the organization's agenda. The tiny house village was originally

slated to open in fall 2018 and will house 25 homeless youths

once completed.

"(YSA) has a transformative effect on the youth, but you can see

profound positive change, unlike other organizations," said

Berkeley City Councilmember Kriss Worthington.

According to Councilmember Cheryl Davila, Ohmega Salvage's

owner made the decision Wednesday. Ohmega Salvage could not

be reached for comment.

YSA is currently evaluating other sites, according to Aaron Mann,

a member of the YSA "tiny house village" steering committee. He

added that the project could be built in 30 days, but the

organization does not know when a new site will be found.

"Given other properties of other sites being evaluated," Mann

said, "it may have minimal impact of 30 days or longer delay."

Along with providing housing, the project will have some assistant

mentors to run programs on~site - such as case management and

social work - for the residents of the tiny homes.

According to Mann, the cost of each tiny house is about $15,000

worth of materials, including a solar power "suitcase." He added

that YSA recently began an "adopt a tiny house" program to lower

costs - organizations such as churches can donate materials and

volunteers to build the future homes.

L/AST UPDATED 2 HOURS AGO

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'Tiny house village' to house 25 homeless youth by fall 2018

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"Based on the response so far it looks like we might have more organizations than tiny houses!"

Mann said in an email.

Worthington said Councilmember Ben Bartlett, whose district encompasses YSA, sponsored a City

Council item to help "jump-start" YSA's project by accelerating the group through the

"cumbersome" permit process. The permit process typically alerts the new landowner to the city's

requirements and would allow the city to work with YSA in finalizing the plans for the village.

Page 2 of 5

MOST PC

CULTURE This is why

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UC University l

hearing for

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http:/ /www.dailycal.org/2018/05/13/ohmega-salvage-sell-land-rather-rent-youth-spirit-artworks-tiny-hous... 5/14/2018

Ohmega Salvage to sell land rather than rent to Youth Spirit Artworks

Worthington added that the rest of City Council voted unanimously for Bartlett's item April 24.

Mann said the site will impact the city in three ways: It would proactively address the homelessness

crisis by working with "at-risk" youth, it would be a one-of-a-kind example of how private citizens

can cooperate with the city, and it would have positive impacts on the surrounding neighborhood.

"Until there is a home for everyone," said Igor Tregub, chair of the Housing Advisory Commission,

"tiny homes are a safe and cost.:.effective way to help get people back on their feet ."

Contact Yao Huang at [email protected] andfollow him on Twitter at @Yhoneplus.

VIDEO

Every 8 minutes, we respond to a disaster.

; 1 I • j American ~ Red Cross HELP NOW ·

'--------------- --- i[i

I Late Night Laughs: SN L's Mother's Day cold open, annotated ...

Page 3 of 5

http:/ /www.dailycal.org/2018/05/ 13/ohmega-salvage-sell-land-rather-rent-youth-spirit-artworks-tiny-hous... 5/14/2018


Item 8.a.(1 ) .

COMMUNJCATION ACCESS INFORMATION: II This meeting is being held in a wheelchair-accessible location. a-""'· 5

To request disability-related accornmodation(s) to participate in the meeting, including auxiliary aids or services, please contact Aimee Mueller at 981-4932 or 981-6903 (TDD) at least three business days before the meeting date.


RENT STABILIZATION BOARD

BUDGET & PERSONNEL COMMITTEE MEETING

1. Roll Call

2. Approval of Agenda

3. Public Comment

Monday, April 30, 2018 - 5:30 p.m.

2001 Center Street, Law Library, 2nd Floor

AGENDA

4. Fiscal Year (FY) 2018 3/4 Year Budget Update

5. Discussion of the FY 2019 Budget Process

a. Discussion and Recommendation on Adopting the FY 2019 Registration Fee

b. Discussion and Recommendation on Increasing the Amount Allocated for Pass-Through Reimbursements

6. Future Agenda Items and Meeting Times

7. Adjournment

STAFF CONTACT: Jay Kelekian, Executive Director (510) 981-7368

COMMITTEE: James Chang, John Selawsky, Leah Simon-Weisberg, Igor Tregub (Chair)

Please call (510) 981-4927 if you cannot access the 2nd floor Law Library


Item 8.a.(2) Ill COMMUNICATION ACCESS INFORMATION: ~

This meeting is being held in a wheelchair-accessible location. ~ To request disability-related accommodation(s) to participate in the meeting, including auxiliary aids or services, please contact Aimee Mueller at 981-4932 or 981-6903 (TDD) at least three business days before the meeting date.



