1. Anti-Displacement Policies
Jim Cogan Housing and Economic Development Manager

2. 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

3. 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

4. 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 

5. 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

6. 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.

7. 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?

8. 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

9. 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