Note: Editor’s note: Article XVIII adopted at General
Municipal Election, April 10, 1979, Res. No. 5283CCS.
A growing shortage of housing units resulting in a low vacancy
rate and rapidly rising rents exploiting this shortage constitute
a serious housing problem affecting the lives of a substantial portion
of those Santa Monica residents who reside in residential housing.
In addition, speculation in the purchase and sale of existing residential
housing units results in further rent increases. These conditions
endanger the public health and welfare of Santa Monica tenants, especially
the poor, minorities, students, young families, and senior citizens.
The purpose of this Article, therefore, is to alleviate the hardship
caused by this serious housing shortage by establishing a Rent Control
Board empowered to regulate rentals in the City of Santa Monica so
that rents will not be increased unreasonably and so that landlords
will receive no more than a fair return.
In order to accomplish this purpose, this Article provides for
an elected Rent Control Board to ensure that rents are at a fair level
by requiring landlords to justify any rents in excess of the rents
in effect one year prior to the adoption of this Article. Tenants
may seek rent reductions from the rent in effect one year prior to
the adoption of this Article by establishing that those rents are
excessive. In addition to giving tenants an opportunity to contest
any rent increase, this Article attempts to provide reasonable protection
to tenants by controlling removal of controlled rental units from
the housing market and by requiring just cause for any eviction from
a controlled rental unit.
Through this Article, the City exercises its police power in
order to address the serious housing problem recognized in the original
enactment of this Rent Control Law in 1979 and still existing in 2002.
The 1984 and the 2002 Amendments to the Rent Control Law are intended
to clarify the law and ensure that the Rent Control Board possesses
adequate and independent authority to carry out its duties. They are
intended to ensure due process of law for landlords and tenants, effective
remedies for violation of the law, and consistency with constitutional
requirements. They are also intended to enable the Board to provide
relief to persons facing particular hardship and to protect and increase
the supply of affordable housing in the City. Termination or erosion
of the protections of this Article would have serious disruptive consequences
for persons in need of protection and the supply of affordable housing
in the City.
(Amended at General Municipal Election, November 6, 1984, Res. No. 6943CCS; November 5, 2002, Measure FF)
The following words or phrases as used in this Article shall
have the following meanings:
The term “Board” refers to the elected Rent Control
Board established by this Article.
The members of the Board and Interim Board are denominated
Commissioners.
All residential rental units in the City of Santa Monica, including mobile homes, and mobile home spaces, and trailers and trailer spaces, except single family homes to the extent provided for in Section 1815 and those units found by the Board to be exempt under one or more of the following provisions:
Rental units in hotels, motels, inns, tourist homes and rooming
and boarding houses which are rented primarily to transient guests
for a period of less than fourteen (14) days.
Rental units in any hospital, convent, monastery, extended medical
care facility, asylum, non-profit home for the aged, or dormitory
owned and operated by an institution of higher education.
Rental units which a government unit, agency or authority owns,
operates, manages, or in which governmentally subsidized tenants reside
only if applicable Federal or State law or administrative regulation
specially exempt such units from municipal rent control.
Rental units in owner-occupied dwellings with no more than three
(3) units. For purposes of this Section:
The term “owner” means a natural person who owns
a fifty (50) percent ownership interest in the building and resides
on the property as his or her principal place of residence.
An exemption under this Section shall expire by operation of
law when the owner ceases to reside on the property as his or her
principal place of residence; thereafter, all units on the property
shall be subject to all provisions of this Article.
Rental units and dwellings constructed after the adoption of
this Article; this exemption does not apply to units created as a
result of conversion as opposed to new construction.
Where a unit is actually used for purposes of providing, on
a nonprofit basis, child care or other residential social services
in accordance with applicable laws. This exemption shall expire when
the use upon which exemption is based ceases. This exemption shall
only apply to units as they become vacant and shall only operate to
allow the specified use without the necessity of obtaining a removal
permit under this Article. This exemption shall not be construed to
authorize the eviction of any tenant nor to authorize the charging
of rent in excess of that permitted under this Article. The Board
may adopt regulations to determine whether a unit qualifies for an
exemption under this Section.
Exemptions are not automatic but shall be granted by the Board
upon application by the owner pursuant to Board rules, provided that
if the Board does not act upon a completed application for exemption
within ninety (90) days of its filing it shall be deemed approved.
Housing services include, but are not limited to repairs,
maintenance, painting, providing light, hot and cold water, elevator
service, window shades and screens, storage, kitchen, bath and laundry
facilities and privileges, janitor services, refuse removal, furnishings,
telephone, parking, the right to have a specified number of occupants,
and any other benefit, privilege or facility connected with the use
or occupancy of any rental unit. Services to a rental unit shall include
a proportionate part of services provided to common facilities of
the building in which the rental unit is contained.
An owner, lessor, sublessor or any other person entitled
to receive rent for the use and occupancy of any rental unit, or an
agent, representative or successor of any of the foregoing.
All periodic payments and all nonmonetary consideration including
but not limited to, the fair market value of goods or services rendered
to or for the benefit of the landlord under an agreement concerning
the use or occupancy of a rental unit and premises including all payment
and consideration demanded or paid for parking, pets, furniture, subletting
and security deposits for damages and cleaning.
An agreement, oral, written or implied, between a landlord
and tenant for use or occupancy of a rental unit and for housing services.
Any building, structure, or part thereof, or land appurtenant
thereto, or any other rental property rented or offered for rent for
living or dwelling house units, together with all housing services
connected with use or occupancy of such property such as common areas
and recreational facilities held out for use by the tenant.
A tenant, subtenant, lessee, sublessee or any other person
entitled under the terms of a rental housing agreement to the use
or occupancy of any rental unit.
Any group of tenants residing in controlled rental units
in the same building or in different buildings operated by the same
management company, agent or landlord, who requests to be so designated.
Rent ceiling refers to the limit on the maximum allowable
rent which a landlord may charge on any controlled rental unit.
The maximum allowable rent established in Section 1804(b).
All rental units on a parcel or lot or contiguous parcels
or contiguous lots under common ownership.