BUDGET & PERSONNEL COMMITTEE MEETING

Monday, May 21, 2018 - 5:30 p.m.


Teleconference location: 255 E. Flamingo Road, Las Vegas, NV 89169

This meeting will be conducted in accordance with the Brown Act, CA Government Code Section 54953(b )(2), and Teleconferencing. Any member of the public may attend this meeting at either location. Questions regarding this matter may be addressed to Jay Kelekian, Executive Director and Secretary to the Board, at (510) 981-7368.

AGENDA

1. Roll Call

2. Approval of Agenda

3. Public Comment

4. Update and Possible Action on Changes to the Staffing Model

5. Future Agenda Items and Meeting Times

CLOSED SESSION -Pursuant to California Government Code§ 54957(b)

EMPLOYMENT CONTRACT NEGOTIATIONS Title: Executive Director

6. Adjournment

STAFF CONTACT: Jay Kelekian, Executive Director (510) 981-7368

COMMITTEE: James Chang, John Selawsky, Leah Simon-Weisberg, Igor Tregub (Chair)

Please call (510) 981-4927 if you cannot access the 2nd floor Law Library


Item 8.b.(1) I'll COMMUNICATION ACCESS INFORMATION: (tiii This meeting is being held in a wheelchair-accessible location. 5!.;,.,..~

To request disability-related accommodation(s) to participate in the meeting, including auxiliary aids or services, please contact Aimee Mueller at 981-4932 or 981-6903 (TDD) at least three business days be/ ore the meeting date.



EVICTION/ SECTION 8 / FORECLOSURE COMMITTEE MEETING

Friday, May 4, 2018- 5:00 p.m.

2001 Center Street, Law Library 2nd Floor

AGENDA

1. Roll call

2. Approval of the Agenda

3. Approval of Minutes of the April 11, 2018 meeting

4. Public Comment

5. Discussion and possible action regarding Measure AA Owner Move-in Report (To Be Distributed)

6. Discussion and possible action on contract providers providing additional data

7. Discussion and possible action on scope of work

8. Future Agenda Items

9. Confirm next meeting date (Commissioners, please bring calendars to meeting)

10. Adjournment

STAFF CONTACT: Matthew Siegel: (510) 981-4903

COMMITTEE: Maria Poblet (Chair), James Chang, John Selawsky, Leah Simon-Weisberg


Item 8.c.(1) . COMMUNICATION ACCESS INFORMATION : This meeting is being held in a wheelchair-accessible location.

To request disability-related accommodation(s) to participate in the meeting,

including auxiliary aids or services, please contact Aimee Mueller at 981 -4932

or 981 -6903 (TDD) at least three business days before the meeting date.



HABITABLE AND SUSTAINABLE HOUSING COMMITTEE MEETING

Thursday, May 17, 2018

6:00 p.m.


AGENDA

1. Roll call

2. Approval of the agenda

3. Approval of the December 14, 201 7 Habitable & Sustainable Housing Committee meeting

minutes

4. Public comment

5. Election of Committee Chair

6. Discussion of potential RSB external disaster recovery plan for rental housing

7. Discussion and possible action on a green building standards for existing residential units and

buildings

8. Discussion and possible action on issues related to EV charging stations

9. Update and discussion on changes to B.M.C. Section 19.50 (Elevator Ordinance)

10. Discussion and possible action on Committee's 2018 scope of work & future agenda items

11. Scheduling of next meeting

12. Adjournment

COMMITTEE: Paola Laverde (Chair), Alejandro Soto-Vigil, Jesse Townley, Igor Tregub

STAFF CONTACT: Lief Bursell: (510) 981-4919

Please call (510) 981-4927 during meeting if you cannot access the 2nd floor Law Libr ary

Item 8.d.(1)

11 COMMUNICATION ACCESS INFORMATION: - = This meeting is being held in a wheelchair-accessible location. ~- ·


To request disability-related accommodation(s) to participate in the meeting, including auxiliary aids or services, please contact Aimee Mueller at 981-4932 or 981-6903 (TDD) at least three business days before the meeting date.


