Anti-Displacement Policies Jim Cogan Housing and Economic Development Manager

Actions Before the Council Approve the Introduction of 12-month Lease Option Ordinance Provide Direction to Staff on Mandatory Non- binding Arbitration Ordinance Prioritize other Possible Actions to Address Displacement

Displacement Generally: Affects renters in a strong housing market Affects homeowners in a weak housing market Regional Bay Area problem Limited supply of housing Strong growth in job market High rents High home prices

Development Approaches to Address Displacement Zoning for new market rate housing Housing Element Update, Specific Plan and ConnecMenlo  Zoning for new affordable housing Housing Element Update, Specific Plan and ConnectMenlo  Inclusionary zoning on new for-sale residential development Citywide requirement  Below market rate housing impact fees Citywide requirement and impact fee update  Incentives for affordable housing Specific Plan and ConnectMenlo public benefit density bonus  BMR Funding for affordable housing 

Tenant Protection Policies Mandatory minimum residential lease terms Requires landlords to provide renters with the option long term leases Mandatory non-binding arbitration Requires landlords and renters to mediate disputes Rental relocation assistance Requires landlords to pay relocation benefits to renters Rent control Limits landlords’ ability to raise rents Just cause for eviction Requires landlords to provide justification for evictions

Proposed 12-Month Lease Ordinance Requires landlords to provide renters with the option of a 12-month lease Exemptions A single-family dwelling Secondary dwelling units Rooms or accommodations in hotels and boardinghouses Dwelling units in a condominium, community apartment or planned unit development Hospital, skilled nursing, health or care facility, extended-care facility Housing units shared by landlord and tenant Units subleased to a patient or patient’s family by a medical institution Units controlled or whose rents are subsidized by a government agency Dwelling units acquired by the city or any other governmental agency intended to be used for public purposes.

Mandatory Non-binding arbitration Direction from Council: What types of disputes are covered by the Ordinance? Rental increase, evictions, maintenance issues, etc. Who mediates the disputes? City staff or a 3rd party Who do the parties contact to administer the Ordinance? What penalties are there for failure to comply with the Ordinance? fines, nullification of rent increases, etc. Should the Ordinance contain a sunset provision?

Prioritization of Housing Measures Table 2: Housing Measures Policy Benefit Resources Needed Estimated Time to Completion Unit Type Mandatory 12-month Lease Option Allows renters the option to avoid month to month rent increases It is likely that there will be an impact on staff resources Second Reading of Ordinance Multi-family units of 2 or more with exemptions Mandatory Non-binding Mediation Provides renters and landlords the opportunity to address disputes prior to displacement Contract Mediation Services and additional Staffing for administration and enforcement 2 months All Rental Relocation Assistance Renters are provided with assistance in seeking housing and it creates a financial disincentive to landlords from displacing residents Additional Staffing for administration and enforcement 3-6 months Amend BMR Guideline List Eligibility to Allow Displaced Residents to Remain on the List This action would allow displaced residents to maintain their position on the City’s BMR list for up to 3 years This action can likely be addressed within current resources All BMR Units Displacement Fund Provides assistance to residents facing displacement Linkage Fee Nexus Study 12 months Any  Rent Control Limits the amount rent can be increased 12-18 months  Multi-family units Just Cause for Eviction Requires landlords to justify eviction actions

Discussion and Direction Approve the Introduction of 12-month Lease Option Ordinance Provide Direction to Staff on Mandatory Non-binding Arbitration Ordinance Prioritize other Possible Actions to Address Displacement