[Ord. #2018-02]
Section 5-25 shall be known as Rent Review Program.
[Ord. #2018-02]
The City Council makes the following findings in support of approving this section:
a.
The City has a substantial governmental interest in continuing and increasing certainty, stability, and fairness within the residential rental market.
b.
The amendments are neither overbroad nor vague, and are consistent with the City's effort to protect the public health, safety and general welfare.
[Ord. #2018-02]
Means the amount of rent required to be paid by the tenant to the landlord for occupancy of the residential property in the month immediately preceding the effective date of the rent increase. Base rent excludes pass-through costs paid separately to the landlord for utilities, water, garbage or any other similar fee or charge associated with a residential property which is outside the control of the landlord.
Means the City of Albany.
Means the City Manager of the City of Albany, or his/her designated representative.
Means the City Council of the City of Albany.
Means the Director of the Community Development Department of the City of Albany, or his/her designated representative.
Means any person, partnership, corporation, or other business entity offering for rent or lease any residential property in the City for a term of one month or longer. Landlord shall include any agent or representative of the landlord, provided that such agent or representative has full authority to answer for the landlord and enter into binding agreements on the landlord's behalf.
Means a person who participates in the Rent Review Program of this section or his/her agent or representative.
Means a fixed periodic compensation paid by a tenant at fixed intervals to a landlord for the possession and use of residential property as defined by the rental agreement between the landlord and tenant.
Means any upward adjustment of the rent from the base rent amount.
Means the officer designated by the Director to conduct mediation pursuant to subsection 5-25.4e.
Means any housing unit offered for rent or lease in the City. Residential property shall exclude any housing unit that is subject to a recorded regulatory agreement that requires that the housing unit be rented to a tenant at specified income levels as defined by the regulatory agreement. Additionally, residential property shall exclude any housing unit which is outside the scope of the City's regulatory authority, including but not limited to any housing unit owned by the University of California and utilized for student or faculty housing, as well as any housing unit owned by the federal government.
Means any person having the legal responsibility for the payment of rent for residential property in the City. Tenant shall include the agent or representative of the tenant, provided that such agent or representative has full authority to answer for the tenant and enter into binding agreements on the tenant's behalf.
[Ord. #2018-02]
a.
Notice of Availability of Rent Review Requirement. In addition to the notice of rent increase required by Civil Code Section 827(b), the landlord shall also provide notice of the availability of the rent review procedure established by this section at the time a rental agreement is entered into and at the time the landlord provides notice of any rent increase exceeding five (5%) percent. The notice of availability of rent review required by subsection 5-25.3.c shall be provided by the landlord in the three predominant languages spoken in the City. The City Manager or his/her designee shall determine the predominant languages spoken in the City and shall ensure that copies of the notice of availability of rent review set forth in subsection 5-25.3.c are made available to landlords by the City in those three languages. Any rent increase accomplished in violation of this section shall be void, and no landlord may take any action to enforce such an invalid rent increase. Any rent increase in violation of this section shall operate as a complete defense to an unlawful detainer action based on failure to pay any invalid rent increase. Any tenant required to pay an invalid rent increase may recover all invalid rent increase amounts actually paid by the tenant. If a landlord fails to properly notice a tenant pursuant to this section, the landlord must re-notice the tenant in accordance with this section prior to demanding or accepting any increase in rent.
b.
Contents of Notice. All notices of the availability of rent review shall be in writing, shall provide the name, address and phone number of the landlord and shall be personally delivered to the tenant, mailed to the tenant at the address of the tenant's residential property, or transmitted by email. Service by mail shall be presumed complete within five (5) calendar days of mailing. This presumption may be rebutted by the tenant.
c.