RENT ·STABILIZATION BOARD

IRA/ AGA / REGISTRATION COMMITTEE MEETING

Thursday, May 3, 2018- 5:30 p.m.


AGENDA

1. Roll call

2. Approval of the agenda

3. Approval of minutes from the February 1, 2018 meeting (attached to agenda)

4. Public Comment

5. Discussion and possible action regarding Election of Committee Chair

6. Discussion and possible action regarding proposed Regulation to set forth a hearing process for determinations of Harassment

7. Discussion and possible action regarding amendments to Rent Board Regulations in light of Mayor Arregufn' s 4x4 Committee proposals to amend Tenant Protection Ordinance and Tenant Screening Fee Ordinance

8. Discussion and possible action regarding referring issues to 4 x 4 Committee for consideration like coordination with Planning Department surrounding demolitions and new construction issues

9. Discussion and possible action regarding future agenda items

10. Confirm next meeting date

11. Adjournment

STAFF CONTACTS: Matt Brown, Staff Attorney (510) 981-4930

COMMITTEE: Maria Poblet, Leah Simon-Weisberg (Chair), Jesse Townley, Igor Tregub

For access to the Law Library for this meeting, please dial (510) 98.1.4927

Item 8.e.(1)g COMMUNICATION ACCESS INFORMATION:


This meeting is being held in a wheelchair-accessible location. ...._. · To request disability-related accommodation(s) to participate in the meeting, including auxiliary aids or services, please contact Aimee Mueller at 981-4932 or 981-6903 (TDD) at least three business days before the meeting date.


RENT STABILIZATION BOARD OUTREACH COMMITTEE MEETING

Monday, May 14, 2018 5:45 p.m.


AGENDA

1. Roll call

2. Approval of agenda

3. Approval of the February 5, 2018 and March 5, 2018 meeting minutes

4. Public Comment

5. Staff Report on Recent Outreach Efforts

a. Report on workshops/seminars/events

Recent: • 4 workshops specifically targeting Cal students • South Senior Center Counseling • April Tenants Workshop • Long Term Tenant Workshop • Realtor Workshop • Landlord 101 • Tenant Move-in/Move-out; • Eviction 101 Workshop; • Friends of Adeline Housing Forum

Upcoming • May 16th 5:15pm@ Rent Board Law Library "Landlord 101" Seminar • May 22nd 6pm @ Berkeley Central Library "Tenancy Turnover: When You Can

Raise Rent" • June 5th 6pm @Berkeley Central Library "Long Term Tenants Workshop"

b. Community Events : June 3rd "SUNDAY STREETS," and June 17th "Juneteenth"

c. ALRC Mailing: Continued calls, updating database

d. April Tip of the Month

Outreach Committee agenda for May 14, 2018 Page 2

6. New Business - Items for Discussion or Action

7.

a. Viewing "Invisible Students: Homeless at UC Berkeley" (on your own; available on

YouTube):

https://www.bing.com/videos/search ?q=in visible+students+homeless+at +uc+berkele

y&qpvt=invisible+students+homeless+at+uc+berkeley&view=detail&mid=D625467

EE9A346B7416ED625467EE9A346B7416E&&FORM=VRDGAR

b. Limit Rent Increases on Long Term Seniors

c. Data Gathering at the Rent Board

Ongoing Discussion of Items on the Outreach Plan

a. Social Media Marketing (Facebook Advertising: Results) b. Translation of Outreach Materials c. Outreach Work Plan 2018 (attached)

8. Commissioner Updates

9. Items for future discussion and confirmation of next meeting

10. Adjournment

STAFF CONTACT: Chanee Franklin (510) 981-4921 Moni T. Law (510) 981-4906

COMMITTEE: Chair James Chang, Paola Laverde; Christina Murphy

4x4 Committee on Housing City Council and Rent Board

COMMUNICATION ACCESS INFORMATION: Item 8.f.(1)

This meeting is being held in a wheelchair-accessible location . • To request a meeting agenda in large print, Braille, or on cassette, or to request a sign language interpreter for the meeting, call 981-6900 (voice) or 981 -6903 (TDD) at least five (5) working days notice will ensure availability.

