Title
Proposed Rent Stabilization Program Budget and Draft Residential Rent Stabilization Ordinance Presentation
Staffreport
COUNCIL PRIORITY
• Housing and Homelessness
SUMMARY
Lack of affordable rental housing, lack of new rental housing construction, and displacement of tenants leading to homelessness or at-risk homelessness are key factors that high-cost regions like the San Francisco Bay Area, and cities and counties within them such as San Leandro, continue to face. Enhancing housing protections for tenants has been a City Council priority since 2023. In April 2025, City Council adopted a Rental Registry Ordinance to help track long term rental housing data in San Leandro and for present and future City Councils to make more informed decisions on housing protections. In early 2025, City Council also made exploration of a residential rent stabilization ordinance a top priority under its Council Housing/Homeless Priority Work Plan for FY 2026.
At the October 13 Work Session, the City Council initially reviewed the draft Residential Rent Stabilization Ordinance and preliminary cost options to implement the draft Ordinance and the Rent Registry Ordinance (Rental Housing Protection Program), and provided the following direction on the draft Ordinance:
1. Maximum allowable annual rent increase: 65% of CPI, with a cap of 3% - 3.75%
2. No capital improvements pass through process; property owners may use fair return petition process
3. No banking
4. No exemptions for smaller rental properties
5. Maintain exemption for “Golden Duplexes”
RECOMMENDATIONS
Receive staff presentation, Attachment C, and provide direction.
BACKGROUND AND ANALYSIS
See Attachment C for tonight’s Power Point presentation.
Previous Actions
• February 2023: City Council included housing protections under Housing/Homeless Priority
• July 2023: City Council requested an assessment of housing protections not currently in San Leandro (stricter rent control, just cause & tenant anti-harassment, plus rental registry), existing housing protection programs & cost impacts to the City; directed the matter to the City Council Rules Committee
• February 1, 2025: City Council affirmed housing protections prioritization under Housing/Homeless Priority at its annual planning session
• March-April 2025: City Council adopted Rental Registry Ordinance
• March 17, 2025: City Council directed staff to proceed with exploring a rent stabilization ordinance as top priority from other renter housing protections and adopted Rental Registry Ordinance (first reading)
• October 13, 2025: City Council reviewed and provided guidance on the Draft Residential Rent Stabilization Ordinance and reviewed the preliminary cost options to implement a Rental Housing Protection Program (Rent Registry Ordinance and draft Residential Rent Stabilization Ordinance).
Committee Review and Actions
• January 2025 - City Council Rules Committee approved draft Rental Registry Ordinance to forward to City Council and reviewed other housing protection priorities including rent stabilization
• March 2025 - Staff presented rent stabilization and costs impact policy considerations to City Council Rules Committee
• May 2025 - Staff presented rent cap and capital improvement pass through considerations for City Council Rules Committee direction and a proposed rent stabilization ordinance timeline
• July 2025 - City Council Rules Committee reviewed preliminary draft Rent Stabilization Ordinance and opened a 60-day public comment period from July 17 through September 17.
Applicable General Plan Policies
Under Section 6.2 (Goals and Policies) in Chapter 6 of the 2023-2031 Housing Element, the following goals/policies apply:
Goal 4: Protect Residents from Displacement
o P.4.1 Minimize Displacement of Vulnerable Residents. The City shall make all neighborhoods places of opportunity while minimizing the involuntary displacement of vulnerable populations, such as low-income households, seniors on fixed incomes, and people with disabilities, due to increased housing costs.
o P.4.2 Strengthen Tenant Protections. The City shall explore options to strengthen measures for eviction prevention, limits on sudden or annual rent increases, and tenant relocation assistance
Summary of Public Outreach Efforts
Comprehensive public outreach and engagement to key stakeholders occurred in late August/September 2025 during the 60-day public comment period (July 17 - September 17) for the preliminary draft Rent Stabilization Ordinance. See Attachment B for more detailed summaries of the public outreach/engagement.
Financial Impacts
Under review tonight. See cost options in tonight’s PowerPoint, Attachment C.
ATTACHMENTS
A: Draft Residential Rent Stabilization Ordinance (redlined)
B: October 13 City Council Work Session PowerPoint: Draft Residential Rent Stabilization Ordinance and Preliminary Cost Options - For Reference
C: December 15 City Council PowerPoint: Proposed Rent Stabilization Program Budget and Draft Residential Rent Stabilization Ordinance Presentation
PREPARED BY: Tom Liao, Director, Community Development Department