Title
Staff Report for a Resolution Approving the Annual Rent Review Program Evaluation for July 2013 - June 2014
Staffreport
SUMMARY AND RECOMMENDATIONS
The Rent Review Program is a useful resource for both landlords and tenants who seek information, facilitation, and compromise on proposed rent increases. The program is utilized by the community to provide a rent dispute forum for tenants and landlords and is applicable to multi-family residential properties of three (3) units or more as well as mobile homes if a tenant rents the mobile housing unit.
Staff recommends that the City Council review and approve the Annual Rent Review Program Evaluation for July 2013 through June 2014.
BACKGROUND
Title IV, Chapter 32, Article 5, section 4-32-500 of the City's Municipal Code requires that an annual review of the Rent Review Program be prepared by the Rent Review Board (Board) for the City Council. Since May 2001, the Rent Review Program has been an integral part of the City's comprehensive housing services. The Rent Review Program has proven to serve as a helpful resource for landlords and tenants that seek information and resolution regarding lawful and reasonable rent increases.
The Board consists of five (5) City Council-appointed positions. The Board composition includes: two (2) tenants, one (1) resident landlord, one (1) non-resident landlord, and one (1) homeowner representative. The resident landlord position was vacated in May 2013 and remains unfilled despite outreach efforts this past year to fill it.
ECHO Housing is a full service and nonprofit housing counseling organization that provides fair housing and tenant-landlord counseling services for the City. In FY 2013-14, due to the elimination of redevelopment agencies which necessitated staff reductions, the City outsourced the Rent Review Program's administration to ECHO Housing. ECHO Housing staff was instrumental in processing the renters' rent review request applications, communicating with the landlords to obtain their rent review response forms, facilitating the Rent Review Board hearings, and educating both tenants and landlords about the City's Rent Review Ordinance. The City has contracted with ECHO Housing to administer the Rent Review Program through fiscal year 2014-2015 as part of the current two-year budget.
Summary of Facts
From July 2013 through June 2014, there were 37 tenant and 34 landlord inquiries for a total of 71 inquiries addressed by staff and ECHO Housing. See attached Landlord and Tenant Inquiries logs.
Two cases were heard by the Rent Review Board this year. The Board upheld the rent increase in one case, while the other case was mutually resolved prior to a scheduled Continuance Hearing.
A summary of the remaining cases follows:
· One case was dismissed due to legal matters in Civil Court.
· Three cases involved the landlords agreeing to properly re-notice their respective tenants.
· Seven cases involved the landlords agreeing to reduce the rent increase amount to close and resolve the cases rather than move forward with a rent review hearing.
· One case was mutually resolved prior to the scheduled hearing taking place.
Assessing the Effectiveness of the Rent Review Program
As part of the Rent Review Program Ordinance, the Board must assess the program's effectiveness each year. The current members of the Rent Review Board recommended evaluation of the City's Rent Review Board Ordinance specifically in regards to:
1) Including Ratio Utility Billing System (RUBS) charges as a form of a rent increase. RUBS are a recent trend whereby landlords subcontract out utility charges to a third party. When this occurs, utilities are no longer in one's rental charge, and a fee for utilities must be paid to a third party. Because the utility payment is no longer required to be paid by the tenant to the landlord, it is ineligible for consideration as a part of a rent increase.
City staff recommends the issue above be addressed under the current update to the City's Housing Element.
Previous Actions
The Rent Review Ordinance was adopted April 2001. The Municipal Code was amended in March 2002, October 2003, and July 2005.
Board/Commission Review and Actions
On July 29, 2014, the Rent Review Board unanimously approved the Annual Rent Review Program Evaluation and instructed City staff to forward the evaluation to City Council for review and approval.
ATTACHMENT
· Rent Review Program Evaluation for July 2013 - June 2014
PREPARED BY: Steve Hernandez, Housing Specialist II, Community Development Department