AGENDA

4 X 4 JOINT COMMITTEE ON HOUSING CITY COUNCIURENT STABILIZATION BOARD

Monday, April 30, 2018 - 11:00 a.m.

City Hall, 2180 Milvia Street, Redwood Room (6th Floor)

1. Roll Call

2. Public Comment

3. Approval of Minutes for the Meeting of April 2, 2018

4. Discussion on potential changes to BMC 13.76 Rent Stabilization Ordinance. BMC 13. 78 Tenant Screening Fees and 13. 79 Tenant Protection Ordinance (1 hour)

5. Discussion and possible action on changing the 10 year non-tenancy period in the Short-Term Rental Ordinance to a rolling period . (30 mins)

6. Discussion of possible future agenda items and setting a regular meeting schedule (5-10 mins)

7. Adjournment

COMMITTEE MEMBERS: Mayor Jesse Arreguin City Council Member Cheryl Davila City Council Member Kate Harrison City Council Member Linda Maio

Rent Board Chairperson John Selawsky Rent Board Vice-Chairperson Paola Laverde Rent Board Commissioner Christina Murphy Rent Board Commissioner Igor Tregub

NOTE: Attendees at public meetings are reminded that other attendees may be sensitive to various odors, whether natural or manufactured, in products and materials. Please help the City respect these needs.

2125 Mi lvia Street, Berkeley, CA 94704 Tel: 510. 981.4919 TDD: 510.981.6903 Fax: 510. 9.81.4940 E-mail : [email protected] - http://www.cityofberkeley.info/renU

4x4 Committee on Housing City Council and Rent Board

Minutes To Be Approved

4 X 4 JOINT COMMITTEE ON HOUSING CITY COUNCIURENT STABILIZATION BOARD

Monday, April 2, 2018-11:00 a.m.

City Hall, 2180 Milvia Street, Cyprus Room (1 st Floor)

1. Roll Call: Mayor Arreguin called the meeting to order at 11 :07 a.m. Present: Mayor Jesse Arreguin, CM Cheryl Davila, CM Kate Harrison, RB ViceChair Paola Laverde, CM Linda Maio (arrived at 11 :14 a.m.), RBC Christina Murphy RB Chair John Selawsky, RBC Igor Tregub. Staff present: Steven Buckley, Timothy Burroughs, Brenden Darrow, Stefan Elgstrand, Jen Fabish, Jovan Grogan, Jay Kelekian, Nick Mcllroy, Alex Roshal, Matthew Siegel.

2. Public Comment: Four speakers.

3. Approval of Minutes for the Meeting of December 12, 2017: M/S/C Selawsky/Tregub 7-0-0-1. Absent: Maio.

4. Update on status of proposed reorganization of the Rental Housing Safety Program: Planning Director Timothy Burroughs informed the committee that a new program manager will be hired to, amongst other things, identify and improve efficiencies, and review the fee schedule and Schedule A Program with the goal of creating a proactive inspection cycle. The Department is working on setting the salary range for the new position, which must be approved by the Personnel Board and Council before HR can create a list to begin the hiring process. The position should be filled before the end of the _calendar year. Ideas from committee members to make small improvements to the RHSP within the existing framework include deputizing building inspectors to do housing inspections so that their focus can shift with need, enabling digital submission of Schedule A, implementing a tiered fee schedule, and increasing re-inspection fees. RBC Tregub also suggested integrating enforcement of other ordinances into future cyclical RHSP inspections.

5. Update on Short-Term Rental Ordinance implementation & enforcement: Deputy City Manager Jovan Grogan gave an update on the number of applications received; the discrepancy between this number and the number of known shortterm rentals in the City; enforcement priorities, methods, and outcomes; and the amount of Transient Occupancy Tax the City has received to date. The committee also discussed efforts to circumvent the Ordinance and ways to address those tactics, how the Rent Board and City can collaborate to hone in on multi-unit

2125 Milvia Street, Berkeley, CA 94704 Tel: 510. 981.4919 TDD: 510.981.6903 Fax: 510. 981.4940 E-mail : [email protected] - http://www.cityofberkeley.info/rent/

18 April 2 4x4 Committee Meeting Minutes

properties being illegally used as short-term rentals, the possibility of a tiered fine schedule, and the merits of seeking to add platform liability back into the contract with Airbnb and/or negotiating for more access to data.