A property that has been developed with only one one-family
dwelling and any lawful accessory structures, or a lawfully created
condominium, stock cooperative or similar unit that is part of a larger
residential structure or complex, excepting those condominiums, stock
cooperatives, or similar units converted after April 10, 1979 for
which no removal permit or vested right determination has been issued
by the Board, and those created pursuant to Article XX of this Charter.
(Amended at General Municipal Election, November 6, 1984, Res. No. 6943CCS; November 5, 2002, Measure FF)
The Rent Control Board shall be an integral part of the government
of the City, but shall exercise its powers and duties under this Article
independent of and without interference from the City Council, City
Manager, and City Attorney. With respect to the internal organization
and affairs of the Board:
(a)
Budget. The Board shall, prior to July 1 of each year, hold
a public hearing on a proposed budget and adopt an annual budget for
the ensuing fiscal year. At least thirty-five (35) days prior to the
beginning of each fiscal year, the Board’s administrator shall
submit to the Board the proposed budget as prepared by him or her.
After reviewing the same and making such revisions as it may deem
advisable, the Board shall determine the time for the holding of a
public hearing thereon and shall cause to be published a notice thereof
not less than ten (10) days prior to said hearing, by at least one
insertion in the official newspaper. Copies of the proposed budget
shall be available for inspection by the public in the office of the
Board at least ten (10) days prior to said hearing. The City Council
and the City Manager shall have no authority to oversee, supervise,
or approve this budget. Upon final adoption, the budget shall be in
effect for the ensuing fiscal year and the amounts stated therein
shall be and become appropriated by the Board for the respective objects
and purposes therein specified. At any meeting after the adoption
of the budget, the Board may amend or supplement the budget by the
affirmative votes of at least three (3) members. Copies of the adopted
budget and any amendments or supplements shall be filed with the City
Clerk, City Controller, and City Manager. Necessary adjustments to
City administrative procedures shall be made.
(b)
Personnel. Except for the elected or appointed Commissioners,
the Administrator, and attorneys employed to represent or advise the
Board, all employees of the Board are within the classified Civil
Service of the City. The Board shall appoint an Administrator to administer
and supervise the exercise of its powers and duties who shall be directly
responsible to the Board. All employees of the Board, except the Administrator
and attorneys, shall be hired, terminated, suspended, and demoted
in accordance with the provisions of Article XI of the Charter and
implementing provisions of the Municipal Code. The Board shall classify
employee positions, establish employee salaries and benefits, evaluate
the performance of its employees, and be responsible for the layoff
and recall of its employees, pursuant to regulations and procedures
that it establishes. The Board may enter into and approve a Memorandum
of Understanding with representatives of its employees concerning
their wages, benefits, hours of work, and terms and conditions of
employment in accordance with State law. The City Council shall have
no power to abolish positions established or classified by the Board
under this Article, notwithstanding any other section of this Charter.
Provisions of the Municipal Code and other ordinances or resolutions
of the City Council shall not limit the Board’s power to adopt
regulations and policies and to approve Memorandums of Understanding
governing its relationship with its employees under this Section.
(c)
Board Legal Work. Legal staff hired by the Board shall represent
and advise the Board, its Commissioners, and its staff in any civil
matters, actions, or proceedings in which the Board, its Commissioners,
or its staff, in or by reason of their official capacity, are concerned
or are a party. The Board may, in its sole discretion, and without
approval of the City Council, retain private attorneys to furnish
legal advice or representation in particular matters, actions or proceedings.
(d)
Contracts and Purchases. The Board shall comply with the provisions
of the City Charter providing for a centralized purchasing system
and competitive bidding, and shall procure goods and services as do
other City agencies. Provided, however, that the Board shall have
sole and final authority to employ attorneys, legislative lobbyists,
and other professionals, and to approve contracts for such professional
services.
(e)
Conforming Regulations. If any portion of this Article is
declared invalid or unenforceable by decision of a court of competent
jurisdiction or rendered invalid or unenforceable by State or Federal
legislation, the Board and not the City Council shall have authority
to enact replacement regulations consistent with the intent and purpose
of the invalidated provision and applicable law. Such replacement
regulations shall supersede invalidated or unenforceable provisions
of this Article to the extent necessary to resolve any inconsistency.
The subject matter of such replacement regulations shall be limited
to rent control matters as enumerated in this Article.
(Amended at General Municipal Election, November 6, 1984, Res. No. 6943CCS)
(a)
Composition. There shall be in the City of Santa Monica a
Rent Control Board. The Board shall consist of five (5) elected Commissioners.
The Board shall elect annually as chairperson, one of its members
to serve in that capacity.
(b)
Eligibility. Duly qualified electors of the City of Santa
Monica are eligible to serve as Commissioners of the Board.
(c)
Full Disclosure of Holdings. Candidates for the position of
Commissioner shall submit a verified statement listing all of their
interests and dealings in real property, including but not limited
to its ownership, sale or management, during the previous three (3)
years.
(d)
Election of Commissioners. Commissioners shall be elected
at general municipal elections in the same manner as set forth in
Article XIV of the Santa Monica Charter, except that the first Commissioners
shall be elected at a special municipal election held within ninety
(90) days of the adoption of this Article. The elected Commissioners
shall take office on the first Tuesday following their election. If,
upon the City Clerk’s determination of the qualified candidates,
the number of candidates does not exceed the number of vacant positions,
no election will be held and the qualified candidates shall be seated
upon swearing in by the City Clerk.
(e)
Term of Office. Commissioners shall be elected to serve terms of four (4) years, beginning on the first Tuesday following their election, except that of the first five (5) Commissioners elected in accordance with Section 1803(d), the two (2) Commissioners receiving the most votes shall serve until April 15, 1985 and the remaining three (3) Commissioners shall serve until April 18, 1983. Commissioners shall serve a maximum of two (2) full terms.
(f)
Powers and Duties. The Board shall have the following powers
and duties:
(1)
Set the rent ceilings for all controlled rental units.
(5)
Set rents at fair and equitable levels in order to achieve the intent
of this Article.