Text of Notice. In addition to all other information provided in the notice of the availability of rent review required by this section, each such notice shall substantively state:
NOTICE: Under Civil Code Section 827(b) a landlord must provide a tenant with thirty (30) days' notice prior to a rent increase of ten (10%) percent or less and sixty (60) days' notice of a rent increase of greater than ten (10%) percent. Under Section 5-25 of the City of Albany Municipal Code, a landlord must, at the time a rental agreement is entered into and at the time the landlord provides notice of any rent increase exceeding five (5%) percent, provide the City's notice of the availability of rent review before demanding or accepting any increase in rent. You are encouraged to contact the owner or manager of your rental unit to discuss the rent increase. However, if you have received notice of a rent increase that:
1.
Will increase your rent more than five (5%) percent above the base rent you paid last month; or
2.
Follows one or more prior rent increases within the past year where the combined rent increases are more than five (5%) percent above the base rent paid prior to the first rent increase over the past year, you may request rent review, which includes conciliation and mediation, of your rent increase. Such a request must be submitted in writing to the Director within fifteen (15) calendar days of your receiving notice of the rent increase or post marked within fifteen (15) calendar days of receipt if mailed. You must submit a copy of the notice of rent increase at the same time you submit the rent review request. To request review of your rent increase, please contact the Community Development Department of the City of Albany, 1000 San Pablo Avenue, Albany, California 94706. For more information regarding the rent review procedure, please visit www.albanyca.org. Under Civil Code Section 1942.5 and the Albany Municipal Code, it is illegal for a landlord to retaliate against a tenant for lawfully and peaceably exercising his or her legal rights.
[Ord. #2018-02]
a.
Request for Rent Review. A tenant may seek rent review when the proposed rent increase:
1.
Raises the rent to an amount more than five (5%) percent above the base rent; or
2.
Follows a prior rent increase or rent increases within the previous twelve-month period where the combined rent increases are more than five (5%) percent above the base rent paid prior to the first rent increase of the twelve-month period. The tenant seeking rent review must submit the request in writing to the Director and the request must be received by the Director, or post marked (if submitted by mail), within fifteen (15) calendar days of the tenant's receipt of the notice of rent increase. The request must include a copy of the landlord's notice of rent increase.
b.
Conciliation and Mediation. The rent review shall consist of conciliation pursuant to subsection 5-25.4d and, if required, mediation pursuant to subsection 5-25.4e. After determining that a proposed rent increase meets the criteria for initiation of rent review set forth in subsection 5-25.4a above, the Director shall attempt to contact the landlord to initiate conciliation procedures pursuant to subsection 5-25.4d,1.
c.
Impact on Rent Increase. A request for rent review shall not delay the effective date of a rent increase. If appropriate, the parties may enter into a mutual private agreement to delay the effective date of a rent increase or reach any other agreement to effectively reimburse rent increases paid by the tenant.
d.
Conciliation.
1.
Duration of Conciliation. After the Director contacts the landlord pursuant to subsection 5-25.4b, the Director shall provide the landlord with a copy of the tenant's rent review request form and the landlord shall respond to acknowledge the rent review request either orally or in writing within fifteen (15) calendar days. Failure of the landlord to respond to the Director within fifteen (15) calendar days shall void the rent increase. The Director shall attempt conciliation, which may include peer-to-peer counseling, of the rent increase for a period not to exceed ten (10) business days following acknowledgement of the rent review request by the landlord.
2.
Participation. The landlord and tenant shall participate in conciliation and shall provide relevant information, exchange proposals, reasonably consider proposals by opposite parties and engage in discussion(s) regarding the rent increase and issues related to the rent increase. One or more tenants affected by a common rent increase may simultaneously participate in the same conciliation proceeding with consent of the landlord.
3.
Failure to participate. Failure of the tenant to participate in conciliation of the rent increase at issue shall bar the tenant from seeking mediation pursuant to subsection 5-25.4e and shall bar the tenant from seeking any further remedies under this section for such rent increase. Failure of the landlord to participate in conciliation shall void the rent increase. Any rent increase in violation of this section shall operate as a complete defense to an unlawful detainer action based on failure to pay any invalid rent increase.
4.
Agreement During Conciliation. If the parties agree to a resolution during conciliation, they may formalize the agreement in a standard form signed by both parties. The City shall not be a party to such an agreement, nor shall the City assume any responsibility for enforcement of its terms.