6. Inclusion of structures built before 19851 in definition of accessory buildings; alteration of 10 year period of non-tenancy to a rolling period: CM Harrison provided an overview of the issues, and the committee discussed the need to formulate a path to legalize these pre-1985 structures that maintains tenant protections. The committee also discussed the benefits and challenges of amending the Short-term Rentals Ordinance to change the ten-year period of non-tenancy to a rolling period. The committee agreed to continue discussing these issues at a future meeting.

7. Discussion on potential changes to BMC 13. 76 Rent Stabilization Ordinance. BMC 13.78 Tenant Screening Fees and 13.79 Tenant Protection Ordinance: Mayor Arreguin briefly discussed the issues prompting the proposed amendments to 13.78 Tenant Screening Fees, and 13.70 Tenant Protection Ordinance. RB Executive Director Jay Kelekian briefly outlined areas where proposed amendments to 13. 76 are being considered, including (1) the definition of new construction; (2) a partial registration fee for new construction units; (3) charging a fee for certifying exemptions for units that are not available for rent; and (4) implementing an incentive for owners to provide vacancy information as required by the Ordinance. There are also a variety of proposals around amending provisions related to "golden duplexes." The committee agreed to discuss these issues in depth at a future meeting.

8. Discussion of possible future agenda items and setting a regular meeting schedule: The committee set the next meeting for April 30, 2018 at 11 :00 a.m. to focus on proposals to address issues arising from the "golden duplex" exemption, and to possibly discuss the issues raised around pre-1985 secondary structures.

9. Adjournment: Meeting adjourned at 1 :04 p.m. M/S/C Selawsky/Laverde 8-0-0-0.

COMMITTEE MEMBERS: Mayor Jesse Arreguin City Council Member Cheryl Davila City Council Member Kate Harrison City Council Member Linda Maio

Rent Board Chairperson John Selawsky Rent Board Vice-Chairperson Paola Laverde Rent Board Commissioner Christina Murphy Rent Board Commissioner Igor Tregub

1 The Agenda mistakenly specified this date as 1980. The typographical error has been amended here to reflect the correct date of 1985.


MEMORANDUM

DATE: April 30, 2018

TO: Honorable Members of the 4 x 4 Committee

FROM: 9 ·71ay Kelekian, Executive Director

SUBJECT: Suggested Amendments to the Rent Ordinance -- For Consideration

Reason Action is Needed

Berkeley voters passed Measure D in June of 1980 which established the current Rent Ordinance (the Ordinance) as codified in Berkeley Municipal Code (B.M.C.) Chapter 13.76.1 Because it was passed by voter initiative, the Ordinance may only be amended by voters. Berkeley City Council has, periodically, placed measures on the general ballot for the voters to decide when the Board recommends modifications. Most recently, Measure AA amended the ordinance in 2016 to increase relocation benefits, conform exemption criteria to state law, and strengthen protections for elderly tenants, disabled tenants, and tenant families with children.

The possibility of a significant change in state law may necessitate certain changes to the Ordinance. In addition, community members have raised concerns regarding the exemption of Accessory Dwelling Units and owner-occupied duplexes that were owner-occupied in 1979 ("golden duplexes").

This memo will suggest the sections of the Ordinance to be amended but may not always identify the specific proposed language to be used. Traditionally, proposed changes to the Ordinance are reviewed and first discussed at the 4 x 4 Committee. The same proposals will be presented to the Rent Stabilization Board on May 7, 2018. If there is interest in these concepts, at the Board's request, draft language will developed by staff and reviewed/recommended by the Board and 4x4 Committee then submitted to Council for consideration of being placed on the November ballot. The goal of the April 30 and May 7th meetings is to begin that cop.versation and process.