(6)
Hire and pay necessary staff, including hearing examiners and personnel
to issue orders, rules and regulations, conduct hearings and charge
fees as set forth below.
(7)
Make such studies, surveys and investigations, conduct such hearings,
and obtain such information as is necessary to carry out its powers
and duties.
(8)
Report annually to the City Council of the City of Santa Monica on
the status of controlled rental housing.
(10)
Issue permits for removal of controlled rental units from rental housing market under Section 1803(t).
(11)
Administer oaths and affirmations and subpoena witnesses.
(12)
Establish rules and regulations for deducting penalties and settling civil claims under Section 1809.
(13)
Refer violations of this Article to appropriate authorities for criminal
prosecution.
(15)
Charge and collect registration fees, including penalties for late
payments.
(g)
Rules and Regulations. The Board shall issue and follow such rules and regulations, including those which are contained in this Article, as will further the purposes of the Article. The Board shall publicize its rules and regulations prior to promulgation in at least one newspaper of general circulation in the City of Santa Monica. The Board shall hold at least one public hearing to consider the views of interested parties before deciding whether to impose a dollar-amount ceiling on a general adjustment under Section 1805(b) or deciding to decontrol or reimpose control for any class of rental units under Section 1803(r). All rules and regulations, internal staff memoranda, and written correspondence explaining the decisions, orders, and policies of the Board shall be kept in the Board’s office and shall be available to the public for inspection and copying. The Board shall publicize this Article so that all residents of Santa Monica will have the opportunity to become informed about their legal rights and duties under Rent Control in Santa Monica. The Board shall prepare a brochure which fully describes the legal rights and duties of landlords and tenants under Rent Control in Santa Monica. The brochure will be available to the public, and each tenant of a controlled rental unit shall receive a copy of the brochure from his or her landlord.
(h)
Meetings. The Board shall hold such regularly scheduled meetings
as are necessary to ensure the timely performance of its duties under
this Article. All regular and special meetings shall be called and
conducted in accordance with State law.
(i)
Quorum. Three (3) Commissioners shall constitute a quorum
for the Board.
(j)
Voting. The affirmative vote of three (3) Commissioners of
the Board is required for a decision, including all motions, regulations,
and orders of the Board.
(k)
Compensation. Each Commissioner shall receive for every meeting
attended seventy-five dollars ($75.00), but in no event shall any
Commissioner receive in any twelve (12) month period more than four
thousand seven hundred fifty dollars ($4,750.00) for services rendered.
(l)
Dockets. The Board shall maintain and keep in its office all
hearing dockets.
(m)
Vacancies. If a vacancy shall occur on the Board, the Board
shall within thirty (30) days appoint a qualified person to fill such
a vacancy until the following general municipal election when a qualified
person shall be elected to serve for the remainder of the term.
(n)
Financing. The Board shall finance its reasonable and necessary
expenses by charging landlords annual registration fees in amounts
deemed reasonable by the Board with a maximum annual registration
fee of up to two hundred eighty-eight dollars ($288.00) per controlled
unit. Fifty (50) percent of the amount of the registration fees may
be passed through from landlords to tenants, and the Board may establish
applicable conditions and procedures governing the pass through. The
Board is also empowered to request and receive funding when and if
necessary from any available source for its reasonable and necessary
expenses.
(o)
Recall. Commissioners may be recalled in accordance with the
provisions of Article XIV of the Santa Monica Charter.
(p)
Staff. The Board shall employ and pay such staff, including
hearing examiners and inspectors, as may be necessary to perform its
function efficiently in order to fulfill the purpose of this Article.
(q)
Registration. Within sixty (60) days after the adoption of
this Article, the Board shall require the registration of all controlled
rental units, which shall be re-registered at times deemed appropriate
by the Board. The initial registration shall include the rent in effect
at the time on the date of the adoption of this Article, base rent
ceiling, the address of the rental unit, the name and address of the
landlord, the housing services provided to the unit, a statement indicating
all operating cost increases since the base rent ceiling date, and
any other information deemed relevant by the Board. The Board shall
require the landlord to report vacancies in the controlled rental
units and shall make a list of vacant controlled rental units available
to the public. If the Board, after the landlord has proper notice
and after a hearing, determines that a landlord has wilfully and knowingly
failed to register a controlled rental unit, the Board may authorize
the tenant of such a non-registered controlled rental unit to withhold
all or a portion of the rent for the unit until such time as the rental
unit is properly registered. After a rental unit is properly registered,
the Board shall determine what portion, if any, of the withheld rent
is owed to the landlord for the period in which the rental unit was
not properly registered. Whether or not the Board allows such withholding,
no landlord who has failed to register properly shall at any time
increase rents for a controlled rental unit until such units are properly
registered.
(r)
Decontrol. If the average annual vacancy rate in any category,
classification, or area of controlled rental units exceeds five (5)
percent, the Board is empowered, at its discretion and in order to
achieve the objectives of this Article, to remove rent controls from
such category, classification or area. The Board may determine such
categories, classifications, or areas for purposes of decontrol consistent
with the objectives of this Article. In determining the vacancy rate
for any category, classification or area of controlled rental units,
the Board shall consider all available data and shall conduct its
own survey. If units are decontrolled pursuant to this Subsection,
controls shall be reimposed if the Board finds that the average annual
vacancy rate has thereafter fallen below five (5) percent for such
category, classification or area.
(s)
Security Deposits. Any payment or deposit of money the primary function of which is to secure the performance of a rental agreement or any part of such agreement, including an advance payment of rent, shall be placed in an interest bearing account at a federally insured financial institution until such time as it is returned to the tenant or entitled to be used by the landlord. Unless and until the Board enacts regulations directing that the interest on such accounts be paid directly to the tenant, the landlord may either pay such interest directly to the tenant or use it to offset operating expenses, in which case the offset shall be a factor in making individual rent adjustments under Section 1805. The Board may regulate the amount and use of security deposits consistent with the purposes of this Article and State law.
(t)
Removal of Controlled Unit From Rental Housing Market.
