(a) 
Buyout Agreement. An agreement where a landlord pays a tenant money or other consideration to vacate a rental housing unit. An agreement to settle a pending unlawful detainer action shall not be a "buyout agreement."
(b) 
Buyout Offer. An offer by a landlord to pay a tenant money or other consideration to vacate a rental housing unit. An offer to settle a pending unlawful detainer action shall not be a "buyout offer."
(c) 
Minimum Buyout Amount. An amount not less than the permanent relocation fee required by Section 4.36.040.
(Added by Ord. No. 2478CCS § 4, adopted 1/13/15; amended by Ord. No. 2776CCS, 2/13/24)
(a) 
Applicability of Section. This Section shall apply to every rental housing unit in the City that is a controlled rental unit pursuant to City Charter Section 1800 et seq. (including a room in a single-family home, hotel or motel, rooming house or apartment, single-family home, mobile home or mobile home space, trailer or trailer space), and to every rental housing unit in the City that is a non-rent-controlled rental unit pursuant to City Charter Section 2300 et seq.
(b) 
Disclosure Prior to Buyout Offers. Prior to making a buyout offer, the landlord shall provide each tenant in that rental unit a written disclosure, on a form developed and authorized by the Rent Board for controlled rental units and by the Housing Office for non-rent-controlled rental units, that shall include the following:
(1) 
A statement that the tenant has a right not to enter into a buyout agreement;
(2) 
A statement that the tenant may choose to consult with an attorney before entering into a buyout agreement;
(3) 
A statement that the tenant may rescind the buyout agreement for up to thirty days after it is fully executed;
(4) 
A statement that the tenant may visit the Rent Board for rent controlled rental units for information about other buyout agreements in the tenant's neighborhood and other relevant information;
(5) 
Any other information required by the Rent Board for rent controlled rental units or the Housing Office for non-rent-controlled rental units consistent with the purposes and provisions of this Section;
(6) 
A space for each tenant to sign and write the date the landlord provided the tenant with the disclosure;
(7) 
A statement that offering payments to a tenant to vacate within six months after the tenant has notified the landlord in writing that the tenant does not wish to enter into a buyout agreement or buyout negotiations may constitute bad faith harassment of the tenant under Section 4.56.020(f) of this Code;
(8) 
A statement that the tenant is entitled to at least the minimum buyout amount and how much the minimum buyout amount is.
The landlord shall retain a copy of each signed disclosure form for five years, along with a record of the date the landlord provided the disclosure to each tenant.
(c) 
Requirements for Buyout Agreements. Every buyout agreement shall:
(1) 
Be in Writing. The landlord shall give each tenant a copy of the buyout agreement at the time the tenant executes it.
(2) 
Include the following statements in bold letters in at least fourteen-point type in close proximity to the space reserved for the signature of the tenant(s):
(A) 
"You may cancel this agreement in writing at any time before the thirtieth day after all parties have signed this agreement."
(B) 
"You have a right not to enter into a buyout agreement."
(C) 
"You may choose to consult with an attorney or the Rent Control Board for rent controlled units before signing this agreement. The Rent Control Board may have information about other buyout agreements in your neighborhood."
(3) 
Be for at least the minimum buyout amount.
A buyout agreement that does not satisfy all the requirements of this subsection shall not be effective and may be rescinded by the tenant at any time.
(d) 
Rescission of Buyout Agreements. A tenant shall have the right to rescind a buyout agreement for up to thirty days after its execution by all parties. In order to rescind a buyout agreement, the tenant must hand-deliver, email, or place in the U.S. mail a statement to the landlord indicating that the tenant has rescinded the buyout agreement.
(e) 
Filing of Buyout Agreements. The landlord shall file a copy of the buyout agreement no sooner than the thirty-first day after the buyout agreement is executed by all parties, and no later than sixty days after the agreement is executed by all parties. Buyout agreements for rent controlled units shall be filed with the Rent Control Board unless the Board opts not to adopt regulations implementing this Section, in which case buyout agreements shall be filed with the City Clerk. Buyout agreements for non-rent-controlled units shall be filed with the City Clerk. This filing requirement does not apply to buyout agreements rescinded under subsection (d). Failure to comply with the requirement of this subsection may be asserted as an affirmative defense in an action brought by the landlord to recover possession of the unit.
(Added by Ord. No. 2478CCS, § 4, adopted 1/13/15; amended by Ord. No. 2776CCS, 2/13/24)
(a) 
Criminal Penalty. Any person who is convicted of violating this Chapter shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not greater than one thousand dollars or by imprisonment in the County Jail for not more than six months, or by both such fine and imprisonment.
(b) 
Civil Action. Any person, including the City, may enforce the provisions of this Chapter by means of a civil action. The burden of proof in such cases shall be preponderance of the evidence. A violation of this Chapter may be asserted as an affirmative defense in an unlawful detainer action.
(c) 
Penalties and Other Monetary Awards. Any person who violates or aids or incites another person to violate the provisions of this Chapter is liable for each and every such offense for the actual damages suffered by an aggrieved party or for statutory damages in the sum of between one thousand dollars and twenty thousand dollars, whichever is greater, and shall be liable for such attorneys' fees and costs as may be determined by the court in addition thereto. Any violator shall be liable for an additional civil penalty of up to five thousand dollars for each offense committed against a person who is disabled or aged sixty-five or over. The court may also award punitive damages to any plaintiff, including the City, in a proper case as defined by Civil Code Section 3294. The burden of proof for purposes of punitive damages shall be clear and convincing evidence.
(d) 
Nonexclusive Remedies and Penalties. The remedies provided in this Chapter are not exclusive, and nothing in this Chapter shall preclude any person from seeking any other remedies, penalties or procedures provided by law.
(Added by Ord. No. 2776CCS, 2/13/24)