Just Cause Eviction & Exorbitant Rent Increase Ordinances In the City of Santa Cruz

Background California Housing Crisis Santa Cruz median rent for 1 bedroom - $1,900/month Increasing homelessness on the West Coast Stalled development - Student Housing West, 190 W Cliff, Pacific Front Prop 10/ Measure M Both failed, (Prop 10 - 56% Against, Measure M - 61% Against) 2018 Rent Freeze ended in December - replaced by Exorbitant Rent Increase Ordinance Last Tuesday the new City Council passed a temporary Just Cause Eviction Ordinance, 4 - 3.

Exorbitant Rent Increase Ordinance “Large rent increase”: shall mean a rent increase of more than: five percent (5%) in one year or cumulatively more than seven percent (7%) in any two consecutive years For a maximum five-percent increase (5%) in one year followed by a one-and nine- tenths-percent increase (1.9%) in the following year). Exorbitant Rent Increase Ordinance This is passed and is ‘permanent’

Regulations and Exemptions If a landlord removes a tenant for reason of a rent increase, or for any reason beyond a breach of lease, the property owner shall owe that tenant relocation fees - or 2 months market rate rent or current rent, whichever is higher. End of lease does not qualify as a reason to remove a tenant. Failure to compensate these fee is a punishable offense of up to $2,500/day until assistance is paid. A tenant has 60 days to request relocation assistance, otherwise it is considered they accepted the increase. If the property is deemed to be unsafe or if the tenant is given less than 30 days notice the tenant is entitled to 3 months relocation fees. Unless it can be proven that the tenant was the generator of the damage. If it for reason of the unit being unsafe the tenant is also entitled to first right of refusal. The property owner must reach out two times (in writing), in a two week period - if the tenant does not reply their right of refusal is therefore forfeit.

Interim Just Cause Eviction Ordinance Created to: replace the rent freeze Tenants facing eviction for ‘publicly supporting Measure M” Facilitate further community dialogue “Landlords must have a just cause for terminating a lease, not just cause.” In Short: You can raise your rent as much as you like, but it will cost you. Interim Just Cause Eviction Ordinance Interim Ordinance -one year-

Exemptions Ordinance shall automatically terminate one year from the effective date or upon the Council’s action on an ordinance created by a TBD task force. Landlords that live on site e.g. ADUs, duplexes, ect. are exempt from JCE. If a landlord occupied the residence in the previous year and wishes to remove a tenant within a year of that tenant residing there they can do so- but, will be subject to providing relocation assistance.

Subtenants New to this discussion... “The landlord has unreasonably withheld the right to sublease following written request by the tenant and submission of an application by the proposed sublessee. 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.” Decision cannot be based on: Creditworthiness Ability to pay all or a portion of rent Subtenants New to this discussion...

To Consider: Protecting landlord rate of return, while creating incentive to keep rents below market rate. Define ‘nuisance complaint’ Specify terms of no cause eviction and identify possible exemptions. Enforcement and dispute resolution strategies Costs to put leases and rental agreements online Compare and contrast between cities with Just Cause Eviction Data associated with rent increases over the past five years Comprised of City of Santa Cruz residents Seek areas of full consensus Include data from UCSC Housing Office Task Force Group of 9 to 11 Santa Cruz residents with representation of landlords, students, and renters. Purpose: To identify strategies to protect residents from displacement due to large rent increases and arbitrary evictions, as well as make recommendations for Council action.

Next Steps/Questions?