1 The Ordinance was subsequently amended substantially by Measure G m·t982.

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Rent Boai·d Starrs Suggested Rent Ordinance Amendments Apl'il 30, 2018 Page 2

Proposed Amendments to Account for the Potential Repeal of Costa-Hawkins

Base Rent Ceilings: B.M.C. section 13. 76.100 (Establishment of Base Rent Ceiling and Posting)

Background - As originally passed by the voters in 1980, the Berkeley Rent Ordinance established a system of vacancy control. The most fundamental component of vacancy control is the establishment of a Base Rent Ceiling, which can then be adjusted on an annual basis. The Base Rent Ceiling for all tenancies was originally calculated using the lawful rent in effect on May 31, 1980. See B.M.C. section 13.76.100 (Establishment of Base Rent Ceiling and Posting).

The Costa-Hawkins Rental Housing Act became effective on January 1, 1996,2 and- among other things - prohibited vacancy control and mandated vacancy decontrol. Under CostaHawkins, all initial rents established after January 1, 1999, can be set at any amount; the rent for the previous tenancy has no bearing on the amount the landlord is entitled to charge a new tenancy. This change in state law superseded the Base Rent Ceiling provisions of the Ordinance, rendering them invalid and devoid of legal effect.

Even though Costa-Hawkins fundamentally shifted the way Berkeley was able to control rents, the Berkeley voters never amended the Ordinance to account for this change. Instead, the Board enacted Regulation 1013 which authorized the Board to implement the form of rent control mandated by Costa-Hawkins. As of 2018, approximately 11 - 12% of the rent-controlled units in Berkeley have tenancies that pre-date January 1, 1999. All other units have experienced at least one vacancy rent adjustment authorized by Costa-Hawkins, and many units have turned over multiple times and thus been subject to multiple vacancy rent adjustments. ·

A statewide ballot initiative to repeal Costa-Hawkins appears likely to qualify for the general election on November 6, 2018. If Costa-Hawkins is repealed, Berkeley's original vacancy control system will resume and landlords will be prohibited from raising rents on new tenants. However, the legal effect of the repeal of Costa-Hawkins (with respect to existing rents established after January 1, 1996) is not plainly set forth in the Ordinance, because the superseded language tying rent ceilings to 1980 rents was never removed.

If Costa-Hawkins is repealed, Regulation 1013 will need to be immediately suspended and repealed as it will refer to a statute that no longer exists. Absent a provision that clearly articulates the effect of Costa-Hawkins vacancy rent increases upon base rent ceilings, voters may be confused about the effect of Costa-Hawkins repeal, and the outdated wording of the Ordinance will generate confusion: To insulate the Ordinance from potential legal challenges, Board staff recommends amending B.M.C. 13.76.100 to make clear that all Costa-Hawkins rent increases shall remain in effect, and Base Rent Ceilings shall be adjusted accordingly. Rent ceilings that were established prior to 1999 would remain in effect.

2 Costa-Hawkins had a phase-in period from January I, 1996-January I, 1999. The particulars of this phase-in do not merit discussion in this memorandwn, but it is important to note thatall initial rents established after January I, 1999, were permitted a market rate vacancy rent adjustment.

Rent Board Staffs Suggested Rent Ordinance Amendments April 30, 2018 Page 3

Proposed Action - Insert the following paragraph or similar language into B.M.C. 13. 76.100 -"For such rental units where the landlord established a new initial rent under the Costa-Hawkins Rental Housing Act, the Base Rent Ceiling shall be the most recent lawfully established periodic rent. For such rental units that were exempt from rent stabilization pursuant to the CostaHawkins Rental Housing Act, the Base Rent Ceiling shall be the most recent lawfully established periodic rent."

Exemption of New Construction: B.M.C. section 13. 76.050 (Applicability)

Background - Costa-Hawkins currently prohibits rent control jurisdictions from controlling any units that have received a Ce1tificate of Occupancy after February 1, 1995, and any units that were already exempt pursuant to a local exemption for new construction before that date. This had the effect of preventing local jurisdictions from updating their definition of new construction to account for the passage of time. If Costa-Hawkins is repealed, local rent boards will have the opportunity to update their new construction exemptions.

Currently, the Berkeley Rent Ordinance exempts units that have received a Certificate of Occupancy after June 30, 1980 (B.M.C. section 13.76.0501.)-the Berkeley voters adopted this standard in November of2016 to more closely align the Ordinance with the Costa-Hawkins definition of new construction which requires a Certificate of Occupancy.