(1)
Any landlord who desires to remove a controlled rental unit from
the rental housing market by demolition, conversion or other means
is required to obtain a permit from the Board prior to such removal
from the rental housing market in accordance with rules and regulations
promulgated by the Board. In order to approve such a permit, the Board
is required to find that the landlord cannot make a fair return by
retaining the controlled rental unit.
(2)
Notwithstanding the foregoing provisions of this Subsection, the
Board may approve such a permit:
(i)
If the Board finds that the controlled rental unit is uninhabitable
and is incapable of being made habitable in an economically feasible
manner; or
(ii)
If the permit is being sought so that the property may be developed
with multifamily dwelling units and the permit applicant agrees as
a condition of approval, that the units will not be exempt from the
provisions of this Article pursuant to Section 1801(c) and that at
least fifteen (15) percent of the controlled rental units to be built
on the site will be at rents affordable by persons of low income.
(3)
The Housing Element of the General Plan of the City of Santa Monica
shall at all times contain a provision that neither the City Council
nor any City agency shall approve an application for tentative subdivision
map or tentative parcel map for a converted unit until and unless
the applicant first obtains a removal permit as required by this Section.
This Subsection shall not apply to any tentative subdivision map or
tentative parcel map approved in accordance with Article XX relating
to tenant ownership rights.
(4)
The Board shall render its final decision within one hundred twenty
(120) days of the filing of a completed application under this Section.
(Amended at General Municipal Election 11/6/84, certified by Res. No. 6943CCS; General Municipal Election 11/3/92, certified
by Res. No. 8503CCS; General Municipal
Election 11/6/12, effective 12/12/12; General Municipal Election 11/4/14, certified by Res. No. 10850CCS; Measure RC, 11/8/22)
(a)
Temporary Freeze.
(1)
Rents shall not be increased during the one hundred-twenty (120)
day period following the date of adoption of this Article.
(2)
Notwithstanding Section 1805, the Board may, in its discretion and in order to protect the public’s health and safety, disallow or, alternatively, modify otherwise-allowed annual general adjustments to rent ceilings during a state of emergency declared by the President of the United States, the Governor, or the Los Angeles County Department of Public Health Officer, or upon the declaration of a local emergency by the City Council or Director of Emergency Services. Nothing in this section precludes a landlord from filing a petition for an upward rent adjustment per Section 1805 of the City Charter.
(b)
Establishment of Base Rent Ceiling. Beginning one hundred twenty (120) days after the adoption of this Article, no landlord shall charge rent for any controlled rental units in an amount greater than the rent in effect on the date one year prior to the adoption of this Article. The rent in effect on that date is the base rent ceiling. If there was no rent in effect on the date one year prior to the adoption of this Article, the base rent ceiling shall be the rent that was charged on the first date that rent was charged following the date one year prior to the adoption of this Article. For tenancies commencing on or after January 1, 1999, which qualify for a vacancy rent increase pursuant to state law, the base rent ceiling is the initial rental rate in effect on the date the tenancy commences. As used in this subsection, the term “initial rental rate” means only the amount of rent actually paid by the tenant for the initial term of the tenancy. The base rent ceiling is the reference point from which the rent ceiling shall be adjusted upward or downward in accordance with Section 1805.
(c)
Posting. As soon as the landlord is aware of the maximum allowable
rent, the landlord shall post it for each unit in a prominent place
in or about the affected controlled rent units. The Board may require
that other information it deems relevant also be posted.
(Amended at General Municipal Election 11/6/84, certified by Res. No. 6943CCS; 11/5/02, Measure FF; General
Municipal Election 11/6/12, effective 12/12/12; Measure EM, 11/8/22)
(a)
Annual General Adjustment. No later than June 30 each year,
the Board shall announce the percentage by which rent ceilings for
eligible units will be generally adjusted effective September 1 of
that year.
(1)
The adjustment shall be equal to seventy-five (75) percent of the
percentage increase in the Consumer Price Index (All Urban Consumers,
Los Angeles, Riverside, Orange County region, or any successor designation
of that index that may later be adopted by the U.S. Bureau of Labor
Statistics) as reported and published by the U.S. Department of Labor,
Bureau of Labor Statistics, for the twelve (12) month period ending
as of March of the current year.
(2)
In determining the allowable percentage increase, numbers of 0.04
and below shall be rounded down to the nearest tenth decimal place
and numbers of 0.05 and above shall be rounded up to the nearest tenth
decimal place.
(3)
Subparagraph 1 of this subsection notwithstanding, in no event shall
the general adjustment be less than zero percent or greater than three
(3) percent; and
(4)
Commencing February 1, 2023, the general adjustment during the period from February 1, 2023, through August 31, 2023, shall be 0.8% of the maximum allowable rent (MAR) in effect as of August 31, 2022, with a maximum dollar amount limit of nineteen dollars ($19) (“Adjusted GA”). Absent an individual adjustment pursuant to subparagraphs (c) through (h) of this Section, the MAR during this seven month transition period shall be the MAR in effect as of August 31, 2022, plus the Adjusted GA. Notwithstanding the Board’s June 2022 announcement of the 2022 general adjustment, the MAR for any period after August 31, 2023, shall be calculated pursuant to this Section 1805 as if the General Adjustment for the entire period from September 1, 2022, through August 31, 2023, had been three (3) percent, with a maximum dollar amount limit of seventy dollars ($70). The Rent Control Board may by regulation increase the Adjusted GA for landlords who did not increase their rents by the full six (6) percent prior to February 1, 2023, so long as the average rent increase for the period from September 1, 2022, through August 31, 2023, does not exceed the lower of 3% or $70 per month.
(5)
If any section, subsection, subdivision, paragraph, sentence, clause
or phrase of this Section is for any reason held to be invalid, unlawful,
or unconstitutional, such decision shall not affect the validity of
the remaining portions of this Section or any portion thereof.
