Title
Second Reading to Adopt Ordinance No. 2026-007 Amending San Leandro Municipal Code Section 4-46-175(C) to Prohibit the Pass-Through of the Rent Stabilization Program Fee to Tenants
Staffreport
COUNCIL PRIORITY
* Housing and Homelessness
SUMMARY
Ordinance No. 2026-007 was introduced at the June 1, 2026 City Council meeting by a 7-0 vote and is presented tonight for second reading and adoption. The Ordinance amends San Leandro Municipal Code (SLMC) Section 4-46-175(C) to prohibit the pass-through of the Rent Stabilization Program Fee to tenants.
RECOMMENDATIONS
Staff recommend that the City Council hold the second reading and adopt Ordinance No. 2026-007 amending the Municipal Code as shown in Attachment A.
BACKGROUND
On February 2, 2026, the City Council adopted Ordinance No. 2026-001, adding Chapter 4-46, "Residential Rent Stabilization," to the SLMC, with program requirements becoming effective January 1, 2027.
Section 4-46-175(C) of the Rent Stabilization Ordinance provides that up to fifty percent of the Rent Stabilization Program Fee may be passed through to tenants, to be paid in two equal installments six months apart, and that such amounts may not be included in the calculation of the Maximum Allowable Rent.
On April 20, 2026, the City Council directed staff to return with an Ordinance amendment to SLMC Section 4-46-175(C) to eliminate the option for property owners to pass through fifty percent of the Rent Stabilization Program Fee to tenants.
Analysis
Ordinance No. 2026-007 amends SLMC Section 4-46-175(C) to eliminate the option for property owners to pass through fifty percent of the Rent Stabilization Program Fee to tenants. The amended section would require property owners to pay the full cost of the Rent Stabilization fee.
The Ordinance would be effective August 5, 2026, 30 days following adoption. Because the first Rent Stabilization fee payment is due January 31, 2027, the amended section will be in effect before any fees are coll...
Click here for full text