5.
Failure to Resolve. If the parties do not resolve the rent dispute during conciliation, the Director shall inform the parties that the conciliation process is concluded and the tenant shall be entitled to seek mediation, pursuant to subsection 5-25.4e., within ten (10) calendar days. Failure of the tenant to seek mediation shall bar the tenant from pursuing any further remedies under this section for the rent increase at issue.
e.
Mediation.
1.
Notice and Date. Upon request for mediation, the mediation shall be scheduled and held before the Rent Review Officer within sixty (60) calendar days of the Director's receipt of the rent review request, or as soon thereafter as the mediation may be scheduled.
2.
Factors. The Rent Review Officer will afford the landlord and the tenant an opportunity to explain their respective positions at the mediation of a rent dispute. After hearing from both parties, and taking into consideration such factors as the hardship to the tenant, the frequency and amount of prior rent increases, the landlord's costs associated with owning and maintaining the property, the landlord's interest in earning a reasonable rate of return on investment, the fair market rental value of the subject residential property, and any other factors that may assist the Rent Review Officer in recommending a fair resolution of the dispute, the Rent Review Officer may make a recommendation to the parties for the resolution of their dispute. One or more tenants affected by a common rent increase may elect to simultaneously participate in the same mediation proceeding with consent of the landlord.
3.
Agreement. If the parties agree to a resolution proposed by the Rent Review Officer, they may formalize the agreement in a standard form signed by both parties. Neither the City nor the Rent Review Officer shall be a party to such an agreement, nor shall the City or the Rent Review Officer assume any responsibility for enforcement of its term.
4.
Failure to Appear. If the tenant requesting rent review appears at a mediation, but the landlord who has been given notice of the mediation as required by subsection 5-25.4e,1 fails to appear before the Rent Review Officer, the rent increase shall be void, and the landlord may not take any action to enforce such an invalid rent increase. Any rent increase in violation of this section shall operate as a complete defense to an unlawful detainer action based on failure to pay any invalid rent increase. If a tenant who has been given proper notice of the Rent Review mediation as required by subsection 5-25.4.E.1 fails to appear for the mediation, or if both the tenant and landlord fail to appear, the Rent Review Officer shall dismiss the case and the tenant will be barred from subsequently challenging such increase pursuant to this section. If either party fails to appear, but is granted an extension of time upon a finding by the Director of good cause for the failure to appear, the mediation shall be rescheduled as soon as reasonably possible.
5.
Good Cause. Upon a finding of good cause, the Director may grant a reasonable extension of time for a landlord or tenant to carry out any of his or her obligations pursuant to this subsection 5-25.4. Good cause shall include, but not be limited to, serious illness, unanticipated absence from the office, emergency, jury duty, non-refundable travel expenses, or other circumstances outside the control of the party seeking an extension of time.
f.
Retaliatory Eviction. Commencement of eviction proceedings against a tenant for exercising his or her rights under this section, including the right to rent review, shall be considered a retaliatory eviction. Under Civil Code Section 1942.5, it is illegal for a landlord to retaliate against a tenant for lawfully and peaceably exercising his or her legal rights.
[Ord. #2018-02]
a.
Annual Review. The Director shall annually prepare a report to the Council assessing the effectiveness of the Rent Review Program established under this section and recommending changes as may be appropriate.
b.
Property Registration and Fees.
1.
A landlord shall register each residential property with the City. The registration shall be on forms provided by the City and shall include the name and mailing address of the owner or owners of the residential property as well as any other information deemed necessary by the City.
2.
For the sole purpose of reimbursing the City for a portion of actual and reasonable costs of implementing this section, including costs associated with conciliation and mediation, the landlord of each residential property shall pay an annual fee in an amount to be set by resolution of the City Council for each residential property.
3.
For the sole purpose of reimbursing the City for a portion of the actual and reasonable costs of implementing this section, including costs associated with conciliation and mediation, each tenant who requests rent review shall pay a fee at the time the request is submitted, in an amount to be set by resolution of the City Council.