(b)
Dollar-Amount Ceiling. The Board may, in its discretion, impose
a dollar-amount limit to any annual general adjustment. The dollar-amount
limit shall be calculated using the following methodology:
(1)
The Board shall determine the eighty-fifth (85th) percentile of the
maximum allowable rent of all controlled units;
(2)
The Board shall then determine the eighty-fifth (85th) percentile
of maximum allowable rent of all controlled units with a base rent
established before January 1, 1999;
(3)
The dollar-amount limit shall be the average of the two (2) rents
arrived at under subparagraphs (1) and (2) multiplied by the annual
general adjustment determined under subsection (a) of this Section.
(c)
Petitions. Upon receipt of a petition by a landlord and/or a tenant, the maximum rent of individual controlled rental units may be adjusted upward or downward in accordance with the procedures set forth elsewhere in this Section. The petition shall be on the form provided by the Board and shall include a declaration by the landlord that the unit meets all requirements of Section 1805(h). Notwithstanding any other provision of this Section, the Board or hearing examiner may refuse to hold a hearing and/or grant a rent adjustment if an individual hearing has been held and decision made with regard to maximum rent within the previous six (6) months.
(d)
Hearing Procedure. The Board shall enact rules and regulations
governing hearings and appeals of individual adjustment of ceilings
on allowable rents which shall include the following:
(1)
Hearing Examiner. A hearing examiner appointed by the
Board shall conduct a hearing to act upon the petition for individual
adjustment of ceilings on allowable rents and shall have the power
to administer oaths and affirmations.
(2)
Notice. The Board shall notify the landlord if the petition
was filed by the tenant, or the tenant, if the petition was filed
by the landlord, of the receipt of such a petition and a copy thereof.
(3)
Time of Hearing. The hearing officer shall notify all
parties, as to the time, date and place of the hearing.
(4)
Records. The hearing examiner may require either party
to a rent adjustment hearing to provide it with any books, records
and papers deemed pertinent in addition to that information contained
in registration statements. The hearing examiner shall conduct a current
building inspection and/or request the City to conduct a current building
inspection if the hearing examiner finds good cause to believe the
Board’s current information does not reflect the current condition
of the controlled rental unit. The tenant may request the hearing
examiner to order such an inspection prior to the date of the hearing.
All documents required under this Section shall be made available
to the parties involved prior to the hearing at the office of the
Board. In cases where information filed in a petition for rent ceiling
adjustment or in additional submissions filed at the request of the
hearing examiner is inadequate or false, no action shall be taken
on said petition until the deficiency is remedied.
(5)
Open Hearings. All rent ceiling adjustment hearings
shall be open to the public.
(6)
Right of Assistance. All parties to a hearing may have
assistance in presenting evidence and developing their position from
attorneys, legal workers, recognized tenant organization representatives
or any other persons designated by said parties.
(7)
Hearing Record. The Board shall make available for inspection
and copying by any person an official record which shall constitute
the exclusive record for decision on the issues at the hearing. The
record of the hearing, or any part on one, shall be obtainable for
the cost of copying. The record of the hearing shall include: all
exhibits, papers and documents required to be filed or accepted into
evidence during the proceedings; a list of participants present; a
summary of all testimony accepted in the proceedings; a statement
of all materials officially noticed; all recommended decisions; orders
and/or rulings; all final decisions, orders and/or rulings, and the
reasons for each final decision, order and/or ruling. Any party may
have the proceeding tape recorded or otherwise transcribed at his
or her own expense.
(8)
Quantum of Proof and Notice of Decision. No individual adjustment shall be granted unless supported by the preponderance of the evidence submitted at the hearing. All parties to a hearing shall be sent a notice of the decision and a copy of the findings of face and law upon which said decision is based. At the same time, parties to the proceeding shall also be notified of their right to any appeal allowed by the Board and/or to judicial review of the decision pursuant to this Section and Section 1808 of this Article.
(9)
Consolidation. All landlord petitions pertaining to
tenants in the same building will be consolidated for hearing, and
all petitions filed by tenants occupying the same building shall be
consolidated for hearing unless there is a showing of good cause not
to consolidate such petitions.
(10)
Appeal. Any person aggrieved by the decision of the
hearing examiner may appeal to the Board. On appeal, the Board shall
affirm, reverse or modify the decision of the hearing examiner. The
Board may conduct a de novo hearing or may act on the basis of the
record before the hearing examiner without holding a hearing.
(11)
Finality of Decision. The decision of the hearing examiner
shall be the final decision of the Board in the event of no appeal
to the Board. The decision of the hearing examiner shall not be stayed
pending appeal; however, in the event that the Board on appeal reverses
or modifies the decision of the hearing examiner, the landlord, in
the case of an upward adjustment in rent, or the tenant, in the case
of a downward adjustment of rent, shall be ordered to make retroactive
payments to restore the parties to the position they would have occupied
had the hearing examiner’s decision been the same as that of
the Board.
(12)
Time for Decision. The rules and regulations adopted
by the Board shall provide for final action on any individual rent
adjustment petition within one hundred twenty (120) days, following
the date of filing of the individual rent adjustment petition.
(13)
Board Action in Lieu of Reference to Hearing Examiner. The Board, on its own motion or on the request of any landlord or
tenant, may hold a hearing on an individual petition for rent adjustment
without the petition first being heard by a hearing examiner.
(14)
Decisions decreasing rents shall remain in effect until the Board
finds that the landlord has corrected the defect warranting the decrease.
The Board shall, by regulation, establish procedures for making prompt
compliance determinations. Upon a determination of compliance the
landlord shall be entitled to reinstatement of the prior rent level,
retroactive to the date that the landlord corrected the defect which
warranted the decrease.
(e)
In
making individual adjustments of the rent ceiling, the Board shall
consider the purposes of this Article and the requirements of law.