In the event of Costa-Hawkins repeal, the new construction exemption could be amended to create a rolling exemption that takes into account the actual age of the building. It is also important to remember that not all legally-constructed new units receive a Certificate of Occupancy, and a new Certificate of Occupancy can be issued to a building that is not newly constmcted. If Costa-Hawkins is repealed, the voters will have the opportunity to redefine the "new" component of new construction in a way that avoids the pitfalls of Costa-Hawkins' Certificate of Occupancy standard. ·

Berkeley has approved the constmction of many newly constructed rental units in recent years. These newly constructed rental housing units have no rent controls or registration. Board staff proposes that B.M.C. section 13.76.0501. be amended to allow for a rolling exemption of 12 years for all newly constructed units. This standard would be consistent with Measure Ul, adopted by Berkeley voters in November of 2016.

Proposed Action - Revise the New Construction exemption to provide that units shall be exempt for a 12-year period immediately following issuance of a final inspection approval by the City or equivalent document establishing the completion of construction. Thereafter, these units shall not be considered new construction and will be covered by rent control and registration.

Rent Board Starrs Suggested Rent Ordinance Amendments ApriR 30, 2018 Page 4

Explore a Separate Ballot Measure Enacting a Reduced Program Fee for New Construction and Other Partially Exempt Units

The Board sometimes fields inquiries regarding rental units that are partially exempt from the Ordinance. Generally any assistance provided to tenants/owners of partially exempt units is limited, as such units are exempt from registration requirements but subject to eviction protections and security deposit interest. The program fee is only charged to owners of units that are subject to the registration requirements of the Ordinance.

Proposal: Some landlords have raised concerns that partially exempt units are not charged any fee. This could be remedied by a ballot initiative establishing a reduced fee for partially exempt units; if the landlord community is interested we can explore this idea.

Proposed Amendments to Deal with Accessory Dwelling Units and Golden Duplexes

Exemptio11 of Accessory Dwelling Units: B.M.C. section 13. 76.050 (Applicability)

In January 2017, state law was amended to encourage the construction of Accessory Dwelling Units. The amendments loosened parking requirements and authorized the construction of "junior" Accessory Dwelling Units within the envelope of a single-family home without need· to apply for a use permit. The result has been a massive increase in interest among property owners in these types of units, as demonstrated by the spike in applications to build ADUs in all of California's major cities.3 This, combined with renewed interest in the constmction of various other types of ADUs (backyard cottages, garage conversions, house-lifting, additions, attic conversions) has resulted in confusion regarding the applicability of rent control to AD Us in general.

Existing law provides no special treatment for ADUs, and as a result the eligibility of a particular · unit for exemption is highly case-specific. Rent Board staff believe that the majority of ADUs will be exempt because owners will be able to claim the "golden duplex" exemption for owneroccupied duplexes, and because any detached unit will generally receive a new Certificate of Occupancy. However, any given applicant may have questions that City staff are unable to answer, and it is in the interest of the entire city to encourage the construction of additional housing units whenever possible.

One of the conditions of approval of an application to create an ADU is owner-occupancy of the property. Therefore an exemption for all owner-occupied ADUs would have the effect of providing clarity to all applicants interested in adding ADUs to the housing stock, while avoiding abuses by any landlords seeking to evade rent controls (by subdividing a portion of a rented house into an ADU, for example). Existing tenants can retain existing protections through a grandfather clause.

3 Garcia; David; "ADU Update: Eady Lessons and Impacts of California's State and Local Policy Changes", December 2017; UC Berkeley Temer Center, available at: http:/ /temercenter.berkeley.edu/uploads/ ADU_ Update _Brief_ December_ 2017 _.pdf

Reut Board Staff's Suggested Rent Ordinance Amendments April 30, 2018 Pages

Proposed Action - Enact an exemption for ADUs where the owner ofrecord occupies the property as his, her or their principal place of residence. This exemption shall not apply to tenancies established prior to the effective date of the amendment.