In making an individual downward adjustment, the Board may consider
decreases in living space, furniture, furnishings, equipment, or services;
substantial deterioration of the controlled rental unit other than
as a result of ordinary wear and tear; or failure on the part of the
landlord to provide adequate housing services or to comply substantially
with applicable housing, health and safety codes. In making an individual
upward adjustment, the Board may employ as its fair return standard
any lawful formula, including but not limited to one based on investment
or net operating income. The Board shall consider all factors relevant
to the formula it employs. Such factors may include: increases or
decreases in operating and maintenance expenses; the extent of utilities
paid by the landlord; necessary and reasonable capital improvement
of the controlled rental unit as distinguished from normal repair,
replacement and maintenance; increases or decreases in living space;
furniture, furnishings, equipment, or services; Federal and State
income tax benefits; the speculative nature of the investment; whether
or not the property was acquired or is held as a long-term or short-term
investment; the landlord’s rate of return on investment; the
landlord’s current and base date Net Operating Income; and any
other factor deemed relevant by the Board in providing the landlord
a fair return.
(f)
No
rent increase shall be authorized by this Article because a landlord
has a negative cash flow as the result of refinancing the controlled
rental unit if at the time the landlord refinanced the landlord could
reasonably have foreseen a negative cash flow based on the rent schedule
then in existence within the one year period following refinancing.
This paragraph shall only apply to that portion of the negative cash
flow reasonably foreseeable within the one year period following refinancing
of the controlled rental unit and shall only apply to controlled rental
units refinanced after the date of adoption of this Article.
(g)
No
rent increase shall be authorized by this Article because a landlord
has a negative cash flow if at the time the landlord acquired the
controlled rental unit, the landlord could reasonably have foreseen
a negative cash flow based on the rent schedule then in existence
within the one-year period following acquisition. This paragraph shall
only apply to that portion of the negative cash flow reasonably foreseeable
within the one year period following acquisition of a controlled rental
unit and shall only apply to controlled rental units acquired after
the date of adoption of this Article.
(h)
No
landlord shall increase rent under this Article if the landlord:
(1)
Has failed to comply with any provision of this Article and/or regulations
issued thereunder by the Board, including the provisions requiring
the payment of registration fees and registration penalties.
(2)
Has failed to comply substantially with any applicable State or local
housing, health or safety law. No landlord shall increase rent unless
the notice increasing rent contains a statement in substantially the
following form: “The undersigned (landlord) certifies that this
unit and common areas are not subject to any uncorrected citation
or notices of violation of any State or local housing health, or safety
laws issued by any government official or agency.” If a landlord
fails to comply with this Subsection, the tenant may refuse to pay
the improperly noticed increase, may seek administrative or civil
remedies under this Article, and may raise the landlord’s noncompliance
as an affirmative defense in any resulting unlawful detainer action.
(i)
The Board may, in its discretion, enact regulations to provide for
increases of rents on units voluntarily vacated after the effective
date of this Subsection in properties where the landlord has dedicated
a percentage of units to be rented to persons of very low or low income
at affordable rents. The Board may enact procedures and other regulations
governing determination of the conditions upon which such increases
will be permitted, the extent of the increases, the required mix of
affordable units to be provided, ways to ensure the continued provision
of affordable housing under this Subsection, the terms and conditions
applicable when landlords cease to participate or when tenants vacate
or cease to qualify for units dedicated to affordable housing, and
other measures it deems necessary.
If the Board enacts regulations under this Subsection, it shall
provide for the following:
(1)
That a property shall not be eligible for this program unless
a specified percentage of all units on the property, no less than
fifteen (15) percent, will be occupied by tenants of very low or low
income and the rent on each unit so occupied does not exceed a specified
percentage, no greater than thirty (30) percent, of such tenants’
income.
(2)
That tenants of very low or low income occupying units maintained
at affordable rent levels under this program are protected if the
landlord elects not to participate further in the program. Such protection
shall include, at a minimum, a provision prohibiting the rent of such
tenants from being increased by a percentage greater than the general
annual adjustment allowed by the Board even if the resulting rent
is below the maximum allowable rent and the landlord has lowered the
rent for other units on the property.
(Amended at General Municipal Election, November 6, 1984, Res. No. 6943CCS; General Municipal Election, November 6, 2012, effective 12/12/12; Measure
RC, 11/8/22)
(a)
No
landlord shall take action to terminate any tenancy including, but
not limited to, making a demand for possession of a rental unit, threatening
to terminate a tenancy, serving any notice to quit or other eviction
notice or bringing any action to recover possession or be granted
recovery of possession of a controlled rental unit except on one of
the following grounds:
(1)
The tenant has failed to pay the rent to which the landlord is entitled
under the rental housing agreement and this Article.
(2)
The tenant has continued, after written notice to cease, to commit
a material and substantial breach of an obligation or covenant of
his or her tenancy which the landlord has not waived either expressly
or impliedly through the landlord’s conduct and which the landlord
is not estopped from asserting, other than the obligation to surrender
possession upon proper notice. Notwithstanding any contrary provision
in this Section, and notwithstanding any contrary provision in the
rental housing agreement, a landlord shall not take any action to
terminate a tenancy based on a tenant’s sublease of the unit
if the following requirements are met:
(i)
The tenant continues to reside in the rental unit.
(ii)
The sublease replaces a departed tenant(s) under the rental
agreement on a one-for-one basis.
(iii)
The landlord has unreasonably withheld the right to sublease
following written request by the tenant. If the landlord fails to
respond to the tenant in writing within fourteen (14) days of receipt
of the tenant’s written request, the tenant’s request
shall be deemed approved by the landlord.
(3)
The tenant has continued, after written notice to cease, to commit
or expressly permit a nuisance in, or cause substantial damage to,
the controlled rental unit; or to create a substantial interference
with the comfort, safety, or enjoyment of the landlord or other occupants
or neighbors of the same.
(4)
The tenant is convicted of using or expressly permitting a controlled
rental unit to be used for any illegal purpose.
(5)
The tenant, who had a rental housing agreement which had terminated,
has refused, after written request or demand by the landlord, to execute
a written extension or renewal thereof for a further term of like
duration and in such terms as are not inconsistent with or violative
of any provisions of this Article and are materially the same as in
the previous agreement.
(6)
The tenant has continued to refuse after written notice, to grant
the landlord reasonable access to the controlled rental unit for the
purposes of making necessary repairs or improvements required by the
laws of the United States, the State of California or any subdivision
thereof or for the purpose of showing the rental housing to any prospective
purchaser or mortgagee.
(7)
The tenant holding at the end of the term of the rental housing agreement
is a subtenant not approved by the landlord.
(8)
The landlord seeks to recover possession in good faith for use and
occupancy by herself or himself, or her or his children, parents,
grandparents, brother, sister, father-in-law, mother-in-law, son-in-law,
or daughter-in-law. For purposes of evictions under this Subsection:
(i)
A “landlord” shall be defined as a natural person who
has at least a fifty (50) percent ownership interest in the property.
(ii)
No eviction may take place if any landlord or enumerated relative
already occupies one unit on the property, or if a vacancy already
exists on the property and the vacant unit is comparable to the unit
for which eviction is sought. Where the vacant unit is determined
not to be comparable, thereby permitting eviction under this Subsection,
the evicted tenant or tenants shall be first given the right to occupy
the vacant unit and the rent thereof shall be the lesser of the maximum
allowable rent for the vacant unit and the maximum allowable rent
of the unit from which the tenant or tenants are evicted. The Rent
Control Board shall promulgate regulations defining when a unit is
comparable for purposes of this paragraph.
(iii)
The notice terminating tenancy shall contain the name, address
and relationship to the landlord of the person intended to occupy.
(iv)
The landlord or enumerated relative must intend in good faith
to move into the unit within sixty (60) days after the tenant vacates
and to occupy the unit as a primary residence for at least two years,
unless extenuating circumstances exist.
(v)
If the landlord or relative specified
on the notice terminating tenancy fails to occupy the unit within
sixty (60) days after the tenant vacates or fails to occupy the unit
as a primary residence for at least two years, unless extenuating
circumstances exist, the landlord shall:
(vi)
No eviction pursuant to this Subsection shall be allowed in
any condominium or stock cooperative unit which has been converted
from an apartment or other rental unit after April 10, 1979, unless
the Rent Control Board has issued a removal permit or declared a vested
right for said unit. As used in this subpart, a unit shall be deemed
converted after April 10, 1979, if on April 10, 1979, the recorded
tract map or parcel map for the property showed the unit as included
in the property.
(vii)
A landlord may not evict a tenant pursuant to this Subsection
if the tenant (A) has resided in the unit for at least five (5) years
and is either at least sixty-two (62) years old or disabled; or (B)
is certified as being terminally ill by the tenant’s treating
physician. For purposes of this Subsection, “disabled”
means a person who is receiving benefits from a Federal, State, or
local government, or from a private entity, on account of a permanent
disability that prevents the person from engaging in regular, full-time
employment.
Notwithstanding the above, a landlord may evict a tenant who
qualifies for the exemption if the landlord or enumerated relative
who will occupy the unit also meets the criteria for this exemption.
(9)
The landlord seeks to recover possession to demolish or otherwise
remove the controlled rental unit from rental residential housing
use after having obtained all proper permits from the City of Santa
Monica.
(10)
The landlord has filed the requisite documents with the Rent Control
Board initiating the procedure for withdrawing units from rent or
lease under Government Code Section 7060 et seq., and the Board’s
regulations, with the intention of completing the withdrawal process
and going out of the residential rental business.
(b)
Any written notice as described in Subsections (a)(2), (3) or (6) shall be served by the landlord a reasonable period prior to serving a notice to terminate tenancy and shall inform the tenant that a failure to cure may result in the initiation of eviction proceedings. The Board may enact regulations regarding reasonable notice.
(c)
Notwithstanding
any contrary provision in this Section or in the rental housing agreement,
if the tenant’s spouse, child(ren), and/or domestic partner
who has filed an Affidavit of Domestic Partnership with the City have
lived in the unit for at least one year at the time the tenant vacates
the unit due to death or incapacitation, the landlord is prohibited
from taking any action to obtain possession of the unit from the tenant’s
spouse, child(ren), and/or registered domestic partner on the ground
that the spouse, child(ren) and/or registered domestic partner are
not authorized to occupy the unit.
(d)
Notwithstanding the above provisions, possession shall not be granted if it is determined that the eviction is in retaliation for the tenant reporting violations of this Article, for exercising rights granted under this Article, including the right to withhold rent upon authorization of the Board under Section 1803(q) or Section 1809 or for organization other tenants.
(e)
In
any notice purporting to terminate tenancy the landlord shall state
the cause for the termination, and in any action brought to recover
possession of a controlled rental unit, the landlord shall allege
and prove compliance with this Section. The landlord shall file with
the Rent Control Board a copy of any notice terminating tenancy, except
a three day notice to pay rent or vacate, within three days after
serving the notice on the tenant.
(f)
Failure
to comply with any requirement of this Section may be asserted as
an affirmative defense in an action brought by the landlord to recover
possession of the unit. Additionally, any attempt to recover possession
of a unit in violation of this Article shall render the landlord liable
to the tenant for actual and punitive damages, including damages for
emotional distress, in a civil action for wrongful eviction. The tenant
or the Rent Control Board may seek injunctive relief and money damages
for wrongful eviction. The prevailing party in an action for wrongful
eviction shall recover costs and reasonable attorneys’ fees.
(Amended at General Municipal Election, November 6, 1984, Res. No. 6943CCS; November 3, 1998; amended at a Special
Election, April 24-25, 1999, Prop. No. 1; November 5, 2002, Measure FF; approved by the voters at the 11/2/2010 election; Measure RC, 11/8/22)
Any provision, whether oral or written, in or pertaining to
a rental housing agreement whereby any provision of this Article for
the benefit of the tenant is waived, shall be deemed to be against
public policy and shall be void.
(Adopted at General Municipal Election, April 10, 1979, Res. No. 5283CCS)
A landlord or tenant aggrieved by any action or decision of
the Board may seek judicial review by appealing to the appropriate
court within the jurisdiction.