"Golden Duplex" Exemption: B.M.C. section 13. 76.050 (Applicability)

Some owner-occupied duplexes in Berkeley are exempt from reht control and eviction protection, so long as they were occupied by the owner on December 31, 1979 and are currently occupied by the owner. Concerns about golden duplexes have been raised relating to speculation driven displacement; a number of cases have arisen in which a long-term tenant is forced to abruptly move when facjng a dramatic rent increase upon the sale of the property. These concerns can be addressed by imposing a residency requirement before the exemption takes effect, or by phasing out the exemption for all new purchasers.

In addition, concerns raised in public meetings regarding ADUs being exempt under this provision frequently centered on the "arbitrary" nature of the exemption's 1979 occupancy requirement, and its all-or-nothing structure.Testimony was offered by potential landlords who were concerned not with the ability to raise the rent on their tenants but with the potential inability to evict a troublesome tenant without good ca'.use.

Proposed Action - Staff recommends that a residency requirement of 36 months prior to exemption be enacted for all eligible duplexes sold after November 7, 2018. Tenants would be protected by re~t control and eviction protections until the residency requirement has been met.

Additional Recommendation -Staff also recommends that the Board and Council begin considering updating the exemption itself. The Committee may choose to explore how best to balance several goals, including: providing golden duplex tenants with greater stability and security,.allowing bona fide owner-occupants to retain flexibility in determining who they live with and greater, but not unlimited, flexibility in raising the rent above the standard rent control limits, and potentially achieving more consistent applicability across all owner-occupied duplexes. Collectively, we may determine that given the uncertainty of the scope of changes that November's election may bring, it may be best to wait until another election to resolve these questions. However, given the recurring concerns raised by both sides, we may want to begin that discussion sooner rather than later. In addition to the proposed 36 month residency · requirement noted above, some possible additional options for consideration include:

1. For all Golden Duplexes sold after 11/7/18 • Upon the completion of the residency requirement, allow annual rent

. increases that are not unlimited but are larger than the AGA for fully controlled rental units.

• Allow banking of increases but limit rent increases to no more than 10% in any 12 month period.

• Allow owners to evict without a "good cause" but if a "no-fault" eviction is used the tenant is entitled to relocation expenses and the rent remains the same for the next tenant.

Rent Board Staff's Suggested Rent 01·dinance Amendments April 30, 2018 Page 6

2. For all Golden Duplexes, regardless of date of acquisition • Apply rules similar to those described above but application would be

extended to all golden duplexes.

3. For all owner-occupied duplexes (regardless of occupancy status in 1979) • Apply rules similar to those described above. • Exjsting tenants would be protected under current rent control and good cause

rules. • Possibly have some residency requirement for cases of new-ownership .

. 4. Phase out Golden Duplex exemption at the time of post 11/7/18 sale · • All existing golden duplex exemptions would remain but the exemption would

completely expire upon transfer after 11/7 /18.

Conclusion

We are seeking initial 4x4 discussion, comment and feedback on these potential changes to ~e Rent Stabilization Ordinance so that a formal proposal (including draft language) can be presented to the Rent Board for consideration. Ideally there will be a recommendation in May or early June. The Board will make the final recommendation to the City Council suggesting which items be placed on the ballot along with specific proposed language.

Original language

23C.22.020 Applicability

D. Short-Term Rentals are allowed in Accessory Buildings and in existing Accessory Dwelling

Units (ADUs) unless such ADUs are or have within the last 10 (ten) years. preceding the

effective date of this ordinance been used for long term rentals, as defined by the requirements

of the Rent Stabilization and Good Cause for Eviction Ordinance. Short-Term Rentals shall not

be allowed in Accessory Dwelling Units permitted after the date of this ordinance. (Ord. 7521-

NS § 1 (part), 2017)

Proposed changes

D. Short-Term Rentals are allowed in Accessory Buildings and in existing Accessory Dwelling

Units (ADUs) unless such ADUs are or have within the last 10 (ten) years preceding their

proposed use as a short term rentalthe-effective date of ttlfS ordinanee been used for long term

rentals, as defined by the requirements of the Rent Stabilization and Good Cause for Eviction

Ordinance. Short-Term Rentals shall not be allowed in Accessory Dwelling Units permitted after

the date of this ordinance. (Ord. 7521-NS § 1 (part), 2017)

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