(Adopted at General Municipal Election, April 10, 1979, Res. No. 5283CCS)
(a)
Any
landlord who demands, accepts, receives, or retains any payment of
rent in excess of the maximum lawful rent, in violation of the provisions
of this Article or any rule, regulation or order hereunder promulgated,
including the provisions ensuring compliance with habitability standards
and registration fee requirements, shall be liable in a civil action
to the tenant from whom such payments are demanded, accepted, received
or retained, for reasonable attorney’s fees and costs as determined
by the court, plus damages in the amount by which the payment or payments
demanded, accepted, received or retained exceeds the maximum lawful
rent. A civil penalty of treble the amount by which the payment or
payments demanded, accepted, received or retained exceeds the maximum
lawful rent shall be awarded against the landlord upon a showing that
the landlord has acted willfully or with oppression, fraud or malice.
No administrative remedy need be exhausted prior to filing suit pursuant
to this Subsection.
(b)
In lieu of filing a civil action, a tenant may file an administrative complaint. The Board shall establish by rule and regulation a hearing procedure similar to that set forth in Section 1805(d).
(1)
The rules and regulations adopted by the Board shall provide for
final Board action on any complaint for excess rent within one hundred
twenty (120) days following the date of filing of the complaint.
(2)
In any administrative hearing under this Section, a landlord who
demands, accepts, receives or retains any payment of rent in excess
of the maximum lawful rent shall be liable for damages in the amount
by which the payment or payments demanded, accepted, received or retained
exceeds the maximum lawful rent and may be liable for an additional
amount not to exceed five hundred dollars ($500.00), for costs, expenses
incurred in pursuing the hearing remedy, damages and penalties. The
tenant shall bear the burden of proving entitlement to the penalty.
The tenant may deduct the penalty and award of damages from future
rent payments in the manner provided by the Board. An order authorizing
rent withholding under this Article shall survive the sale or other
transfer of the property and shall be binding upon successors of the
landlord against whom the order was made. If a tenant authorized to
withhold rent under this Article vacates the property, the landlord
shall pay to such tenant a sum equal to the balance of the rent that
the tenant could have withheld.
(c)
If the tenant from whom such excessive payment is demanded, accepted, received or retained in violation of the foregoing provisions of this Article or any rule or regulation or order hereunder promulgated fails to bring a civil or administrative action as provided for in Section 1809(a) and 1809(b) within one hundred twenty (120) days from the date of occurrence of the violation, the Board may settle the claim arising out of the violation or bring such action. Thereafter, the tenant on whose behalf the Board acted is barred from also bringing an action against the landlord in regard to the same violation for which the Board has made a settlement or brought action. In the event the Board settles said claim, it shall be entitled to retain the costs it incurred in settlement thereof, and the tenant against whom the violation has been committed shall be entitled to the remainder.
(d)
The
appropriate court in the jurisdiction in which the controlled rental
unit affected is located shall have jurisdiction over all actions
brought under this Section.
(Adopted at General Municipal Election, November 6, 1984, Res. No. 6943CCS)
Any landlord violating this Article shall be guilty of a misdemeanor.
Any person convicted of a misdemeanor under the provisions of this
Article shall be punished by a fine of not more than five hundred
dollars ($500.00) or by imprisonment in the county jail for a period
not exceeding six (6) months, or by both such fine and imprisonment.
(Adopted at General Municipal Election, April 10, 1979, Res. No. 5283CCS)
The Board, and tenants and landlords of controlled units, may
seek relief from the appropriate court within the jurisdiction within
which the affected controlled rental unit is located to enforce any
provision of this Article or its implementing regulations or to restrain
or enjoin any violation of this Article and of the rules, regulations,
orders and decisions of the Board.
(Adopted at General Municipal Election, November 6, 1984, Res. No. 6943CCS)
If any provision of this Article or application thereof to any
person or circumstances is held invalid, this invalidity shall not
affect other provisions or applications of this Article which can
be given effect without the invalid provision or application, and
to this end the provisions of this Article are declared to be severable.
This Article shall be liberally construed to achieve the purposes
of this Article and to preserve its validity.
(Adopted at General Municipal Election, April 10, 1979, Res. No. 5283CCS)
Section 1803(t) of this Article shall not apply to any building for which approval has been received pursuant to Article XX (Tenant Ownership Rights Charter Amendments) of this Charter. All other provisions of this Article, however, shall continue to apply with full force and effect to each unit in any building receiving approval pursuant to Article XX.
Tenants residing in such units, whether or not “qualifying,” “participating,”
or any other such designation under Article XX, shall enjoy all the
rights and remedies provided by this Article without limitation as
to duration or to ownership of the unit. This Section is declarative
of existing law and does not impose any new requirements or limit
any existing ones.
(Adopted at General Municipal Election, November 6, 1984, Res. No. 6943CCS)
To the extent that the amendments to Article XVIII adopted at
the same time as this Section incorporate rules, regulations and practices
of the Rent Control Board existing on the date of the adoption hereof,
this amendment is declarative of existing law and does not impose
any new requirements or limit any existing ones.
(Adopted at General Municipal Election, November 6, 1984, Res. No. 6943CCS)
Single family homes that were not used for residential rental
purposes on July 1, 1984 are automatically exempt from the provisions
of this Article. Single family homes that are not exempt under the
preceding sentence are subject to all requirements of this Article,
but shall be permanently exempted by the Board upon proof that the
home has been continuously occupied by the owner for a period of two
(2) years as a principle place of residence after voluntary vacancy
by the tenant or lawful eviction of the tenant. An owner may have
only one exemption under this Section at any one time.
(Adopted at General Municipal Election, November 6, 1984, Res. No. 6943CCS)
This Article shall not apply to any property which is part of
the State Park System or sovereign tidelands and owned by the State
of California on July 1, 1990.
(Adopted at General Municipal Election, November 6, 1990, certified by Res. No. 8121CCS)
Tenants living in rental housing units have the right to quiet
enjoyment, privacy and freedom from harassment by the property owner.
In order to effectuate this right, the City Council shall at all times
maintain a Tenant Harassment Ordinance in force which protects tenants
from landlords’ conduct in derogation of tenants’ rights.
(Adopted at General Municipal Election, November 5, 2002, Measure FF)
